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THE 


BANKEES'  MAGAZINE, 


JOUBNAL  OF  THE  MONEY  MARKET, 


^amxmdul   Mm$t 


VOL.  XXV. 
JANUARY  TO  DECEMBER 
1865. 


LONDON: 
GROOMBBIDGE   AND  SONS,   S,   PATEBNOSJEB  BOW, 


ABD  AU.  BOOmCLLEBB. 


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zed  by  Google 


WATXBLOW  Jl3ID  BOKB.  PRIXTKIW, 
LOHDOK  WALL. 


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ized  by  Google 


INDEX. 


GisisrEiiAr.  BAi^iNa  articles  aj^d  statistics. 


Administration  of  Bankraptcy,  1245. 

Albion  Bank,  538. 

AlUance     and     ConsoBdated     Banki, 

Amalgamation  of  the,  534. 
Alliance  Financial  ComfMinj,  250. 
Amalgunation  of  the  Alliance  and  Con- 
)    eoUdated  Banks,  534. 
American    Dnr     Goods    Trade,    The, 

throtighoattheWar,  1249. 
American  Finance,  Historic  outlines  of, 

5.  Ill,  277,  441,  557,  693.  804. 
Amerijan  Grain  Trade,  thronghoat  the 

War,  1S36. 
American  War,  Commercial  influences 

of  the,  1177. 
American  Defalcations,  1158. 
Atlantic  and  Great  Western  Bailwaj, 

867. 
Atfwoods,  SpooncT,  &  Co.,  Suspension 

of  Bank  at  Birmingham,  454,  579. 
Bank  Amalgamations,  120,  418,  529, 

1388. 
Bank  Amalgamation  at  Birmingham, 

675. 
Bank  Checks  on  Bank  Clerks,  1333. 
B«r.k  of  England,  657. 
Bank  of  England,  The,  As  itis,  and  as 

it  oogfat  to  be,  572. 
Bank  r»f   England   Eetnms,    in    each 

Knmber. 
Bank  of  France,  The,  in  each  Number. 
Bank   of    Ireland    Retoms,    in    each 

Number. 
Bank  Morements,  in  each  Number. 
Bank  Note  Issue  BiB,  The,  294.  412, 

706,  727,  802. 
Bank  Rate  of  Ih'iicoant,  Reduction  in, 

534,  885,  1385. 
Bank  of  Scotland     Returns,   in  each 

Nnmber. 
Bank  of  Tmier,  1386. 


Bankers'  Goarantee  and  Trust  Fund. 

566. 
Banking  and    Commercial   Permanent 

Benefit  Building  S<xiicty.  883. 
Banking,  The  Facilities  of,  1047. 
Banking  Obituary,  in  each  Number. 
Banking  and  Financial  Anecdotes,  77, 

123,  289,  449,   575,  711,  814.  919. 

1057.1185.1255,  1341. 
I  Banking  Profits  in  London,  The  Fluc- 
tuation of,  1064. 
Banks  and  Banking  Laws  of  Germany, 

The  proposed  lloforms  in,  715. 
Bankruptcy,  Administration  of,  1245. 
Bamed,  Moxley  and  Co.,  Messrs.,   of 

Liverpool,  533,  886. 
Barney.  Tho8.,  Esq.,  Dinner  to,  655. 
Blind  Trading,  The  Theory  of,  437. 
Bombay  Chamber  of  Commerce,  1381. 
Brazilian  Loan,  The  New,  1191. 
Budget,  The,  for  1865-66,  556. 
Business  Failures,  The  Philosophy  of,  105 
Business   Success,  The  Philosophy  of, 

273. 
By  the  Bank,  15. 
Canterbnry  Savings  Bank,  Stoppage  of 

the,  1016. 
Capo  of  Good  Hope  Debentures,  886. 
Cape  of  Good  Hope  Loan,  253. 
Chkngcs  in    Banking   and  Mercantile 

Firms.  258. 
City  Brokers,  The,  90. 
Clearing  Bankers'  Committee,  The,  1260. 
Clearing  System,  The,  1182. 
Cr^it  1  oncier  and  Mobilier  of  England, 

1S87. 
Credit  Foncier  and  Mobilier,  Issue  of 

New  Shares,  1312. 
Commerce  of  India,  1071. 
Correspondents,    Notices    to,   in   each 

Number. 


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ized  by  Google 


IV 


INDEX. 


CoimtTy  Banks  Issne  Bill,  535. 
CurrencT  System,  The,  568. 
Danish  five  Per  Cent.  Debentares,  83. 
Drummond,  Mr.  A.,  Death  of,  884. 
East  of  England  Bank,  537. 
Erie  Railway  Bonds,  New  Issne  of,  1222. 
Exchanges,  The,  in  each  Nnmber, 
Eztraordinaiy  American  Defalcations, 

1158. 
Failure  of  the  Penny  Bank  at  Birming- 
ham, 741. 
Finance,  The  future  Prospects  of,  1226. 
Fluctuations  in  Stocks  and  Shares,   in 

each  Number. 
French  Budget.  The,  266. 
Foreign  Exchanges  and  Seven  per  Cent., 

On  the  Theory  of  the,  702. 
Forgery  by  the  Directors  of  a  Finance 

Corporation  in  India,  1344. 
Funds,  Price  of  the,  in  each  Number. 
Glasgow  Chamber  of  Commerce  and  the 

Bank  Act,  248. 
Grain  Trade,  The,  in  each  Nnmber, 
Half- Yearly  Meetings,  The,  108. 
Historic  Outlines  of  American  Finance, 

5,  111,  277,  441,  557,  693,  804. 
Imperial  Ottoman  Loan,  The,  781. 
India,  The  Commerce  of,  1071. 
Indian  Banking  Practice,  1072. 
Indian  Budget,  Review  of  the,  914. 
Indian  Currency,  19. 
Inland  Revenue,  The,  1231. 
Insurance  Corporation  of  Great  Britain, 

1018. 
Italian  Loan,  The  New,  413. 
Joint-Stock  Bank  Shares,  Fluctuations 

in,  1378. 
Joint-Stock  Bank  Shares,  Prices  of,  in 

each  Number, 
Lloyd*s  Banking  Company,  1151. 
London  and  Australian  Agency  Com- 
pany, 1222. 
London  and  Brazilian  Bank,  88,  659. 
London  and  Mediterranean  Bank,  658. 
London  and  Middlesex  Bank,  413,  1388. 
London  and  Scottish  Bank,  661. 
Lubbock,  Sir  J.  W.,  Death  of,  879, 
Mercantile  Suspensions,  in  each  Nnmber. 
Mexican  Loan,  The  New,  661. 
Millwall    Freehold  Land    and    Docks 

Company,  533. 
Money  Market,  Course  of  the,  689. 
Money  Market,  The  Prospects  of,  1067. 
Money  Market,  The  Present  and  the 

Future  of  the,  1317. 
Money  Market,  Review  of  the,  in  each 

Number, 


Money  and  Produce,  558. 
Monte  Video  European  Loan,  83. 
Monthly  Chronology,  in  each  Number. 

New  Joint-Stock  Bank  at  Birmingham, 

533. 
New  Zealand  Loan  and  Agency  Com- 
pany, 658. 
Notices    to   Correspondents,    in   each 

Number, 
Operations  of  the  Clearing  House,  1045. 
Ottoman  Bank,  Liquidation  of,  659. 
Ottoman  Debt,  Conversion  of  the,  1386. 
Oferend,  Gumey  and  Co.,  905,  1018. 
Partnership,  New  Law  of,  909,  1017, 

1173. 
Peruvian  Loan,  The  New,  453. 
Philosophy  of  Business  Failures,  105. 
Post-dated  Cheques,  are  they  worth- 
less or  valid,  878. 
Probable  Reduction  in    the   Rate   of 

Discount,  417. 
Railway  Shares,  in  each  Number. 
Recently  Deceased  Banks,  On,  1051. 
Reviews,  80,  782,  1019,  1152,  257. 
Rio  de  Janeiro  Gas  Company,  The,  415. 
Robbery  at  the  Bank  of  London,  1265. 
Standard  Bank  of  British  South  Africa, 

1151. 
State  of  Trade,  in  each  Nnmber. 
Stock  Exchange  Administration,  1041. 
Stock   Jobbing,  American   View    of, 

1068. 
South  Hants  Banking  Company,  Failure 

of  the,  587. 
Suspension  of  Messrs.  Attwoods,Spooner 

and  Co.,  at  Birmingham,  454,  579. 
Swiss  Law  with  regard  to  Bills  of  Ex* 

change,  884. 
Tenders  for    Bills  on   India,  in  each 

Number. 
Termination  of  the  year  1864,  1. 
Thornton,  Mr.  Richard,  Death  of,  884. 
**  Times,"    The,    and     the    Currency 

Question,  1263. 
Trade  of  the  United  Kingdom,  in  each 

Number. 
Trade,  State  of,  in  each  Number. 
Turkish  Debt,  Conversion  of  the,  1151. 
Turkish  Finance,  675. 
United  Dannbian  Principalities  Loan, 

82. 
Unity  Bank  Frauds,  The,  590. 
Unity  Bank  Investigation,  The,  251. 
Unity  Joint   Stock    Mutual    Banking 

Association,  250. 
Varna  Railway,  The,  416. 


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INDEX. 


Western  Bank  of  Scothmd,  537,  1016. 
West  Xjcmdon  I>ocks    and  Warehotue 

Dmipaoy,  416. 
WHL  oC  the  late  Mr.  Kd.  Thomtoii,  923. 


Withdrawal  of  the  Bank  of  J  Israe  BilL 
801,  883.  **  ^ 

Tear  1864,  Termination  of  the,  1. 


REPORTS  OF  JOINT  STOCK  BANKS. 


AdelphiBank,  463,  1119. 

Agra  and  Maaterman's  Bank,  501. 

Alliance  Bank,  208,  979. 

Alhanee  Bank  of  Bombay,  1217. 

A]igk>- Austrian  Bank,  742. 

Anglo-Egyptian     Bank,      537,     611, 
994,  1375. 

Anglo-Italian  Bank,  244,  307. 

Asia&  Bcuiking  Corporation,  660,  747. 

Aostialian  Joint  Stock  Bank,  609. 

Aostialian  Mortgage,   Land,  and  Fi- 
nance Company,  523. 

Bank  of  Aoatralasia,  506,  1 194. 

Bank  of  Bolton,  1360. 

Bank  of  Bombay,  1198. 

Bank  of  British  North  America,  846. 

Bank  of  Britiah  Colombia,  419,  1268. 

Bank  of  Britiah  North  America,  51. 

Bank  of  Egypt,  348,  1015,  1080. 

Bank  of  England,  462,  657,  1206. 

Bank  of  Hindnstan,  China  and  Japan. 
753.  *^ 

Bank  of  London,  183,  984. 

Bank  of  New  South  Wales,  182,  937. 

Bank  of  New  Zealand,  939. 

Bank  of  Otago.  997. 

Bank    of  Qaeensland,    520,  621,  771, 
1279. 

Bank  of  Victoria,  780. 

Bank  of  Wales,  351. 

Biiston  District  Banldng  Company,  472. 

Birmingham  Banking  Company,  396, 
473, 

Kimingfaam  Joint  Stock   Bank.  511. 
1138. 

Btnaineham  Town  and  District  Bank- 
ing Company,  1109. 

Bombay  Brokers'  Loan  Discount  and 
Banking  Company,  1192. 

Bombay  City  Bank.  1215. 

Bombay  Presidency  Bank,  J 195. 

Bcaziliaa  and  Portuguese  Bank,  842. 

British  and  California  Bank,  535,  614. 

British  Guiana  Bank,  470,  1211. 

British  Linen  Company  Bank,  856. 

Caledonian  Banking  Company,  1138. 

GaHisle  City  and  District  Bank,  395, 
1098. 


Chartered  Bank  of  India,  Australia  and 
China,  628,  779,  1277. 

Chartered  Mercantile  Bank  of  India, 
London  and  China,  767. 

City  Bank,  159,  960. 

Clydesdale  Banking  Company,  995. 

Colonial  Bank,  137,  943. 

Commercial  Bank  Corporation  of  Eng- 
land and  the  East,  660,  731. 

Commercial  Bank  of  London,  1140. 

Consolidated  Bank,  225. 

Consolidated  Discount  Company,  188, 
973. 

Continental  r^Bank  Corporation,  ''410. 
478.  1090.  »  .-       » 

Contract'Corporation,  401. 
Credit  Foncier  and  Mobilier  of  EnirUind. 
639,  1296.  *        ' 

Credit  Foncier  of  Mauritius,  388. 
Cumberland  Union  Banking";Company, 

Deyon  and  Cornwall  Banking  Com- 
pany, 476 

Discount  Corporation,  622,  1307. 

Eastof  EngUind  Bank,  409. 

East  India  Bank,  1213. 

East  India  Financial  Association.  70. 
735.  * 

East  London  Bank,  228,  1010. 

Eastern  Exchange  Bank,  247,  338 
1107.  * 

Eastern  Financial  Association  of  India. 
1219.  ^ 

English  and*  Foreign  Credit' Company, 
368,  948.  *  ^ 

English  Joint  Stock*Bank,  1103. 

English  Scottish  and  Australian  Char- 
tered Bank,  994,  1105. 

English  and  Swedish  Bank,   517,  1140. 

EsiatiB  Bank,  493,  1125. 

European  and  American  Finance  Cor- 
poratiou,  329. 

European  and 'American  FinanceXor- 
poration,  613. 

European  Assurance  Society,  866. 

European  Bank,  495,  1090. 

Fmandal  Association  of  India  and 
China,  742, 1373. 


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ized  by  Google 


VI 


INDEX. 


Financial  Corporation,  202.  625. 
French  Credit  Mobilier  Company,  777. 
General  Credit  Company,  1085. 
/  General  Credit  and  Finance  Company 

of  London,  353. 
General  Financial  Corporation  of  India, 

1220. 
->  Hampshire  Banking  Company,  1098. 
Hibernian  Bank,  46. 
Imperial  Bank,  177,  954. 
Imperial  Mercantile  Credit  Association, 

204,  964, 
Imperial  Ottoman  Bank,  862. 1366. 
International  Financial  Company,  192, 
lonion  Bank,  759. 

/Joint  Stock  Discount  Company,  246, 
^     322,  1094. 
Land  Mor^ge  Bank  of  India,  648. 
Leeds  Banking  Company,  74, 
Leicestershire  Banking  Company,  406. 
Liverpool  Banks,  The,  41 1. 
.Liverpool  Financial  Association,  382. 
^  Liverpool  Union  Bank,  334. 
London  Bank  of  Mexico  and   Sonth 

America.  393,512,  1208. 
London  Bank  of  Scotland,  749 
"'v'London  Birmingham,  and  Sonth  Staf- 
^      ferdshire  Bank,  488. 

London  and  Bombay  Bank  and  General 

Financial  and  Insurance  Agency  Cor- 
poration, 950. 
London  and  Brazilian  Bank,  145,  761, 

849,  1273,  1365. 
London,  Buenos  Ayres  and  River  Plate 

Bank,  65.  853. 
Ix)ndon  Chartered  Bank  of  Australia, 

55,  843. 
London  and  Colonial  Bank,  941,  1137. 
Ix)ndon  and  County  Banking  Company, 

344,  1086. 
London  Financial  Association,  198,  957. 
London,    Hamburg    and    Continental 

Exchange  Bank,  326. 
London  Joint  Stock  Bank,    180,  860, 

997. 
London  and  Mediterranean  Bank,  1134, 

1275.  1365. 
London  Mercantile  Discount  Company, 

370, 1310. 
London  and  Northern  Bank,  58. 
London  and  South  African  Bank,  43, 

745,  1360. 
London  and  South  Western  Bank,  313, 

1082. 
London  and  Venezuela  Bank,  1370. 
London  and  Westminster,  1 70,  968. 
Madrid  Bank,  58,  175,510. 


Mauritius  Land  Credit  Company,  39, 

1283. 
Mercantile  and  Exchange  Bank,  372, 

nil. 

Merchant  Banking  Company  of  London, 

498,  1204. 
Metropolitan  and  Provincial  Bank,  152, 

988. 
Midland  Banking  Company,  237,  1014, 

1077. 
Natal  Bank,  652. 
National  Bank,  The,  317,  1125. 
National  Bank  of  Australasia,  243. 
National  Bank  of  India,  653. 
National  Bank  of  Liverpool,  221,  1134. 
National  Discount  Company,  164,  1004. 
National  Financial  Company,  40, 617. 
National  Provincial  Bank  of  England, 

751,850. 
New  Zealand  Banking  Corporation,  48, 

848. 
North  and  South  Wales  Bank,  1000.  • 
Nottinghamshire    Banking    Company, 

1150. 
Oriental  Bank  Corporation, 631,  1282. 
Oriental  Commercial  Bank,  1129. 
Oriental  Commercial  Company,  408. 
Oriental  Financial  Corporation,  233, 398, 

411,  1013,  1073,  1287. 
Ottoman  Bank  (in  Liquidation),  860. 
Ottoman  Financial  Association,  400, 481 , 

1284,  1372, 
Parr's  Leicestershire  Banking  Company, 

331. 
Provincial  Banking  Corporation,  365. 
Provincial  Bank  of  Ireland,  773. 
Koyal  Bank  of  Ireland,  1266. 
li<^al  Bank  of  Liverpool,  233. 
Scinde,  Punjaub,  and  Delhi  Bank,  33, 

835. 
Scottish  and  Universal  Finance  Bank, 

163. 
Sheffield  aod  Hallamshire  Bank,  1001, 

1 142. 
Sheffield  and  Kotherham  Bank,  332. 
Standard  Bank  of  British  Sonth  Africa, 

634,  1303. 
South  African    Mortgage  and  Inyest- 

ment  Company,  780. 
South  Australian  Banking  Company, 

856. 
South  Eastern  Banking  Company,  363, 

407,  638,  749. 
Sydney  Citv  Bank,  620. 
Union  Bank  of  Australia,  350. 
Union  Bank  of  Australia,  139,  944. 
Union  Bank  of  Ireland,  240, 1008. 


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INDEX. 


VII 


0ci(Hi  Bank  <rf  London,  149,  950, 
UmoQ  Bank  of  ScoUand,  758. 
UnhjBank,  The,  301,  410,  527. 
Ticioria  Finance  Aasodation  of  Bom- 
bay, 1372 


Warrant  Finance  Company,  219. 
Yoik  City  and  County  Banking  Com- 

panr,  233,  243. 
Yorkshire  Banking  Company,  335. 


BANKING  AKD  COMMERCIAL  LAW. 

Bills  and  PromiasoTy  Notes,  832.               1  Sale  or  Deposit  of  Chattels— Implied 

GnsrEntee  —  When     continuing     and  '  warranting  on.  25. 

when  not,  724.                                         I  Secuii ties— Personal  Estate  of  Married 

Notes  on  Joint  Stock  Co    pac^  ed,  1  356  Women  in  Court,  25. 


LEGAL  MISCELLANY. 


A1h>gcd  Embesdement  by  a  Bank  Clerk, 

932. 
Atkgcd  Fnmdnient  HepresentiUion  with 

RqjMd  to  the  SolrencT  of  a  Firm, 

8S4. 
Anstin  v.  Bmiyan,  Post-dated  Cheques, 

W3. 
B«ok  of  Austria,  299,  819,  926. 
Benk  of  Gibraltar  and  Malta— Winding 

Up,  1353. 
Bankers  and  Customers,  32. 
Baron  de  Thierry  and  Others  v.  Lord 

Feraaoy  and  Others— The  Bank  of 

Anstria,  299,  819,  926. 
Birmingham  Bank  Failure,  The,  608 
Binnii^faam  Penny  Bank,  The,  1351 
Binangfaam  and    South    Staffordshire 

Bank— Alli^cd    Fraudnlent   Repre- 

iCBtatioDs,  601. 
Comnriaskm   for   Procuzing  Directors, 

M7. 
Diaper  and  Otheri  v.  The   Imperial 

Bank,  297. 
£sst  of  England  Bank—  Winding  Up 

of,  936 
Ex  parte  Addinell,  1355. 
Ex  parte  Barrett— The  Leeds  Banking 

Company,  461. 
Ex  parte  Isaac  Bngg — East  of  England 

Bank,  926. 
£x  parte  Dobson,  1355. 
Ex  parte  Feamddc  and  Dean,  1355. 
fix  parte    Janiee    B.   Higgs— Re    the 
Bulk    of  Hindnatas,     China,    and 
Japan,  929 
&  parte  Peter  D.  Los— The  Bank  of 
flmdostan,  China,  and  Japan,  828 


Ex  parte  James  Ship,  298. 

Gray  v.  Collins.  The  Birmingham  and 
South  Staffordshire  Banking  Com- 
pany, 601 . 

Hemmings  v.  The  Alliance  Bank,  824, 

Hoffman  v.  The  Agra  &  Maaterman^s 
Bank,  32. 

Injury  to  Credit  by  Non-payment  of  a 
Cheque,  824. 

James  v.  The  Oriental  Bank  Corpora- 
tion, 30. 

Joint-StockCompanies,  Important  Ques- 
tion with  regard  to,  30, 

Leeds  Banking  Company,  Winding 
up,  130,  461,  1363. 

Leeds  Banking  Company,  Prange*s 
Claim,  1352. 

Leed's  Banking  Company,  other  Claims, 
1355. 

London  and  Eastern  Banking  Corpora- 
tion, 600. 

Mercantile  Bank  of  New  York  t>.  Wind- 
sor, 932. 

Post-dated  Cheques,  823. 

Re  Attwoods,  Spooner,  &  Co.,  608. 

Re  the  Companies  Act  of  1862,  828, 
929. 

Re  the  Scottish  and  Uniyersal  Finance 
Bank,  606. 

Re  Colonel  Waugh,  600. 

Scottish  and  Universal  Finance  Bank, 
298. 

Varying  the  Objects  for  which  a  Com- 
pany was  established,  606. 

Watson  V.  The  International  Bank,  129. 

Watts  and  Others  v,  Lewis,  824. 


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VIII 


INDEX. 


COMMUNICATIONS. 


Ad  Valorem  Stamps,  87,  1393. 

Australian  BovereignB,  1023. 

Bank  Clerks*  Salary,  84. 

Bank  of  England  Notes,  85. 

Bank  and  other  Amalgamations,  1154. 

Bankers*  and  Assurance  Policies,  1021. 

Bankers'  Commission,  1491. 

Bankers'  Guarantee  and  Trust  Fund, 

531,  662. 
Tankers'  Library,  1390. 
Panking  in  Australia,  1020 
Pankin^at  Ballarat,  419. 
Panking  Practice,  1390. 
Panking  Queries,  784,  888, 
Branch  Bank  Cheques,  Practice  with 

regard  to,  1223,  1313,  1314,  1390. 
Cashing  of  Cheques,  1225 
C  heque  to  Bearer,  531 
Cheques  of  Customers,  1891. 
Cheque  Payable  to  Order,  85,  667. 
Cheques  sent  Abroad,  1224. 
Cheques  through  the  Post,  1224. 
Cheques  drawn  from  Abroad,  1154. 
Cheque  out  of  Date,  669. 


Christmas  Gratuities  to  Clerks;  87, 530. 
Circulationof  a  Private  CountryBank,87. 
Coupons,  Are  they  liable  to  Stamp  Duty, 

668. 
Crossed  Cheques,  87,  1024,  1225, 1393. 
Deceased  Accounts,  86. 
Endorsed  Cheque,  87. 
Endorsement  of  Cheque,  532,669,  784. 
Foreign  Bill  of  Exchange,  1024. 
Goschen,  Mr.  and  Mr.  Enderby,  886. 
Goschen,  Mr.  and  seven  per  cent,  889. 
Gratuities  to  Bank  Clerks,  254. 
Isle  of  Man  and  Jersey,  1314. 
Issue  of  Notes,  254, 
Leeds  Banking  Company,  1391 . 
Limited  Liability,  1 1 53. 
Maturity  of  Notes  fallin  g  due,  888. 
New  Banks,  The,  85. 
Partnership  Act,  The,  1024. 
Payment  of  Crossed  Cheques,  253. 
Practice  with  regard  to  Cheques,  1153. 
Profits  of  English  Banks,  1313,  1388. 
Stamp  Receipts,  1392. 
Touting  for  Business,  530,  668. 


MEETINGS  OF  FAILED  FIRMS,  «fec. 


Estate  of  Messrs.  Attwoods,  Spooner  & 
Co.,  784. 

Mestrs.    Brown,   Buckley    & 

Co.,  89. 

Mr.T.  S.  Begbie.632. 

Messrs.    I.   T.    Bell  &    Co., 

1025,  1228. 
— —    Messrs.  Bremner  &  Co.,  670. 

Buchanan,  Hamilton   &   Co., 

670. 

Messrs.  Cuadra,  Enciso  &  Co., 

255. 
— —    Messrs.  Dirom,    Davidson    & 
Co.,  889. 

Messrs.  Early  &  Smith,  88. 

Messrs.  Eyles,  Evans  &  Co«, 

90,  254. 

Messrs.  Grundler,  Ormand   & 

Co.,  254. 


Mr.  Henry  Gumey,  90. 
Messrs.  Hill  &  Weguelin,  421. 
Messrs.  Charles  Joyce  &  Co., 

783. 
Mr.  David  Leopold  Lewis,  670. 
Messrs.  James  Lunham  &  Co., 

257,  421. 
Messrs.  John  M'Call  &  Co.,  89. 
Messrs.  W.  J.  Morgan  &  Co., 

90. 
Messrs.  John  Nathan  &  Co., 

255. 
Messrs.  Beid,  Irving,  &  Co., 

255. 
Messrs.  Scott,  Bell,  &Co..  1227. 
Mr.  Wm.  Vilches  99 
Mr.  C.  Wilson,  90. 
Messrs.    Woodhonse,  Eenich, 

&  Co.,  890. 


NOTES  OF 

Bank  of  Australasia— Belfast,  Victoria, 

1313. 
Bank  Shareholders—Rights  of,  1026 
Death  of  Sir  William  Berkeley  Cale, 

Bart.,  91. 
Defaulting  Cashier,  1394. 
Finsbury  and  City  of  London  Savings 

Banks,  1156. 
Frauds   on    the    Canterbury   Sayings 

Banks.  1316. 


THE  MONTH. 

Hampshire  Banking  Company,  1157. 
Lubbock,  Sir  John— The  Will  of,  1316. 
Prescott,  Mr.  W.  G.,  Suicide  of,  787. 
Prescott,  Mr.  W.  G.,  WiU  of,  787. 
Rochdale  Property  and  General  Finanoe 

Company,  1157. 
Stopped  Bonks — Law  on  the  Notes  of, 

1026. 
Swansea  Savings  Bonk,  1166. 


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THE  BANKERS'  MAGAZINE, 

▲hd 


JANUABY,    1866. 


THE  TBRBONATION  OF  THE  YEATl  1864. 

It  miglit  have  been  supposed  that  the  year  just  now  concluded 
vrould  have  been  one  of  the  most  prosperous  on  record.  Certainly, 
taking  the  course  of  speculation  witnessed,  and  the  full  inflation 
in  prices  during  the  first  six  months,  there  has  been  ample  reason 
to  presume  that  there  was  little  or  no  prospect  of  reaction.  It 
was,  indeed,  this  apparent  confidence  in  the  satisfactory  progress 
of  affairs  that  gave  such  a  couleur  de  rose  appearance  to  trade  and 
adventure,  and  induced  those  who  took  part  in  the  operations 
of  the  hour,  to  imi^ine  that  notwithstanding  money  might  rule  at 
high  rates,  the  future  would  present  no  disagreeable  results. 
The  season  for  recreation,  it  was  believed,  would  produce  a  lull 
in  the  organization  of  our  enterprises,  and  leave  promoters  and 
others  time  to  reflect  upon  the  weight  of  responsibility  incurred, 
without  increasing  further  general  engagements.  But  it  was 
never  imagined  for  one  moment,  at  least  such  was  the  dictum  of 
individuals  confessedly  interested,  that  we  had  arrived  at  a  time 
when  both  financiallv  and  commercially  we  might  be  placed,  in 
straits  of  a  most  douotful  description. 

We  ourselves,  who  had  from  month  to  month  sounded  the 
note  of  warning,  were  regarded  as  carpers  of  the  old  alarmist 
school,  who  were  not  to  be  treated  with  anything  like  considera- 
tion, because  (so  our  friends  said),  we  were  not  thoroughly  pre^ 
pared  for  the  change  that  had  so  steadily  but  silently  made  way, 
contradicting  all  previous  theories  of  finance,  and  indicating  tne 
march  of  intellect,  far  in  advance  of  ordinary  notions  of  propriety. 
Satisfied  as  we  were  of  the  fallacy  of  the  doctrine,  we  were  never- 
theless ready  to  allow  our  instructors  to  take  advantage  of 
the  oocasion  to  |»raise  the  strength  of  their  position,  reserving  to 
ourselves  the  rigbt  of  intimating,  at  a  convenient  season,  the 

VOL.  XXV.  1 


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2  The  Termination  of  the  Year  1864. 

opinion  entertained  of  wliat  they  advanced.  It  was  not  long 
before  the  time  arrived  when  we  could  state  unhesitatingly  our 
views ;  and  how  far  they  have  in  reality  been  confirmed,  the 
events  of  tl^e  last  four  months  have  abundantly  testified. 
Indeed,  it  is  a  matter  of  surprise,  looking  back  at  wmit  we  have 
recently  gone  through,  that  we  have  escaped  with  so  simple  a 
scarification ;  for  at  one  instant  it  seemed,  especially  about  the 
middle  of  October,  that  had  it  not  been  for  the  sound  discrimina- 
tion displayed  by  the  bankers  and  brokers,  there  would  have 
ensued  a  most  frightful  era  of  panic,  the  consequences  of  which 
no  one  could  estimate.  Fortunately  that  was  averted ;  the  con- 
fidence exhibited  by  the  public  in  the  midst  of  the  prevailing 
distress  tending  much  to  alleviate  the  peril  that  would  have 
arisen  had  a  helter-skelter  run  for  accommodatio^  followed,  and 
found,  as  it  has  dqne  on  former  occasions,  little  or  no  response. 

Afi  it  is,  we  have  passed  through  a  period  of  peril  with  com- 
paratively little  damage  ;  for,  notwithstanding  prices  at  the 
Stock  Exchange  have  largely  fluctuated,  and  failures  have 
occurred,  the  crisis  has  not  been  of  a  character  to  create  undue 
apprehension,  or  to  leave  consequences  which  cannot  easily  be 
surmounted.  The  impression  produced  by  the  alteration  is, 
however,  sufficiently  important  to  show  that,  had  it  not  been  for 
the  greatest  care  and  circumspection,  there  would  hav«  been 
extensive  disasters.  The  operators  in  public  securities  are 
now  so  generally  used  to  variations  in  prices  that  the  true 
movements,  such  as  were  witnessed  in  May  and  June,  and 
later  again  in  August  and  September,  would  never  have  created 
alarm ;  but  the  circumstance  that  occasioned  anxiety  was  the 
excessive  stringency  in  the  money  market,  which  promised  to 
last  for  some  period. 

Seve^  per  cent,  was,  perhaps,  not  considered  out  of  the  way ;  but 
when  the  official  mimmum  went  to  eight  per  cent.,  and  was  sub- 
sequently sustained  at  nine  per  cent.,  the  effect  was  certainly  anti- 
cipated ;  and  whatever  may  be  alleged  with  regard  to  the  profits 
of  trade  paying  a  full  per  centage  for  discount,  if  the  exorbitant 
terms  do  not  last  beyond  a  few  months,  the  rule  may,  perhaps, 
apply  if  placed  in  association  with  first-class  transactions  ;  but 
if  this  is  the  case  in  this  respect,  it  is  not  so  certain  that  the 
rule  holds  good  in  connection  with  second  and  third  class 
operations— for  it  is  not  so  much  the  rate  to  be  paid  as  it  is  the 
possibility  of  obtaining  in  reality  the  necessary  accommodation. 

The  currency  of  the  high  rate  of  nine  per  cent,  for  a  long 
time  naturally  entailed  a  strain  in  the  produce  departments ; 
and  when  the  serious  fill  in  cotton  followed,  through  the  tem- 


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The  TermituUion  of  the  Year  1864.  3 

porary  expectation  of  peace  in  America,  the  struggle  to  maintain 
credit  became  more  evident.     Although  the  majority  of  houses 
that  failed  proved  to  have  been  more  or  less  weak  and  embar- 
rassed by  speculation,  it  was  necessary  to  extend  assistance  to 
some  others  likely  to  suffer  from  the  numerous  imfounded  re^ 
ports  circulated  towards  the  end  of  September  and  October. 
One  thing    that  was  iu   many  cases  apparent  was   the  large 
credit  several  of  the  firms   had  obtained   on  slender  means, 
shoving  that  the  old  principle  of  "  ship  and  draw/'  which  has 
in  other  periods  of  cpmmercial  inflation  been  discovered,  had 
again  been  resorted  to  on  an  extended  scale.     The  fluctuations 
in  cotton  has,  at  the  same  time,  done  part  of  the  mischief,  but 
not  to  the  same  extent  as  the  consignments  made  so  freely 
abroad,  and  which  it  cannot  be  supposed  will  return  much  to 
the  creditors.     Large  losses  have  likewise  been  made  in  sugar 
aad  rice,  the  depreciation  in  these  especially  having  been  very 
considerable. 

Bat  it  is  to  be  hoped  that  the  worst  effects  of  this  epoch  of 
depression  and  declme  are  over,  and  that  we  are  now  emerging 
into  a  more  encouraging  and  healthy  state  of  business.  If 
banking  facilities  have  been  too  generally  afforded — more  par- 
ticularly by  two  or  three  of  the  newbankmg  institutions — they 
have  gained  their  lesson  of  experience,  and  in  future  they  will 
have  tc  operate  with  much  greater  caution.  They  will  never- 
theless hereafter  be  able  to  reinstate  themselves  in  a  favourable 
sitoation,  if  they  have  not  gone  too  far  by  incurring  dispropor-r 
tiosied  liabilities.  The  next  half-yearly  meetings  will  indicate 
the  extent  of  loss  which  these  establishments  have  made  through 
SQch  iailores,  and  the  probable  realization  of  securities  held 
aod  the  prospect  of  diyidends  from  the  various  estates. 

It  is  not  believed  that  the  old  banks  have  sustained  any 
alanning  debts.  In  the  general  course  of  business  during  the 
fdst  six  months  they  have  had  to  take  their  chance  with  the 
other  financial  institutions ;  but  although  here  and  there  through 
suspensions  they  cannot  have  wholly  escaped,  it  seems  to  be 
imagined  that  their  share  of  sacrifice  nas  been  much  below  the 
average.  No  doubt  the  proprietors  will  be  very  pleased  at 
finding  this  is  the  fact,  and  they  will  accordingly  appreciate  the 
management  which  has  carried  them  through  so  successfully. 
While  they  have  ayoided  the  shoals  and  quicksands  upon  which 
fiome  of  their  less  fortunate  neighbours  have  been  forced,  they 
have  also  increased  their  business  and  made  connexions  of  an 
important  nature.  More  than  one  of  the  new  establishments  have 
ensured  apoeitioii  which,  to  say  the  least  of  it,  promises  to  creato 


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4  The  Termination  of  the  Year  1864. 

a  solid  reputation.  Difficulties  have  had  to  be  oombatted,  and 
shareholders  will  not  be  pleased  with  diminished  dividends,  but 
before  attaining  full  prosperity  a  trying  ordeal  has  frequ^itly 
to  be  passed  through  which,  in  the  long  run,  assists  in  securing 
that  desirable  object. 

The  principal  of  the  discount,  finance,  and  credit  com- 
panies, it  is  stated,  have  transacted  a  favourable  business  ;  in 
the  majority  of  cases  fair  dividends  are  looked  for,  and  in 
special  instances  they  will,  it  is  asserted)  be  very  encouraging. 
The  finance  and  credit  companies  will  not,  however,  be  able 
to  show  so  large  an  amount  of  profit  as  previously ;  because, 
during  the  last  four  months  few  enterprises  have  appeared,  and 
the  returns  from  promotion  have  been  little  better  than  nil. 
Still,  the  whole  df  the  establishments  are  acquiring  strength, 
and  when  we  have  a  return  to  a  full  measure  of  activity,  the 
prospects  of  improvement  will  be  speedily  discernible.  In- 
volved in  these  various  establishments  is  a  new  kind  of  banking 
element  which,  entrusted  to  cautious  hands,  will  gradually  de- 
velope  itself  and  become  most  remunerative ;  but  if  vigilance, 
&c.,  be  not  displayed,  it  is  very  likely  to  lead  to  embarrassment. 
The  greater  number  of  the  best  working  companies  are  con- 
fided to  boards  of  directors  and  managers  who  have  hitherto  pos- 
sessed considerable  financial  experience,  and  therefore  the  ex- 
pectation is  entertained  that  they  will  be  conducted  prudently. 

Looking  impartially  at  the  close  of  the  year,  and  at  its 
antecedent  progress,  it  must  be  confessed  that  although  the  last 
three  or  four  months  have  exhibited  discouraging  symptoms,  the 
twelve  months,  taken  on  the  whole,  cannot  be  said  to  have  ter- 
minated unsatisfactorily.  As  is  customary  in  every  speculative 
era,  there  has  been  a  breakdown,  but  not  such  a  severe  one 
as  to  sweep  away  all  profits.  Business  has  latterly  been 
much  curtailed,  through  the  high  rates  for  money,  and  the 
despondency  occasioned  by  the  late  failures.  The  healthiness  of 
this  reaction  has  been  exhibited  in  the  return  of  ease  in  the 
money  market,  and  in  the  descent  of  the  rate  from  nine  to  the 
more  rational  price  of  six  per  cent.  The  same  sympathy  has 
been  shown  by  the  terms  for  discount  in  the  Continental  markets, 
every  foreign  national  bank  having  lowered  its  quotations — the 
BauK:  of  France  taking  the  lead,  the  last  reduction  being  to 
4^  X)er  cent.  It  may  therefore  now  be  fairly  said  that  there  is 
ease  in  the  money  markets  of  Londcm  and  Paris ;  and  if  no 
untoward  events  take  place  in  the  spring,  we  anticipate  that 
finance  and  trade  will  hereafter  move  in  a  smooth  and  quiet 
ohannel. 


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HISTORIC  OUTUXES  OF  AMERICAN  FIN^ANCE. 
No.  XL 

Mr.  M^o-sroe  was  inaugurated  President  on  the  4th  of  ifarch, 
1S17.    In  tbe  first  session  of  his  rule  the  internal  duties  imposed 
during  the  war  vrere  abolished.     He  strengthened  the  fortifica- 
tions on  the  coast,  and  altered  the  law  for  compensating  the 
congressionail  services  both  of  the  representetives  and  of  the 
senators.    The  Act  of  March,  1816,  had  awarded  to  each  member 
of  both  Houses  a  salary  of  fifteen  hundred  dollars  a  year ;  it  was 
repealed,  and  in  substitution  each  was  allowed  eight  dollars  a 
day  when  in  scission,  and  eight  dollars  for  every  twenty  miles 
traxelled. 

In  1818,  East  and  West  Florida,  and  all  the  adjacent  islands, 
were  ceded  by  Spain  to  the  United  States,  though  the  formal 
surrender  was  not  completed  before  1821,  but  the  archives  and 
other  state  documents  were  not  given  up  on  that  occasion ; 
of  the  sales  of  land  in  Florida,  the  United  States  agreed  to  pay 
five  millions  of  dollars  to  American  citizens  who  had  been  spoli- 
ated by  the  Spaniards.  In  this  year  the  Missouri  Compromise 
Bill,  the  first  overt  act  threatening  disunion  between  the  North 
and  South,  was  discussed,  but  the  controversy  was  not  settled 
tm  the  2nd  of  March,  1821. 

3£r.  Monroe  was  twice  elected  President.  In  his  first  inaugural 
address  of  the  5th  of  March,  1817,  after  pointing  out  that  the 
United  States  enjoyed  every  variety  of  climate,  extending  through 
many  degrees  of  latitude,  which  rendered  them  commercially 
independent  of  nearly  all  other  nations,  if  their  industry  were 
judiciously  applied  to  production  and  distribution,  the  President 
made  the  following  remarks  on  the  principle  of  protection  : — 

"Our  manufacturers,"  said  Mr.  Monroe,  "find  a  generous 
encouragement  by  the  policy  which  patronises  domestic  industry, 
and  the  surplus  of  our  produce  a  steady  and  profitable  market 
by  local  wants  in  less  favoured  parts  at  home.  Our  manufac- 
tures will  require  the  systematic  and  fostering  care  of  the 
government.  Possessing,  as  we  do,  aU  the  raw  materials,  the 
fruit  of  our  own  soil  and  industry,  we  ought  not  to  depend,  in  the 
d^ree  we  have  done,  on  supplies  from  other  countries.  While 
we  are  thus  dependent,  the  sudden  wants  of  war,  unsought  and 
unexpected,  cannot  fail  to  plunge  us  in  the  most  serious  diflScul- 
tie».  It  is  important  too  that  the  capital  that  nourishes  our 
manufactures  should  be  domestic,  as  its  influence  in  that  case, 
iQ5tead  of  exhausting,  as  it  may  do  in  foreign  hands,  would  be 

VOL.   XXV.  2 


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6  SistoHc  Outlines  x>f  American  finance. 

felt  advantageously  in  agriculture,  and  in  every  other  branch  of 
industry.  Equally  important  is  it  to  provide  a  home  market 
for  our  raw  materialsj  as,  by  extending  the  competition,  it  will 
tohance  the  price,  and  protect  the  cultivator  against  the  casualties 
incident  to  K)reign  markets.^' 

In  enunciating  these  protectionist  principles,  Mr.  Monroe 
supported  the  policy  of  all  his  presidential  predecessors,  and 
echoed  the  voice  of  public  opinion.  Those  principles  are  now 
repudiated  in  England,  where  they  were  formerly  as  warmly 
encouraged  as  in  America ;  but  it  should  be  remembered  that  the 
relative  positions  of  old  and  new  countries  are  essentially 
different.  All  commence  their  industrial  career  as  agriculturists^ 
and  gradually  become  manufacturers,  while  they  who  dwell  on 
the  sea  coast  devote  themselves  to  navigation.  While  America 
was  a  colony  we  have  seen  what  constant  and  unjust  efforts 
were  made  by  England  to  crush  its  rising  manufactures.  Its 
progress  in  naval  architecture  was  resisted  with  equal  jealousy. 
In  1670,  the  celebrated  Sir  Josiah  Child  declared  that  "  of  all 
the  American  plantations  His  Majesty  has  none  so  apt  for  the 
building  of  shipping  as  New  England,  nor  so  qualifi^  for  the 
breeding  of  seamen,  not  only  by  the  natural  industry  of  the 
people,  but  principally  by  reason  of  their  cod  and  mackarel 
fisheries ;  and,  in  my  opinion,  there  is  nothing  more  prejudicial, 
and  no  pi*08pect  more  dangerous  to  any  mother  kingdom  than 
the  increase  of  shipping  in  its  colonies,  plantations,  and  provinces.* ' 
The  selfishness  and  cupidity  of  Great  Britain  desired  to  retain 
America  in  a  purely  agricultural  condition,  confining  her  to  the 
plough,  and  prohibiting  the  sail,  the  loom,  and  the  forge.  Food 
she  might  grow  for  herself ;  whatever  else  she  required  was  to 
be  obtained  from  the  mother  country,  as  the  supply  would  be 
attended  with  profit  to  the  mother  country.  This  was  the 
principle  of  a  tribute-exacting  government,  insisting  that  its 
colony  should  never  be  self-sustaining  but  always  dependent.  It 
was,  therefore,  decreed  by  British  legislation  that  America  was 
tiot  to  work  its  miiierals  or  metals,  build  ships  with  its  timber 
drawn  from  its  own  forests,  navigate  its  own  rivers,  or  convert 
its  own  raw  materials  into  objects  of  utility.  It  was  to  continue 
a  farm  for  ever,  and  England  was  to  be  the  sole  workshop  of 
that  farm.  Of  course  these  restrictions,  imposed  by  the  strong 
hand  of  power,  ceased  when  political  independence  was  estab- 
lished ;  but  the  older  country,  by  virtue  of  its  superior  machinery, 
and  ite  larger  accumulated  capital,  could  easily  undersell  the 
younger  coimtry  on  equal  terms  of  competition.  By  these  ad- 
vantages it  was  as  effectively  enabled  to  hold  the  United  States 


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Historic  Outlines  of  American  finance.  7 

in  agricultural  bondage  by  amannfactnring  invasion,  as  it  had 
ifild  the  colony  by  imperial  legislation.  The  means,  indeed, 
were  less  offensively  odious,  because  the  interference  of  the 
mother  country  was  less  directly  felt,  but  the  result  was 
equally  destructive  of  American  labour.  Apparently  a  benefit 
was  offered,  for  England  could  supply  goods  at  a  cheaper  rate 
than  the  Americans  could  supply  themselves ;  but  this  tempt- 
ing bait  of  moneyed  cheapness  concealed  a  snare.  It  was 
presented  solely  on  the  condition  that  America  should  continue 
a  consumer  of  foreign  commodi  ties,  leaving  her  own  raw  materials 
unworked,  and  thus  condemning  to  idleness  the  labour  which 
would  otherwise  have  been  employ^.  Had  the  United  States 
accepted  this  policy  it  never  could  have  passed  from  the  gristle 
into  the  bone.  Mow  was  a  neighbourly  intercourse,  founded 
on  a  mutuality  of  interests,  between  agricultural  states,  planta- 
tion states,  manufacturing  states,  and  shipping  states,  to  have 
been  cemented  and  perpetuated,  except  by  those  commercial 
linkB  which  can  onlv  be  welded  together  by  relative  production^ 
consumption,  and  mterchange  ?  In  a  vast  country  having  a 
variety  of  climates  and  pursuits,  and  a  diversity  of  raw  materials^ 
it  would  have  been  an  insane  policy  aiming  at  mere  moneyed 
cheapness  to  array  portions  of  the  Federation  against  each 
other  in  an  industrially  belligerent  attitude.  The  true  object 
of  American  statesmanship  was  to  concentrate,  consolidate,  and 
blmd  together  all  those  various  interests,  so  directing  the 
measures  of  government  as  to  combine  the  whole  nation,  as  it 
were,  in  a  family  concern,  that  the  citizens  of  each  and  every 
state  might  feel  that  they  were  citizens  of  the  United  States. 
It  was  desirable  that  producers  and  consumers,  however  scattered 
over  the  territory  of  the  Union,  should  be  brought  together 
iato  the  closest  juxtaposition  possible,  by  creating  a  home 
demand  both  for  the  products  of  agriculture  and  the  fabrics  of 
manufactures,  thus  uniting  state  to  state;  city  to  city,  village  to 
village,  house  to  house,  the  sea-board  with  the  interior,  and  all 
with  the  lakes,  industrially  as  well  as  politically.  Such,  at  the 
period,  were  the  views  of  federal  statesmanship,  for  as  yet  the 
popular  mind  was  faithful  to  the  perpetuity  of  the  Union. 

Ihiring  Mr.  Monroe's  first  term  of  office  the  national  debt  was 
largely  i^uced.  In  his  message  to  congress  of  the  14th  Nov-* 
ember,  1820,  lie  made  the  following  statement  on  the  public 
finances.  On  the  30th  September,  1815,  the  funded  and  floats 
ing  debt  of  the  United  States  was  estimated  at  119,635,558 
dcfim.  If  to  this  sum  be  added  the  amount  of  five  per  cent. 
>tock  subscribed   to  the  Bank  of  the  United  States^  the  amount 


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of  Mississippi  stocky  and  of  tlie  stock  issued  subsequently  to  that 
date,  the  b^ances  ascertained  to  be  due  to  certain  states  for 
military  services,  and  to  individuals  for  supplies  furnished  to 
that  date,  as  afterwards  liquidated,  the  whole  figured  on  the 
30th  of  September,  1815,  for  158,713,049  dollars.  On  the  30th 
September,  1820,  it  was  reduced  to  91,193,883,  by  payment 
of  the  difference  between  those  two  sums,  or  67,713,069. 
Owing  to  causes  presently  to  be  explained,  and  which  require  a 
separate  exposition  and  treatment,  the  foreign  commerce  of  the 
country  declined  during  the  closing  years  of  Mr.  Madison's  ad- 
ministration, and  so  continued  under  that  of  Mr.  Monroe,  and 
with  it  the  revenue  derived  from  customs  dues.  It  became 
necessary  to  borrow,  by  which  fresh  loans  were  contracted  though 
old  loans  were  discharged,  and,  on  the  whole  financial  opera- 
tions, public  indebtedness  was  diminished.  At  the  close  of  Mr. 
Monroe's  administration  in  1824,  the  national  debt  was  estimated 
at  86,000,000  dollars,  inclusive  of  2,500,000  dollars  borrowed  in 
1823.  In  that  estimate  was  also  included  a  stock  of  7,000,000 
of  dollars  issued  for  the  purchase  of  that  amount  of  the  capital 
stock  of  the  Bank  of  the  United  States ;  but  as  that  amount 
was  still  held  by  the  government  it  was  fully  equal  to  the  reim- 
bursement of  the  purchase,  and  in  that  sense  could  not  be  con- 
sidered as  constituting  a  part  of  the  national  debt,  which, 
therefore,  only  figured  in  fact  for  an  uncovered  sum  of  79,000,000 
dollars. 

There  is  one  other  important  subject  connected  with  finance 
to  notice  in  the  administration  of  Mr.  Monroe.  It  had  been 
held  as  a  constitutional  principle  that  the  funds  of  the  federal 
government  should  only  be  appropriated  to  federal  improve- 
ments, never  to  state  improvements.  The  advocates  of  states 
rights  protested  against  this  construction  of  the  law,  but  the 
President  adhered  to  it;  however,  he  ultimately  ceded  the 
point  and  gave  his  assent  to  the  appKcation  of  public  moneys  to 
roads  and  canals  which  belonged  to  states,  not  to  federal  juris- 
diction ;  and  this  became  a  precedent  for  future  legislators.  Mr, 
Monroe  also  authorised  the  sale  of  public  lands  in  sections  of 
eighty  acres  each,  to  suit  the  poorer  class  of  purchasers,  but 
abolished  the  credit  system.  After  the  1st  July,  1820,  it  was 
ordered  that  cash  should  be  received  on  land  sales,  great  abuses 
having  arisen  from  many  persons  having  bought  who  had  not 
wherewithal  to  pay,  speculating  on  a  rise  of  prices.  This 
retarded  occupancy  and  actual  cultivation  which  was  the  real 

e>licy  of  the  Government  in  utilizing  the  national   domain. 
owever,  an  act  was  passed  exonerating  these  penniless    pur- 


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Historic  Outlines  of  American  Finance,  9 

chasers  from  their  contracts  and  the  debt  due  on  them,  on 
their  relinqiiLshing  the  lands  and  restoring  them  to  the  land 
(lifice.  To  actual  settlers  in  Florida,  then  an  almost  xmpeopled 
desert,  land  was  given  without  any  payment.  The  naturalisa- 
tion laws  were  altered  so  as  to  allow  aliens,  being  minors,  to 
become  citizens  on  arriving  at  the  age  of  twenty-one  years, 
provided  they  had  resided  five  years  in  the  United  States. 

At  the  very  close  of  Mr.  Monroe's  administration  of  eight 
rears,  that  is  in  February,  1825,  Mr.  King,  of  New  York,  pro- 
posed in  the  senate  that,  after  the  extinction  of  the  public  debt 
for  which  the  national  domain  was  pledged,  the  proceeds  of  all 
sales  arising  from  it  should  be  applied  to  the  emancipation  of 
slaves.  The  proposal  did  not  receive  the  sanction  of  the  senate, 
but  the  fact  proves  that  the  difficulties  which  subsequently  arose 
on  the  subject  of  the  '*  domestic  institution"  were  foreseen  by 
kecner-sighted  statesmen. 

Mr.  John  Quincy  Adams  was  inaugurated  into  the  presi- 
dential office  on  the  4th  March,  1825.  The  strictly  political 
erenta  of  his  administration,  though  few,  were  important,  but 
their  full  significance  was  not  appreciated  by  his  contemporaries. 
In  some  of  these  we  may  trace  indications  of  that  growing 
conflict  between  the  North  and  the  South  which  ultimately  led 
to  secession,  Mr.  Monroe  had  recognised  the  independence  of 
Meidco,  and  the  first  act  of  Mr.  Adams  was  an  attempt  to 
bring  South  and  North  America  into  alliance.  He  proposed  a 
meeting  of  delegates  from  both  coimtries,  to  be  convened  at 
Panama.  The  plan  was  submitted  to  the  committee  of  foreign 
relations,  and  by  them  rejected  on  the  26th  January,  1826. 
It  was  generally  believed  that  the  committee  had  been  packed 
bv  3Ir.  Calhoun,  who,  as  vice-president,  had  the  appointment. 
He  was  the  leading  statesman  of  the  South,  suspected  of  a 
desire  to  annex  Mexican  territory  to  the  Union  for  the  specific 
purpose  of  enlarging  the  area  of  slavery  (restricted  and  defined 
by  the  Missouri  compromise),  by  forming  new  states  in  which 
the  domestic  institution  might  be  legsdly  established.  Mr. 
Calhoun,  therefore,  did  not  favour  an  independent  kingdom  in 
Mexico,  where  slavery  had  been  abolished ;  and  the  subsequent 
war  in  that  country,  wholly  undertaken  in  the  interests  of  the 
South,  confirms  this  view  of  Mr.  Calhoun's  policy.  But  the 
adverse  report  of  the  committee  of  foreign  relations  was 
negatived  in  the  senate  by  24  to  19  votes.  The  house  of 
representatives  warmly  sanctioned  the  proposition  of  Mr. 
Adams,  voting  an  appropriation  of  funds  to  defray  the  cost  of 
tbe  mission  to  Panama.    Mr.  Anderson^  minister  to  Columbia, 


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10  Historic  Outtines  rf  American  Finance. 

was  directed  to  attend  this  intemational  congress,  but  died  of 
malignant  fever  on  his  journey.  Thus  the  meeting  was  pre- 
vented. However,  congress  concluded  a  treaty  of  friendship 
and  perpetual  confederation  with  Mexico,  to  which  all  American, 
powers  were  invited  to  accede  within  the  year.  That  treaty  was 
dated  the  15th  July,  1825.  Its  object  was  to  carry  out  what 
is  known  as  the  Monroe  doctrine,  which  denied  the  right  of  any 
of  the  European  monarchies  to  interfere  in  the  affairs  of  the 
New  World. 

The  concession  made  by  Monroe,  to  appropriate  public  moneys 
to  state  improvements,  led  to  an  attempt  to  allot  the  national 
revenue  itself  among  the  different  states  so  that  each  might 
collect,  retain,  and  apply  its  own  portion  as  it  pleased.  This 
scheme  waa  defeated.  It  was  promoted  by  those  who  favoured 
the  doctrine  of  ^^  states  rights,"  and  desired  to  diminish  the 
patronage  of  the  executive.  During  the  four  years  of  Mr. 
Adams's  administration  no  less  a  sum  than  fourteen  millions  of 
dollars  was  expended  on  national  objects  in  which  the  whole 
Union  had  a  common  interest.  iNone  affirmed  that  this  ex- 
penditure was  useless,  injudicious,  or  extravagant,  but  it  excited 
a  sectional  animosity  among  those  who  agitated  the  doctrine  of 
^'  states  rights ;"  and  it  is  here  mentioned  as  among  the  real 
antecedents  to  the  subsequent  revolt  of  South  Carolina  during 
the  administration  of  General  Jackson. 

In  1826,  trade  with  the  West  Indies  was  prohibited,  as  the 
Government  of  England  would  not  abolish  the  discriminating 
duties. 

In  1827,  the  annual  report  of  Mr.  Rush,  secretary  to  the 
treasury,  recommended  a  protective  tariff  in  favour  of  American 
manufactures ;  and  in  1828  a  new  tariff  biU  was  passed.  It 
was  very  unpopular  in  the  southern  states,  which  were  stiU 
plantation  and  agricultural  in  industry,  and  desired  the  cheaper 
fabrics  of  Europe.  The  South,  accordiiigly,  denounced  the  new 
tariff  as  unconstitutional  and  oppressive,  for  their  interests 
were  very  different  from  those  of  the  North. 

During  the  rule  of  Mr.  Adams,  chieflv  devoted  to  domestic 
policy,  the  interest  on  the  public  debt  had  been  punctually  paid, 
while  the  debt  itself  had  been  constantly  in  a  process  of  re- 
duction. On  the  1st  of  January,  1829,  it  stood  at 
58,362^  lc36  dols.^  so  that  the  principar  sum  had  been  reduced 
by  21,637,638  dels,  during  the  four  years*  rule  of  Mr.  Adams, 
who  also  left  in  the  treasury  on  his  retirement  from  office  a 
surplus  of  5,125,638  dels.  The  financial  operations  both  of 
Mr.  Monroe  and  of  Mr.  Adams  are  thp  more  creditable  to  those 


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HUtarie  Outlines  qf  American  Finance.  11 

Presidents  coasidering  the  commercial  crisis  through  which  the 
United  States  passed  while  they  were  at  the  head  of  aiiairs. 

Mr.  Adams  was  an  eminently  conscientious  statesman.  The 
parity  of  his  moral  sense  was  without  taint.  He  never  made 
any  mean,  dishonouring  compromises  with  expediency.  Equivo^ 
cation  was  his  abhorrence,  and  he  scorned  to  catch  at  a  fleeting 
popularity  by  tiding  over  difficulties.  The  following  extract 
from  his  inaugural  address  reveals  the  character  of  his  mind. 

**  Is  o  government,"  said  the  President,  "  in  whatever  form 
constituted,  can  accomplish  the  laws  of  its  institution  but  in 
proportion  as  it  improves  the  condition  of  those  over  whom  it  is 
established.  Moral,  political,  and  intellectual  improvement  are 
duties  assigned  by  the  author  of  our  existence,  to  social,  no  less 
than  to  individual  man.  For  the  fulfilment  of  these  duties 
governments  are  invested  with  power ;  and,  to  the  attainment 
of  the  end,  the  progressive  improvement  of  the  condition  of  the 
governed  through  the  exercise  of  delegated  powers,  is  a  duty 
as  sacred  and  as  indispensable,  as  the  usurpation  of  powers  not 
granted,  is  criminal  and  odious.'' 

In  connection  with  the  finances  of  the  United  States,  Mr* 
Adams  stated  that  a  sum  little  short  of  thirty  millions  of  dollars 
had  been  paid  from  the  common  treasury  for  that  portion  of 
the  national  domain  which  had  been  purchased  from  France 
and  Spain,  and  for  the  extinction  of  aboriginal  titles.     The 
area  of  lands  acquired  by  these  arrangements  he  computed  at 
nearly  two  hundred  and  sixty  millions  of  acres,  of  which,  on 
the  ist  January^   1826,    about  one  hundred  and  thirty  nine 
millicms  of  acres  had  been  surveyed,  while  little  more  than 
nineteen  millions  had  been  sold.     Of  those  sold  a  considerable 
part  had  been  conveyed  under  extended  credits.     In  March, 
1821,  a  debt  of  twenty-two  millions  of  dollars,  due  by  pur- 
chasers of  the  public  lands,  which  they  were  unable  to  pay,  had 
accumulated.     To  their  relief,  congress  had  passed  several  acts 
between  the  ^^rears  1821  and  1826,  but,  according  to  law,  the 
last  of  these  mdnlgent  provisions  expired  on  the  4th  July,  1827, 
Mfiay  buyers  were  wholly  excused  from  their  bargains  on  re- 
eonveying  the  lands  to  the  government ;  to  others  Mr.  Adams 
proposed  to  extend  the  period  of  payment.    Three-fifths  of  the 
balances  then  due  were  for  lands  in  Alabama.    The  chief  causes 
of  this  derangement  were  the  monetary  crises  through  which 
the  nation  had  passed  on  the  termination  of  the  war,  and  which 
lad  been  aggravated  by  the  reckless  system  of  bankings  through 
iHiich  the  directors  greedily   aimed  at  large    dividends    by 
granting  loans  or  discounts  to  desperate  speculators  who  di^. 


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12  Historic  Outlines  of  American  Finance. 

not  buy  lands  with  any  view  to  their  cultivation,  but  to  sell 
them  at  an  advanced  price  at  some  postponed  date.  This 
facility  of  loans  encouraged  the  mania  of  gambling,  which 
seized  on  thousands  of  penniless  adventurers  who  had  nothing 
to  lose,  but  by  imposture  and  hypocritical  pretensions  sus- 
tained the  appearance  of  being  men  of  substance.  When  the 
exhausted  banks  could  no  longer  make  advances  or  renew  bills 
that  had  arrived  at  maturity,  the  bubble  burst,  and  the  land 
defaulters  could  no  longer  discharge  their  obligations  to  the 
federal  treasury. 

The  attention  of  Mr.  Adams  was  anxiously  directed  to  the 
protection  and  encouragement  of  native  industry,  in  reference 
to  which  he  delivered  the  following  sentiments  on  the  policy 
of  a  prohibitive  tariff  and  the  just  incidence  of  taxation. 

"  So  far  as  the  object  of  taxation  is  to  raise  a  revenue  for 
discharging  the  debts  and  defraying  the  expenses  of  the  com- 
munity, it  should,  as  much  as  possible,  suit  the  burden  with 
€qual  hand  upon  all  in  proportion  with  their  ability  of  bearing 
it  without  oppression.  But  the  legislation  of  one  nation  is 
sometimes  intentionally  made  to  bear  heavily  on  the  interests 
of  another.  That  legislation  adapted,  as  it  is  meant  to  be,  to 
the  several  interests  of  its  own  people,  will  often  press  most  un- 
equally upon  the  several  component  interests  of  its  neighbours. 
Thus  the  legislation  of  Great  Britain,  when,  as  has  been  re- 
cently avowed,  adapted  to  the  depression  of  a  rival  nation,  will 
naturally  abound  with  regulations  of  interdict  upon  the  pro- 
ductions of  the  soil  or  industry  of  the  other  which  come  into 
competition  with  its  own  ;  and  will  present  encouragement  and 
even  bounty  to  the  raw  material  of  the  other  state  which  it 
cannot  produce  itself,  bnt  which  is  essential  for  the  use  of  its 
manufacturers,  competitors  in  the  markets  of  the  world  with 
those  of  its  commercial  rival.  Such  is  the  commercial  legisla- 
tion of  Great  Britain  as  it  bears  on  our  interests.  It  excludes 
with  interdictory  duties  all  importation  (except  in  time  of  ap- 
proaching famine)  of  the  great  staples  of  our  middle  and 
western  states ;  it  proscribes  with  equal  rigour  bulkier  lumber 
and  live  stock  of  the  same  portion  (of  the  country),  and  also  of 
the  northern  and  eastern  parts  of  our  Union.  It  refuses 
even  the  rice  of  the  south,  unless  aggravated  with  a  charge  of 
duty  upon  the  northern  carrier  who  brings  it  to  them.  But 
the  cotton,  indispensable  to  their  looms,  they  will  receive 
almost  duty  free,  and  weave  it  into  a  fabric  for  our  own  wear, 
to  the  destruction  of  our  own  manufactures,  which  they  are 
able  thus  to  undersell.*' 


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Historic  Outlines  of  American  Finance.  13 

He  enforced  the  principles  of  protection  in  these  terms  :^ 
"  Is  the  self-protecting  energy  of  this  nation  so  helpless  that 
there  exists  in  the  political  institutions  of  our  country  no  power 
to  counteract  the  bias  of  this  foreign  legislation  ?  That  the 
jrrovers  of  grain  must  submit  to  this  exclusion  from  the  foreign 
mLirkets  of  their  produce — that  the  shippers  must  dismantle 
their  ships — the  trade  of  the  north  stagnate  at  their  wharves, 
and  the  manufacturers  starve  at  their  looms — while  the  people 
]>ay  tribute  to  foreign  industry  to  be  clad  in  a  foreign  garb  ? 
That  the  congress  of  the  Union  are  impotent  to  restore  the 
balance  in  favour  of  native  industry,  destroyed  by  the  statutes 
of  another  realm  V 

Mr.  Adams  then  referred  to  the  hostility  evinced  by  various 
parties  in  America  against  that  measure  of  protective  policy 
which  had  been  enforced.  "  The  tariff,"  he  said,  "  of  the  last 
sert^iion  was,  in  its  details,  not  acceptable  to  the  great  interests 
of  any  portion  of  the  Union,  not  even  to  the  interest  it  was 
specially  intended  to  subserve.  Its  object  was  to  balance  the 
burdens  on  industry  imposed  by  the  operation  of  foreign  laws, 
but  not  to  aggravate  the  burden  upon  one  section  of  the  Union 
by  the  relief  afforded  to  another." 
'  That  such  was  the  intention  there  can  be  no  doubt,  but  to 
tarry  it  into  practice  was  the  difficulty.  Mr.  Adams  expressed 
a  hope  that  the  principle  of  the  late  Tariff  Act  would  be  main- 
tained, remarking  at  the  same  time  that  if  it  could  be  sho\\Ti 
that  the  import  duties  imposed  by  it  only  relieved  the  manu- 
facturers by  aggravating  the.  burdens  of  the  planters,  its  pro- 
visions might  be  carefully  revised  so  as  to  hold  the  balance 
even  between  all  classes.  To  reconcile  the  conflicting  interests 
which  had  grown  up  with  time  and  changed  circumf^tances, 
under  the  strictly  limited  views  of  buying  in  the  cheapest  and 
selling  in  the  dearest  market,  was  not  within  the  power  of  states- 
manship. The  manufacturers  desired  protection  to  the  extreme 
point  of  absolute  prohibition,  and  to  them  free-trade  was  a  mere 
hj-pocritical  phrase  really  masking  an  industrial  invasion.  On 
the  other  hand  the  plantation  states,  not  being  producers  of 
manufactures  but  simply  consumers  of  them,  championed  the 
principle  of  unrestricted  commerce,  being  the  sellers  of  a  raw 
materml  not  exposed  to  competition  ;  they  wished  to  carry  their 
cotton  to  England  at  the  lowest  freight,  instead  of  paying  the 
higher  freight  demanded  by  the  shipowners  of  the  eastern 
states  ;  and  for  the  same  reason  they  preferred  the  cheap  fabrics 
of  Lancashire  and  Yorkshire  to  the  costlier  ones  of  Massachu- 
aetts  and  Pennsylvania.    Both  parties  were  influenced  by  the 


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14  Historic  Outlines  of  American  Finance. 

selfishness  of  sectional  interests^  ignoring  the  claims  of  nation- 
ality,  and  both  were  arraying  states  rights  against  the  rights 
of  the  federation  to  which  they  all  belonged.  Each  separate 
section  that  adopted  these  views  acted  on  the  narrow  maxim 
inspired  by  egotism,  "  I  care  not  who  sinks,  provided  I  swim." 
Secession,  or  a  dissolution  of  the  Union,  was  an  intelligible  prin- 
ciple, and  where  antagonism  was  utterly  irreconcilable,  it  was  a 
rational  policy,  for  a  federation  in  which  the  constituent  numbers 
|u-e  in  constant  discord,  is  a  contradiction  in  terms  and  in  sense. 

The  legislative  session  had  been  so  disgraced  by  party  bicker- 
ings, arising  almost  to  personal  violence  in  some  cases,  that 
Mr.  Adams  deemed  it  advisable,  in  a  message  addressed  to  both 
Houses,  to  call  special  attention  to  the  paramount  rights  of  con- 
gress in  relation  to  the  rights  of  the  separate  states.  It  con- 
tained the  following  remarks ; — 

^^The  United  States  of  America,  and  the  people  of  every 
state  of  which  they  are  composed,  are  each  of  them  sovereign 
powers.  The  legislative  authority  of  the  whole  is  exercised  by 
congress  under  authority  granted  by  them  in  the  common  con- 
stitution. The  legislative  power  in  each  state  is  exercised  by 
assemblies  deriving  their  authority  from  the  constitution  of  that 
state.  Each  is  sovereign  within  its  own  province.  The  distri- 
bution of  power  between  them  presupposes  that  these  authorities 
will  move  in  harmony  with  each  other.  The  members  of  the 
state  and  general  government  are  all  under  oath  to  support 
both,  and  allegiance  is  due  to  the  one  and  to  the  other.  The 
case  of  a  conflict  between  these  two  has  not  been  supposed,  nor 
has  any  provision  been  made  for  it  in  our  constitution,  as  a 
virtuous  nation  of  ancient  times  existed  more  than  five  cen- 
turies without  a  law  for  the  punishment  of  parricide.  More 
than  once,  however,  in  the  progress  of  our  history,  have  the 
people  and  the  le^lature  of  one  or  more  states,  in  moments  of 
excitement,  been  instigated  to  this  conflict ;  and  the  means  of 
eflecting  this  impulse  have  been  allegations  that  the  acts  of 
congress  to  be  resisted  were  unconstitutional.  The  people  of 
no  one  state  have  ever  delegated  to  the  legislature  the  power  of 
pronouncing  an  act  of  congress  unconstitutional,  but  they  have 
delegated  to  them  powers  by  the  exercise  of  which  the  execu- 
tion of  the  laws  of  congress  within  the  state  mav  be  resisted. 
Xi  we  suppose  the  case  of  such  conflicting  legislation  sustained 
by  the  corresponding  executive  and  judicial  authorities,  pa- 
triotism and  philanthropy  turn  their  eyes  from  the  condition  in 
which  the  parties  would  be  placed  and  from  that  of  the  people 
of  both  who  must  be  its  victims." 


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By  the  Bank.  15 

This  conflict  which  Mr.  Adams  foresaw  and  lamented  arose 
during  the  administration  of  his  immediate  successor.  Presi- 
dent Cr^ieral  Jacksoiiy  when  South  Carolina  arrayed  its  militia 
against  the  laws  of  congress  and  menaced  war  on  the  federa- 
tm,  which  (jreneral  Jackson  averted  by  the  vigour  of  his  policy. 
The  rule  of  Jackson  forms  a  very  distinctive  epoch  in  American 
history  ;  in  one  sense  it  was  revolutionary,  in  all  senses  it  was 
mo^  c^lamitons  :  but  to  understand  its  character  ai^d  spirit,  its 
antecedents  must  be  studied  imder  the  various  forms  of  in- 
dustry, tariffs,  manufactures,  and  banking. 

{To  he  continued.) 


BY  THE  BANK. 

1  VEBT  much  doubt  if  the  mulium  in  pwrvo  system  be  carried  in 

any  oth^r  city  in  the  world  to  such  an  extent  as  it  is  in  London. 

Great  and  straggling  as  our  modem  Babylon  is,  there  are  certain 

&puts  in  which  a  man  might  pitch  his  tent  and  find  within  something 

like  a  stone's  throw  of  him  nearly  everything  he  needed  in  life.     By 

merely  crossing  over  the  street  on  his  right,  or  the  one  on  his  left,  he 

ooold  absolutely  satisfy  all^  or  almost  all,  his  mental  and  physical 

wants,  barring,   perhaps,  hLs  craving  for  fresh  air.     Of  all  places  in 

Lcmdon,  by  the  Bank  is  the  one  where  the  powers  of  squeezing  much 

into  little  has  been  most  successfully  accomi)lished.      Some  might 

think  it  a  hardship,  but  I  most  solemnly  aver  that  nothing  could  be 

more  satia&ctory  to  my  feelings  than  a  moderate  competency,  and  a 

waterproof  hut,  at  the  foot  of  the  Wellington  statue  in  front  of  the 

Boy&l  Exchange,  the  said  statue  to  come  between  my  majesty  and 

the  east  wind.    To  your  imaginative  poet  this  doubtless  seems  the  wish 

of  a  msflTnan,  but  your  good,  sharp,  practical  man  will  applaud  me 

fixT  it,  and  think  that,   next  to  himself,  I  am  about  the  most  clever 

person  in  existence.     What  would  a  country  mansion  in  the  midst  of 

a  large  park  be  to  my  compact  hutment  in  the  very  centre  of  the 

most  civilized  city  on  the  &oe  of  the  earth  1     Simply  a  lodging  in  a 

howling  waste,  whilst  mine— but  let  me  explain  the  advantages  of 

my  retreat,  and  in  order  to  do  so  in  the  most  convincing  manner, 

imagine  me  located  there. 

Imprimis,  I  have  just  risen,  after  a  refreshing  night's  sleep,  into 
viiicfa  I  was  lulled  by  the  rumbling  of  vehicles  and  the  monotonous 
tread  of  dtj  policeman  1001.  I  enjoy  my  bath,  dress  in  a  leisurely 
maimer,  throw  open  my  door,  and  stepping  out,  am  at  once  in  the 
very  midst  of  business  life.  There  have  been  no  vexatious  delays,  no 
waiting  for  breakfast,  no  delay  about  boots,  no  loitering  omnibus 
vasdng  precious  minutes,  nothing  to  distiu'b  my  equanimity.  The 
moment  I  am  out  of  doors  my  favourite  member  of  the  shoe  brigade 


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16  By  tU  Bank. 

pounces  upon  ray  feet,  and  beginning  at  my  upper  leathers,  in  a  few 
minutes  has  given  them  a    polish  which  would    throw  Day   into 
ecstacies  and  drive  Martin  wild  with  joy.     Whilst  the  operation  is 
proceeding,  half  a  dozen  urchins  offer  me  a  choice  of  penny  papers, 
and  I  have  the  news,  so  to  speak,  fresh  and  hot  as  new  rolls.  Before  I 
breakfast  I  am  "  up  "  in  all  matters,  have  the  closing  price  of  Con- 
sols, and  notice  with  delight  that  my  pet  comi)any  the  Otranto  Grand 
Junction   Interfinancial     Association  (Limited)   has  moved  from    \ 
discount  to  par !     And  while  I  am  calmly  reading  this  satisfactory 
intelligence.  City  people  are  hunying  past  me  in  hot,  imcomfortable 
haste,  to  get  to  their  offices  in  good  time.    How  they  must  envy  me 
my  retreat  !     Now  my  boots  are  done,  and  I  may  think  of  breakfast ; 
but  fii-st  let  me  look  around  and  reflect.     What  a  superb  situation  ; 
before  me  is  the  Poultry,  alive  with  loaded  vehicles  and  foot  passen- 
gers.    On  my  left  I  have  the  Mansion  House,  reminding  me  of  the 
municipal  privileges  of  the  City  and  the  even-handed  justice  with 
which  our  criminal  laws  are  administered.     On  the  right  is  the  Bank 
of  England,  suggestive  of  wealth,  and  of  that  vast  national  debt  which 
England  bears  on  the  whole  in  a  remarkably  cheerful  manner.     At 
my  back  is  the  Royal   Exchange,    recalling  those  richly  freighted 
argosies  that  are  ever  sailing  from  and  to  our  ports.     In  the  Quad- 
rangle is  the  statue  of  the  Queen,  calling  to  mind  our  constitutional 
monarchy  ;  and  throwing  its  shadow  over  me  is  the  effigy  of  Welling- 
ton, speaking  very  forcibly  of  our  military  greatness.     Then   if  I 
look  up  Prince's  Street,  is  there  not  in  the  shajje  of  the  Union  Bank 
a  reminder  of  our  commercial  enterprise  and  greatness  ;  and  further 
still,  have  I  not  my  little  bit  of  country,  my  trees,  which  in  the  spring 
at  least  delicately  hint  at  the  beauties  of  English  landscape.     Why, 
where  could  a  more  suggestive  spot  be  found  than  that  on  which  I 
am  standing] — justice,  civic  greatness,  national  greatness,  war,  com- 
merce, navigation,  and  constitutional  government.     It  is  true  that 
Parliament  is  not  represented,  but  then  have  I  not  in  the  session  a 
newspaper  filled  with  reports  of  debates,  and  when  the  house  is  up 
have  I  not  "  extra  parliamentary  utterances  "  by  the  yard  ] 

Breakfast  !  Nothing  easier  j  four  doors  up  Lombard  Street  I  can, 
without  the  trouble  of  making  it,  procure  strong  Bohea,  or  a  fragrant 
cup  of  Mocha,  with  roll  and  butter  and  a  couple  of  slices  of  delicate 
ham,  in  which  there  is  just  the  admirable  balance  of  marrow-like  isX 
with  succulent  lean  \  and  have  I  not  also  more  newspapers,  with  a 
choice  of  comic  periodicals  by  way  of  salt  to  the  solid  meat  1  W^ith 
just  the  trouble  of  crossing  the  road  my  morning  repast  has  been  pro- 
cured, and  now  I  am  ready  for  the  work  of  the  day.  I  have  imagined 
that  I  have  a  small  competency  :  I  will  further  imagine  that,  like  the 
rest  of  the  world,  I  do  not  agree  with  Dr.  Watts,  that  "  Man  wants 
but  little  here  below,"  but  rather  that  he  wants  that  little  more, 
hence  I  wend  my  way  to  the  Stock  Exchange.  Wend  my  way,  do  I 
say,    why,    is  not  that  very  centre   of  the    world's  lottery  at  the 


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By  the  Bank.  17 

Teiy  tLre^hold  of  my  door  ]  Certainly  it  ia ;  and  here  I  am  in  the 
Kil*-l  and  "  O trail tos  "  have  risen,  and  I  have  made  my  little  more. 
Slull  I  not  let  my  brother  in  the  country  ht^ve  a  chance  in  the  "  good 
tiling  ? "  Certainly  I  >vill.  Another  step  or  two  and  I  am  in  the  tele- 
graph office,  and  able  to  flash  a  messiige  north,  south,  east,  or  west. 

3Iy  mev^age  sent,   I  recollect  that  land  in  the  neighbourhood  of 
London  is  rising  rapidly  in  value,  and  I  have  a  few  hundreds  to  spare  ; 
^Lall   I  try  the  s3>eculation  1     Certainly  ;  and  I  have  only  to  cross 
Comhill,  and  there    is  Garraway's  ; — every   facility,  you  see,  gentle 
reader,  is  at  hand  ;  and  as  1  cross  to  and  fro  I  see  my  respectable 
cliarwoman  "  tidying  "  up  my  mansion.     Back  again  to  the  Stock 
Exchajige  ;  another  bit  of  luck,  and  the  cheque  in  my  pocket.    What 
thidl  I  do  with  it ']      Have  I  not  every  kind  of  bank  at  baud  to  lodge 
it  in  \     There  is  the  Bank  of  England,  apropos  of  which,  you  see,  I 
have  only  to  step  over  the  way  on  dividend  days  \  then  there  are  the 
ji»iijt  st^jck  banks,  then  there  are  the  private  banks,  and,  finally,  the 
Umitetl  liability  banks.     There  they  all  are — but  what  is  that  tug  at 
my  pocket ;  a  young  gentleman  is  attempting  to  seize  my  handkerchief, 
but  I  seize  him  instead  ;  a  crowd  collects  j  a  brass-lettered  policeman 
comes  np,  and,  of  course,  the  Mansion  House  is  only  over  the  way  : 
in  half  an  hour  justice  is  appeased,  the  juvenile  offender,  as  the  re- 
porters caU  a  young  thief,  has  been  sentenced  to  fourteen  days,  and  I 
am  at  home,  quietly  writing  a  letter.     That  done,  two  minutes  takes 
me  to  the  post  office,   and  then  I  confess  I  am  again  hungry.     Have 
I  any  difficulty  in  finding  a  luncheon-house  1     None  :  is  there  not 
Birch'ft,  where  mock  turtle  and  cold  punch  can  be  procured,  the  best 
in  the  world  ?  Thither  I  will  go,  and  as  I  sit  at  a  window  on  the  fii-st 
floor  I  gee  my  charwoman  carefully  lock  my  front  door  and  then  dis-' 
aippear  into  the  vortex  of  life  that  is  whirling  madly  along  on  every 
fiide  that  I  gaze. 

Rt^freshed,  I  once  more  sally  forth,  and  it  recurs  to  me  that  a  vessel 

in  which  I  had  a  little  venture  may  have  come  to  grief  during  the 

\^t^  fiightfdl  cyclone  at  Calcutta.     I  would  then  satisfy  my  mind  on 

that  point,  and  before  I  can  say  "  presto  "  I  am  at  Lloyd's,  and  in 

three  minutes  I  have   been  assured  that  my  fears  were  groundless. 

Another  hour    or    two   amongst   operators  and   I   am   in  'Change, 

and  can  see  the  back  of  my  hut,  cut  in  two  by  the  Wellington  statue. 

The  hum  of  voices  increases,  the  people  who  always  sit  on  the  l)enches 

in  the  quadrangle  try  to  look  as  if  they,  too,  were  taking  part  in  the 

din.    As  I  move  about  I  am  brought  lace  to  face  with  men  who  are 

the  Berbies,  Palmerstons,    DisraeUes,  Stanleys,  and  Gladstones   of 

tie  cominercial  worlcL      The  excitement  increases,  the  bell  rings,  the 

mii  e&tes  close,  there  is  a  movement  amongst  the  loungers,  followed 

by  one  amongst  the  busy  crowd,  and  at  length  there  is  an  outpouring 

of  the  multitude  and  I  ^^^  ^^  home,  with  half  a  dozen  letters  to  write 

to  conclude  my  day's  work.    You  see,  without  moving  away  from  my 

hut  an  eiifhth  of  a  mil®  my  business  wants  have  been  satisfied. 


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18  By  the  Bank. 

By  half-past  four  or  fire  I  am  a  free  man.  Le  Rai  iamust^  and 
there  is  no  dearth  of  amusement,  especially  as  when  work  is  over  one 
looks  at  the  same  things  with  very  different  spectacles.  In  the  morn- 
ing I  regard  the  Bank  and  the  Boyal  Exchange  from  a  commercial 
point  of  view;  in  the  afternoon  I  am  somewhat  of  an  art  connoiseur, 
and  I  cannot  help  wishing  that  Palladio's  design  for  the  Mansion 
Hoase  had  been  adopted  rather  than  Dance's ;  that  some  other  sculptor 
than  Lough  had  been  employed  to  produce  a  statue  of  the  Queen  for 
the  E-oyal  Exchange ;  that  Sir  John  Soane  had  not  put  so  much  orna- 
mentation on  the  Bank;  and  that  the  Duke  of  Wellington  at  the  back 
of  my  hut  had  a  pair  of  stirrups  to  his  saddle  1  Cornhill  is  my  Bond 
Street,  and  as  I  leisurely  wsdk  up  it  I  have  enough  and  more  thaii 
enough  to  satisfy  my  curiosity.  But  stop — I  had  intended  to  insure 
myhut^  and  there  Ls  the  Globe  Office  staring  me  in  the  face,  and  re- 
minding me  of  my  forgetfulness,  to-morrow  I  will  remedy  my  neglect. 
Now  what  do  I  want  1  Clothes  1  Yes  ;  well  Cornhill  has  a  tailor's 
shop.  Books  %  Effingham  Wilson,  and  Smith  Elder  and  Co.,  will 
supply  them,  and  I  doubt  not  publish  my  forthcoming  pamphlet  on 
the  currency  question.  Pictures  1  At  Leggatt's  I  can  procure  them, 
and  at  the  same  time  does  he  not  fiimish  me  with  an  art  exhibition  for 
nothing  ?  Watches  or  jewellery  1  Legion  is  the  name  of  jewellers  on 
Cornhill.  Do  my  friends  desire  to  present  me  with  a  service  of  plate  1 
I  will  select  it  for  myself  at  Savory's.  Cigars,  tobacco,  and  pipes ; 
wines,  beer  and  spirits  %  Cornhill  and  Birchin  Lane  will  supply  them. 
An  outfit  for  any  part  of  the  world,  or  a  imiform  for  the  City  Rifles  % 
Silver  and  Co.  are  the  men.  Dressing  cases,  writing  desks,  and  knick- 
knacks  in  general  1  They  are  all  to  be  procured  in  my  Bond  Street, 
to  say  nothing  of  hats,  boots,  umbrellas,  whips,  sticks,  wedding  break- 
fasts and  ball  suppers.  I  can  get  them  all,  and  if  in  all  the  shop  win- 
dows I  cannot  find  amusement  to  while  away  the  time  to  my  dinner 
hour  I  must  be  hlcLse  indeed. 

When  I  come  to  dinner  I  have  a  choice  indeed  of  "  Where  to 
dine  ?"  Within  a  few  hundred  yards  of  my  hut  I  can  get  the  best 
cooked  chops  and  steaks  in  the  eating  world,  and  there  are  houses 
where  joints  are  served  fit  for  th^  table  of  Lucullus ;  and  we  can,  too, 
in  Cornhill  procxu-e  a  dinner  of  French  "  kickshaws"  that  shall  not  be 
unworthy  of  the  chef  of  the  Maison  Doree.  But  before  I  dine  let 
me  not  forget  my  military  spectacle.  I  have  feveiy  evening  a  "  hint" 
of  the  pomp  and  majesty  of  glorious  war  in  the  shape  of  the  night 
guard  for  the  Bank  of  England.  True,  the  procession  is  not  very  im- 
posing, but  what  there  is  of  it  is  satis&ctory,  and  it  is  pleasant  to  be 
allowed  to  get  a  peep  of  a  luxury  that  we  have  to  pay  for.  So  back 
again  to  the  hut.  "  Here  they  come — ^they  march  splendidly  " — "  here 
they  are  " — "  the  officer  is  a  good-looking  fellow  " — "  there  they  go  ** 
— **  that  sergeant  is  over  six  feet."  "  Now  they  have  gone.*'  **  Very, 
gratifying,  isn't  it  1 " — and  so  to  dinner. 

But,  exclaims  my  Lord  Dundreary,  you  haven't  any  clwubs  ?  I  beg 


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Indian  Currency.  19 

Toorpardoiiy  but  1  iieas  just  thinking  about  dining  at  mj  club — the 
G«!ifeain,  only  a  fe^w  paces  from  my  front  door.  A  cosy,  Buug  club, 
^th  a  good  cook,  and  a  cellar  of  wine  that  tlie  Reform  would  be  glad 
o£  So  you  see  you  are  wrong.  I  dine  at  my  club  qidetly  and 
Serenely,  thankful  for  a  good,  well-dressed  meal,  and  retire  to  the 
smoking-room  with  those  benevolent  feelings  in  my  breast  which  at« 
t€nd  on  good  digestion  !  I  smoke  awhile  and  then  stroll  out  to  look 
at  mj  &Tounte  spot  sinking  to  slumber  after  its  hard  day's  work  ;  but 
my  reverie  is  broken  in  upon  by  Smith,  who  proposes  billiards,  and  in 
a  couple  of  minutes  we  are  at  Stebbing*s,  and  over  our  game  partake 
of  aonae  most  excellent  coffee  and  an  equally  excellent  anchovy  toast. 
Billiarda  finished,  I  am  instantly  at  home,  and  as  I  turn  my  back  upon 
the  world  I  am  thankful  there  is  a  fire  escape  close  to  me.  I  should 
not  need  it  certainly,  but  I  feel  sure  that  i^  through  my  bad  habit  of 
smddng  in  bed,  my  hut  caught  fire,  the  man  in  charge  of  the  machine 
would  chop  my  abode  to  pieces  before  I  was  quite  suffocated,  and  so 
— Good  night ! 

"  Stop,  stop  !"  exclaims  my  reader,  "  where's  your  lawyer  1  You 
can't  do  without  that  necessary  eviL"  "  If  you  will  do  me  the  fiivour 
to  step  outside  and  look  up  Princes  Street  you  will  see,  just  at  the 
comer  where  the  moonlight  is  streaming,  a  large  stone  house,  that  is 
the  office  of  one  of  the  most  eminent  solicitors  in  London-"  "  Oh, 
indeed;  well,  then,  suppose  your  affairs  get  into  a  mess,  where's  your 
accountant  1"  **  You  can't  see  the  house,  but  at  the  opjxwite  comer, 
in  Moorgate  Street,  there  happens  to  be  an  accountant.''  "  Ah  !  well 
then,  Where's  your  church  1"  "  There  are  three  close  at  hand  !" 
•  Oh  !  well,  now  I  have  you — ^where's  your  linendraper  V*  ^y  dear 
Sir,  I  am  a  single  man,  but  if  I  were  married,  do  you  suppose  I  should 
allow  my  wife  to  live  in  the  midst  of  so  many  tempting  ^ops  1  Cer- 
tainly not.  When  I  turn  Benedict,  I  shall  live  in  the  coimtiy  at 
some  distance  firom  a  town,  and  not  within  four  miles  of  a  railway 
station  ?  Now  are  you  satisfied?"  "  Pretty  welL"  "  Then,  again 
I  wish  you  good  nighty  and  I  think  I  may  £urly  conclude  I  have 
established  my  claim  to  have  *  By  the  Bank'  regarded  as  one  of  the 
most  comfortable  spots  for  a  bachelor  to  reside  in — ^mind,  I  said  a 
baehehr.     Good  night !" 


INDIAN  CUKBENCY  * 
At  the  commencement   of  the  present  year,  the  fiombay  Chamber 
of  Commeroe  presented  a  memorial  to  the  Govemor-Greneral  of  India 
in  Coancal,  requesting  him  to  introduce  a  well  regulated  gold  currer.cy 
into  our  eastern  empire.     This  they  urged  on  the  ground  thiit  sil .  it 


*  On  the  Gold  Carreocy  for  India.  By  Lientenant-General  Sir  W.  R.  Mansfield^ 
K.G.B.     London :  John  Murray,  Albemarle  Street,  1864. 

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20  Indian  Currency. 

was  no  longer  adequate  for  the  circulation  of  commodities  which,  of 
recent  years,  had  prodigiously  increased  among  the  swarming  popula- 
tion of  Hindostan.     It  was  stated,  that  within  the  last  ten  years,  the 
trade  of  Bombay  had  been  trebled,   while  the   exports  and  imports  of 
Calcutta,  Madras,  and  Bombay  amounted,  in  1863,  to  1,060  millions 
of  rupees.     The  annual  produce  of  silver   throughout  the  world  is 
computed  at  ten  millions  sterling  ;  and  the  proof  of  its  insufficiency  is 
clear  from  the  fact  that  during  the  last  six  years  the  average  annual 
imports  and  absorption  of  that  metal  in  India  alone  have  amounted  to 
eleven  and  a  half  millions  sterling,  while  in  1863  the   import  was  no 
less  than  fourteen  and  a  half  millions  sterling.     Unless  this  tendency 
to  increase  be  checked,  all  other  nations  are  threatened  with  a  drain 
of  their  silver  currency  till  absolute  exhaustion  takes  place.     It  must 
also  be   considered   that  of  late  years  general  production  has  been 
prodigiously  stimulated  in  India,  and  with  it  an  enormously  enlarged 
circulation  of  commodities* ;  therefore,  silver  must  rise  in  price  re  - 
latively  to  coramoditias  till   production  itself  is  an-ested,  unless  the 
currency  be  supplemented  by  gold  as  legal  tender.    Thoughout  India, 
silver  is  now  the  dearer  of  the  two  precious  metals  because  it   has  a 
privilege  denied  to  gold — the  privilege  of  passing  from  hand  to  hand 
as  money  of  account.     Silver  now    reiiches   India  under    the    dis- 
advantage of  having  to  travel  half  the  circumference  of  the  globe  fix>m 
Euro|je,  while,  comparatively  speaking,  Australia,  abounding  in  gold, 
is  proximate  to  her  shores  ;  and  though  it  Ls  true  that  gold  is  imported, 
yet  it  is  simply  as  commodity,  not  being  legally  recognized  as  money 
of  account.    It  is,  however,  important  to  observe  that  in  the  absence  of 
gold  coin,  the  Bombay  banks  have  stamped  gold  bars  with  their  mark, 
and  they  are  thus  circulated  by  voluntary  convention  in  several  pai-ts 
of  the  country.     This  shows,  so  far  as  it  goes,  that  gold  coin   would 
be  welcome  with  the  government  stamp,  since  gold  ingots  are  current 
as  a  rude  substitute. 

This  state  of  things  induced  Sir  W.  R  Maijsfield,  a  meritorious 
military  officer  now  serving  in  India,  and  holding  the  high  rank  of 
lieutenant-general,  to  investigate  the  subject,  which  he  has  done  with 
acuteness,  impartiality,  and  judgment,  and  what  invests  his  pamphlet 
with  peculiar  interest,  is  the  large  and  accurate  local  knowledge  of  the 
trade  of  the  country  and  of  the  inner  life  of  the  people.  He  directs 
his  argument  with  great  power  against  the  views  of  the  late  Mr. 
Wilson  when  that  gentleman  was  financial  member  of  council  at 
Calcutta,  in  1859,  in  which  year  Mr.  Wilson  published  a  minute 
condemning  a  gold  currency  for  India.  That  minute  contended  that 
a  change  from  a  silver  to  a  gold  currency  would  involve  a  breach  of 
faith  with  the  creditors  who  had  conti-acted  their  obligations  in  the 
form  of  silver.  Some  other  objections  were  raised,  but  they  were 
rather  verbal  than  substantial,  derived  from  imagination  rather  than 
founded  in  logic,  and  they  need  not  here  be  noticed.  It  is  the  "  breach- 
of-faith "  objection,  so  frequently  reproduced  at  different  periods  of 


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Indian  Currency*  21 

kgi&ktioiiy  and  a»   firequentlj  set  aside  as  worthless,  that  demands 

iSir  W.  R.  Mansfield  remarks  that  Mr»  WilsoD  anticipated  a  heavy 
£di  in  the  value  of  ^Id  from  the  discovery  of  additional  new  mines, 
to  which  fear  could  not  assign  any  limit ;  but,  as  our  author  remarks, 
**'  he  overlooked  the  corresponding  circumstance  that  silver,  if  stationary 
in  the  amoont  produced,  would  proportionally  rise.  He  thus  neglected 
to  consider  that,  as  a  means  of  appreciating  value,  silver  was,  in  ti-uth, 
as  uncertain  as  gold  ;  this  being  true,  both  with  regard  to  new  oon- 
tncts  hereafter  to  be  made^  and  to  those  of  ancient  date." 

This  alune  ought  to  be  decisive  in  the  present  stage  of  the  argu- 
ment; but  our  author  places  the  subject  in  another  form,  and 
inasts  with  force  irresistible,  that  *'  the  State  does  not,  and  cannot 
hind  itself  never  to  change  the  character  of  its  legal  tender,  or  ex- 
presaiGn  of  measure,  which  it  looks  on  as  liable  to  change  like  other 
institotioBs.''  It  has  been  shown  in  the  pages  of  this  Magasdne  that 
what  is  conventionally  called  the  ^  Standard  of  Value "  has  been 
changed  not  less  than  fourteen  times  in  the  monetary  history  of  Eng- 
land, or  about  once  in  every  fifty  years  ;  and,  with  one  exception)  the 
chao^  has  always  be^x  one  of  depreciation.  Money,  whether  composed 
of  metal  or  of  paper,  is  but  the  machineiy  of  exchange,  and  when 
governments  or  individuals  contract  debts,  they  do  not  borrow  a  com- 
modi^  of  trade  of  a  definite  weight  and  fineness,  though  that  may  be 
the  outward  sign  or  form  of  the  obligation,  but  they  borrow  a  repre* 
sentative  of  Tidue  ;  and  i^  when  they  pay  t^e  debt  they  discharge  that 
value,  the  eqtdty  of  the  contract  is  redeemed,  for  it  is  the  purchasing 
power  of  money  over  markets  that  consUtutes  its  value,  and,  of  course, 
a  fidl  in  cmnmodities  is  a  rise  of  money.  To  this  Dr.  Arnold  refers 
in  liB  History  of  Rome,  when  commenting  on  the  monetary  reform 
effected  by  Julius  Oflesar. 

•*  When  the  Dictator  Cfflsar,"  observes  Dr.  Arnold,  "  remedied  the 
evihi  arising  from  a  scarcity  of  money,  during  the  dvil  wars^  he  was 
accuaed  of  making  the  creditor  sustain  a  loss  of  nearly  twenty-five 
par  cent  ;  and  men  are  so  apt  to  regard  money  as  the  only  standard 
of  vahie,  that  this  fiseling  is  stiU  rery  general ;  and  he  who  should 
pay  his  creditor  a  less  sum  in  actual  money  than  he  had  borrowed, 
would  bethought  to  have  defrauded  him  of  his  due,  although  from  an 
increase  in  the  value  of  money  what  he  paid  might  be  fully  equal  in 
its  oommand  over  other  commodities  to  the  sum  which  he  had 
originaDy  received'' 

It  was  the  neglect  of  these  distinctions  that  led  to  the  gigantic  fraud 
cC  restoring  cash  payments  in  1819,  when  £600,000,000  lent  in  de- 
predated paper  were  deemed  the  equivalent  of  an  equal  simi  in  appre> 
cuted  gold  pounds,  the  legislature  most  erroneously  concluding  that 
Croremiuent  had  borrowed  a  special  commodity  of  trade,  instead  of  a 
enoreDtioiiaJ  lepresentative  of  valua  The  &ct  was,  that  the  paper 
hoTTowed  during  the  war,  and  funded  in  a  3  per  cent  stock  at  60,  was 

3 


roL.  xrr. 


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22  Indian  Currency. 

only  worth  ten  ounoes  of  gold,  for  which  the  lender  was  credited  twenty- 
five  ounces  when  cash  payments  were  resumed.  Here,  then,''  the  breach- 
of-&ith  argument"  led  to  the  very  injustice  it  was  intended  to  avoid  ^ 
its  implied  profession  of  regard  for  the  interests  of  the  creditor  most 
severely  and  permanently  damnified  the  debtor,  and  the  error  arose 
from  the  notion  that  when  Government  borrowed  a  pound  of  account, 
it  borrowed  a  weight  of  metaL  The  simple  question  that  ought  to 
have  been  asked  at  the  close  of  the  war  was  this :  when  the  loans 
were  being  contracted,  was  it  ever  understood  by  borrower  or  lender 
that  they  should  be  redeemed  in  money  of  double  value?  The 
answer  would  have  been  contained  in  the  very  absurdity  of  the  ques- 
tion ;  and  the  more  so  when  men  reflected  that  the  cost  of  naval  and 
military  defence  against  invasion  waa  really  more  conservative  of 
funded  than  of  any  other  property  ;  it  was  therefore  preposterous  to 
give  fundholders  who  had  received  high  interest  for  their  money  an. 
enormous  bonus  for  protecting  their  property  against  the  spoliation 
that  would  have  followed  conquest.  However,  "  the  breach-of-&ith 
argument"  was  triumphant  in  1819  j  cunning  men  put  it  forward  for 
their  own  selfish  benefit,  and  simple  men  adopted  it,  and  it  grew  into 
a  precedent,  and  has  influenced  legislation  till  our  times ;  among 
others,  Mr.  Wilson  accepted  it,  as  one  of  the  financial  dogmas  of  the 
political  party  that  had  raised  him  to  office,  and  applied  it  to  India. 

Kegarding  currency  as  a  "  machinery  of  circulation,"  Sir  W.  R. 
Man^eld  contends  ''  that  there  is  no  good  reason  why  we  should  be 
irrevocably  bound  hereafter  by  an  accidental  form  of  legal  tender 
which  happens  to  be  in  existence  now.''  It  should  also  be  con- 
sidered, though  it  rarely  enters  into  the  mind,  that  when  society  fixes 
on  a  commodity  as  the  standard  measure  of  value,  it  unconsciously 
reverts  to  a  system  of  barter,  which  it  professes  to  have  abandoned 
after  it  has  adopted  a  s}rstem  of  money.  The  essence  of  a  standard 
is  immutability,  but  every  commodity  is  liable  from  a  variety  of 
causes  to  constant  oscillations,  which,  of  courae,  negative  the  idea  of 
immutability^  and  thus  show  that  neither  of  the  precious  metals  is 
fit  for  a  standard ;  and  though  they  have  been  hitherto  so  chosen, 
they  have  proved  bat  clumsy  oontrivancea  When  men  become  wiser 
and  see  a  monetary  error,  are  they  never  to  correct  it  %  On  this  silly 
adherence  to  precedent^  our  author  remarks  in  oondemnation  of 
Mr.  Wilson's  exclusive  attachment  to  silver,  ^'  the  community  would  be 
absolutely  precluded  from  effecting  any  improvement  or  economy  in  the 
working  of  that  particular  machinery,  organised  and  maintained  by  the 
oommunity  at  its  own  charges,  for  tJie  performance  of  particular  frinc- 
tions,  which  affect  alike  the  State  and  the  individual."  It  is  certain 
t^t  of  recent  years  silver  has  become  more  and  more  costly ;  and 
With  a  tendency  to  increase  in  costliness,  the  supply  being  unequal 
to  the  increased  demand  for  that  metal  in  India  ^d  China,  the 
inevitable  consequence  is  that  all  debts  contracted  in  silver  must  in- 
crease in  pressure,  that  ia^  be  more  difficult  to  be  discharged,  although 


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Imlian  Currency,  23 

tLe  denominatioDis  of  money  be  xmchanged ;  it  is  not  the  rupee  but 
the  sil\er,  the  metal  contined  in  the  rupee,  which  becomes  more 
uxlr.  To  persist  in  Mr.  Wilson's  scheme,  this  mutation  in  values 
secredj  operating,  is  to  offer  a  premium  to  the  creditor  class,  and 
rijos  to  create  the  very  bre*u;h  of  faith  which  Mr.  Wilson's  argument 
joaght  to  avoid.  His  adherence  to  the  letter  of  the  contract  was 
hi^  mistake,  betraying  him  into  the  error  of  not  perceiving  that  all 
monetary  obligations  are  made  for  value,  not  for  the  commodity 
which  happens  at  the  time  to  be  the  conventional  legal  tender.  Be 
it  remembered  that  a  metallic  standard  must  ever  be  as  shifting  and 
ramble  as  the  metal  of  "which  the  standard  is  composed ;  for  which 
reason  the  ooin  and  the  commoditj  are  always  liable  to  come  into 
conflict,  of  which  "wo  have  almost  daily  instances  before  our  eyes  in 
London,  though  disguised  imder  the  mystic  nomenclature  of  the 
**  variation,  in  the  foreign  exchanges,"  a  phraseology  invented  to 
dt^lude  the  public  ;  the  simple  and  real  fact  being  that  the  mint 
price  of  the  coin  no  longer  accords  with  the  market  price  of  the 
ingot 

There  are  interesting  chapters  in  this  pamphlet  on  the  policy  of 
France  and  of  the  TJnited  States  substituting  a  gold  for  a  silver 
currency,  on  t-hc  discovery  of  the  new  mines,  which  checked  the  rise 
in  ^Iver,  and  prevented  the  &11  in  gold  ;  and  also  on  the  opposite 
policy  of  Holk^,  Belgium,  and  India,  all  of  which  demoralized  gold 
thrrmgk  a  fear  of  its  large  and  rapid  decline  in  value  ;  this  oiir  author 
considers  was  a  policy  of  '*  inconceivable  rashness,''  since  it  caused 
the  very  evil  it  professed  to  dread,  for  silver,  being  the  sole  legal 
tender,  or  money,  immediately  rose  in  price.  Before  the  gold  dis- 
coveries, that  metal  was  as  low  as  4*.  \\d,  per  ounce  ;  afterwards,  it 
rose  to  and  even  exceeded  58.  2d,  per  ounce.  As  gold  coin  ceased  to 
be  legal  tender  in  India,  where  the  balance  of  trade  was  heavily 
agadn«!t  Eorope,  England  wafl  constantly  parting  with  its  gold,  and 
draining  France  of  ffllver,  to  pay  its  debts  to  India^  and  this  scramble 
was  constantly  deranging  the  home-trade  of  the  two  countries.  The 
evO  still  continues,  nor  will  it  cease  tOl  a  gold  legal  tender  in  India 
lowers  the  price  of  silver  by  checking  the  demand 

One  of  Mr.  Wilson's  plans  was  to  introduce  a  paper  currency  into 

Hindostan.      This  expedient,  Sir  W.  R.  Mansfield  pronounces  in- 

jndicioos^  the  native  population  being  too  ignohmt  and  suspicious  to 

accept  anything  as  money  but  solid  substance,  thus  resembling  very 

uaany  in  England  who  denaand  something  that  '*  rings  on  the  table." 

Itt  the  iVesidency  towns  and  large  cities  on  the  sea,  bond  notes  would 

he  tkkim,  bat  would  be  worthless  for  circulation  in  the  interior.     In 

&e^  onir  a  civilized  people,  trained  in  moral  courage,  will  have  con- 

ifcfcnce  iQ  a  repi^cientative  value  ;   and  Oriental  people  insist  on  the 

mtrmsic  •  hence  their  love  of  bangles,  and  other  gold  or  silver  oma- 

meaU  canied  about  their  persons,  which  they  can  constantly  see  and 

UnA,  giving  them  th«  afisurance  of  security.     But  though  it  is  true 


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24  Indian  Currency* 

that  the  natives  would  distrust  bank-notes,  such  as  are  current  in 
tingland,  thai  is,  professedly  convertible  into  gold,  it  does  not  follow 
that  they  would  refuse  notes  of  a  different  character— of  a  character 
that  does  not.  appear  to  have  presented  itself  to  bhe  mind  of  either 
Mr.  Wilson  or  of  Sir  W.  R.  Mansfield.  Suppose  that  Government, 
as  proptietor  of  the  soil  of  India,  issued  its  own  notes  in  payment  of 
the  troops,  and  promised  to  tak^  them  back  for  the  rent  of  land, 
which  constitutes  the  chief  revenue,  would  the  natives  distrust  a 
currency  so  accredited,  so  firmly  guaranteed  1  We  think  not ;  at 
any  rate,  we  think  it  would  be  wise  to  give  publicity  to  such  a 
financial  instrument,  for  if  it  disarmed  suspicion  and  became  current 
it  would  greatly  diminish  the  dependence  of  the  public  on  gold  and 
silver. 

On  introducing  a  gold  coinage  into  India,  Sir  W.  K.  Mansfield 
would  i^tain  the  rupee  as  the  nominal  unit  of  account  in  which  men 
reckon,  whether  its  value  were  expressed  in  gold  or  in  silver,  as  the 
franc  has  been  preserved  in  France  and  the  dollar  in  the  United 
States  ;  and  he  thinks  that  '^  gold  coins,  struck  for  the  purpose  of 
domestic  exchange,  should  be  multiples  of  the  rupee  as  laid  down  in 
in  the  Act  of  1835." 

The  main  principle  contended  for  in  this  able  painphlet,  which  may 
be  pertised  with  profit  by  all  financial  students,  is  the  necessity  of 
apportioning  money  to  the  goods  which  money  circulate^  ;  and  since 
silver  is  inadequate  to  the  task  in  the  present  industrial  states  of 
India,  gold  is  recommended  to  remove  the  present  deficiency  of  circu- 
lating medium.  A  truth  of  the  gravest  importance  is  also  inculcated, 
namely,  that  debt  is  not  a  contract  for  a  commodity  but  for  value  ; 
and  had  that  truth  been  perceived  and  acted  upon  since  1797,  JSngland 
would  have  escaped  a  mass  of  evil  which  is  incalculable.  The 
]>ractical  pressure  of  the  national  debt  and  of  all  private  mortgages 
would  not  have  been  doubled  by  the  Act  of  1819.  Since  silver  is 
rising  in  India,  and  must  continue  to  rise  more  and  more  if  it  remain 
the  sole  legal  tender  in  discharge  of 'debt,  every  debtor  must  hence- 
forth give  more  and  more  labour  to  buy  the  silver  at  which  alone  his 
debt  can  be  discharged.  This  is  the  result  of  regarding  the  contract 
of  debt  as  a  contract  to  replace  a  commodity,  without  considering 
whether  in  the  course  of  time  that  commodity  become  more  difficult 
of  acquisition ;  this  is  an  unjust  advantage  to  the  creditor  for  which 
he  never  bargained,  and  a  cruel  plunder  of  the  debtor — an  evil  that 
would  be  avoided  if  debt  were  treated  as  a  contract  for  value.  This 
is  a  principle  long  contended  for  in  the  pages  of  this  Magazine,  and  it 
is  gratifying  to  know  that  it  has  received  the  support  of  a  writer  so 
acute  and  logical  as  Lieut. -General  Sir  W.  R.  Mansfield 


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25 


Sanfifng  anH  Comtmrdal  latot 

sgscuBTrrKs  -.  pebsokal  estate  of  harried  woman  in 

OOTIRT;    8AI;E    OR   DEPOSIT   OF   CHATTELS;   IMPLIED 
VAKBANTY  ON. 

It  is  of  ccnuree  well  known  that  in  law  money  given  by  will  or 
Aeed  to.  or  oiiherwise  belonging  to  a  married  woman,  passes  to 
the  hnflDand  Juri  maritiy  that  is,  wheneyer  it  is  reduced  into 
possession  by  the  liasband.  Bat  if  it  is  a  fond  standi^g  in  the 
Coort  of  Ghanoeiyy  that  Court  exercises  a  right  not  to  permit 
the  husband  to  take  the  fund,  or  any  part  of  it,  until  he  has 
made  what  ib  in  the  opinion  of  the  Court  an  adequate  settle- 
ment on  hiB  wife  and  children ;  and  it  is  in  the  absolute  dis- 
cretion of  the  Court  to  make  such  settlement  of  the  whole  or 
of  any  part  of  the  fund.  In  exercising  that.discretion,  the  Court 
is  guided  by  the  circumstances,  such  as,  whether  there  is 
alrrady  any  reasonable  provision  for  the  wife  and  children,  the 
eonduct  of  the  husband,  or  other  circumstance^  affecting  the 
welfare  of  the  wife  and  children,  regardless  of  any  rights  or 
claims  of  assignees  of  the  husband.  An  assignment,  therefore, 
bv  the  husband  of  any  portion  of  a  fund  in  Court  belonging  to 
his  wife  is,  in  general,  a  very  unsafe  security.  This  appears  in 
a  strong  light  by  a  case  of  £[e(Uh  v.  Lewis  (5  New  Bep.,  p,  32), 
lliere  a  fond  m  Court  was  carried  over  to  the  account  of 
Mr.  and  Mrs.  Johnson,  then  residing  ai  the  Cape  of  Gh>od 
Hope.  In  1856  Mr.  Johnson  came  to  England,  and  by  virtue 
of  a  power  of  attorney  executed  by  his  wife,  borrowed  £100  on 
the  security  of  the  ftmd,  of  course  assigning  it. 

What  the  wife's  power  of  attorney  had  to  do  with  the 
alienation  we  do  not  understand,  as  a  married  woman  cannot 
ToakR  any  deed  effectual  to  aliei^ate  any  ri^ht  she  may  have  to 
personal  property.    However,  that  was  one  of  the  facts  of  the 


After  the  assignment  the  husband  petitioned  for  payment  to 
the  assignee,  and  for  a  settlement  of  a  moiety  of  the  residue  of 
the  fond  on  his  wife  and  children,  and  payment  of  the  residue 
to  himself.  The  wife  comiter-petitioned  K>r  a  settlement  of  the 
whole  before  any  settlement  was  directed.  Mr.  Johnson  became 
insolvent,  returned  to  the  Cape,  and  there  obtained  a  divorce 
from  his  wife.  Here  was  a  question  as  to  doiuicil|  which  is  im- 
material for  the  present  piirpose. 

Mrs.  Johnson  after  the  divorce,  which  the  Court  held  valid. 


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26  Banking  and  Commercial  Law. 

petitioned  for  Bettlement  of  the  whole  fund,  and  the  Court 
held  that  she  was  so  entitled ;  that  as  she  was  entitled  to  the 
whole  fund  subject  to  the  marital  right,  that  right  being  gone 
by  the  divorce,  and  the  assignment  being  in  the  opinion  of  the 
Court  no  reduction  into  possession,  the  whole  fund  was  to  be 
settled  on  the  wife  and  children,  to  the  exclusion  of  the 
assignee. 

A  delivery  of  goods  coming  under  the  legal  designation  of 
chattels  upon  sale,  and  a  delivery  of  goods  by  way  of  deposit 
upon  an  advance  of  money,  fall  under  the  same  principle  ;  and, 
therefore,  the  case  we  are  about  to  cite  is  important  to  holder^ 
of  chattels  as  securities,  as  well  as  to  purchasers. 

Upon  this  subject  we  may,  by  way  of  preliminary  observation, 
say  that  in  general  where  a  shopkeeper  sells  or  offers  to  sell 
goods,  it  has  been  held  in  some  cases  that  that  is  evidence  of 
his  selling  as  owner,  and  he  therefore  enters  into  an  implied 
warranty  for  title,  Ryall  v.  Rowles  (1  Ves.  sen.,  348) ;  and 
again,  it  a  shopkeeper  sells  goods  in  his  shop,  he  sells  as  his 
own,  and  warrai^ts  title,  Morley  y.  AUenbarough  (3  Exch ,  500. 
But  Springtcell  v.  Allen  (2  Earl,  448  n.),  and  see  "  Broom's 
Maxims,*'  768  (4th  edit.),  nem,  contra. 

In  Eichholg  v.  Bannister  (5  New  Rep.  87J  the  case  was  this  : 
The  plaintiff  bought  of  Bannister  the  defendant  a  lot  of  prints, 
and  paid  for  them  at  Bannister's  shop.  The  defendant  sent  the 
goods  to  the  plaintiff,  with  the  usual  tradesman's  invoice.  A 
few  days  afterwards,  the  plaintiff  found  that  the  goods  had 
been  stolen,  and  he  returned  them  to  the  rightful  owner,  and 
brought  his  action  for  the  price  against  the  defendant.  Yerdiet 
for  the  plaintiff.  A  rulei  was  then  obtained  to  set  aside  the 
verdict,  and  enter  a  verdict  for  the  defendant,  on  the  ground 
that  there  w;a8  no  warranty  of  title.  On  the  plaintiff^s  side, 
it  was  argued  that  there  was  an  implied  warranty  of  title,  and 
a  failure  of  consideration ;  that  ia,  that  as  the  goods  were  not  the 
defendant's,  he  sold  nothing.  On  the  other  side,  it  was  argued 
that  mere  sale  did  not  raise  an  implied  wan*anty;  that  there 
miist  be  something  more  on  the  nature  of  contract  or  implied 
covenant. 

But  the  Court  discharged  the  rule,  holding  that  there  was 
impl^e4  warranty,  the  vendor  having;,  by  his  conduct,  led  the 
purchaser  to,  believe  him  the  vendor  to  be  the  owner. 

We  give  the  judgment  of  Chief  Justice  Erie  in  extinso,  as  it 
is  a  valuable  exposition  of  the  law. 

He  said,  **  After  hearing  the  case  remarkably  well  argued, 
I  am  of  opinion  that  the  rule  should  be  discharged.     I  decide 


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Banking  and  Commercial  Law.  27 

tii6  case  in  accordance  with  tlie  current  of  authorities  which 
have  not  been  disputed,  iriz. :  that  if  the  vendor  by  word  savB 
that  he  is  the  owner  of  a  chattel,  or  by  his  conduct  leads  the 
Taidee  to  suppose  that  he  is,  that  is  part  of  the  contract.  The  rule 
is  90  laid  down  by  Baron  Parke,  in  the  elaborate  judgment  in 
Moriey  ▼.  Atiehborough ;  and  he  adds,  that  if  articles  are  sold 
in  a  shop  professedly  carried  on  for  the  sale  of  goods,  the  title 
to  them  is  warranted.     Here  the  shopkeeper,  by  his  conduct, 
affirms    that    persons   buying    in  his    shop,    buy   from   the 
owners,  and  the  plaintiff  buys  there;   and  if  the  defendant 
was  'not  the  owner,  a  condition  of  the  contract  is  broken,  for 
which  the  plaintiff  may  recover.' '     So  much  for  the  particular 
ease.    Mr.  Molkes  says  there  is  no  warranty  of  title  on  the  sale 
of  chattels,  and  there  is  authority  on  authority  for  that  position. 
I  adverted  to  May  one  of  the  authors  constantly  cited  on  this 
point,  and  he  says,  (page  209.)  '^  If  I  take  the  horse  of  another 
man  apd  sell  mm,  and  the  owner  takes  him  again,  I  may 
have  an   action  of  debt  for  the  money ;  for  the  bargain  was 
perfect  by  the  delivery  of  the  horse,  and  caveat  emptor ^  that 
statement    at  first  shocks  the  understanding;  but  I  take  its 
meaning  to  be,  where  I  am  in  possession  of  a  horse,  and,  with- 
out holding  myself  out  as  owner,  neither  aflBrm  nor  deny  x^j 
title  to  it,  and  if  you  choose  to  give  me  money  for  it  and  take  it 
such  as  it  is,  you  cannot,  if  it  be  reclaimed  by  a  third  person, 
recover  the  money  you  have  so  paid.     So  in  Morhy  v*  AUen- 
bcroughj  a  pawnbroker  selling  forfeited  pledges  gives  notice  to 
vendee  of  what  it  is  he  sells,  and  that  he   kpiows  nothing 
absolutely  about  the  title,  and  consequently  if  the  real  owner 
comes  forward  and  recovers  the  article,  the  pawnbroker  has  a 
right  to  keep  his  money.    So  in  Chapman  v.  Speller  the  seller 
moely  assigned  the  right  he  had  purchased  of  the  sheriff,  and 
in  Mall  v.  Conder  the  defendant  did  not  profess  to  sell  a  good 
and  indefeasible  patent  right.    But  in  alinost  all  the  transac- 
tioDs  of  sale  in  ordinary  life  the  vendor  exercising  the  highest 
right  of  dominion,  holds  himself  out  as  owner  and  leads  the 
porchaser  to  believe  that  he  is  so,  and  that  is  the  case  of  a  seller 
selling  as  his  own  ;  put  by  Blackstone,  Nay's  maxim  is  merely 
a  dictum  and  has  alwaj^  been  so  treated.     This  is  another  case 
wtich  shows  the  wisdom  of  Lord  Campbell's  remark  in  Sima^y. 
Jfarryai,  that  if  by  the  law  of  England  the  maxims  of  caneat  empior 
mpUeB  on  the  sale  of  personal  property,  the  exceptions  have 
ireli  n^h  eaten  up  the  rule.   The  result  is,  that  mere  sale,  un- 
acccHopained    by    any    circumstances,    implying    assertion  of 
aw^^dp,  does  not  give  warranty  of  title ;  but  any  material 


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28  Trade  of  the  United  Kingdom. 

cases  implying  an  assertion  of  ownership,  a  fortiori  an  actual 
assertion  of  ownership  will  give  implied  warranty  of  title,  so 
that  if  the  ownership  does  not  exist,  and  the  purchaser  is 
deprived  of  the  property  by  the  real  owner,  he  may  recover 
against  the  vendor.  Upon  the  authority  of  the  case,  there  can  be 
little  doubt,  that  if  a  tradesman — say  a  silversmith  trading  in 
selling  plate,  and  not  merely  receiving  it  in  pledge — were  to 
depositplate  with  his  banker  for  an  advance,  and  it  turned  out 
that  the  goods  were  not  his,  the  banker  could  not  recover  against 
him,  apart  from  any  other  security  or  contract  for  repayment ; 
but  if  the  tradesman  was  known  to  be  a  pledgee  or  depositee 
of  plate,  it  would,  we  apprehend,  be  otherwifie,  because  then 
there  would  not  be  clearly  implied  evidence  of  ownership,  and 
whatever  the  lender's  other  remedies  might  be,  he  cotud  not 
recover  on  implied  warranty  for  title  ** 


TRADE  OF  THE  UNITED  KINGDOM:. 

Th:^  Board  of  Trade  returns  for  the  xnonth  and  ten  months  ended  the  31st 
October  were  issued  on  the  29th  November,  but,  unlike  those  of  several 
previous  months,  present  some  rather  unfavourable  aspects.  There  is  a 
considerable  decline  in  the  value  of  our  exports,  as  compared  with  the 
same  month  of  last  year,  which  is  chiefly  to  be  ascribed  to  the  falling  off  in 
the  exportatioi^  of  cotton  yam  and  cotton  manuf aotures,  though  there  are 
many  other  articles  of  minor  importance  which  assist  to  swell  up  the 
general  total.  The  total  declared  value  of  exports  for  the  month  last  past 
is  £12,871,491,  against  £15,082,332  in  the  month  of  1863,  and  £9,846,836 
in  1862,  which  is  a  decrease  on  the  former  period  of  £2,210,841,  but  an 
increase  on  the  latter  of  £3,024,666.  For  the  ten  months  of  the  preeeat 
year  the  total  is  £136,275,662  against  £119,377,046  in  1863,  and 
£103,519,269  in  1862,  which  is  an  increase  of  £16,898,607  as  compared 
with  1863,  and  of  £32,766,383  as  contrasted  with  1862.  As  regards  ex. 
porta,  there  has  been  an  increase  in  linen  manufactures,  seed  oil,  and  silk 
manufactures,  but  a  decrease  in  alkali,  arms  and  ammunition,  beer  and 
ale,  cosds  and  culm,  cotton  yarz^,  cotton  manufactures,  haberdashery  and 
miUinery,  hardware  and  cutlery,  linen  yari^,  metals,  spirits,  wool,  woollen 
and  worsted  yam,  and  woollen  and  worsted  manufactures.  Witii  respect 
to  imports,  an  increase  is  exhibited  in  clocks  and  watches,  raw  cotton , 
petroleum,  flaxseed  and  linseed,  wool,  spirits,  unrefined  sugar,  and  wine. 
On  the  other  hand,  there  has  been  a  falling  off  in  flax,  hemp,  leather 
manufactures,  saltpetre,  raw  silk,  cocoa,  coffee,  tea,  and  tobacco.  With 
regard  to  provisions,  there  has  been  an  increase  in  every  description.  In 
the  case  of  cereals  there  has  been  an  increase  in  oats  and  peas,  but  a  falling 
off  in  wheat,  barley,  and  beans  and  wheat  meal  and  flour.  The  annexed 
tables  indicate  the  most  important  phaoges  that  have  taken  place : — 


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Trade  (^  the  United  Kingdom. 


29 


£ZF0BT8. 


Coals  and  enlm torn 

OmoQ  maimfactorea    ...  yards 

Cotton  yam       ...         ...  lbs. 

Haberdaahery  and  millinery valae  £ 

Lcncn  mannfactnrea yards 

I^inen  ^ani        lbs. 

Irmi,pig  ...         ...         tons 

I>itto,nalway   ...         •-         , 

Copper,  unwrooght      ewts. 

IMtta,  sheets,  niul^y  Ac.  „ 

«>»lt  seed  gallons 

SiUk  manufactorea        value  £ 

rHtto,  thrown    .^         lbs. 

^rita,  British  ...         gallons 

Woollen  cloths,  &c yards 

Woollen  and  worsted  yams cwts. 


18«3. 


1864. 


844,685 

192,638,643 

8,246,636 

421,115 

17,168,614 

4,107,406 

47,821 

33,586 

21,782 

66,367 

552,915 

105,913 

38,081 

262,690 

2,286,314 

3,346,349 


752,078 

138,900,414 

4,101,892 

333,446 

17,918,213 

3,113,712 

87,692 

S6,157 

12,138 

56,326 

792,346 

118,982 

28,923 

214,551 

2,621.360 

2,401,558 


Impoxtb. 


« 

...     lbs. 

1883. 

1864. 

OoeiM     ...        ,.*        ... 

560,168 

353,723 

Codbe     

... 

„ 

12,987,676 

9,502,169 

Wheat 

... 

...   cwts. 

2,742,294 

2,539.950 

Wheat,  flual,  and  floor 

... 

„ 

457,045 

252,676 

Cotton,  rav       ... 

... 

„ 

555,519 

823,585 

S"  

•*• 

...       „ 

170,064 

75,350 

Bemp 

... 

:::  li;. 

130,399 

120,846 

Bklei,  tanned,  &e. 

••. 

407,523 

695,T8i 

Leather sianalkctares ... 

•«• 

...    pairs 

849,684 

807,013 

Batter 

... 

...    cwts. 

85,630 

116,989 

''■•ess   ...        •••         ••• 

... 

•••       II 

64,739 

66,530 

flai-seed  and  libseod  ... 

... 

Z     ftwJ 

185.797 

147,993 

fift,iair 

... 

940,493 

668,861 

fflk,  thrown      

... 

...      „ 

4,317 

37,381 

Sik  mmi&ctareB 

..« 

...      „ 

199,472 

150,478 

^ptnti    .«•        ..•         •#• 

... 

...  gallons 

876,016 

800,363 

nuir,  onrefioed 

••* 

... 

...   cwts. 
•••      11 

464,859 
107,708 

1,237,612 
161,997 

Tea       ... 

... 

...     lbs. 

11,676,409 

11,445,442 

Tckeeo ... 

... 

...      „ 

9,421,118 

6,993.689 

)fn0     

... 

...  gallons 

1,189.113 

1,274,212 

Worf      ...          —          ••• 

... 

...     lbs. 

16,794,391 

19,852,077 

^(»llea  ^»*tgM5ttireg..> 

...  Talae  £ 

163,385 

137,902 

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IMPOBTAKT  QUESTION  WITH  BISQARD  TO  JOINT-STOCK  COMPANIES. — J  AMIS 
V.  THE  OBISNTAL  FINANCIAL   OORFOBATION. 

This  case   was  tried  before  Mr.  Baron  Martin,   in  the  Court  of  Ex- 
chequer,  on  the  8th  of  December. 

It  was  an  action  to  recover  money  had  and  reoeiyed  by  the  4efendaut8 
to  the  use  of  the  plaintiff.    The  defendants  pleaded  never  indebted. 

Mr.  Edward  James,  Q.C.,  and  Mr.  T.  J.  Clarke,  were  counsel  for  the 
plaintiff;  and  Mr.  M.  Smith,  Q.C.,  and  Mr.  Bobbins,  for  the  defendants. 

Mr.  £.  James  said  this  was  a  case  which  he  apprehended  would  resolve 
itself  ultimately  into  a  point  of  law  for  the  determination  of  the  judge 
rather  than  the  jury.  The  action  was  brought  to  recover  £100  under  the 
following  circumstances  : — ^The  Oriental  Financial  Corporation,  Limited, 
was  a  company  established  last  spring  under  the  Companies  Act  of  1862. 
According  to  the  first  prospectus  the  capital  was  £1,000,000,  in  20,000 
shares  of  £60  each ;  the  first  issue  of  shares  was  to  be  10,000,  the  deposit 
on  application  £1  per  share,  and  £4  on  allotment ;  the  calls  not  to  exceed 
£6,  at  intervals  not  less  than  three  months.  The  object  was  to  promote 
financial,  commercial,  and  industrial  enterprise  in  the  East  by  the  applica- 
tion of  ifnglish  capital.  The  prospectus  also  stated  that  the  memorandum 
of  the  articles  of  association  might  be  seen  at  the  offices  of  the  company, 
and  that  in  the  event  of  no  allotment  being  made  the  deposits  would  be 
returned  without  deduction.  The  plaintiff  who  was  a  solicitor,  made  an 
upplication  to  the  directors  for  shares  in  the  following  form  : — **  Gfentlemeb, 
Having  paid  into  the  bankers  the  sum  of  £100  I  request  you  will  allot  me 
100  shares  in  the  Oriental  Financial  Corporation,  Limited,  and  I 'hereby 
agree  to  accept  the  same,  or  any  less  number  that  may  be  idlotted  to  me, 
and  pay  the  calls  in  respect  of  the  shares  so  allotted  when  due ;  and  I 
authorise  you  to-  place  my  name  on  the  register  of  members  for  the  num- 
ber of  shares  allotted  to  me."  The  £100  was  paid  into  the  bank,  and 
on  the  14th  of  April  last  he  received  a  letter  from  the  secretary  of  the 
company  in  the  following  words  : — "  In  reply  to  your  application  the 
directors  have  allotted  to  you  sixty-five  shares.  The  amount  re- 
quired upon  this  allotment  is  £326,  and  you  have  already  paid 
£100,  leaving  £226  to  be  paid  to  the  Mercantile  and  Exchuige 
Bank,  the  bankers  of  the  company,  making  £6  per  share  to  be  paid 
on  or  before  the  23rd  of  April  instant,  or  this  allotment  will  be  lisrble 
to  be  cancelled  and  the  deposit  forfeited."  This  was  a  condition  which  the 
plaintiff  never  contemplated.  He  never  supposed  that  the  money  was  to 
be  forfeited  on  any  given  event,  and  therefore  the  defendants  sought  to 
impose  upon  him  a  term  of  which  he  knew  nothing  when  he  made  the 
application  for  the  shares.  There  could  be  no  contract  between  two  parties 
unless  both  agreed  to  its  terms.  The  plaintiff  therefore,  paid  no  attention 
to  this  communication.  On  the  4th  of  May  he  received  a  letter  stating 
that  the  £226  still  remained  unpaid,  and  requesting  the  payment  of  it, 
with  interest  at  the  rate  of  10  per  cent,  per  annum  from  the  23rd  of  April. 
Of  this  communication  the  plaintiff  also  took  no  notice.  On  the  27th  May 
the  secretary  again  wrote,  to  the  effect  that  if  the  money  with  interest  was 
not  paid  by  the  6th  June  the  shares  would  be  liable  to  be  forfeited.    The 


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Z/egal  Miscellany.  31 

plamtiffdid  not  reply,  and  lie  received  another  letter,  stating  that  if  the 
mooej  was  not  paid  by  tbe  SOth  June  the  shares  would  be  forfeited,  and 
that  he  would  remain  liable  to  all  calls  and  accruing  interest  on  the  shares 
from  the  day  of  forf eitttre.  On  the  6th  July  he  was  informed  that,  in 
pmssanoe  of  the  resolution  of  the  directors,  the  shares  had  been  forfeited. 
Ob  the  ^th  July  the  plaintiff  wrote  to  the  secretary  stating  that,  as  the 
allotment  was  cancelled,  he  had  to  request  the  directors  to  forward  him  a 
dneque  for  £100.  On  the  29th  the  secretary  wrote  that  his  proposition 
eoold  not  be  entertained.  The  plaintiff  replied  on  the  4th  of  August  that 
he  had  made  no  propoaal,  but  merely  made  a  request  for  the  £100  as  the 
natunJ.  sequence  of  the  act  of  the  directors.  The  learned  counsel  sub- 
mitted that  under  these  circumstances  there  was  no  contract  by  which 
plaintiff  agreed  to  the  deposit  being  forfeited  on  any  certain  event,  and 
that  if  the  directora  chose  to  cancel  the  allotment  of  shares  there  was  no 
consaderation,  and  the  deposit  became  money  received  by  the  company  to 
the  use  of  the  plaintiff.  He  added  that  he  Uiought  the  best  course  would 
be  to  put  in  aU  the  documents  and  leave  the  question,  which  he  conceived 
to  be  one  of  law,  to  the  court  above. 

Mr.  Baron  Martin  said  it  struck  him  that  the  question  was  one  for  the 
jury,  bat  if  the  parties  agreed  to  refer  the  point  to  the  court  above  he 
would  have  no  objection  to  that  course. 

Mr.  M.  Smith  said  he  preferred  the  case  being  left  to  the  jury. 
Mr.  Baron  Martin  thought  it  was  for  the  jury  to  say  whether  the  plain- 
tiff absented  to  the  terms  of  the  allotment  letter,  in  which  it  was  stated 
thai  if  the  mon^  was  not  paid  the  3hareB  might  be  cancelled  and  the  de- 
posit forfeited. 

Mr.  M.  Smith  then  addressed  the  jury  for  the  defence.  He  said  that 
the  Oriraital  Financial  Corporation  was  a  very  respectable  company,  with  a 
very  respectable  body  of  directors,  and  when  started  the  plaintiff,  like 
many  other  persons,  applied  for  shares,  in  the  hope,  no  doubt,  that  they 
would  go  to  a  premium.  He  received  an  allotment  letter,  in  which  he  wa^ 
informed  that  if  the  money  due  upon  the  shares  was  not  paid  the  allot- 
ment was  liable  to  be  cancelled  and  the  deposit  forfeited,  if  he  objected 
to  those  terms  he  ought  to  have  done  so  at  the  time,  but  not  having  repu- 
diated them  they  were  binding  upon  him.  Unless  some  agreement  of  that 
kind  was  made  companies  could  not  be  formed,  and  shares  could  not  go 
into  the  market.  There  could  be  no  doubt  that  the  plaintiff  was  waiting 
for  the  chances  of  the  market,  and  that  if  the  shares  had  gone  up  to  a  pre- 
mium  he  would  have  paid  the  whole  £326,  sold  the  shares,  and  pocketed 
the  premium.  The  shares,  however,  went  to  a  discount,  and  then  the 
plaintiff  repudiated  the  allotment  letter,  and  wanted  to  get  back  his 
money. 

The  secreiaiy  of  the  company,  who  was  called,  deposed  that  on  the  14th 
April  the  shares  were  stationary  in  the  market,  and  that  on  the  23rd  they 
irere  ai  a  trifling  discount.  They  had  never  reached  a  premium  since,  but 
ihe  discount  had  become  greater. 

Jfr.  BsLTon  Martin,  in  stuuming  up,  said  the  verdict  of  the  juiy  depended 
uum  ibe  letter  of  allotment,  which  told  the  plaintiff  in  very  plain  limguage 
t^Tin  the  event  of  his  not  paying  the  £4  per  share  in  addition  to  the 
£1  the  allotment  -would  be  liable  to  be  cancelled  and  the  deposit  for- 
ffflied  If  he  bad  vnritten  back  immediately  and  said,  "  I  know  nothing 
5^t  term  audi  won't  agree  to  it ;  yive  me  back  my  £100,"  he  would 
^    been  pOTOctly  right  in  doing  so,  because  it  was  not  a  term  contained 


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32  Legal  Mmelltmy. 

in  hiB  application.  He^howeyer,  did  not  do  bo,  and  allowed  all  thetimei 
from  the  lith  of  April  to  the  5th  of  July  to  elapae  without  making  any 
objection.  If  the  jury  thought  the  truth  of  the  matter  was  that  the^ 
plaintiff  n^oant  to  play  fast  and  loose—to  take  the  shares  if  they  went  to  a 
premium,  and  to  refuse  them  if  they  were  at  a  discount,  and  that  in  reality 
he  agreed  to  the  terms  of  the  allotment  letter,  they  would  find  a  verdict 
for  the.  defendants;  but  if  they  thought  he  did  not  agree  to  those  terms 
he  had  received  no  consideration  for  ^  £100,  he  was  entitled  to  their  ver- 
dict. 

The  jury,after  a  brief  deliberation  in  the  bo:^,  found  a  verdict  for  the 
defenduits. 


BAKKBBS   AND   CUSTOHEBS — nOVThUiS   V.   THB   AGBA  AND   MABTBRUAN'S 

BAKK. 

This  csbo  came  before  Vice-Chancellor  Stuart^  in  the  Court  of  Chancery, 
on  the  14th  December. 

Mr.  Bacon,  with  whom  was  Mr.  Malins  and  Mr.  Dickinson,  moved  for 
an  injunction  to  restrain  the  defendant^  George  Frederick  Hoffinann,  a 
merchsmt,  at  Liverpool,  from  further  prosecuting  an  action  at  law  to  re- 
cover a  sum  of  £4^06.  2s,  9d.,  and  to  recover  damages  for  the  injury 
claimed  by  the  defendant  for  dishonouring  his  cheques.  The  case  wa^ 
this — The  plaintiffs  had  a  branch  bank  at  Calcutta.  The  defendant  was 
originally  a  partner  in  the  house  of  Hoffinann  and  Co.,  of  Calcutta.  The 
plaintiffs  having  had  a  good  many  dealings  with  a  Liverpool  firm  named 
Speltz,  on  being  request^  by  Speltz,  ie^eed  to  open  a  credit  in  favour  of 
Ho^fhiann  and  Co.,  on  certain  terms,  viz. ^  that  the  credit  should  be  divided, 
into  four  letters  of  ^£25,000,  each  to  be  issued  by  Speltz,  and  enf aced  by 
the  plaintiffs.  That  there  was  to  be  a  margin  of  15  per  cent,  on  actual 
cost  price  of  produce,  and  that  nothing  should  have  occurred  to  affect 
materially  the  position  of  Messrs.  Bofi^ann  and  Co.,  or  the  said  Speltz, 
during  the  currency  of  the  credits,  which  should  continue  in  force  for  six 
monthB,  and  be  issued  on  such  dates  as  the  said  Speltz  might  wish.  These 
terms  were  agreed  to,  and  the  plaintiffs  took  and  paid  bills  to  a  large 
amount  drawn  by  Hoffmann  and  Co.  on  Speltz,  and  endorsed  by  him  to 
tlie  plaintiff,  who,  however,  held  the  same,  and  amoimted  in  the  whole  tq 
£71,224.  5«.  The  bill  alleged  tiiat  Speltz  had  stopped  payment,  and  that 
the  bill9  of  lading  held  by  the  plaintifib  were  insufficient  to  cover  the  lia- 
bilities, in  May,  1864,  the  plaintifib  allowed  the  defendant  to  open  an 
account  with  them,  and  discounted  bills  for  him  to  the  amount  of 
£8,648. 15a.  6(2.^  running  on  the  30th  September,  1864.  The  bill  alleged 
certain  transactions  between  the  plaintiffs  and  the  defendant.  The  de- 
fendant, as  he  alleged,  ceased  to  be  a  partner  in  the  Calcutta  firm,  and  set 
up  busiiiess  at  Liverpool.  The  Calcutta  firm  of  Hoffmann  failed,  and  the 
plaintiffs,  on  September  30, 1864,  resolved  not  to  honour  the  defendant's 
cheques,  having  regard  to  the  outstanding  liabilities  at  the  time.  When 
the  bank  came  to  this  resolution,  the  defen^mt's  balance  was  £4,105. 25. 9(1., 
and  it  appeared  from  the  evideiioe  that  the  day  previously  the  defendant 
had  paid  in  to  his  account  upwards  of  £1,000.  It  was  stated  in  the  plain- 
tifis'  affidavit  that  some  of  the  bills  had  been  since  dishonoured,  and  that 
there  was  due  to  the  plaintiffs  at  the  present  time  about  £1,100.  The 
ground  on   which  the  plaintifb'  equity  was  rested  was  that  at  law,  the 


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Seinde^  Punjaub  and  Delhi  Bank.  33 

bills  bemg  pending  at  the  date  oi  the  action^  the  {daintifb  ooal4  not  set 
off  tbeir  daun. 

Mr.  Greene  and  Mr.  Bristowe,  for  the  defendant,  contended  that  it  was 
nnprecedented  for  a  banker,  having  money  of  a  customer  in  his  hands,  to 
refose  to  honour  the  customer's  dieques  simply  because  there  were  bUls 
nmning.  The  plaintiffs  had  ruined  the  defendant,  and'  he  was  entitled  to 
have  the  damage  he  had  sustained  ascertained  by  a  jury.  l!hey  cited 
*^  Bavson  v.  Samuel." 

Sir  John  Stnart — I  do  not  think  I  can,  as  asked,  dismiss  i^oA  motion. 
This  bill  in  equity  states  that  an  action  was  brought  against  the  plaintiffs 
by  a  customer  of  their  bank,  in  which  he  insists  that  he  is  entitled  to 
recorer  a  balance  of  money  standing  at  their  bank  upon  a  banking  . 
account,  and  the  plaintiffs  idso  state  that  notwithstanding  such  balance, 
there  iJs  on  the  part  of  the  defendant  a  much  linger  liability  to  the  bank ; 
and  th^  insist  that  they  (the  present  plaintiffs)  ought  to  be  allowed  to 
bold  this  balance  until  the  defendant  has  discharg^  his  liability  to  the 
bank.  That  is  a  fair  question  to  be  tried  in  this  court.  What  the  de- 
fendant in  equity  insists  upon  is  his  right  to  go  on  with  his  action,  and 
have  the  question  tried  at  law.  The  plaintiffs  in  equity  have  filed  their 
bill,  impeaching  altogether  the  le^al  right  of  the  defendant  at  law,  and 
stating  the  pecoliar  nature  of  the  uabilities,  and  alleging  that  they  have 
not  b^  diacharged,  and  according  to  that  state  of  things  the  court  is,  I 
think,  bound  to  grant  the  injunction  which  has  been  asked  for.  His 
Honour  then  oonsSlered  that  the  case  of  "  Rawson  y.  Samuel,"  which  had 
been  dted,  had  nothing  to  do  witii  the  case  made  for  the  defendant,  and  he 
alao  stated  that  the  pl^tiffs,  in  not  filing  their  bill  sooner,  left  no  room 
lor  complaint  on  the  part  of  the  defendant,  because  in  October  the  heavy 
liabilities  of  the  defendant  to  the  bank  might  be  liquidated  before  the 
aeticm  could  be  tried.  Some  or  one  of  the  bills  having  been  dishonoured, 
the  plaintifb  had  oomo  to  this  court,  and  were  entitled  to  an  injunction. 
He  coidd  not  avoid  observing  that  he  thought  it  was  ratiier  a  sharp  thing 
on  the  part  of  these  bankers  to  take  the  money  of  their  customer  on  the 
very  day  upon  which  they  had  made  up  their  minds  to  stop  the  pay- 
DiflDt  of  his  eheqties.  If  it  should  hereafter  be  considered  that  the 
bankers  were  not  justified  in  withholding  payment  of  those  cheques,  then 
tiie  amount  of  damages  would  have  to  be  considered,  but  at  this  time 
it  WIS  quite  impoflsible  to  say  What  those  damages  were. 


IRepnris  of  loinl-Storh  §anb. 

SCINPE,  PtJKJAUB,.  AND  DELHI  BANK. 

Tn  third  half-yearly  meeting  of  the  proprietors  in  this  bank  wto  held 
OD  the  29th  November,  at  the  London  Tavern ;  Mr.  W.  P.  Andrew  in  the 
duir.  .  ^ 

Mr.  Cniig,  the  manager,  having  read  the  advertisement  conVenmg  the 
meethig,  read  the  f  oUowing  report  :— 

« Hie  bank    has  now  branches   in  operation   at  Bombay,  Kurrachee, 


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34  Scinde,  Punjaub  and  Delhi  Bank. 

Lahore,  Umritstir,  and  Calcutta,  and  is  represented  by  agencies  at  Madras, 
Hong  Kong,  Ceylon,  Sydney,  and  Alexandria.  The  Lahore  and  TJmritsur 
branches  were  opened  on  the  6th  April  and  2nd  May  respectiyely ;  the 
Calcutta  branch  on  the  18th  July.  The  result  of  the  operations  of  these 
branches  cannot  bo^  brought  into  account  before  the  dlst  December  next. 
The  shares  last  issued  at  £2  per  share  premium  were  taken  up  and  paid 
upon  to  the  extent  of  7,882  out  of  the  12,500  offered  to  the  shareholders,  and^ 
according  to  advices  by  lajit  mail  from  the  Bombay  branch,  the  1,000 
shares  placed  at  the  disposal  of  that  branch  had  all  been  allotted  to  the 
public  at  £6  per  share  premium,  which  premium,  together  with  a  deposit 
of  £2  per  share,  had  been  paid.  The  total  amount  realised  by  premiums, 
viz.,  £24,674.  Is.  6(2.,  has  been  carried  to  the  reserve  fund.  Ko  returns 
have  yet  been  receiy^  from  the  other  branches  as  to  the  disposal  of  the 
shares  appropriated  to  them.  The  accounts  for  the  half-year  ending  30th 
June  last,  as  per  annexed  statement,  which  have  been  didy  audited,  show 
a  gross  profit  of  £26,613.  12^.  including  balance  brought  forward  1st 
January,  1864,  after  deducting  interest  on  current  and  fixed  deposits. 
"  From  this  sum  £9,270.  9«.  43.  has  been  deducted  for  current  exx)ense8, 
and  £12,433.  Ss,  Id.  for  rebate  on  bills  and  commission  on  acceptances 
running,  including  a  due  provision  for  bad  and  doubtfid  debts,  leaving  a 
balance  of  £4,909.  14«.  7d.  at  the  credit  of  profit  and  loss,  which  Uie 
directors  propose  to  carry  over  to  next  half-year." 

Balance-sheet  made  up  to  30th  June,  18'64. 

Dr»  LIABILITIES. 

Capital  anthorised  50,000  shares  £20  each £1,000,000 

Issued  25,000  £5  per  share  p'aid  up  £125,000;  issued  12,500 
£2  per  share  paid  up  £25,000  ;  second  call  £3  on '  12,500 
shares,  of  which  paid  £37,389;  third  call  £2.  10s.  on 
37,500  shares,  of  which  paid  £93,350 ;  fourth  call  £2.  lOs, 
on    37,500  shares,  of  which  paid  £92,175 £372;9I4    0    0 

Current  and  fixed  deposits,  bills  payable,  and  other  liabilities    1,657,723  14    2 

Rebate  and  commission  adjusting  account: — For  amount  of 
rebate  at  5  percent,  and  commission  reserved  out  of  profits, 
to  be  carried  to  credit  of  next  profit  and  loss  account    ...         10,502  10    0 

Reserve  fimd— For  premiums  realised  on  part  of  second  issue 

of  shares  not  taken  up  by  shareholders  (per  last  report)...  3,896    1     6 

Profit  and  loss  for  net  profit         4,909  14    7 


Hh  June  £129,805  16    o" 

■••        ...        •.■        ■•• 

..•        ...        ...        ... 

sets'  (including  £22,130.' 
veen.  the  brancnes) 

...        ...        •••        ... 

...        ...        ...        ... 

£6,688    0    5 

1,496  14    7 

£8,084  15    0- 

i 

s 

£2,049,946    0 

3 

Bills  discounted  but  not  matured  at  8( 

Or. 
Cash  at  bankers'  and  on  hand     ... 
Bnllion  in  India  and  in  transitu  ... 

Government  securities      

Bills  receivable,  loans,  and  other  asi 
10s.  6d.  unadjusted  balances  betn 
House  property  and  office  furniture 

Preliminary  expenses        

Balance  on  Ist  January,  1864 
Amounts  added  since       

£80,075  13  10 
60,365  15    8 
75,310    8  10 

1,813,474    3     9 

12,635    3    7 

8,084  15     0 

B2,049.946    0    3 

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£5,054  16 
147  8 

10,502  10 
1,930  18 
9,270  9 
4,909  14 

0 
2 

0 

1 
4 
7 

£31.815  16 

2 

£5,480  7 
2,787  14 

23,547  14 

10 
0 

4 

£31,815  16 

2 

Sdnde,  Punjaub  and  Delhi  Bank.  S5 

Prq/U  and  Lost  Account  for  the  haff^year  ended  90th  June,  1864. 

Dr. 
Inereit  an  capitAl  to  Slst  December,  1863,  declared  at  Ust 

aeetin^  ...         •«.         ...         ..«         ...         •••         ... 

Iiecme-tax  to  Slst  December,  1863        

fi^bftte  and    commission  adjusting  account  for  rebate  and 

OQomusEion  on  current  bills  and  drafts      

Seserre  against  bad  debts  

Geaenl  charges  of  head  office  and  branches 

BdsBoe  being  net  profit •«        


Cr. 

Bahaoe  o€  profit  at  Slst  December,  1863         

Bebate  and  commission  adjusting  account  at  ditto     

Gross  profitB  at  bead  office  and  branches  after  allowing  for 

interest  on  fijLod  and  current  deposits       .,.         


Tlfee  Chairman,  in  mbving  the  adoption  of  the  report,  said  there  was  no 
fteoeonty  under  their  charter  for  calling  the  shareholders  together,  but  the 
directors  had  thought  it  better  to  do  so,  and  lay  the  i^tate  of  their  afiairs 
beiore  them,  particularly  as  it  was  not  their  intention  to  propose  a  divi- 
dead.  The  progress  of  the  bank  had  been  in  most  respects  satisfactory. 
Hie  Bobsmbed  dental  had  increased  to  upwards  of  £900,000,  the  paid-up 
capital  to  nearly  i^KX>,000,  and  the  reserve  fund  to  nearly  £25,000.  At  the 
kst  meeting  the  shareholders  amounted  to  450,  and  they  were  now  nearly 
double  that  number.  Looking  at  the  peculiar  position  of  the  bank,  that 
was  Tery  encouraging.  (Hear,  hear.)  But  they  might  say^  ^Looking  at 
yovr  resourees,  why  do  you  show  us  such  rery  small  profits,  and  pay  us  no 
dlTideiid  at  alt  V*  (Hear,  hear.)  He  would  very  soon  answer  those  ques- 
tions. The  capital  at  their  disposal  had  been  very  small,  and  the  greater 
portion  of  it  had  been  in  tr<Muitu,  in  going  out  of  this  country.  It  was 
ne^er  intended  that  the  capital  should  be  worked  in  this  country,  but  that 
it  should  be  used  in  stimulating  commerce  in  India.  The  expenses  there 
had  been  yery  great,  and  there  had  been  at  present  no  returns  from  a  large 
portion  of  their  outlay.  They  had  established  five  branches  in  India,  and 
only  two  of  them  were  remunerative,  and  they  were  at  Kurrachee  and 
Bombay.  It  had  been  their  policy  to  withhold  their  hands  from  business 
unless  it  was  of  a  safe  character.  (Hear,  hear.)  It  had  bden  the  aim  of  him- 
sdf  uid  his  colleagues  to  encourage  a  safe  and  stable  business,  rather  than 
do  a  BpecnlatiYe  and  dashing  business  (hear,  hear),  and  as  long  as  he  was  a 
dbector  of  thsEt  company  he  would  set  his  face  against  any  alteration  of 
that  policy.  (Hear,  hear.)  They  were  aware  that  the  financial  position  of 
Bombay  was  at  present  very  much  inflated  with  speculation,  in  oonsequenoe 
of  idiich  the  board  had  sent  instructions  to  their  managers  to  hold  their 
hands,  and  engage  in  no  business  except  what  was  of  a  safe  and  profitable 
character.  They  might  easily  hare  d^axed  a  dividend  if  they  had  chosen 
to  engage  in  rash  speculations,  but  they  had  preferred  pursuing  a  safe  and 
euitioiis  policy  which^  he  was  convinced,  would  in  the  end  result  in  the 
establishmeftt  of  an  institution  which   would  prove   not  only  of  the 


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36  Scinde,  Punjaid>  and  Delhi  Bank, 

most  stable  but  of  the  most  profitable  character.  He  considered  that 
if  they  had  anything  to  pride  themselyea  on,  it  was  their  courage 
in  withholding  a  dividend  when  it  was  inexpedient  to  declare  one. 
If  they  had  only  patience  to  let  the  bank  go  on  for  a  few  years,  they  woidd 
reap  the  profits  of  the  course  they  were  now  pursuing.  He  regretted  that 
they  had  declared  a  dividend  so  early  in  their  career  as  they  had  done,  but 
QtlU  he  did  not  Bee  that  they  had  any  cause  to  regret  it,  for  the  money  had 
been  fairly  earned.  Since  then  circumstances  had  been  very  adverse,  the 
rate  of  interest  had  been  high,  and  business  had  consequently  been  cur- 
tailed. .  He  felt,  however,  sure  that  irom  the  connection  of  the  bank  with 
the  railways  in  India,  there  would  be  a  very  large  ultimate  profit.  They 
had  been  at  great  expense  in  establishing  the  branches  in  Upper  India,  but 
he  was  satisfied  that  th^  would  prove  very  remunerative.  They  would 
have  already  seen  by  the  public  press  an  account  of  the  magnificent  durbar 
which  was  held  by  the  Govemor-Greneral  of  India  at  Li3iore,  and  they 
would  observe  that  the  next  important  duty  that  Sir  John  Lawrence  dis- 
charged was  the  opening  up  of  another  section  of  the  Punjaub  Railway 
froih  Lbhore  to  Moultan.  in  reference  to  the  railwayi^,  he  was  happy  to 
state  that  very  large  payments  on  their  account  would  pass  through  the 
bank,  tn  the  first  place,  he  might  state  that  they  were  the  bankers  of  the 
thmjaub  Railway,  which  was  now  paying  in  to  its  credit  £30,000  a  month, 
^d  when  the  line  was  further  opened  tl^t  amount  would  be  much  greater. 
Then  there  was  the  Delhi  Railway,  the  contract  for  which  amoimted  to 
the  gigantic  sum  of  five  millions ;  and  he  was  happy  to  inform  them  that 
the  financing  of  that  gr^at  operation  would  be  speedily  confided  to  the 
bank.  (Hear,  hear.)  Looking  at  the  severe  manner  in  which  their  accounts 
had  been  made  out,  and  that  the  expenses  of  the  establishment  of  the 
branches  had  been  paid  out  of  revenue  and  not  charged  to  preliminary  ex- 
penses, as,  in  his  opinion,  they  ought  to  have  been^  he  thought  there  yfa» 
|9Very  prospect  that  their  future  operations  would  be  very  successful.  If  i^ 
had  not  been  for  the  manner  in  which  their  accountshad  been  placed  before 
them,  and  for  a  bad  debt  (the  only  one  they  had  to  complain  oQ,  they  would 
Wve  been  in  a  position  not  only  to  have  declared  a  dividend,  but  to  have 
carried  a  considerable  balance  forward.  Looking  at  the  rebate  account,  he 
felt  confident  that  the  dividend  was  only  suspended.  Their  abstinence  on 
the  present  occasion  would  be  highly  favourable  to  the  future  prosperity 
of  the  company,  for  it  would  not  only  enable  them  to  carry  forward  the  re^ 
bate  and  commission,  amounting  to  £10,000,  but  inasmuch  as  that  all  the 
branches  would  speedily  become  productive,  he  looked  forward  to  their 
being  able  in  May  next  to  declare  a  dividend  similar  to  what  they  did 
before.  He  had  a  large  stake  in  the  bank  himself,  and  had  the  most  oom-k 
plete  confidence  in  its  success.  Other  banks  had  received  credit  for  declare 
ing  a  dividend,  but  he  thought  that  the  directors  deserved  more  credit  for 
their  abstinence  in  not  declaring  a  dividend.  In  doing  so  they  had  con- 
sulted the  interests  of  the  shareholders,  and  at  the  same  time  increased  the 
stability  and  prestige  of  the  bank.  (Hear,  hear.)  He  moved  the  adoption 
of  the  report. 

Mr.  W.  F.  Riissell,  M.P.,  seconded  the  motion,  and  said  he  agreed  with 
what  the  chairman  had  said,  not  only  with  regard  to  the  report,  but  also 
with  regard  to  the  declaration  of  the  dividend  in  May  last^  He  thought 
they  ought  not  to  have  declared  it  then ;  but  having  done  so  they  could 
not  do  better  than  follow  the  policy  that  had  b^  laid  down  by  the 
chairman,  and  he  believed  that  if  that  were  done  the  bank  would  become 
a  most  flourishing  institutioii. 


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Scindej  Punjaub  and  Delhi  Bank.  87 

A  Shareholder  asked  whether  they  did  not  declare  a  dividend  of  5  per 
csai  in  May  last  t 

Tbe  Chairman  aaid  they  did. 

The  same  shareholder  observed  that  they  declared  a  dividend  of  5  per 
c>3il  in  May,  and  immediately  afterwards  isAued  new  shares  at  £2  pre- 
iLiciiL  He  thought  they  were  not  worth  £2  premium.  (Hear,  hear.) 
He  vonld  like  to  know  how  many  shares  the  directors  took  up.  (Hear, 
Ifear.) 

The  Chairman  said  he  took  up  the  full  complement  of  his  shares,  and 
his  colleagnes  did  the  same,  and  they  had  kept  them.  (Hear,  hear.) 
VThen  those  shares  were  issued  at  £2  premium  they  were  quoted  at  £4 
in  the  market.  (Hear,  hear.)  With  regard  to  the  dividend,  it  was  only 
recently  that  they  had  decided  on  not  declaring  one.  Had  he  been 
sfked  a  month  ago  he  should  have  said  that  there  would  have  been  a 
dividend. 

Mr.  HedgoodL  said  he  took  a  very  different  view  from  the  hon.  pro- 
prietor. He  thought  their  proBpects  were  very  encouraging.  Out  of 
12,500  shares  7,389  had  been  taken  up  by  the  shareholders.  Was  not 
that  satisfactory?  (Cries  of  "No, no.'*)  The  fact  was,  the  report  did 
no6  go  far  enotigh,  for  it  might  have  stated  that  the  capital  paid  up  was 
£392,qOO,  that  the  gross  profits  had  been  £26,600,  less  rebate  and 
commission. 

A  Shareholder  (indignantly) — Do  not  talk  such  stuff.  If  you  take  the 
balance  brought  forward  from  the  previous  half-year,  it  will  reduce  the 
profits  to  £21,000,  and  then  take  the  current  expenses  and  the  rebate,  and 
you  will  find  that  they  amount  to  more  than  that ;  so  that  the  business  of 
the  bank  has  been  conducted  at  a  loss. 

Mr.  HedgTX>ck  continued — ^They  oould  not  blame  the  directors  for  having 
made  no  more  profit  out  of  a  camtal  of  only  £190,000. 

The  indignant  Shareholder — -We  do  not  blame  the  directors ;  we  could 
not  expect  more.    Look  at  the  expenses  of  establishing  the  local  branches. 

Another  Shareholder  asked  whether  the  last  dividend  was  paid  out  of 
capital  or  profits. 

The  Chairman — ^Profits,  of  course.     What  a  question  to  ask  t 

Mr.  Conybeare  said  nobody  could  charge  him  with  having  come  to  a  fore- 
gone oanduaion.  The  report  was  unsatisfactory  to  them  all ;  but  still  he 
had  great  faith  in  the  concern.  (Hear,  hear.)  No  one  could  charge  the 
directors  with  unfair  dealing.  (Loud  cries  of  **  No  one  is  charging  them 
with  unfair  dealing.'*)  But  this  country  had  gone  through  a  neat  crisis  in 
the  money  market.  rThe  speaker  was  here  interrupted  by  loud  cries  of 
**  Question,  question.")  He  was  next  heard  to  say  that  he  had  the  greatest 
eoafideuce  in  the  directors,  and  their  conduct  had  confirmed  his  confidence 
in  them  and  their  sterling,  steadfast  honesty.  (Hear,  hear.)  The  chairman 
mentioned  that  they  had  had  a  loss  by  a  bad  debt :  he  should  like  to  know 
the  amount  of  ft. 

The  Chairman  said  it  was  £1,900. 

Mr.  Conybeare  said  he  was  glad  to  see  it  was  so  small,  and  he  should  like 
to  know  which  bank  oould  show  so  small  a  loss.  He  had,  therefore,  great 
confidence  in  the  directors,  who  had  the  honesty  not  to  declare  a  dividend. 
It  had  been  stated  that  the  Bank  of  Hindustan  had  made  a  boast  that  they 
had  the  Oriental  Bank  Corporation  at  their  back,  which  oould  do  all  their 
pn>per  boriness  in  India  for  them,  and  that,  therefore,  this  bank  could  not 
*tand  agaiBst  them.     He  should  like  to  have  some  information  as  to  whether 

VOL.  XIV.  4 


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88  Scinde,  Punjaub  and  Delhi  Bank. 

there  was  any  truth  in  such  a  statement.  He  then  deprecated  the  share- 
holders acting  unfairly  to  the  directors,  and  expressed  a  hope  that  the  next 
time  he  met  them  he  should  have  the  pleasure  of  congratulating  them  on 
the  way  they  were  making  through  the  troubled  waters. 

The  Chairman,  in  reply  to  a  shareholder,  said  they  expected  great  profit 
from  the  financing  of  the  fiye  millions  from  the  Delhi  Bailway,  and  also 
from  the  business  of  the  Punjaub  Railway,  which  would  be  opened  in 
January  next.  They  had  built  a  house  at  Kurrachee,  and  purchased  a 
house  at  Lahore.  The  house  in  King  William  Street  waa  not  freehold,  but 
they  occupied  the  whole  of  it. 

Mr.  Henry  said  that  the  general  expenses  were  very  heavy.  In  December^ 
1863,  they  were  40  per  cent,  on  the  profits,  and  in  June  last  they  were  42 
per  cent.,  or  equal  to  the  working  of  a  railway.  It  was  very  large,  and  he 
thought  ought  to  be  explained. 

The  Chairman  said  they  included  the  expenses  of  the  establishment  of 
the  branches,  and  those  of  the  manager's,  which  ought  properly  to  have 
been  put  to  preliminary  charges.  The  managing  director  had  been  out 
there  to  establish  the  branches,  which  at  present  were  improductive. 
They  had  had  to  pay  the  salaries  and  other  expenses  of  officers  sout  from 
England  from  the  day  they  sailed,  and  they  ought  to  be  put  down  to  pre- 
linunary  expenses ;  but  the  auditor  thought  they  might  be  charged  to 
revenue,  and  in  deference  to  his  opinion  it  was  done  so.  He  should  like 
the  shareholders  to  ask  any  questions  they  chose,  for  they  would  show  that 
the  position  of  the  bank  was  in  a  better  condition  than  it  looked,  although 
they  were  not  required  to  give  them  a  detaUed  statement  of  their  affairs 
then,  as  that  more  properly  belonged  to  the  annual  meeting. 

Some  confusion  aroRC  in  consequence  of  two  shareholders  rising  to  speak 
at  the  same  time,  and  the  one  the  chairman  decided  against  refusing  to 
sit  down. 

Mr.  Edward  King  at  last  obtained  a  hearing,  and  reminded  the  meeting 
that  that  conduct  was  not  banking.  (Hear,  hear.)  He  was  not  an  old 
man,  but  he  was  old  enough  to  have  been  in  a  bank  which  did  not  declare 
a  dividend  at  first,  but  was  now  worth  £300  per  cent,  premium.  (Hear, 
hear.)  He  approved  of  the  conduct  of  the  directors,  and  was  convinced 
that  no  good  ever  came  of  patching  up  a  bad  concern  with  dividends. 
(Hear,  hear.) 

Mr.  Henry  wauted  an  answer  to  his  question.  How  was  it  that  so  large 
a  sum  as  £7,000  could  come  into  general  expenses,  in  addition  to  £8,000 
preliminary  expenses.  He  also  wanted  to  know  if  there  were  £20,000  of 
calls  in  arrear. 

The  Chairman  said  that  with  regard  to  the  first  question  he  had 
answered  it,  and  as  to  the  last,  there  were  no  arrears  of  calls — ^they  had  all 
been  paid  up. 

Mr.  Innes  said  that  the  chairman  had  taken  credit  for  charges  being 
put  down  to  current  revenue  instead  of  to  preliminary  expenses.  It  ap- 
peared to  him  that  the  accounts  should  be  presented  in  a  correct  manner, 
and  that  which  belongs  to  preliminary  exi>enses  ought  to  be  placed  to  its 
proper  charge,  and  prospectively  he  should  like  to  see  all  items  charged 
imder  their  proper  heads,  and  then  mercantile  men  would  be  able  to 
judge  of  the  condition  of  the  bank,  otherwise  they  never  would  be  able  to 
do  so. 

The  Chairman  said — ^With  regard  to  keeping  their  acooimts,  they  had 
placed  them  in  the  hands  of  the  very  efficient  firm  of  Coleman,  Turquand 


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Mauritius  Land  Credit  Company/,  39 

Toniig^  aod  Co.  It  was  an  advantage  to  have  men  independent  of  the  bank, 
and  of  the  known  public  character  that  they  were,  keeping  their  accounts. 
If  they  h^  been  made  out  severely  it  was  very  much  in  doforeucc  to  their 
TOW3.  They  wonld  have  been  made  out  more  favourably  if  it  had  not 
l*jeii  for  the  intervention  of  those  gentlemen.  Nevertheless  he  approved 
uf  their  intervention. 

Mr.  Minton  objected  to  preliminary  expenses  being  increased  after  they 
had  commenced  business. 

The  Chairman  said — If  they  were  to  go  on  putting  down  the  expense 
of  establishing  branches  to  revenue  they  would  not  have  a  dividend  for 
Tcais  to  come.  By  the  last  mail  they  heard  that  the  1,000  shares  sent 
to  Bombay  had  been  disposed  of.  They  had  no  informatioi)  with  regard 
to  the  shares  sent  to  the  other  branches. 

A  shareholder  a^ked  whether  it  was  contemplated  to  make  any  call 
on  the  shares  upon  which  they  had  paid  £2  premium. 
The  Chairman  said  it  was  not  intended  at  present. 
Colonel  ^Vood  asked  whether,  at  the  next  meeting,  the  dividend  would 
be  declared  for  the  whole  year  1 

The  Chairman  hoped  it  would  be  for  the  year. 

Colunel  Wood  said  that  was  satisfactory. 

A  cordial  vote  of  thanks  to  the  chairman  closed  the  proceedings. 


MAURiriUS  LAND  CREDIT  COMPANY,  LIMITED. 

TsE  first  ordinary  general  meeting  of  the  shareholders  was  held  on  the 
^)%h  November,  Major- General  Bum  in  the  chair,  at  the  compauy^s  offices, 
25,  Foichurch  Street,  for  the  usual  business  of  an  ordinary  general  meet- 
ing, and  for  the  purpose  of  altering  the  month  prescribed  by  the  articles  of 
SAsociatiou  for  the  holding  of  the  annual  orcuuary  general  meeting,  and 
for  the  purpose  of  passing  a  special  resolution  to  add  to  the  6th  paragraph 
k4  section  79  of  the  articles  of  association  the  words,  "  but  they  shall  not 
invest  any  money  of  the  company  in  the  purchase  of  shares  of  the  com- 
pai^y." 

The  Chairman,  in  moving  the  adoption  of  the  report,  which  we  have 
ilready  pnblished,  observed  that  the  reasons  why  the  business  in  the  Mau- 
ritius did  not  commence  before  July  was  that  the  new  mortgage  ordinance 
was  not  in  force  till  the  1st  of  that  month,  and  that  other  companies 
haviog  £tarted  on  the  same  principle  as  that  one,  the  planters  waited  to 
see  what  terms  would  be  offered  by  each  company.  Matters  were,  how- 
ever, proceeding  satisfactorily.  A  great  many  applications  for  loans  were 
now  under  consideration,  ana  as  soon  as  the  company  was  in  a  position  to 
P^  a  furiber  amount  of  debentures  the  profits  would  be  greatly  in- 
cnudd.  Each  £100,000  of  additional  debentures  placed  would  yield  a 
profit  of  12  per  cent,  in  addition  to  the  profits  already  made ;  and  thus 
tlw  direcioiB  would  be  enabled  to  declare  a  satisfactory  dividend,  and  to 
«U  to  the  reserve  fund. 

The  report  halving  been,  adopted,  and  some  routine  business  having  been 
dispoted  of  the  meeting  was  made  special,  when  the  following  resolution, 
mored  by  die  Chairman,  and  seconded  by  Mr.  James  Du  Buisson,  was 
pasaed  •—-*'  That  the  ordinary  general  meeting  of  the  company  be  hence- 
^Theld  in  the  month  of  August  or  September  at  the  option  of  the  di- 
Ttdan  ^d  that  the  following  words  be  added  to  the  6th  paragraph  of 
sl^''^  of  the  articles  of  association,  *but  they  shall  not  invest  any 
w^d  the  company  i^  ^^^  purchase  of  shares  of  the  company.' " 


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40 


NATIONAL  FINANCIAL  COMPANY. 

The  ordinary  meeting  of  the  shaxeholderg  of  this  company  was  held  on 
the  30th  November,  at  the  London  Tavern;  Mr.  M.  C.  Seton  in  the 
chair. 

The  following  report  was  read  : — 

"The  directors  have  much  pleasure  in  meeting  the  shareholders  at  this, 
the  first  ordinary  meeting,  and  submitting  a  statement  of  accounts  for  the 
half-year  ending  the  15th  of  the  present  month.  By  the  constitution  of 
the  company  the  directors  are  called  upon  to  convene  a  meeting  within 
twelve  months  after  commencement  of  the  business ;  but  having  regaxd 
to  the  satisfactory  progress  of  the  company,  and  the  present  position  of 
mercantile  and  moneta^  affairs,  the  directors  have  considered  it  advisable, 
in  the  interests  of  the  shareholders,  to  hold  the  meeting  fifteen  days  after 
the  date  up  to  which  the  accounts  are  made  up,  this  being  the  earliest 
period  practicable.  From  the  accompanying  balance-sheet,  which  has  been 
duly  audited  and  certified  by  the  public  accountants  and  auditor  appointed 
under  the  articles  of  association,  it  will  be  seen  that  the  profits  amount  to 
£57,578.  08.  bd.  The  directors  recommend  a  dividend  at  the  rate  of  20 
per  cent,  per  annum,  together  with  a  bonus  of  £1  per  share,  the  bonus  to 
be  added  to  the  paid-up  capital,  making  in  all  £6  per  share  paid  up ;  this 
will  be  equivalent  to  a  payment  of  GO  per  cent,  per  annum  upon  the 
paid-up  capital,  the  dividend  being  in  future  payable  upon  £6  per  share. 
After  setting  aside  £21,000  to  a  suspense  account  for  profits  not  yet  realised, 
writing  off  the  whole  of  the  preliminary  expenses,  and  providing  for  the 
commission  payable  to  the  management,  there  will  remain  a  balance  of 
£12,74G.  Os.  4d,  to  be  carried  forward  to  next  profit  and  loss  account.  These 
profits  might  have  been  considerably  augmented,  but  the  directors  have 
declined  numerous  important  transactions,  for  while  these  offered  large 
profits  they  required  the  company's  acceptances  to  be  given  for  amounts 
for  which  the  present  paid-up  capital  was  wholly  inadequate,  and  which 
might  have  necessitated  making  calls;  and,  although  ample  security 
might  have  been  taken  in  each  case,  the  directors  preferred  confining  the 
operations  of  the  company  within  the  limits  of  the  amount  at  present  paid 
up.  Having  in  view  the  extension  of  the  company's  operations,  and  the 
advantage  of  a  large  subscribed  capital,  the  directors  have  resolved  to  issue 
5,000  new  shares,  with  the  same  amotmt  paid,  viz.,  £6  per  share.  These 
shares,  in  the  first  instance,  will  be  offered  to  the  shareholders  on  the 
register  on  the  21st  December  next,  in  the  proportion  of  one  share  for 
every  two  then  held.  Financial  companies,  until  recently,  were  unknown 
in  this  country,  and,  like  joint-stock  banks,  will  require  time  before  the 
public  will  fully  appreciate  their  capabilities  and  the  great  facilities  they 
render  to  industrial  and  other  enterprises.  But  it  may  not  be  without 
interest  to  the  proprietors  for  the  directors  to  remind  them  of  the  many- 
millions  of  capital  which  have,  through  the  agencies  of  such  companies, 
been  lately  diverted  into  profitable  channels,  and  the  large  dividends  which 
have  consequently  accrued.  Whilst  the  directors  see  no  reason  to  doubt 
the  future  profitable  working  of  this  company  they  desire  to  impress  upon 
their  shareholders  the  advantages  and  security  of  having  an  ample  reserve 
fund,  and  at  the  same  time  that  the  profits  of  a  company  like  the  National 


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National  Ftnamial  Company,  41 

FizLaodal  must  he  materially  influenoed  by  the  general  welfare  and  pros- 
perity of  the  oonntry." 

The  Chairman — ^It  gives  us  much  pleasure  to  meet  you  at  the  earliest 
opjxirtimity  since  the  organisation  of  the  company.  You  have  the  report 
c4  the  result  of  the  six  months'  operations,  and  I  trust  that  it  is  satisfac- 
toTT  to  you.  (Hear,  hear.)  I  have  heard  only  one  objection  to  it,  viz., 
thst  we  have  made  too  large  profits ;  but  it  is  probable  this  will  not  appear 
a  veiy  serious  objection  to  you,  when  you  consider  that  we  have  made 
them  without  incurring  any  risk,  without  making  ourselves  liable  for 
anything,  or  giving  a  single  acceptance — (hear,  hear) — and  without  having 
loc^t  one  farthing.  (Cheers.)  We  have  made  these  large  profits  legiti- 
mately, by  fostering  commercial  enterprises  which,  if  properly  managed, 
will  be,  we  believe,  profitable  to  the  shareholders  who  have  entered  into 
tb^xi,  and  advantageous  to  society  at  large,  for  they  are  all  of  them 
s4»Qnd  commercial  enterprises.  I  beg  to  move  the  adoption  of  the 
report. 

Admiral  Bumey  (director)  seconded  the  motion,  and  congratulated 
the  meeting  on  the  splendid  balance-sheet  the  directors  had  been  enabled 
to  lay  before  them.  The  result  was  most  gratifying,  because  if  they  had 
not  succeeded  they  would  doubtless  have  had  lots  of  blame,  and  now  that 
th^  had  he  doubted  whether  they  woidd  receive  very  much  praise.  The 
bnsonesa  by  which  they  had  obtained  these  large  profits  was  legitimate 
in  all  respects,  involving  no  risks  whatever,  despite  the  slur  of  the  leading 
journal,  as  it  was  called,  but  which  from  the  manner  in  which  it  prosti- 
tuted its  influence  to  serve  its  own  purposes,  was  a  disgrace  to  the 
comitry,  and  would  receive,  he  was  sure,  at  the  hands  of  that  meeting  the 
ecmdemnation  which  it  deserved.     (Cheers.) 

Captain  Grossett  felt  that  the  thanks  of  the  shareholders  were  due  to  the 
directors  for  what  they  had  accomplished,  but  objected  to  the  proposal 
of  issuing  new  shares  while  only  £6  each  was  called  up  on  the  existing 
£50  shares.  He  considered  that  one-fifth  of  the  nominal  capital  should 
be  paid  up,  that  was  £10  on  each  share,  before  they  increased  their  capital 
by  a  new  issue.  He  held  1(K)  shares,  but  would  not  add  to  the  number 
\!^  taking  up  his  quota  of  the  proposed  new  shares,  if  issued. 

Mr.  Swann  expressed  his  concurrence  in  the  views  of  the  last  speaker, 

which,  he  said,  were  shared  in  by  a  very  large  proportion  of  the  proprietors. 

Shareholders  objected  to  increase  their  liabUity  to  future  calls  by  taking 

up  new  shares,  besides  which  the  multiplication  of  shares   depreciated 

their  value  in  the  market.      He  observed  there  was   no  charge  in  the 

accounts  for  directors*  remuneration.    The  articles,  he  believed,  provided 

that  the  shareholders  should  fix  that  remuneration  in  general  meeting ; 

and  considering  that  it  should  be  proportionate  to  the  profits  made,  he 

thought  it  should  be  fixed  from  time  to  time,  and  given  in  the  way  of 

a  boons.    He  proposed,  in  consideration  of  the  handsome  dividend,  tha^ 

£lj(W  should  be  roted  to  the  directors  on  the  present  occasion  for  their 

past  sernces.     In  regard  to  the  profits,  he  of  course  did  not  object  to 

rocdve  90  per  cent,  on  his   capital,  but  he  was  most  anxious  that  the 

directors   should    avoid  all  risks   in   their  endeavours  to  obtain   such 

resnlta.    For   hinxself    he  would  rather  have  a  safe   10,  15,  or  20   per 

cent,  than  eO  per  cent,  if  it  were  earned  by  risking  their  capital.     (Cheers.) 

Mi  J  T.  King  "orgod  that  the  directors  should  explain  the  reasons  why 

ther  proposed  to  i«sue  new  shares  in  preference  to  making  a  call.    He  could 

SitModtha*  it  miglit  be  important  to  increase  the  proprietary. 


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42  National  Financial  Company. 

A  Shareholder  thought  it  might  be  wi^e  to  increase  the  number  of  the 
Bhared,  flto  as  to  place  the  company  on  an  equality  with  competing  finajacial 
institutions. 

A  Shareholder  could  not  see  that  the  shares  would  be  at  all  depreciated 
by  increasing  their  number — of  course  within  reasonable  limits,  and  he 
beliered  that  many  shareholders  would  prefer  taking  up  new  shares  to 
paying  a  call.  He  could  not  understand  on  what  grounds  the  writer  in  the 
"  Times"  said  that  they  could  not  have  made  such  large  profits  without 
accepting  bills,  and  he  was  glad  to  see  the  letter  of  the  secretary,  published 
in  the  papers,  declaring  authoritatively  that  the  company  had  never  ac- 
cepted a  bill.  [The  Chairman — it  Ls  quite  true,  sir.]  As  a  merchant  he 
thought  that  200  per  cent,  per  annum  profit  was  something  so  gigantic  as 
to  be  almost  beyond  belief ;  but  they  had  heard  that  it  had  been  earned  in 
bringing  out  new  commercial  companies,  and  that  was  a  very  different 
thing  from  the  ordinary  trade  of  a  merchant. 

The  Chairman,  in  reply,  remarked  that,  if  the  board  had  made  a  call 
Without  the  knowledge  or  consent  of  the  proprietors,  it  would  have  been 
necessarily  compulsory  on  them  all,  although  it  might  not  have  been  cori- 
venient  or  agreeable  to  all ;  but  when  a  fresh  issue  of  shares  was  made,  it 
was  voluntary  on  the  part  of  the  proprietors  whether  they  took  them  up  or 
not.  (Hear.)  The  board,  however,  considered  this  entirely  a  shareholders* 
question,  and  would  be  bound  by  the  opinion  of  the  meeting.  With  re- 
gard to  the  necessity  for  increasing  the  capital,  the  directors  saw  prospects 
before  them,  if  they  had  more  capital,  of  using  it  advantageously.  He  did 
not  mean  to  say  that  the  profit  would  be  as  great  as  that  reported  to-day  ; 
for  200  per  cent,  perennially  was  something  Hke  Aladdin's  lamp,  and  could 
not  be  expected.  But  there  were  other  projects  on  the  tapis  which  this 
company  might  be  called  upon  to  assist  in  bringing  out,  and  if  commercial 
enterprise  went  on  at  the  same  rate  that  it  had  done  of  late,  the  directors 
saw  their  way  to  the  possibility  of  employing  further  capital  at  great  profit 
and  without  risk,  as  they  had  emploved  the  capital  which  had  already  been 
entrusted  to  their  management.  (Hear,  hear.)  He  thought  there  was 
some  force  in  the  objection  that  there  was  more  risk  in  having  £50  shares 
with  only  £6  called  up  than  in  having  a  larger  sum  called  up  and  less 
liability  remaining ;  but  that  might  be  met  by  reducing  the  nominal  amount 
-  of  the  shares  and  doubling  their  number.  The  board  would,  however,  take 
the  question  into  consideration  as  to  the  advisability  of  making  a  call 
instead  of  issuing  new  shares.  As  he  had  already  stated,  they  hiui  made 
the  profit  realised  during  the  past  six  months  without  any  risk  of  capital. 

A  Shareholder,   who  said   he  had  every  confidence  in  the  directors, 

thought  it  better  to  take  their  recommendation  as  to  the  mode  of  raising 

the  additional  capital.     (Cheers.) 

The  motion  adopting  the  report  was  then  put  and  carried  unanimously. 

Mr.  Swann  moved  dat  £1,000  be  voted  for  the  directors'  remimeration. 

Mr.  King  suggested  that  the  remuneration  should  not  be  less  than  was 

authorised  by  the  deed,  viz.,  at  the  rate  of  £3,000 ;  that  was  £1,500  for 

the  half-year,  and  he  would  even  go  so  far  as  to  propose  a  bonus  in  addition. 

He  moved  that  the  remimeration  be,  for  the  past  six  months,  at  the  rate 

of  £3,000  a  year. 

Mr.  Barker  seconded  this. 

Captain  Gossett  asked  how  many  directors  there  were.  He  observed 
that  the  deed  of  settlement  provided  that  there  should  be  an  executive 
committee,  who  might  be  paid  25  per  cent,  upon  the  profits  after  the 
shareholders  had  divided  5  per  cent. 


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London  ami  South  African  Bank,  43 

Another  Shareholder  believed  that  the  rettiuneration  of  the  executive 
ct-'iariittee  was  a  matter  apart  from  that  of  the  remuneration  of  the 
dirwttirs  as  a  body. 

Hie  Chairman  replied  that  there  were  ten  directors.  The  question  of 
tie  remnseration  of  the  directors  was  one  entirely  for  the  shareholders, 
aD'i  he  would  rather  not  say  a  word  upon  it. 

Captain  Goeset  moved  aa  an  amendment  that  the  remuneration  be  at 
the  rate  of  £2^00  a  year. 

Admiral  Barney  would,  if  there  was  the  least  division  of  opinion,  prefer 
the  lower  sum. 

In  accordance  with  what  appeared  to  be  the  general  wish  of  the  meeting. 
Captain  Go&set  ultimately  withdrew  his  amendment,  and  the  original 
mr^ion  was  put  and  carried  nem.  con. 

The  Chairman  expressed  his  thanks,  and  stated  that  by  the  deed  of 
association  two  of  the  directors  retired  at  that  meeting,  but  were  eligible 
for  re-election.  The  board,  however,  thought  it  better,  as  they  had  not 
heen  elected  by  the  shareholders  in  the  first  instance,  to  place  their  resig- 
iiation  in  the  hands  of  the  present  meeting,  to  deal  with  it  as  they  might 
think  fit.  If  they  were  re-elected  they  would  do  their  best  to  serve  them 
as  they  had  done. 

Mr.  Swann  thought  200  per  cent,  was  too  good  a  thing  to  allow  them 
to  think  of  changing  their  directors  (cheers  and  laughter)  and  he  pro- 
p<-«ed  that  the  present  directors  be  re-elected,  viz.,  Mr.  M.  C.  Seton, 
Admiral  Bumey,  Major  Gowley,  and  Messrs.  Pappa,  Spicer,  Kisby, 
M'Marster,  and  £ .  Clench.  This  was  agreed  to  unanimously ;  the  auditors 
were  likewise  re-elected,  and  50  guineas  awarded  to  them  for  their  services. 

A  vote  of  thanks  to  the  chairman  and  directors,  and  a  similar  compli- 
ment to  the  managing  director,  the  Secretary,  and  other  ofiicers,  concluded 
the  business. 


L01O>0N  AND  SOUTH  AFRICAN  BANK. 

A  <snauL  meeting  of  the  shareholders  in  this  bank  was  held  at  the  London 
TsTcm,  on  the  30Si  November,  to  receive  a  statement  of  accounts,  and  for 
otiier  tKHineBB ;  Colonel  Jas.  Holland,  deputy-chairman  of  the  bank,  in 
tbecfasir. 

The  advertisement  convenine  the  meeting  and  the  minutes  of  the  last 
meeting  having  been  read  by  the  manager. 

The  Chairman  said  that  before  beginning  the  business  of  the  day,  he 
mwl  mention  that  their  esteemed  chairman  was  unable  to  occupy  his  post 
OB  the  present  occasion,  in  consequence  of  domestic  bereavement,  and  he 
WIS  rare  that  he  would  meet  with  the  sympathy  of  all  present.  (Hear,  heta,) 
There  was  not  much  to  present  to  the  shareholders  in  the  way  of  accounts ; 
in  fact  nothing  but  what  had  already  been  laid  before  the  meeting.  As 
the  shareholders  were  aware,  it  had  not  been  their  custom  hitherto  to  hold 
luJf-yearly  meetings^  bat  some  months  ago  there  was  considerable  agita- 
to in  regard  to  this  bank,  induced  by  certain  rumours,  which  he  was 
2uipI7  to  say  were  quite  imfoimded — (hear,  hear) — and  a  desire  was  ex- 
FRMed  that  their  meetings  should  be  held  half-yearly.  Unfortunately, 
iMvever,  fliey  were  00  hampered  by  their  deed,  that  they  were  obliged  to 
gire  four  months'  notice  for  holding  a  general  meeting,  and  that  was  the 


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44  London  and  South  African  Bank, 

reason  why  there  had  been  auch  a  delay  before  holding  the  present  one. 
The  circular  which  had  been  sent  out  alluded  to  a  notice  which  had  been 
given  that  it  was  the  desire  of  several  of  the  shareholders  to  bring  forward 
a  resolution,  and  to  discuss  the  propriety  of  removing  Mr.  Symons  from 
his  office  of  auditor  of  this  company.  He  (the  chairman)  had  ngw  to  in- 
form the  shareholders  that  Mr.  Symons  had  already  sent  in  an  uncon- 
ditional resignation.  The  first  business  they  had  to  do  was  to  confirm 
the  minutes  of  the  last  meeting.  (This  having  been  done,  the  chairman 
continued.)  Before  making  any  remarks  upon  the  business  of  the  meeting, 
he  wishea  to  mention  two  incidents  to  the  shareholders,  namely,  the 
resignation  of  one  of  the  board,  Mr.  Macmaster,  and  also  that  of  Mr. 
Etheridge,  their  manager.  That  gentleman  had  served  them  zealously 
and  faithfully  for  three  years ;  his  talents  were  well  known,  and  his  higk 
sense  of  honour  was  manifested  in  the  fact,  that  wlien  he  was  offered  the  posi- 
tion  of  manager  at  another  bank,  with  a  salary  double  that  he  received  from, 
the  board,  before  thinking  of  accepting  it,  he  went  to  the  directors  and 
placed  himself  entirely  in  their  hands,  saying,  *'  Gentlemen,  if  you  think 
I  ought  not  to  accept  this  offer,  I  will  not  do  so."  (Cheers.)  The  board 
thought  that  they  could  not  stand  in  his  light,  and  accordingly  they^ 
oftered  no  obstacle  in  the  way  of  his  advancement — (hear,  hearj — and  ap-" 
pointed  in  his  place  Mr.  James,  who  had  been  their  accountant  at  Cape 
Town  for  some  time,  a  gentleman  who  bore  a  high  character,  and  who,  he 
was  happy  to  say,  was  doing  his  best  to  maintain  the  high  character  which, 
he  had  previqusly  enjoyed.  With  regard  to  the  accounts  generally,  he 
had  really  little  to  add  beyond  what  was  said  by  his  predecessor  at  the  latrt 
meeting.  The  actual  sum  they  divided  was  a  trifle  below  what  they  had 
done  previously,  and  he  had  some  hopes — although  he  did  not  like  to  oom> 
mit  himself  to  any  specific  promise  where  so  much  dex>ended  upon  the 
state  of  mercantile  affairs  at  the  Cape — ^that  they  would  be  able  to  make 
it  good  at  the  end  of  the  year.  (Cheers.)  One  of  the  most  significant 
signs  by  which  they  might  judge  of  the  prosperity  of  a  new  bank  was  the 
condition  of  the  item  '*  deposit  accounts ;''  and  he  would  read  the  figures  of 
the  deposit  accoimt  as  it  stood  for  the  last  two  years,  and  as  it  now  stood. 
In  June,  1863,  the  amount  of  the  deposit  accoimt  was  £228,000 ;  in  De. 
oember  of  the  same  year,  £260,000 ;  in  June,  1864,it  was  £305,000 ;  and  it 
now  stood  at  £360,000.  (Cheers.)  He  thought  that  that  must  be 
considered  a  very  satisfactory  result — (hear)~because  South  Africa 
was  not  a  couiltry  like  India,  where  any  very  rapid  development  of 
such  institutions  took  place.  It  was  a  steady  and  rather  slow-going 
country,  and  the  bank  itself  was  a  steady  hard-working  institution, 
making  no  attempt  at  dash,  but  endeavouring  to  avoid  bad  business  and 
bad  bills,  and  he  believed  that  by  so  doing  they  would  ultimately  become 
a  very  prosperous  concern.  There  was  one  item  in  their  accounts  which 
he  might  call  their  attention  to,  because  it  indicated  that  amendment 
was  wanted  in  one  portion  of  their  charter.  He  alluded  to  their  note  cir. 
culation,  which  was  not  what  it  ought  to  be.  Here  again  their  charter 
hampered  them,  because  having  eight  or  ten  branches  at  the  Cape  every 
note  issued  at  any  of  the  branches  was  made  payable  on  demand  at  each 
of  the  other  nine  or  ten  branches,  in  consequence  of  which  they  were 
compelled  to  keep  at  each  branch  sufficient  money  to  meet  the  liability 
of  the  whoJe  of  the  branches,  and  that  was  a  position  in  which  their 
rival  bank,  which  was  started  under  limited  liability,  was  not  piaoed. 
The  attention  of  the  board  had   been  directed  to  that  point,  and  they 


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Londofi  and  South  African  Bank.  45 

pm^osed  to  apply  for  an  alteration  in  the  charter,  with  the  intention  of 
XMiing  nates  payable  only  at  the  branches  at  which  they  were  issaed, 
the  grounds  on  whiclk  they  were  about  to  make  the  application  being 
io  jiKt  and  reasonable  tliat  there  was  no  reason  to  suppose  that  any 
objection  oonld  be  offered  to  it.  He  could  only  add  that  he  should  be 
bippj  to  answer  any  qneationa  or  give  any  information  that  the  share- 
Loiaers  might  desire. 

A  Shareholder  inquired  whether  it  was  the  intention  of  the  directors  to 
follow  the  valuable  precedent  they  had  set,  and  to  call  the  shareholders 
together  half-yearly  instead  of  annually. 

The  Chairman  said  that  they  were  in  a  difficulty  in  having  to  give  four 
months'  notice.  It  was  a  very  expensive  process  to  get  the  charter 
altered,  and  they  were  anxious  to  avoid  incurring  more  legal  charges  than 
were  absolutely  necessary.  He  should  be  glad  to  know  whether  it  was 
the  general  wish  of  the  shareholders  to  hold  a  meeting  half-yearly.  (Such 
a  wi<^h  having  been  generally  expressed  by  the  meeting,  he  continued.) 
In  that  case  he  thought  there  was  a  way  of  getting  over  the  difficulty 
without  going  to  the  government  for  an  alteration  of  the  deed,  and  he 
gave  notice  that  they  would  hold  another  meeting  next  November,  thus 
*  giving  twelve  months'  instead  of  four  months'  notice.  That  notice  could 
be  repeated,  so  that  in  effect  their  meetings  in  future  would  be  half-yearly. 
He  had  nothing  more  to  do  except  to  thank  them  in  the  name  of  the  board 
for  their  attendance  that  day. 

A  Shareholder  stated  that  on  the  last  occasion  of  their  meeting  he 
found  fault  with  the  slow  progress  of  the  directors  ;  he  designated  them 
the  slow  coach,  and  thought  that  it  was  necessary  to  throw  a  little  more 
energy  into  the  business.  Although  he  had  great  faith  in  the  director- 
^ip,  he  had  come  there  to  propose  certain  resolutions  in  reference  to  a 
reformation  in  the  mode  of  conducting  their  business ;  but  from  a  con- 
sultation with  several  gentlemen  it  was  apparent  to  him  that  his  resolu- 
tions  would  not  meet  with  the  accord  of  the  meeting,  and  he  should  not 
ther^ore  propose  them.  (Cheers.)  He  complained,  however,  that  the 
Male  of  remuneration  for  the  directors  was  too  high. 

The  Chairman  explained  that  the  board  had  never  hitherto  taken  the 
full  rate  of  remuneration  of  £3,000  unless  there  was  an  £S  per  cent,  divi- 
dend,  and  should  not  do  so  if  the  dividend  did  not  reach  that  amount  in 
the  present  year.     (Cheers.) 

Mr.  Kunn  stated  that  he  had  received  information  that  one  of  the 
directors  had  overdue  bills  at  the  bank,  and  inquired  whether  any  loss 
had  been  sustained  from  bills  of  that  diaracter  1 

The  Chairman  pointed  out  that  the  report  of  the  auditors  stated  that 

they  had  examin^  the  balance-sheet  and  annexed  profit  and  loss  account, 

wi^  the  hooksy  vouchers,  and  securities  at  the  head  office  in  London,  and 

vith  the  detailed  returns  and  balance-sheet,  and  that  they  certified  as  to 

their  conectness  and  satisfactory  character.     With  respect  to  overdue 

hOJs,  it  was  true  they  had  bills  of  that  character  to  the  amount  of  £800 

hdd  by  one  of  the  directors,  but  whether  that  was  an  exaggerated  or 

eitraoniinajy  amount  they  were  able  to  judge —  (**  No,  no,"  and  cheers) 

—particularly  when  they  had  ample  security  for  the  full  amount.    He 

aigkt  also  say  that  the  director  in  question  had  resigned. 

A  Shareholder  inqtiired  if  an  od  interim  dividend  which  might  be  de- 
dand  could  he  decslared  by  the  shareholders ;  or  if  not,  whether  it  ought 
oot  be'delayed  tiU  the  annual  meeting  ? 


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46  Hibernian  Bank. 

The  Chairman  replied  he  was  afraid  that  they  oould  not  do  that ;  and, 
moreover,  the  board  were  of  opinion  that  as  soon  as  they  had  the  accounts 
quite  clear,  and  they  found  that  they  oould  declare  a  dividend,  it  was 
more  satisfactory  to  the  bulk  of  the  shareholders  that  the  dividend  should 
be  declared  and  paid  as  soon  as  possible.     (Cheers.) 

In  reply  to  a  further  question. 

The  Chairman  explained  that  the  directors  only  declared  the  ad  interim 
dividend;  the  shareholders  themselves  declared  the  dividend  at  the 
annual  meeting. 

A  Shareholder  inquired  whether  there  was  any  probability  uf  a  further 
call  being  made. 

The  Chairman — None  whatever.  In  fact,  as  the  whole  of  the  capital 
had  been  paid  up,  the  only  mode  of  increasing  the  capital  would  be  by  a 
new  issue  of  shares,  whidi  would  only  be  doue  after  very  considerable 
deliberation  and  with  ample  notice.  There  was  no  intention  of  doing 
anything  of  the  kind  at  present.  He  also  stated,  in  reply  to  a  question 
from  a  shareholder,  that  it  was  not  the  intention  of  the  directors  to  fill 
up  the  vacancy  occasioned  in  the  board  by  the  resignation  of  Mr.  Mac- 
master  ;  that  they  considered  the  board  quite  large  enough,  and  that  they 
proposed  not  to  fill  up  vacancies  that  might  arise  until  it  was  reduced  to 
its  legal  minimum  of  eight  or  ten.     (Cheers^ 

On  the  proposition  of  the  Rev.  R.  C.  Gazeley,  seconded  by  Mr.  H. 
Leatherdale,  a  cordial  vote  of  thanks  was  given  to  the  chairman  and  the 
board  of  directors  for  their  able  maoagement  of  the  bank,  and  the  pro^ 
ceedings  terminated. 


HIBERNIAN  BANK. 


Thb  annual  general  meeting  of  the  shareholders  in  this  bank  was  held  on 
the  5th  December,  at  the  bank,  Castle  street,  Dublin ;  John  Rafferty,  Esq., 
governor,  in  the  chair. 

The  following  statement  of  accounts  and  report  were  submitted  to  the 
meeting : — 

Abstract  qf  the  Affairs  cf  the  Company,  to  Z\st  October, 

l>r. 

Paid-up  capital      £250,000    0  0 

Amount  due  on  current  and  other  accounts  and  deposit  receipts  593,268    9  4 

Balance        98,126  17  7 


£941,395    6  11 


Cr. 

Bills  discounted     £548,820  10  1 

Loans  on  government  stock  and  other  securities        201,228    4  8 

Branches  and  agencies     52,733  13  7 

Bank  premises        8,664  14  6 

Cash  and  government  stock  and  debentures 129,958    4  1 

£941,395    6  11 


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Hibernian  Bank.  47 


PROFIT  A3ID   LOOS. 


0     0 


>:Ti*nd.  June,  1864  £8,750     ^    „ 

^-  Dtcrinber        ...    _ 12,5<'0     0     0 

5,000     0     0 
1   11 


3«a:al.l.iabtfQl  debt  fund  ^,,,_, 

i^rfand  79,2'-3 


£&i&oe  carried  to  next  account 1^343  15     % 


£10'^..876  17     7 


Eahcce  31st  Oct.,  1863,  £88,033.  1*.  lid.;    less  dividend  paid 

Bee.,  1^63,  £S,  750      £79,2S3     111 

Ket  pn6t  for  Tear  ending  31st  Oct.,  1864       27,593  15    8 

£106,876  17     7 


BESSaVB  FUHO. 

Prwent  amount     £79,283     1  11 


^  Tour  board  submit  the  foregoing  Btatement  of  the  accounts  for  the  past 
fear,  and  feel  aatirfaction  in  referring  to  the  result,  which,  although  in 
some  degree  attributable  to  the  enhanced  value  of  money,  is  an  evidence  that 
T^jnr  bank  has  maintained  its  high  position,  notwithstanding  the  very  active 
ind  increasing  competition  in  banking  in  this  country.  The  accounts  now 
prsented  show  a  net  profit  on  the  year's  transactions  of  £27,593. 15«.  8d., 
oin  of  which  a  dividend  of  3^  per  cent,  for  the  half-year  ended  Ist  May 
Ust  has  been  paid,  leaving  a  sum  of  £18,843.  lbs.  8d.  which  the  directors 
recommend  to  be  disposed  of  in  the  following  manner,  vi2.,  £12,400  in  the 
payment  of  a  dividend  at  the  rate  of  10  per  cent,  per  annum  (free  of  incon^e 
tax)  for  the  half-year  ended  Ist  November  last,  £5,000  to  be  set  aside  as  a 
proviaon  for  bad  and  doubtful  debts,  and  the  balanoe,  £1,343.  15«.  8d.,to 
be  carried  forward.  Your  board,  anxious  to  avail  themselves  of  every  fa- 
vourable opportunity  of  forwarding  your  intere8ts,and  extending  your  sphere 
of  usefulness,  have,  since  the  last  meeting,  at  the  instance  of  gentlemen  of 
pnsitifin  and  local  influence,  established  branches  in  Kilkenny  and  Tulla- 
more,  and  in  a  few  days  another  will  be  opened  in  the  flourishing  assize 
town  of  Kaas,  which  up  to  this  has  not  had  the  advantage  of  any  banking 
establishment,  from  all  of  which  your  directors  are  justified  in  expecting 
very  profitable  results.  In  making  this  announcement,  the  directors  take 
OQcasion  to  observe  that,  in  order  to  maintain  the  efficiency,  to  promote  the 
pro^ieritj,  and  to  preserve  the  confidence  so  long  enjoyed  by  this  useful 
Qompany,  no  efibrt  on  their  part  has  been  wanting,  and  they  rely  with 
confidence  on  your  co-operation  to  assist,  as  well  in  increasing  th  2  income 
Si  in  promoting  the  general  prosperity  of  this  purely  Irish  establishment, 
so  estaUishment  founded  on  capital  realised  by  Irish  industry,  and  a^brding 
banking  accommodation  in  Ireland  to  its  traders  and  merchants.  To  the 
Ticancies  on  the  directory,  caused  by  the  resignation  of  Mr.  William 
O'Brien  Batler  and  Alderman  Moylan,  your  board  recommend  for  election^ 
00  Thizisday,  the  15th  instant,  Mr.  P.  Byrne Darcey  and  Mr.  James  F.  Lom- 
l^gentlemen  weU  calculated,  from  their  high  mercantile  position  and 
cDoiffleraal  habits,  to  advaxioe  the  business  and  promote  the  interests  of 
joor  company/' 


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48  Netc  Zealand  Banking  Corporation. 

The  rejwrt  having  been  read,  the  following  resolutions  were  proposed:  — 

Moved  by  the  chairman,  seconded  by  Alderman  Campbe]!,  and  resolved: 
that  the  report  now  read  be  received,  adopted,  and  entered  on  the  minutes . 

Moved  by  the  chairman,  seconded  by  Alderman  Campbell,  and  resolved  : 
that  a  dividend  for  the  half-year  ended  Ist  November  last,  be  paid,  at  the 
rate  of  10  per  cent,  per  annum  (free  of  income  tax)  on  the  paid-up  capital 
of  the  company. 

Moved  by  the  chairman,  seconded  by  Thomas  Dillon,  Esq.,  aiid 
resolved :  that  the  books  for  transfer  be  closed  from  this  day  until  the  12th. 
inst.,  and  that  the  dividend  be  payable  on  and  after  said  day  to  all  holders 
of  the  company's  stock  on  this  day. 

Moved  by  Alexander  Comyns,  Esq.,  seconded  by  Edward  Nolan,  Esq., 
and  resolved :  that  the  marked  thanks  of  the  meeting  are  due  and  hereby 
given  to  the  board  of  management,  the  secretary,  and  assistant  secretary  of 
the  bank,  for  their  exertions  in  promoting  the  interests  of  the  establiHh- 
ment. 

Moved  by  Alezander  Comyns,  Esq.,  seconded  by  Alderman  Tarpey,  and 
resolved  :  that  fche  thanks  of  the  meeting  be  given  to  John  Balferty,  Esq., 
for  his  proper  and  dignified  conduct  in  the  chair. 


NEW  ZEALAND  BANKING  CORPOBATION. 

The  second  half-yearly  meeting  was  held,  on  the  6th  December,  at  the 
offices  of  the  company,  in  New  Broad  Street ;  Mr.  S.  J.  Russell  presided, 
in  the  unavoidable  absence  of  Mr.  Hankey,  the  chairman,  and  the  Lord 
Mayor,  the  deputy-chairman. 

The  following  report  was  taken  as  read  : — 

"  The  directors  have  much  pleasure  in  submitting  to  the  shareholders 
the  audited  accounts  of  the  bank  up  to  the  15th  November  last.  The  net 
sum  available  for  division,  inclusive  of  amount  received  on  premiums,  as 
appears  by  the  profit  and  loss  account,  amounts  to  £7,287.  95.  6d. ;  this  the 
directors  propose  to  appropriate  as  follows  :  — To  payment  of  a  dividend  at 
the  rate  of  10  per  cent,  per  annum  for  the  preceding  six  months  ending 
1 5th  October  last,  £2,042.  17».  lOd. ;  to  write  off  preliminary  expenses, 
£529. 17«.  (£500  being  the  amount  required  to  be  annually  written  off' 
pursuant  to  the  articles  of  association)  ;  to  r&serve  fund,  £4,000 ;  carried 
forward  to  next  account,  including  rebate  of  bills,  £714. 14«.  8d.  In  their 
last  report  the  directors  referred  to  negotiations  then  pending  with  a  land 
mortgage  company,  who  proposed  to  invest  a  considerable  sum  on  mortgage 
through  the  agency  of  the  bank.  They  have  now  the  pleasure  to  announce 
that  the  arrangement  has  been  carried  into  effect  upon  satisfactory  terms. 
The  directors  also  referred  to  a  proposal  to  form  a  local  board  in  Dunedin, 
which  was  still  under  consideration  at  the  time  of  the  despatch  of  the  last 
mail.  During  the  past  six  months  some  heavy  colonial  failures  have  oc- 
curred, but  the  bank  has  not  been  affected  in  anyway,  the  directors  having 
been  anxious  rather  to  confine  than  extend  their  operations.  In  pursuance 
of  the  articles  of  association,  the  following  directors  retire  in  rotation, and 
being  eligible,  offer  themselves  for  re-election  accordingly — ^viz.,  the  lUght 
Honourable  the  Lord  Mayor ;  Henry  Alers  Hankey,  Esq. ;  and  Benjamin 
Hardwick,  Esq." 


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Kew  Zealand  Banking  Corporation.  49 

Bakmce-shect,  \5th  November^  1864. 

l>r. 

CK^Jtal— 60.000   Bbares  at  £10,   £600,000.  Paid  up,    £1   on 
*  4<\CwX)   shares,    first    issue,   £40,000 ;   paid   up,    £1   on 
20,<j<M)  shares,  second  issue,  £15,490  ;  calls  paid  in  advance, 
£ll,6.>0'£57,140  ;  less  calls  not  due  till  the  15th  Decem- 
ber, 1864,  £3,191.  5« £53,948  15     0 

Amount  due  hj  the  hank  for  customers'  balances,  deposit  and 
other  accounts,  acceptances,  letters  of  credit  and  other 
fiabilities  171,536     1   11 

Bank  premises  redemption  fund,  Dunedin        125    0    0 

Profit  and  loss— Balance,  15th  April,  1864  £591.  Ss.  Id.; 
premiams  on  shares,  £3,872.  lOf.;  gross  profit  to  date,  as 
per  Profit  and  Loss  Account,  £5,760.  1«.  Id 10,133  19    2 

£242,743  16     1 


Or. 
Ca5h  on  hand  and  at  call  at  head  office  and  Dnnedin  branch      £34,954    4  10 
BiUs  rec^Table,  bills  discounted,  loans  to  customers  and  other 

securities  194,449    7  10 

Bank  premises,  furniture,  fixture8,&c.,Dunedin,and  head  office  5,463  16    9 

Preliminary  expenses— London  £3,000;  New  Zealand  £2,029. 

17*.     ' , 5,029  17    0 

Current  expenses,  including  salaries,  directors'  and  auditors' 

fees,  rent,  stationery,  and  miscellaneous  expenses,  at  head 

office  and  Dunedin 2,846    9    8 


£242,743  16     1 


Prq/U  cmd  Lots  Account,  from  \5th  April  to  15th  November^  1864. 

Dr. 

Current  expenses,  &c.«  as  aboTO £2,846    9    8 

Balance  down         7,287    9     6 

£10,133  19    2 


Cr. 

Balance  ^iii  hut  account,  15th  April,  1864 £591    8  1 

PiRiinunis  on  shares  ...    ^ 3,872  10  0 

Gfoasprofit,  including  di8count,rebate,commi8sion,interest,&c.  5,670    1  I 

£10,133  19  2 


brought  down       £7,287    9    6 

The  Chairman  tmsted  that  the  meeting  would  consider  the  present 
report  as  satufactoiy  as  the  last.  The  balaiice-Bheet  told  its  own  story. 
In  the  amount  of  profit  shown  there  were  six  weeks  of  the  Dimedin  branch 
not  included,  but  which  would  be  carried  to  the  profits  of  the  current 
ludf-rear.  They  had  from  the  proceeds  of  the  past  half-year  been  enabled 
to  fet  aside  £4j00O  to  the  formation  of  a  reserve  fund.  They  proposed 
aiio  to  vay  a  diTidend  at  the  rate  of  10  per  oeDt^j>er  annimi,  amounting  to 
£2^42  j^Yin^  a   balance  of  £714  in  hand.    This  was  a  result  which  he 

Digitized  by  VjOOQIC 


60  New  Zealand  Banking  Carporation. 

thought  should  be  gratifying  to  the  shareholderg.  He  was  happy  to  say 
that  during  the  recent  commercial  crisis  they  had  made  no  bad  debts, 
having  been  very  careful  to  place  their  money  out  only  in  such  a  way  as 
was  safe  as  well  as  beneficial  to  the  company.  Under  these  circumstances, 
he  thought  the  meeting  would  give  credit  to  the  directors  for  having  done 
their  duty.  Since  the  last  meeting  was  held  Mr.  Hardwick  had  resigned 
his  office  of  solicitor  to  the  company,  and  Mr.  Kimber  had  been  appointed 
in  Iiis  place.  Considering  the  large  stake  that  Mr.  Hardwick  had  in  the 
bank,  the  deep  interest  he  took  in  it — for  it  might  almost  be  said  to  be  a 
child  of  his  own — the  directors  felt  that  it  would  be  for  the  general  benefit 
if  they  oould  secure  that  gentleman's  services  and  influence  as  a  member 
of  the  board.  They  had  consequently  added  his  name  to  the  direction. 
He  would  retire  at  the  present  meeting  by  rotation,  and  he  had  no  doubt 
that  the  shareholders,  confirming  the  view  of  the  directors,  would  re-elect 
him.     (Hear,  hear.)     He  moved  in  conclusion  the  adoption  of  the  report. 

In  reply  to  a  question  from  a  shareholder,  and  in  seconding  the  report, 

!Mr.  Hardwick  said  that  the  directors  were  fully  impressed  with  the^ 
necessity  of  having  an  efficient  local  board  and  an  efficient  local  audit  in 
New  Zealand,  and  arrangements  were  in  progress  for  that  purpose.  The 
formation  of  an  efficient  local  board  was  a  matter  of  some  difficulty,  f^a  those 
who  represented  the  bank  as  directors  in  the  colony  must  be  men  of 
position,  who  would  bring  influence  and  business  to  the  concern,  and  at  the 
same  time  men  who  would  not  make  use  of  their  power  as  directors  for 
their  own  private  ends.  (Hear,  hear.)  The  board  had  sent  out  to  Mr. 
M'Kenzie,  their  manager,  letters  of  introduction  to  an  eminent  firm  in 
Dimedin  with  a  view  of  inducing  them  to  join  the  bank.  He  was  not  at 
liberty  at  present  to  mention  the  name  of  the  firm,  but  when  the  negoti- 
ations were  so  far  advanced  that  it  could  be  stated  it  would  of  itself  be  a, 
sufficient  guarantee  for  the  respectability  and  influence  of  the  parties.  In  re- 
gard to  the  question  of  a  local  audit,  although  the  board  had  every  confidence 
in  their  manager,  Mr.  M'Kenzie,  they  were  quite  prepared  to  admit  that 
all  were  better  for  looking  after — even  directors — (hear,  hear) — and  they 
had  accordingly  sent  out  instructions  requiring  that  the  next  balance-sheet 
should,  besides  being  confirmed  by  himself  and  his  accountant,  be  sub- 
mitted to  and  regularly  audited  by  a  professional  accountant  in  the  colony. 
(Cheers.)  He  was  sorry  he  could  not  at  present  report  that  they  hswi 
elected  directors  for  the  colony,  but  they  must  bear  in  mind  that  the 
course  of  posts  between  New  Zealand  and  London  took  a  considerable 
time. 

In  reply  to  a  further  question  Mr.  Hardwick  added  that  the  qualifica- 
tion was  the  same  for  the  New  Zealand  as  for  the  London  directors. 

The  motion  adopting  the  report  was  then  put  and  carried  unanimously. 

The  dividend  at  the  rate  of  ten  per  cent,  per  annum  free  of  income  tax 
was  then  declared,  payable  on  the  8th  inst. 

On  the  motion  for  re-electing  the  retiring  directors,  viz.,  Mr.  Hankey,the 
Lord  Mayor,  and  Mr.  Hardwick,  some  question  arose  as  to  the  power  of 
the  meeting  to  increase  the  number  of  the  board  by  confirming  the 
election  of  Mr.  Hardwick  ;  but  on  its  being  explained  by  the  solicitor  on 
reference  to  the  deed  of  settlement  that  the  maximiun  number  was  ten, 
whereas  Mr.  Hardwick  would  make  only  the  sixth,  the  resolution  was 
carried  ihem.  con. 

Twenty  guineas  each  were  awarded  to  the  auditors  for  their  services. 

A  Shareholder  considered  the  remimeration  provided  by  the  deed  of 


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Bank  <tf  British  North  America.  61 

stdement,  Yiz.,  i^l^OOO  a  year  and  10  per  oent.  upon  all  profits  divided  over 
sii  par  cent,  per  annum,  too  large. 

Mr.  Hirdwick  said  that  the  directors  had  not  acted  up  to  the  clause 
T^erred  to  in  the  articles  of  association.  They  had  not  even  taken  the 
£1,000,  bat  for  the  whole  eighteen  months  during  which  the  bank  had 
been  in  existence  they  had  only  taken  £800. 

A  Tote  of  tha-Tilca  to  the    chairman  and  directors  concluded  the  pro- 


BANK  OF  BRITISH  NORTH  AMERICA. 

A  QEnRAX  meeting  of  the  proprietors  of  this  bank  was  held  on  the  6th  of 
December,  at  their  banking-house,  7,  St.  Helen's-place,  Bishopsgate-street ; 
R.  Carter,  Esq.,  in  the  chair. 
The  following  report  was  taken  as  read  : — 

*^  Since  the  last  half-yearly  report  was  issued  the  severe  and  prolonged 
stringoicy  in  the  money  market  of  Europe  has  exercised  a  paramount 
infiuence  in  the  banking  and  commercial  world,  the  direct  effect  of  which 
upon  t£at  portion  of  the  bank's  capital  which  has  been  employed  in  London 
has  been  favourable ;  but  it  has  at  the  same  time  injuriously  affected  the 
commercial  and  trading  classes  in  the  colonies.    The  aim  of  your  directors 
in  managing  the  affairs  of  the  bank  u.t  its  branches  has  been  to  extend  to 
their  regular  customers  all  the  accommodation  that  could  be  afforded  with 
a  due  regard  to  the  interests  of  the  corporation.     The  difficulty  of  success- 
fully combining  these  objects  is  much  increased  by  the  legal  restrictions 
imposed  upon  banking  by  the  local  legislatures^    The  shareholders  are  aware 
xbat  the  banks  are  not  cdlowed  to  charge  more  than  7  per  cent,  interest  in 
Canada,  nor  more  than  6  per  cent,  in  Nova  Scotia  and  New  Bnmswick, 
while  the  minimum  rate  of  the  Bank  of  England  has  fluctuated  between  6 
and  9  per  cent,  during  the  last  six  months,  and  in  British  Columbia  and 
California  rates  of  12  per  cent,  and  upwards  are  generally  current.    Ic  is 
to  be  hoped  that  a  system  so  artificial,  which  must  necessarily  divert  capital 
from  the  Eastern  colonies,  will  engage  the  attention  of  colonial  statesmen, 
and  lead  ultimately  to  such  amendments  in  the  laws  as  will  leave  the  price 
of  mon^,  like  that  of  other  oonunodities,  to  the  unrestrained  action  of 
supply  sod  demand.     The  business  of  the  bank  at  Victoria,  Vancouver 
Wjad^  has  steadily  increased ;  an  office  for  melting  and  assa3dng  gold  has 
been  ertablished  in  the  bank  premises,  to  which  a  duly  qualified  assayer 
has  been  appointed,  and  no  effort  has  been  wanting  on  the  part  of  your 
directors  to  meet  the  requirements  of  this  prosperous  colony.    As  contem- 
I^bted  in.  the  last  report,  an  agency  has  been  established  at  San  Francisco, 
in  California,  and  your  directors  feel  warranted  in  now  stating  that  its 
pra^^ects  are  very  encouraging.    The  management  of  this  agency  has  been 
entrosted  to  two  experienced  ofiLoers  long  in  the  service  of  the  bank,  and 
their  eodeavourSy  combined  with  the  established  character  of  this  biuik, 
^ve  already  obtained  a  fair  measure  of  support  from  the  mercantile  com- 
mmityin  that  city.     The  returns  from  all  the  branches  during  the  current 
/Mr  exhibit  a  satisfactory  increase  of  profit ;  and  your  directors  are  amply 
jngtiiSed  ia  declaring  the  customary  dividend  of  3  per  cent,  for  the  half- 
year  free  of  income  tax,  which  will  be  payable  on  the  6th  January  next. 
A$  aireuly  notified  by  circular,  the  present  and  future  dividends  will  be 


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52  .  Bank  cf  Sritish  North  America. 

sent  by  poet  to  the  address  of  each  proprietor,  or  be  paid  to  his  banker  or 
agent,  as  he  may  prefer,  thus  dispensing  with  the  necessity  for  personal 
attendance  at  the  bank  for  receipt  of  dividends.  A  vacancy  having  occurred 
in  the  direction  by  the  retirement  of  Oliver  Farrer,  Esq.,  a  new  director 
will  be  elected  at  an  extraordinary  general  meeting,  to  be  held  at  the  con- 
clusion of  the  general  meeting." 

The  Chairman,  in  moving  the  adoption  of  the  report,  said,  *'  I  have  to 
address  a  very  few  observations  to  the  meeting  on  the  present  occasion  ; 
and  in  the  first  place  I  must  express  to  you  the  very  deep  pain  with  which 
the  directors  have  to  announce  to  you  the  very  sudden  death  of  one  of  their 
number  (Mr.  Jaffray),  the  gentleman  who  so  ably  and  so  satisfactorily 
presided  over  the  meeting  in  June  last,  who  had  not  been  very  long  at  the 
board,  and  who  had  all  the  strength  and  energy  of  youth — a  man  of  the 
highest  character,  of  first-rate  abilities,  and  of  the  highest  qualitiea  aa  a 
man  of  business,  and  who  unfortunately  for  the  board  and  for  the  share- 
holders has  been  taken  from  us  after  only  a  few  days'  illness,  he  having 
expired  only  on  Sunday  last.     The  feeling  of  the  directors  would  have 
been  to  have  postponed  this  meeting  if  time  had  allowed,  feeling  so  deeply 
as  they  do  that  both  they  and  the  bank  have  sustained  so  deep  a  loss. 
Under  the  circumstances  I  will  not  refer  to  any  questions  which  may  lead 
to  any  difference  of  opinion,  and  I  hope  that  no  such  questions  will  arise. 
The  shareholders  will  see  in  the  report  that  the  progress  of  the  bank  during 
the  last  six' months  has  been  of  a  favourable  character,  and  that  the  profits, 
as  far  as  they  have  come  before  us,  have  been  in  advance  of  those  of  former 
years.    You  are  aware  that  on  this  occasion  it  is  not  possible  to  lay  the 
accounts  before  you,  because  the  business  in  progress  at  the  branches  at 
the  very  busy  period  of  their  short  year,  they  being  locked  up  by  ice  for 
nearly  six  months,  renders  it  difficult,  if  not  impossible,  to  bring  the  ac- 
counts before  you  half-yearly.      The  directors,  however,  have  made  the 
usual  inspection  of  the  acooimts,  and  the  result  is  of  a  very  favourable 
nature.     I  may  add  that  the  investigation  which  has  been  made  of  the 
accounts  on  the  present  occasion  is  similar  to  that  which  has  been  made 
during  every  year  of  the  bank's  existence,  and  on  every  occasion  when 
they  had  been  able  to  make  up  the  final  accounts  they  had  found  some  ad- 
dition, little  or  great,  to  make  to  the  profits  beyond  those  which  were 
estimated  at.  this  time  of  the  year.     There  is  every  reason  to  believe,  not 
merely  that  we  shall  have  such  an  increase  to  report  next  June,  but  that 
the  increase  will  be  found  larger  than  usual  when  the  accounts  are  finally 
made  up.     (Hear,  hear.)    With  these  observations  I  beg  to  move  that  the 
report  be  received  and  adopted." 

Mr.  Brooking,  director,  seconded  the  motion. 

Mr.  Wheeler,  referring  to  the  statement  made  by  the  chairman  as  to 
the  satisfactory  increase  likely  to  take  place,  and  the  beneficial  results 
of  the  last  half-year's  working,  inquired  whether  it  was  contemplated  by 
the  directors  to  give  anything  in  the  way  of  bonus  in  June.    (Hear,  hear). 

The  Chairman  stated  that  the  course  of  proceedings  of  this  bank  had 
always  been  to  declare  a  dividend  in  the  summer  upon  the  actual  accounts 
of  the  previous  yeeur.  At  the  end  of  the  year  they  merely  made  an 
estimate,  they  having  first  ascertained  by  examination  that  they  could 
prudently  and  properly  pay  a  dividend  to  the  same  amoimt  as  that  paid 
in  the  summer.  They  did  not  anticipate  what  would  be  the  state  of 
things  next  summer.  He  assured  the  proprietors  that  if  they  could  do 
as  they  had  sometimes  done  before,  add  a  little  to  the  dividend,  nothing 


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Hank  qf  British  North  America.  53 

vonid  delight  them  more  than  to  do  so ;  but  snch  a  question  was  never 
e&teftai&ed  at  this  meeting. 

Mr.  Peine  said  that  he  quite  concurred  in  the  sympathy  which  the 
db-ectnrs  had  expressed  for  the  loss  of  the  late  Mr.  A.  W.  Jaffray ;  but 
rrfemng  to  the  dividend  mentioned  in  the  report  he  wished  to  know 
▼hntiier,  in  the  opinion  of  the  board,  the  time  had  not  arrived  when  they 
ihonid  not  wholly  reconstruct  the  bank,  and  with  that  view  ho  would  put 
veries  of  questions  which  he  had  drawn  up  after  yarious  conversations 
which  he  had  had  with  gentlemen  in  reference  to  the  Canadian  portion  of 
their  business.  He  wonld  ask — ^1.  Has  it  not  been  the  experience  of  the 
bdak  tiiat  when  money  is  cheap  in  Canada  the  customers  of  this  bank  go 
ebewhere  for  their  discounts,  and  when  money  gets  dear  they  return  ? 
2.  Has  money  not  been  as  regularly  returned  from  Canada  when  cheap, 
sod  drawn  from  this  market  when  dear — the  reason  being,  as  stated  in 
the  report,  6  to  7  per  cent,  is  the  legal  rate  in  Canada  ?  3.  Have  the 
agents  in  Canada  not  inrariably  received  those  customers  who  thus  go 
and  oome — in  fact,  cannot  do  otherwise  ?  4.  Have  the  profits  for  the  past 
twc  yean  not  been  chiefly  from  money  lent  in  London ;  and  if  the  agents 
in  Canada  had  not  drawn  away  funds  from  this  side,  would  not  our  profits 
have  been  larger  f  If  this  be  so,  why  continue  the  Canada  business  ? 
6.  Could  we  not,  in  addition  to  our  other  business,  make  considerable 
profits  by  receiTing  money  on  deposit  as  other  banks  do,  and  lend  it  out 
to  the  discount  houses,  on  the  Stock  Exchange  and  unquestionable 
securities?  Would  not  the  position  and  credit  of  this  bank  (with  a 
million  paid  up)  command  d^>osit8  to  the  extent  of  some  millions  ?  and  if 
Qcdy  thi^  millions  were  received,  and  1  per  cent,  per  annum  made  by  the 
torn,  we  should  have  £30,000  additional  annual  profit,  adding  in  this  alone 
50  per  cent,  to  our, dividend,  and  with  very  little  additional  expense.  Is 
the  diarter  worth  this  ? 

The  Chairman,  with  respect  to  the  first  question,  said  that  although 
some  cases  might  have  arisen  where  customers  had  gone  away  and  re- 
turned, the  managers  would  be  very  deficient  if  they  adlowed  the  cus- 
tonen  to  treat  them  in  that  way  as  a  rule,  and  he  believed  there  was  no 
reasoDable  ground  for  any  such  imputation.    In  regard  to  the  next  question, 
he  sdmitted  that  as  far  as  the  public  were  concerned  the  natural  course 
of  things  wonld  be  for  money  to  be  returned  from  Canada  when  cheap, 
and  drawn  from  this  country  when  dear ;  but  it  was  the  object  of  the 
bank  to  prerent  such  a  proceeding,  and  he  assured  the  hon.  proprietor 
that  the  bank  managers  were  quite  alire  to  the  effect  on  its  interest  of 
such  a  course  of  proceeding.    It  was  not  the  fact  that  at  any  time  the 
profits  of  the  bank  had  been  derived  chiefly  from  money  lent  in  London. 
Some  two  years  ago,  when  money  was  low,  they  had  a  good  deal  of  their 
capital  here,  but  it  only  yielded  a  small  portion  of  the  profits  of  the  bank. 
Just  now,  when,  according  to  the  theory  of  this  question,  they  would  have 
no  m<Miey  in  London,  it  did  happen  that  they  had  got  rather  a  large 
portioo  o€  their  capitsl  here  which  they  were  employing  at  a  high  rate  of 
iotaert,and  it  was  probably  yielding  a  larger  proportion  of  the  full  profits 
than  money  employed  here  had  done  at  any  previous  period.    In  reply 
^  ^e  fifth  question,  he  might  observe  that  the  bank  was  established  for 
the  ezpr«gs  purpose  of  carrying  on  business  in  British  North  America. 
The  deed  of  aattlement  dbntemplated  that,  and  nothing  else.    They  could 
Bot  diaage  that  state  of  things,  snd  the  directors  had  no  power  to  employ 
Bumey  reocdved  on  deposit  here.    They  must  conduct  the  business  accord. 
VOL.  XXV.  5 


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54  Bank  of  British  North  America, 

ing  to  the  deed  of  settlement,  and  he  did  not  believe  that  the  Bhareholders 
could  alter  that  state  of  things*  No  doubt  they  oould  receive  deposits 
and  lend  them  out  if  they  were  an  English  bank,  but  in  point  of  fact 
they  were  not.  The  charter  and  deed  of  settlement  authorised  them  to 
bank  and  do  banking  business  in  British  North  America  and  parts 
adjacent  thereto,  and  to  take  up  money  in  London  would  involve  a 
heavy  responsibility.  Whether  they  oould  legally  do  it  or  not  he 
was  not  prepared  to  say,  but,  at  all  events,  it  was  not  a  directors'  but  a 
proprietors^  question.  He  had  been  connected  with  this  bank  during  the 
twenty-eight  years  of  its  existence,  and  he  did  not  believe  that  the  enter, 
ing  into  the  business  of  taking  deposits  and  lending  them  to  discount 
houses  at  their  own  risk  would  be  a  very  popular  measure  with  the  share- 
holders. The  feeling  of  the  proprietors  of  this  bank  had  always  been  a 
strong  desire  to  carry  on  the  business  prudently  and  safely.  (Hear,  hear.) 
He  was  quite  aware  that  if  they  could  get  a  large  amount  of  deposits,  and 
make  only  1  per  cent.,  they  would  add  materia&y  to  their  profits,  because 
if  a  bank  with  £1,000,000  capital  got  deposits  to  the  extent  of  £20,000,000, 
they  of  course  got  20  per  cent. }  but  they  must  remember  that  those  large 
profits  were  never  made  without  large  accompanying  risks.  They  could 
not  extend  the  area  of  profit  without  extending  the  area  of  risk.  (Hear, 
hear.)  The  charter  itself  scarcely  contained  any  regulations  for  the 
management  of  the  bank,  but  it  recognised  the  deed  of  settlement,  in  ac- 
cordance with  which  the  business  was  carried  on.  Not  being  a  lawyer  he 
oould  not  undertake  to  say  how  far  they  could  get  the  deed  ^tered,  but  he 
believed  that  as  it  at  present  stood  any  single  shareholder  who  objected 
could  prevent  the  directors  from  altering  the  character  of  the  establish- 
ment. At  all  events  it  was  not  a  question  which  the  directors  ought  to 
initiate,  whatever  might  be  done  by  the  shareholders. 

A  Shareholder — Is  it  worth  while  to  do  business  in  a  country  where  you 
can  only  get  6  or  7  per  cent,  when  money  is  so  high. 

The  Chairman  said  that  the  proprietors  must  bear  in  mind  that  the  rate 
of  interest  in  London  for  some  time  past  had  been  very  exceptional,  and 
that  tLe  average  rate  of  interest  in  this  country  was  less  than  £6  per  cent. 
They  could  not  withdraw  their  business  from  Canada  when  money  wa» 
high  here  and  take  it  back  when  it  was  low.  If  they  gave  up  the  Cana- 
dian business  they  must  give  it  up  altogether.  He  was  reminded  that  the 
reason  why  there  was  so  much  capital  in  London  at  the  time  the  rates  were 
so  low  was  in  consequence  of  an  act  of  prudence  on  the  part  of  the  di- 
rectors. The  whole  of  the  capital  which  they  used  to  employ  profitably 
in  New  York  before  the  war,  was  entirely  withdrawn,  because  they  did  not 
think  (knowing  what  the  fluctuations  in  the  currency  must  be)  that  it  was 
prudent  to  leave  a  large  amount  of  their  capital  there.     (Cheers). 

Mr.  Macdougal  said  that  he  should,  under  the  painful  circumstances  of 
the  case,  and  tiie  gloom  thrown  over  the  meeting  by  the  death  of  Mr. 
Jafira^,  have  been  content  to  have  allowed  the  report  to  be  adopted  «ti5 
$ileni%o^  and  to  have  reserved  any  remarks  he  had  to  make  to  the  meeting 
in  June.  The  discussion,  however,  having  arisen,  he  would  earnestly  im. 
press  on  the  directors  to  restrict  their  Canadian  business.  He  considered 
that  the  directors  in  their  report  admitted  that  the  profits  in  Canada  wote 
less  than  they  were  here,  and  he  did  hope  that  means  would  be  taken  at 
least  to  employ  their  money  more  profitably  in- Vancouver'**  Island  and 
San  Francisco  than  they  could  in  Canada.  He  comph>ii^^  ^^^  with  a 
paid-up  coital  of   one  million  they  had  only  £900,000  of  circulation 


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London  Chartered  Bank  of  Australia.  55 

and  depofita,  which  waa  out  of  all  proportion  to  the  deposits  in  other 
hanks  with  tiie  same  capitaL  He  hoped  that  at  the  June  meeting 
\ht  chainnan  would  be  able  to  state  that  the  deposits  had  at  least  doubled, 
az»i  that  when  the  time  came  for  the  renewal  of  the  charter,  when  the 
deed  of  settlement  would  also  expire,  steps  would  be  taken  to  give  to  the 
dnBctan  powezs  to  extend  their  business,  which  they  did  not  at  present 

The  Ghainnan  explained  that  the  proportion  of  the  profits  made  by  the 
b«iik  was  not  so  large  in  London  as  in  the  colonies ;  and  with  respect  to 
the  charter,  he  reminded  the  hon.  proprietor  thai  it  would  expire  in  1870, 
but  not  the  deed  of  settlement,  which  was  for  all  time,  at  least  until  the 
shareholderB  diose  to  wind  up  the  concern.  With  respect  to  the  deposits, 
he  coold  not  endorse  the  anticipations  of  Mr.  Macdougal,  because  business 
was  too  actiTe  in  North  America  in  proportion  to  capital  to  expect  large 
depositB  to  be  made  in  banks. 

The  motion  having  been  put,  the  report  was  unanimonsly  adopted. 

The  meeting  was  then  made  special  for  the  election  of  a  director  in  the 
room  of  Mr.  Olirer  Farrer,  who  had  retired. 

The  Chairman  having  submitted  the  names  of  three  candidates,  Mr. 
H.  R.  Farrer  was  declared  elected  on  a  show  of  hands. 

Mr.  Fanrw  reffcomed  thanks  for  the  mark  of  confidence  reposed  in 


On  the  motion  of  Mr.  Macdougal  a  cordial  vote  of  thanks  was  given  to 
the  chainsan  and  directors,  and  the  proceedings  terminated. 


LONDON  CHABTEBED  BANK  OF  AUSTBALL^ 

Thi  half-yearly  meeting  of  this  company  was  held,  on  the  9th  of  December, 
rttheLondoD  Tavern ;  Mr.  W.  Fane  De  Salis  in  the  chair. 

ISie  Aaistant-Secretary  (Mr.  W.  M.  Toung)  having  read  the  advertise- 
nent  eaavemng  the  meeting,  submitted  the  following : — 


AhMtraet  qffrvfitand  loss  account  at  ZQth  JunCf  1864, 

Dirtfaid  nroposed  to  be  paid  viz.;  4  per  cent,  on  pud-np  cap- 
ital, in  half-year  ending  30th  June  1864,  (firee  of  income 
laz^     «••        •••        •■•        •••        ***        •••        •••        ••■ 

Aaoniit  proposed  to  be  carried  to  the  reserve  fhnd  this  half- 
year     »,•        •••        •••        •••        •••        •••        •••        ..• 

)  to  next  half-year.. 


Btfaooe  ouTied  over,  as  per  last  report...        ... 

lUmn^  ofPro&t  and  Loss  in  London  and  in  the  Colonies  for 
hsif'TeMT  ending  80th  Jane  1864,  after  deducting  current 
ffzpensea,  income  tax,  and  making  provision  for  bad  and 
ioiabtial  debts..*         •••        •••        •••        •••  ••• 


Bf  hfaaoa  fatoo^ti  dfifwn., 


£40,000    0    0 

5,000    0    0 
8,757    6    9 


£53,757    6    9 
£7,849    8  11 


45,908 

2 

10 

£53,757 

6 

9 

£8,757 

6 

9 

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66  London  Chartered  Bank  of  Australia. 

The  Chairman  observed  that  the  meeting  was  convened  for  the  sole 
purpose  of  declaring  a  dividend.  They  did  not  upon  these  occasions  submit 
a  report  or  annual  statement  of  accounts,  but  following  the  provisions  of 
the  deed  of  settlement,  they  circulated  amongst  the  shareholders  a  state- 
ment showing  the  resiilts  of  the  bank's  operations  for  the  half-year.  That 
statement  had  been  in  their  hands  some  days,  and  it  showed  a  disposable 
surplus  of  £63,767.  Cs.  9d.,  out  of  which  they  proposed  paying  the  share- 
holders a  dividend  after  the  usual  rate  of  eight  per  cent.  x>er  annum,  which 
would  absorb  £40,000.    They  proposed  also  to  place  £6,000  to  the  reserve 
fund,  which  would  then  amount  to  £86,000,  and  to  carry  forward  a  balance 
of  £8,767.  Os.  9d.,  which  was  about  £700  more  than  was  carried  forward 
on  the  last  occasion.     These  figures  spoke  for  themselves,  and  required  no 
comment  at  his  hands.     (Hear,  hear.)    As  regarded  their  affairs  in  the 
colonies,  no  matters  of  particular  importance  had  occurred  since  they  last 
met  which  would  require  any  lengthened  observations  on  his  part.     The 
panic  which  had  convulsed  the  markets  of  Europe,  and  which  had  also 
disturbed  the  markets  of  the  east,  introducing  great  fluctuations  in  the  value 
of  produce,  and  involving  many  individuals  in  large  losses,  had  in  no  way 
affected  the  Australian  colonies.    Hence  the  course  of  trade  there  had  run 
smoothly,  and  those  colonies  had  been  permitted  to  proceed  uninfluenced 
by  extraneous  events  in  their  wonderful  onward  progress  towards  wealth 
and  prosperity.     (Hear,  hear.)     Such  a  state  of  things  could  not  be  other- 
wise than  favourable  to  banking,  consequently,  as  might    have    been 
expected,  the  letters  they  received  from  their  managers  described  the  posi- 
tion «uid  prospects  of  the  bank  as  highly  satisfactory.     He  might  also 
mention  another  matter,  which  must  be  as  satisfactory  to  the  shareholders 
as  it  was  to  the  directors,  namely,  that  their  letters  stated  that  during  the 
past  half-year  they  had  sustained  no  losses.     (Hear,  hear.)    As  regarded 
their  affairs  at  home  he  knew  of  no  new  feature  which  he  ought  to  bring 
under   their-  notice,  unless  it  were  the  determination  which  had  been 
arrived  at  by  the  directors  since  the  last  meeting  to  accept  deposits  for 
fixed  periods  at  interest.    Until  recently  none  of  the  Australian  banks 
established  in  this  country  were  willing  to  accept  deposits ;   and  it  was 
perfectly  dear  that  while  communication  betwixt  the  colonies  and  England 
was  so  uncertain  and  so  protracted  as  it  was  formerly  it  would  have  been 
impossible  to  accept  them  with  any  advantage.      Now,  however,  that  a 
postal  intercourse  was  established  which  occupied  only  46  days,  and  that 
the  service  was  performed  with  almost  railway  regularity,  the  case  was 
altered.     The  directors  had  also  watched  with  interest  the  course  of  the 
Indian  banks  in  taking  deposits ;  they  found  that  those  banks  did  so  with 
great  success,  and  they  thought  the  time  had  now  arrived  when  they 
might  imitate  their  example.     (Hear,  hear.)     Their  impression,  was  that 
deposits  would  become  a  source  of  considerable  revenue  to  the  bank.    This 
would  be  obvious  to  the  shareholders  when  they  reflected  what  a  vast  field 
there  was  in  Australia  for  the  extension  of  their  business  and  the  profitable 
employment  of  capital.  Any  amount  they  could  raise  here  at  Englisn  rates  of 
interest  they  would  have  no  difficulty  in  emplojring  upon  undoubted  security 
at  colonial  rates,  and  the  difference  in  the  interest,  which  was  considerable, 
would  of  course  be  profit.     The  shareholders  would  be  able  to  assist  the 
'  directors  in  this  matter,  either  by  making  deposits  themselves  or  inflaenc- 
ing  their  friends  to  do  so ;  and  he  felt  sure  tiiat  they  would  gladly  co* 
operate  with  the  board  to  promote  the  interests  of  the  bank  in  this  respect. 
The  directors  on  their  part  had  put  their  dioulders  to  tiie  wheel,  and  not- 


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London  Chartered  Bank  of  Australia.  57 

Tithstandhig'the  high  rates  of  intereBt  that  bad  lately  ruled,  they  had 
imoQg  their  own  friends  and  connections — for  the  deposits  as  yet  received 
irom  the  general  pablic  did  not  amonnt  to  much — obtained  at  moderate 
nbs  a  sum   exceeding  £50,000    on  deposit  (hear,  hear),    and  he  felt 
MBured  that  by  their  assistance  they  would,  before  long,  have  offered  to 
tban  a  larger  sum  than  the  bank  would  probably  find  it  conyenient 
to  aooept.     The  rate  of   interest  to  be  allowed  by  the  Bank  to  their 
depisitors  would,  of  course,  fluctuate  with  the  market,  but  inasmuch 
as  the   profits    of     Australian    banking    were    larger    than    those    of 
Esglish  banking,  they  would  probably  be  able  to  aUow  from  a  half  to 
one  per  cent,  more  than  given  by  the  great  English  banks,  such  as  the 
London  and  Westminster,  and  the  Union  Bank,  which  would  be  an  addi- 
tional inducement  to  persons  to  dexKMit  with  them.     (Hear,  hear.)    There 
was  another  nuit^er   connected  with  their   home   stairs  to  which  he 
vuhed  to  refer.     They  were  aware  that  only  a  few  weeks  ago  the  ques- 
tion of  transportation    to    Australia   threatened   to    assume    a    shape 
which  mi^t    have    terminated  in    a   serious    difference    betwixt   the 
mother  country  and  her  colonies.    The  wise  and  prompt  concession  made 
hy  her  Majesty's  government  had  settled  that  question  at  once  and  for 
ever,  and  if  he  now  referred  to  it  it  was,  in  the  first  place,  to  report  to 
them  tiie  course  which  the  directors  thought  proper  to  take  upon  an  impor- 
tant question  deeply  affecting  their  interest ;  and  in  the  next  place,  to 
congratulate  them  upon  a  result  which,  in  lieu  of  separating  Australia  in 
ieehskg  from  England,  would  cement  more  closely  than  ever  that  union 
which  ought,  and  he  hoped  would,  always  exist  between  the  mother  country 
and  that  colon f  in  which  their  capital  was  invested.     They  would  readily 
tDidentand  that,  if  a  serious  difference  had  unfortunately  arisen  out  of  the 
Convict  question,  its  effects  would  have  acted  most  prejudicially,  not  as 
regarded  their  property  alone,  but  also  upon  the  vast  capital  employed  by 
England  in  her  Australian  commerce.     Under  these  circumstances  the 
directors  thought  it  was  due  to  the  interests  of  the  bank  to  make  a  repre- 
aeDtatioii  to  her  Majesty's  government,  expressing  a  hope  that  they  would 
terminate  as  speedily  as  possible  a  question  which  those  of  their  directors 
who  like  himself  had  lived  in  the  colonies  many  years, .  knew  well  the 
eobaial  public  felt  most  keenly  upon,  and  would  go  every  length  to  see 
evried.    He  was  able  to  state  that  the  course  they  took  in  the  matter  had 
been  received  with  the  highest  satisfaction  in  the  colonies,  and  it  would 
no  donbi  also  have  the  i^probation  of  the  shareholders.  (Cheers.)    As  re- 
gained her  Majesty's  government,  it  was  only  fair  to  conclude  that  the 
representations  of  the  directors,  added  to  the  firm  front  assumed  by  the 
mends  of  Australia  in  this  country,  were  not  whoUy  without  effect  in  in- 
fineocing  a  decision  so  fortunate  for  the  peace,  happiness  and  prosperity 
of  oor  colonies.     (Hear,  hear.)     He  concluded  by  moving  a  dividend  at 
the  rate  of  8  per  cent,  per  annum. 
Mr.  E.  G^laily  seconded  the  resolution. 

Mr.  Minton  inqnired  what  progress  was  being  made  in  respect  to  the 

hnadket  it  was   proposed  to  open   at  Brisbane.    He  also  stated  that, 

hMfiag  had  occaaion  to  go  to  the  Bank,  he  was  happy  to  say  that  he 

ncdred  £rom  its  ofBcers  the  fullest  information  in  reply  to  every  inquiry 

helud  made  and  hia  conviction  was  that  the  Bank  was  managed  not  only 

wiib  icreat  ability  and  energy,  but  above  all  with  great  integrity.    (Cheers.) 

The  Gbainnan,  in  reply,  stated  that  the  establishment  of  a  branch  at 

Brisbane  had  received  the  careful  attention  of  the  board.    Some  time  ago 


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58  London  and  Northern  Bank. 

they  determined  to  eetablish  it,  but  finding  that  other  banks  had  been 
before  them,  and  there  being  some  reason  to  doubt  whether  the  business 
they  trausacted  was  profitable,  and  finding,  above  all,  that  they  had 
already  dufficieut  employment  of  their  capitid,  they  deolined  for  the  present 
to  go  to  the  serious  expense  of  establishing  a  branch.  He  oould,  however, 
assure  the  hon.  proprietor  that  the  question  of  the  extension  of  their 
business,  not  only  to  Queensland,  but  to  New  Zealand,  was  at  present 
engaging  the  serious  attention  of  the  board,  and  the  shareholders  might 
depend  upon  it  that  on  the  first  favourable  opportunity  they  should  do  so. 
(Cheers.) 

On  the  motion  of  Mr.  H.  Wood,  seconded  by  Mr.  G.  C.  Eagle,  a  cordial 
vote  of  thanks  was  given  to  the  chairmaii  and  directors  for  their  able  and 
judicious  management  of  the  Bank. 

The  Chairman,  having  acknowledged  the  compliment,  proposed  a  vote 
of  thanks  to  the  inspector,  Mr.  J.  Bramwell,  and  other  officers,  for  their 
attention  to  the  interests  of  the  company 

The  motion  was  seconded  by  the  Deputy  Chairman,  and  Mr.  Bramwell 
having  returned  thanks  on  behalf  of  himself  and  his  brother  officers,  the 
proceedings  terminated. 


MADRID  BANK,  LIMITED. 

A  MEETIKO  of  the  shareholders  in  the  above  bank  was  held  on  the  IGth 
December  at  the  London  Tavern ;  Mr.  Daniell,  chairman  of  the  board  of 
directors,  in  the  chair. 

A  report  from  the  directors  was  read,  which  went  at  length  into  the 
difficulties  which  had  stood  in  the  way  of  the  formation  of  the  company — 
one  of  the  principal  of  which  was  the  rule  of  the  Stodc  Exchange,  which 
prevented  the  recognition  of  any  Spanish  company  by  that  bcdy.  The 
directors  under  the  circumstances  recommended  the  dissolution  of  the 
company,  and  the  chairman  moved  a  resolution  to  that  effect. 

A  long  and  rather  warm  discussion  took  place,  in  the  course  of  which 
the  directors  were  charged  with  having  neglected  the  true  interests  of  the 
shareholders  in  not  sooner  bringing  the  affidr  to  a  close,  before  their 
money  was  frittered  away  in  the  manner  in  which  it  was  probable  it  now 
had  been. 

On  the  resolution  being  put  the  number  for  and  against  was  so  equally 
balanced  that  a  division  was  called  for,  and  it  resulted  in  the  motion  b^ng 
negatived. 

It  was  finally  resolved  to  call  an  extraordinary  general  meeting  of  the 
company  on  Thursday,  the  19th  of  January,  and  a  vote  of  thanks  to  the 
chairman  concluded  the  business  of  the  meeting. 


LONDON  AND  NORTHERN  BANK,  LIMITED. 

THB  AMAIOAMATIOK  WITH  THB  MIDLAND  BANK. 

An  extraordinary  general  meeting  of  the  shareholders  in  this  bank  was 
held  on  the  i6th  December,  at  the  London  Tavern,  Bishopsgate-street,  for 
the  purpose  of  considering  a  series  of  resolutions  for  voluntarily  winding 
up  the  company.    Mr.  Basil  T.  Woodd,  M.P.,  occupied  the  chair. 


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London  and  Northern  Sank,  59 

Mr.  J.  P.  Tomer,  the  aecretary,  read  the  notice  conyening  the  meeting. 
The  Chairman  then  aaid  that  it  waA  proposed  to  snhmit  the  following 
reif>iiitk)Q9  to  the  meeting : — 
"  1.  That  the  company  be  wonnd  up  voluntarily. 

''2L  That  the  reeolntion  x)a88ed  by  the  board  of  directors  on  the  25th 
dsT  of  November,  1864,  is  hereby  approved,  and,  so  far  as  its  respective 
eoatents  are  to  be  performed  or  obs^ved  by  this  company,  or  are  in  their 
natare  and  imder  tiie  eircomstances  of  a  voluntary  winding  up,  capable  of 
b^ing  or  becoming  regulations  of  this  company,  are  hereby  made  regu- 
laduos  of  this  company ;  and  all  previous  regulations  of  this  company  in 
any  way  inconsistent  therewith  are  hereby  repealed. 

'^Z.  that  William  Dallison  Starling,  Esq.,  Charles  Poppleton,  Esq., 
lUIph  Walters,  Esq.,  BasQ  Thomas  Woodd,  Esq.,  M.P.,  and  Thomas 
Collis,  Esq.,  directors  of  the  company,  and  the  survivors  and  survivor  of 
them,  be  Uquidators  for  the  purpose  of  winding  up  the  affairs  thereof, 
WKi  <rf  disposing  of  its  property  pursuant  to  the  regulations  made  by  the 
Ufft  ][n'eceding  spedal  resolution;  and  that,  whatever  shall  be  done  in 
such  hqnidation  by  any  two  or  more  of  the  persons  hereinbefore  named 
be  valid  and  binding  as  if  it  had  been  done  by  all  the  said  liquidators  for 
the  iime  being."  • 

As  those  resolutions  had  relation  to  that  passed  by  the  directors  in 
November  last,  he  would  ask  the  secretary  to  read  that  resolution. 
Mr.  J.  P.  Turner  then  read  the  following  resolution : — 
**  Kesolved,— That  the  following  heads  of  agreement  between  the  Lon- 
don and  North^n  Bank  (Limited),  and  the  Midland  Banking  Company 
(Ltmited)  be,  and  the  same  are  hereby  approved  of  by  the  board : — 1. 
Thai  the  Midland  take  over  the  business  of  the  following  branches  now 
carried  on  by  the  London  and  Northern  at  Leeds,  Huddersfield,  and  Shef- 
field.   3.  The  London  and  Northern  to  let  the  Midland  at  once,  or  as  soon 
as  praetieable,  into  possession  of  the  premises  at  those  branches,  including 
the  fittings,  fomiture,  &c.,  at  a  valuation,  and  to  assign  their  interests  in 
«Qeh  premises.   3.  The  Midland  to  take  all  the  liabilities  at  those  branches 
-opon  current  or  deposit  accounts  upon  London  and  Northern  handing  to 
it  the  cash  at  those  branches  (estimated  at  about  £10,000),  and  assigning 
all  such  of  the  overdrawn  accounts  and  securities  at  such  branches  as  the 
Midknd  may  call  upon  it  to  do.    4.  The  Midland  to  have  the  option  of 
eleeiiiig  to  take  over  in  a  similar  way  the  premises  and  business  at  New- 
castle, fiezam,  Alnwick  and  Morpeth  branch  and  agencies  if  so  disposed, 
npon  having  the  cash  there;   also  all  overdrawn  accounts  and  bUls  of 
exchange  now  in  bank  portfolio  (the  latter  not  to  exceed  £6,000)  trans- 
ferred to  it.     This  option  to  be  exercised  within  14  days  firom  this  date. 
5.  That  500  shares  in  the  Midland  Banking  Company  (Limited)  shall  be 
fortiiwith  applied  for  and  taken  by  shareholders  m  the  London  and  Nor- 
tbeni  Bank,  upon  which  a  deposit  of  £5  per  share  shall  be  paid.    No  call 
to  be  made  within  six.  months  from  this  date,  and  then  not  exceeding  £6 
perihara    Tbj»  dAiue^  however,  is  not  to  bind  any  London  and  Northern 
ifcffefaoider  individually.     6.  That  three  London  and  Northern  directors 
gooaihe  hoard  of  the  Midland— Mr.  Basil  T.  Woenid,  M.P.,Mr.  Poppleton, 

aid  Mr  BrisasB ^but  in  the  event  of  the  last-named  gentleman  declining, 

MXDf  (Aher^^ectuT  to  be  substituted  from  the  London  and  Northern 
Attn/  Mr  Sftlpb  Walters  will  also  join  if  the  Newcastle  branch  is  taken 
^''^T  rh  Ijondon-  a^d  Northern  directors  to  advance  out  of  their  own 
^*'  L^     th  £XOfiOO  for  a  period  not  less  than  six  months  upon  the 


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60  London  and  Northern  Bank, 

deposit  note  of  the  Midland  Bank,  bearing  interest  at  1  per  cent,  under 
the  Bank  of  England  minimum.  8.  The  goodwill  to  be  paid  by  the  Mid- 
land to  the  London  and  Northern  to  be  at  the  rate  of  one  and  a  half  year'i» 
purchase,  less  £500  upon  the  first  year's  net  profit  at  the  branch  or 
branches  and  agencies  taken  over  by  the  Midland  after  fairly  providing 
for  bad  and  doubtful  debts.  9.  It  is  understood  that  the  directors  will 
use  their  best  endeavours  in  the  event  of  a  voluntary  winding-up  of  the 
London  and  Northern  to  secure  for  the  Midland  the  account  of  the 
liquidators." 

The  Chairman  then  said  that  the  shareholders  could  easily  imagine  tha^ 
in  taking  the  chair  at  that  meeting  he  did  so  with  s<»ne  feeling  of  mortifi* 
cation,  very  different  to  the  feelings  which  he  thought  would  have  possessed 
him  when  he  presided  over  the  ordinary  meeting  in  January  next.  At  the 
last  meeting  in  July  he  felt  that  they  were  in  a  flourishing  condition,  and 
it  was  only  in  consequence  of  uuforseen  circumstances  which  had  arisen. 
that  the  directors  had  passed  the  resolution  which  they  now  asked  the 
shareholders  to  adopt.  They  were  no  doubt  aware  of  the  circumstances  to 
which  he  referred,  and  he  need  not,  therefore,  allude  to  them.  He  would, 
however,  draw  their  attention  to  what  had  taken  place  since  the  meeting 
which  had  been  held  at  Leeds  jn  connection  with  the  Leeds  Banking  Com- 
pany. It  was  stated  there  on  behalf  of  the  directors  that  they  would 
advance  £25,000  for  the  purpose  of  carrying  on  the  affairs  of  the  bank  as. 
an  independent  company,  and  it  was  suggested  that  the  shareholders  should 
subscribe  an  equal  sum  as  a  loan  or  deposit  fund.  Some  of  the  directors 
remained  at  Leeds,  and  others  at  Huddersfield,  to  see  if  tiiiat  proposition 
would  be  carried  out.  But  so  far  from  that  being  done  a  sum  of  £34,000 
was  paid  away  out  of  the  deposits.  That  had  drawn  very  heavily  on  the 
resources  of  the  bank,  and  the  London  discount  market  being  closed  against 
them  it  was  with  the  greatest  difficulty  that  the  business  of  the  bank  could 
be  carried  on.  The  Bank  of  London  refused  to  pay  their  drafts,  and  the 
only  alternative  was  that  suggested  by  the  resolution  or  bankruptcy,  which 
would  have  entailed  very  heavy  loss.  The  meeting  at  Leeds  rejected  the 
amalgamation,  and  arrangements  Were  made  with  Uie  Midland  to  take  the 
branches  at  Leeds,  Huddersfield,  and  Sheffield,  with  an  option  of  taking 
that  at  Newcastle.  The  three  first  places  the  Midland  Bank  had  taken  and 
commenced  business,  since  which  a  considerable  balance  had  accrued  to  the 
Northern  Bank  shareholders.  All  he  had  to  do  now  was  to  ask  them  to 
confirm  the  resolution,  which  had  been  adopted  by  the  directors  after  a  deal 
of  harassing  and  trouble.  The  directors  offered  to  provide  £10,000  in  cash 
out  of  their  own  pockets,  and  also  to  take  up  500  shares  in  the  Midland 
Bank.  They  very  readily  came  forward  to  allow  the  business  to  be  carried 
on  for  the  welfare  of  the  shareholders  in  the  Northern  Bank.  They  had 
all  heard  the  resolutions  read,  and  to  show  that  the  directors  were  justified 
in  the  course  they  adopted  they  had  engaged  Mr.  Price,  the  professional 
accountaoit,  to  go  over  the  accounts,  and  he  would  ask  that  gentleman  to 
state  the  condition  of  affairs,  and  the  shareholders  could  then  judjge  for 
themselves  whether  the  directors  had  not,  under  the  unfortunate  circum- 
stances,  adopted  the  best  eourse  in  the  interests  of  the  shareholders.  He 
did  not  know  whether  it  was  intended  te  propose  any  amendment,  but  to 
meet  such  a  case  he  might  say  that  the  directors  had  taken  counsel's 
opinion,  and  had  been  advised  that  the  meeting  could  only  adopt  or  reject 
the  resolutions.  He  then  moved  the  adoption  of  the  resolutions  he  had 
read,  and  called  upon  Mr.  Price  te  present  a  statement  of  the  accounts. 


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London  and  Northern  Bank,  61 

Mr.  Price  said  he  had  made  up  the  aocounts  to  the  28th  November,  and 
t^  ggOTtt  had  been  prepared  entirely  independent  of  the  directors.    Those 
gentlemeD  had  given  him  free  access  to  the  books,  and  not  made  a  single 
alt^ntkin  or  eraanre  in  any  of  the  figures.    He  had  endeavoured  to  under- 
rate the  aasets,  and  some  thought  to  too  great  a  degree.    The  amount  of 
loss  vas  considerably  in  excess  of  that  mentioned  at  the  Leeds  meeting.    At 
tbe  2S^  of  November  the  capital  called  up  was  £161,890,  of  which  the 
calls  in  arrear  were  £12,570 ;    the  bank  owed  on  current  and  denosits 
£103,657,  at  the  Bank  of  London  £100,642,  of  which  £87,571.  lU.  4dr  were 
food  bills;  dividend  unpaid  £6.  2^.  6d.,  outstanding  (hafts  of  the  bank, 
£20,797. 14s.  5d.,  rents  and  taxes  accruing,  £276.  17«.  4(i.,  making  a  total  of 
liabilities  and  capital,  £387,270.  2s.  8d.    With  regard  to  the  assets,  there 
were  biUs  discounted  (after  deducting  for  re-discounting  and  loss  on  bad 
bills),  £146,159.  18j.  5d. ;  past-due  bills  (after  deducting  estimated  loss), 
£26,541.  2«.  4d. ;  loans  and  over  drafts  (after  deducting  estimated  loss), 
£129,017.    ll«.    lid. ;    stamps,  £469.  8a.  7d. ;    premises  and  furniture, 
£2.505. 13s.  lOd. ;  caUs  in  arrears,  £12,570 ;  and  cash  in  hand,  £16,461. 8a., 
that  would  show  a  loss  including  the  preliminary  expenses  (£11,016),  which 
would  have  extended  over  a  number  of  years,  but  for  the  present  state  of 
things  of  £53,745.  2«.  Td.  They  must  consider  that  the  Midland  Bank  would 
pay  one  and  a  half  years  purchase  for  the  goodwill  of  the  three  branches, 
which  might  be  estimated  at  £15,000,  therefore  the  loss  might  be  put  down 
at  below  £40,000.     He  then  proceeded  to  mention  the  statement  of  losses 
made  by  Mr.  Turner,  the  manager,  at  the  Leeds  meeting.    Mr.  Turner  then 
aaid  that  the  loss  was  £26,379,  and  there  appeared  to  be  a  very  great  difier- 
ence.    But  the  amount  did  not  include  the  £11,016  preliminary  expenses, 
and  properly  so,  as  Mr.  Turner  then  imagined  that  the  bank  was  in  a  very 
fk^inhing  state,  and  that  it  would  continue  its  business.      That  amount 
being  deducted  from  the  £53,745  would  leave  the  sum  of  £31,138  to  be 
aocoimted  for.    He  gave  Mr.  Turner  credit  for  having  based  his  statement 
on  figures,  but  there  were  several  items  which  Mr.  Turner  had  reckoned  on 
a«  assets,  which  he  (Mr.  Price)  had  struck  oif  in  order  to  be  on  the  right 
n4e,  and  which  might  in  part  be  realised  eventually.    There  were  certain 
•©oariiies  which  were  thought  to  be  good  by  Mr.  Turner  when  he  made  his 
■tatement^but  which  he  (Mr.  Price)  had  struck  off,  and  after  allowing  a 
■vni  of  £5,000  to  meet  any  emergency  or  deficiency  which  might  arise,  the 
difference  between  his  statement  of  the  losses  and  that  of  Mr.  Turner  was 
fuxDonied  for.     Although  the  difference  might  appear  to  be  very  large,  yet 
it  V18  accounted  fbr  by  the  items  he  had  referred  to. 

Mr.  Cooper  then  rose  to  second  the  proposition  of  the  chairman  for  the 
Tf^untary  winding  up  of  the  company,  and  the  confirmation  of  the  resolu- 
tion of  the  board  of  directors.    Aa  chairman  of  the  Huddersfield  meeting 
he  must  uey  that  on  that  occasion  a  large  number  of  shareholders  were  pre- 
MDt  representing  Huddersfield,  Sheffield,  Leeds,  and  the  West  Hiding  of 
Yoiiabire  generally.     Mr.  Tomson  the  manager  of   the  Midland  Bank. 
VM  present  and  ans^rered  the  questions  put  to  him  in  a  very  open  and 
Itiia^ictoiy  manner.     They  tried  to  induce  Mr  Tomson  to  recommend  to 
te  ^rectoTB  a  complete  amalgamation  on  the  terms  of  share  per  share  a 
S30  Midland  for  a  iC25  London  and  Northern  share.    They  made  that 
effer  on  ihe  uoderstanding  and  in  the  belief  and  expectation  that  the 
mXimr^r^Ai^w^  would  not  suffer  upon  the  payment  of  the  money  for  the 
I'/T^fth*  braJiches,  which  was  to  be  at  one  and  a  half  year's  purchase. 
SSwororition  was  receivedunanimouslyat  the  meeting,  there  not  being 


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62  London  and  Northern  Bank. 

a  diiisentient  voice,  although  all  parts  of  Yorkshire  were  represented.  Upon 
coming  np  to  London  however,  they  found  that  there  were  legal  difficulties 
in  the  way  of  the  proposal,  and  he  therefore  thought  that  the  best  course 
they  could  now  pursue  would  be  to  adopt  the  resolutions  of  the  board.  It 
should  be  the  object  of  the  shareholders  to  throw  themselves  heartily  into 
the  Midland  Bank — make  that  concern  as  flourishing  as  possible  and  that 
would  tend  to  the  benefit  of  the  London  and  Northern  Bank  shareholders. 
If  they  followed  his  advice  they  would  find  that  the  bank  would  become  a 
complete  success,  and  by  the  success  of  the  Midland,  the  shareholders  of 
the  London  and  Northern  would  ultimately  recover  every  penny  of  their 
money.    In  conclusion,  he  seconded  the  resolution. 

Mr.  Olive  wished  to  know  whether  the  Midland  Bank  would  take  the 
Newcastle  branch  ? 

The  Chairman  said  the  matter  was  formerly  at  the  option  of  the  Midland 
Bank,  but  the  14  days  had  expired,  and  the  directors  of  the  London  and 
Northern  Bank  could  now  if  they  liked  refuse  to  pasH  the  Newcastle  brancli 
over  to  the  Midland  Bank.  That  Company  had  not  at  present  made  any 
communication  to  the  board  of  the  London  and  Northern  Bank  upon  the 
subject.  He  had  had  great  experience  in  banks  in  that  part  (Yorkshire), 
and  found  they  paid  good  dividends.  He  believed  that  the  three  branches 
which  the  Midland  had  taken  at  liceds,  Huddersfield,  and  Sheffield,  were 
amongst  the  best  in  the  coimtry,  and  he  believed  the  branch  at  Newcastle 
stood  on  equal  terms. 

The  Chairman  remarked  that  there  had  been  no  discussion  about  the 
Midland  taking  the  Newcastle  branch,  but  there  was  no  doubt  that  the 
reason  why  they  had  not  taken  'it  was  that  it  was  not  in  the  County  of 
York  but  just  over  the  border.  Nothing  had  ever  been  said  about  the 
value  of  that  branch,  but  the  fact  was  that  it  had  done  a  very  good  business, 
and  had  paid  very  well. 

Mr.  Olive  believed  that  the  present  arrangement  would  be  most  benefit 
cial  to  the  Midland  Bank.  He  wished  to  ask  if  this  resolution  were  re- 
jected  what  course  would  be  purstled  ? 

The  Chairman  said  that  under  those  circumstances  the  company  must 
be  wound  up  officially,  and  that  would  entail  great  loss.  Perhaps  Mr. 
Morris,  the  solicitor  to  the  Midland  Bank,  was  in  possession  of  some 
information  which  might  be  important  to  the  question  before  the  meet, 
ing. 

Mr.  Morris  had  great  pleasure  in  answering  the  Chairman's  call  to  ex- 
plain  the  position  of  the  Midland  Bank,  and  thought  he  might  do  away 
with  all  legal  views  of  the  matter.  In  the  first  place,  he  must  say  that 
there  always  had  been  great  misinterpretations  of  the  meaning  of  **  amal- 
gamation. There  was  a  desire  on  the  part  of  the  Midland  Bank  to  eflfect 
an  amalgamation  with  the  London  and  Northern  Company,  and  he  thought 
that  the  price  at  which  the  shares  should  be  exchanged  was  the  only  point 
that  remained  to  be  decided  upon.  The  directors  of  the  Midland  Company 
were  ready  to-morrow  to  put  the  amalgamation  into  operation  on  the 
principle  of  share  for  share.  There  was  no  argument  in  the  matter ;  the 
Northern  Company  had  settled  it  themselves,  and  the  only  open  question 
was  the  amount  that  the  Midland  should  give  them  credit  for.  The  Mid- 
land were  desirous  of  giving  them  every  farthing  of  their  value,  in  addition 
to  the  price  of  the  goodwUl.  If  they  went  into  the  Midland  Bank  they 
would  make  it  strong  and  successful,  and  there  was  no  desire  on  the  part 
of  the  Midlatid  Company  to  split  straws  on  the  question  of  a  pound.  The 
safest  course  he  could  suggest  to  them  woidd  be  that  made  to  the  meeting 
at  Huddersfield,  viz.,  that  Mr.  Price,  the  accountant,  whom  they  all  knew. 


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London  and  Northern  Bank.  63 

scd  Hi.  Tomaon  cm  tbe  part  of  the  Midland  Company,  of  which  he  was  the 
nun^ger,  should  be  selected  to  connider  the  matter,  and  decide  what  the 
minimum  sum  should  be  tbat  the  Midland  Bank  should  give  the  Northern 
thvehcdden  credit  for,  but  that  course  could  not  be  adopted  until  the 
sbarebdd^s  came  to  some  resolution  similar  to  that  proposed.  Such  a 
rGsoIuticm  oould  hot  now  be  avoided,  for  without  a  formsd  wmding  up  there 
T-^d  he  a  lan^  amount  of  expense  and  inconvenience  in  Chancery  pro- 
oeedisga.  The  directors  of  the  Midland  Bank,  pending  the  result  of  the 
present  meeting,  bad  agreed  to  the  draft  of  a  circular  which  they  were 
ready  to  act  upon  that  very  night  if  necessary.  He  would  read  that  cir- 
cular to  them.     It  was  as  follows : — 

*^  Sir,— At  an  influential  meeting  of  the  shareholders  of  the  London  and 
Northern  Bank,  Lomited,  held  at  Huddersfield,  on  Friday,  the  9th 
Beoemher,  1864,  resolutions  were  unanimously  passed  in  favour  of  an 
efxcbaage  of  shares  in  the  London  and  Northern  Bank,  for  an  equal  number 
of  shares  in  the  >Iidland  Banking  Company,  Limited,  the  latter  being 
credited  at  onoe  with  such  a  sum  on  account  of  the  value  of  the  assets  of 
the  London  and  Northern  Bank,  as  Mr.  Price,  on  behalf  the  London  and 
Korthem  Bank  shareholders,  and  Mr.  Tomson,  on  behalf  of  the  Midland 
Banking  Company,  may  agree  upon ;  and  the  London  and  Northern  Bank 
shares  bdng  farther  credited  with  the  balance  which  the  assets  (after  pro- 
Tiding  for  liabilities)  may  realise,  as  well  as  the  amount  of  goodwill  when 
aaceiUined,  on  the  footing  of  one  and  a  half  year's  purchase.  It  was 
vndentood  that  the  foregoing  arrangement  should  apply  to  the  new  as  well 
as  the  old  shares  of  the  London  and  Northern  Bank,  all  the  shares,  both 
old  and  new,  being  entitled  to  participate  in  proportion  to  the  amount  paid 
up  thereon. 

**  The  directors  of  the  Midland  Banking  Company,  Limited,  have  duly 
Goosideced  these  resolutions,  and  are  prepared  to  nve  effect  thereto  con- 
ditionally  on  proper  arrangements  being  oonduded  with  the  liquidators 
aa  to  the  ocmtrol  of  the  assets.  ^ 

'^  In  (mier  to  fadlitate  the  exchange  of  shares  being  carried  out  with  as 
little  delay  as  possible,  after  the  passing  and  confirmation  of  the  necessary 
TCBobitiaiL  f<Mr  the  winding-up  of  the  Ix>ndon  and  Northern  Bank,  I  shall 
be  g^  if  yon  will  at  onoe  sign,  and  return  to  me  the  form  on  the  other 
aide.'' 

Hr.  Harm  proceeded  to  say  that  he  thought  the  two  gentlemen  he  had 
named  oould  better  fix  the  amount  to  be  paid  by  the  Midland  Company 
tlum  a  meeting  of  shareholders.  But  he  oould  assure  the  meeting  of  this 
faei, that themrectors  of  the  Midland  were  prepared  to  carry  out  the 
amalgamation  with  spirit  and  promptitude,  ilnd  to  welcome  them  all  as 
^**"?nd  Bank  sharebolders.  There  was  no  uncertainty  about  the  matter, 
ukd  he  did  not  think  that  they  oould  improve  upon  the  present  proposal. 
Hoverer,  tbe  matter  was  in  the  hands  of  the  shareholders,  but  he  oould 
mm  fifaem  of  the  desire  of  the  Midland  to  act  towards  them  in  the  most 
eotdhdmrit.     (Hear,  hear.)         .  ,  ,  , 

Zbe  CbMirman  wiBbed  the  meeting  to  understand  that,  as  the  resolution 
ttood  ji  preasent,  the  two  companies  were  quite  separate,  and  if  they  were 
nifltaf  it  irafl  4li«n  for  any  shareholder  who  did  not  wish  to  come  in  with 
^Tmnsemexxt  to  refuse  the  Midland  shares  in  exchange  for  his  own, 
iS^fi^nthereof  *o  take  the  amount  agreed  upon  Itetween  the  parties  to 

tikem 


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64  London  and  Northern  Bank. 

After  some  oonyersation  as  to  the  maimer  in  which  the  amalgamaiioxL. 
of  the  Imperial  and  Mercantile  and  Credit  Companies  and  other  under- 
takings  had  been  effected, 

A  Shareholder  said  the  shareholders  were  not  boimd  to  go  in  with  tlie 
amalgamation  unless  they  chose.  But  his  opinion  was,  that  if  the  Hhaj-o- 
holders  supported  the  Midland  Bank  it  would  become  a  greatly  improved 
concern,  and  they  would  get  every  penny  of  the  value  of  their  shares.  He 
would  ask,  with  all  respect,  whether  it  had  been  ascertained  that  the 
Midland  Bank  was  in  a  safe  and  sound  condition  before  they  had  entered 
into  any  arrangement  with  them. 

Mr.  Morris  said  the  position  and  affairs  of  the  Midland  Bank  were 
before  the  public.  That  bank  had  been  particularly  fortunate  in  securing 
the  services  of  a  good  man  of  experience  as  its  manager,  who  by  his 
conduct  had  shown  that  he  was  a  most  cautious  and  careful  man.  He 
happened  to  dine  with  one  of  the  directors,  and  in  course  of  couversatiozi 
that  gentleman  told  him  that  he  did  not  believe  the  Midland  Bank  had 
made  £200  bad  debts  in  all  its  branches,  such  had  been  the  extreme 
caution  which  the  manager  had  exercised.  The  Midland  was  not  one  of 
the  go-ahead  banks,  but  transacted  a  very  quiet,  steady  business. 

1&,  Price  (in  answer  to  questions)  said  that  the  Newcastle  branch  and 
agencies  connected  with  it  had  been  very  profitable  indeed  in  their  work- 
ing. He  confirmed  the  statement  already  made,  that  the  Midland  would 
have  taken  the  Newcastle  branch  had  it  been  within  the  radius  of  their 
operations.  With  regard  to  the  bad  debts  and  the  profits  of  the  New- 
castle branch,  he  found  that  while  the  profits  from  the  1st  of  July  had 
been  £1,685,  the  bad  debts  since  the  starting  of  the  branch  had  only 
been  £860. 

A  Shareholder  asked,  if  he  wished  to  keep  himself  dear  of  both  com- 
panies, how  much  would  he  get  ? 

The  Chairman  said  that  that  depended   upon  the   realisation  of  the 


Mr.  Chatteris  regretted  to  find  that  the  arrears  of  calls  unpaid  amounted 
to  upwards  of  £12,000.  He  thought  that  the  first  duty  of  the  liquidators 
should  be  to  get  that  money  in,  or  else  to  declare  the  shares  forfeited. 
(Applause.)  They  would  not  be  acting  with  justice  to  the  other  share- 
holders who  had  so  readily  responded  to  the  directors'  call  if  they  did 
otherwise. 

Mr.  H.  A.  King  said  that  it  had  been  found  by  experience  and  admitted 
on  all  hands  that  the  four  or  five  branches  in  Yorkshire  had  been  con- 
ducted in  such  a  manner  as  to  produce  a  good  profitable  business.  That 
being  the  case,  he  asked  what  could  have  been  the  policy  of  (he  directors 
in  entering  into  a  large  discount  business  in  London  where  they  had  no 
business  connections  ?  He  was  quite  at  a  loss  to  understand  such  a  pro- 
ceeding. He  thought  that  the  shareholders  were  entitled  to  some  ex- 
planation from  the  directors  upon  that  point,  and  also,  that  some 
explanation  should  be  given  as  to  the  loss  that  had  arisen  from  the 
very  extraordinary  heap  of  bad  debts— showing  as  they  did  that  the 
business  had  been  conducted  in  a  careless  and  reckless  manner. 

After  some  remarks  from  Mr.  Clench  and  another  shareholder. 

The  Chairman,  repljdng  generally  to  the  observations  which  had  fallen 
from  the  proprietors  during  the  discussion,  said  he  had  no  difficulty  in 
doing  so.  With  regard  to  the  bad  debts,  he  must  say  that  until  Septem- 
ber last  they  had  no  idea  that  any  existed.  They  all  arose  from  the  trans- 
actions of  the  Bank  wi^  Messrs.  Manual  and  Brillman.     The  directors 


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London^  Buenos  Ayres  and  River  Plate  Bank.  65 

▼«re  not  aware  that  any  transactions  had  been  carried  od  in  that  shape.  The 
directors  ought  to  know  of  eTerythiog,  and  as  soon  as  it  was  ascertained 
this  SQch  had  been  the  case,  they  spoke  to  the  manager  on  the  subject, 
a&d  from  what  he  said  he  (the  chairman)  believed  he  had  acted  with  the 
best  btentions,  but  the  transactions  had  turned  out  unfortimate.  From 
ihax  time  Mr.  Price,  the  accountant,  and  Mr.  Turner,  the  solicitor,  had 
been  oigaged,  and  every  action  had  been  sanctioned  by  those  two  gentle- 
men aiui  one  of  the  directors.  The  liquidation  would  be  in  the  hands  of 
the  directors  named,  and  that  course  was  suggested  to  save  expense.  The 
directors  had  never  received  a  sixpence  for  their  labours,  neither  did  they 
expect  one.  The  moment  that  they  found  the  Bank  was  in  difficulties 
they  advanced  money  from  their  personal  funds  to  help  it  out  of  them. 
Thej  advanced  £10,000,  and  undertook  to  take  up  600  shares  in  the 
Mkfland  Bank.  With  regard  to  the  bad  debts,  he  had  been  informed  by 
Mr.  J.  P.  Turner,  the  manager,  that  he  made  the  strictest  inquiries, 
before  he  sanctioned  the  advances,  of  one  of  the  principal  banks  in 
London,  and  the  names  were  reported  to  him  as  being  very  good.  But 
it  was  for  Mr.  Turner  to  justify  himself  for  imprudently  making  such 
Urge  advances.  He  did  not  say  that  the  directors  were  not  to  blame 
for  not  knowing  what  was  going  on,  but  the  statements  from  the  branches 
in  the  oountry  were  always  placed  before  them,  and  they  showed  a  profit- 
able working ;  but  those  relating  to  the  London  transactions,  which  had 
turned  out  so  disastrous,  had  not  been  placed  before  the  directors. 

A  Shareholder  asked  the  condition  of  the  Bank  when  the  new  shares 
were  issued. 

Mr.  Price  said  that  when  the  new  shares  were  issued  in  July  last,  they 
had  no  doubt  as  to  the  solvency  of  Manual  and  Brillman.  In  justice  to 
the  manager,  he  must  say  that  before  that  firm  had  any  transactions 
with  the  Bank,  he  went  to  one  of  the  first  City  banks,  where  they  had  had 
an  aoooant  for  twenty  years,  and  the  manager  was  told  that  that  account 
had  been  kept  in  a  most  respectable  and  satisfactory  manner.  That 
would  not  perhaps  justify  him  in  going  as  far  as  he  had.  At  the  time  of 
the  imie  of  the  new  shares  the  cr^tors  and  directors  believed  that  the 
aoooQBt  of  the  firm  was  perfectly  good,  and  there  was  not  then  a  single 
bin  diihoo0ored. 

The  motion  for  the  voluntary  winding-up  of  the  company,  and  confirm- 
ing  the  resolution  of  the  25th  of  Novembsr,  was  then  passed  unanimously. 
A  vote  of  thanks  to  the  chairman  dosed  the  proceedings.  * 


LO}nX)N,  BUENOS  AYRE8  t  BIVER  PLATE  BANK,  LIMITED. 

Tn  seeond  annual  meeting  of  shareholders  was  held  at  the  London 

Tavon  cm  the  10th  December ;  Mr.  Hatchblock  in  the  chair. 

The  rqwrty  as  follows  having  been  taken  as  read, 

"  The  directors  in  presenting  their  second  annual  report,  have  to  de- 

plore  the  very  great  loss  the  bank  has  sustained  by  the  death  of  their  late 

chairman,  Mir.  Bmoe,  and  to  express  their  deep  regret  that  he  was  not 

pcnnitted  to  witness  the  success  realised  by  this  bank,  to  which  his  sound 

judgment  and  zealous  labours  so  essentially  contributed.    The  directors 

Uknbadttmg  the  annexed  statement  of  accounts  congratulate  the  pro- 

fneton  upon  the  result  of  the  second  year's  operations.    The  directors 

M  theaudTeB  justified  in  paying  an  ad  interim  dividend  of  5  per  cent. 

briheSnt  bfJf»year,  th^  are  now  enabled,  after  the  most  ample  pro- 

for  aU  hMd  Bud  doubtful  debts,— appropriating  £1,000  towards  the 


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66  London,  Bvenos  Ayres  and  River  Plate  Bank. 

redaction  of  preliminary  expenses,  and  adding  £10,000  to  the  reserve  fund 
— ^to  declare  for  the  second  half-year  a  dividend  of  5  per  cent,  and  a  bonus 
of  10s.  per  share  on  the  original  shares,  and  a  proportionate  bonus  on  the 
new  shares,  and  to  carry  forward  to  the  profit  and  loss  account  of  the 
current  year  the  sum  of  £755  2s.  Buenos  Ayres :  the  reports  reoeiTed 
from  their  very  able  manager,  Mr.  Green  (confirmed  by  their  respected 
colleague,  Senor  Don  N.  de  la  Biesta)  are  most  encouraging,  expressing 
his  conviction  of  the  continued  success  of  the  bank,  and  also  satisfaction 
with  the  zeal  and  good  conduct  of  his  very^  efficient  staff.  These  services 
are  duly  appreciated  by  the  board.  Montevideo :  the  continued  political 
and  domestic  troubles  of  this  republic  have  contributed  to  retard  in  great 
measure  the  progress  of  this  branch.  The  directors,  however,  hope  that 
the  steps  they  have  taken  will,  on  the  cessation  of  the  dvil  war,  prove  of 
advantage  and  profit  to  the  bank.  Increase  of  capital :  the  directors  have 
given  their  serious  attention  to  this  subject,  and  in  asking  the  proprietors 
to  vote  the  necessary  powers  Twhich  they  do  not  intend  immediately  to 
exercise)  are  fully  confirmed  in  their  opinion  by  the  advices  ^m 
Mr.  Green,  that  from  the  great  increase  of  their  general  business  and  the 
rapid  development  of  the  resources  of  the  country,  they  will  have  ample 
opportunities  for  the  profitable  employment  of  the  proposed  additional 
capital.  The  dividend  warrants  will  be  issued  payable  on  27th  December, 
1864. 

Balance-aheei  made  up  to  SOth  September,  1864. 

CAPITAL  AND  UABIL1TIB8* 

Capital  called  up  to  date,  viz. — £40  per  share  on  5,000 
shares,  £200,000 ;  £5  per  share  on  20,000  shanss,  £100,000 
— £300,000 ;  less  arrears  on  2nd  call  on  £25  shares  £410, 
arid  456  £25  shares  unallotted  £2.280— £2,690 £297,310    0     0 

Beserre  fimd,viz. : — Premium  on  reserved  £100  shares  £2,000 ; 
premium  on  reserved  £25  shares  £30,000 ;  less  premium  on 
456  £25  shares  unallotted  £684,£29,316— £31,816 ;  amount 
appropriated  from  profit  and  loss  statement,  1863,  £2,000 
amount  appropriated  from  profit  and  loss  statement,  1864 
£10,000— £13,000      

Bills  payable  

Deposits  and  amounts  due  on  current  accounts,  &c. 

Reoate  of  interest  on  bills  current         

Profit  and  loss  account  for  net  profit  to  SOth  September  as  belo^ 


Contintfent  liabilities  on  bills  disoounted,  which  have  since  been 
didy  paid  (excepting  £5,000  not  yet  due) 

PBOPEBTT  USD  ASSETS. 

Cash  on  hand,  at  bankers*,  and  on  deposit        

Local  bills  discounted,  bills  receivable,  current  accounts,  and 

other  securities  

Premises  in  Calle  Florida,  Buenos  Ayres         

Bulk  premises  and  furniture  account  £2,779.  19/.  6<^.;  less 

amount  written  off  for  depreciation  £2S^.  69.  6fi 

Preliminary  expenses  £5,274.  3<.  3d.  less  amount  written  off 

jbl,UUv     •••  •••  ••■  «••  •••  •••  •••  m»i 


48,316    0 

0 

418.833    7 

11 

1,071,675  16 

11 

17,159  19 

6 

17,921  15 

4 

£1,866,216  19 

8 

£89,400    8 

4 

£116,864   1{ 

9 

1,785,491  14 
7,095    2 

5 
6 

S,49l  12 

9 

4,274    8 

8 

£1,866,216  19    8 


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London,  JBuetios  jiyres  and  Rirer  Plate  Bank.  67 

Profit  aad  loss  account  at  JLondon  office  and  branches  to  tiOth  September^  1864. 

Ckiig^  iadading  rent  and  taxes,  salaries,  advertieements, 
IhU  stamps,  directors*  remuneration,  and  all  other  expen- 
ses it  London  office  and  branches £17,662  14    1 

Bask  premises  and  fnmitare   account : — amount  written   off 

this  account  for  depreciation 288    6    9 

Leaving  balance  as  ahove        £2,491  12    9 

FKlmdaMrj  ex^nses  account : — amount  written  off  this  ac- 

OGUBttod^ 1,000    0    0 

Leaving  balance  as  above        £4,274    8    8 

Kebste  of  interest  on  bills  current         

Net  peofit  carried  doim      ...         


Cr. 

Gross  nrafit  to  this  date,  after  making  prorision  for  doubtfal 
Geocs      •«         .••         ••>         >••        •■•        •••        •••         •■ 


OSHBEAX.  PBOFFT  AKD  IX>SS  ACOOUNT. 

Dr. 
15*^  Sept.  30 

I>ivideiid  at  7\  per  cent  per  annum  paid  29th  December,  1863        £7,500    0    0 
Heserrc  fond :  amount  carried  to  the  credit  of  this  account  ...  2,000    0    0 

^lince  carried  down        64    6  10 


17,159  19  6 
38,753  3  10 

£74,864 

4 

2 

£74,864 

4 

2 

£74,864 

4 

2 

£9.564    6  10 


IBM. 

Juae  T7  Interim  diWdend  at  10  per  cent,  per  annum £10,895  15    4 

^^^  3i>  Eeterre  fund ;  amount  carried   tb  the  credit  of  this 


Bainoeesmeddown 


18S3. 

Sept  80  Balance  as  per  last  account 


Balance  broaght  down .. 

^SO   ^        being  net  profit,  per  profit  and  loss  statement 
SI  abore  ■•»         ***        ***        ***        •••        •**        *** 


imBtpL  30      Balance  as  aboye 


10,000 
17,921 

0 
16 

0 

4 

£38.817 

10 

8 

£9,564 

6  10 

£9,564 

6 

10 

£64 
88,753 

6  10 
3  10 

£38,817  10 

8 

£17,921 

16 

4 

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68  London,  Buenos  Ayres  and  River  Plate  Bank,  , 

The  OhairmaD,  in  nioying  the  adoption  of  the  report,  oommenoed  by  bjol 
eulogy  of  the  late  chairman,  Mr.  Bruce,  whose  exertions  and  self-deTotiozi 
to  the  interests  of  the  bank  could  not  be  too  highly  appreciated.  (Hea^ , 
hear.)  The  directors  felt  gratified  in  being  able  to  congratulate  the  share- 
holders on  the  results  of  the  second  year's  operations.  They  gave  an 
ad  interim  dividend  of  5  per  cent,  for  the  first  six  months,  and  now  they 
proposed  a  second  dividend  of  5  per  cent.,  with  a  bonus  of  10s.  per  share 
on  the  original  shares  of  £100,  and  a  proportionate  bonus  on  the  new^ 
shares  of  £25,  making  together  a  dividend  of  11}  per  cent,  for  the  year  aa 
compared  with  7}  per  cent,  in  the  last  year.  He  hoped  that  would  be  satis- 
factory. (Hear,  hear.)  In  addition  to  this  they  were  enabled  to  add 
£10,000  to  the  reserve  fund,  and  appropriate  £1,000  towards  the  reduction 
of  the  preliminary  expenses.  All  these  sums  united  together,  with  the 
amount  carried  forward,  were  equal  to  a  profit  of  16  per  cent,  for  the  year. 
This  was  not  all.  They  not  only  made  ample  provision  for  bad«and  doubt- 
ful debts,  but  in  consequence  of  the  troubles  in  Bio  and  the  high  rate  of 
interest,  they  made  a  larger  reserve  fund  than  they  otherwise  would  have 
done,  in  order  to  be  able  to  meet  any  contingencies  that  might  arise.  They 
had  now  a  month's  later  advices  from  Rio,and  as  none  of  the  evils  which  they 
wished  to  provide  against  had  occurred,  the  shareholders  would  have 
the  benefit  of  what  had  been  laid  aside  to  meet  contingencies  in  the  next 
profit  and  loss  account.  (Hear,  hear.)  The  Buenos  Ayres  branch 
was  also  progressing  very  favourably,  and  the  reports  they  received 
from  their  manager,  Mr.  Green,  and  their  colleague,  Senor  RieBtray 
argued  well  for  the  success  of  that  bank.  He  regretted  he  could 
not  speak  so  favourably  of  the  Monte  Video  Bank,  but  this  \ras 
owing  to  the  political  and  domestic  troubles  which  existed  in  that 
republic.  With  regard  to  the  expenses,  they  at  the  first  sight  seemed 
large,  viz.,  £17,662.  (Hear,  hear.)  But  these  it  should  be  recollected 
were  the  expenses  for  the  vear  and  not  for  the  half-year.  He  analysed 
those  expenses,  and  he  founa  that  the  items  were  moderate  and  eoononiical. 
With  regard  to  the  increase  of  capital,  he  should  wait  till  the  extraor- 
dinary general  meeting  before  he  spoke  on  that  matter.     (Hear,  hear.) 

Mr.  Holt,  the  deputy  chairman,  seconded  the  motion. 

Mr.  Boyman  and  other  shareholders  put  questions,  the  nature  of  which 
will  be  understood  from  the  chairman's  reply. 

The  Chairman  said  there  could  be  no  objection  to  making  the  report 
more  explicit  in  future.  The  capital  of  the  company  was  plainly  set  forth 
in  the  accounts— viz.,  £300,000.  With  regard  to  the  466  unallotted  shares, 
as  they  were  too  few  to  be  allotted  pro  raid  amongst  the  shareholders,  they 
would  be  disposed  of  in  the  open  market,  probably  less  eighty  for  a  gen- 
tleman  in  the  Plate,  and  the  proceeds  would  be  added  to  the  company's 
fund.  With  regard  to  the  £89,400— contingent  liabilities  on  bilU  dis- 
counted which  had  since  been  duly  paid  (excepting  £6,000  not  yet  due) — 
that  was  inserted  in  the  accounts  because  that  was  the  state  of  things  on 
the  30th  September,  but  since  then  all  had  run  ofif  except  about  £5,000 
which  was  not  yet  due.  (Hear.)  With  regard  to  the  directors'  remnnera- 
tion,  the  directors  by  the  articles  of  association  were  entitled  last  year  to 
£2,600.  They  took  that  for  more  than  twelve  months.  There  were  twelve 
directors  (eleven  at  present),  and  the  business  in  London  was  conducted 
without  a  manager  by  the  diairman,  the  deputy-chairman,  and  the  secre- 
tary. The  expense  of  a  manager  was,  therefore,  saved,  but  he  did  not  wish 
to  disguise  from  them  that  hx>m  the  increase  of  business  they  would  be 


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London,  Buenos  Ayrea  and  River  Plate  Bank.  69 

«Diop6lled  to  h&Te  a  manager.     This  year  tlie  directors  were  entitled  by 

tke  artidee  of  association  to  take  £5,500,  but  they  took  £2,000  less. 

(Hear.)    He  hoped  the  amount  they  took  would  not  be  oonaidered  un- 

rovoiable.    The  expenses  in  London  were   £6,483;  in  Buenos  Ayres 

£7^;  in  Monte   Video,  £3,671.    But  it  should  be  reoollected  that 

th^  were  subject  to  increased  expenditure  on  account  of  the  distance 

of  the  banks.     There  was  an  item,  for  example,  of  £300  for  the  ex- 

paise  of  sending    out    olerks.      There  was  also   a   heavy  charge  for 

i^jreign  stamps,  and,  on   account  of  the   cost   of  living,  salaries  were 

higher   abroad  than  they  were    in  London.      The  expenses   last  year 

were  £14,000,  as  against  £17,000  this  year;   but  the  expenses  of  the 

Monte  Video  braneh  were  for  twelve  months  this  year  as  against  nine 

mooths  for  last  year.    The  Monte  Video  branch  was  not  a  loss.      It 

ailRmied  a  moderate  profit.     With  regard  to  the  sum  set  aside  for  con- 

tingencaes,  that  was  a  question  he  must  decline  to  answer.     (Hear,  hear.) 

It   was  a  large  sum,  and  was  three  times  as  much  as  they  considered 

necessary  last  year.    If  the  contingencies  did  not  arise,  the  shareholders 

would  have  ihe  benefit  of  the  money  next  year.    The  qualification  for  a 

^lireclor  was  £2,000  stock,  and  he  believed  the  board  held  between  them 

sonaediing  like  one>fifth  or  one-sixth  of  the  entire  capitaL     (Hear,  hear.) 

With  the  £10,000  now  added,  the  reserve  fund  would  amount  to  £43,000. 

With  respect  to  the  division  of  the  £100  shares  into  two  £50  shares,  the 

fLtpiniooi  cl  counsel  had  been  taken,  and  it  was  to  the  efifeCt  that  it  cotild  be 

done,  but  that  it  was  not  adviseable  to  do  so  till  £10  had  been  paid  on  the 

20,000  shares.     (Hear,  hear.)     The  dividend  was  not  free  of  income  tax, 

but  the  next  would  be. 

The  motion  was  then  agreed  to,  and  a  dividend  of  5  per  cent,  and  a 
bonus  of  10».  per  share  on  the  origiiuil  shares,  and  a  proportionate  bonus 
on  the  new  sharess,  were  declared. 
In  reply  to  a  question. 

The  Chairman  said  that  4s.  8<i.  was  the  amount  of  dividend  and  bonus 
on  the  £26  shares. 

Votes  of  thanks  were  passed  to  Mr.  Green,  the  manager,  and  Senor 
BSestra  lor  their  valuable  services  to  the  bank,  and  a  similar  compliment 
was  pud  to  Mr.  Smithers,  the  secretary,  whose  uoiform  courtesy  and 
kindness,  the  cliairman  remarked,  in  conducting  the  affairs  of  the  bank 
most  be  known  to  all,  and  whose  great  knowledge  in  dealing  with  the 
dilEcult  operations  of  exchange  in  five  different  currencies  was  appreciated 
by  the  directoTS. 

The  retiring  directors  and  the  auditors  were  re-elected,  and  a  remunera- 
tion <rf  £50  a  year  was  voted  to  each  of  the  auditors. 
The  business  of  the  ordinary  meeting  having  concluded. 
The  Chairman  proposed  to  the  extraordinary  general  meeting,  which 
VIS  then  hdd,  a  resolution  for  the  purpose  of  ratifying  and  con&ming  a 
leaolntion  passed  by  the  board  of  directors  on  the  19di  of  Novembar^  for 
^poirering  the  board  to  increase  the  existing  capital  of  the  company  by 
tt  tmount  not  exceeding  £1,000,000  Stirling,  at  such  times,  in  such 
Aaooer,  and  upon   such   conditions,  as  the  board   may  from  time  to 
tine  deem  expedient. 
Kr.  HoJt  seconded  the  motion. 

A  Shareholder  said  that  only  £40  had  been  paid  up  on  the  original  £100 
ibio.   He  wished  to  know  whether  the  directors  intended  to  call  up  £10 
oil  tliese  shares  bo  biB  ^  make  the  amount  paid  on  them  £50. 
TOL.  XXV, 


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70  East  India  Financial  Association. 

The  Chairman  said  that  the  late  chairman,  in  obedience  to  what  he 
considered  to  be  the  desire  of  the  shareholders  at  the  la«t  general  meet- 
ing, gave  an  implied  pledge  that  the  board  woidd  not  call  np  that  £10, 
and  the  board  at  present  had  no  intention  of  doing  so.  There  was  now 
paid  on  the  £25  shares  £7. 10«.  per  share,  and  a  call  of  £2. 10«.  would 
be  made  in  January.  The  £10  on  the  £100  shares,  and  the  £2.  10«.  on 
the  £25  shares,  would  only  produce  an  additional  capital  of  £100,000. 
Af^  soon  as  Monte  Video  was  free  from  civil  war  they  had  reason  to  be- 
lieve that  the  branch  there  would  become  an  important  and  a  prosperouB 
one ;  but  to  enable  it  to  become  so  they  must  have  a  larger  capital  in 
their  possession.  There  ^ere  other  circumstances  also  which  made  thia 
desirable.  They  ought  to  be  in  such  a^  position  in  London  that  they 
need  not  be  obliged  to  pay  excessive  rates  of  discount  when  their  re> 
inittances  arrived.  (Hear,  hear.)  There  were  some  negotiations  with 
respect  to  the  right  of  emission  in  Monte  Video,  and  if  they  acquired 
that  valuable  privilege  they  would  want  a  larger  capital.  It  might  also 
be  good  policy  to  open  other  branches.  He  could  only  say  that  if  this 
bank  did  not  supply  the  capital,  it  would  be  supplied  &om  other  sourceSy 
and  he  should  be  sorry  to  see  any  opposition  arise.  If  they  did  not  see 
their  way  to  dividend  they  would  not  ask  for  the  money.  The  board 
would  fix  the  rate  of  premium  at  which  the  shares  would  be  issued,  and 
they  would  be  issued  at  such  a  price  as  in  the  opinion  of  the  board 
would  be  equally  for  the  benefit  of  the  shareholders  and  the  reserve  fond. 
(Hear.) 

A  few  shareholders  expressed  an  opinion  that  in  the  fir^  inManoe  the 
board  should  call  up  the  £10  on  the  £100  shares,  but  on  the  pro- 
position of  the  directors  being  made  it  was  carried^  only  three  hands 
being  raided  in  opposition  to  it. 

A  vote  of  thanks  to  the  chairman  and  direoiori  oonoluded  the  busineflB. 


EAST    INDIA    FINANCIAL   ASSOCLA^TIONi   LIMITBD. 

A  SPECIAL  general  meeting  of  the  shareholders  in  this  company  was  held 
on  the  20th  December,  at  the  oflSces  in  East  India  Avenue^  Ijeadenhall 
Street,  City  ;  Mr.  H.  D.  Cartwright  in  the  chair. 

The  Secretary  having  read  the  advertisement  convening  the  meeting. 
The  Chairman  said  that  it  had  been  called  in  order  tu  enable  the  direc- 
tors to  render  some  account  to  the  shareholders  of  the  way  in  which  they 
had  dealt  with  their  money.  They  were  aware  that  the  time  had  been 
very  much  against  associations  of  this  kind.  Instead  of  finding  money 
easy  here,  as  was  anticipated,  it  had  been  unusually  tight,  the  conse- 
quence of  which  was  that  their  operations  had  been  much  more  restricted 
than  they  would  otherwise  have  been.  He  should  class  the  observations 
he  had  to  make  under  three  heads  ;  first,  the  progress  they  were  making ; 
secondly,  he  should  explain  the  present  position  of  the  associations ;  and 
thirdly,  he  would  state  the  reasons  which  induced  the  directors  to  make 
Calls.  With  regard  to  the  progress  of  the  as&ociation,  he  might  state 
that  they  had  placed  all  the  available  funds  in  India.  The  capital  sent 
out  to  Calcutta  was  £66,000,  of  which  half  was  invested  in  land  and  home 
mortgages  and  other  securities  of  unquestionable  character,  at  an  average 
rate  of  Jl  per  cent.,  and  the  other  half  arrived  out  just  after  the  hurricane, 
and  when  money  was  in  great  demand.    The  last  advices  they  had  re- 


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Ea*t  Imlia  financial  A%%ociatiou.  7\ 

eared  from  GalcuUa  jurought  intelligenoe  to  Not.  5.    The  Bfum  of  £60,000 
kd  becD  sent  to  Bombay^  of  which  £40^000  was  inveated  in  land  and 
hottd  mortgages  and  other  exoellent  securities,  and  £20,000  was  yet  to  be 
i]iT€Bbed.     The  ixiTestmenta  which  had  been  proposed  for  a  great  portion 
rfiiieeapiial  were  now  under  consideration,  their  hitest  advices  from 
Boiibay  bearing  date  the  12th  of  November.    The  capital  already  invested 
had,  been  placed  in  India  at  less  than  a  loss  of  half  per  cent,  on  the  rate 
of  exchange,  hxA  that  which  was  to    be  invested  would  probably  not 
be  invested  wX  so  small   a   loss,  becatise,  as   a  general  rule,  the   loss 
oa  "M^i^g   money  from   England  to  India  was  3,  and  frequently  4, 
per  cent.      They   would   observe  that  the  money  placed  at  the  dis- 
possl  of  the    Indian  agencv  was   £25,000   in  excess  of   the   paid-up 
capitaL     That  indnded  tiie  iniole  of  its  liabilities  on  acceptances,  indud- 
ing  Mardi  and  April  next,  which  liabilities  would  be  provided  for  out  of 
ilie  first  call  to  be  made.    Those  acceptances  were  for  the  purpone  of  in- 
vestment, and  it  vraa  hoped  that  the  profit  accruing  from  the  employment 
of  the  Imids  pending  the  maturing  of  the  bills  would  be  considerable. 
While  on  this  snbject,  he  might  say  with  respect  to  Calcutta,  that  the 
moneya  now  called  up  would  enable  the  agents,  should  they  require  to  draw 
for  investment,  to  make  such  terms  as  would  save  the  association  from  the 
loss  on  tiie  rate  of  exchange  with  respect  to  those  drafts,  which  was  a  point 
that  had  been  brought  promin^itly  to  the  attention  both  of  the  Calcutta 
and  Bombay  agencies.    Those  agencies  were  in  very  trustworthy  hands, 
and  ti^e  receipts  and  correspondence  reached  this  country  with  the  greatest 
regularity  every  mail.    The  drafts  aU  parsed  through  the  Bank  of  Agra 
SB^  liaaterman,  the  oompany^d  catii  depository^  and  the  agents  in  India 
were  asnated  by  the  co-operation  of  influential  local  committees.    Two  of 
the  directors,  Messrs.  Moran  and  Robimion,  had  lately  returned  to  Calcutta 
lor  a  abort  period,  and  would  act  on  the  local  committee,  and  from  the 
intimate,  knowledge  they  had  of  the  prindpsl  persons  in  Calcutta,  and 
their  influence,  it  was  expected  that  a  large  business  would  accrue  to  this 
ooBipaiiy  in  oourae  of  tune.    With  respect  to  the  position  of  the  company, 
aU  he  eould  aay  was  that  their  money  was  most  securely  invested,  ample 
margin  having  been  left  for  depreciation ;  the  greatest  caution  had  b^ 
ined,  and  the  severest  tests  applied  to  all  the  securities  on  which  the  com- 
pany  had  lent  money.    They  must^  however,  recollect  that  their  funds  were 
very  linnted,  and  the  expenses  of  working  a  small  paid-up  capital  were  as 
heavy  as  if  they  were  workii^  one  ten  times  as  large.    For  the  greater 
portion  of  the  year  the  English  money  market  had  been  in  such  a  state 
that  it  was  out  of  the  question  to  hope  for  any  assistance  from  deb«itures 
ex0^  at  a  rate  of  intezest  which  would  have  left  no  margin  of  prc^t,  and 
the  direi^ors  had  felt  that  severely,  because  the  opportunities  for  investing 
on  safe  securities  in  India  were  very  large ;  and  looking  to  the  present 
slate  of  things  izi  Indil^  the  board  had  thought  it  better  to  avoid  business 
of  a  general  finandal  character,  because,  alSiough  the  prospective  profits 
might  be  large,  they  might  be  absorbed  or  swept  away  on  the  failure  of 
any  security  wluch  entailed  a  great  risk.    (Hear,  hear.)    In  the  invest- 
nents  they   had  made,   landed  securities  chiefly  had  been  sought  and 
obtained ;  and  he  had  pleasure  in  stating  that  to  the  shareholders  because 
it  was  material  to  their  interests.  (Hear,  hear.)     Their  position  was  this  : 
a  small  paid-np  capital  safely  invested  or  in  course  of  investment  at  paying 
rates,  with  power  and  opportunity  to  do  a  very  large  and  profitable  busi- 
aesB  on  the  piodoetion  of  more  capital  without  materially  increasing  their 


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72  East  India  Financial  Association. 

working  expenses.  With  reference  to  the  reasons  Ti^^ich  induced  the  board 
to  make  a  call,  they  were  explained  by  the  observations  he  had  made  with 
regard  to  the  position  of  the  company.  The  simple  fact  was  that  they 
wanted  money  and  came  to  the  shareholders  for  it,  bringing  in  their  hands 
proofs  that  they  had  invested  the  money  already  entrusted  to  them  securely, 
and  that  in  the  face  of  the  most  difficult  and  exceptional  period  of  money 
value  relatively  in  England  and  India.  Their  prospects  at  the  time  of 
their  organization  were  a  moderate  supply  of  money  on  this  side  and  great 
scarcity  in  India,  but  the  reverse  had  been  the  case,  and  had  taken  even 
the  most  far-seeing  by  surprise.  In  the  western  presidency  of  India  twelve 
months  ago  money  was  from  20  to  30  per  cent.,  and  in  considerable  demand, 
whereas  now  it  was  only  8  to  10  per  cent.  As  to  their  future  prospects  he 
could  say  with  confidence  that  with  a  good* supply  of  money  there  existed 
both  in  the  Calcutta  and  Bombay  presidencies  an  ample  field  for  the  pro- 
fitable working  ef  the  association.  In  the  presidency  of  Bengal,  extensive 
railway  works  were  proceeding,  and  advances  might  be  made  on  very  pro- 
fitable terms  on  railway  and  other  public  works,  the  interest  of  whose 
capital  was  to  a  great  extent  guaranteed  by  the  government.  Besides  this, 
in  one  district  of  Madras  alone,  that  of  Malabar,  they  could  employ  imme. 
diately  fully  one-third  of  the  subscribed  capital,  while  in  respect  to  another, 
he  meant  the  district  of  Wyenaud,  where  coffee  planting  had  been  engaged 
in  to  a  great  extent  with  very  successful  results  (which  district  he  knew 
intimately,  having  a  large  interest  in  it),  he  could  speak  most  positively  to 
the  fact  that  the  whole  of  the  subscribed  capital  of  this  company  might  bo 
invested  in  excellent  seciurity.  Thus,  the  field  of  India,  on  the  one  side 
where  he  had  resided,  and  on  the  other  side  where  some  of  his  co.  directors 
had  resided,  there  was  no  doubt  that  a  large  capital  could  be  most  pro- 
fitably employed,  and  had  it  not  been  for  the  exceptional  state  of  the  money 
market  here  for  so  long  a  period,  they  would  have  no  doubt  been  able  to 
show  a  much  better  account,  proportionally  though  perhaps  not  actually. 
They  were  also  making  cautious  inqtdries  in  the  direction  of  China  and 
Japan ;  but  until  the  capital  was  increased  they  would  be  obliged  to  con- 
fine themselves  to  that  part  of  the  east  with  which  they  were  best  acquainted. 

In  reply  to  questions  from  Mr.  Harris, 

The  Chariman  said  that  the  £26,000  acceptances  in  excess  of  the  capital 
was  money  drawn  on  six  months  bills,  the  difference  in  the  rate  of  exchange 
representing  the  whole  of  the  interest  paid,  and  that,  as  he  had  explained, 
did  not  on  the  average  exceed  half  per  cent.  Of  course,  some  of  the  bills 
had  been  drawn  at  a  higher  rate,  and  even  at  4}  per  cent,  the  average  was 
only  one-half  per  cent.  The  fact  was  that  they  made  a  profit  on  the  larger 
sum,  and  suffered  a  loss  on  the  smaller.  The  money  derived  from  those 
acceptances  had  been  invested  at  the  rate  of  11  per  cent.     (Hear.) 

Mr.  Porter  inquired  what  progress  had  been  made  by  the  board  in  the 
issue  of  debentures,  or  whether  they  intended  to  abandon  that  system  ? 
He  reminded  the  board  that  the  calling-up  of  capital  tended  rather  to  depre- 
ciate debentiures  in  the  market. 

The  Chairman  replied  that  the  board  were  well  aware  that  the  prosperons 
working  of  a  large  concern  like  this  depended  to  a  great  extent  on  the 
assistance  it  could  derive  from  other  quarters  at  a  moderate  rate  of  interest. 
They  were  still  advertising  for  debentures,  but  considering  the  state  of 
the  money  market  hitherto  they  could  not  expect  to  meet  with  much 
success.  They  had  had  applications  for  debentures,  but  up  to  the  present 
they  were  comparatively  small,  and  he  trusted  they  would  soon  be  larger. 


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East  India  Financial  Association,  73 

It  was  important  to  the  holders  of  debentures  to  know  that  from  the  mode 
in  which  the  money  of  the  company  was  invested  nothing  could  be  securer 
th.u  their  debentures.  If  this  association  could  get  £100,000  on 
de>>eQtiires  with  £150,000  paid-up  capital,  they  could  easily  declare  a  £10 
per  cEiit.  (hTidend. 

Mr.  Stoven  inquired  whether  the  directors  had  contemplated  an  amalga- 
iDvi«iii  with  any  other  company  of  the  same  description,  for  the  purpose  of 
widening  their  basis.  He  remarked  upon  the  fact  of  the  large  niunber  of 
financial  companies  which  had  sprung  up  both  in  India  and  in  this  country, 
which  had  introduced  an  extraordinary  competition,  and  had  led  to  con- 
siderable  depreciation  in  the  value  of  money  in  India.  He  hoped  the 
directors  would,  if  they  had  not  done  so  already,  take  this  matter  into 
cr.*n«hderation,  and  he  pointed  out  that  the  position  of  the  Land  Mortgage 
Bank  of  India  was  such  as  to  well  merit  their  consideration. 

The  Chairman  said  that  the  subject  had  not  escaped  the  consideration  of 
the  directors,  and  if  there  was  an  opportunity  for  a  profitable  amalgama- 
tir»n  with  another  company  of  a  suitable  character,  no  regard  to  the  posi- 
tion occupied  at  the  board  by  the  directors  of  this  oompaoy  would  prevent 
them  from  carrying  such  an  amalgamation  into  effect.  (Cheers.)  He,  how- 
ewer,  remarked  that  some  of  the  associationa  which  had  been  recently 
fonxted  in  India  transacted  a  class  of  business  which  this  company  would 
ii<vt  touch  (hear,  hear),  and  he  trusted  that  the  shareholders  would 
giwe  the  board  credit  for  acting  prudently  in  deiding  with  their  money. 
(Cheers.) 

A  Shareholder  asked  if  they  had  any  losses  ? 
The  Chairman :  None. 

A  Shareholder  complained  that  there  was  a  report  abroad  that  800  shares 
had  been  purchased  by  the  directors  with  the  funds,  and  sent  out  to  India. 
They  were  bou^^ht  at  a  premium. 

liie  Chairman  denied  that  those  shares  had  been  bought  with  the  funds 
of  the  company.     But  directors  who  had  shares  on  huid  sent  them  out 
with  a  view  of  obtaining  influential  support  in  India. 
In  reply  to  questions, 

The  Chairman  said  he  was  not  at  liberty  to  say  whether  they  had  had 
overtareBmade  to  them  for  amalgamation,  or  whether  they  had  made  over- 
tures themselves. 

Mr.  Storin  hoped  the  directors,  in  the  present  state  of  the  company, 
would  not  vote  themselves  the  amount  to  which  they  were  entitled.  He 
ssked  also  what  would  be  the  extent  of  the  calls  ? 

The  Chairman  said  their  present  intention  was  to  call  £5.    They  would 
take  00  remuneration  which  the  shareholders  would  not  cheerfully  vote. 
Hfi  believed  the  directors  had  power  to  draw  acceptances  to  the  extent  of 
the  capital,  and  to  i^sue  debentures  to  the  extent  of  the  subscribed  capital, 
bat  ihty  were  limited  to  £250,000. 
3fr.  Hill  asked  what  the  preliminary  expenses  stood  at. 
The  Chairman  sftated  they  were  brought  out  by  the  International,  and 
tie  expenses  were  settled  at  £2,000.  They  were  ready  to  earn  commissions 
vben  proper  opportunity  presented  itself. 

Thaprooeedings  were  then  brought  to  a  dose,  and  a  vote  of  thanks 
pigsed  to  the  chairman. 


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THE  LEEDS  BANKING  COMPANY. 

On  the  1st  December  the  caae  of  the  shareholders  of  the  Leeds  Banking 
Company  came  again  before  Mr.  Buckley,  chief  clerk  of  YioeOhancellor 
Kindersley,  at  the  Yioe-Chanoellor'B  Chambers,  Lincoln's  Lin.  Three 
cases  were  selected  for  consideration  belonging  to  Class  B,  and  those  caaeB 
If  ere  looked  upon  as  representative  cases,  with  a  yiew  to  decide  all  similar 
ones  connected  with  the  oontributories.  There  was  a  very  large  attendance 
of  solicitors  representing  shareholders. 

The  first  case  for  consideration  was  that  of  Thomas  Bromfit,  Thomas 
Dixon  Cradock,  and  Thomas  Craven,  the  executors  of  a  deceased  gentlemaii 
named  James  Cradock. 

Mr.  Denton  (of  Messrs.  Freshfields  and  Newmans^  appeared  for  the 
official  liquidator.  He  said  he  believed  there  was  no  oDJection  to  placing 
those  gentlemen  on  the  list  of  oontributories  in  their  representative  charac- 
ter as  executors,  and  he  should  be  quite  satisfied  if  they  were  placed  on  the 
list  of  contributories  in  that  capacity.  They  thought  the  estate  was  suffi- 
cient to  pay  all,  and  they  did  not  desire  to  do  more  than  place  them  on  the 
list  of  oontributories.  The  persons  who  had  taken  the  residue  of  the  pro- 
perty were  persons  in  a  good  position. 

Mr,  Nelson  said  he  only  got  notice  in  this  case  the  previous  evening, 
and  he  had  not  had  an  opportunity  of  looking  into  the  matter,  but  he  be- 
lieved those  shares  were  specially  bequeathed  by  a  will,  although  with 
another  property ;  and  a  bill  had  been  actually  prepared  to  say  which  fund 
should  bear  the  call.  It  was  a  question  whether  it  was  payable  by  the 
tenant  for  life  or  by  the  residuary  legatee. 

Mr.  Denton  asked  the  amount  for  which  the  will  had  been  proved. 

Mr.  Nelson— £7,000. 

Mr.  Buckley  suggested  that  they  should  be  placed  on  the  list  of  contribu- 
tories, without  prejudice  to  the  right  of  the  o^cial  manager  to  place  any 
one  on  the  list  whom  the  bill  should  find. 

Mr.  Nelson — Then  how  do  you  propose  to  put  us  on  f 

Mr.  Denton — ^As  executors,  without  prejudioe  to  the  rights  of  the  official 
manager. 

Mr.  Buntinjr  gaid  it  was  very  important  that  this 'case  should  be  settled 
■  in  some  way,  if  it  were  to  decide  other  cases. 

Mr.  Denton  said  if  they  got  £70  per  share  from  the  executors  of  Mr. 
Cradock  they  thought  they  had  done  all  they  coidd. 

Mr.  Torr — May  not  the  trustees  get  off  if  there  is  a  special  bequest  7 
That  would  not  determine  the  other  question. 

Mr.  Buckley  could  not  help  that.  They  had  not  all  the  facts  before 
them. 

Mr.  Bunting  did  not  know  the  executors  were  liable.  There  was  some 
division  of  the  property,  and  he  generally  objected  to  the  course  that  was 
being  taken  with  very  great  respect. 

Mr.  Buddey  could  not  see  that  he  was  prejudiced.  He  settled  them  as 
executors,  and  left  all  the  other  points  open.  They  could  not  take  evi- 
dence  to  settle  the  legatee. 

Mr.  Torr  said  this  was  not  a  good  model  case 

Mr.  Nelson  said  the  executors  did  not  resist  in  theii^  representative 
papacity. 

Mr.  Denton — ^Mr.  Cradock  signed  the  original  deed,  and  his  will  was 


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The  Leeds  Banking  Company.  75 

irodaoed  in  18OT  at  the  Leeds  Banking  Company,  and  the  executorn  named  ' 
ii  iks  vill  placed  on  the  list.  He  was  prepared  to  prove  by  the  drafts  of 
tke  Leeds  Banking  Company  that  those  gentlemen  had  drawn  various 
SBOBsti  from  the  bank,  describing  themselves  as  the  executorR  of  James 
CndcK^  and  that  was  continued  up  to  the  4th  of  February,  1864.  They 
had  neeived  tbe  dividend,  drawing  on  the  Leeds  Banking  Cqmpany  in  their 
npraentative  capacity. 

The  names  were  placed  on  the  list  of  oontributories  in  their  represeuta- 
tire  capacity  as  execators. 

Mr.  I>6nion  said  the  next  cause  was  that  of  Crossland.  There  was  tlie 
deed  of  settlement  executed  by  Mr.  Crossland  for  16  shares.  He  obtain  cd 
en  the  7th  of  April,  1841,  five  further  shares.  In  1862  probate  of  the  will 
vss  pn^hiced  at  the  bank,  and  there  was  an  entry  on  the  6th  of  February 
S2id  the  third  of  July,  1864,  that  the  executors  of  Crossland  received  the 
dividend. 

A  short  diflCQSsiofn  followed,  and  this  case  was  ordered  to  stand  over  to 
ascertain  the  amount  of  the  property  left  imder  the  will. 

Mr.  Williamson,  solicitor,  appeared  for  the  executors  in  this  case. 

The  next  case  considered  was  that  of  John  Chalk  Bennett,  of  Liverpool. 

Mr.  Denton  said  in  this  case  he  produced  the  deed  of  settlement  executed 
l^  Mr.  J.  C.  Bennett  for  ten  origmal  shares.  The  deed  of  settlement  was 
signed  for  7,340  shares,  and  2,660  scares  were  reserved  to  the  directors  ;  and 
on  the  20th  Koyember,  1857,  there  was  a  transfer  of  30  shares,  and  on  the 
aame  date  a  transfer  of  15  shares — in  all  55  shares — to  Mr.  Bennett.  Of 
the  2,660  shares  in  the  hands  of  the  directors  he  had  subsequently  had  22 
additional  allotted  him,  and  on  the  2nd  of  August  he  paid  £660  on  account 
of  those  shares,  and  asked  for  the  certificates  at  the  earliest  convenience  of 
Mr.  Greenland.  The  r^;ister  had  been  identified  in  this  case,  and  there 
was  no  question  as  to  the  number  of  shares. 

Mr.  Btmting  asked,  was  there  any  evidence  that  the  share  register  was 
entered  up  at  the  time  ?  It  might  have  been  entered  after  the  stoppage  of 
the  bank. 

Mr.  Buckley  would  not  go  into  those  questions  unless  they  were  raised 
in  each  particular  case. 

Mr.  Paterson  objected  to  his  client  being  made  responsible  on  the  latter 
shares,  for  which  he  had  paid  £660  and  had  received  no  return.  He  wafi 
indooed  to  take  the  shares  by  statements  contained  in  the  report  of  the 
Leeds  Banking  Company  for  February,  1862,  which  were  false  and  fraudu- 
ItaL  They  wanted  to  know  the  truth  of  those  statements  on  the  2nd  of 
February,  and  they  wanted  to  know  how  many  bills  were  in  the  handtt 
of  the  bank  aa  new  bills,  and  how  many  years  and  months  they  had  them. 

Mr.  Buckley  thought  the  shareholder  was  entitled  to  enquire  into  those 
mattes,  and  would  postpone  the  further  consideration  of  the  case  for  the 
present. 

The  inqnizy  was  then  further  adjourned 


On  the  9th  December  a  meeting  was  held  at  the  chambers  of  Vice- 
CbaoeeQor  Kindersley,  before  Mr.  Buckley,  the  chief  clerk,  for  the  purpose 
of  declaring  a  csH. 

Mr.  Denton,  from  the  office  of  Messrs.  Freshfields  and  Co.,  stated  that 
op  the  proMnt  tixne  189  shareholders,  representing  6,660  shares,  had  been 


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76  The  Leeds  Banking  Company* 

settled  on  the  list  of  oontributorieB.  There  were  certain  cases  which 
related  to  the  liability  of  executors  and  trustees  that  stood  over  for  in- 
quiry, and  others  also  postponed  for  the  Vice- Chancellor  to  fix  the  parties. 
Since  the  last  meeting  all  who  had  been  settled  had  been  served  with  the 
nsnal  notices,  and  also  a  copy  in  print  of  the  remarks  of  Mr.  Turquand, 
the  official  liquidator,  at  a  previous  meeting.  That  gentleman  had  filed 
an  affidavit,  dated  Dec.  6, 1864,  in  which  he  stated  his  reasons  for  stating 
that  a  call  of  £70  per  share  would  be  necessary ;  and  he  also  presented  an 
approximate  statement  of  the  afifairs  of  the  company  at  the  date  of  its 
stoppage,  viz.,  Sept.  17, 1864.  The  amount  of  bills  of  exchange  not  yet 
due  and  still  current  was  £830,000,  or  thereabouts ;  but  it  was  impossible, 
from  those  returned  unpaid  at  present,  to  ascertain  accurately  the  amount 
of  deficiency  from  this  source,  but  it  would  probably  be  £503,000.  It 
further  appeared  that  on  the  17th  September  the  company  were  indebted 
to  certain  creditors  unsecured  to  the  extent  of  £639,337.  Os.  6d. ;  likewise 
to  creditors  holding  security,  £90,000  odd ;  and  also  to  liabilities  on  bills 
bearing  the  endorsement  of  the  bank  estimated  to  rank  at  about  £1,000,000; 
making  in  round  numbers  £1,700,000  as  the  total  of  the  debts  of  the 
Leeds  Banking  Company.  For  this  it  was  necessary  that  a  call  should  be 
made.  It  was  supposed  that  there  would  be  available  in  course  of  time 
assets  to  the  extent  of  £826,000,  and  that  in  that  way  the  total  amount  to 
be  ultimately  fixed  as  the  loss  of  the  company  will  be  about  £603,000. 
This  presumption  was  grounded  on  the  fact  that  it  was  estimated  there 
would  be  recovered  from  the  drawers,  the  acceptors,  and  the  endorsers  of 
the  dishonoured  bills  something  approximating  to  £400,000.  The  list  of 
contributories  comprised  7,340  shares  in  Class  A  and  2,374  in  Glass  B, 
and  with  a  few  exceptions  the  persons  returned  as  contributories  in  Class 
B  were  also  found  in  Class  A.  He  therefore  did  not  consider,  having 
regard  to  all  the  contingencies  of  the  case,  and  seeing  that  some  persons 
would  fail  to  pay,  that  a  call  of  £70  per  share  would  be  too  much. 

Mr.  Torr,  solicitor,  complained  that  the  statement  of  Mr.  Turquand  did 
not  come  up  to  the  present  date. 

Mr.  Denton  said  that  if  Mr.  Torr's  client  would  pay  the  expenses  of 
such  a  process,  it  would  be  furnished  at  once. 

Mr.  Turquand  said  there  was  no  probability  of  the  assets  exceeding  the 
estimate.     The  liabilities  had  <^run  off"  £660,000. 

Mr.  Torr  said  of  course  they  must,  to  a  large  extent,  rely  on  the  official 
liquidator ;  but  it  was  generally  usual,  he  thought,  before  making  a  call, 
to  give  precise  information  as  to  the  finances  up  to  the  period  ef  con- 
vening the  meeting  for  such  purpose. 

Mr.  Buckley. — It  would  be  a  very  great  expense. 

Mr.  Torr  thought  that  after  all  there  would  not,  perhaps,  be  much  varia^ 
tion. 

Mr.  Buckley. — Then  let  there  be  a  call  of  £70  per  share. 

Mr.  Feamley  wished  to  know  when  it  was  to  be  paid. 

Mr.  Turquand  suggested  in  a  month. 

This  was  agreed  to,  and  the  meeting  adjourned. 


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77 

BANKING  AND  FINANCIAL  ANECDOTES. 
No.  I. 

THE   FOUNDKR   OF  THK  BANK    OF   KKOLAND. 

"  Tbe  world  knows  nothing  of  its  greatest  men,"  says  a  philosophic 
poet ;  and  it  b  astonishing  how  little  is  known  of  the  founders  of 
^reat  ddes,  or  cities  which  once  were  great ;  of  great  institutions,  or 
of  the  originators  of  great  theories,  religious  or  politicaL     Certainlj 
the  founder  of  the  Bank  of  England,  if  a  man  be  measured  by  the 
effects  he  has  produced,  should  be  reckoned  amongst  our  great  men, 
and  we  know  but  little  of  him.     Mr.  Francis,  in  his  "  History  of  the 
Bank  of  England,"  tells  us  that  William  Paterson-^who,  by  the  way, 
was  not  only  the  founder  of  the  Bank  of  England,  but  the  projector 
of  the  present  Bank  of  Scotland — was  bom  in  Traillflalt,  in   the 
county  of  Dumfries,   in    1658.     "  Having  been   educated   for   the 
church,  he  indulged  a  naturally  adventurous  disposition,  by  visiting 
the  West  India  Islands,  under  pretext  of  converting  the  Indians. 
His  real  oocapation  is  stated,  however,  to  have  been  very  different, 
ts  be  mingled  with,  and  perhaps  formed  part  of  those  daring  bucca- 
neers, the  exploits  of  whom  form  so  romantic  a  chapter  in  the  bye- 
ways  of  history.     While  roving  about  the  beautiful  islands  of  the 
western  Indies,  Paterson  loved  to  listen  to  the  buccaneers,  who,  after 
a  stormy  and  eventful  career,  delighted  in  relating  the   glories  of 
tWir  early  achievements  ;  and,  with  memories  which   still  lingered 
on  thdr  past  lives,  recounted  with  transport  the  ease  with  which  they 
had  paased  from  one  sea  to  another,  driving  before  them  the  plunder 
th^  had  ftoqiiirecL     From  them  he  heard  of  precious  metals  in  the 
hovels  of  the  earth,  of  fine  tracts  of  land  little  known  to  Europeans, 
aad  of  rirers  sparkling  over  sands  of  gold.     The  romance  which  fired 
the  imagination  of  the  youth,  was  productive  in  the  maturity  of  his 
nianitood  of  the    unfortunate   Darien  expedition."     The  disastrous 
£ulare  of   this     enterprise  is    matter  of    history,   and  it  is   here 
Tfkned  to    in    oonsequence  only  of  the   name    with  which  it  is 
identified ;  for    *'  Williani  Paterson,  the  first  to  leave  his  native  soil  at 
Lei'th,  and  the    hist   to   quit  Darien,  saw  with  an  anguish  almost 
iiiexprambley    the     failure    of   his    cherished   scheme."      A   writer 
of  tAetime  affords  ««  a  passmg  glance  at  the  man  : — "  The  colonists," 
^  ays,  *'fnve    Paterson  due  praise,  for  he  hath  been  diligent  and 
true  to  the  encL        He  looks   more  like   a  skeleton  than  a  man." 


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78  Banking  and  Mnancial  Anecdotes. 

Paterson  himself  touchingly  corroborates  this.  ''When  the  rest 
were  preparing  to  go  away/'  he  says,  ''  I  was  left  alone  on  shore  in  a 
weak  condition.  None  visited  me  except  Captain  Drummond,  who, 
with  me,  still  lamented  the  thoughts  of  our  leaving  the  place,  and 
prayed  God  that  we  might  hear  from  our  country  before  we  left  the 
coast."  The  remnant  of  an  expedition  which  had  left  their  native 
chores,  their  hearts  beating  with  high  hopes,  and  their  imaginations 
picturing  *'  full  many  a  sanguine  scheme  and  fraught  with  loveliness," 
were  brought  so  low  on  their  determining  to  abandon  their  project, 
that  the  few  returning  adventurers  were  physically  too  weak  to  weigh 
the  anchor  of  the  leaky  vessel  destined  to  convey  them  home. 
Among  this  little  forlorn  company  was  the  projector  of  the  scheme 
which  was  now  coming  tq  so  disastrous  a  conclasion  ;  and  the  failure 
of  which  weighed  so  heavily  upon  him  that  foi;  a  time,  during  this 
miserable  return  voyage,  he  lost  his  reason. 

If  Paterson's  name,  is,  however,  connected  with  this  gigantic  fiiilure, 
it  is  identified  with  one  grand  success — ^the  Bank  of  England,  to  say 
nothing  of  that  of  Scotland.  The  Bank  of  England  was  established 
in  1694,  and  the  name  of  William  Paterson,  the  founder,  was  on  the 
Hst  of  directors  for  the  first  year,  but  only  for  that  year.  His  resigna- 
tion of  the  office  of  director,  could  the  facts  connected  with  it  be 
fully  ascertained,  would  but  be  another  illustration  of  an  oft-told 
tale.  "  The  persons  to  whom  he  applied,"  said  Sir  John  Dalrymple, 
"  made  use  of  his  ideas,  took  the  honour  to  themselves,  were  civil  to 
him  awhile,  and  neglected  him  afterwards."  The  institution  which 
he  founded  remains,  grand  in  its  influence  and  mighty  in  its  poorer, 
but  the  memory  of  its  founder  is  preserved  only  by  a  few  faint  touches 
of  the  historian's  pen ;  and  no  more  touching  epitaph  could  be 
written  on  the  enterprising  Scotchman  than  this  brief  mention  of 
him  by  one  of  the  wi-iters  of  Queen  Anne's  reign  :  "  Paterson  sur- 
vived many  years  in  Scotland,  pitied,  respected,  but  neglected." 


THE  GREAT   FINANCIER  AND   THE    BATTLE   OP   NAVARINO. 

That  Navarino  was  one  of  the  decisive  battles  of  the  world  cannot 
be  doubted.  Alison  thus  writes  relative  to  its  effects  on  the  current 
of  events  in  Europe  and  Asia.  "  No  words  can  convey  an  idea  of 
the  transports  of  joy  which  pervaded  entire  Greece  when  the  intelli- 
gence of  the  battle  of  Navarino  was  received.     Past  as  the  flaming 


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banking  and  Finatidal  Anecdotes,  79 

beacoDvhich  coureyed  the  news  of  the  £ill  of  Troy  to  Argos,  the 
jojoQs  tadings  were  transmitted  from  mountain  to  mountain,  from 
cz^  to  crag,  from  isle  to  isle,  and  one  throb  of  exultation  and  thank- 
falnoB  was  fdt  in  every  bosom.  Equally  great  was  the  seusation 
f  mdnoed  by  this  memorable  event  over  entire  Christendom.  Never, 
«ve  by  Ae  taking  of  Jerusalem,  in  1199,  by  the  crusading  warriors 
uii'ier  Godfrey  of  Bouillon,  had  so  unanimous  a  feeling  of  exultation 
[^Traded  the  Christian,  world.  It  exceeded  that  f^lt  at  the  battle  of 
Lepanto,  gained  by  I>on  John  of  Austria.  .  .  Slow,  but  certain, 
bad  been  the  march  of  divine  justice.  The  final  blow  was  not  struck 
till  many  opportanities  of  repentance  had  been  neglected  ;  but  when 
it  was  delivered,  the  balance  was  at  once  righted  ;  an  entire  people 
rr^e  &om  their  grave  ;  the  blood  of  Chios  was  avenged  by  the  flames 
of  Navarino. 

The  way  in  which  the  news  of  this  momentous  battle  was  first 
made  known  in  England  was  very  curious.     One  Saturday  evening 
in  November,  1827,  Rothschild,  the  millionaire   financier,  made  hii 
appearance  at  the  office  of  the  AUas^  then  the  leading  weekly  paper 
*A  the  day,  and  holding  a  high  position  in  the  estimation  of  the  com- 
mercial world.     This  journal  was  printed  and  published  at  Beaufort 
Hoose  in  the  Strand,  and  some  of  its   proprietors  were  said  to  be 
identical  with  the  proprietors  of  the  lottery  which  was  then  in  vogue. 
The  eminent  financier  had  evidently  something   important  on  his 
mind,  and  his  mere  appearance  in  the  office  of  a  well-known  journal, 
gave  rise  to  excitement.     He  brought  the  first  news  that  had  been 
reooved  in  England  of  the  battle  of  Navarino.     He  held  in  his  hand 
a  tofj  of  the  Jfoniieur  with  an  outline  of  the   &cta     But  it  was 
IB  Fresuhj  and  the  great  £nanoier  either  felt  himself  unequal  to  the 
task  of  transhition,  or  would  not  perform  it.     The  paper  was  just 
goiagto  pren  ;  the  editor  had  gone  ;  and  none  of  the  heads  of  the 
eitablishment  ooald  translate  the  despatch.     What  was  to  be  done  ? 
la  the  emergency  the  master  of  the  printing  establishment  remem- 
Wed  that  one    of  the   apprentice   boys  had   some    knowledge  of 
fnadt    "Tom"  (for  that  was  his  name,  as  the  story-books  say), 
vu  tfaereopon  called  down  from  his  composing-firame,  and  requested 
to  tmubte  the  dispatch.     This  he  readily  did,  and  went    to   his 
^ork  agaizL  mimblin^  at  receiving  not  the  slightest  acknowledge- 
aeot  for  his  services.     The  news  was  rapidly  inserted  in  the  Alkts, 
ud  the  inteUigcaoe  Ae^  over  the  town  like  wildfire,  none  caring  to 


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80  Revieic, 

know  who  had  been  the  humble  instrument  in  conveying  the  news  to 
the  public  in  their  own  language. 


THE   BANKER   AND   HIS   CUSTOMER. 

Old  Mr.  Lefevre,  the  father  of  the  late  Speaker  of  the  House  of 
Commons,  and  the  principal  founder  of  Curries  and  Co.'s  house  in 
Cornhill,  illustrated  the  theory  of  banking  one  day  to  a  customer  in 
a  significant  manner.  The  customer  in  question  was  one  of  those  men 
who  find  it  very  convenient  to  have  bad  memories.  His  account 
was  almost  always  overdrawn,  and  whenever  spoken  to  on  the  sub- 
ject, his  answer  was  the  same — ^he  really  had  forgotten  how  it  stood. 
At  last  Mr.  Lefevre,  who  had  watched  his  opportunity,  caught  him 

one  day  at  the  counter,  and  said  to  him,  "  Mr. ,  you  and  I  must 

understand  one  another  something  better  than  we  seem  to  do.  I 
am  afraiid  you  don't  know  what  banking  is ;  give  me  leave  to  tell  you 
— It's  7ny  business  to  take  care  of  your  money,  but  I  find  you  are 

always  taking  care  of  mine.      Now,  that  is  not  banking,  Mr. ; 

it  must  be  the  other  way ;  I'm  the  banker,  not  you ;  you  understand 
me  now,  Mr.  —  1  "* 


Equation  Interbst  Tables,  at  6J,  6, 6i,  7, 1\  8,  SJ,  9, 9J,  and  10  per  cent, 
calculated  for  the  use  of  bankers  and  others.  To  which  are  added 
commiBsion  tables  at  one-eighth  and  one-fourth  per  cent.  By  John 
Koss  CouLTHABT.  Longman  ^  Co.,  London;  A.  and  C.  Black, 
Edinburgh  ;  and  W.  Mc  Gee,  Dublin. 

In  our  June  number  we  briefly  reviewed  a  volume  of  Interests  Tables 
then  published  by  Mr.  John  Koss  Coulthart,  banker,  Ashton-under-Lyne, 
and  we  now  recur  to  the  book,  the  author  having  in  the  meantime  ex- 
tended the  rates  from  8  to  10  per  cent.,  by  the  addition  of  four  sets  of 
tables  advancing  consecutively  one-half  per  cent,  bevond  each  other.  He 
has  also  added  Commission  Tables  at  one-eighth  and  one-fourth  per  cent, 
which  will  be  found  very  convenient  by  accountants  in  country  banks, 
where  one-eighth  per  cent,  is  now  usually  charged  on  all  business  done  by 
customers  who  keep  a  creditor  account,  and  one-fourth  per  cent,  on  all 
transactions  in  an  account  where  the  customer  is  from  time  to  time  accom- 
modated with  advances.  The  extension  of  the  rates  beyond  8  per  cent, 
has  doubtlesslly  been  rendered  necessary  by  the  Bank  of  England  having 
maintainined  its  minimwm  rate  of  disootmt  at  9  per  cent,  for  such  a 
lengthy  period  in  the  months  of  September,  October,  and  November,  and 

*  D.  Hsrdcastle,  Jan.,  "  Banks  and  Bankers." 


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Review.  81 

^e  pro^iect  that  there  still  is  of  money  remaining  at  tolerably  high  rates 
in  ccoueqnenoe  of   the   heavy  calls  which  have  to  be  paid  on  several  im- 
^«irtuii  foreign  loajis,  and  the  pressing  requirements   of  many   of    the 
tmvif^iil  and  oommercial  companies  that  have  recently  been  formed  in  this 
countij.    These  tables,  however,  it  is  to  be  hoped  may  now  be  considered 
roSiikiitiy  comprehensive  for  the  calculation  of  any  rate  of  interest  likely  to 
he  charged  by  bankers  for  some  years  to  come,  and  at  the  present  time  they 
most  prove  of  great  practical  utUity  to  all  who  keep  their  accounts  on  the 
Scr)tti^<ff  progressive  system,  as  without  such  tables  the  time  and  labour 
cl  accauntaats  must  be  nearly  doubled,  and  the  liability  to  error  increased 
probably  tenfold.     But  besides  the  advantages  referred  to  in  the  calcula- 
lioD  of  interest  exceeding  five  per  cent.,  these  tables  will  be  fotmd  extremely 
useful  in  the  making  up  of  accounts  at  minute  fractional  rates  of  interest 
beneath  five  per  cent.,  which  has  often  to  be  done  in  the  ordinary  state 
of  the  money  market.    For  instance,  the  half  of  9^  per  cent  is  4f  per 
cent. ;  the  half  of  8^  is  4^  ;  the  half  of  7^  is  3] ;  and  so  on  down  through 
the  various  rates  in  the  volume.    Though  these  tables  have  been  pub- 
lished principally  for  bankers,  yet  they  will  also  be  found  more  convenient 
than  any  other  by  all  persona  enaged  in  interest  calculations,  as,  from  our 
own  experience,  we  can  unhesitatingly  affirm  that  no  one  who  has  used 
radi  ta^es  for  a  short  time,  and  thoroughly  understands  their  principles 
and  application,  will  ever  voluntarily  relinquish  them  for  any  other  descrip- 
tkm  yet  print^.      Their  chief  excellence  consists,  as  we  stated  in  our 
former  article,  in  being  easier  of  reference,  freer  from  losing  the  fractions 
of  a  penny,  less  liable  to  error,  and  requiring  fewer  extractions  in  collecting 
the  interest  than  other  tables,  and  when  we  add  that  they  have  been  con- 
tinuously used  and  appreciated  by  the  banks  in  Scotland  for  the  last  eighty 
years,  we  have  given  perhaps  the  best  evidence  that  could  be  adduced  of 
their  practical  superiority.     Indeed,  the  saving  of  time  in  the  making  up 
€€  aecoonts  at  the  periods  of  general  balancing  is  held  by  all  bankers  to  be 
of  vital  importance,  for  as  no  transactions  of  a  subsequent  date  can  be 
posted  to  an  account  until  after  it  has  been  balanced,  the  exact  amount  of 
a  caslomer's  debt  or  credit  is  a  matter  of  uncertainty  whilst  that  operation 
is  in  a^bevance,  but  so  rapidly  is  the  balancing  of  accounts  effected  with 
tables  of  the  nature  of  those  under  review,  that  we  have  frequently  known 
•ecounianis  in  banks  balance  thirty  accounts  per  hour,  or  after  the  rate  of 
one  aoooont  in  every  two  minutes.     In  very  many  of  the  banks  whose 
aocoQBli  are  kept  on  the  progressive  principle,  the  whole  of  the  current 
aooonnti  are  balanced  on  the  evening  of  the  same  day  on  which  the  general 
balance  occurs ;  but  we  believe  that  it  would  be  utterly  impossible  to  do  so 
in  the  great  majority  of  existing  cases  if  it  were  not  for  the  facilities  afforded 
by  intoest  and  commission  tables  like  thosepablished  by  Mr.  Ooulthart.  We 
have  been  led  to  make  these  remarks,  not  so  much  for  the  purpose  of  praising 
Mr.  Coulthart's  tables,  though  they  are  deserving  of  high  commendation, 
is  vith  the  view  of  inducing  those  bankers  who  still  adhere  to  the  old- 
Uiiooed  laborious,  dilatory  plan  of  reducing  the  charges  and  allowances  on 
«Wf  separate  bill  and  draft  they  receive  into  pounds,  (killings  and  pence  at 
H^^eoiihe  transaction, to  discontinue  that  practice  without  delay,and  in- 
iteid  thereof  to  simply  multiply  the  number  of  days  by  the  sum  of  money,  be 
H  UU  or  balance  of  account,  and  carry  that  product  into  the  debtor  and 
creditor  interest  column,  leaving  it  there  tiU  all  such  products  are  added 
tamthfir  at  tho  end  of  t^©  ^^  7®^*  a^<i  reduced  to  pounds,  shillings,  and 
M^W  «ie  operation  with  equation  interest  tables.    Thia  plan  will  save 


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82  United  Damtbian  Principalities  Loan. 

much  time  and  labour ;  and  to  ascertain  the  ayerage  yalue  of  money  for 
the  half  year  it  is  only  neoeesary  to  take  £100  and  multiply  it  by  the 
number  of  days  during  which  each  separate  rate  of  interest  existed  in  the 
course  of  the  six  months,  and  having  applied  the  appropriate  interest 
tables  to  these  different  products  respectively,  and  added  the  interest  items 
together  as  collected  from  the  tables,  the  amount  will  be  the  average 
interest  on  £100  for  the  half  year,  or  if  doubled,  the  average  rate  per 
centum  per  annum.    No  doubt  there  are  exceptional  accounts  in  all  banks 
which  would  have  to  be  treated  differently ;  but  we  are  at  present  speak- 
ing of  banking  accounts  generally,  and  of  the  most  approved  method  of 
keeping  and  balancing  them.    In  sidopting  the  plan  recommended.  Equa- 
tion Interest  Tdbles  are  almost  indispensable,  and  as  those  published  by 
Mr.  Coulthart  are  by  far  the  most  comprehensive  of  the  kind  ever  printed, 
we  have  no  hesitation  in  bringing  them  under  the  special  notice  of  our 
readers,  and  in  recommending  them  as  being  in  every  way  thoroughly 
serviceable  and  trustworthy.      We  may  add  that  the  work  in  its  en- 
larged form  is  characterised  by  the  same  distinct  style  of  printing,  and 
careful  manipulation  of  stereotyping,  which  distinguished  the  issue  from 
the  plates  in  Jtme ;  and  Messrs.  Harrison  and  Sons,  of  St.  Martin's  Lane, 
have  in  their  department  shown  how  safely  they  may  be  trusted  with 
similar  work,  which  is,  perhaps,  the  most  difficult  to  manage  accurately 
of  any  connected  with  letter  press  printing. 


UNITED  DANX7BIAN  PRINCIPALITIES  LOAN. 

The  prospectus  of  the  United  Danubian  Principalities  loan  of 
£916,000  has  been  issued.  It  in  brought  out  under  the  auspices  of 
the  Imperial  Ottoman  Bank  and  Messrs.  Stem  Brothers,  who,  acting 
on  behalf  of  themselves,  the  International  Financial  Society,  the 
Soci6t6  G4n6rale  of  the  Ottoman  Empire,  and  others,  notify  that 
they  are  prepared  to  receive  subscriptions  at  the  price  of  86  for  each 
£100  stock.  The  interest  is  7  per  cent  per  annum,  with  a 
sinking  ftind  of  2  per  cent  per  annum,  the  bonds  to  be  re- 
deemed by  annual  drawings,  and  paid  off  at  par  in  London  in 
sterling.  The  inter^t  and  sinking  fiind  of  this  loan  are  specially 
guaranteed  by  a  first  charge  upon  the  Customs  revenues  of  the  united 
Principalities.  It  appears  that  the  Customs  revenues  amounted  in 
1861  to  £258,700  ;  the  total  estimated  by  the  Ministry  for  1865  is 
£332,100  ;  the  annual  amount  required  for  the  interest  and  sinking 
fund  is  £82,440.  Since  August  last,  tlie  date  when  the  oontract 
was  concluded,  the  payments  have  been  regularly  made  in  oonfoimity 
with  the  agreement.  Discount  at  the  rate  of  7  per  cent,  will  be 
allowed  on  payments  in  fxill  in  anticipation.  The  interest  will  date 
from  the  Ist  of  September,  and  this,  with  the  discount  allowed  in 
prepayments,  will  render  the  price  of  issue  equivalent  to  about  83 
per  cent  Looking  at  the  reimbursement  of  the  bonds  at  par  by 
means  of  the  ftiTiking  fund,  the  calculated  return  is  about  10  per 
eent  per  annum.     This  is  the  first  foreign  loan  which  the  Princi- 


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Monte  Video  European  Loan.  83 

p:ilitieB  haye  contracted,  and  there  is  no  internal  stock  existing. 
£i^tf  per  cent,  of  the  entire  loan  is  to  be  applied  for  the  indemnity 
to  \»  pud  for  the  secularisation  of  the  convent  property,  by  which 
mesBs  the  revenue  of  the  Crovemment  will  be  increased  to  a  much 
lazger  extent  than  their  expenditure  will  be  by  this  loan.  Messrs. 
Gijn,  Milk,  Currie,  and  Co.,  are  the  bankers ;  and  the  brokers  are 
P.  Cazenove  and  Oa 


DANISH  FIVE  PER  CENT.  DEBENTURES. 

MEasBa.  R.  Raphael  and  Sons  have  announced  an  issue  of  Danish  Five 
pear  Cenl  Government  Debentures  to  the  extent  of  £728,000.  The 
Soand  dues  receivable  from  Russia,  of  which  a  lai^e  proportion  remain 
to  be  paid,  are  pledged  as  security  in  the  first  instance,  and  in  addition 
**•  all  the  means  and  revenue  of  the  Danish  state  and  finances."  The 
circular  intimates  that  the  subscription  price  is  to  be  94^  per 
cpnt.,  payable,  25  per  cent,  on  allotment,  25  per  cent,  on  the  15th  Dec., 
1^64^  ^  per  cent,  on  the  16th  January,  1865,  aud  19^  per  cent,  on 
the  15th  February,  1865.  Discount  is  to  be  allowed  at  the  rate  of  5 
per  0^1 1.  per  annum,  and  no  application  will  be  received  after  the  1st 
Deoonher.     The  debentures,  it  is  arranged,  shall  become  due  in  sums 

varying  from  X21,000  to  £38,000,  at  specified  dates  down  to  May 

IhTT,  and  of  course  will  be  redeemed  at  par. 


MONTE  VIDEO  EUROPEAN  LOAN. 

The  pnyposala  have  been  issued  of  the  Monte  Yidean  European  loan 
of  £1,000,000.  The  amount  is  to  be  placed  in  bonds  to  bearer  of 
£100  each  at  the  price  of  60  per  cent.  The  operation  is  introduced 
iznder  the  sanction  of  Messrs.  Maua  and  Co.)  of  Monte  Video,  and 
■Mesnn  Maua,  McGregor  and  Co.,  of  London,  and  Messrs.  P.  Cazenove 
and  Ca  are  th)e  brokers.  The  bonds  are  to  bear  6  per  cent,  per 
umnm  from  thfe  Ist  of  January,  1865,  payables  in  sterling  hAlf-yearly 
in  London,  and  a  sinking  fund  of  1  per  cent.  in)l  be  appH^  annually 
in  the  purchase  or  redemption  of  the  bonds  in  sterling.  It  is,  in  fact, 
t  coQveraion  of  the  debentures  of  the  internal  debt  into  a  national 
Mi  stock.  The  interest  and  sinking  fund  are  secured  as  a  charge  on 
thegeaeRal  revenue  of  the  republic,  and  also  by  a  special  hypotheca- 
tion made  by  the  law  of  the  1 4th  of  November,  1863^  of  certain 
<Mte!M  and  anchorage  dues.  The  revenue  derived  from  tiiese  sources 
ii  stipulated  to  be  paid  weekly  to  Messrs.  Maua  and  Co.,  who  will 
remit  jnonthij  to  Messrs.  Maua,  M*Gregor,  and  Co.,  of  London,  for 
umoest  to  the  bondholders  the  proportion  necessary  for  the  payment 
of  the  intezvst  and  sinking  fund  on  the  external 'national  loan*     The 


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84  Communicatiom* 

patients  since  the  Ist  of  January,  1864,  have  been  regularly  reoeive<l 
by  Messrs.  Maua  and  Co.,  and  they  were,  therefore,  able  to  estimat^e 
with  accuracy  the  annual  amount  which  may  be  looked  for  fn>ni  the 
hypothecated  revenues.  This  estimated  annual  amount  exceeds 
jb'lOOjOuO.  The  average  annual  amount  required  for  the  sinking  fund 
and  the  interest  of  the  unconverted  portion  of  the  internal  debt  and 
for  the  £1,000,000  external  national  loan,  is  £90,000.  The  instal- 
ments are  spread  from  15  per  cent.  (5  per  cent  on  application,  and  lO 
per  cent,  on  allotment)  to  15  per  cent,  on  the  31st  of  March,  there 
being  four  monthly  payments,  making  the  total  60  per  cent.,  the  price 
of  issue.  Discount  at  the  rate  of  6  per  cent  per  annum  will  be  allo'wed 
on  payments  in  full  in  anticipation. 


TENDERS  FOR  BILLS  ON  INDIA. 

The  biddings  for  35,00,000  rupees,  in  bills  on  India,  took  place  on  the 
7th  December,  at  the  Bank  of  England.  The  proportions  allotted  were  : — 
To  Calcutta,  22,62,000  rupees ;  to  Bombay,  12,00,000  rupees  ;  and  to 
Madras,  38,000  rupees.  The  minimum  price  was,  as  before,  1«.  ll|^d.  on 
Calcutta  and  Madras,  and  Is.  ll\d.  on  Bombay.  The  applications  within 
the  limits  amounted  to  223  lacs.  Tenders  on  Calcutta  and  Madras,  at 
Is.  11  }d.,  will  receive  about  9  per  cent.,  and  on  Bombay,  at24.  O^d.,  abont 
80  per  cent.  All  above  these  prices  in  full.  Further  biddings  for  35,00,000 
rupees  took  place  on  the  2l8t  December.  The  proportions  allotted  were 
—to  Calcutta,  17,82,000  rupees ;  to  Bombay,  12,00,000 ;  and  to  Madras, 
6,18,000  rupees.  The  minimmn  price  was  fixed  at  1«.  11  ^d.  on  Calcutta 
and  Madras,  at  Is.  11  }4.  on  Bombay.  The  applications  within  the  limits 
amounted  to  65  lacs.  Tenders  on  Calcutta  and  Madras  at  1«.  lljd.  will 
receive  about  58  per  cent.,  and  on  Bombay  at  2$.  O^d.,  about  84  per  cent., 
all  above  these  prices  in  full. 


BANK   CLERKS'  SALARIES. 

19th  December,  1864. 
Sir, — The  February  number  of  the  "  Bankers^  Magazine  "  contained 
a  valuable  suggestion  to  bank  directors  from  a  correspondent,  which 
meets  with  the  unqualified  approval  of  a  bank  official  of  eighteen  years' 
standing,  in  your  October  number,  namely,  the  payment  of  bank  clerks' 
salaries  rMmthly.  I  feel  sure  that  bank  directors  would  not  hesitate  to 
adopt  the  suggestion,  did  they  know  how  many  of  their  employ^  would 

■  '  I  always 
share- 
i^  the 

latter  are  noted  for  their  strict  integrity,  high  morality,  and  right- 
mindedness,  the  bank  shareholder  must  be  a  great  gainer.  As  a  new 
year  will  soon  dawh  upon  us,  I  trust  it  will  be  seen  that  the  subject 


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Communications,  85 

kti  hii  the  oonsider&tioii  of  bank  directors,  both  in  town  and  country, 
for  I  ftm  perfectly  oonvinoed  that  it  is  a  reform  from  which  every  one 
oooBBctod  with  bojiks  will  reap  the  fruits. 

Yonrs, 

An  Old  Bank  Olkbk. 


THE  NEW  BANKS. 


S^— Can  any  of  your  readers  furnish  me  with  an  explanation  of  an 
item  frequently  lobe  seen  in  the  balance-sheets  of  new  banks,  viz.,  **  Stamps 
m  hand^'  in  amountB  varying  from  £400  to  £500. 

I  hare  been  connected  for  many  years  with  an  old-fashioned  joint-stock 
bank  in  a  mannf  actuiing  district,  doing  a  large  business,  and  I  can  only 
say  that  neither  stamps  nor  stationery  ever  appear  in  a  balance-sheet  as  an 
asset,  bat  have  been  alwajrs  charged  to  profit  and  loss  as  soon  as  paid  for ; 
and  also  thai  the  amount  of  such  payments  is  never  at  any  time  half 
andh  a  sum  as  generally  quoted. 

I  can  Qoly  suppose  the  stamps  consist  of  unused  cheques  and  drafts. 
la  it  sol 

Your  obedient  Servant, 

An  Unlimitbd  Bankbb. 

I^oerter,  20  December,  1864. 


CHEQUE  PAYABLE  TO  ORDER 

^is,^ — May  I  beg  the  favour  of  a  reply  to  the  following  question  in  your 
Acxt  number : — 

Would  a  banker  be  justified  in  refusing  to  honour  a  cheque  payable  to 

**  order"  having  a  memorandiun  of  horse- warranty  written  on  the  back 

^  the  drawer,  who  intended  that  the  endorsement  of  the  payee  should  be 

a  oompleticm  of  it,  but  the  latter  had  cancelled  the  memorandum  and 

«ndoiMd  the  cheque  in  the  usual  manner  only ;   the  reason  given  by  the 

Wnker  for  the  dishonour  being,  that  the  cheque  was  issued  on  a  condition 

whidi  ^  payee  had  not  fulfilhid,  and  the  drawer's  consent  was  necessary 

to  Bodi  non-fulfilment.    It  is  sjssumed  that  the  payee  himself  presents  the 

d^eqn^  and  not  a  third  party. 

I  am,  yours  faithfully, 
C. 

[We  think  the  banker  was  not  justified  in  refusing  to  pay,  if  the  cheque 
were  regularly  endoTBed,  unless  he  had*  notice  from  the  drawer  that  the 
vsmo^JDOft  also  be  signed.] 


BANK  OF  ENGLAOT)  NOTES. 

g^ VFliile  thaTT^"g  you  for  your  reply  to  my  note  published  in  the 

Jut  i^bar  of  the  Bankei^s  Magwine,  i  may,  Pe^^Ps,  b^J^lowed  to 

, _-  mwrmriBO  at  its  teuour,  for  m  the  **  Law  of  Bankmg"  by  J.  W. 

S^LJUdT^^  of  Wilson's  legal  handy-books),  published  in  1859,  it 

"iwK     ^^^JateTar  Iwl^  i^^ote  is  lost  or   destroyed,  payment  of  it,  if 
HTiene  a  ""^^^tfilcw  be  compelled  by  bringing  an  action  at  law  upon 

VOL.  XXV. 


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86  .  Communicatiom, 

it  (as  it  may  in  the  case  of  auy  other  lost  negociable  InstrumeDt),  and  a 
judge  may  order  that  the  loss  is  not  to  be  set  np  as  a  defence  to  the 
action,  upon  an  indemnity  being  given  to  his  satisfaction  against  the 
claims  of  any  other  person  upon  the  bill." 

If  you  consider  that  this  was  the  law  in  1859  will  you  be  so  obliging 
as  to  say  whether  it  has  been  altered  by  a  subsequent  decision  ? 

The  great  importance  of  the  question  at  issue  must  be  my  apology 
for  thus  troubling  you. 

I  am,  Sir, 

Your  obedient  servant,  A.  B. 

Dec.  16,  1864. 

[The  Editor  of  the  "  Handy  Book"  referred  to,  appears  to  have  gone 
beyond  the  decision  of  Lord  EUenborough  and  the  Act  17th  and  18th 
Vict.,  c.  125,  sec.  87,  for,  while  that  learned  judge,  in  the  case  of  Mayor  v. 
Johnson,  decided  that  the  holder  of  a  lost  half  note  could  not  recover,  the 
Act  in  question  refers  only  to  lost  bills  or  other  negotiable  instruments, 
and  not  to  parts  of  such  instruments.  The  subjoined  extract  is  from  the 
large  work  on  Mercantile  Law  by  John  Wiliam  Smith,  continued  by 
Dowdeswell,  the  same  doctrine  is  laid  down  by  Mr.  Justice  Byles,  in  his 
leading  work  on  Bills,  <&c.  (8th  Edition,  1862),  and,  however  much  the 
oorainentators  on  Lord  Ellenborough's  decision  may  doubt  whether  it 
would  be  upheld  if  the  issue  were  now  raised,  it  appears  to  be  the  law 
until  reversed. 

^  So,  if  a  bill  or  note  transferable  by  delivery  be  cut  in  halves,  and  half 
be  lost,  it  has  been  held  that  the  holder  cannot  sue  at  law  upon  the 
other  half.  In  Bayley  on  BiUs  of  Exchange,  it  is  remarked  that  Lord 
EUenborough  assigned  as  a  reason  for  the  decision  in  this  case,  that  the 
other  half  might  have  immediately  g^t  into  the  hands  of  a  bona  fide 
holder  for  value,  and  he  would  have  as  good  a  right  of  suit  on  that  as 
the  plaintiff  on  the  other  half,  which  afterwards  reached  them,  but  the 
maker  of  a  promissory  note  cannot  be  liable  in  respect  of  it  to  two 
parties  at  the  same  time,"  and  the  learned  author  adds,  '^But  quaere 
whether  a  man  who  tsdces  half  a  note  does  not  take  it  at  his  peril." 
There  seems  good  reason  for  the  doubt  implied  in  this  qusere ;  and  the 
case  of  Mayor  v.  Johnson  may  be  considered  open  to  review." — Smith's 
Mercantile  Law,  6th  edition,  page  284.] 


DECEASED  ACCOUNT. 

SiB, — ^Is  a  banker  legally  bound  to  honour  a  deceased  cuftomer'B  cheque, 
the  banker  having  sufficient  fimds  at  the  drawer's  credit  to  meet  it,  the 
drawer  having  died  in  the  interim  of  the  date  of  the  cheque  and  its  being 
presented  at  his  banker's  for  payment  ?  1  shall  esteem  your  reply  to  the 
foregoing  question  a  great  favour. — 1  am.  Sir  your  most  obedient  ser- 
vant, 

December  8th. 

Alpha. 

[No ;  he  is  not  justified  in  paying  the  cheque  of  a  deceiuied  person  after 
knowledge  of  the  death.] 


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Communications.  87 

CntCnLATION  OF  A  PBIVATB  COUirrRY  BANK. 
S^-^Can  a  joint-stock  bank  haying  no  cash  note  circulation  of  its  own, 
Aeg^Uy  issue  the  cash  notes  of  its  neighbour — a  private  country  bank — 
vhoee  drcaUiion  is  below  its  limit  ?  Z. 

[We  are  not  aware  of  any  legal  impediment.] 

AD  VALOREM  STAMPS. 

Snt,— Would  you  in  your  next  issue  kindly  supply  the  following  infor- 
mation, viz.: — ^Whether  an  inland  bill  drawn  after  date  upon  an  ad 
Talorem  stamp,  but  n^otiated  abroad,  also  requires  the  ad  valorem  foreign 
stamp  1  Also,  whether  bankers'  drafts  (not  in  sets)  upon  which  the  com- 
positioii  duty  is  paid,  are  liable  to  advalorem  foreign  stamx>s  if  negotiated 
abroad?— I  remain.  Sir,  yours  most  obediently, 

Newcastle,  Dec  13th^  1864.  B. 

(Inland  bills  duly  stamped  do  not  require  foreign  stamps  when  nego- 
tiated abroad,  nor  do  bankers'  drafts  upon  which  composition  is  paid. 

Cheques  or  drafts  on  demand  bearing  only  Id.  stamp  do,  however,  re- 
quire a  foreign  stamp]. 

CROSSED  CHEQUES. 

Sib,— Would  you  oblige  by  informing  me  whether  I  do  right  in  refus- 
ing  to  cash  a  cheque  presented  at  the  counter  crossed  with  two  transverse 
Ux^es  without  the  words  and  company  or  any  abbreviation  thereof  ? — ^I 
am^  Sir,  your  obedient  servant,  Telleb. 

fWe  think  you  do ;  the  words  ^  and  Co."  are  essential  to  the  crossing]. 


ENDORSED  CHEQUE. 
Sib, — In  your  number  for  September  last,  vou  say,  at  page  904,  that  **  in 
an  action  upon  a  cheque  endorsed  *  per  pro.  it  was  held  tiiat  the  banker 
waa  juatifi^  in  paying." 

"Woold  you  oblige  me  b^  stating,  in  your  next  number,  when  and  in 
what  oomt  the  action  was  tried ;  who  were  the  parties  to  it ;  and  in  what 
pubUcaiion  the  caae  will  be  found  reported. 

I  am.  Sir,  yours  respectfully, 
December  22nd,  1864.  H.  H. 

[The  action  referred  to  was  Cuthbert  v.  Bank  of  England,  tried  before 
Mr.  Baron  Martin,  about  four  or  five  years  ago,  but  we  cannot  find  it  re- 
ported.] 

^ 

CHRISTMAS  GRATUITIES  TO  CLERKS. 
Tbk  directors  of  the  National  Provincial  Bank  of  England  have  issued 
the  following  circular  to  the  whole  of  their  branches,  announcing  a  bonus 
and  an  extra  gratuity  on  the  salaries  of  their  officers  and  derks  for  the 
Tear  1864.  Thia  is  ft  most  satisfactory  proceeding,  and  is  worthy  of  imi- 
tation bv  the  majority  of  the  other  banking  institutions  throughout  the 

^'  **  National  Provincial  Bank  of  England, 

112,  Bishopsgate  Street,  Dec.  24. 
•Sir     We  bav©  lunch  pleasure  in  informing  you,  that  the  board  of 
(finckonrhave  to-day  again  ordered  a  bonus  of  10  per  cent,  to  be  presented 


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88  Estates  of  Failed  Firms. 

to  the  o9icors  and  clerks  of  the  company  upon  their  salaries  for  the  year 
1 864.  And  we  have  further  to  state  to  you  that  the  directors  having 
taken  into  consideration  the  many  circumstances  which  mark  the  olosiDg 
year  as  a  very  exceptional  one  in  the  matter  of  banking^  profits,  have  been 
pleased  on  this  occasion  to  make  a  special  grant  of  money  for  diistribation 
amongst  them,  which  will  allow  of  a  further  gratuity  of  5  per  cent,  being 
paid  upon  their  salaries. 

We  are,  your  obedient  servants, 

"  Alexander  Robinson,!  Joint  General 
"  Ed WAED  Atkinson,       /    Managers." 

On  the  eve  of  Christmas  the  directors  of  the  London  and  County  Bank 
distributed  to  the  several  officers  engaged  in  the  service  of  the  bank  i£10 
per  cent,  on  the  amount  of  their  respective  salaries,  with  the  addition  of 
6s.  per  cent,  in  respect  of  every  dear  year  of  service,  to  mark  their  appre- 
ciation of  continued  attachment  to  the  bank. 


[We  hope  to  have  many  more  such  announcements  to  make  in  the  coarse 
of  the  next  month. — Ed.  Bankers'  Magazine.] 


LONDON  AND  BRAZILIAN  BANK. 

The  directors  of  the  London  and  Brazilian  Bank  have  issued  their  report 
preparatory  to  the  approaching  meeting.  The  net  profits  for  the  half-year 
ending  the  30th  June  amount  to  £24,704,  and  considering  the  rate  of 
interest  on  this  side  the  directors  trust  the  result  of  the  six  months'  opera- 
tions vrill  be  satisfactory  to  their  co-proprietors.  Out  of  the  above  sum 
it  is  proposed  to  pay  a  dividend,  free  of  income  tax,  of  £1.  4«.  per  share, 
amounting  to  £15,600  (equal  to  interest  on  paid-up  capital  after  the  rate 
of  6  per  cent,  per  annum),  and  to  carry  forward  the  balance  of  £9,104  to 
the  next  account.  The  intention  of  the  directors  was  to  have  recommended 
an  increased  dividend,  but  in  consequence  of  the  late  important  failures  at 
Rio  de  Janeiro  it  is  deemed  more  prudent  to  carry  over  a  large  balance, 
and  to  make  the  distribution  proposed.  The  opportune  arrival  in  England 
of  Mr.  Saunders  from  the  Rio  branch,  simultaneously  with  the  announce- 
ment of  the  severe  crisis  in  that  city,  not  only,  it  is  stated,  afforded  the 
directors  the  gratifying  intelligence  of  the  satisfactory  position  of  that 
branch,  but  also  that  the  losses  were  likely  to  be  much  less  than  at  first 
anticipated.  And  there  is  every  reason  to  hope  that  these  will  be  more 
than  compensated  by  diminished  competition  and  the  general  improve- 
ment of  business.  By  the  last  advices  from  the  branches  it  appears  the 
operations  are  progressing  most  satisfactorily.  There  is  also  a  steady  in- 
crease of  business  in  Portugal. 


(SsinittB  of  Jfatlcb  Jtrms. 

THE  ESTATE  OF  MESSRS.  EARLY  AND  SMITH, 
Messrs.  Coleman,  Tiirquand,  Yoitngs  and  Co.  have  is-sucd  a  circular 
witli  an  approximate  statement  of  the  affairs  of  Messrs.  Early  and  Smith. 
The  amount  of  debts  and  liabilities  is  £81,369,  and  the  assets  £28,079. 
Tlie  firm  have  been  engaged  in  transactions  with  the  Confederate  States 


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Estates  of  Failed  Firms,  89 

aixi  alM>  with  the  Lieeds  Banking  Company.    Respecting  the  liquidation  the 
foUoTing  is  the  statement  in  the  circular  : — 

^^  Vie  are  requested  by  the  inspectors  to  forward  you  the  annexed  state- 
Diesttif  the  afEairs  of  this  firm,  and  to  inform  you  that  part  of  the  stock 
bas  beiaisold  {rom  the  premises  in  the  usual  course,  and  the  remainder  at 
disooimts  ranging  from  20  to  25  per  cent.,  payable  one-fourth  part  in  cash, 
ane-fourth  ^thin  one  month  from  this  date,  and  the  remainder  at  six 
mon^.  We  may  add  that  in  consequence  of  the  imperfect  state  of  the 
books,  more  particularly  the  cash  account,  we  have  been  engaged  in  an 
examination  thereof  on  behalf  of  the  Leeds  Banking  Company,  who  have 
the  largest  interest  in  the  estate.  Prior  to  the  payment  of  a  dividend,  which 
we  have  no  doubt  may  be  declared  in  the  course  of  next  months  we  shall 
be  glad  to  receive  a  statement  of  your  claim." 


THE  ESTATE  OF  WILLIAM  VILCHES. 

At  a  meeting,  on  the  27th  November,  of  creditors  of  Mr.  William  Vilches, 
of  75,  Mark  Lane,  merchant,  a  statement  was  submitted  for  consideration. 
It  appeared  that  ihe  liabilities  amount  to  £27,027,  with  assets  expected  to 
realise  £2,369.  The  failure,  it  was  said,  was  mainly  attributable  to  Mr. 
Vildien  having  made  himself  responsible  to  the  extent  of  £13,607  on  behalf 
of  S.  P.  Gon^ez,  and  Younger  and  Co.  Gronzalez  had  a  contract  with  the 
Spanish  Government,  and  Mr.  Vilches,  having  previously  had  business 
rdations  with  him,  was  induced  to  assist  him  in  completing  it.  Younger 
and  Co.  were  bankers  at  Cadiz,  and  have  recently  suspended  payment,  and 
Gonzalez  also  has  failed.  In  January  last  Mr.  Vilches  possessed  a  surplus 
of  £1,648,  and  the  deficiency  of  £24^58  appearing  on  the  statement  has 
consequently  arisen  between  that  time  and  the  26th  of  October,  the  date 
c£  the  suspension.  A  proposition  to  wind  up  the  estate  under  inspection, 
and  pay  a  coropoeition  of  2».  6d.  in  the  pound  by  instalments,  was  made, 
bat  it  was  ultimately  resolved  that  the  meeting  should  be  adjourned  for 
■even  days,  iu  order  that  further  investigation  might  take  place  to  ascertain 
wbe4hcr  a  better  offer  could  not  be  presented. 


THE  ESTATE  OF  MESSRS.  BROWN,  BUCKLEY  &  Co. 
At  a  meeting  of  the  creditors  of  Messrs.  Brown,  Buckley  and  Co.  held  on 
the  28th  November,  at  the  offices  of  Messrs.  Quilter,  Ball  and  Co.,  the  fol- 
lowing resolotion  was  passed  :  — ^^  That  as  the  accounts  presented  to  this 
meeting  leave  no  doubt  that  Messrs.  Brown,  Buckley  and  Co.  will,  at  an 
«Miy  period,  be  in  a  situation  to  pay  their  creditors  20s.  in  the  ix)und, 
they  he  requested  to  wind  np  their  estate,  and  to  pay  as  soon  as  possible 
the  debts  due  from  them  to  uieir  creditors,  it  being  understood  that  10s. 
in  the  pound  be  paid  forthwith." 


THE  ESTATE  OF  MESSRS.  JOHN  M'CALL  A  CO. 
A  VflBTUro  of  the  creditors  of  Messrs.  John  M'Call  and  Co.,  engaged  in 
i^  provision  trade,  was  held  on  the  1st  December,  when  the  statement  of 
accr»nnt«, presented  by  Mr.  J.  E.  Coleman,  of  the  firm  of  Messrs.  Turqiiarid, 
YoUD^aijd  Co., showed  debts  and  liabilities  of  £31, 7  04,  and  assets  of  £15,486. 
Aji  offer  of  10s.  in  the  pound  was  proposed,  and  carried  unauimously,  most 
of  the  crediU)TS  present  at  once  signing.  The  arrangement  is  to  bo  made 
brinatsiments  of  2«-  ^-  ^'^\  at  one,  four,  eight,  and  twelve  months. 


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90  Estatea  of  Failed  Firms. 

THE  ESTATE  OF  MR.  0.  WILSON. 

Thb  creditors  of  Mr.  0.  Wilson,  importer  of  silk,  met  on  the  1st  December, 
when  the  statement  of  aooounts,  prepared  by  Messrs.  Loveringand  Kinton, 
showed  debts  and  liabilities  £25,249,  and  assets  £21,660.  After  some  dis- 
cussion it  was  arranged  to  accept  a  composition  in  cash  of  lis.  6d.  in  the 
pound. 

THB  ESTATE  OF  MESSRS.  EYLES,  EVANS  <b  CO. 

A  MBETiNO  of  the  creditors  of  Messrs.  Eyles,  Evans,  Hands,  and  Wells, 
who  suspended  on  the  3rd,  was  held  on  the  22nd  December,  showing  lia- 
bilities £81,353,  and  assets  £59,205.  Mr.  White,  the  accountant,  explained 
at  considerable  length  the  present  position  of  the  estate  and  the  cause 
which  had  led  to  the  failure.  Sympathy  was  expressed  for  the  firm,  and 
an  adjournment  was  agreed  upon  to  enable  the  creditors  to  consider  the 
offer  that  was  made  of  10«.  in  the  pound  by  three  equal  instalments,  at 
four,  eight,  and  twelve  months.  Eventually  an  offer  of  11«.  in  the  pound 
was  accepted. 


THE  ESTATE  OF  MR  HENRY  GURNEY. 

At  a  meeting  of  the  creditors  of  Mr.  Henry  Gumey,  held  at  Birmingham 
on  the  23rd  December,  it  was  resolved  to  wind  up  the  estate  under  a  deed 
of  assignment.  A  statement  of  affairs,  prepared  by  Messrs.  Cooper 
Brothers  and  Co.,  showing  liabilities  £60,0(X),  against  assets  estimated  at 
£24,000,  was  submitted. 

THE  ESTATE  OP  MESSRS.  W,  J.  MORGAN  <b  Co. 
A  MEETiKO  of  the  creditors  of  Mr.  W.  J.  Morgan,  trading  under  the 
title  of  W.  J.  Morgan  and  Co.,  of  Leadenball  Street,  was  held  on  the  25th 
December,  when  the  balance-sheet,  presented  by  Mr.  J.  J.  Saffery, 
accountant,  showed  debts  and  liabilities  of  £14,781,  and  assets  £10,188. 
The  dificulties  of  the  debtor^  who  returned  a  year  ago  from  India  with  a 
fair  capital,  have  been  occasioned  by  the  late  fluctuations  in  cotton.  It 
was  arranged  to  take  an  assignment. 


THE  CITY  BROKERS. 
The  committee  of  Brokers  who  are  acting  for  the  members  of  the 
Stock  Exchange  not  sworn  brokers,  who  have  received  a  notice  from 
the  solicitor  to  the  corporation  of  the  City  of  London  calling  at- 
tention to  the  penalties  they  incur  by  acting  as  brokers  without  a 
licence  from  the  corporation,  met  again  to-day  in  the  rooms  of  the 
official  assignees  in  the  Stock  Exchange,  when  it  was  arranged  that 
they  should  take  measures  to  protect  the  members.  Whilst  many 
object  on  principle  to  the  paymant  of  any  sum  to  the  corporation 
of  London  there  are  others  who  would  willingly  discharge  the 
annual  £5  provided  the  oath  were  modified  and  some  of  the  objection' 
able  clauses  swept  away.  The  Committee  of  Brokers  will  bring  the 
matter  prominently  before  the  committee  for  general  puiposes,  in 
the  hope  that  they  may  be  induced  to  take  such  steps  as  may 
appear  expedient  under  the  anomalous  circumstances  of  the  case. 
» 


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91 


'gatt  of  ihj  months' 


Dub  op  Snt  W11.LIAM  Bbkkxley  Cai.l,  Babt. — Tbedenthof  this  gentleman, 
t  fofMa  in  the  banklDg-hoiise  of  Call,  Marten,  and  Co.,  Old  Bond  street,  took 
plaKoa  the  23rd  Oecember,  at  his  residence.  Bond  street.  The  deceased  Sir 
Vil£im  vas  bom  in  1815,  and  sacceeded  to  the  baronetcy  in  1851  ;  in  1841  he 
Earned  the  danghter  of  the  late  C.  W.  Oardiner,  Esq.,  of  Coombe  Lodge,  Oxon , 
hj  wboin  he  baa  left  a  son  and  two  daaghters. 


BANKING  OBITUARY. 


On  the  27tli  Nov.,  in  Paris,  Bobert  WilliamBon,  Esq.,  of  Scarborough, 
cbaiiman  of  the  Tork  City  and  County  Bank,  aged  57. 

On  the  Gth  December,  at  Ai^ol  Place,  Glasgow,  Mr.  William  Johnston, 
of  Glenorcbard,  Stirlingshire,  agent  for  the  Commercial  Bank  Glasgow, 
igeddd. 

On  the  23rd  I>eoember."At  his  residence  Bond  Street,  Sir  William 
Berkeley  Call,  Bart.,  partner  in  the  bank  of  Messrs.  Call,  Marten,  <b  Co., 
aged  49. 


MEBCANTILE  SUSPENSIONS. 


Tbs  fcdlowing  mercantile  suspensions  were  announced  during  the  month 
of  Deeember  :— 

Meaars.  Wilson,  Bowles  <b  Co.,  London,  East  India  merchants. 

Menrs.  Eyles,  Evans  <k  Co.,  London,  silk  trade. 

MeBavs.  Hutter,  Broughet  <b  Co.,  London,  merchants. 

Mesn.  Sterling,  Gordon  <b  Co.,  Glasgow,  merchants. 

Meaais.  Beiger  Brothers,  London,  mcSsd  brokers. 

Mr.  Henry  Gumey,  Birmingliam,  timber  dealer. 

Mr.  £.  lil^d,  Birmingham,  foreign  fimber  trade. 

Messrs.  Hill  is  Wegueun,  London,  Bussian  merchants. 

MenxB.  !Edward  De  Coster  <b  Co.,  London,  Brazilian  trade. 

Messrs.    Gnmdler,  Ormond  <b  Co.,  London,  Italian,  and   Spanish 

trades. 
MesBCB.  Perry  Ss  Waagen,  London,  commission  agents. 


MONTHLY  CHRONOLOGY. 


Dec.  2. — Suspensian  annoimoed  of  Messrs.  Wilson,  Bowles  and  Co.,  of 
MiBOBg  Lane,  East  Jjidia  merchants,  with  liabilities  reaching  to  about 

£fto/no. 

3.— Faflure  of  Meesrs.  Eyles,  Evans  and  Co.,  of  Cannon  Street  West,  in 
tile  alk  trade,  with  debts  to  the  amount  of  £100,000. 


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92  Bank  Movements. 

5. — Stoppage  of  Messrs.  Hutter,  Droughet  and  Co.,  of  Ghracechurch 
Street,  merchants,  with  £30,000  liabilities. 

8. — The  Directors  of  the  Bank  of  France  reduced  their  rate  of  dis- 
count from  6  to  6  per  cent. 

10. — The  Directors  of  the  Bank  of  Frankfort  reduced  their  rate  of 
discount  to  5  per  cent. 

12. — Susx)ension  of  Messrs.  Sterling,  Gordon  and  Co.,  of  Glasgow, 
merchants,  with  £180,000  liabilities. 

15. — The  Directors  of  the  Bank  of  England  reduced  their  rate  of  dis- 
count from  7  to  6  per  cent. 

15.— Failure  of  Messrs.  Berger  Brothers,  London,  metal  brokers. 
Liabilities  not  stated. 

22.— The  Directors  of  the  Bank  of  France  further  reduced  their  rate  of 
discoimt  from  5  to  4^  per  cent. 

22.— The  Bank  of  Holland  reduced  its  rate  of  discount  from  6i  to  6 
per  cent. 

22. — Susx)ension  announced  of  Mr,  Henry  Gumey,  of  Birmingham, 
timber  dealer. 

23.— Failure  of  Mr.  E.  Lloyd,  of  Birmingham,  in  the  foreign  timber 
trade. 

27.— Suspension  of  Messrs.  Hill  and  Weguelin,  of  Alderman's  Walk, 
Russian  merchants,  with  debts  extending  to  £130,000. 

27. — Suspension  of  Messrs.  Edward  De  Coster  and  Co.,  London,  in 
the  Brazilian  trade,  with  £60,000  liabilities.  • 

27.— Failure  of  Messrs.  Grundler,  Ormond  and  Co.,  of  London,  in 
the  Italian  and  Spanish  trades.    Debts,  £20,000. 

27.— Stoppage  of  Messrs.  Perry  and  Waagen,  commission  agents. 
Liabilities  about  £12,000. 


BANK  MOVEMENTS. 


Mr.  Henry  Worms  has  joined  the  direction  of  the  Land  Mortgage  Bank  of 
India, 


At  the  meeting  of  the  London  and  Northern  Bank,  resolations  were  passed 
for  an  amalgamation  with  the  Midland  Banking  Company. 


Mr.  Coleman,  one  of  the  official  liquidators  of  the  Northxunberland  and  Dor- 
ham  District  Bank,  having  obtained  the  sanction  of  the  Vice  Chancellor  Kin- 
dersley  to  pay  a  ^ther  dividend  of  Is.  in  the  pound,  it  was  paid  on  the  20tli 
and  'iilst  December  at  Newcastle,  thus  making  the  aggregate  amount  of  divi- 
dends 19«.  6d.  in  the  pound. 

A  further  dividend  of  5«.  in  thepound,  making  with  former  dividend  155.  in 
the  pound,  has  been  paid  by  Mr.  William  Tnrquand.  the  official  Uqoidator  of 
the  Herefordshire  Buiking  Company. 


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93 

MO^SETAKT  REVIEW  FOR  THE  MONTH  OF  DECEMBER. 

Thus  lias  been,   a  great    change  for  the  better  in  the  appearanoe  of 

finmryyl  aSaixB  ^witlim  the  last  three  weeks  or  a  month.    The  reduction 

by  the  Bank  of  England  of  the  rate  of  discount  from  7  to  6  per  cent., 

ud  by  the  Bank,  of  France  from  6  to  5,  and  then  to  4)  per  cent.,  are 

careanLStanoes  -which  have  done  muck  to  give  confidence  to  the  public. 

The  inftiix  of  specie  from  America  and  the  East  Indies,  the  contraction 

of  engagementii,  and  the  disposition  to  repress  speculative  adventure 

ooold  not  fail  at  length  to  exercise  their  effects,  and  now  the  results  are  seen 

in  fuQ  vrorking  force.     The  only  cause  for  a  demand  for  money  at  the 

pfeBent  moment  is  the  necessity  for  providing  for  the  holidays,  and  the 

engagements  ^sJling  due  at  the  end  of  the  year.    In  this  respect  the  in<& 

cpuiy  will  no  donbt  continue  imtil  the  4th  of  JimUary,  and  from  that 

date  forward  we  may  reasonably  calculate  upon  a  better  state  of  things. 

The  talk  of  a  prospect  of  large  remittances  being  made  to  Egypt  has 

proved  incorrect;    some  quantities  of  sovereigns  have  gone,  but  not  in 

the  proportion  expected,  and  it  is  believed  that  no  fuither  large  totals 

wiU  be  required  before  February  or  March  at  the  earliest. 

The  market  for  English  securities  has  not  varied  in  any  important  degree. 
There  was  at  one  moment  a  decline  through  pressure  of  sales,  but  when 
■loney  became  more  abundant,  greater  activity  was  manifested.  Latterly 
a  decided  recovery  has  taken  place  and  prices  have  rallied,  leaving  off  at 
the  end  of  the  month  at  their  best.  Some  good  purchases  of  Consols  have 
reeeotiy  been  effected  on  behalf  of  insurance  and  other  companies  having 
balances  to  employ. 

Foreign  stocks  have  not  largely  fluctuated.  After  being  dull  with  a 
paztuil  depression  a  recovery  has  taken  place,  leaving  prices  in  a  better 
pontaontluuQ  thevwere  before.  THe  market  it  was  thought  would  be 
hesry  atthe-middle  of  the  month,  but  the  tendency  is  now  evidently  in 
the  rig^  direction.  At  the  commencement  of  the  year  it  is  highly  pro- 
bahle  we  shall  see  fresh  indications  of  active  speculation.  Spanish,  Mexican, 
and  Greek  will  again  come  into  vogue. 

The  nulway  market  was  better,  but  there  was  no  great  rise  in  prices.  It 
is  expected  that  this  description  of  property  will  come  into  greater  repute 
after  the  half-yearly  reports  shall  have  been  published.  T^ie  increase  of 
tralfic,  the  economical  working  of  the  lines,  and  the  great  competition 
exhibited  by  directors  will,  it  is  believed,  assist  largely  to  sustain  divi- 
dends. Indian  and  foreign  railway  shares  have  been  amasingly  well 
sustained. 

Bank,  credit,  and  finance  shares  have  been  quiet,  lliey  have  shown  a 
fair  amount  of  business  with  very  steady  prices,  but  there  has  heea  no 
genenl  advance.  The  operators  ^e  waiting  for  some  intimations  with 
Tespect  to  dividends,  and  if  these  shall  be  encouraging,  then  a  general 
advance  will  ensue. 

The  produce  markets  have  been  better,  but  there  is  yet  great  absence  of 
BeHvity,  At  the  opening  of  business  subsequently  to  the  holidays,  wo 
nay  look  for  partial  animation. 

-: # : 

VOL.  xxr.  8 

Digitized  by  VjOOQIC 


94 

THE  GRAIN  TRADE. 

Thbbb  has  not  been  any  material  alteration  in  the  Grain  Trade  during 
the  past  month,  as  regards  the  extent  of  business,  but  prices  have  through- 
out had  a  slightly  declining  tendency.  Good  dry  samples  of  wheat  have 
been  rather  more  in  request,  but  the  supply  has  been  ample.  Tnere  has 
been  a  fair  market  for  barley,  at  rather  steadier  quotations.  Oats,  beans, 
and  peas,  have  not  been  quite  so  much  inquired  after,  and  prices  have 
4)ecome  weakened.  The  latest  official  averse  quotations  were  : — Wheat, 
38«.  Id.  per  qr. ;  barley,  28s.  4ci. ;  oats,  19a.  9d ;  rye,  29s,  Id. ;  beans, 
37«.  2d. ;  and  peas,  35s.  3d.  per  qr. 

The  Gazette  returns  for  England  and  Wales  have  been  : — 

CoTreBpoudin^ 
Week  Wheat.  Weekly  Six  Weeks'  Six  Weeks 

ending,  Qrs.  sold.  Average.  Average.  Dnty.      Last  Year. 

1864,  «.     d.  a.     d.  :     d,  ».      d. 

Nov.     26  170,836  .,.  38  8  ...  38  9  ...  1  0  ...  40  O 

Dec.        3  101,757  ...  38  5  ...  38  9  ...  1  0  ...  40  1 

„       10  96,245  ...  38  4  ...  38  8  ...  1  0  —  40  4 

„       17  96,985  ...  38  1  ...  38  6  ...  1  0  ..•  40  6 

The  importations  since  the  harvest  of  1864  have  been  : — 

Wheat.  Other  Grain.        Total. 

Cwts.  Cwtft.  Cwts. 

Jlighteen  weeks  ended  19th  Nov.  ...  7,967,603  9,300,076  17,267,679 
Four  weeks  ended  17th  Dec 1,176,626    1,791,248      2,967,774 

9,144,129  11,091,324  20,235,453 
And  the  weekly  averages  have  been : — 

Eighteen  weeks  ended  19th  Nov.       ...       442,000  517,000  959,000 

Four  weeks  ended  17th  Dec 294,000  447,000  741,000 

Less    148,000         70,000  218;00O 
^ 

STATE  OF  TRADE. 

T91  state  of  trade  has  rather  improved  during  the  last  mouth,  but 
still  there  is  no  general  activity.  Everyone  is  awaiting  the  commence- 
ment of  the  new  year  for  a  full  resumption  of  business. 


NOTICES  TO  CORBESPONDEHTS. 

Wo  have  arranged  in  f\itiire  to  issue  a  double  number  in  February  and  August,  instead  as 
formerly  in  Hay  and  Kovember.  This  has  been  rendered  necessary  by  the  great  increasB  of 
the  meetings  or  the  Banks  and  Discount  Companies,  which  will  bo  always  carefully  collectcMi 
in  the  pages  of  the  .BaiiJter*'  Magazine.  We  shall  also  give  the  proceedings  of  the  variooa 
Credit  and  Finance  Companies  aa  they  are  more  or  less  associated  with  banking,  so  that  our 
aubacribers  and  readcro  c»n  refer  to  them  without  diliiculty.  Correspondents  will  please  for* 
ward  communications  addresied  to  the  Editor,  No.  8,  liircliin^f  Lanej  subscriptions  and 
orders  as  usual  to  Messrs.  Groombridge  and  Sons,  Paternoster  Row,  or  Messrs.  WaterLovr 
and  Sons,  Carpenters'  Hall,  London  Wall. 

|{A3f CO.    (Liverpool.)— The  le?al  tender  in  silver  is  to  the  extent  of  40e. 

tiuBscRiBBB.— We  know  of  no  work  on  progressive  Banking  Book  Keeping.  The  Joint 
Stock  Companies  Directory  for  18S6.  just  issued  by  Metsra.  Charles  Barker  and  Bona,  will 
give  the  whole  of  iha  information  required. 

Baitkino  kVD  FiKAVciAL  Akbodotes. — It  will  be  perceived  firom  notice  elsewhere,  that  the 
Editor  of  the  Bankeirti'  Magazine  is  collecting  and  aiTanginfr  a  series  of  Banking  and  Fiixau« 
cial  Anecdotes.  Any  contributions  from  subscribers  and  readers  of  the  Magazine  will  be 
thankfully  received,  particularly  if  the  subject  matter  shall  not  have  previoaaly  appeared  in 
print    Nothing  vezy  personal  or  oli'ensive  will  receive  pubUcity. 


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ized  by  Google 


95 


BJtNS:  OF  FKANOE. 

DEBTOR. 


1 

Boeemberl. 

December  8. 

December  16. 

December  22. 

».               0. 

..         c. 

».          a 

r.           c. 

CkpiiilorttieBcuak   .^ 

183.200,000    0 

182,600,000    0 

182,500,000    0 

183,500,000    0 

mtuk  in  addition    to 

Cantil  (Art.  a,  Law 

•,842,316  08 

6,863,421    6 

6.893,069  36 

6,912.480  91 

Bfeeerr*  of  the   Baxilc 

ftBdiutanu^hea     .^ 

22,10S,760  14 

22.109,760  14 

22,106,760  14 

23,105,750  14 

NotMindraJation  ... 

4,000.000    0 

4,000,000    0 

4.000,000    0 

4.009.()00    0 

742,910,325    0 

722.291,476    0 

739.333,135    0 

731,  W7, 4/5    0 

Bsok-aoteB  '  to    order 

>nino«iplB  poyable 

■taghi          "     _ 

4,618,144    0 

6,866,493  16 

6,432,013  87 

6,774,783  38 

TreafiBiy  aeenut  cur- 

rea^  ceditor 

73.275.631    9 

81,169,733  69 

03.084.133  63 

103,359.256    6 

Cuzicat  ■ooaimts.  Puis 

134,Ml.a8l  78 

166,053,927  48 

149.571.991  44 

lJt>,(W'J.OO/  48 

Do.  brazkch  Daaks 

24.235.976    0 

22.914.101    0 

20,«99,60l    0 

:i0.lO&.508    0 

OiTideoiUpajAble     ... 
DbcoQiits  sad  tosdiy 

2.381,667  76 

2,206.195  76 

2,058.985  75 

l,99a,tf35  76 

18,203,781  88 

20,177,984    « 

21,023,606  87 

21.660,290  29 

2.688,736  17 

2.688.736  17 

2,588.736  17 

2,&*S,736  17 

P»driea...       ^. 

13.160,244    6 

10,338,379    6 

9.715,604  99 

9,415,957  45 

Total 

1,232,389,634  92 

1,239.076,196  67 

1,360,055,304  2^ 

1,237,994,169  61 

CKKDITOH. 


in  tlie  >nT^i»ti  boiikB 
^^eouBerdol  bfllo  oror- 

<lac      ._       

CatK^mtM  faiOa  dis- 

oooMoii,  Doi  yet  dae 

Do.  bnoefa.  teaka      ... 

ofbuaifia     Z^      .., 
IXx  lirasdi  bttks 
Do.  4M  VreaA  poblic 


1X>.  lijllia  branch  banla 
I>o.  oo  miwmy  aharee 

aad  ddbeatmres 
Do.  bf  the  tesneh  banks 
Oo.  OB  OMlt  Foncier 


riiiLtewichM    

Dou  i»  the  Stale  (Con- 
nJoaelO,  1867) 


Dou  diipoibie 

»f  ■     XanobOia^ea 
Jkmct  Jm»9,  1857) 


December  1.      December  8.      December  15.     December  22. ' 


r.  c. 

327,718,612  60 

20,638,694  63 

274.680,429  81 
289,790,364    0 

19,612,763  96 
4.602,500    0 

14,978.900    0 
8,368,310    0 

25,754,900    0 
17,586,450    0 

647,000    0 
414,450    0 

60,000,000    0 

12,990.760  14 
26,096,737  91 

100,000,000  0 

9,466,168  0 

2,413,«I7  8 
7,249,806  80 


l.SMW*«M  91 


T.      C. 

355,640,697  16 

685,176  34 

289,476,656  21 
277.444,407    0 

15,820,663  96 
41.864,910    0 

14,790.900    0 
8,307,810    0 

26.772,700    0 
17,884,250    0 

551,000    0 
827,890    0 

60,000,000    0 

12,080,750  14 
36^096,737  91 

100.000,000  0 


8,396,485  0 

3,460.76  &  30 
7,674,617  48 


Y.     c. 

361,562,024  16 

668,806  39 

301,207.229  87 
265,314,504    0 

14,076,585  16 
4,960,210    0 

14,724,400    0 
7,9J8,060    0 

26.030,900    0 
17,072,450    0 

643,300    0 
339,060    0 

60,000.000    0 

12,080,750  14 
36,606,737  91 

100,000,000  0 


8.330,078  0 

3,468,973  49 
5,250,653  12 


1.289,076,195  57 


1,260.055,304  22 


364,008,378  83 

708,763  66 

274,518,191  89 
287,0*>,1S5    0 

13,269,685  16 
4,869,184    0 

14,687,200    0 
7,596,550    0 

26,543,800    0 
16.787,150    0 

548,600    0 
414,760    0 

60,000,000    0 

12,980.760  14 
36,696,737  91 

100,000,000  Of 


»,348,U78    u 

2,819.230  21 
6.083,115  8o 


1,237,994,169  Ul 


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96 

FLUCTUATIONS  IN  ENGLISH  AND  FOREIGN  STOCKS  ANT> 
RAILWAY  SHARES. 


Not.  28Ui. 

Highest. 

LowMt. 

Price  on 
Deo.  27tli. 

English  Fukds. 

Consols           

90}  to  91} 

89}  xd 

88}  xd 

89)  to  ixd 

Exchequer  Bills 

5/  dis. 

3  pm. 

7/ dis. 

2/d.to3pm. 

FoBEioK  Stocks. 

Brazilian         

«_ 

100} 

m 

100 

Buenos  Ayres            

_ 

94 

93} 

94 

Chilian            



100 

99} 

100 

Ihitch  2)  per  cents 



63} 

62} 

63 

Mexican          

29i 

29f 

29 

29ft 

Peruvian  4)  per  cents.         ..; 

821 

84 

82} 

84 

Russian           

89 

88} 

89 

Spanish           

~« 

49 

48} 

49 

Turkish  6  per  cents. 

88 

89 

87} 

89 

Ditto  4  per  cents. 

100 

100} 

100 

lOO 

Railway  Shabxb. 

Brighton         

106 

106 

104} 

105| 

Caledonian      

132 

133} 

130 

1311 

Great  Eastern            

48} 

48} 

m 

*rf 

Great  Northern         

132 

135} 

132 

134} 

Great  Western           

78} 

791 

77} 

79} 

Lancashire  and  Yorkshire    .  •  • 

116} 

117} 

114} 

117 

London  and  North  Western... 

119 

1211 

117} 

121 

Midland          

137} 

140} 

136 

140} 

North  Staffordshire 

79 

80} 

7? 

80} 

South  Eastern           

86J 

86} 

84} 

86} 

South  Western          

»7} 

98} 

97 

97 

York,  Newcastle,  and  Berwick 

114 

115} 

103 

114 

York  and  North  Midland    ... 

1031 

104} 

103 

104| 

East  Indian 

104 

104{ 

103} 

104} 

Northern  of  France 

39} 

39 

39} 

CREDIT,  FtNANCE  AND  DISCOUNT  COMPANIES. 


Xnstralian  Mortgage,  Land 

and  Finance  (Lim.) 
CooftoiidatedDiaoount  fLlm.) 
Contract  Corporation  (lioi.) 
Credit  Foncier  of  Mauritias 

(Limited)      

Credit  FoDcier  and  Hobilier 

of  England 

Ditto  

Disi  ouut  Corporation  (Lim.) 

Kabi  India  Financial 

Egv]  tian  Commercial   and 

Tra  ing       

English  and  Foreign  Credit 
Financial  L\  rporation 
Financial  Du  count  (Lim.)... 
General  Crecit  and  Finance 

of  London  (Lim.) 

International  Financial 

BocietT  (Lim.)       

Xinperiai     and     Mercantile 

Crem  (Lim.)        


Bhwe. 

1 

Paid. 

1 

London 
Utett 
Prices. 

A 

i6 

60 

loo 

8 

10 
3 

8 

60 

10 

7 

20 

20 

100 

60 

6 
2 

17 
6 

8 

20 

60 
100 
60 

4 
6 

a 

10 

f 

23 

4 

«l 

20 

6 

7f 

60 

6 

«f 

Bban.    Paid.   Uutfk 


International  Contmot 
International  Land  Credit  ... 
Joint  Stock  Diseoont  (Lim.) 
Land  Oedit  of  Ireland 

Land  Seuuritiee         

London  Financial  AMOOia- 

tion(Lim.) 

Ditto,  New  

London  Mercantile  DiMxnmt 
Mauritina  Land.  Credit  and 

AgenOT  (Lim.)       

Katiunal  Disoonnt  Co.  (Lim.) 
National  Financial  (Lim.) ... 

Oriental  Financial    

Ottoman  Financial  Aiwocia- 

tion(Lim.) 

8oci6t«  Finandaire  d'Bgyptt 

<Lim:) ... 

South  Afiricaa  Mortgage  aud 
-JmJ... 


A 

60 

20 

26 

60 

60 

60 
60 
60 

20 
26 
60 
60 


A 
6 
6 

10 

6 
6 

16 
16 

74 

2 
6 
6 
10 


60       10 


60 


Tnyeatment  (Lim. . 


241 
24 
SI 

.?! 

4 
• 

7 

41 

6 
•I 


97 


JOINT^TOCK  BANKS. 


Am    lai 

lifted 


100 

fiO 


Hm,  Scir.iaofid  also  pm. 
fiiao,  imed  at  30  pm.  of 

whIdLaOupMd          ...  60 

lasott   _       ^ 60 

AiiisBM   Bukk   of  Xondon 

■M&Lrapodl,IiiQited   ...  100 

Ditto.  SeW          ...        ...  100 

Ditto,  iMafldataOpm....  100 

La^  Awlriaa  Bank          ...  10 

AaflD-Itih9m(L&BX.)...        ...  60 

BaakdAjusBnhaiak  ...        ...  40 

Ditto.  New         .......  40 

BsikarXsyTi- M 

^■akafLoBdon        100 

J>o^'Setr,mBaedtenpnu  100 

Back  oTOUgo  (Limlled)    ...  20 

^*nk  ^T^^jTM'ti*'^'*'^,  liTrikjMl  100 

Eri£2ab  k  Califitmiaa  (Lfan.)  60 

Baak  of  Wales          ...        ...  100 

fink  ef28«fr  Zealand         ...  10 

BasikofTlctaria,  Anatralia  80 

BnxiSamAVwngaeBi&iJJm.)  20 

Bitsaak  Nortk  Amoican     ...  60 
Chart«rod  Bank  of  BiitMh 

Cotei^tte      ...        ...        ...  20 

Ckmarod   Baak  of  India 

k  and  ChiiDa       ...  80 


SaSA.  lateit 
PiteM 
J  A 

60      IM 
26       6H 

26        ... 
6         4 


19 


16 
38 


of  ladia^I/iDdoa&CaBiiiA..  26 

Biao,3r«v          ......  26 

C^Baak        ...       ...        ...  100 

Co£3sialBaak...       100 

GcaxaaeRanl  Baak  of  Canada  20 
T'Tniarerlil  i^»»v  of  T»«^<> 

aadthala*         25 

I>itto,  taBMd  at  10  pm.,  of 

wkklii«p^        ...  26 

I>t>i>,1aamailrtpar   ...        ...  26 

CnminiidatBdBMikCLim.)  ...  10 

Oiiittiwiilal    ...       100 

_     niao,   K«v       100 

t(Um.)            ...  60 

»    ...        ...  20 

_  aand  Ana- 

tzaSanCbaiiflredBank   ...  20 

Kt«iidiaadSwediah(Lfm.)  60 

I  Bank  (Limited)  ...  60 

I,  CUna  and  Japan, 

.-       ...        ^-  100 

Dftta,  iiHwdatSpm.  100 

Do-K«w^,  iaraadnta  pm.,  ^^ 

_  rfwtefcliopaSd         ...  100 

Wb««i    ...         M,           -.,            ...  *•■ 


10 

•  6f 

10  H 

40  70 

40  66 

26  90 

60  168 

ao 

6 
20 

6 
20 

9 
26 
10 
60 

U       17* 

20       S6 

26  62 
m     ... 

60  120 
26  4Si 
20       ... 


16 
16 
4 
26 
10 
6 
S 

20 
16 
16 

26 

18 

10 
20 
20 
10 
16 


Mhan.  Paid.  istMi 


Land  "iiartg^ge  Bk.  of  India 
London  Bank  of  Mexioo  and 

South  America  (Limited) 
London  Bank  of  SooUand 

(Lim.)  

London  and  Braailian  Bank 
London,  Birmingham  &  Sth. 

Btaffbrdahire  (Limited)  ... 
London,  Buenos  Ayres  and 

Birer  Plate,  Limited 
Ditto,  New,  iasoed   at 

London  unartored  of  Anstraiia 
London  and  County  Bank  ... 
London,    Hamburg,    Oont. 

Bzdiange  (Lim.) 

London  Joint  Stook  Bank  ... 

Ditto,  New,  issued  at  80  pm. 
London  and  Northern  (Lun.) 
London  A  Booth  African  Bk. 
London  and  South  Western 

(Limited)      

LondonandVenesuela  (lim.) 
London  A  Westminster  Bank 
Herokant  Bank  (Limited)  ... 
Mercantile  Exohanffo  (Lim.) 

Ditto,  New,  issued  at  2  pm. 
ICetropoUtan  and  Prorinoial 

Bank,  Limited        ...       ... 

Ditto,  New 
Midland  Bank  (Limited)    ... 

National  Bank 

Ditto,  New 
National  of  liverpool  (Um.) 
National  Proviniaal  Bank  of 

Bngland       ...       ...       ... 

^Ktto,  New  

Ditto,  ditto  

New  South  Wales     

Ditto,     New,     issued     at 

£0.  ISs.  4d.  pm. 

New  Zealand  Bank  Onpora- 

tion  (Limited) 

North  western         

Oriental  Bank...       

ProvinciaJ   Banking  Corpo- 
ration  

Prorinoial  Bank  of  Ireland... 

Ditto.  New  

Soinde,  Pnnjaub  and  Delhi 

(Limited)      

Dmo,iaBuedat2pm.         •» 

South  Australian      

South  Kastem  (Lim.) 
Standard  of  Britiah  Africa 

(Umtted)      

Ditto  ditto 

Union  Bank  of  Anstraiia  ... 
Dnion  Bank  of  Ireland,  lim. 
Union  Bank  of  London 


1 

M 

A 

20 

4 

H 

60 

6 

n 

100 

IS 

10 

100 

40 

46» 

100 

22 

17 

100 

40 

68 

26 

7* 

10 

20 

20 

26 

60 

20 

81| 

100 

18 

11 

60 

10 

60« 

60 

20 

100 

26 

U 

20 

20 

22 

100 

20 

22 

60 

10 

8 

100 

20 

9ei 

100 

22i 

89 

60 

10 

10 

60 

10 

10 

100 

20 

161 

100 

10 

100 

20 

20 

60 

80 

... 

60 

16 

100 

10 

IH 

100 

42 

20 

12 

... 

20 

10 

... 

20 

20 

46 

20 

20 

... 

10 

1 

lixd 

20 

6 

10 

26 

26 

67 

60 

6 

S 

100 

26 

80 

10 

10 

20 

10 

11 

20 

2 

26 

26 

as 

26 

10 

111 

100 

26 

24xd 

100 

26 

24 

26 

26 

64 

100 

22 

20 

60 

16 

671 

VOL.  XXV. 


Digitized  by 


Google 


Bank  of  tf  nsIatiH  W^ttUn  ^ttnvns* 

Accoant.  piunAnt  to  the  Act  7th  and  8th  of  Yictoria.  o^.  32.  for  the  Weeks  ending  m  folio wv-  = 

ISSUE  DEPARTMENT. 


Notes  issoed 


186». 
Nov.  30. 


1864. 
Dec.  7. 


1864. 
Dec.  14. 


£  £  £  £ 

27,855,260      S7.741.515  |    28.004,075      28.1 74^980 


1864. 
Dec.  21. 


Government  debentores         11,015.100 

Other  securitiea 1     3.(SJl,900 

Gold  coin  and  bullion 13,205.260 

Silver  bullion      ...        

11,015,100 
3.63*.900 
13,091,615 

11,016,100 
3.634.900 
13,364,075 

11,015.100 
3.634,900 

'    27,855.260 

27,741,515  '    28,004,075 

28,174,030 

BANKING  DEPARTMENT. 


186*. 
Nov.  30. 

1864.       1        1864. 
Dec.  7.     ■    Dec.  14. 

1864. 
Dec.  21. 

Proprieton*  capital       

Rest 

PubUc    deposits    (including  Excheqacr. 

Savinm  Bank«.  CnmmiHsionen  of  NaUonAl 

Vthi,  and  Dividend  AecoanU) 

Other  Deposits     

Seven  day  and  other  bUls      

£ 

14.663,000 
3.2S6.211 
6,301,202 

13.272.161 
607.965 

£ 
14.563.000 
3,313.944 
6,468,644 

12,666.764 
476,906 

£ 

14.653,000 
3,325.294 
7,161,719 

12,267,474 
401.117 

£ 
14,663.000 
3.342.367 
7,69^610 

12.927,807 
451,677 

37.920.529  '    37.478,158 

37.798.604 

88,969,357 

Government    Secnrities    (including 

Dead  Weiffht  Annuities)      

Other  SecuriUes 

Notes          

Gold  and  Silver  coin     

10.474,512  I    10.474.542 

18,629.163  '    18.166.132 

8,032,100         8.099.306 

784.664           740,179 

10,474,543 

17,730,086 

8.826,360 

766,636 

10.474,642 

18.754.485 

8.967.600 

782,830 

37,920,529 

37,478,156 

87,798,6I>4 

38,069.367 

THE  EXCHANGES. 


Dec.  2. 

Deo.  9. 

Deo.  16. 

Deo.  23. 

Amsterdam,  short         

11    16 

11    16 

11    16i 

11    16 

Ditto     3  months       

11    19 

11    19 

11    19 

11    18| 

Rotterdam,  ditto 

12    19 

11    19: 

11    19 

11    18} 

Antwerp,  ditto 

26    62 

26    62 

25    574 
25    67l 

25    67% 

Brussels,  ditto     

25    63 

26    62 
13      8 

25    67% 

Hamburg,  ditto 

IS      8| 
25    22i 

13      8 

18      8 

Paris,  short 

26    25 

25    20 

26    2H 

Paris,  3  months 

26    60 

25    60 

26    671 

25    56 

MarseUles,  ditto 

25    62i 

25    60 

26    67i 

26    57% 

Frankfort,  ditto 

Vienna,  ditto       

12    10 

a*i. 

12    12i 

ISO 
12      0 

Trieste,  ditto 

12    10 

12    15 

12    121 

12      0 

Petersjurgh,  ditto 

Madrid,  ditto       

29 
46 

lit 

30 
46t 

29 
46 

Cadis,  ditto 

47 

an 

47 

47 

Leffhom,  ditto     ... 

26    75 

26    77 

25    77i 

25    75 

Milan 

25    75 

25    77 

26  m 

25    76 

Genoa,  ditto 

25    76 

25    77 

26    75 

25    76 

Naples,  ditto 

Palermo,  ditto     

25    75 

25    77 

25    76 

25    76 

26    771 
26    77i 

25    77 

25    75 

26    76 

Messina,  ditto      

25    77 

25    75 

26    76 

Lisbon 

611 
611 

ta 

611 

611 
6U 

Oporto 

PRICES  OP  BinJUION. 

I 


Foreign  Gold  in  Ban  (Standard) 

Mexican  Dollars  

Silver  in  Bars  (Standard) 


PerOa. 

PerOa. 

£  B.  d. 

£  s.  d. 

3  17    9 

8  17    9 

0    0    0 

0    0    0 

0    0    0 

0    6    1| 

PerOa. 
£  B.  d. 
8  17  0 
0  0  0 
0    0    0 


PerOa. 
£  8.  d. 
8  17    0 
0    0   0 
0    0    0 


Digitized  by  ^OOQ IC 


Banktrsf'  nmttklT)  Ctrrulation  iRtturns. 

^vneat  ietheA€i7  ^S  rietoria.  e,  32;  extracted  from  the  Lowdow  Gaxbtte. 
PRIVATE    BANKS. 


HAiOl  OF  BANK. 


Author- 
ized 
!    Issae. 


1  AjLM  Bank    ! 

2  AwkstuTj  Old  Bank....« ! 

S  Btldock  and  Biggleswade  Bank  ...! 

4.  fiansaple  Bank    , 

5  Bedfiard  Bank I 

i  Bfeencr  and  Oxfordshire  Bank   ... 

7  BirminghamBaok-— Attwoods&Co. 

8  Bostoa  Bank — Claypoiis  and  Co.... I 

9  Boeion  Bank — Gee  and  Co | 

ic  Bridgevater  Bank 

11  BiisolBank   

12  B^osdey-  and  Bridgenortb  Bank  ...1 

tj  Buckingham  Bank I 

H  Btoy  and  Suffolk  Bank , 

15  Baabniy  Bank    

U  Baabory  Old  Bank    

■  7  Bedfordshire  Leighton  Bnzzard  Bk. 
19  Birmingham  Bk. — Lloyds  &Ca  ...{ 
19  BneoQ  Old  Bank  

10  Brighum  Union  Bank  < 

IX  Boriingtoo  and  Driffield  Bank 

u  Bmy  St.  Edmund's  Bank ' 

13  Cainbridge  Bk.— Mortlock  &  Co. 
U  Csffibridge  and  Cambridgeshire  Bk. 

25  Castcrbarj  Bank  

i6  Carmaithen  Bank 

27  Cheftaej  Bank    ' 

3«  Colchester  Bank 

*^  Cokhcster  and  Essex  Bank 

Jo  Coniish  Bank^Tweedj  &  Co.   ... 

31  Coventrj  Bank  

IX  CttrBaak,  Exeter ^.... 

35  Craven  Bask— Alcocks  &  Co.   ... 

54  Qbcpsiow  Old  Bank  I 

55  Berbj  Bank— Messrs.  Evans  &  Co. 

3$  Berbjr  Bank--Smith  and  Co 

37  I>erhr  Old  Bank    

33  Devises  and  WilUhire  Bank    j 

39  Diss  Bank  ;| 

40  Doneaster  Bank  and  Betford  Bank, 

4.1  Dvlini^ton  Bank   

4^  Dcvooport  Bank    •••*••••••••••...••., 

43  Dorchester  Old  Bank    

44  East  Cornwall  Bk.— Robins  &  Co. 

45  £sst  Riding  Bank— Bower  &  Co. 
4^  Essex  Bk.  &  Bishop's  Stortford  Bk. 

47  Exeter  Bank  

4^  Fsrnham  Bank  - 

49  Faveraham  Bank  

50  Godalming  Bank - 

51  Giuldford  Bank 

52  Grsntham  Bank— -Hardr  and  Co.. 

53  HiU  &  Kin0rtoD-npon-Hnll  Bank 
H  Hnntingdon  Town  &  Conn tj Bank 

55  Harwich  Bank   

5^  Henfordshire,  Hitchin  Bank    

57  Ipswich  Bank 


£ 

11,849 
4M61 
37,223 
17,182 
34,218 
27,090 

^3,695 
75,069 

10,028 
48,277 
26,717 
29,657 
82,362 

43457 
55,1 53 
3M29 
38,816 

68,271 

33,794 

12,745 

3,201 

25,744 
49,9 » 6 
33,671 
23,597 
3,43<^ 
25,082 

48,704 
49,869 
12,045 
21,527 
77,154 
9,387 
13,332 
41,304 
27,237 
20,674 
10,657 
77,40c 
86,218 
10,664 
48,807 
112,280 
53,392 
69,637 
37.894 
14,202 
6,681 
6,322 

14,5^ 
30.372 
19,979 
56,591 
5,778 
38,764 
21,901 


AVERAGE  AMOUNT. 


Nov.  19.       Nov.  26.      Dec.  3.       Dec.  10. 


£ 

"»579 
»3»45o 
19,667 
4.095 
28,742 

14.075 
22,462 

'  71,552 

1  14>825 
I  6,580 
I  20, -780 
{  15.829 

20,029 
I  48.324 

25.448 
I  22,880 
I  35,853 
I  26,155 

48.964 
20,993 
12,265 

2,716 
13,558 
44,630 
30, 364 
17,794 

2,427 
16,816 
26,129 
28,895 

4,834 
14,405 
74,388 

6,858 

8,816 

I  37,639 

^5,570 

6,194 

9,837 
62,638 

83.341 

6,804 

37,462 

87,277 

53»2io 

34,091 

18,928 

7,689 

5,*65 

5,373 
10,464 

25.849 
17,388 
36,476 
4,548 
31,360 
17,021 


£ 

11,795 

22,835 
18,857 

3.936 
27,379 
»3>356 
21,643 
72,9C4 
14.507 

6,458 
20,958 
16,121 
19.^69 
46,986 
25.509 
23.215 
35.3^6 

24,975 
47.778 
20,637  I 

12,571  I 
2,689  I 

13,327 
44,171 
29,900 
16,303 

2,103 
15,548 
25,130 
29,053 

5.027 
14,229 
73.957 

7,034 

8,763 
36.43* 
25,150 

6,312 

9,797 
64,737 
86,439 

6,890 

36.389 
86,113 

54.967 
33.059 
18,717 

7,426 

5,120 

5,150 
10,632 
25,221 
18,036 
36,367 

4,408 
3»,597 
17,497 


£ 

10,792 

22,460 

18,171 

3,724 

27,OBO 
13,608 
21,842 

:o, 236 
H,707 

6,238 

20, 727 
14,981 
2o,c6i 

46,632 
25,665 
22,246 
35,604 

*5,5»6 
47,856 
»i,405 
12,063 

2,848 
13,236 
44,055 
29,791 
15,641 

2,237 
14,955 
25.647 
29.442 

5,524 
13,716 
73,163 

6,932 

8,631 
36,300 
28,065 

6,133 
10,168 

62,277 
82,245 
6,577 
34,542 
83,889 

51,969 
34,309 
18,232 
6,864 
4.778 
4,936 
10,285 

25,148 
16,670 

34,719 
4,9*0 
32»y56 
17,108 


£ 
12,086 
22,072 
18, ^01 

3,678 
26,840 
13,780 
20,542 
66,957 
15,165 

5,949 
20,948 

15, 209 
19,687 
47,116 

25, 949 
22,324 

34,137 
24,501 
49,035 
20,956 

11,433 
2,812 
13,048 
44,705 
28,593 
15,506 
2,321 
14,700 
25,625 
29,660 

5,405 

13,83* 

70,585 

6,605 

8,261 

34.091 

26,038 

5,980 

10,112 

58,776 

78,359 

6,354 

33, 779 

87,249 

47,894 

34.221 

18,012 

6,569 

4.526 

4.785 

10,266 

23,917 
16,125 
33,2»o 

4,925 
33.227 
17,063 


Digitized  by  LnOOQlC 


100 


WEEKLY   RETTT&NS   OV    BAKKB  OV   IB8VB. 


KAMd  OF  BANK. 


Author* 
ized 
iMue. 


58  Ipswich  &  Needham  Market  Bank 

59  Kentish  Bank— Mercer  &  Co.  .., 

60  Kington  and  Radnorshire  Rank.. 

61  Knaresborough  Old  Bank  

62  Kendal  Bank    

63  Longton  StaiTordsbire  Bank 

04  Leeds  Bank 

65  Leeds  Union  Bank 

66  Leicester  Bank 

67  Lewes  Old  Bank 

68  Lincoln  Bank  

69  Llandovery  B^nk&LlandiloBank 

70  Loughborou^i^h  Bank   

71  Lymingtou  Bank 

92  Lynn  Regis  and  LincolnshireBank 

73  Lynn  Regis  and  Norfolk  Bank . 

74  Macclesfield  Bank 

75  Manningtree  Bank 

76  Merionethshire  Bank   , 

77  Miners*  Bank 

78  Monmouthshire  Agricultural  and 

Commercial  Bank 

70  Monmouth  Old  Bank 

80  Newark  Bank  

81  Newark  and  Sleaford  Bank  .. 

82  Newbury  Bank 

83  Newmarket  Bank 

84  Norwich  Crown  Bank  and  Norfolk 

and  Suffolk  Bank 

S^  Norwich  and  Norfolk  Bank   .. 

86  Nottingham  &  Nottingham sh.Bk. 

87  Naval  Bank,  Plymouth  

8  S  New  Sar um  Bk. — Pinckney s,  Bros. 

89  Nottingham  Bank   

90  Oswestry  Bank    

91  Oxford  Old  Bank 

92  Old  Bank,  Tonbridge 

93  Oxfordshire  Witney  Bank 

94  Pease's  Old  Bank,  Hull 

95  Penzance  Bank 

96  Pembrokeshire  Bank 

97  Reading  Hank — Simonds  &Co.... 

98  Beading  Rk.~stepben*,BUmdj  ft  Co. 

99  Richmond  Bank,  Yorkshire    

100  Rochdale  Bank    

101  RoystonBank  

102  Rugby  Bank 

103  Rye  Bank • 

104  Saffron  Walden&NorthEsscxBk. 

105  Salop  Bank  , 

106  Scarborough  Old  Bank   , 

107  Shrewsbury  Old  Bank , 

108  SittinfEboume  and  Milton  Bank.. 

109  Southampton  Town  &  County  Bk, 
no  Southwell  Bank   

1 1 1  Southampton  and  Hampshire  Bk. 

112  Stafford  Old  Bank  

113  Stamford  and  Rutland  Bank .. 

1 1 4  Shrewsbury  an  d  Welsh  Pool  Bank 

U5  Taunton  Bank 

116  Tavistock  Bank  


£ 
80,699 

19.895 
26,050 
21.825 
44,663 
5.624 
53.357 
37,459 
3*.3a2 
44,836 
100,342 

3».945 

7,359 

5.038 

42,817 

>3,9»7 

15,760 

7,692 

10,906 

18,688 

29,335 
16,385 
28,788 
51,615 
36,787 
23.098 

49,67 
105.519 
10,866 
27.321 
'5.659 
31,047 
18,471 
34,391 
13,183 
11,852 
48,807 

11.405 
12,910 

37,519 
41.271 

6,889 

5.590 
16,393 
17,250 
29,864 
4.7.646 
22,338 
24,813 
43,191 

4,789 
18,589 
14,744 

6,770 
14,166 
31,858 
25.336 
29.799 
13.4*1 


ATEaAGB  AM0X7NT. 


Nov.  19,     Nov.  26.       Dec.  8.         Dec  H 


£ 

51,218 

19,066 

25.481 

21.550 

43.716 

5.041 

53,264 

35.887 

29.754 

»9.644 

87,453 

24.779 

7,088 

3.ao4 

31.587 

12.450 

12,440 

5.330 

7,691 

17,644 

»9.545 
3.887 
23.796 
46,579 
12,966 

17.4*3 

48,332 

76,326 

8,143 

21.311 

6,769 

25.918 

9.313 
32,210 
11,610 

9.327 
46,110 

9.584 
11,500 
25,610 
26,635 
7,153 
1,447 
10,278 

9.564 

13,062 

22,070 

10,740 

23.827 

35.544 

3.217 

9.000 

9,070 

1,767 

13.527 

19.878 

20,179 

25,176 


£ 

50,923 
20,138 

H.399 
21,591 
41.581 
4.733 
53.363 
35.900 
28.740 
28,920 

87,154 

22.653 

7,081 

3.a25 
31,720 
1 2 , 208 
12,420 

5.135 
7.685 

17,833 

29,165 
4.460 
23.427 
47,939 
12,745 
16,541 

48,170 
74,662 

8,069 
21,929 

6,778 
25.4*5 

9.337 
32,724 
11.327 

9.607 
47, 353 

9,318 
11,301 

a5,335 
26,241 

6,725 
1,419 

9,505 
10,095 
12,438 

21,303 

10,809 

24,410 

34.656 

3,060 

8.944 

9.223 

1,780 

13.154 
18,859 
20,450 
22,258 


£ 

50.891 

20,092 

22,812 

20,669 

40,807 

4.823 

52,826 

36,718 

27,660 

26,838 

87.235 

20,519 

7.300 

3.018 

29.973 
12,866 
12,311 

5.031 
7,054 

17.907 

*7,659 
4.337 
*3,337 
45.884 
12,87a 
16,225 

47,961 

73.738 

7,968 

22,234 
6,862 

24,815 
9,578 

10,986 

9iJ40 

45,309 

9.596 

10,824 

24,461 

*5.59o 

6,141 

1,507 

9,5*1 

9.709 

12,125 

21,308 

10,716 

23,810 

34.713 

2,991 

9,027 

9.219 

1.735 

12.558 

18,299 

ao,86o 

22,400 

48,990 


WEEKLY    RETURNS  OF  BANKS   Of    ISSXJX. 


101 


RAMS  OP  BANK. 


1x9 

120 
III 

122 
123 

»4 
12; 

»26 

127 

125 
12^ 
130 

Hi 
MJ 
«J4 
»j5 
156 

137 
133 


Tbonibwy  Bank 

Hwtott  and  Devonshire  Bank ... 
IVi^MOBe  and  Kettering  Bank. 
Tria^  Bank  and  Chesbam  Bank. 

Towcwter  Old  Bank  

Cakm  Bank,  Cornwall  

axbridge  Old  Bank    

WalUngford  Bank 

Warwick  and  Warwickshire  Bank 
Wellington  Bank,  Somerset  .. 

Wen  Riding  Bank 

Whitby  Old  Bank    

Wtocheiter,  Alresford  &  AltonBk. 

Wejraoath  Old  Bank 

Wickswortb  and  Derbyshire  Bk. 
WIsbeach  and  Lincolnshire  Bank 

WiTeliscombe  Bank 

Worcester  Old  Bank 

WdTerbam.  Bk.— R.  &  W.  Fryer 

Tannonth  and  Snffolk  Bank 

Tannontb,  Norfolk,  &  Suffolk  Bk. 
ToTkBank  


Anthor' 
ised 
Issue. 


£ 
10,026 
i3»470 
",559 
« 3,531 
10,801 
17,003 
15,136 
17,064 

30,504 
6,5»« 
46,158 
14,158 
15,891 
16,461 
37,602 

59,713 
7,602 

87,448 
11,867 
53,06c 
13,119 
46,387 

JOINT  STOCK 

1  Bsiik  of  Westmoreland. 

2  Bsnsley  Banking  Company 

3  Bndford  Banking  Company 

4  Boston  District  Sinking  Company 
f  BankofWhiteharen 

6  Bradford  Commercial  Banking  Co. 

7  Barton,Uttozeter,and Staffordshire 

Union  Bankinir  Co 

8  Ckesteriield  &  N.Derbysh  Bk.  Co. 

9  Cnfiberland  Union  Hanking  Co... 

10  Coventry  and  Warwickshire  Bk.  Co. 

1 1  CoTtBtiy  Union  Banking  Company 

12  CbBBty  of  Gloucester  Banking  Co. 
ij  CsrIiilc&CBmberlaDdBankingCo. 

14  Carlisle  City  and  District  Bank  ... 
ff  l>Bd2ey  ft  West  Bromwich  Bk,  Co. 

1 5  Derby  and  Derbyshire  Banking  Co. 
1 7  Dariiagton  Dist.  Joi n  t  Stock  Bk .  Co. 
19  GIooeatershiTe  Banking  Company 

19  flalifax  Joint  Stock  Bank 

20  Hnddersfield  Banking  Company... 

31  Hull  Banking  Compiiny 

2:  Halifax  Commercial  Banking  Ca.. 
:->  HsJifaz  &  Hnddersfield  Union  Bk. 

H  Helfton  Banking  Company 

zf  Kasreshorongh  and  Claro  Bk.  Co. 

2'  Lancaster  Banking  Company 

::  Leicestemhire  Banking  Company... 
2§  Lincoln  and  Lindaey  Banking  Co.. 
1}  Lnmington  Priors  adn  Warwick - 

thire  Banking  Co 

p  Ladlow  and  Tenbury  Bank 

3 1  Moore  &  Robinson's  Notts.  Bank... 
)2  Nottingham  and  Notts.  Banking  Co. 
n  National  ProrincialBk.  oi  England 
A  Horth  Wilts  Banking  Company  ... 


AVERAGE  AMOUNT. 


Not.  19.     Nor.  26, 


£ 

7,388 

9,940 

11,000 

11,871 

5,610 

«6,i43 

8,639 

5.730 

»8,45.'? 

1.349 

39.372 

14.348 

11,581 

»5.8^9 
34,594 
40,660 

4,006 
55. "66 
10,958 
37.34> 

8,3'« 
42,016 


£ 

6,868 

9.9*4 
11,388 
12,709 

5,594 
15,843 

8,947 

5.70a 

17.903 
a,i9-» 

39,404 
i4,aii 
11,618 
15.615 
34.563 
39,384 
4,065 
52.833 
10.547 

37.115 
8,063 

41,580 


Dec.  8.   I   Deo.  10. 


£ 
7,015 
9.817 
'1,419 
12,834 

5,4H 
16,307 

8.548 

5,^85 
17.94* 

a.»55 
39.829 
13.57a 
10.877 
15,753 
34,862 

38,5*4 
3.921 

51,202 
9,870 

37,737 
8,046 

41.629 


BANKS. 


12,225 

11,611 

10,770 

10,113 

9,563 

8,806 

8,670 

8,868 

49,292 

49.040 

49,463 

48.575 

9.418 

8,948 

9.»5* 

9.71a 

32,681 

28,380 

28,465 

27,665 

20,084 

19,040 

19.304 

18,865 

60,701 

43,652 

42,486 

45,161 

10,42) 

8,706 

8,616 

9,030 

35,395 

34,879 

32,90a 

31.729 

2«.734 

15.450 

15.3*5 

14,812 

16,251 

12,104 

11.93a 

ia,i95 

'44.35* 

96.495 

95.795 

97,983 

25,61c 

25,*55 

24.095 

22,310 

19.972 

20,040 

19.417 

19,646 

37,696 

28,544 

29,203 

29,080 

20,093 

19.037 

19,1*3 

19,360 

26,134 

25,266 

25,090 

24,236 

•55,92c 

139,556 

135.1*9 

135,680 

1^534 

17.429 

17,071 

i7,*5S 

37.354 

30,728 

29.855 

29,116 

29,533 

28,9iO 

30,363 

29,012 

13,733 

9.?9» 

9,829 

9.748 

44-137 

31,636 

31,220 

30,271 

1,503 

1,504 

1,506 

1,499 

28,059 

27,845 

a8,7i7 

27,858 

64,31' 

57,  256 

55.322 

53,323 

86,060 

56.796 

55,670 

55.*44 

51,620 

43.521 

46,493 

48,075 

13,875 

9.509 

9,660 

t'^P 

10,215 

9,284 

8,990 

8,580 

35,813 

25,467 

25.693 

27,323 

29,477 

27,886 

28,666 

29, 765 

442,371 

408,480 

413.709 

4«i,95i 

63,939 

41.399 

.39.523 

39.755 
1 

£ 

7,030 
9,480 

11.327 
12,285 

5.417 

16.579 

8,060 

5.344 
17,224 

2,227 

37,85* 
14.001 
10,815 
«5.7a9 
34.539 
39.414 
3.885 
51.657 
10,010 

37.99a 

8,390 

39.4a9 


9.975 

8,445 

47,455 

9.435 

*7,3i4 

18,839 

44,066 
8,710 
30,471 
15.338 
13,020 
97,852 

21,223 
19,081 

29.439 
18,735 
23,004 

133,911 
16,923 
28,329 
27,093 

9.1^6 
*9.30* 

1,450 
15.829 
51.003 
56,577 
48,297 

9,540 

8,608 

27,752 

26,765 

409, 666 

40,655 


Digitized  by  LjOOQ IC 


102 


WBBKLT   RBTURN8  OF  BANKS  OV    I88VB. 


NAME  OF  BANK. 


35  Northamptonshire  Union  Bank  ... 

36  Northamptonshire  Banking  Co.  ... 

37  North  and  South  Wales  Bank , 

38  Fare's  Leicestershire  Banking  Co... 

39  Saddleworth  Banking  Company  .., 

40  Sheffield  Banking  Company , 

41  Stomford,  Spalding  &BostonBk.Co, 

42  Stackey*8  Banking  Company 

43  Shropshire  Banking  Company 

44  Stonrbridge  and  Kidderminster  Bk. 

45  Sheffield  and  Hallamshire  Bank  ... 

46  Sheffield  &RotherhamJt.StockBk. 

47  Swaledale  and  Wensleydale  Bank.. 

48  Wolverhampton  &  Staffordsh.  Bk.. 

49  Wakefield  and  Bamsley  Union  Bk. 

50  Whitehaven  Joint  Stock  Bank    ... 

51  Warwick  and  Leamington  Bk.  Co. 

52  West  of  £ng.&  S.Wales  DistrictBk . 

53  Wilts  &  Dorset  Banking  Company 

54  West  Riding  Union  Banking  Co... 

55  Whitchurch  and  EUesmere  Bk.  Co. 
^6  Worcester  City  and  County  Bk.Co. 

57  York  Union  Banking  Company  ... 

58  York  City  and  County  Banking  Co. 

59  Yorkshire  Banking  Company 


Author- 
ized 
iMQe. 


£ 

84.356 
26,401 

63.95'' 
59.300, 
8,122 
35,845 
55.721 1 

356,976 
47.95* 
56,83c' 
*3.524: 
5a,496 
54.372 

I  35.378, 
14,6041 
3>.9*6| 
37,1241 
83.535 
76,162! 
34.029' 

7.475' 
6,848, 

71.24c 

94.<^95, 

122,532 1 


AVERAGE  AMOITNT. 


Nov.  19.      Nov.  26.       Dec.  3. 


£ 

63,884 
20,161 
60,236 
5".»57 
340 
34,771 
53,473 
293.987 
37,543 
51,235 
20,930 

50,740 
52.935 
30,405 
14,438 
24,3198 
a4,955 
76,437 
69,154 
29,136 
4,722 
6,240 

70,394 
92,256 
123,485 


£ 
64,006 
20,295 
62,365 
51,697 
340 
34,273 
52,948 
286,588 
38,110 
50.536 
20,73a 
50, 208 

30,060 

H.257 

23,220 

25,088 

76,846 

68,356 

28,188 

4,950 

5,981 

71,070 

95.800 

123,165 


£ 

66,473 

20.995 
61.357 
5»,890 

339 
34,222 

51.464 
286,515 
38,362 
51 » 207 
21,167 
50,635 
52,017 
28,518 

»3,853 
22,780 

14,850 
76,181 

65,531 

26,720 

4*678 

5,585 
70,830 

93,291 
117,315 


Dec    11 


£ 

20,^0: 

53.*o<: 

33ii 

33.3  «* 

50.3  ■  II 

288,717 

40,688 

49,684 

21,X.4X3 
50.617 

5o,So8 

*9.  109 

•4,035 

21,949 

26,274. 

75,653 

64.  7-49 

^^.-455 

4,3i« 

5.643 

70,591 

87,988 

113,-276 


{rtfifb  anil  ^cotcb  Cirrulatton  ileturnd^ 

Average  Circulation  ^  and  Coin  held  by  the  Irish  and  Scotch  Bahks  during  the  font 
weeka  ending  Saturday,  the  lOth  day  ofDeoember,  l864. 

IRISH   BANKS. 


NAME  OP  BANK. 

CirmUtioB. 

tnding  aa  abov*. 

erG«ia*eu- 

T*r  Cola  hel4 

■pwards. 

UoiariCi. 

TouL 

dorinc  Four 

Bank  oflreland 

£ 
3,738,428 
927,667 
281,611 
243,440 
311,079 
852.269 

£ 
1,441,650 
393, i»7 
114,806 
95,025 
162,510 
6c 1.840 

£ 
i»  049, 350 
494,848 
310,401 
269,608 
335.099 
604,441 

£ 
2,491.000 

887,975 
425,*o7 
364,633 
497.609 
1,206,281 

£ 
5*6, 49> 
380,442 
*«3,972 
174,2981 
229, 291 
656, 284 

JProvincial  Bank  of  Ireland 
Belfast  Bank   

Northern  Bank  ' 

Ulster  Bank 

The  National  Bank 

Totals  (Irish  Banks)  ... 

6,354,494 

2,808,958 

3,063,747 

5,872.705 

*,  180,778    : 

SCOTCH    BA 


Bank  of  Scotland  

Royal  Bank  of  Scotland   ... 

British  Linen  Company. 

Commercial  Bk.  of  Scotland 
National  Bank  of  Scotland.. 
Union  Bank  of  Scotlan  d  ... 
Aberdeen  Town  and  Co.  Bk. 
North  of  Scotland  Bk.  Co... 
Clydesdale  Banking  Co.  ... 

City  of  Glasgow  Bank  

Caledonian  Banking  Co.  ... 

Central  bank  of  Scotland... 

Totals  (Scotch  Banks)  ... 


300.485 

216,451 

438.024 

374,88c 

297,024 

454,346; 

70,133: 

«54.3>9 

274,321 

72,921 

53,434 

_42.?3^3 

a, 749, 27 1 


^73,15* 
189,119 
180,028 
204,281 
169,671 
189,020 
69,870 
108,306 
138,176 

129,995 
28,156 

28,145 


1,607,919 


NKS. 

340,586 

366,573 
348,921 

398,771 
327,926 
398,708 

94.293 
129,871 
252,909 

'  *55.047 
I  61,736 
I       43,53^ 

13,018,874 

Digitized  by 


5"3,738 
555,692 
528,950 
603,053 
497,597 
587,728 
164,163 
238,178 
39*, 085 
385,042 
89,892 
71,678 


193.85* 
4»3,372 
a43>37' 
297, 167 
a6o,447 
223.3^9 
99.909 

93,9'5 

161,55'^ 

346.545 

44.3*7 

35,4'5 


h'dh^k 


2,5^3.*<>5 


CIRCULATION  RETURNS. 


103 


SUMMARY   OF  WEEKLY  RETURNS  OP  BANKS   OP  ISSUE. 

Deo.  3.  Deo.  10. 

^3,039,983   £i,99»»4i6 
4.750,268      2,717,54* 


iiS  FrhsK  Banks 

59  Joiiifc-Stock  Banks 


Fixed  lasaea.)    Nor.  19.      |     Not.  26. 
£4,212,786  £3,116,144  £3,085,612  j 
3,i*M5?  1   ».779.673  i    2,769,088 


Totals. 


7,439.»43  I 

J-1-sje  We^ar  Circolation  of  these  Banks  for 
t-    r.  -cih  ^Qdaxg  December  lOth. :— 

V-TiirBacsa       _         _         iO.OSS.Ml 

^.ii-t^so^BaakB  ...        ^        ..    2,754,143 


A---ir»  Weeily  Cinnlationof  Prirate 
^•.  <Vui3£-S&uek  B&oka  ending  sjb 

4- re       £6,812,6M 

'  •:.  u  'V'Cipaciaon  of  the  above  with  the  Retunui 

'  -  1-  Eotiih  gadrng  Nov.  llOx  lact,  it  ahowrs : — 

A  V  r^oM  ia  the    noteB  of   Prirate 
:iii.i?,  rf £152,807 

A  .V  ^ftiM  m  the  notes  of  Joint-Stock 
Biik4,oC-. 101,280 


5.895.8*7  I    5*854.700  )    5.790,251       5.709,968 

And  as   compared  with  the  month  ending 
December  12  th,  1863,  it  shows :~ 
A  decrease   in  ihe  notes  of    Private 

Banks,  of £161,484 

jLdeereaae  in  the  notes  of  Joint-Stook 

Banks,  of 146,176 


on  the  month . 


£254,067 


Total  iecrease^  aa  compared  with  the 

same  period  of  last  year       £306,659 

The  following  is  the  comparative  state  of  the 

circalation  as  regards  the  fixed  issues  :— 

The  Private   Banks   are  below  their 
fixed  issues         £1,164,846 

The  Joint-Stock  Banks  are  below  their 
fixed  issues        .^       ...       .^       ...      472,214 


Total  BXLOW  their  fixed  issoes 


.£1,526,469 


SUMMARY  OF  IRISH  &  SCOTCH  RETURNS  TO  DECEMBER  10,  1864. 


Th?  Returns  of  Circalation  of  the  Irish  and 
^  v^h  Banks  for  the  fbor  weeks  ending  Dec. 
J « X  wten  added  together,  give  the  following  as 

•  %TiSB|re  weekly  circalation  of  these  Banks 
c  T-Jugr  the  \mA  month,  viz. : 
At  r*j?  Circtdation  of  the  Irish  Banks  £3.872,706 
A.  cr^^  Cuvolatian  of  the  Scotch  Bsnks  4,626,796 

T-'AlATvaceClrcnIation  of  these  hanka 
5-r  ita  past  month     .£10,499,601 

m  nnnparing  these  amounts  with  the  Betoma 
f  ' ''--.  aaosih  cndmg  Wth  Nov.  last,  they  show— 
''-  .^aae  biLtbeCircalationof  Irish  Banks  £83,606 
L:  -rfcMeiat3>eCircalatk>nof  Scotch  Ranks  182,462 


ToUiincTCMe  on  the  month... £98,867 

Asd  aa  ooiBpsred  with  the  month  ending 
TK-crOw  laih,  l!«3,  they  show— 
Ii  r  1 1  shi  mtheCJTcnlationof  IrishBanka  £67,648 
emtheCcrcalationof  Scotch  Banks  12,868 


Tcnil  dsoeaNOBthe  year . 


£80,416 


The  fixed  issues  of  the  Irish  and  Scotch  Banks 
at  the  present  time  are  given  in  the  Bankinq 
Alinanae,  as  follows : — 

6  Banks  in  Ireland,  allowed  to  issue  ..  £6,364,494 
12  Banksin  Scotland,  allowed toissue     2,740,271 

18  Banks  in aU,  aUowed  to  issue   £9,103,766 

The  following  appears,  therefore,  to  be  the 
comparative  state  of  the  circulation : — 
Irish  Banks  are  below  their  fixed  issue     £481 .789 
ScotchBanks  are  above  their  fixed  issue  1,977,626 


Total  above  the  fixed  issue  £1.496,736 

The  amounts  of  Gold  and  Silver  held  at  the 
head  offices  of  the  several  banks,  during  the  past 
month,  have  been  as  follows : — 
Oold  and  Silver  held  by  the  Irish  Banks  £2,180,778 
Goldand  Silver heldl^^e  ScotchBanks  2,513,206 

Total  of  Gold  and  Silver  Coixi £4,693,983 

Being  an  increase  of  £43.961  on  the  part  of  the 
Irish  Banks,  and  an  increase  of  £71,401  on  the 
part  of  the  Scotch  Banks,  on  the  several  amounts 
neld  by  them  during  the  preceding  month. 


CIBCULATION  OF  THE  UNITED  KINGDOM  TO  DECEMBER  10,  1864. 

The  folknriBg  is  the  atate  of  the  Note  Gircnlation  of  the  United  Kingdom  for  the  month  ending 
ti<10thUBeem5r,lSS4:-  ^ 

CuvaisiiGa  of  NoCee  for  the  Month  ending  10th  December,  asjsompared  with  the  previoos^month :— 

Bank  oTBi^tend  (month  ending  Dec.  7) 

?RT«eB>nks  .- - 

Joot-eiock  Basks 


Nov.  12. 
£20,906,439 
8,211,348 
2,865,423 

Dec.  10. 
£19.806,137 
3,058.641 
2,754,143 

Increase. 

Decrease. 

1,100.302 
162.807 
101,280 

26,973,210 
4,444,334 
6,966,310 

26,618,821 
4.626,796 
6,872,706 

1^,462 

1,864,389 
83,606 

£37^73,864 

£36,118,322 

£182,462 

£1.437,994 

Zvattd  Kingdom..^ 

Ike  eomparsBon  of  the  month  ending  Dec  12th,  1863.  with  the  month  ending  Dec.  10th,  1864, 
^'^  %  Jeeremte  in  the  Bank  of  England  circalation  of  £898,449,  a  deereaee  in  Private  Banks  of 
A'l  «4,8Bda4Eeerwwin  Joint-Stock  Banks  of  £145,176;  beinga  total  <2«er0aM  in  England  of  £1,205, 108 ; 
*:-:.»  in  SeoUand  there  ia  a  deereaae  of  £12,863;  and  inlreland  a  deereaee  of  £67,648.  Thoa 
•^  *i^ii  that  the  month  ending  10th  Dec.,  as  compared  with  the  same  period  last  year,  presents  a 
i'trnm  of  £1,206.106  in  JMamd,  and  a  dserea$$  c^  £1,286,634  in  the  UnUed  Kingdom, 

The  TStom  of  BoIHon  in  the  Bank  of  England,  for  the  month  ending  Dec.  7th,  gives  an 
aencfite  aoKnmt  in  both  departments  of  £13,963,617.  On  a  comparison  of  this  with  the  Return  fbr 
tU  mcfsit  ending  Nov.  itth,  there  appears  to  be  aa  inereate  of  £673,716 ;  and  aa  inereau  of  £742,361 
ueumpared  with  the  same  period  last  year. 

Theaoek  of  spede  held  by  the  Banks  in  Scotland  and  Ireland  during  the  month  ending  10th 
DK'.  «m  £4,6U,963 ;  being  an  imereoM  of  £1 16.462  as  compared  with  the  Hetoxn  of  the  previooa  mooth, 
u^saiserMiM  or£H<76  aa  oompared  with  the  oonresponding  period  last  year. 


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Digit! 


.^r&bT'feoogle 


THE  BAMERS'  MAGAZINE, 

AMD 


FEBBITABT,    1866. 


IB*  PHUiOSOPHt  OF  BUSmilSS  S^AlLU&KS. 

Ths  cQ&ditiQiis  of  business  failures  are,  on  the  whole,  more  alike 

and  less  ilissimilar  than  is  generally  beliered.     They  may  be 

said  to  differ  as  the  atmospheric  changes  which  precede  rain  or 

storms ;  those  changes  having  but  one  issue  or  result*    They 

may  be  said  ta  diffeif  as  the  Scotch  and  English  Bankrupt  Laws ; 

those  laws  equally  wresting  property  from  the  hands  of  debtors. 

Why  the  contrary  has  been  accepted  as  sound  doctrine  is  only 

to  be  explained  on  the  supposition  that  business  failures  havB 

mctte  frequently  been  inyestigated,   scrutinised^  and  analysed 

by  the  accountant^  assignee,  trustee,  and  commissioner,  than  by 

the  leas  prosaic,  more  disinterested  and  philosophical  observer, 

whose  occupation  and  mission  are  to  search  out  uniformities,  in 

HiB  hope  of  at  length  arriving  at  a  knowledge  of  the  hidden 

lawB  d  eonnneTce.    The  one  mquiry  may  be  said  to  resemble 

the  occapation  of  the  cattle-market  salesman,  and  the  other  that 

of  tile  comparative  anatomist  of  King's  College  or  the  London 

Hospital ;  for  at  the  cattle  market  money  is  desired  above  all 

things,  and  at  the  college  money  neither  exercises  a  soothing 

not  a  disturbing  influence. 

Wi&ont  attempting  to  deal  exhaustively  with  a  question  of 
eo  much  breadth  and  intricacy  as  the  conditions  of  business  fail- 
Qies,  it  will  be  attaining  something  if  the  mere  foreground  is 
fiundy  traced.  The  faint  tracings  may  in  time  lead  us  to  a 
better  appreciation  of  the  relations  between  debtors  and  creditors, 
ttkd  to  the  framing  of  a  more  satisfactory  bankrupt  code  than 
yet  holds  away  on  either  side  of  the  Tweed. 

With  rare  exceptions  men  of  business  begin  the  world  with 
good  intentioiiB.     They  are  to  make  their  way  honestly  if  they 
VOL*  XXV.  10 


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106  The  Philosophy  of  Suainesa  FaiPurea^ 

can.  It  is  only  of  the  exceptions  of  whom  it  may  be  added,  that 
failing  to  make  their  way  honestly,  they  are  still  to  make  their 
way.  .The  evidences  of  the  good  intentions  of  all  but  the 
exceptioAal  few  grdet  us  in  every  walk  of  commerce.  W^o 
cannot  bear  witness  to  the  attractions  of  a  newly-opened  place 
of  business  f  Painter  and  paperhanger,  gas  fitter  and  glazier, 
joiner  and  carpenter,  have  bc^n  hired  and  brought  together  that 
the  new  comer  may  stand  well  among  his  neighbours.  The  nevr 
comer,  by  a  good  appearance,  seeks  to  conciliate  all  classes,  and 
command  their  patronage.  And  if  the  newly-o{>ened  place  of 
business  is  entered  and  a  purchase  made,  there  is  unusual 
promptness,  with  civility  enough  to  make  one  think  that  instead 
of  showing  favour,  it  is  a  pleasure  and  a  duty  to  spend  his 
money  in  the  new  place.  Of  course  the  new  shopkeeper  will 
not  always  display  skill  in  the  high  art  of  pleasing.  If  vulgar, 
he  wiQ  offend  refinement ;  and  if  refined,  he  i^  sure  to  offend  thQ 
poorer  classes.  But  be  the  qualification  what  it  will,  the 
attention  and  industry  of  the  new  comer  are  beyond  all  praise. 
He  is  bent  on  the  realisation  of  what  append  to  be  a  long* 
cherished  hope  ;  and  to  adopt  the  cant  of  the  circular  and  the 
handbill,^  no  effort  shall  be  wantiag  on  his  part  to  gain  and 
maintain  the  good  opinion  of  those  who  buy  from  him.  Bo  it  is 
in  Eastcheap,  in  Mincing  Lane,  and  Mark  Lane,  and  elsewhere. 
The  new  broom  sweeps  clean.  New  merchants  elbow  old  ones 
until  in  turn  they  are  old,  or  until  their  tether^s  length  is 
reached.  In  a  word,  from  the  lowest  to  the  highest  business 
level  the  beginnings  of  all  are,  as  a  rule,  calculated  to  convey  to 
thoughtful  men  a  new  and  better  opinion  of  human  nature. 

Passing  by  the  exceptional  class — ^the  case  of  whom  need  not 
now  be  considered — ^the  fact  of  business  men  beginning  the 
world  with  good  intentions  is  suggestive  of  various  points  which 
separately  are  well  known.     These  are,  the  cold  approval  of  the 

Eublic ;  the  error,  not  of  putting  faith  in  princes,  but  of  trusting 
umbler  people ;  the  misfortune  of  buying  freely ;  the  evil  of 
mismanagement  in  the  comm.on  sense ;  and  several  others  which 
will  readily  occur  to  all.  The'  characteristic  of  such  a  set  of 
considerations  is,  that  they  are  errors  of  judgment,  not  moral 
offences  or  crimes.  In  fact,  some  of  the  b^st  men  Uving  are 
the  worst  administrators ;  they  are  easy  and  well-intended,  and 
that  is  all.  Their  youthful  ardour  soon  cooled  dowi\ ;  they  were 
always  sanguine,  and  had  not  the  remotest  apprehension  of  the 
mess  in  which  they  may  have  found  themselves.  And  before 
buying  freely  is  condemned,  the  temptation  to  buy — or  rather, 
the  pressure  to  buy  under  which  a  numerouis  class  of  business 


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The  Philosophy  of  JBustmsa  Failures.  107 

men  are  placed  by  an  elaborate  system  of  town  and  country 
traTdling — must  be  thought  of  in  its  many  bearings.  Then, 
grnng  credit  is  a  still  more  blameless  failiag,  because,  unless 
tome  confidence  is  to  be  reposed  in  those  to  whom  we  sell,  they 
are  not  unlikely  to  seek  a  more  pliant  merchant.  Last  of  all, 
wLat  shall  be  said  of  him  who  settled  down  where  he  is  not 
wanted  !  Thus  the  conditions  of  one  set  of  business  failures — 
and  that  a  very  numerous  one — are  not  dissimilar,  but  alike. 
Ihey  may  almost  be  referred  to  the  same  cause — ^that,  namely, 
of  tiie  necessity  which  exists  for  taking  things  as  we  fijid  them. 
The  higher  walks  of  commerce  will  not  be  found  to  differ 
greatly  in  their  main  features.  They  agree  in  the  extraordinary 
combinations  necessary  to  insure  success ;  in  the  magnitude  of 
ihe  interests  at  stake ;  and  in  other  points  to  which  it  is  super-i 
fluoos  to  allude.  To  speak  first  of  tbe  combinations,  none  but 
those  familiar  with  commerce  can  conceive  of  the  complexity  of 
the  problem  before  the  merchant.  His  operations  may  be  cout 
fined  to  the  United  Kingdom,  or  they  may  extend  to  one  and  all 
of  the  great  markets  of  the  world.  In  either  case  finance  will 
engross  a  large  measure  of  attention.  How  are  bills  falling  due 
to  be  retired,  business  expenses  to  be  met,  and  fimds  for  private 
expenses  to  be  provided?  Unreasonable  realisations  will  be 
m^ofitable,  and  hitch  or  embarrassment  in  money  matters  is 
another  name  for  ruin.  Next  in  importance  to  finance  is  the 
entering  into  new  transactions.  That  is  at  all  times  a  most 
anxioos  case,  for  without  it  there  is  no  getting  on,  and  in  pro- 
portion as  it  is  profitable  or  unprofitable  is  gain  or  loss  computed. 
After  new  transactions  and  finance  comes  administration,  or  the 
orderly  and  judicious  regulation  of  the  whole — an  effort,  to 
which  sometimes  the  term  genius  might  fitly  be  applied. 

Then,  as  if  to  perplex  the  judgment,  especially  at  a  time  of 
pressure,  tiie  contemplation  of  the  magnitude  of  the  interests 
mToIved  is  constantly  forcing  itself  on  the  attention.  The  con- 
stifomts  of  a  bank,  for  example,  or  of  an  army  agency,  may 
nmnb^  some  thousands ;  the  constituents  of  a  great  merchant 
are  frequently  few  in  number,  althoi^gh  the  liabilities  are  heavy. 
Hms,  again,  the  conditions  of  another  set  of  business  failures 
are  alike,  and  not  dissimilar.  There  may  be  several  great 
bSoree,  not  one  of  which  may  be  distinguished  by  a  single 
novelty. 

Sncli  is  the  faint  foreground  tracing  of  the  intricate  and 
hrwi  questioii  of  business  failures,  with  the  omission  of  the 
caaes  which  are  cxcseptional.  The  popular  view,  and  the  view  that 
sema  to  be  generally  current  among  successfiil  business  men,  is 


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108  The  Half -Yearly  Meetings. 

very  different.  The  popular  view  is,  that  if  a  bu&dness  man  have 
failed  he  is  guilty  of  some  unpardonable  sin,  and  is  not  to  be 
again  reinstated  in  credit  or  favour.  And  as  if  to  confirzn 
the  popxilar  view,  it  is  usual  for  those  who  have  broken  down  to 
hang  the  head,  relinquish  old  privileges,  and  abandon  old  pre* 
tensions.  Without  saying  that  bankrupts  are  to  be  heroes^  it 
must  be  obvious  that  the  popular  view  is  unsupported  by  reason 
and  fallacious.  It  is  a  low  estimate  of  business — a  forgetful- 
ness  of  its  hazards.  The  mariner  with  a  ship  at  sea,  tlie 
general  with  an  army  in  the  field,  is  not  called  on  to  display 
half  the  powers  of  mind,  not  half  the  self-denial,  of  the  busy 
merchant.  All  the  year  round  the  merchant  is  at  his  post,  alwajrs 
venturing ;  and  therefore  when  he  falls  it  ought  to  be  assumed 
that  he  falls  honourably — until  at  least  dishonour  has  been 
proved  against  him.  Falling  honourably  cannot  (logically  con- 
sign him  to  contumely  and  isolation.  As  well  might  the  hand 
which  drew  an  insufficient  Bankrupt  Bill  be  forbidden  to  draw 
another ;  as  well  might  one  miscarriage  of  justice  preclude  tbe 
administration  of  all  justice.  On  abstract  grounds  failure  in 
business — ^honourable  failure — ^like  failure  in  invention,  or  in 
any  mental  effort,  should  be  esteemed  a  guarantee  against 
rashness  in  the  same  direction  at  another  time.  It  should  be 
esteemed  an  addition  to  the  stock  of  an  individual  man's  ex- 
perience, instead  of  forming  a  stumbling-block  to  him. 

Of  dishonourable  failure  sufficiently  strong  terms  of  reproba- 
tion can  scarcely  be  employed.  It  is  an  injury  to  the  collective 
body  of  business  men,  and  an  offence  against  society.  £ut 
unfortunately  the  scope  of  the  term  is  ill  defined^  and  its  appli- 
cation  vague  and  arbitrary.  An  attempt  to  fix  its  meaning, 
and  the  meaning  of  some  other  business  terms  and  phrases^  is 
much  needed,  and  if  successful  would  be  sustained  with  great 
benefit  to  all  classes. 


THE  HALF-YEARLY  MEETINGS* 
The  present  number  of  the  Bankers*  Magazine  contains  the  bulk 
of  the  half-yearly  meetings  of  the  banks,  the  discount  and  tbe 
finance  companies.  A  more  important  issue  of  this  periodical 
was  never  before  made.  In  the  reports  of  these  assemblies  will 
be  found  the  history  of  the  financial  progress  of  the  last  six 
months:    the  prosperity  which  preceded  the  high  rates    of 


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The  Half-  Tearly  Meetings.  109 

BELoniey,  the  adversity  and  loss  which  accompanied  the  crash 
produced   by  tlie  pressure  in  October  and  November.      The 
banlc  meetings,  like  the  credit  and  finance  meetingSj  exhibit 
Taried   resnlts ;  all  the  old-establiihed  institutions  have  made 
large  profits  and  declared  enormous  dividends ;  several  of  the 
Dew  banks  present  doubtful  balance-sheets,  with  large  losses, 
and  bave  been  compelled  to  suspend  the  payment  of  dividends. 
Some  of  tbe   new  establishments,  the  shares  of  which  were 
Tery  bigb  in  the  days  of  the  general  inflation,  will  hereafter 
hare  to  be  carefully  managed,  or  they  will  collapse ;  but  the 
majority,  it  is  but  fair  to  say,  show  such  elements  of  success, 
that,  now  they  have  got  into  smooth  water,  there  is  the  ex- 
pectation of   ultimate  prosperity.     The  accounts  and  reports 
isBoed  (taking  them  in  the  order  in  which  they  have  appeared) 
I     by  the  Union  Bank  of  London,  the  London  and  Westminster 
Bank,  and  the  London  Joint  Stock  Bank,  have  surprised  most 
people.     The  shareholders  and  the  public  were  prepared  in  all 
these  cases  for  flattering  and  substantial  expositions,  but  they 
scarcely  imagined  that  such  profits^  such  dividends,  and  such 
reserves  would  have  been  presented. 

The  Bank  of  London  and  the  City  Bank  have  both  done  well 

— the  latter,  however,  not  having  escaped  some  sacrifice  in  the 

panic— and  the  Metropolitan  and  Provincial  and  the  Alliance 

evea  allowing  less  unfavourable  accounts  than  were  imagined. 

The  directors  of  these  latter  establishments  have  nevertheless 

made  a  clean  breast  of  it,  and  as  they  promise  to  go  to  work 

with  beart  and  a  will  hereafter  to  retrieve  lost  ground  and  im- 

prore  their  position,  they  may  in  the  course  of  time  do  so. 

Tbe  meeting  of  the  Loudon  and  County  Bank  has  yet  to  be 
beld,  but  it  is  understood  that  the  profits  of  that  establishment 
ba.^e  proved  extremely  satisfactory,  and  that  the  rate  of  dis- 
tribution win  be  very  encouraging.    The  other  bank  meetings 
^'▼e  not  exhibited  important  features,  but  they  indicate  most 
VDimstakeably  that  there  is  now  quite  sufficient  bank  accom- 
inodatian,  and  that  there  is  not  the  slightest  necessity  for  any 
iuaeaae  of  it'     This  will  therefore,  perhaps,  be  a  warning  to 


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A 


110  The  Half-  Yearly  Meetings. 

promoters  abd  others  not  to  attempt  to  introduce  any  new  pro* 
jectSy  without  they  are  for  localities  where  English  banking  does 
not  exist,  and  unless  they  are  assured  that  they  can  complete 
their  subscriptiouB  and  capital  without  djf awing  from  the  re- 
source of  the  general  market. 

The  best  of  the  credit  and  finance  companies  show  that  they 
are  negotiating  a  sound  and  satisfactory  business^  The  London 
Financial,  the  International,  and  thd  Imperial  Mercantile  Credit 
have  each  published  reports  that  prove  they  have  been  well  and 
careftdly  managed.  The  dividends  have  been  good,  and  the 
reserves  carried  forward  enough  to  place  them  in  a  stable 
situation.  They  are  evidently  transacting  what  may  be  con- 
sidered a  large  proportion  of  banking  business,  and  the  effect  is 
that  their  q>erations  produce  a  marked  influence  upon  the  course 
of  general  financial  relations. 

Some  of  the  weaker  establishments — those  which  it  is  not 
necessary  to  enumerate — wiU,  when  they  have  made  a  few 
losses,  have  to  put  their  affairs  into  liquidation,  and  the  issue 
will  be  inconvenience  to  the  shareholders  and  no  advantage  to 
the  public.  The  accounts  of  the  National  Discount  Company 
present  a  most  cheering  appearance,  and  the  Joint  Stock  Dis- 
count report  would  have  been  better  but  for  its  having  suffered 
from  the  Leeds  Bank  paper  which  was  so  extensively  circulated 
through  London  just  previous  to  the  suspension  of  the  Leeds 
Bank  in  September  last. 

The  Consolidated  Discount  Company  have  made  losses  con- 
sequent upon  the  panic,  and  in  one  instance  it  is  believed  they 
were  defrauded  through  some  warrant  transactions.  Hereafter 
they  will,  no  doubt,  be  in  a  stronger  position,  and  when  trade 
revives  they  may  come  in  for  their  fair  share  of  business.  Look- 
ing, nevertiieless,  at  the  general  results  of  the  meetings,  they 
have  proved  eminently  favourable,  and  though  there  have  been 
exceptions,  the  anticipatory  romours  of  the  collapse  and 
winding  up  of  certain  establishments  have  been  in  most  cases 
altogether  unfounded. 


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Ill 


ttiSTORie  OUTLINES  OF  AMEBICAN  FINANOB. 

No.  xn. 

AxBKE'w  Jackson  was  inaugurated  President  of  the  United 
States  on  the  4tli  of  March,  1829,  as  successor  to  John  Quincy 
Adams.     He  had  distinguished  himself  as  a  soldier  by  brilliant 
successes  against  the  Greek  and  Seminole  Indians,  by  his  defence 
of  New  Orleans  against  the  rash  and  unfortunate  English  Gene- 
ral Pakenham,  and  by  the  invasion  and  conquest  of  the  Spanish 
possessions  in  Florida.    After  all  the  founders  of  American  in- 
dependence had  disappeared  from  the  political  scene,  his  military 
prowess  had  rendered  him  highly  popular,  especially  with  the  ex- 
treme democracy,  on  whose  votes  he  had  counted  to  raise  him 
to  the  presidential  chair.     To  promote  his  canvass,  he  promised 
to  act  upon  the  principles  of  Washington  and  Jefferson,  and  of 
the  other  patriarchs  of  American  UbertVy  confining  his  rule 
scrapnlotisly  within  the  defined  margin  of  the  presidential  pre- 
rogative.    That  he  was  conscientious,  patriotic,  and  disinte- 
rested, his  bitterest  enemies  allow,  but  he  exhibited  none  of  the 
coneiliatory   temper  of  his  illustrious  predecessors.      On  the 
contrary,  he  was  self-willed,  arbitrary,  dictatorial.   Shortly  after 
the  battle  of  New  Orleans,  he  arrested  a  member  of  the  legis- 
lature of  Louisiana,  who  had  writteti  an  article  in  one  of  the 
newspapers  of  which  he  disapproved.     For  this  violation  of  thei 
liberty  of  the  subject,  he  was  tried,  condemned,  and  sentenced 
to  a  fine  of   1,000  dollars.     In  the  second  war  against  the 
Seminole  Indians,  he  seized  two  Englishmen,  named  Ambrister 
and  Arbuthhot,  who  were  in  the  coimtry  at  the  time,  suspect- 
ing them  to    be  secret  allies  of   the  Indians.    He  ordered 
them  both  to  be  tried  by  court  martial.    One  of  the  two  waa 
condemned  to  death  by  that  tribunal,    but  General  Jackscm 
executed  both.     On  the  pretext  of  the  Indians  retreating  for 
shelter  under  the  guns  of  the  Spanish  fortress  of  St.  Mark,  he 
aeized  it,  on  which  the  Governor  of  Pensacola  demanded  its 
restoration.     €bneral  Jackson  marched  against  it  and  took  pos- 
session of  the  whole  country.    These  acts  sufficiently  prove  the 
impetnosity  of  his  character. 

On  being  appointed  President,  his  first  measure  was  to  fill  up 
all  public  offices  with  his  own  partisans.  During  the  first  ses- 
sional recess,  he  made  176  appointments,  principally  removing 
tboBe  who  differed  from  him  in  opinion.  In  comparing  his  con- 
duct in.  this  respect  with  that  of  his  predecessors,  his  partiality 
f^oGBrs  ixioeft  flagrant.    During  the  administration  of  Washing- 


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112  Hiataric  Outlines  vf  American  Finatice. 

ton,  there  were  only  nine  removals  in  eight  years',  and  one  of 
these  was  a  defaulter.  In  that  of  John  Adams,  there  were  ten ; 
under  Jefferson,  thirty-nine;  under  Madison,  five,  of  whom 
three  were  defaulters ;  under  Monroe,  nine,  of  whom  six  were 
for  causes  assigned ;  under  John  Quincy  Adams,  only  two,  and 
both  for  causes  assigned.  Thus,  under  the  administration  of  six 
succeeding  Presidents,  extending  over  a  period  of  forty  years, 
there  were  seventy-four  removals  ;  under  Jackson,  immediately 
on  his  accession  to  power,  there  were  one  hundred  and  seventy- 
six,  all,  with  rare  exceptions,  without  any  proof  of  official  de- 
linquency. His  government  commenced  with  the  principle  of 
proscription.  What  made  this  sweeping  exercise  of  the  prero- 
gative the  more  remarkable,  was  that,  before  his  election,  he  had 
openly  professed  himself  a  determined  enemy  to  party  spirit  and 
party  favouritism,  more  particularly  in  the  distribution  of  exe- 
cutive patronage.  The  violation  of  this  pledge  strongly  mani- 
fested itself  in  the  post  office  department.  Between  the  4th  of 
March,  1829,  and  the  22nd  March,  1830,  he  displaced  four 
hundred  and  ninety-one  postmasters. 

It  may  also  here  be  observed  that  down  to  the  presidency  of 
General  Jackson,  the  construction  given  to  the  spirit  and  intent 
of  the  Federal  constitution  by  the  majority  of  Congress,  gave 
it  power  to  protect  domestic  manufactures,  to  appropriate  public 
moneys  for  works  of  internal  improvement,  to  create  a  Bank  of 
the  United  States,  and  generally  to  regulate  and  control  all 
affairs  strictly  national.  Such  was  the  settled  policy  of  the 
country  to  the  year  1829,  in  which  nearly  all  parties  concurred, 
exceptmg  a  large  majority  of  the  representatives  of  the  Southern 
States.  General  Jackson  had  been  d  member  of  the  Senate,  in 
which  capacity  he  had  voted  in  the  affirmative  on  eight  different 
Bills  providing  for  internal  improvement  out  of  the  funds  of 
the  general  government,  and  his  vote  in  favour  of  the  tariff  of 
1824,  founded  on  the  principle  of  protection,  showed  that  he  did 
not  concur  in  the  principles  of  free  trade  of  which  Mr.  Crawford 
was  the  leading  politician.  Mr.  Calhoun,  elected  Vice-President 
with  General  Jackson,  had  advocated  the  re-charter  of  the  first 
United  States  Bank  in  1810  ;  he  also  concurred  in  the  charter 
of  the  new  bank  in  1816,  and  had  supported  in  Congress  the 
general  features  of  a  protective  tariff.  Finally,  the  mends  of 
Crawford  and  Calhoun  had  united  to  ensure  the  election  of 
Jackson  in  1828.  Politicians  soon  began  to  speculate  how  they 
would  act  together,  now  that  power  was  placed  in  their  hands. 

In  his  first  annual  message,  8th  December,  1829,  the  Presi- 
dent thus  alluded  to  the  tariff  of  1828,  which  had  excited  a 


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historic  Outlines  of  American  Finance.  113 

fively  and  growing  opposition  in  the  Southern  States  : — "  Look 
ing  to  the- period  not  far  distant  when  a  sinking  fund  will  not 
be  required,  the  duties  on  those  articles  of  importation  which 
cannot  come  into  competition  with  our  own  productions,  are  the 
first  which  should  engage  the  attention  of  Confess  in  the  modi- 
fication of  the  tariff.  Of  these,  tea  and  coffee  are  the  most 
prominent."  These  sentiments  did  honour  to  a  wise  aad  gene- 
rous statesmanship.  So  long  as  the  nation  was  in  debt,  it  be- 
came the  duty  of  the  President  to  make  provision  for  its 
redemption,  and  a  sinking  fund  was  one  of  the  provisions  of 
which  Congress  had  approved ;  when  that  was  no  longer  needed, 
justice  demanded  the  repeal  of  the  duties  on  such  commodities 
as  American  industry  could  not  produce,  such  as  tea  and  coffee, 
for  the  growth  of  which  the  soil  and  climate  were  not  adapted ; 
but  the  case  was  the  very  reverse  with  those  commodities  to  the 
production  of  which  America  was  competent.  In  regard  to 
these,  protection,  or,  in  other  words,  the  exclusion  of  rival 
fabrics  from  more  advanced  countries,  was  essential  to  the  gra- 
dual development  of  native  industry,  as  it  had  been  to  England 
in  the  earlier  periods  of  its  history,  for  without  a  beginning 
there  could  not  have  been  any  progress.  Manufacturing  excel- 
lence requires  time  and  assisted  culture  before  it  can  arrive  at 
self-sustaining  maturity.  That  was  the  policy  of  Congress,  not 
exceptionally,  as  Jackson  had  put  the  case,  but  absolutely,  and 
fears  were  roused  by  the  modification  he  had  introduced,  alarm- 
ing the  protectionists  lest  the  small  end  of  the  wedge  might  be 
inserted  with  ulterior  views.  On  the  other  hand,  the  free-traders 
were  dissatisfied  with  the  -limited  concession  that  had  been  re- 
commended. 

Symptoms  of  disunion  soon  appeared.  The  standing  commit- 
tees both  of  the  Senate  and  of  the  House  of  Eepresentatives 
made  reports  diametrically  opposed  to  the  recommendation  of 
the  President,  for  the  tone  of  his  first  message  both  on  the 
tariff  and  on  the  bank  of  the  United  States  was  deemed  hostile. 
A  debate  in  Congress  on  the  public  lands  arose.    It  was  pro- 
posed to  limit  sales  to  such  sections  as  had  already  been  offered 
for  sale,  and  were  subject  to  entry  at  the  minimum  price,  and 
to  abolish  the  office  of  surveyor-general.     This  was  construed 
by  the  Southern  members  as  a  design  to  prevent  the  settlement 
of  the  West,  and  it  raised  formally  the  question  of  "  States 
Bights/'     It  was  replied  to  these  oppositionists  that  public 
lands  not  particularly  and  expressly    ceded  to  a  State  were 
iolely  at  the  disposal  of  the  United  States  Government,  and 
while  they  remained  in  that  condition,  as  unreserved  national 


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114  Historic  Outlines  cf  American  Finance. 

domain,  no  single  State  or  ap^gregation  of  States  had  a  right  to 
interfere  in  any  manner.  Such  was  the  argument  of  the  cele- 
brated Mr.  Webster,  who  wished  to  sell  small  tracts  to  actual 
settlers  and  fill  up  the  vacant  territory  with  resident  cultiva- 
tors ;  and  he  contended  that  to  yield  the  pretensions  involved 
in  *'  States  Rights  "  was  in  effect  to  nuUify  the  Union,  The 
eastern  States  applauded  these  views;  the  Southern  opposed 
them ;  and  then  a  new  subject  of  discord  arose.  Indeed,  the 
South  had  always  resisted  wnat  it  called  the  encroaching  exer- 
cise of  power  by  the  Federal  Government,  with  the  exception  of 
South  Carolina,  which  had  voted  for  internal  improvements, 
the  United  States  Bank,  and  the  tariff;  but  a  great  change  had 
taken  place,  and  South  Carolina  had  become  the  most  vehement 
advocate  of  States'  Bights.  It  had  opposed  the  tariff  in  1824, 
and  its  subsequent  modification  in  1828.  On  its  passage  its 
members  threatened  to  resign  their  seats  in  Congress.  In  182/ 
the  state  legislature  of  South  Carolina  asserted  that  each  state 
was  a  distinct  and  independent  sovereignty.  Georgia  acquiesced 
in  the  doctrine.  Virginia  adopted  it,  and  in  1829  the  right  of 
a  state  to  nullify  an  act  of  Congress  was  a£Srmed.  Jnorth 
Carolina,  though  equally  opposed  to  the  tariff  with  other 
southern  states,  declared  against  all  violent  measures ;  and 
while  Alabama  remonstrated  against  commercial  restrictions,  it 
conceded  the  right  of  Congress  to  pass  revenue  laws. 

These  conflicts  prognosticated  a  stormy  administration,  but 
there  were  other  causes  of  collision.  We  have  seen  that  Mr. 
Monroe,  though  at  first  disinclined  to  appropriate  the  nublic 
money  to  internal  improvements  except  for  stnetly  federal  pur- 
poses, ultimately  yielded,  and  the  precedent  he  had  established 
was  accepted  as  irreversible.  A  bill  was  now  passed  for  in- 
ternal improvements  through  Congress,  called  the  "  Maysville. 
Road "  bill,  which  Jackson  vetoed.  He  had,  however,  sanc- 
tioned a  bill  for  continuing  the  Cumberland  Koad,  and  another 
for  the  improvement  of  roads  and  harbours ;  but  what  gave 
great  offence  was  the  fact  of  his  approval  of  the  Cumberland 
Bill  with  a  qualification  that  limited  its  extension.  This  was 
a  novel  and  unconstitutional  proceeding,  for  the  legitimate  ac- 
tion of  the  President  on  the  legislation  of  Congress  was  a  mere 
naked  right  of  approval  or  disapproval.  He  could  neither  en- 
large or  abridge  the  instrument  submitted  to  him  by  Congress. 
His  conduct,  therefore,  was  an  act  of  usurpation.  Jackson,  in 
truth,  objected  to  the  principle  which  Monroe  had  sanctioned, 
not  that  he  was  unfavourable  to  internal  improvements,  but  to 
the  payment  of  the  cost  directly  out  of  the  public  treasury. 


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HMorio  (hUUne$  (^  American  Finance,  115 

His  notioii  was  that  the  national  funds  should  be  distri- 
bated  among  the  several  States  in  proportion  to  their  number 
of  Tepresentatives,  to  be  applied  by  them  to  objects  of  internal 
improvement.  However  Congress  persisted,  passed  other  bills 
having  sinular  objects^  and  the  President  yielded.  The  prin- 
ciple was  then  considered  settled. 

These  various  causes  of  difference  had  greatly  weakened  the 
moral  union  of  the  cabinet.  Mr.  Calhoun  had  long  been  sus- 
pected of  having  proposed  a  vote  of  censure  on  General  Jackson 
for  his  conduct  in  the  Seminole  war.  That  conduct  related  to 
the  vear  1818.  The  suspicion  rankled ;  at  length,  on  the  20th 
Apnl,  1831,  it  became  kuown  that  the  cabinet  ministers  had 
resigned.  Of  the  new  Cabinet  Mr.  Calhoun  was  not  a 
member.  General  Jackson  then  appointed  his  personal  friend, 
Mr.  Yan  Buren,  minister  to  England,  but  the  senate  refused 
the  appointment.  The  votes  were  twenty-three  against  twenty- 
three.  Mr.  Calhoun,  as  Vice-President,  gave  the  casting  vote 
against  the  President's  friend.  This  was  the  first  occasion  on 
which  a  minister  had  been  compelled  to  retire  from  his  post  by 
the  Senate.     It  was  the  sign  of  open  war. 

We  have  now  sufficiency  sketched  the  broader  outlines  of 
parties  when  General  Jackson  took  the  reins  of  government, 
and  to  give  as  clear  a  view  as  we  are  able  of  his  turbulent 
administration  we  propose  to  treat  its  leading  events  separately, 
conmiencing  with  the  Tariff  and  the  South  Carolina  Rebellion. 

The  commercial  interests  of  the  north  had  become  essentially 
bound  up  with  manufactures  and  shipping ;  those  of  the  south 
continued  agricultural.  The  north  demanded  protection  against 
the  superior  wealth  and  highly  improved  machinery  of  England, 
and  sought  it  in  an  excluding  Tariff  which  shut  out  the  c(»n- 
peting  fabrics  of  Great  Britain  from  the  American  market.  To 
compass  that  end  Congress  had  passed  the  several  restrictive 
kws  of  1816,  1818,  1824,  1828,  and  1832.  Of  these  enact- 
ments the  South  complained,  for  the  South  was  a  buyer  not  a 
sdler  of  manufactuxes,  desiring  to  supply  its  own  particular 
wants  at  the  cheaper  rate  which  England  would  have  willingly 
accepted,  but  which  would  have  crushed  the  industry  of  the 
NorUi.  H^ice  arose  a  deadly  feud  between  the  two  sections 
of  the  Union,  originating  in  the  diversity  of  their  mercantile 
interests,  and  it  became  so  violent  as  to  threaten  the  dissolu- 
tion of  the  Federation. 

When  Genoral  Jackson  became  President,  the  national  debt, 
otmated  at  120,000,000  dollars  at  the  close  of  the  second  war 
with  ihiglaod^  had  been  reduced  to  less  than  59,000,000  dol- 


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116  HiUcric  Ouilinei  of  Ameriean  Finance. 

lars.  The  great  source  of  revenue  had  heen  cuBtomB  duties, 
though  these  had  been  supplemented  by  moneys  deriyed  from 
the  national  domain^  but  all  internal  taxes  were  abolished  at 
the  restoration  of  peace.  It  was  under  this  fiscal  system, 
carried  on  with  paper  money,  that  the  national  debt  was  in 
rapid  course  of  liquidation.  The  whole  country  prospered,  all 
the  people  were  contented.  In  his  message  to  Congress  of  the 
4th  March,  1832,  the  President  said,  "  Within  the  four  years 
for  which  the  people  have  confided  the  executive  powers  to  my 
charge,  forty  eight  millions  of  dollars  will  have  been  applied  to 
the  purchase  of  the  public  debt.''  As  this  had  been  derived 
from  the  surplus  of  income  over  expenditure,  it  is  certain  that 
the  material  wealth  of  America  had  been  largely  augmented. 
In  the  same  message  the  President  referred  to  the  tariff  in  these 
terms.  ^'  A  tariff  of  high  duties  for  perpetual  protection  was 
never  contemplated  by  any  statesmao.  However,  large  inter- 
ests have  grown  up  uader  the  implied  pledge  of  legislation 
which  would  seem  a  violation  of  public  faith  suddenly  to  aban- 
don. Nothing  could  justify  it  but  public  safety,  which  is  the 
supreme  law.  People  submit  to  high  duties  so  long  as  the 
money  arising  from  them  is  applied  to  the  common  benefit  in 
the  extinguishment  of  the  public  debt.  Those  who  take  an  en- 
larged view  of  the  condition  of  our  country,  must  feel  satisfied 
that  the  principle  of  protection  must  be  ultimately  limited  to 
those  articles  of  domestic  manufacture  which  are  mdispensible 
to  our  safety  in  time  of  war."  Beyond  that  object  the  Presi- 
dent did  not  consider  protection  justifiable,  but  the  doctrine, 
even  with  this  limitation,  was  denounced  by  South  Carolina, 
while  the  limitation  offended  the  Protectionists. 

In  October,  1832,  the  legislature  of  South  Carolina  sum- 
moned a  convention  of  the  people  to  meet  on  the  next  ensuing 
3rd  of  November,  and  declare  its  opinion,  not  only  on  the  tariff, 
but  generally  on  the  principles  which  ought  to  influence  con- 
gress when  enacting  commercial  laws.  The  convention  met, 
and  by  a  majority  of  136  votes  against  26  passed  an  ordinance 
affirmmg  that  the  various  protective  tariffs  passed  by  Congress, 
especially  those  of  the  19  th  May,  1828,  and  the  14th  July, 
1832,  violated  the  spirit  of  the  federal  constitution^  and  there- 
fore were  null  and  void.  It  further  ordered  that  the  state  ordi- 
nance should  be  obligatory  on  the  citizens  of  South  Carolina. 
That  their  extreme  measures  should  not  remain  an  idle  threat. 
South  Carolina  armed  and  embodied  its  militia  on  a  war  foot- 
ing. Other  states  of  the  south,  especially  Virginia  and  Georgia, 
without  committing  themselves  to  any  overt  act  of  rebellion, 


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Historic  Outlines  ^qf  American  Finance*  117 

diowed  that  tbey  fully  sympathized  with  the  insurrectionary 
state ;  and  there  were  general  rumours  that  the  entire  south 
would  revolt  and  form  a  separate  and  independent  confedera- 
tion. In  fact  the  TJnion  hung  together  by  a  thread.  The 
South  Carolina  ordinance  contained  the  following  threatening 


^  That  the  several  acts  and  parts  of  acts  of  the  Congress  of 
the  United  States,  purporting  to  be  laws  for  the  imposing  of 
duties  on  the  importation  of  foreign  commodities,  and  now 
having  actual  operation  and  effect  within  the  United  States ;" 
and,  more  especially,  ^'  two  acts  for  the  same  purpose  passed  on 
the  29th  May,  1828,  and  on  the  14th  July,  1832,  are  unautho- 
rised by  the  constitution  of  the  States,  and  violate  the  true 
meaning  and  intent  thereof,  and  are  null  and  void  and  no  law, 
and  not  binding  on  the  citizens  of  that  state  nor  its  officers." 
The  document  then  proceeds  to  state  that  by  the  said  ordinance 
it  is  further  declared  to  be  unlawful  for  any  of  the  constituted 
authorities  of  the  state,  or  of  the  United  States,  to  enforce  the 
payment  of  the  duties  imposed  by  the  said  acts  within  the  same 
state ;  and  that  it  is  the  duty  of  the  legislature  (of  South  Caro- 
lina) to  pass  such  laws  as  may  be  necessary  to  give  full  effect  to 
the  said  ordinance.*'  It  was  then  ordered  that  no  court  of  law 
or  equity  in  South  Carolina  should  question  the  validity  of  the 
ordinance,  and  that  no  appeal  should  be  allowed  to  the  Supreme 
Court  of  the  United  States  under  pain  of  pimishment,  Finally 
it  was  resolved  that  the  citizens  of  South  Carolina  should  main- 
tain the  ordinance  at  all  hazards,  and  consider  any  act  of  Con- 
gress closing  or  obstructing  the  ports  of  the  said  state  "  as  in- 
consistent with  the  longer  continuance  of  South  Carolina  in  the 
Union ;"  and  further  that  the  people  of  South  Carolina  will 
"  forthwith  proceed  to  organize  a  separate  government,  and  do 
all  acts  and  things  which  sovereign  and  independent  states  may 
of  right  do."  This  was  to  draw  the  sword  and  throw  away  the 
scabbard. 

A  defiance  so  insolent  roused  the  fiery  spirit  of  General  Jack- 
son, but  for  a  man  of  his  impetuous  temperament  his  answer 
to  the  South  Carolina  ordinance  was  moderate  in  its  tone, 
though  masterly  in  argument.  He  began  by  remarking  that 
the  ordinance  was  not  founded  on  the  indefeasible  right  of  re- 
sisting acts  which  are  plainly  unconstitutional  and  too  oppres- 
sive to  be  endured,  but  on  the  absolutely  untenable  ground,  that 
one  state  may  not  only  declare  an  act  of  Congress  void,  but 
also  prevent  its  execution.  He  admitted  there  were  two 
sppea^  from  an  imoonstitutional  act  of  Congress— one  to  the 


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118  BUtwie  Outlinei  qf  American  Finance. 

judiciary,  the  other  to  the  people  and  the  states ;  but,  as  he 
observed,  the  ordinance  refused  any  appeal  to  either,  and 
therefore  South  Carolina  made  itself  sole  judge  of  its  own 
act.  It  was  indeed  obvious  that  a  state  veto  on  the  sea- 
sional  laws  of  the  Union  was  an  impracticable  absurdity,  for 
instead  of  all  the  parts  of  the  federation  obeying  the  whole, 
each  separate  part  would  be  supreme  in  itself.  Secession  is  an 
intelligible  principle  (whether  justifiable  by  circumstances  or 
not  is  another  question),  for  it  dissolves  the  federal  tie;  but 
for  any  single  member  of  a  federation  to  obey  or  defy  the 
general  laws  at  its  mere  will  and  pleasure,  is  an  outrage  on 
common  sense.  During  the  colonial  government  the  dirorent 
provinces  formed  leagues  for  special  and  temporary  purposes, 
but  all  being  then  subjects  of  England  they  had  no  pretensions 
to  sovereignty.  Before  the  declaration  of  independence  the 
provinces,  in  their  aggregate  character,  were  laiown  as  the 
united  coloiues  of  America.  That  declaratioa  made  them  a 
nation  by  a  joint  act,  not  by  several  separate  acts,  and  thus 
they  became  one  and  indivisible.  The  instrument  of  confederate 
union  contained  this  clause  :-* 

"  Every  State  shall  abide  by  the  determination  of  Congress 
on  all  questions  which  by  that  confederation  shall  be  submit- 
ted to  them." 

Experience  having  proved  that  the  confederate  constitution 
was  so  full  of  defects  as  to  render  government  impracticable,  it 
was  agreed  to  change  its  provisions  after  the  contest  with  Eng- 
land was  decided ;  and  to  facilitate  that  arrangement  it  was 
enacted  that  the  whole  thirteen  states  should  be  bound  by  a 
vote  of  nine  States  in  defining  and  settling  the  new  federative 
constitution.  The  next  important  object  aimed  at  in  the  poli- 
tical system  was  **  to  form  a  more  perfect  union  '*  than  that  of 
the  confederation  which  was  to  be  superseded.  It  was  there- 
fore childishness  to  suppose  that  the  K>unders  of  a  more  perfeot 
union  ever  contemplated  the  framing  of  an  instrument  by 
virtue  of  which  any  state  or  combination  of  states,  (unless  by 
unanimous  vote,)  should  disrupt  the  union  when  it  or  they 
pleased  by  refusing  to  obey  the  laws   of  Congress. 

The  South  CaroUna  argument  amounted  to  this :  The  right 
to  secede  is  deduced  from  the  nature  of  the  constitution,  wluch 
is  a  compact  between  sovereign  states  who  have  preserved 
their  whole  sovereignty,  and,  therefore,  are  subjects  of  no 
superior.  Having  made  the  compact  they  can  break  it  when, 
in  their  opinion,  it  has  been  departed  from  by  the  other  states. 
The  flaw  m  this  reasoning  is  the  very  false  assumption  that  in 


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Siataric  Outlines  of  American  Finance.  119 

f ormmg  the  compact  each  state  retained  its  sovereignty  wholly 

iindiminished. 

General  Jackson  answered  it  substantially  in  the  following 

terms.  We  are  one  people  in  the  choice  of  President  and 
Yice-President.  There  the  states  have  no  other  agency  than 
to  direct  the  mode  in  which  the  votes  shall  be  given  ;  the  can- 
didates having  the  majority  of  all  the  votes  are  chosen.  The 
electors  of  a  majority  of  the  states  may  have  given  their  votes 
for  one  candidate,  and  yet  another  may  be  chosen.  The  people, 
then,  not  the  states,  are  represented  in  the  executive  branch. 
Ab  to  the  House  of  [Representatives,  When  chosen  they  are 
all  representatives  of  the  United  States,  not  of  the  particular 
state  by  which  they  are  deputed.  They  are  all  paid  by  the 
United  States,  not  by  the  state  which  elected  them.  Ko  doubt 
they  do  and  may  consult  the  local  interests  of  their  constituents, 
bat  they  are  none  the  less  representatives  of  the  United  States, 
and  bound  in  duty  to  promote  the  general  good.  The  states 
severally  have  not  retained  their  sovereignty.  They  are  com- 
ponent parts  of  a  nation,  not  members  of  a  league.  Each  has 
surrendered  many  of  the  essential  attributes  of  sovereignty. 
The  right  to  make  treaties,  to  declare  war,  to  levy  taxes,  to  ex- 
ercise judicial  and  legislative  powers,  are  all  of  them,  functions 
of  sovereign  power.  For  all  these  sovereign  powers,  the  states 
are  no  longer  sovereign,  as  they  formallv  surrendered  them 
when  the  constitution  was  formed.  The  allegiance  of  the  citi- 
sens  of  each  state  was  transferred  to  the  United  States.  They 
all  became  American  citizens,  promising  obedience  to  the  laws 
enacted  by  Congress ;  treason  is  an  offence  against  sovereignty 
and  Bovereigxitv  must  reside  in  and  be  inherent  in  the  punish- 
ing power.  The  states  have  no  such  power,  and  this  alone 
IB  decisive  of  the  principle  of  unity.  Moreover,  in  time  of  war 
the  President  is  commander-in-chief  of  all  the  militia  of  all 
the  states,  which  is  a  clear  admission  of  the  surrender  of  indi- 
vidual sovereignty.  For  these  various  reasons  General  Jackson 
contended  that  the  federation  was  a  nation,  not  a  mere  league, 
for  a  constitution  is  a  compact  which  all  are  bound  to  obey, 
not  an  agreement  from  which  any  party  may  capriciously  se- 
cede. Such  in  substance  was  the  proclamation  of  the  rresi- 
dent  dated  the  11th  December,  1832,  and  every  unprejudiced 

radfi©  must   admit  that  his  reasoning  was  unanswerable.    He 

j^ced  hiB   proclamation  by.  dispatching  a  sloop  of  war  to 

^  loston  to  collect  the  Gustams  Duties  in  the  harbour. 

^^  (To  be  cowHHued.) 


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120 


AMALGAMATION    OF   MESSRS.  ATTWOODS,  SPOONER  it  CO. 
WITH  THE  BIRMINGHAM  JOINT-STOCK  BANK. 

The  Birmingham  papers  aunounce  one  of  the  most  important  amal- 
gamations of  banking  interests  that  have  taken  place  in  tliat  locality, 
if  not  in  the  provinces,  viz.,  the  fusion  of  the  old-established  bank  of 
Messrs.  Attwoods,  Spooner,  Marshalls  and  Co.  with  the  Birmingham 
Joint-stock  Bank,  Limited.  The  negotiation  which  has  resulted  in 
this  amalgamation  commenced  in  April  last,  immediately  after  the 
transfer  of  Messrs.  Jones  Lloyd's  business  to  the  London  and  Westmins- 
ter. The  death  of  Mr.  T.  A.  Attwood,  anc^  subsequently  of  Mr.  Spoouer, 
necessarily  delayed  a  settlement ;  but  a  few  days  ago,  the  preliminary 
agreement  was  executed,  and  the  transfer  will  take  place  as  soon  as  the 
resolutions  to  be  submitted  to  the  shareholders  of  the  joint-stock  bank 
have  been  confirmed.  It  will  be  seen  by  the  subjoined  cii'culars  that 
the  title  of  the  united  bank  will  remain  as  it  is ;  that  the  business 
will  be  carried  on  in  New  Street,  as  well  as  at  Temple  Row,  and  the 
management  and  conduct  of  the  New  Street  house  will  remain  as  at 
present,  Mr.  George  Edwards  being  the  chief  executive  officer  of  that 
branch.  We  are  also  informed  that  Messrs.  Barclay,  Bevan,  Tritton, 
and  Twells  will  continue  to  be  the  London  agents.  In  order  that 
the  interests  of  the  two  banks  may  be  closely  united,  Mr.  Henry 
Marshall,  the  .surviving  partner  of  his  firm,  will  co-operate  in  the 
direction  of  the  bank,  and  three  other  gentlemen  of  lai'ge  commercial 
experience  and  eminent  position  will  also  take  seats  at  the  board. 
The  teiins  upon  which  this  amalgamation  has  taken  place  are  not 
made  public,  but  we  have  reason  to  know  that  while  they  are  fair  and 
equitable  to  Messrs.  Attwood  and  Co,  they  will  j^ield  substantial  ad- 
vantage, not  only  in  prestige  and  position,  but  in  profit  to  the  share- 
holders of  the  joint-stock  bank. 

The  bank,  which  has  now  adopted  the  course  which  all  private 
firms  sooner  or  later  will  take,  was  opened  on  the  4th  of  April,  1791, 
and  has  consequently  been  in  existence  for  seventy-four  years.  The 
original  partners  were  Messrs.  Isaac  Spooner,  James,  JV^tthias  and 
Aaron  Attwood,  and  Thomas  Aynsworth.  The  business  subsequently 
passed  into  the  hands  of  the  descendants  of  some  of  the  founders,  and 
later  the  Messrs.  Marshall  became  partners.  Time  has  removed  all 
the  members  of  the  firm  except  Mr.  Henry  Marshall,  and  he  and  the 
business  he  has  managed  so  long,  take,  it  is  to  be  hoped,  a  new  lease  of 
life  in  the  union  with  one  of  the  yoimgest  and  most  vigorous  of  contem- 
porary banks.  The  founders  of  the  joint-stock  bank  have  certainly 
much  cause  for  congratulation  in  the  fact  that  experienced  and  saga- 
cious men  like  those  who  represent  the  interests  of  Messrs.  Attwood  and 
Co.  should  have  selected  their  bank  as  that  with  which  the  fortunes 
of  the  old  firm  should  be  linked ;  a  preference  due,  we  suspect,  not 


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Bank  Amalgamation^  121 

lento  t^e  prosperous  condition  of  the  jdntrstock  bank  than  to  the 
&ct  of  its  being  based  on  the  principle  of  limited  liability. 

The  following  are  the  circularn  which  have  been  issued  to  the  friends 
«f  the  two  banks  : — 

^  Birmingham  Joint  Stock  Bank,  Limited. 
^  Birmingham,  January  20, 1865. 

**  Sir, — ^I  have  the  pleanure  of  informing  you  that  the  directors  of  this 
company  have  entered  into  an  agreement  with  the  representatives  of  the 
old-established  bank  of  Messrs.  Attwoods,  Spooner,  Marshalls,  and  Co., 
for  the  amalgamation  of  the  business  of  the  two  companies. 

^  The  terms  upon  which  this  amalgamation  has  been  effected  have  been 
the  subject  of  careful  consideration^  and  the  directors  have  pleasure  in 
congratulating  the  shareholders  on  an  arrangement  which  cannot  fail  to 
oonduoe  most  materially  to  their  interests. 

"  The  amalgamated  business  will  be  carried  on  under  the  title  of  *  The 
Krmingham  Joint-Stock  Bank,  Limited,'  in  Temple  Bow,  West ;  and  the 
TUaiVfTig  House  of  Messrs.  Attwoods,  Spooner,  Marshalls,  and  Co.,  will  be 
oootinued  as  a  branch  imder  the  superinteudence  of  Mr.  George  Edwards, 
for  many  years  cashier  with  Messrs.  Attwoods,  Spooner,  Marahalls,  and 
Go.  The  amalgamated  company  will  also  have  the  benefit  of  the  oo- 
operation  of  Mr.  Henry  Marshall,  who,  with  three  other  gentlemen,  repre- 
senting Messrs.  Attwoods,  Spooner,  Marshalls,  and  Co.,  will  join  the 
board  of  direction. 

*'In  making  this  announcement  the  directors  need  scarcely  say  that 
the  interestfl  of  the  friends  of  the  Joint-Stock  Bank  shall  always  have 
their  utmost  attention ;  and  on  behalf  of  the  amalgamated  bimk  they 
solicit  from  the  friends  of  Messrs.  Attwoods,  Spooner,  Marshall,  and 
Co,,  a  continuance  of  the  confidence  that  has  so  long  been  accorded  to 
ihat  firm. 

^  The  transfer  will  take  place  on  the  day  the  shareholders  confirm  the 
zeaohztioais  to  be  submitted  to  them. 

^  I  have  the  honour  to  be, 

^'Sir,  your  obedient  servant, 

'^  Joseph  Beaitie,  Manager.'* 

^Bank,  191,  New  Street,  Birmingham, 

«  20th  January,  1865. 

ttpear  Sir, — ^e  haTe  the  ];dea8ure  of  acquainting  you  that,  after  a  very 
cai^ul  negotiation,  we  have  come  to  an  arrangement  with  the  directors 
of  the  Birmingbam  Joint-Stock  Bank,  Limited,  for  the  amalgamation  of 
our  bank  with  theirs. 

"A  preliminary  agreement  has  been  signed,  and  the  directors  will 
apply  for  powers  at  their  annual  meeting,  on  the  6th  February  next, 
to  carry  it  into  eflfect. 

**  We  are  of  opinion  that  the  terms  are  very  beneficial  to  both  parties, 
and  our  cnstonners  will  have  the  opportunity  of  taking  shares  in  the 
taoiigaiaBJbed  bank  upon  the  same  terms  as  the  customers  of  the  joint- 

stock  bank. 

^li  has  been  arranged  that  Mr.  Henry  Marshall,  and  three  other 
Mntlemen  to  ^  proposed  by  us,  shall  be  nominated  directors;  and 
^  "Mi    Gleorge  Edwards  who  has  been  so  many  years  our  cashier, 


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122  Bank  Amalgamation. 

shall  be  the  manager  at  the  branch  of  the  amalgamaied  bank  in  Kew 
Street. 

^It  wonld  be  very  gratifying  to  na  that  yon  shonld  extend  to  the 
united  bank  the  same  confidence  with  which  you  have  honoured  us  for 
BO  many  years; 

^We  remain,  dear  sir, 

**  Tour  faithful  and  obliged  aervants, 

"AlrrwOODS,  SPOONBBy  MAltSHALLB  &  Oo/' 

It  will  beseen  by  the  subjoined  notice  that  a  special  general  meetingis 
called  for  the  6th  of  February,  to  confirm  the  agreement,  and  to  raise 
the  nominal  capital  to  £3,000,000.  Some  of  the  shares  so  created 
will,  we  presume,  be  applied  to  the  purchase  of  the  btlsiness  of  Messrs. 
Attwood  and  Co.  However  that  may  be,  the  shareholders  are  to 
participate  in  the  new  issue  to  the  extent  of  one  share  in  ten,  the 
premium  being  the  very  moderate  one  of  £16,  the  payment  of  pre- 
mium and  ctipital  being  spread  over  a  period  of  twelve  montha.  We 
append  the  official  notices  : — 

^  BiBMiNOHAM  JonrT-SToc&  Bakk,  Limtted. — ^Notice  ii  hereby  gives, 
that  the  next  ordinaiy  general  meeting  of  the  company  will  be  held  at  the 
Exchange  Assembly  Itm>m,  in  New  Street,  Birmingham,  on  Monday,  the 
6th  day  of  February  next,  at  one  o'clock  in  the  afternoon  precisely,  to 
receive  the  directors'  report,  to  declare  a  dividend,  and  to  transact  the 
general  business  of  the  company. 

^  Notice  is  also  given,  that  an  extraordinary  meeting  of  the  shareholders 
will  be  held  at  the  same  place  at  half-past  one  o'do^  in  the  afternoon 
of  the  same  day,  when  resolutions  to  the  following  effect  will  be  proposed, 
viz.: — 

"  1. — To  confirm  an  agreement  entered  into  by  the  directors  for  the 
amalgamation  of  the  banking  business  of  Messrs.  Attwoods,  Spooner, 
Manmalls,  and  Co.  with  this  bank. 

**  2. — ^To  increase  the  capital  of  the  company,  by  the  creation  of  10,000 
additional  shares  of  £100  each  (so  that  the  whole  capital  will  be  three 
millions),  and  to  authorise  the  appropriation  of  such  new  shares. 

**  3. — To  annul  the  64th  and  77th  articles  of  association,  and  in  lieu 
thereof  to  take  power  to  increase  the  number  of  directors  and  to  supply 
vacancies* 

**By  order  of  the  Board, 

^  Joseph  Beattxb,  Manager. 

**  Bank,  No.  4,  Temple  Row  West,  Birmingham, 
January  20,  1865. 

"  The  transfer  books  of  the  oompan v  will  be  closed  from  the  20th  day  of 
Jannazy  to  the  6th  day  of  Febmary.'' 

^  Birmingham  Joint-Stock  Bank,  Limited. 

^  Birmingham,  20th  January,  1865. 

^Dear  Sir^ — ^In  transmitting  the  accompanying  notice,  convening  ^ 
annual  and  a  special  general  meeting  of  the  oompaay,  I  have  the  {deasore 


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Banking  and  Financial  Anecd(de8,  123 

toiafoxm  yon  that  out  of  the  new  capital  then  to  be  ooraated,  the  direoton 
popoee  to  allot  to  the  shareholders  upon  the  register  this  day,  one  share 
tor  every  ten  shares  held  by  them,  at  a  premium  of  £16  per  share.  The 
pigments  in  respect  of  capital  and  premium  will  be  extended  over  a  period 
of  twelve  months. 

"  I  am^  dear  sirs,  yours  f aithf ully^ 

^JoBXPH  Bbattib,  Manager." 


BANKING  Ain>  VJ^ASCUIj  ANECDOTES. 
No.  n. 

SASIiT   errBUGOLES  OF  THB  BANK  OF   SKdLAND. 

^imBS  those  difficulties  which  may  be  said  to  be  the  lot,  more  or 
len,  of  all  fiTiim/^iiil  experiments  and  conuneroial  ventures,  the  Bank 
(A  England  in  its  early  days — as  indeed  in  its  later  days  also— had  to 
contend  against  the  shafts  of  ridicule  and  the  attacks  of  interested 
opponents.  The  following  curious  example  of  the  difficulties  tliat 
beset  the  bank  at  its  outset  will  explain  itself  In  a  sham  report, 
''  The  Trial  and  Condemnation  of  the  Land  Bank  at  Exeter  Change 
for  Murdering  the  Bank  of  England  at  Grocers'  Hall,"  is  to  be 
found  an  equally  spurious  will,  which  is  supposed  to  be  produced  at 
the  trial     It  is  as  follows  :— 

**  Elnow  all  our  creditors  by  these  presents,  that  we,  the  Govemor 
and  Company  of  the  Bank  of  England,  being  weak  in  body  through 
iki»  wounds  received  from  the  LBud  Bank  at  Exeter  Change,  to 
whom  we  lay  onr  death,  but  of  as  good  sense  as  ever  we  were,  finding 
oaraeives  impaired  in  our  credit  and  reputation,  and  despairing  of 
reoovery,  do  make  our  last  will  and  testament 

''  1st  We  bequeath  our  soul  to  the  devil  in  order  to  serve  the 
puUic  out  of  our  creditors'  money ;  and  as  to  the  qualities  of  our 
mind,  we  dispose  of  them  as  follows ;  namely,  all  our  skill  in  foreign 
exchanges,  and  our  |Nrobity  and  candoiu*  in  making  up  the  accounts 
of  the  loss  thereoi^  we  give  to  all  and  eveiy  of  our  directors,  except 
four  or  fivet,  jointly  and  severally  to  hold  to  them  and  to  their  suc- 
cessors as  heir-looms  and  indelible  monuments  of  their  skill  and  pro- 
laty  for  ever.  All  our  obstinacy  and  blunders  we  give  unto  our 
present  Governor,  upon  trust  tdiat  he  shall  employ  one  equal  third 
put  theareof  as  one  of  the  Lords  of  the  Admiraliy,  and  the  other 
put  thereof  as  Governor  of  the  Bank  of  England     All  our  oaths. 


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124  Banking  and  Financial  Anecdotes 

impudence,  &c.,  we  give  unto  our  present  Deputy  Oovemon  and 
our  dear  Sir  Henry  Fumese,  to  hold  in  joint  partnership  during 
their  lives,  and  the  survivor  to  have  the  whole.  All  our  shuffling 
tricks  we  give  to  our  dear  Sir  William  Gore.,  AM  our  cynicalness 
and  «elf-conceit  we  give  to  our  directors  Sir  John  Ward  and  Sir 
Gilbert  Heathcote,  equally  to  be  divided  betwixt  them,  share  and 
share  alike,  aa  tenants  in  common.  All  our  blindness  and  fear  we 
give  unto  our  dear  Obadiah  Sedgwick,  and  we  also  give  him  £5  in 
money  to  buy  him  a  new  cloth  coat,  a  new  half -beaver  hat,  a  second- 
hand periwig,  and  an  old  black  sword  to  solicit  with  in  the  lobby, 
and  also  to  buy  him  a  pair  of  spectacles  to  write  letters  to  lords 
with.  As  to  the  residue  of  our  temporal  estate  (besides  the  said  £5), 
we  dispose  thereof  aa  foUoweth  : — Imprimis — we  devise  to  our  own 
members  (when  they  shall  have  paid  in  their  whole  £100  per  cent.) 
our  fund  of  £100,000  per  annum,  charged  and  chargeable,  never- 
theless, with  the  sum  of  £1,200,000  for  which  it  stands  mortgaged, 
by  bank  bills,  in  full  satisfaction  of  all  their  great  expectations  from 
the  probity  and  skill  of  our  directors,  advising  them  to  accept  a 
redemption  thereof  by  Parliament  whenever  they  can  have  it  Item 
— all  our  ready  moneys  before  any  of  our  debts  are  paid  we  give  to 
our  executors  hereinafter  named,  in  trust  that  they  shall,  from  time 
to  time,  until  1st  of  August,  1696,  lend  the  same  into  the  exche- 
quer, upon  condition  to  defeat  the  establishment  of  the  Land  Bank  ; 
and  from  and  after  the  said  1st  of  August  then  to  lend  out  the  same 
into  the  said  exchequer,  upon  security  of  premises  to  establish  our 
executors  the  next  session,  instead  of  the  Land  Bank,  and  for  such 
other  premiums  as  our  said  executors  can  give  to  themselves  for 
doing  thereof.  And  we  do  direct  our  said  executors  to  continue 
the  stock  and  pensions  already  allowed  to  our  past  friends — they 
know  where.  And  after  all  our  ready  money  so  disposed,  we  leave 
the  residue  of  our  effects  for  payment  of  bills  and  notes,  at  such 
days  and  hours,  and  in  such  manner  and  proportion,  and  with  suck 
preferences  as  our  said  executors  shall  think  fit.  And  we  do  hereby 
constitute  our  directors  executors  of  this  our  will,  giving  each  of 
them  power  out  of  our  cash  to  discount  their  own  tallies,  bills  and 
notes  at  par,  and  the  bills  and  notes  of  other  of  our  creditors  at  the 
highest  discount  they  can  get  for  the  same.  And  our  body  we 
commit  to  be  buried  with  all  privacy,  lest  our  creditors  arrest  our 


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Banking  a  fid  Fitiancial  Anecdotes.  125 

eeijse.       In  ^tne-s  whereof  we   hsLve   hereunto    s«»t   our   common 
«1,  4di  May,  1G96." 

En*anAiiiig  fix-m  the  same  sc»urce  we  luive  the  following  s|.it<'f\il 

SG^-'-^don  for  an  epit^iph  ou  the  Bank  of  Euglanil : — •*  IL-vv  lies  the 

U.JT./  the  Bank  of  EngLiml,  who  was  boni  in  thi-  y<iir  1004  ;   di»'.i 

Mat  hh,  1090,  in  the  third  year  of  its  age.     They  Inul   iixsue  Itgiti- 

Mitcy  their  common  aesl,  1,200,000  called  Bank  Bijls,  and  by  their 

cisLier  two  million  tons  of ,  called  Sjxjeirs  notes." 


WnXLAJi  THE  THIRD    AND   THE  FIB8T  DEPCTT   GOVTUtNOR  OF  THE 
BANK   OF  ENGLAND. 

The  establishment  of  the  Bank  of  England  had  a  decided  effect  on 
the  war  which  WUliam  the  Tliird  was  carrying  on  against  the  French, 
in  1 695.  The  sinews  of  war  were  required,  and  ilr.  Michael  Godfrey, 
who  was  then  Deputy  Governor  of  the  Bank,  charged  himself  with 
the  mission  of  conveying  funds  to  the  King,  who  was  vigorously 
besieging  Namnr.  Mr.  Godfrey  having  ventured  into  the  trenches 
to  have  an  interview  with  the  sovereign,  who  was  to  be  found  there, 
WIS  cordially  received,  as  was  natural  enough,  seeing  what  was  the 
pmport  of  his  visit.  But  the  King  seemed  to  have  a  presentiment 
that  the  trenches  of  Namur  were  not  the  place  for  tlie  man  of  finance. 
•*  As  you  are  no  adventurer  in  the  trade  of  war,  Mr.  Godfrey,"  said 
^iHiiin  of  Orange,  *'  I  think  you  should  not  expose  yourself  to  the 
haaidof  it."  The  banker  immediately  rey>lied,  with  the  true  spirit 
<rf  a  eoortier,  **  Not  being  more  exposed  than  your  Majesty,  should  I 
he  excDwble  if  I  showed  more  concern  ?  *'  "  Yea,"  replied  the 
mooareh ;  *'l  am  in  my  duty,  and  therefore  have  a  more  reasonable 
daim  to  preservation."*  It  is  difficult  to  see  how  the  King  was  more 
in  his  duty,  or  more  self-denying  than  the  banker,  or  what  "  claim  to 
preservation''  either  had  a  right  to  set  up.  But  be  this  as  it  may, 
the  dialogue  between  the  King  and  his  lojal  subject  was  in  a  moment 
cat  short  The  messenger  of  death — a  cannon  ball  from  the  fortress 
—in  10  mstant  laid  Mr.  Godfrey  low,  and  he  thus  paid  a  fatal  penalty 
iff  too  reckleaa  a  devotion  to  the  interests  of  his  country. 


*  Martineaa't  Histoiy  of  England. 
VOL.  XXV.  12 


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126  Banking  and  Financial  Anecdotes, 

COUKT   YAK  HORN  AND   THE   MURDEllED   STOCKBROKER. 

In  1718-19,  when  the  Mississippi  scheme  of  the  notorious  John 
Law  was  exciting  much  sensation,  society  in  Finance  was  completely 
disoi^nised.  The  historian  De  Tooqueville,  alluding  to  this  period, 
says,  •'  At  this  epoch  of  scandal  and  opprobrium  there  was  no  folly  or 
vice  in  which  the  upper  classes  did  not  take  the  lead.  The  degrada- 
tion of  men's  mihds  waa  equal  to  the  corruption  of  their  manners." 
A  striking  illustration  of  the  depravity  of  the  time  may  be  found  in 
the  life  and  ignominious  death  of  the  Count  Antoine  Van  Horn,  who 
was  related  to  many  noble  families,  as  well  as  the  brother  of  a  prince. 
He  is  thus  described  :*  "  His  fJEUse  was  as  pale  and  as  beautifully 
chiselled  as  that  of  an  antique  statue,  and  a  pair  of  singularly  wild 
and  brilliant  eyes  shed  over  the  whole  what  might  have  seemed 
preternatural  light  The  ladies,  with  whom  Van  Horn  was  a  greater 
favourite  than  with  their  husbands  or  brothers,  declared  that  it  was 
almost  impossible  to  withstand  his  ardent  gaze/'  The  extermd  cha* 
racteristics  of  the  Count  were  evidently  no  index  to  his  mental  quali- 
ties, for  he  obtained  "  a  bad  pre-eminence  "  in  crime  even  at  a  period 
when  extravagance,  debauchery,  and  crime  were  rife.  Paiis  was  one 
morning  startled  by  the  rumour  that  a  wealthy  Jewish  stockbroker  had 
been  robbed  and  murdered  in  o])eii  day,  and  in  the  very  heart  of  this 
luxurious  city.  All  the  town  was  on  the  qui  mve,  and  the  excitement 
was  increased  by  the  name  of  Count  Antoine  Van  Horn  being  whis- 
pered as  the  murderer.  It  seems  that  the  unfortunate  Hebrew  broker 
had  been  lured  to  a  cabar§tj  and — ^whether  in  the  heat  of  passion  in 
quarrelling  about  money  matters,  or  in  cool  blood,  is  not  known — the 
Count  stabbed  the  unhappy  Jew.  He  was  immediately  apprehended, 
and  though  immense  efforts  were  made  by  the  noble  and  the  wealthy 
to  save  him,  he  was  condemned  to  be  broken  on  the  wheei,  and 
afterwards  suffered  this  miserable  and  disgrace^]  death. 


PAYIKO   BANK    NOTES   BY   INSTALMENTS. 

AifONa  the  *'  things  not  generally  known ''  in  connection  with  the 
Bank  of  England,  is  the  fact  that  during  the  earlier  period  of  its  his- 
tory, the  holder  of  a  note  could  obtain  payment  of  part  of  its  value, 

*  Chambers. 


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Banking  and  Financial  Anecdotes,  127 

leaving  the  Bank  to  pay  the  remainder  at  a  future  time.  Indeed,  the 
note  might  be  paid  in  several  instalments.  There  ai'e  still  to  he  seen 
in  the  mammoth  establishment  in  Threadncedle  Street,  some  of  those 

noiea.     The  last  note  that  was  thus  treated  is  a  curiosity;  there  is 

but  sixpence  to  receive  upon  it 


A  niNNXB   PABTY   PUT  OFF  FOR  WANT   OF  CHANOB. 

During  the  panic  in  Ireland,  in  1820,  when  eleven  hanks  had  failed 
within  one  month,  there  were  some  ludicrious  annoyances  amidst  severe 
distress.  A  gentleman  in  Cork  wanted  a  leg  of  lamb,  and  offered  a  £5 
note  for  it,  which  was  refused.     In  Limerick,  a  country  gentlemaji, 
with  £1,500  a  year,  had  sent  out  invitations  for  a  dinner  party  the 
week  before  the  banks  broke,  and  considei*ed  himself  most  fortunate 
in  finding  amongst  his  notes  one  Bank  of  Ireland  note  for  £10.     No 
one  doubted  the  goodness  of  the  note,  but  no  one  could  give  change 
for  it.     Ten  pounds  in  gold  or  silver,  were  not  in  the  county ;  and  as 
fcr  credit,  there  was  none  to  be  had.     In  this  extremity,  with  money 
— which  -whS  not  money — and  without  credit,  having  tried  butcher, 
baker,  and  confectioner,  in  vain,  the  gentleman  gave  up  the  idea  of 
his  dinner  party  in  despair,  and  wrote  to  hia  Mends  to  keep  the  en- 
gagement standing  until  he  could  procure  cash  or  credit  for  a  £10 
nota* 


ALDERMAN  SIB  B.   C.   OLTN. 

Alderman  Sir  R.  C.  Glyn,  Bart.,  was  remarkable  for  the  liberality 
and  generosity  he  displayed  in  assisting  his  customers  when  in  tem- 
porary difficulty.  An  old  client  of  the  bank  applied  to  the  firm  for 
a  large  advance.  Sir  Eichard's  partners  were  opposed  to  the  pro- 
posal, but  the  alderman  had  greater  faith,  and,  strenuously  urging 
his  views,  carried  them  against  his  partners.  A  large  sum  was  ad- 
Tanced  to  the  customer,  and  this  enabled  him  to  triumph  over  his 
difficulties.  The  customer  thus  saved  from  pecuniary  ruin,  subse- 
qnently  became  veiy  rich,  and  at  his  death  left  to  the  alderman  an 
annuity  of  £5,000  a  year,  as  a  testimony  of  gratitude. 


*  Hardc«8tle'8  Banks  and  Bankers. 


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128  Banking  and  Financial  Anecdotes. 


SPECULATION   IN  THE   EIGHTEENTH   CENTURY. 

The  South  Sea  scheme,  which  was  in  itself  the  cause  of  so  much 
excitement  and  ruin,  turned  men*s  minds  Irom  the  ordinary  pursuits 
of  business  and  produced  a  fever  for  speculation,  during  which  many 
ridiculous  projects  were  started.  There  was  one  scheme  for  the  dis- 
covery of  perpetual  motion ;  and  two  companies  were  actually  con- 
cocted to  secure  the  money  of  subscribers  without  any  statement  of 
the  objects  sought  to  be  attained.  One  of  them  was  stated  to  be  a 
"  promising  design  hereafter  to  be  promulgated  ;"  the  other  a  "  com- 
pany for  canying  on  an  undertaking  of  great  advantage,  but  nobody 
to  know  what  it  is  ;  every  subscriber  who  deposits  £2  per  share  to 
be  entitled  to  £100  per  annum."  The  projector  of  this  latter  scheme 
obtained  ±2,000  in  five  houi*s  from  his  dupes,  and  immediately  de- 
camped. Another  bubble  was  the  issue  of  "  Globe  permits  " — little 
bits  of  card  on  which  there  was  a  seal  representing  the  Globe  tavern 
and  the  words  "  Sail  cloth  permits."  These  cards  merely  gave  the 
holder  the  right  of  subscribing  to  a  sail-cloth  company  in  contempla- 
tion ;  and  yet  these  little  '^  permits  "  sold  at  sixty  guineas  each,  and 
even  more,  while  there  was  quite  a  fever  to  procure  them.  The 
London  Jawmaly  of  June  11,  1720,  says  :  "  The  hurry  of  our  stock- 
jobbing bubblers  has  been  so  great  this  week  that  it  has  exceeded  all 
that  was  ever  known.  There  has  been  nothing  but  running  about 
fix)m  one  coffee-house  to  another,  and  from  one  tavern  to  another, 
to  subscribe  without  examining  what  the  proposals  were.  The  gene- 
ral cry  has  been,  *  For  God's  sake  let  us  subscribe  to  something ;  we 
don't  care  what  it  is.*" 


FEEDING  ON  GOLD. 

Dr.  Mackay,  in  his  "History  of  Popular  Delusions,"  says:  "The 
overbearing  insolence  of  ignorant  men  who  had  arisen  to  sudden 
wealth  by  successful  gambling  made  men  of  true  gentility  of  mind 
and  manners  blush  that  gold  should  have  power  to  raise  the  unworthy 
in  the  scale  of  society.  The  haughtiness  of  some  of  these  *  cyphering 
cits,'  as  they  were  termed  by  Sir  Kichard  Steel,  was  remembered 
against  them  in  the  days  of  their  adversity."  During  a  parliamentary 
inquiry,  one  of  the  members  made  the  following  curious  motion,  in 
reference  to  a  man  named  Grigsby,  who,  though  he  had  once  boasted 


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Legal  Miscellany.  129 

ttat  he  could  feed  his  horse  upon  gold,  was  reduced  to  bread  and 
^ater  for  himself:  **  That  since  that  up- start  had  been  so  prodigally 
vain  as  to  bid  his  coachman  to  feed  his  hoi-ses  with  gold,  no  doubt  he 
could  feed  on  it  himself;  and  therefore  he  moved  that  he  might  be 
allowed  as  much  gold  as  he  could  eat,  and  the  rest  of  his  estate  go 
towards  the  relief  of  the  sufferers," 


IKJITNCTIOK. — WAT80K  V.   THB  IKTERNATIONAL  BANK. 

This  case  came  before  Vioe-Chancellor  Kindersiey  in  the  Court  of  Chancery 
on  the  12th  Jamiaxy. 

It  was  a  motion  for  an  injunction   to  restrain  the  defendants  from 

mieing  upon  certain  promissoiy  notes  and  railway  debentures,  and  from 

parting  with  or  dealing  with  the  same  under  these  circumstances.     The 

plaintiffs^  case  was  that  they  were  contractors  in  London  and  also  at  Bahia, 

in  South  America,  and,  wanting  money,  applied  to  Messrs.  Wooley,  Coates, 

and  Hankey,  brokers  in  London,  to  get  them  a  credit  for  £15,000,  which 

MesBTB.  Wooley  obtained  from  Messrs.  Gladstone  and  Co.,  merchants  in 

London,  for  three  months,  with  power  to  extend  it  to  six  months  if  the 

plaintiffs  desired  it.    The  plaintiffs,  therefore,  drew  on  Messrs.  Gladstone 

three  bills  of  exchange  for  £5,000  each,  and  the  plaintiffs,  as  security  to 

Messrs.  Gladstone,  gave  three  promissory  notes  for  the  same  amount,  at 

six  months,  which  were  deposited  in  the  hands  of  Messrs.  Wooley,  not  to 

be  handed  over  unless,  and  until,  the  liability  of  Messrs.  Gladstone  accrued, 

and  the  plaintiffs  also  deposited  in  Messrs.  Wooley's  hands  nineteen  bonds 

or  debentures  of  the  Newry  and  Armagh  BaUway  Company,  for  £18,000, 

cfu  the  same  terms  as  the  notes.    It  was  then  alleged  that  Messrs.  Wooley, 

instead  of  holding  these  securities,  handed  them  over  to  Messrs.  Gladstone 

--one  of  whose  firm^  Thomas  Hall  Gladstone,  was  director  and  chairman 

of  the  London  and   Colonial   Bank,  Limited,  which  had  dealings  with 

Meesra.  Field  and  Co.,  who  were  their  debtors  to  a  considerable  amotmt, 

Messrs.  Gladstone  being  also  liable  to  the  bank  on  other  transactions.    It 

appeared  that  there  was  another  banking  company  called  the  British  and 

American  Exchange  Banking    Corporation,  Limited,  and  that  the  two 

companies  became  associated,  that  is,  the  business  of  one  was  entirely 

transferred  to  the  other,  but  such  other  remained  still  a  corporation,  but 

the  name  was  changed,  and  was  now  represented  by  the  defendants.     The 

defendants  then  became  aware  that  Messrs.  Gladstone  were  liable  to  the 

Colonial  Bank^  and  being  called  upon  to  give  security,  the  bill  suggested 

that  the  defenclants  alleged  that  a  list  of  securities  was  given,  including  the 

three  promissory  notes  and  the  nineteen  bonds  in  question,  representing  them 

as  together  being  of  the  value  of  £15,000  only,  and  not  for  £15,000  and  £18,000, 

it  being  alleged  in  the  same  manner  that  the  £15,000  was  security  for  Field's 

dehft  the  £18,000  for  that  of  Messrs.  Gladstone.  It  was  also  alleged  that  Mr. 

Jiixoji    the    plaintiffs'  solicitor,  had  conversations  with    Thomas  Hall 

Cladsicme  on  the  foundation  of  which  they  assumed  that  his  directors  had 

t€srmaAioii  that  the  notes  and  bonds  belonged  to  the  plaintiffs  and  not  to 


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130  Legal  Miscellany. 

the  Messrs.  Gladstone.  ThomcuB  Hall  Gladstone  had  absconded,  and  the 
bank  were  proceecling  to  sue  upon  the  notes  and  bonds,  and  this  bill  was 
filed  to  restrain  them,  for  a  declaration  that  they  were  tru?  uoes  for  the 
plaintiffs,  for  an  account,  kc.  About  a  week  previous  an  interim  injunction 
wa.<«  obtained  at  his  Honour's  private  residence,  with  leave  to  amend  the 
bill,  and  the  motion  was  now  brought  on,  on  the  ground  that  the  fact  of  the 
list  of  securities  furnished  by  Messrs.  Gladstone  was  suiEcient  to  put  the 
defendants  on  inquiry,  and  that  if  they  had  not  direct,  they  had,  at  least, 
constructive  notice  of  the  plaintiffs'  rights,  which  were  unquestionably 
clear  as  to  these  bonds.  The  defendants  relied  upon  their  legal  title  to 
sue,  and  contended  that  there  was  not  sufficient  allegation  as  to  the  list  to 
prove  any  notice  whatever ;  the  plaintiff's,  therefore,  had  neither  1^^  nor 
equitable  defence. 

Mr.  Baily,  Mr.  Glasse,  and  Mr.  C.  Locook  Webb  appeared  in  support  of 
the  motion ;  Mr.  Holt  and  Mr.  Eddis  opposed  it ;  Mr.  Anderson  appeared 
for  the  Union  Bauk ;  Mr.  W.  Morris  for  the  Colonial  Bank ;  Mr.  Methold 
for  the  Newry  and  Armagh  Bailway  Company. 

The  Vice-Chancelior,  after  stating  the  facts,  was  of  opinion  that  the 
questions  of  equity  raised  by  the  plaintiffs  in  opposition  to  the  defendants' 
clear  legal  right  to  sue,  independent  of  such  equitable  grounds,  were 
questions  to  be  decided  at  the  hearing,  and  not  on  an  interlocutory  appli- 
cation ;  and  the  Court  would  abntain  from  deciding  any  question  which  it 
was  not  now  absolutely  necessary  for  it  to  decide.  The  plaintiff  insisted, 
although  his  Honour  thought  the  bill  appeared  to  proceed  on  a  different 
footing,  that  whatever  the  right  was  to  the  notes,  that  as  to  the  bonds  was 
unquestionably  in  the  plaintiffs.  With  regard  to  the  allegation  of  the  list 
of  securities,  it  was  certainly  not  distinct,  and  both  parties  with  equal 
justice  insisted — the  one  that  if  not  distinct,  there  were  statements 
amounting  to  such  allegation ;  the  other  that,  not  being  distinctly  alleged, 
it  could  not  be  assumed.  His  Honour's  opinion  was  that  the  plaintifb 
ought  to  have  distinctly  stated  the  fact,  and  the  defendants  distinctly  to 
have  denied  it.  No  doubt  the  conversations  between  Mr.  Rixon  and  Mr. 
Gladstone  did  pass,  but  the  allegations  in  that  respect  were  very  unsatis- 
factory, and  perhaps  at  •  the  hearing  something  more  definite  might  be 
elicited.  Under  these  circumstances,  there  must  be  an  order  for  the  in- 
junction, on  the  terms  of  bringing  the  £16,000  into  court  within  a 
reasonable  time,  the  inttvim  order  meanwhile  to  continue,  and  if  the  money 
was  not  brought  in  within  the  time,  the  motion  to  be  refused  with  costs. 

Mr.  Baily  then,  after  some  discussion,  said  that  the  £15,000  should  be 
brought  in  within  a  week. 


THB  LEEDS  BANKINQ  COMPAKY. — VICE-CHANCELLOB    KIKDEBSLEY'S   COUBT 

(in  CHAMBEB8). 

On  the  9th  January,  before  Mr.  Buckley,  the  chief  clerk  to  Yice-Chan- 
cellor  Kindersley,  several  solicitors  attended  upon  the  hearing  of  sum- 
monses <Mi  behalf  of  certain  persons  who  had  been  "  settled  "  on  the  list 
of  oontributories  to  the  Leeds  Banking  Company,  and  now  sought  leave  to 
have  their  names  taken  off  the  list. 

There  were  only  five  summonses  down  for  hearing,  and  out  of  that 
niunber  there  were  further  postponements  in  four  cases  ordered  upon  ap- 
plication by  the  chief  clerk. 


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Legal  Miscellany,  131 

In  the  case  of.  the  Bey.  Benjamin  Firth,  of  Great  Horton,  near  Brad- 
foird,  Yorkahire,  a  Wealeyan  minister,  Mr.  Braim  appeared  in  support  of 
the  application  for  leaye  to  be  struck  off  the  list,  and  Mr.  Denton  on  the 
other  side. 

Mr.  Denton,  in  stating  the  case,  said  that  Mr.  Firth  had  been  settled  on 
the  list  in  his  own  right  as  a  contributor  for  five  shares  in  the  Leeds 
BftnkJTig  Ck>mpiuiy.  He  was  so  ''settled"  on  the  ground  of  his  non- 
appearance. He  had  been  settled  on  the  list  as  a  trausferree  of  shares, 
haying  had  shares  transferred  to  him  by  the  executors  of  Mr.  George 
Hammond  on  the  16th  of  March  last. 

The  Chief  Clerk  asked  if  that  transfer  had  been  approyed  % 
Mr.  Denton  replied  that  the  directors  of  the  bank  had  approyed  the 
transfer  to  Mr.  Firth,  and  upon  his  right  as  such  transferree  Mr.  Firth 
^iplied  for  new  shares,  which  were  allotted  to  him,  and  it  was  in  respect 
^  these  shares  that  the  present  application  was  made. 

The  Chief  Clerk  obseryed  that  that  was  equal  to  a  confession  on  the 
part  of  the  applicant. 

Mr.  Denton  —Yes.  He  found  that  upon  the  14th  of  December,  1864, 
an  affidayit  was  filed  by  Mr.  Braun  on  behalf  of  his  client,  in  which  it 
was  contended  that  he  should  not  haye  been  put  upon  the  list  for  those 
shares. 

The  Chief  Clerk  then  read  oyer  some  portions  of  the  affidayit,  from 
which  it  appeared  that  the  applicant  was  not  connected  with  the  Leeds 
Banking  Company  up  to  February  or  March  last,  when  at  the  house  of 
Mr.  Bichard  Wilson,  who  was  one  of  the  directors  of  the  bank,  Jie  held  a 
oonyersation,  and  Mr.  Wilson  spoke  in  hiffh  terms  of  the  state  of  the 
hank,  and  produced  a  report  of  that  year's  date.  He  regretted  that  that 
report  had  been  lost  or  mislaid,  and  therefore  could  not  now  be  produced. 
He  had  also  seen  a  prior  report  of  1863,  and  it  appeared  that  there  was  a 
balance  of  £3^382.  It  was  stated  that  they  had  always  paid  large  diyi. 
dcskds  for  some  years  past,  and  he  consequently  instructed  a  broker  to 
porchase  h^e  shares  for  him,  which  was  done;  that  he  did  not  know  there 
was  any  material  difference  in  the  state  of  the  bank,  and  if  he  had  any 
notion  of  the  slightest  deficiency  in  the  assets  he  would  not  haye  had  any 
shares  tnnsf err^  to  him. 
Mr.  Denton. — Of  course  not. 

The  Chief  Clerk.— No;  I  should  think  not.  (Laughter.)  The  appli- 
cant  further  stated  in  his  affidayit  that  he  paid  a  deposit  into  the  bank  in 
the  month  of  August.  He  had  neyer  reoeiyed  any  diyidend,  he  had  not 
attended  any  meetings,  neither  had  he  been  returned  to  the  Stamp 
Office. 

Mr.  Denton  said  that  the  return  in  this  case  had  been  made  to  the 
Stamp  Office. 
The  Chief  Clerk  haying  concluded  reading  the  applicant's  affidayit, 
Mr.  Braun  submitted  that  his  elient  was  induced  to  take  the  shares 
upon  the  rm>re8entations  of  the  directors,  or  certain  of  them.  He  knew 
his  friend  Mr.  Denton  would  rely  upon  Frond's  case  against  him,  but  still 
lie  yentored  to  make  the  suggestion. 

The  Chief  Clerk  thought  that  the  conyersation  between  the  applicant 
ad  Mr.  Wilson  was  priyate. 

Mr.  PentoD. — ^This  was  a  conyersation  between  two  gentlemen  in  a 
priyate  house,  and  the  applicant  was  one  of  the  two  gentlemen.  Ho 
M  not  take  the  shares  from  the  bank,  but  went  into  the  market,  and  his 
broker  bough*  the  shares  for  him. 


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132  Bank  of  New  South  Wales. 

The  Chief  Clerk  said  he  had  no  doubt  upon  the  matter.  It  was  doubt- 
lefts  very  hard  upon  the  applicant,  but  he  saw  no  reason  why  the  name 
should  be  struck  off  the  list  of  contributories.  The  summons  would  be 
dismissed. 

Mr.  Braun  supposed  it  rested  with  his  client  whether  *the  case  was  re- 
ferred  to  the  court. 

The  Chief  Clerk. — Yes.     I  only  record  my  own  opinion. 

Upon  the  question  of  costs,  the  Chief  Clerk  said  that  they  must  be  paid 
by  the  applicant. 

Mr.  Denton  said  he  had  another  matter  to  mention.  He  had  to  apply 
for  an  order  to  authorise  the  official  liquidator  to  inyest  the  sum  of 
£75,000,  which  was  in  hand  in  Exchequer  bonds.  The  question  was 
whether  that  amount,  which  was  a  realisation  of  portion  of  the  assets  of 
the  bank,  should  be  so  invested,  or  that  they  should  wait  until  some  more 
money  had  come  in  from  calls.  If  the  order  were  made  it  was  proposed 
that  the  money  should  be  sent  to  the  Bank  of  England,  and  that  they 
should  employ  a  broker  to  invest  it  in  bonds,  which  would  bear  interest. 

The  Chief  Clerk  said  he  wished  that  there  should  be  no  loss  of  interest 
on  moneys  in  hand  to  any  of  the  parties.  But  the  question  was  as  to  the 
security  for  the  money. 

Mr.  Denton  said  that  the  chief  clerk  could  make  his  order  to  the  Bank 
of  England  authorities. 

Mr.  Lordin  (from  Messrs.  Freshfields  and  Newman)  said  it  was  laid  down 
that  all  moneys  could  be  so  employed  by  order  of  the  official  liquidator 
and  the  chief  clerk  of  the  judge. 

Mr.  Denton  said  a  further  matter  he  had  to  ask  leave  to  mention  was, 
that  all  the  small  shareholders,  say  up  to  £50,  should  be  allowed  to  pay 
in  full  at  once.     The  sum  from  this  class  would  amount  to  some  £30,000. 

The  Chief  Clerk  thought  he  had  no  power  to  make  any  difference  be- 
tween the  various  classes  of  holders,  and  he  believed  that  it  would  be 
impolitic,  as  the  cost  of  making  each  small  shareholder  show  by  affidavit 
the  exact  amount  of  his  holding  would  be  equal  to  the  expenses  under  the 
present  course  of  proceeding. 

Mr.  Denton  said  that  he  would  shortly  be  in  a  condition  to  show  that  a 
large  amount  of  the  calls  (which  were  that  day  due)  had  been  paid.  The 
sum  of  £75,000  of  which  he  had  spoken  was  from  assets  alone,  and  quite 
irrespective  of  the  calls  which  had  been  made. 

It  was  ultimately  arranged  that  the  question  of  investing  the  £75,000 
assets  in  Exchequer  bonds  should  stand  over  for  the  present. 

The  proceedings  were  then  adjourned. 


Reports  of  loinl-Slorh  §anks. 

BANK  OF  NEW  SOUTH  WALES. 

The  half-yearly  general  meeting  of  the  shareholders  of  the  Bank  of  New 
South  Wales  was  held  in  Sydney,  on  Wednesday,  26th  October  last ;  the 
Hon.  G.  Allen,  M.L.C.,  in  the  chair. 

The  Secretary  read  the  following  report  and  balance-sheet : — 

"  The  directors  have  the  pleasure  to  present  to  the  proprietors  the  follow- 


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Bank  of  New  Smth  Wales.  133 

ing  abstracts  of  the  bank's  liabilities  and  assets,  and  of  the  profit  and  loss 
account  for  the  half-year  ended  on  the  30th  ult : — 

The  net  profits  for  that  period,  after  deducting  rebate  on  car- 
rent  bills,  interest  on  deposits,  proivdinfl^  for  bad  and 
donbtfal  debts,  and  reducing  yaluation  of  bank  premises 

and  office  fumitureY  amount  to       £74,176  16    8 

To  which  are  to  be  added— 

Secoreries  from  debts  previously  written  off  as  bad  or  doubt- 

ftil       2,106    3  11 

CndiTided  bahwce  from  last  half-year 3,896  15    8 

Giving  for  distribution £80,179  16    3 


Which  the  directors  appropriate  as  follows : — 

To  payment  of  dividend  at  the  rate  of  15  per  cent,  per 
aonum— 

On  old  stock  for  six  montbs £56,250  0  0 

On  sew  ditto,  paid  in  the  colonies,  five 

months     8,172  10  0 

On  new  ditto,  paid  in  London,  three  months  1,894  10  0 

£66,317     0    0 

On  bonus  at  the  rate  of  2}  per  cent  per  an- 
num on  capital  paid  up 11,052  16    8 

On  balance  carried  to  *'  profit  and  loss  "  new 

account 2,809  19    7 


£80,17^  16    3 


**  The  proprietors  will  observe  that  a  larger  amount  of  new  capital  has 
been  pud  than  was  called  for  on  the  27th  Apnl  last,  and  upon  wluch  divi- 
dcnd  is  now  being  paid ;  the  rext  payment  will  be  due  to-morrow,  of  which 
intimation  has  alr^Mly  been  given. 

"  The  directors  have  the  pleasure  to  report  the  advantageous  purchase 
of  a  fdte  in  London,  upon  which  suitable  banking  premises  are  about  to  be 
erected. 

"Branches  of  the  bank  have  been  opened  in  this  colony  at  Richmond, 
sod  in  Queensland  at  Bowen,  Port  Denison. 

"  It  is  the  duty  of  the  meeting  to  elect  a  director  in  the  room  of  Thomas 
Backland,  Esq.,  vrho  retires  by  rotation.  Messrs.  Thomas  Walker,  George 
Thome,  and  B.  A.  Hunt  are  candidates  for  the  office,  and  have  given  the 
required  notice. 

**  It  also  devolves  upon  the  meeting  to  elect  two  auditors  in  the  room  of 
Mr.  James  Siilson,  jun.,  and  Mr.  John  Richardson,  the  latter  gentleman 
]^(sm  eli^hle  for  re-election. 

"The  dividend  will  be  payable  at  the  head  office  to-morrow,  and  at  the 
bn&ches  on  receipt  of  advice. 
u  Yf^j,  miJ  OB  behalf  of  the  Board  of  Directors, 

"  GvoBOE  Allen,  President." 


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134  Bank  of  New  South  Wales. 

Aggregate  Balance-sheet  of  the  Bank  qfKew  South  Wales,  September  30,  1864, 
{including  London  Branch  to  SOih  June,  1864,  and  New  Zealand  Branches 
to  &th  September,  1864). 

Br, 
To  bank  Bti)ck— Old  stock  £750,000  ;  new    stock,    paid  up 

£181,280          £931,280  0  0 

Reserve  fand          310,426  13  4 

Notes  in  circalation          591,687  0  0 

Bills  payable          1,547,105  2  7 

Deposits  and  other  liabilities        3,758,286  14  10 

Profit  and  loss 113,338  7  2 


£7,252,123  17  11 


Or. 

By  coin  and  cash  balances          £1,293,709  17  7 

Bullion  in  band,  and  in  transit  to  London,  30th  September 

1864      618,145    3  4 

Gh)Temment  securities      310,300    0  0 

Notes  of  other  banks        9,272    0  0 

Bank  premises        ...        115,160  10  0 

Bills  receivable,  bills  discounted,  and  other  debts  due  to  the 

bank 4,898,689  15  11 

Insurance  account 6,846  11  1 


£7,252,123  17  II 

PBOFIT  AND  L08B  BS7TEMBEB  30TH.,  1864. 

Dr. 

1864 
Sept.  30 — To  rebate  (at  current  rates)  on  bills  discounted  not 

due  at  this  date         £33,158  10  11 

Diridend  at  the  rate  of  15  per  cent,  per  annum        66,317    0    0 

Bonus  at  the  rate  of  2}  per  cent,  per  annum  on  capital  paid 

up         11.052  16    8 

Balance  carried  to  "  profii  and  loss*'  new  account      2,809  19    7 

£113,338     7     2 


Or. 
1864. 

March  31 — By  amount  from  last  account        £3,896  15    8 

Sent.    30 — By  recoTcries  from  bad  debts         2,106    3  11 

Bajanoeofhalf-year'sprofitsafter  writing  off  bad  debts      ...       107,335    7    7 

£113.338     7     2 


The  report  was  adopted. 

Mr.  Thomas  Walker  was  elected  a  director  in  the  room  of  Mr.  TbomsjB 
Buckland,  who  retired  by  rotation. 

Mr.  J.  Eichardfiou  was  re-elected  an  auditor,  and  Mr.  Francis  Mitchell 
was  elected  an  auditor  in  the  room  of  Mr.  J.  Milson,  jun.,  who  retired  by 
rotation. 

The  resolution  to  increaAe  the  stock  on  the  London  register  to  one-third 


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Bank  of  New  Zealand.  135 

of  the  capital,  agreed  to  at  the  special  meeting  held  on  the  28th  September, 
Yu  not  oonfixmedy  there  being  a  large  majority  against  it. 

ATote  of  thanks*  was  awarded  to  the  durectors,  and  the  proceedings  ter- 
zoioated. 


BANK  OF  NEW  ZEALAND. 


The  half-yearly  general  meeting  of  the  shareholders  of  this  bank  was  held 
iX  the  bazik  on  the  28th  of  October ;  Mr.  James  Williamson,  the  president, 
occupied  the  chair. 

The  mintxtea  of  the  laAt  half-yearly  meeting  having  been  duly  read  by 
the  Secretary,  and  confirmed,  the  Secretary  r^  the  sixth  report  of  the 
direGtorB,  as  follows : — 

''Sixth  report  of  the  Bank  of  New  Zealand,  to  the  half-yearly  general 
loeetuig  of  the  proprietors  held  at  the  Banking  House,  Auckluid,  on 
Friday,  the  28th  day  of  October,  1864.    The  directors  have  to  lay  before 
the  proprietors  the  following  statement  of  the  affairs  of  the  bank  as  at 
dOth  of  September  last,  and  while  congrattdating  them  on  the  increase  of 
husiiiess,  and  generally  successful  manner  in  which  it  has  been  conducted, 
they  have  to  express  their  regret  that  the  monetary  and  commercial  crisis 
which  Southland  has  experienced  during  the  past  six  months,  and  an  in- 
discreet advance  at  Dunedin,  have  entailed  losses  much  greater  than  may 
again  be  reasonably  looked  for,  and  but  for  which  the  profits  would  have 
been  greater  than  during  any  previous  half-year.    Ample  provision  has 
been  made  for  all  bad  and  doubtful  dependencies,  some  portions  of  which 
may  yet  be  recovered.    The  net  profit  for  the  half-year,  after  providing 
for  ail  bad  and  doubtful  debts,  and  making  considerable  reductious  in 
b«uik  premises  and  furniture  accounts,  amounts  to  £32,295.  14«.  lOdL 
To   which    is    to   be   added — ^undivided    balance   from    last    half-year, 
£2^258.  \1».  lid. ;  making  a  total  available  for  division  of  £34,555.  X2s,  9(2. 
'With  tlie  addition  now  to  be  made  to  the  reserve  fund,  it  will  amount 
to  £100/)00,  being  an  excess  of  25  per  cent,  of  the  paid-up  capital  of 
the  bank.    The  directors,  therefore,  recommend  the  following  appropria- 
tion Off  the  above  profits  : — To  payment  of  dividend  at  the  rate  of  10  per 
cent,   per  azmmn,   £18,231.    168.;    to  bonus   equal  to  5  per   cent,  per 
anirazn,  £9,115.  18«. ;  to  addition  to  reserved  fund,  £5,000 ;  balance  carried 
to  profit  and  loss  new  account,  £2^07.  18«.  9(i. ;  total,  £34,555.  128.  9(2. 
The  dividend  and  bonus  will  be  payable  at  the  head  office  on  Tuesday,  the 
Ist  proximo,  and  at  the  branches  on  receipt  of  advice. — For  the  Board  of 
Directors,  James  Williamson,  President." 

<*  Bahmoe-sheet  of  the  Bank  of  New  Zealand,  for  the  half-year  ending 

90th  S^tember,  1864,  including  London  Office  Balance  at  30th  June, 

1864.— Dr. :  To  paid-up  capital,  £392,614 ;  to  reserve  fund,  £95,000;  to 

Qoies  m  circulation,  £333,467  ;  to  bills  in  circulation,  £240,964.  128.  6d. ; 

to   deposits,    £1,323,039.    88.  7(2. ;    to    balances  due    to    other    banks, 

£99|343.  is.  6d. ;  to  balance  of  profit  and  loss  account  at  Slst  March, 

18&i,  £2,259.  17s.  lid. ;  to  net  profits  for  half-year,  £32,295. 148.  lOci  ; 

total,  £2,518,983. 15s.  6d.     Or. :  By  coin  and  bullion,  £372,094.  38.  9d. ; 

ly  ffovenunent  securities,  £360,000 ;  by  landed  property,  £17,442. 7«.  1  Od. ; 

by  h^ak  premiaes,  furniture,  and  stationery,  £29,649.   108.   dd.;    by 

bdmoes  dne  by  other  banks,  £142,676. 168.  6d. ;  by  notes  of  other  banks, 

£1150  13s.  7d. ;  by  balances  due  by  colonial  governments,  £261,431.  28,  Id,; 


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136  Bank  of  New  Zealand. 

by  bills  receivable  and  all  other  advances^  £1,344,539.  la.  6d. ;    total, 
£2,618,983. 15«.  U. 

Profit  and  Loss  Account. — Dr. :  To  increase  of  reserve  fund,  £5,000 ;  to 
dividend  at  the  rate  of  10  per  cent,  per  annum,  £18,231. 16«. ;  to  bonus  at 
2^  per  cent,  for  the  half-year,  £9,115. 18«. ;  to  amount  carried  to  profit  and 
loss,  "  new  account,"  £2,207.  18».  9d. ;  total,  £34,565.  12«.  9ci.  Cr. ;  By 
balance  of  profit  at  Slst  March,  1864,  £2,259.  17«.  Xld. ;  by  net  profit  for 
'  half-year,  £32,295.  14a.  lOd. ;  total,£34,255. 12«.  %d. 

Reserve  Fund.— Dr. :  To  balance,  £100,000.  Cr. :  By  balance  from  last 
statement,  £95,000 ;  by  amount  transferred  from  profits  of  past  half-year, 
£5,000;  total,  £100,000.— Audited  (Signed)  Henry  Walton,  W»  C. 
Wilson." 

The  Chairman  said  that  in  rising  to  propose  the  adoption  of  the  report 
he  had  to  congratulate  the  shareholders  on  the  great  success  that  had 
attended  the  transactions  of  the  bank,  the  large  increase  of  discount 
business  as  well  as  of  deposits.  This  was  the  first  time  that  they  were 
called  upon  to  write  off  any  large  amount  for  bad  debts,  which,  it  must 
be  remembered,  was  principally  occasioned  by  the  great  financial  depres- 
sion that  had  occurred  in  the  Southern  provinces,  and  more  especially  in 
Invercargill.  Taking  everything,  however,  into  consideration,  the  busi- 
ness  was  steadily  prospering,  while  a  glance  at  the  totals  of  the  balance- 
sheet  showed  that  the  business  of  the  last  half-year  was  fully  as  great  as 
could  reasonably  be  expected.  He  felt  satisfiei  1  that  their  position  was  in 
every  way  a  firm  one,  and  would  be  productive  of  results  still  better  than 
ever,  the  only  thing  required  being  the  same  expression  of  confidence  in 
the  directorship  as  had  hitherto  been  the  case.  He  would  beg  to  propose 
the  adoption  of  the  report. 

Mr.  Owen  seconded  the  motion,  which  was  imanimously  agreed  to.  ' 
Messrs.  J.  O'Neill  and  Stark  were  appointed  scrutineers  to  examine  the 
voting  for  the  office  of  directors  in  the  room  of  Mr.  Owen,  who  retired, 
and  of  Messrs.  J.  O'Neill  and  D.  Nathan  who  had  resigned;  the  gentlemen 
who  had  signified  their  intention  of  becoming  candidates  being  Messrs. 
W.  Williams,  W.  T.  Buckland,  Samuel  Browning,  and  Thomas  Henderson. 
The  ballot  having  been  taken,  the  last-named  gentlemen  were  declared 
to  have  been  duly  dected  directors  for  the  ensuing  half-year. 

Mr.  Henderson  begged  to  return  thanks  on  behalf  of  himself  and  his 
brother  directors  for  the  honour  that  had  been  conferred  upon  them. 

The  Chairman  remarked  that  this  woidd  conclude  the  business  of 
the  meeting,  without  there  were  any  gentlemen  present  who  had  any 
questions  to  ask. 

Colonel  Motdd  said  that  in  consequence  of  certain  rumours  that  had  got 
abroad—rumours  in  which  he  begged  to  state  he  in  no  way  particijmted, 
nor  did  he  feel  sure  any  of  the  present  meeting — he  was  induced  to  ask  for 
public  satisfaction  some  explanation  regarding  the  large  advances  that  had 
been  made  by  the  Bank  of  New  Zealand  to  the  colonial  government,  and 
relative  to  the  repayment  of  the  same. 

The  Chairman  said  that  he  had  much  pleasure  in  answering  the  ques- 
tion, and  at  the  same  time  he  had  to  thank  Colonel  Mould  on  behidf  of 
his  brother  directors  and  himself  for  the  expression  of  confidence  that  he 
had  given  utterance  to.  By  last  advices  he  was  happy  to  inform  the  meet, 
ing  that  the  colonial  agents  had  informed  t&em  that  they  were  prepared  to 
pay  off  the  whole  of  the  advances,  which  communication  had  been  sub- 
sequently certified  to  by  the  government  itself. 


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Colonial  Bank.  137 

Mr.  HeoderBon  rose  to  move  a  Tote  of  thanks  to  the  directors  and 
oim  of  the  bank  for  the  valuable  assistance  rendered  during  the  last 
la  QKitk.  He  was  in  no  way  surprised  at  the  losses  that  had  occurred 
^y^  Sooth;  it  was  only  to  be  wondered  at  that  so  few  losses  had  been 
o«cai»ciifd,  eoDsidering  the  large  amount  of  business  that  had  been  trans- 
acts^ tkmoimt  of  capital  involved,  and  the  numerous  branches  of  the 

Cvlaod  Ittonld  seoonded  the  motion,  which  was  unanimously  carried. 

Fee  Chsinnan,  on  behalf  of  himself  and  brother  directors,  thanked  the 
B«etmg  for  their  unanimous  expression  of  satisfaction. 

Acodrding  to  usage,  the  minutes  of  the  foregoing  meeting  were  then 
read  ad  ipproved  of,  and  the  meeting  broke  up. 


COLONIAL  BANK 

In  fifty.foarth  half-yearly  generad  meeting  of  the  proprietors  of  this 
'4x1  was  held  on  the  4&  January,  at  the  London  Tavern,  Mr.  C. 
^Jmott  in  the  diair. 

^  Secretary,  having  read  the  notice  convening  the  meeting ;  proceeded 
^"'^  Ttad  the  following  report : — 

''Ib^  directors  submit  to  the  proprietors,  in  accordance  with  the  provi. 
cdGi  of  the  charter,  the  following  statement  of  the  debts  and  assets  of  the 
^jfporaiiint  on  the  SOth  June,  1864,  which  comprises  the  net  profit  of  the 
^-jear  which  ended  at  that  period : — 

Debts. 

Creih&o.^        £257.691  8  4 

l^^iQttts,  biUs  payable,  and  other  liabilitieB 1,567,964  9  2 

^i«Uip  capital     500,000  0  0 

«*"«dfinia      123,000  0  0 

^^a«e  of  nrofit  from  last  half-year 637  0  1 

5et^wfitfe  the  half-year        36.868  19  10 


ABKBtB, 


£2,486,061  17     5 


£321,912    9    8 


-*  ••        •••         •••         ...        >••        «•■        •*.        ..• 

^^^  to  the  huk  in  the  colonies,  on  bills  discounted  and  por- 

chttcd,  incfaidine  those  past  due,  &c 974,846  19    9 

||Qe  to  the  hank  In  die  colonies,  on  current  accoants         ...         16,205  12    2 
I^  to  the  hank  in  London,  on  bills  remitted,  cash  at  bank- 

els',  kc        ^        1,162.875  17    7 

^^  premiaes  and  furniture  in  London  and  the  colonies    .*•         10,220  18    3 

£2,486,061  17    5 


ThebnsineBs  of  the  half-year  now  reported  upon  having  had  the  benefit 
^t  the  rise  in  the  prices  of  colonial  produce  alluded  to  in  the  last  report, 
^  veil  as  the  hig^  rates  of  interest  prevailing  here  during  that  period,  the 
*i^*ctors  found  themselves  in  a  position  to  recommend  the  payment  of  an 
•^^  dividend.  They  were  happy  to  state  that,  according  to  the  latest 
*«»mita,  the  bnainflSB  of  the  branches  was  going  on  very  satisfactorily; 


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138  Colonial  Bank. 

but  the  proprietors  would  have  to  bear  in  miud  that  the  prioes  of  ooloniaJ 
produce  had  oonaiderably  receded.  The  directors  now  proposed  that  out 
of  the  net  profits,  which,  after  providing  for  all  bad  and  doubtful  debts  and 
income-tax,  amounted  to  £3G,868. 19^.  lOd.,  an  ordinary  dividend  of  6  per 
cent,  should  be  made  for  the  half-year  ending  June,  1864,  being  at  the  rate 
of  12  per  cent,  upon  the  paid-up  capital  of  the  corporation,  which  would 
reqmre  £30,000 ;  and  an  extraordinary  dividend  of  1  per  cent.,  whicli 
would  require  £6,000,  leaving  £1,868.  19a.  lOd. ;  which,  after  adding  the 
balance  brought  forward  last  half-year,  £537.  Os.  Id.,  would  make  a  total 
of  £2,405. 19s.  lid.  From  this  amount  the  directors  proposed  to  carry 
to  the  reserve  fund  £2,000,,  increasing  it  to  £125,000,  and  the  balance  of 
£405. 19s.  lid.  to  the  next  half-year.'^ 

The  Chairman,  in  moving  the  adoption  of  the  report,  said  that  he  hoped 
the  shareholders  would  agree  with  him  that  it  was  sufficiently  satisfactory 
to  reqidre  neither  any  explanation  nor  a  long  speech  from  him.  (Hear, 
hear.)  He  congratulated  them  on  the  fact  that  the  board  was  able  to  re- 
peat the  additional  dividend  on  this  occasion,  but  he  trusted  that  they 
would  bear  in  mind  what  was  stated  in  the  report — namely,  that  although 
the  branches  had  done  very  well,  the  proprietors  were  mainly  indebted  to 
the  high  rate  of  interest  in  this  country.  As  regarded  the  branches,  they 
had  since  the  end  of  June  been  going  on  satisfactorily,  but  the  buidness 
had  not  spnmg  so  much  as  was  expected  owing  to  the  high  rate  of  sugar. 
A  reaction,  however,  had  now  set  in,  and  they  already  began  to  feel  its 
effects.  He  had  to  inform  them  that  since  their  last  meeting  the  board  had 
received  proposals  from  the  Bank  of  Jamaica  to  transfer  their  business  to 
this  bank  on  certain  conditions,  and  it  was  an  opportunity  which  offered  of 
increasing  their  bosiness  which  they  gladly  availed  themselves  of.  Negoti- 
ations were  accordingly  entered  into  with  that  banki  the  result  of  which 
was  that  the  Culoniid  Bank  had  taken  over  their  business,  paying  them 
£10,000  for  retiring  altogether.  (Cheers.)  By  the  last  accoimts  they  had 
received,  it  appeared  that  the  Bank  of  Jamaica  ceased  business  on  the  31st 
of  October,  and  he  was  happy  to  say  that  since  then  almost  all  the  acootmts 
had  been  transferred  to  this  bank.  (Hear,  hear.)  The  Bauk  of  Jamaica 
was,  as  they  were  aware,  as  old  as  this  bank,  being  established  at  the  same 
time,  and  sharing  with  it  the  business  of  the  colony.  For  his  part,  he 
believed  they  would  derive  great  advantage  from  this  amalgamation,  be- 
cause being  a  local  bank,  the  Bank  of  Jamaica  possessed  certain  advan- 
tages, inasmuch  as  its  supporters  were  more  disposed  to  hang  together  than 
a  general  proprietary  could  be  expected  to  do.  He  would  mention  also, 
that  it  had  been  thought  convenient  both  to  the  proprietary  and  to  the 
bauk,  that  the  divided  warrants  should  be  sent  by  post  in  future,  instead 
of  troubling  gentlemen  to  come  to  the  bank — (hear,  hear^ — ^whidi  would 
not  only  save  the  time  of  the  shareholders,  but  prevent  tne  crowding  and 
bustle  at  the  bank,  especially  on  packet  days,  occasioned  by  the  proprietors 
being  kept  waiting  for  their  dividends.  With  these  observations  he  begged 
to  move  that  the  report  be  adopted,  printed,  and  circulated.  (Hear,  hear, 
and  cheers.) 

The  Deputy  Chairman  having  seconded  the  motion  it  was  carried  unani- 
mously,  and  a  dividend  in  accordance  with  the  statement  in  the  report  was 
declared. 

The  retiring  directors  were  then  re-elected,  and  Mr.  Eden  Colville  was 
elected  to  fill  the  vacancy  occasioned  by  the  death  of  Mr.  Henir  Bruce, 
whose  decease  the  directors  deeply  deplored.    Mr.  James  Scott,  for  many 


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Union  Bank  of  Australia.  139 

yasoBecf  the  largest  proprietoTB  of  the  bank,  was  elected  anditor,  in 
H^  of  Mr.  Col^ille ;  and  a  cordial  vote  of  thanks  to  the  chairman 
^  'iirectofs  for  their  able  management  concluded  the  proceedings. 


UNION  BANK  OF  AUSTRALIA. 


A  9icm  geoeral  mteting  of  the  proprietors  uf  this  bank  was  held  at  the 
^  boildmgs  on  the  9th  January,  1^.  Bobert  Campbell  in  the  chair,  for 
tLf  pnipoee  ^  receinng  the  half-yearly  report  of  the  directors,  and  other 

The  Secanetaiy  (Mr.  Saunders),  having  read  the  adyertisement  conveoing 
tlie  meeting,  proceeded  to  read  the  following  report : 

"*  Tk  acooonts  which  it  is  the  duty  of  the  directors  to  present  at  this 
B^piementary  meeting  are  so  satisfactory  as  not  to  require  any  lengthened 
^rmarb  from  them ;  as  usual  their  preparation  has  been  preceded  by  a 
c^'Jtt  inrestigation  of  the  business  of  the  bank  at  its  various  branches,  and 
Vdfnl  iiTovision  for  everything  that  could  be  estimated  as  doubtful  to 
litest  dates.  The  results  are  considered  by  the  directors  to  be  very 
f^rimnble,  and  they  are  gratified  to  report  accordingly.  The  proprietors 
^  notice  the  profit  obt^ed  by  the  disposal  of  unallotted  shares^  and 
•ie  Qompletion  of  the  funds  that  were  formed  when  the  new  capital  wsa 
<^t6d;  also  that  the  remaining  £50,000  of  Imperial  Four  per  Cent. 
I^bentores  has  been  obtained  and  applied  to  the  reserve  fund  in  terms  of 
ie  proprietors'  resolution  of  the  12  th  of  July,  1858.  The  directors  have 
^  deprived  during  the  half-year  of  the  co-operation  of  two  of  their 
•  •  and  esteemed  coUeagues  by  the  resignation  of  Charles  Edward  Mangles, 
Ssq.,  and  the  death  of  Thomas  Toung,  Esq. ;  these  vacancies  have  been 
poTirlonally  filled  by  the  nomination  of  Charles  Henry  Mills,  Esq.,  and 
^ir  Henry  Watson  Parker ;  the  former  a  member  of  the  firm  of  Messrs. 
•^ijB,  Mils,  Currie,  and  Co.,  and  the  latter  long  and  iiifluentially  con- 
^fe<^i  with  the  colony  of  New  South  Wales,  and  with  banking  in  Sydney. 
^ci  gnitlemen,  in  accordance  with  the  terms  of  the  deed  of  settlement, 
»'^  Ktiie  and  offer  themselves  for  election.  The  profits  for  the  half-year, 
a«  shovn  by  tiie  subjoined  statement  of  accounts,  have  enabled  the  direo- 
^n  todedare  a  dividend  of  £2.  fis.  per  share,  after  which  there  remains  a 
.Wawe  (A  £1,320.  9».  7d.  to  carry  forward.  The  dividend  will  be  payable 
^  loiuiQD  on  the  17th  January,  free  of  income-tax,  and  in  the  colonies  as 
■oon  as  the  inspector  shall  fiat  after  receipt  of  advices." 

UABILITISB. 

Ciitaktum... 

l^'pofits     

^Uls  payiUe  and  other  UaHlities  (indading  leseryes  held 

•ifainstdoBbtftil  debts)        

ManceofmidiTided  profit         

f**«"«"»*        

J^Y^ttMwaemaocwmt         

™JP«»««Wierve  account 

~  ***  •••  •.•  a*.  •••  ..•  ••■  ••• 


£492,090  0 
2,631,879  16 

0 
6 

845,940  13 

118,128  12 

250,000  0 

76,000  0 

75,000  0 

1,250,000  0 

3 
3 

0 
0 
0 
0 

£5^737,539    1  11 


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140 


Union  Bank  of  Australia. 


ASSETS. 

Specie  on  hand,  and  cash  balances       

Bullion       

Bank  premises  and  property      

Government  securities  (British  and  Colonial)... 
Local  bills,  bills  receivable,  and  other  securities 
Instalments  on  new  shares  payable  in  the  colonies 
Beserve  fund,  invested  as  per  statement 


BTATEMENT  OF  PROFITS. 

Balance  of  undivided  profits  at  30th  June,  1864 
Out  of  which  a  dividend  was  declared  of  £95,000 ;  and  inter- 
est on  new  shares  paid  £5,005.  I2s,  ld» 

Leaving  a  balance  of  

Profits  of  the  past  half-year,  after  making  provision  for  all 
bad  and  doubtful  debts,  £160,896.  16«.  10c2;  profits  on 
shares  sold  £5,427.  12«.— £166,324.  Ss,  \0d.\  less  remu- 
neration to  the  local  directors,  and  salaries  and  allow- 
ances to  the  colonial  staff,£3 1,406.  l^.ld.;  general  expen- 
ses in  the  colonies,  including  rent,  taxes,  stationery,  &c., 
£12,854.  lis.  Id.;  remuneration  to  the  board  of  directors, 
salaries  of  London  office  staff,  rent,  taxes,  stationery, 
and  general  expenses,  £6,442.  9«.  Id;  income  tax,  £1,800 
£52,503.  19*.  3d      

Balance  of  undivided  profits  at  this  date        

SBSERYB  JfUTXD, 

New  Zealand  Imperial  4  per  cent,  debentures  

Colonial  6  per  cent,  debentures 


£807,977  14 

34,259  3 

912,282  9 

.   139,500  0 

,  3,590,239  15 

3,280  0 

.   250,000  0 

0 
6 
4 

0 

1 
0 
0 

£5,737,539  1 

11 

.  £104,313  14 
.   100,005  12 

9 

1 

£4,308    2     8 


£113,820 

9 

7 

£118,128 

12 

3 

£200,000 
60,000 

0 
0 

0 
0 

£250,000 

0 

^ 

The  Chairman  said — ^I  have  very  few  obseryations  to  trouble  you  with 
in  explanation  of  the  report  which  you  have  just  heard  read.  To  vindicate 
a  want  of  success  generally  requires  a  considerable  amount  of  eloquence, 
whereas  the  features  whidi  our  balance-sheet  presents  to  you  Apeak 
for  themselves,  and  render  but  little  comment  on  my  part  necessary. 
It  is  with  much  pleasure  that  I  am  able  fully  to  endorse  the  statement 
made  by  the  directors  with  regard  to  the  soundness  of  the  assets  of  the 
bank.  (Hear,  hear.)  During  the  twelve  years  that  I  have  had  the  honour 
of  holding  a  seat  in  this  direction,  I  have  never  known  the  various  points 
of  danger  so  carefully  and  thoroughly  guarded  by  ample  reserves  as  they 
are  on  the  present  occasion.  (Hear,  hear.)  As  this  is  the  first  half-year 
in  which  the  working  of  the  additional  capital  is  shown,  it  is  satisfadbory 
to  your  directors  to  have  it  in  their  power  to  exhibit  so  good  a  balance- 
sheet,  not  only  as  justifyino;  their  policy  in  applying  to  you  for  an  increase 
of  capital,  but  as  refuting  the  arguments  of  many  of  our  shareholders 
who  looked  forward  to  diminished  dividends  as  a  consequence  of  that  in- 
crease of  capital.  (Hear,  hear.)  This  success  is  mainly  attributable  to 
the  able  and  judicious  manner  in  which  the  managers  of  the  different 
branches,  under  the  auspices  of  our  chief  inspector,  Mr.  Mcmullen,  whom 


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Union  Bank  of  Auafralia.  141 

I  can  most  oorrectly  describe  as  being  actuated  by  the  single  desire  of 
promoting  the  prosperity  of  the  institution  over  which  he  presides,  have 
carried  out  the  policy  of  the  board.     (Cheers.)     Now,  the  policy  which  the 
board  in  Londou  has  always  pressed  upon  its  officers  abroad  has  been  that 
ol  caution  and  safety  in  preference  to  large  profits — keeping  the  assets  of 
the  bank  in  a  lively  and  convertible  shape,  as  much  as  possible  free  from 
sll  "locks  up,"  and  to  this  course  of  policy  Mr.  Macmullen  has  steadily 
adhered.    (Hear,  hear.)     We  have  now  before  us  the  history  of  the  work- 
ing of  this  large  bank  for  nearly  twenty-seven  years ;  and  I  may  safely 
say  that,  during  all  that  period,  the  working  has  been  characterised  by 
alintist  unvarying  prosperity  ;  and  I  need  hardly  tell  you  that,  during  my 
twelve  years'  exx>erience  we  have  distributed  among  the  proprietors  very 
large  dividends  indeed.     (Hear,  hear.)    As  to  the  future  of  the  bank,  1 
have  no  fear  whatever.     1  can  speak  iTom  personal  knowledge  of  the  vast 
and  fertile  area  of  the  colonies  with  which  we  trade,  and  of  their  almost 
unlimited  resources,  tenanted  as  they  are  by    an  energetic  population, 
yearly  increasing,  and  producing  as  they  do  the  greatest  amount  of  ex- 
portable wealth  in  the  smallest  compass,  in  the  form  of  wool  and  precious 
metals,  with  which  they  supply  the  world.     Such  being  my  sanguine  views 
with  r^ard  to  the  future  of  the  group  of  colonies  with  which  we  trade,  I 
canBot  but  feel  hopeful  as  to  the  prospects  of  a  bank  which  aids  by  its 
capital  and  credit  in  the  creation  and  distribution  of  this  wealth  ;  always 
assuming  that  the  same  caution  and  prudence  which  have  hitherto  marked 
the  counsels  of  the  institution  be  steadily  persevered  in.     (Cheers.)     I 
have  to  notice  with  sincere  personal  regret  the  retirement  from  our  board 
of  my  esteemed  friend  Mr.  Charles  Mangles,  who  had  been  with  us  from 
the  commencement  of  the  operation  of  the  bank.    You  will  also  have 
heard  with  regret,  as  we  ourselves  did,  of  the  death,  full  of  years,  of  our 
esteemed  colleague  Mr.  Thomas  Young.     The  regrets  which  the  loss  of 
these  gentlemen  has  occasioned,  however,  are  mitigated  by  the  selections 
whi<^  the  board  has  made  to  fill  up  the  vacancies,  and  tht^  accession  to  our 
"body  i4  two  gentlemen  of  character,  position,  and  banking  experience, 
with  whom  we  shall  always  feel  pleasure  in  co-operating,  and  from  whose 
counsels  we  expect  to  derive  very  great  advantage  to  the  bank.     (Hear, 
hear.^    In  moving,  "  That  the  report  and  balance-sheet  be  printed  and 
carcolated  among  the  proprietors,''  I  have  only  to  add  that  I  shall  be 
happy  to  answer  any  questions  that  may  be  put  to  me,  relative  to  the  af- 
fiairB  of  the  institution,  to  the  best  of  my  ability. 

Mr.  Wilkinson  agreed  in  what  the  chairman  had  said  as  to  the  working 
of  the  bank,  because  with  more  of  their  own  and  less  of  other  people's 
capital  they  had  made  an  increased  sum  of  money.  It  was  always  desirable 
to  have  their  capital  well  up  in  proportion  to  their  liabilities.  He  looked 
upon  the  state  of  the  accounts  as  satisfactory. 

Mr.  Jophson  remarked  that  although  they  were  met  as  a  society  of 
friends  they  ought  not  to  separate  like  a  meeting  of  Quakers.  They  had 
to  congratulate  not  only  the  board  of  directors  but  themselves  upon  the 
present  jKisition  of  the  bank.  (Cheers.)  It  was  certainly  emphatically  a 
great  bank,  and  he  had  reason  to  believe  that  it  was  conducted  upon  moral 
principles  .of  the  highest  character.  (Hear,  hear.)  Some  twelve  months 
igo  they  met  under  rather  different  circumstances,  and  were  not  quite  so 
unanimous  as  they  were  that  day.  At  that  time  they  looked  upon  the  board 
as  hard  task-  masters  in  levying  a  £20  premium  on  the  new  shares ;  though 
he  did  not  mean  to  say  that  he  himself  regarded  them  exactly  in  that 

13 


VOL.  XXV 


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142  Union  Bank  qf  Australia. 

light;  still  Buch  was  the  feeling  then  expressed.  Bat  he  was  happy 
to  say,  and  he  thought  the  most  captious  objectors  were  now 
satisfied,  that  they  were  reaping  the  reward  of  that  tax,  if 
he  might  be  allowed  to  caU  it  so.  (Cheers.)  When  they  reflected  oa 
the  ordeal  which  this  and  similar  institutions  had  gone  through 
during  the  last  six  months,  he  considered  that  they  had  reason  to  be  higMy 
satisfied  with  an  18  per  cent,  dividend,  and  he  congratulated  the  share- 
holders ilpon  it.  (Loud  cheers.)  He  would  not  venture  to  caution  the 
board ;  but  he  would  take  the  Ubertv  of  reminding  them  that  there  was 
one  evil  which  he  feared  all  boards  of  directors  were  liable  or  prone  to — 
he  meant  extravagance,  or  rather  want  of  economy.  (A  laughV  He  was 
sure  there  was  no  one  in  the  room  who  grudged  the  directors  whatever  re- 
muneration  they  might  take.  They  were  worthy  of  it ;  and  he  hoped  the 
meeting  would  not*  disperse  without  passing  a  vote  of  thanks  to  them  and 
to  the  staff  in  the  colonies.  But  he  respectfully  submitted  that  the  ex- 
penses of  the  institution  had  always  seemed  to  him  to  be  large.  He  did 
not  mean  to  say  that  they  were  unnecessary,  and  it  was  of  course  impos- 
sible for  him  to  say  in  what  particular  department  economy  might  be  in- 
troduced ;  but  he  hoped  that  if  £1,000  could  be  saved  in  one  department, 
or  even  £100  in  another,  the  directors  would  not  miss  the  opportunity  of 
doing  so.  At  present  the  expenses  approximated  to  those  of  a  railway, 
being  upwards  of  45  per  cent. 

Mr.  Wilkinson — They  are  only  32.     (Hear,  hear.) 

Mr.  Jephson  was  obliged  for  the  correction,  and  proceeded  to  observe  that 
one  or  two  of  the  Australian  banks  had  resorted  to  the  practice  of  reoeiv. 
ing  money  upon  deposit.  He  wished  to  know  whether  the  directors  had 
considered  this  subject,  or  had  any  intention  of  following  the  example. 
He  also  drew  attention  to  the  recent  loss  of  an  Australian  gold  ship,  and 
inquired  whether  the  interests  of  the  Union  Bank  were  at  all  affected  by 
the  imfortimate  event. 

The  Chairman  replied  that  Mr.  Jephson,  in  referring  to  the  expenses, 
had  put  his  finger  upon  the  very  item  that  most  engaged  the  attention  of 
the  directors,  and  that  to  such  an  extent  that  amongst  their  rivals  and 
neighbours  thev  were  called  stingy.  (Heiu:,  hear,  and  a  laugh.)  His  own 
opinion  was,  that  there  was  no  true  economy  in  underpaying  efficient 
officers,  for  upon  them  essentially  depended  the  welfare  of  the  bank. 
(Hear,  hear.)  At  present  they  had  23  branches  and  240  officers ;  and 
unless  those  gentlemen  were  paid  well  there  would  not  be  such  results  as 
were  shown  in  the  balance-sheet  that  day.  (Hear,  hear.)  With  regard  to 
deposits,  he  was  not  then  in  a  position  to  give  an  answer  to  the  inquiry 
either  affirmatively  or  negatively.  The  question  had  its  difficulties,  but 
was  engaging  the  dose  attention  of  the  Erectors.  As  to  the  gold  ^ip 
he  was  happy  to  say  that  the  interests  of  the  bank  were  not  in  any  way 
affected  by  her  loss. 

A  proprietor  noticed  a  large  increase  in  the  item  '^  Bank  premises." 

The  Chairman  explained  that  four  houses  had  been  bailt  and  three 
partly  built,  at  a  cost  of  £2^,000^  and  remarked  that  with  a  continuous 
growth  of  the  bank  it  was  impossible  to  limit  the  growth  of  the  bank 
buildings.     (Hear.) 

Mr.  Wilkinson — Then  the  revenue  had  had  to  bear  about  half  of  it. 

The  Chairman — ^The  revenue  had  borne  no  part  of  it,  and  the  increase 
was  upon  the  whole  year,  not  the  half-year. 


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Union  Bank  of  Amtralia.  143 

The  motion  for  adopting,  printiiig,  and  oiroulating  the  report  waa 
agreed  to. 

The  Chairman  moTed  the  election  of  Mr.  Charles  Henry  Mills  as 
director. 

Mr.  Chapman,  without  questioning  the  qualifications  of  the  two  gentle- 
men  whom  the  directors  proposed  to  fill  up  the  vacancies  at  the  board, 
thought  there  was  one  gentleman  among  the  shareholders  to  whom  they 
must  all  feel  exceedingly  indebted  for  the  services  he  had  rendered  them 
on  eereral  previous  occasions ;  the  person  he  alluded  to  was  Mr.  Wilkin- 
son. (Hear,  hear.)  He  had  held  no  personal  communication  with  Mr. 
Wilkinson  upon  the  subject,  but  he  felt  grateful  to  him  for  his  vsduable 
advice  on  those  occasions,  and  he  had  hoped  that  considering  his  great 
financial  acumen  the  directors  themselves  would  have* come  forward  and 
recommended  him  to  a  seat  at  the  board.  (Hear,  hear.)  He  hoped  when 
next  an  opening  presented  itself  that  the  shareholders  would  bring  such 
pressure  to  beeur  upon  the  directors  that  they  would  themselves  request 
Mr.  Wilkinson  to  accept  the  offer. 

Mr.  Botley  concurred  with  Mr.  Chapman  as  to  the  eligibility  of  Mr. 
Wilkinson  for  a  seat  in  the  direction ;  but  said  it  would  be  an  unpleasant 
thing  to  propose  a  candidate  in  opposition  to  a  gentleman  who  came  re- 
commended  by  the  board.  He  trusted,  however,  that  eventually  the  share- 
holders at  large  would  consider  whether  it  was  not  for  •  their  interest  to 
infuse  a  little  fresh  blood  into  the  direction. 

The  Chairman  was  sure  that  it  waa  impossible  to  fulfil  the  hon.  proprie^ 
tor's  desire  to  infuse  fresh  blood  into  the  direction  better  than  by  the  selec- 
tion the  board  had  made  of  Mr.  Charles  Mills ;  and  the  hon.  proprietor  who 
first  spoke  must  have  a  very  limited  City  knowledge  indeed  (Mr.  Chap- 
man :  Very  true)  if  he  did  not  know  the  name  of  Mills  in  connection 
with  the  firm  of  Glyn,  Mills,  and  Co.  He  wished  to  speak  frankly.  It 
was  the  duty  of  the  directors  under  the  deed  to  select  Uie  men  they  con* 
sidered  best  for  the  interests  of  the  bank,  and  that  duty  they  would  ocm- 
tinue  to  discharge  fearlessly  and  faithfully,  as  they  had  hitherto  done  it. 
(Hear,  hear.)  They  felt  that  the  destinies  of  the  bank  entirely  depended 
upon  it,  and  that  unless  the  board  were  perfectly  harmonious  it  would 
be  useless  to  endeavour  to  bring  their  efforts  to  bear  upon  the  manage- 
m&xi  of  the  bank.  He  repeated  that  they  -^ould  perform  the  duty  com- 
mitted  to  them  by  the  deed  fearlessly  and  faithfully.  They  would  select 
the  men  they  considered  best  for  the  interest  of  the  institution ;  and  it 
was  for  the  proprietors  assembled  in  general  meeting  either  to  confirm  or 
reject  that  selection.    (Cheers.) 

Mr.  Wilkinson  having  seconded  the  motion,  the  nomination  of  Mr. 
Mills  was  agreed  to  nem.  con. 

The  Chairman  proposed  the  election  of  Sir  Henry  Watson  Parker  as  a 
director.  The  hon.  candidate,  he  remarked,  was  a  gentleman  of  large 
eolonial  experience,  and  had  been  chairman  of  a  sister  banking  institution 
in  the  ooloniee. 

Mr.  Hamilton,  in  presenting  a  requisition,  signed  by  twenty  share. 

holders  for  convening  a  specM  general  meeting  to  consider  the  propriety 

of  incr^iaiii^  the  remuneration  of  the  directors,  as  an  act  of  justice  to 

those  irentlemen  for  havinjj  conducted  the   affairs  of  the  bank  so  effi- 

flfflitIvMi<J  that  the  present  capital  of  the  company  amounted  to  a  sum 

ndJrahly  ^  excess  of  the  paid-up  capital  of  any  one  of  the  large  joint- 

1^^  bank^g  companies  that  were  now  carrying  on  business  in  this 


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144  Union  Bank  of  Australia. 

country.  This  capital,  moreover,  had  to  be  employed  in  distant  countries, 
where  competition  was  great,  where  deix)sit8  were  comparatively  limited, 
where  the  results  of  trade,  industry,  and  enterprise  were  somewhat  pre- 
carious, and  where  banking  business  was  attended  with  special  difficulties. 
Altogether,  the  duties  that  devolved  upon  the  board  in  various  ways 
were  of  a  very  onerous  character.  Now,  from  1845  to  1852  the  remunera- 
tion voted  to  the  board  was  £2,000  a  year ;  but  in  1852  it  was  increased 
to  £3,000,  and  the  arrangement  made  with  reference  to  that  amount  by 
the  directors  themselves  was  that  the  managing  director  should  receive 
£1,000  a  year,  and  that  £2,000  a  year  should  be  divided  among  the  eleven 
ordinary  directors.  In  1859  there  was  a  further  increase  vot^  of  £500  a 
year,  but  the  effect  of  that  addition  was  not  to  alter  the  position  of  the 
ordinary  director5,«but  to  augment  the  salary  of  that  most  valuable  officer, 
Mr.  Cumings,  the  chairman  of  committees.  The  arrangement  so  made 
existed  at  l£e  present  day.  Mr.  Cumings  received  £1,500  a  year  and  his 
eleven  colleagues  divided  £2,000  a  year  amongst  them.  That  was  a  little 
more  than  £180  each,  the  sum  voted  to  them  in  1852,  when  the  colonial 
business  of  the  bank  was  confined  to  eleven  branches,  and  the  paid-up 
capital  to  £820,000,  whereas  there  were  now  23  branches  scattered  over 
the  various  Australian  colonies  and  New  Zealand,  and  the  dividend  had 
to  be  paid  upon  a  capital  amounting  to  £1,250,000.  Under  these  cir- 
cumstances, he  submitted  that  the  time  had  arrived  for  increasing  this 
inadequate  remuneration.  (Hear,  hear,  and  No.)  He  termed  it  inade- 
quate, and  it  was  so  in  every  point  of  view.  It  was  inadequate  in  com- 
parison with  the  present  scale  of  salaries  allotted  to  the  directors  of  other 
compaoies  of  no  higher  standing  and  with  no  more  marked  success  than 
this.  It  was  inadequate  in  reference  to  the  duties  that  had  to  be  dis- 
charged ;  and  it  was  inadequate  as  an  inducement  to  gentlemen  of  ex- 
perience  and  judgment  to  come  forward  and  work  with  the  energy  and 
diligence  necessary  to  secure  success.  (Hear.)  If  the  requisition  to  call 
a  special  general  meeting  were  complied  with,  he  should  then  take  the 
liberty  of  submitting,  for  the  approval  of  the  shareholders,  that  the  vote 
for  the  directors  be  increased  by  the  sum  of  £1,300,  thus  making  a  total 
of  £4,800,  which  he  would  ask  them  to  recommend  for  distribution  into 
two  portions,  viz.,  £3,600  to  the  twelve  directors,  including  Mr.  Cumings, 
thereby  giving  them  £300  a  year  each,  and  £1,200  a  year  to  Mr.  Cumings 
exclusively  as  the  managing  director.  The  result  of  adopting  this  step 
would,  he  believed,  be  greatly  conducive  to  the  benefit  of  the  bank. 

Mr.  Brookes,  M.P.  (a  director),  said  that  the  duties  of  the  directors 
were  much  more  onerous  than  many  gentlemen  present  would  be  aware 
of.  They  required  the  attendance  of  some  members  of  the  board  every 
working  day  of  the  week ;  and  the  accounts  from  every  one  of  their 
numerous  branches  had  to  be  examined  thoroughly  before  holding  the 
general  meetings.  In  short,  no  one  outside  the  establishment  could  form 
a  conception  of  the  amount  of  business  that  was  done  there.  At  his  time 
of  life  it  was  not  very  probable  that  he  should  continue  many  years  to  be 
associated  with  the  board ;  but  he  thought  it  was  only  fair  that  the  gen- 
tlemen who  might  come  after  him 'should  be  well  paid.  In  his  opinion 
there  was  not,  for  the  amount  of  work  performed,  a  single  board  of  direc- 
tors so  badly  paid  as  that  of  the  Union  Bank  of  Australia.  (Hear,  hear, 
and  a  laugh). 

Mr.  Ciunings  said  that  as  his  name  had  been  mentioned,  as  he  happened 
to  be  the  only  director  who  was  adequately  paid,  and  as  he  looked  for  no 


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London  ami  Brazilian  Bank,  Limited.  145 

incRised  payment,  but  would  he  contented  with  less  if  the  ahareholders 
t]»3gbt  proper — (cries  of  *^No'') — ^he  begged  to  state  that  it  was  his 
tasroB^  oonviction  that  were  it  not  for  the  strength  of  the  inter&st  the 
Arecton  felt  in  the  concem,  it  would  be  unreasonable  to    expect  them  to 
dert.^  the  business  powers  they  possessed  to  the  affairs  of  the  bank,  and 
Ld*  to  feel  that  they  were  inadequately  paid.     For  his  owo  part,  he  would 
a^cb  rather  surrender  his  remuneration,  and  let  it  be  divided  amougst 
tile  'iirectoiB  at  large,  than  that  his  colleagues  should  continue  to  work  as 
^ey  had  done  without  adequate  pay.     (Loud  cheers.)    Economy  did  not 
ihra]3  consist  in  low  salaries.     Boards  who  rendered  voluntary  services 
were  seldom    useful    boards,    asd    clerks  who   were    underpaid   were 
seldom  valuable  clerks.      (Hear,  hear.)    As  a  matter  of  prudence  and 
eoonomy,  it  was  desirable  that  proprietors  should  feel  that  those  who 
worked  for  them  were  rewarded  for  their  labour,  otherwise,  by-aud-by, 
the  board  might  sink  in  the  public  estimation  to  a'd^ree  that  would 
i^oTe  hi^ily   injurious  to    the  interests   of  the  bank.     (Hear,  hear.) 
The   vord    "  pressure "  had    been  used  in   reference   to   the   appoint- 
ment of  directors,  and  he  thought  that   nothing  wotdd  be   more  cal- 
culated   to   injure  that   interest   than  to  press   upon    the  board    any 
person  whom  they,  having  the  power  of   selection,  had  not  themselves 
reoommended.    (Hear.)  In  making  a  selection  the  board  always  chose  the 
best  man,  be  he  whom  he  might,  and  at  such  meetings  as  this  they  came 
before  the  proprietors  on  their  trial.     If  they  had  not  selected  good  men, 
the  shareholders  had  the  power  of  rejecting  thom,  and  making  them  go 
back  and  select  others.    And  when  that  power  was  exercised  the  share- 
holders would  show  what  real  substantial  ground  they  had  for  objecting  to 
the  men.     Speaking  on  his  own  behalf,  he  would  sav  for  one  of  the  new 
<£rectors,  Mr.  MiUs,  for  Sir  Henry  Parker  had  only  just  joined  them,  that 
a  more  active  and  attentive  director,  one  that  exhibited  more  astute  in- 
teiligcnoe  in  the  work  he  had  to  perform,  or  that  rendered  more  valuable 
serrioea  to  the  bank,  had  never  set  at  the  board.    (Cheers.) 

Kr.  Botley  believed  that  there  was  no  fear  of  the  shareholders  ever 
withholding  their  support  from  anything  that  was  proposed  by  the 
difeeion  here ;  and  in  seconding  the  nomination  of  Sir  Henry  Parker  he 
begged  to  say  that  he  had  been  assured  by  a  friend  who  had  a  large  stake 
in  ih&  Australian  colonies,  and  was  a  member  of  parliament,  that  Sir 
Heoiy  Parker  had  great  colonial  knowledge,  and  was  othervdse  a  very  lit 
naaa  to  occupy  a  seat  at  the  board.  (Hear,  hear.) 
Tbe  motion  was  agreed  to,  and 

The  Secretary  having  read  a  notice  that  the  dividend  of  £2.  5^.  a  share, 
free  of  income  tax,  wovdd  be  payable  on  and  after  the  17th  inst. 

A  vote  of  thanks  was  carried  by  acclamation  to  the  chairman,  directors, 
and  officers  in  London  and  the  colonies  for  the  able  manner  in  which  they 
had  cmiducted  the  affairs  of  the  bank. 


LO^nyON  AND  BRAZILIAN  BANK,  LIMITED. 
'Pmr«.»/>»/f  Annual  ironeral  meeting  was  held  on  the  9th  January,  at  the 
T^^arOT  •  Mr.  J.  White  Oater  in  the  chair. 
%!^^W'report  was  taken  as  read.    It  said  :^ 
JoJ^^Sm-ofit^o^  the  haM-year  ending  June  80, 1864,  amounts  to 
M  ^M  Ud^      ^^*  ^  *^  *^®  directOTB  propose  to  pay  a  dividend, 

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146  London  and  Brazilian  Sank,  Limited. 

free  of  i&oome-taz,  of  £1.  4«.  per  share,  amoimtiiig  to  £16,600  (equal  to 
interest  (m  the  paid-up  capital  after  the  rate  of  6  per  cent,  per  annum), 
and  to  carry  forward  the  halance  of  £9,104. 12s.  lid.  to  the  next  account. 
The  intention  of  the  directors  was  to  have  recommended  an  increased 
dividend,  but  in  consequence  of  the  late  important  failures  at  Rio  de 
Janeiro,  it  is  deemed  more  prudent  to  carry  over  a  large  balance,  and  to 
make  the  distribution  proposed.  The  opportune  arriyal  in  England 
of  Mr.  Saunders  from  the  Bio  branch,  simultaneously  with  the  an- 
nouncement of  the  severe  crisis  in  that  city,  not  only  afforded  (he 
directors  the  gratifying  intelligence  of  the  satisfactory  position  of  that 
branch,  but  also  that  the  losses  were  likely  to  be  much  less  than  at  first 
anticipated,  and  there  is  every  reason  to  hope  that  these  will  be  more  than 
compensated  by  diminished  competition,  and  the  general  improvement  of 
the  business  of  the  bank.  By  the  last  advices  from  the  branches,  the 
directors  are  happy  to  say  the  operations  of  the  bank  are  progressing  most 
satisfactorily.  They  are  also  glad  to  report  a  steady  increase  of  business 
in  Portugal.*' 

The  Chairman  oongratulated  the  shareholders  on  the  proceedings  of  the 
half-year  ending  30th  June  last.  The  business  of  the  bank  during  that 
period  had  considerably  increased.  The  gross  profit  made  in  the  previous 
half-year  was  £34,000  against  £41,000  in  the  half  year  now  under  con- 
sideration, being  an  increase  of  £7,000.  The  charges  in  the  mean  time 
had,  however,  increased  to  about  £7,000  in  the  half-year  ending  June, 
1864,  from  about  £4,000  in  the  previous  half-year,  CM:  this  increase  be- 
tween  £1,400  and  £1,500  had  arisen  from  a  cause  not  to  be  regretted,  viz., 
the  additional  amount  paid  for  income-tax,  £200  from  other  additional 
taxation,  and  £1,400  from  what  he  might  consider  extraordinary  outlay, 
viz.,  £800,  the  reward  paid  to  an  officer  of  the  bank  who  had  resigned  to 
enable  them  to  reduce  their  expenses  at  Oporto,  and  which  wotdd  there- 
fore come  back  to  them  in  the  shape  of  expenses  saved  in  future  years, 
the  balance  of  this  extraordinary  outlay  being  for  furnishing  the  house 
and  offices  of  the  bank  at  Lisbon.  Although  the  net  amount  with  which 
they  had  to  deal  was  equal  to,  not  quite  but  very  nearly,  a  dividend  at  the 
rate  of  10  per  cent.,  he  believed  that  the  course  which  the  directors  r&. 
oommended  was  healthy,  aud,  in  the  position  in  which  the  bank  stood, 
necessary.  As  they  were  aware,  the  capital  of  Rio  had  recently  been 
visited  by  one  of  the  severest  money  panics  that  had  perhaps  ever  taken 
place,  the  failures  during  three  days  having  amounted  to  between 
£10,000,000  and  £12,000,000,  and  it  was  only  the  caution  and  prudence 
tiie  board  had  always  exercised  of  looking  not  so  much  to  present  divi- 
dend as  to  the  permanent  interests  of  the  conceru,  or  in  other  words, 
more  to  principle  than  what  might  be  deemed  expediency,  that  they  had 
escaped  as  well  as  they  had.  Therefore,  when  they  proposed  to  pay  only 
a  6  per  cent,  dividend,  carrying  over  £9,100,  which  would  remain  as  a 
fund  towards  guaranteeing  or  paying  off  any  losses  that  might  have 
occurred  in  consequence  of  the  crisis,  he  submitted  that  they  were  adopt- 
ing the  wisest  course.  (Hear,  hear.)  He  wished  he  could  say  that  that 
£9,000  would  be  likely  to  cover  all  the  losses  they  would  have  to  meet. 
He  believed  that  it  would  cover  very  nearly  all  the  loss  at  Rio ;  but  they 
had  made  a  loss  of  between  £3,000  and  £4,000  at  Pernambuco,  for  which 
it  would  be  necessary  to  provide.  Notwithstanding  these  losses,  however, 
the  directors  were  glad  to  be  able  to  state  that  the  bank  had  never  stood 
in  a  higher  position.     It  had  during  a  period  of  almost  unparalleled 


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London  and  Brazilian  Bank,  Limited.  147 

difficolty  been  enabled  to  meet  all  calls  upon  it.  Since  the  panic  its  busi. 
neaa  had  largely  increased,  and  withoat  presuming  to  iudulge  in  prophe- 
cies or  make  promises  as  to  the  future,  he  felt  fidly  justiiied  in  saying 
that  its  prospects  looked  remarkably  well.  In  conclusion,  he  read  an 
extract  from  a  communication  from  the  inspector  at  Bio,  dated  7th  De- 
cember,  describing  the  evident  improvement  which  had  taken  place  in 
the  bnaness  of  the  bank  since  the  previous  mail,  adding  that  many  new 
aoooants  had  been  opened,  and  that  if  the  concern  was  managed  with 
pvudenoe  a  very  splendid  future  was  opening  up  for  it. 

The  Chairman  moved  a  resolution  adopting  thoj  report  and  confirming 
the  dividend. 

A  Shareholder  inquired  whether  the  loss  stated  by  the  chairman  in- 
cluded all  that  had  resulted  to  the  bank  from  the  monetary  crisis  in  the 
Brazils. 

The  Chairman — So  far  as  we  can  at  present  estimate  it,  the  entire  loss 
at  Bio  will  not  exceed  £10,000.  The  only  other  loss  we  have  incurred  is 
one  of  £3,400  upon  a  cotton  bill  at  Pemambuoo.  The  government  of 
Brazil  passed  a  bill  in  consequence  of  the  crisis  stopping  all  legal  proceed- 
ings  on  account  of  liabilities  for  sixty  days ;  and  it  tells  much  for  the 
credit  of  the  people  of  Kio,  that  we  had  not  a  single  defaulter  during  the 
whole  of  that  period.     (Hear,  hear.) 

Mr.  White,  referring  to  the  oscillation  in  the  market  price  of  the  shares 
of  late,  said  he  had  been  informed  that  it  was  mainly  occasioned  by  the 
extensive  speculative  ox>erations  of  one  of  the  directors,  Mr.  Bischoffsheim, 
who,  it  was  alleged,  used  information  obtained  by  hun  as  a  director  or 
privately  in  influencing  the  market  fpr  his  own  personal  benefit,  and  to 
the  disadvantage  of  the  general  body  of  the  shareholders.  Shortly  before 
the  news  of  the  financial  crisis  at  Kio  the  shares  stood  at  21,  or  11  pre- 
mium, at  which  sales  were  pressed,  and  suddenly  they  fell  to  6  discount, 
at  which  for  some  time  they  were  not  saleable.  He  himself  had  purchased 
50  ehares  at  the  high  premium,  and  although  the  transferror  was  not  Mr. 
Biadioffiiheini,  he  had  reason  to  believe  they  formed  a  portion  of  those 
whidi  had  been  held  by  that  gentleman. 

The  Chairman  was  very  sorry  that  a  discussion  upon  such  a  subject 
should  have  arisen,  but  although  he  did  not  like  to  see  a  director  dabbling 
in  the  shares  of  the  company,  and  putting  them  up  or  down  at  his  pleasure, 
he  should  be  eorry  to  admit  that  a  director  was  debarred  from  the  privi- 
lege  which  every  other  shareholder  possessed,  of  buying  or  selling  shares 
as  he  thought  proper.  At  the  same  time  he  agreed  with  Mr.  White  that 
it  was  most  improper  for  a  director  to  use  information  which  he  might 
receive  as  a  member  of  the  board,  and  before  it  was  generally  known,  for 
the  purpose  of  biassing  the  market  for  his  own  advantage,  and  he  hoped 
that  no  member  of  that  board  had  ever  done  so. 

llr.  White  admitted  that  directors  had  the  same  right  to  so  into  the 

market  and  buy  and  sell  shares  as  the  other  shareholders  had,  but  con- 

kaded  that  they  had  no  right  to  avail  themselves  for  that  purpose  of  in- 

/onnstion  which,  as  members  of  the  board,  they  might  receive,  to  the 

OCTodioe  of  the  other  shareholders  or  of  the  public. 

Mr  Nelson  thought  some  explanation  was  due  to  the  meeting  from  Mr. 

Bucho&heini   and  that  if  such  transactions  had  taken  place  as  Mr.  White 

haA  noketa  oU  8*®P*   ^^o'^^i  ^  taken  effectually  to  prevent   their  re- 

^^'^^^acboi^^^^  said-The  only  reply  I  shall  make  is,  that  I  shall  be 


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148  London  and  Brazilian  Bank,  Limited. 

very  happy  to  give  up  the  very  arduoua  duty  which  at  preeeut  devolTes 
upon  me  in'  connexion  with  the  directorate  of  this  bank,  if  such  be  the 
desire  of  the  shareholders.  If  I  have  ever  dealt  in  the  shares  of  the  bank 
— as  I  admit  I  have— it  has  always  been  with  a  view  of  benefiting  the 
company  generally,  and  not  for  my  own  personal  advantage. 

A  Shareholder  said  he  had  purchased  40  shares  at  24  premium ;  he 
had  seen  them  since  at  10  discoimt.  That  wa^,  he  knew  a  person  who, 
in  a  moment  of  fright,  sold  at  that  price.  He  did  not  mind  losing  his 
money,  but  he  did  not  like  to  have  his  property  made  ducks  and  drakes 
of  by  a  director  who  used  the  information  which  he  obtained  officially  to 
get  the  shares  up  to  a  high  price  and  then  selling  them,  with  a  view  of 
buying  them  back  at  a  very  low  price,  and  who  at  some  future  time  could 
UHe  information  reaching  him  in  the  same  way  to  reduce  the  market 
value. 

The  Chairman  said  that  so  far  as  his  memory  served  him,  he  could 
state  that  the  telegram  received  at  the  office  announcing  the  financial 
crisis  at  Rio  was  anything  but  decisive  in  so  far  as  it  ought  to  have  in- 
fluenced  the  market  price  of  the  shares.  It  reported  that  in  regard  to  the 
bank  everything  was  satisfactory.  The  fall,  no  doubt,  arose  not  from  any 
information  from  the  office,  but  from  the  panic  which  always  followed  the 
news  of  such  a  crisis.  He  might  add  that  although  the  telegram  stated 
that  everything. in  regard  to  the  bank  was  satisfactory,  he  thought  at  the 
time  that  it  would  be  necessary  to  make  a  call  in  order  to  meet  the  pres- 
sure which  was  likely  to  come  upon  them.  Not  only  had  that  necessity 
been  avoided,  but  he  was  happy  to  say  that  the  bank  never  stood  higher 
than  it  did  at  the  present  moment,  or  promised  with  more  certainty  to 
reward  those  who  had  embarked  capital  in  it. 

Mr.  Vilmage  bore  testimony  to  the  exertions  of  Mr.  Bischoffsheim  in 
furtherance  of  the  interests  of  the  London  and  Brazilian  Bank,  and  con- 
tended that  the  fall  in  the  value  of  the  shares  was  the  natural  result  of 
the  reports  of  failures  to  so  large  an  extent  having  occurred  at  Rio.  He 
knew  personally  that  Mr.  Bischoffiiheim  had  discouraged  his  friends  and 
others  from  purchasing  when  the  shares  stood  at  the  high  premium.  He 
regarded  the  attack  upon  that  gentleman,  who  was,  he  believed,  the 
largest  shareholder  in  the  company,  and  had  done  all  he  could  to  promote 
its  interests,  as  most  unjustifiable  and  unwarranted. 

In  reply  to  questions,  it  was  stated  that  shares  were  quoted  on  the 
Stock  Exchange  immediately  before  the  news  of  the  financial  crisis  at 
Rio  reached  this  country  at  from  8  to  10  premium,  and  that  Mr.  Bis- 
choffsheim still  held  281  shares  in  the  company,  besides  a  much  larger 
number  held  by  his  family  and  friends. 

A  Shareholder  suggested  that  a  committee  should  be  appointed  to 
inquire  into  the  charge  against  Mr.  Bischoffsheim. 

The  Chairman,  after  speaking  to  Mr.  Bischoffsheim,  said  that  that 
gentleman  objected  (as  he  himself  did)  to  a  committee,  but  was  willing  to 
afford  Mr.  White  or  any  other  shareholder  every  facility  for  the  most 
searching  investigation  as  to  any  transfer  of  shares  made  by  or  to  him. 
He  did  not  think  that  if  a  person  was  over  anxious  to  buy,  a  director  was 
to  be  blamed  for  selling  at  21,  although  his  opinion  might  be  that  the 
shares  were  not  worth  so  much. 

Mr.  Bohn  remarked  that  that  might  be  all  very  well  in  the  abstract, 
but  it  was  to  be  remembered  that  when  a  director  sold  or  bought  largely 
it  was  sure  to  influence  the  market. 


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Union  Bank  of  London,  149 

After  aome  further  observations  the  discussion  dropped,  and  the  motion 
/oraiiopting  the  report  and  afldrming  the  dividend  of  £i.  4s.  per  share, 
free  of  income-tax,  was  then  seconded  by  Mr.  Alexander  (director),  and 
carried  anaDiinously. 

The  directors  and  auditors  retiring  by  rotation  were  re- elect etl,  and  the 
Qsual  vote  of  thanks  to  the  chairman  and  directors  was  accorded ;  in  re- 
plying  to  which,  the  chairman  expressed  his  satisfaction  at  the  progress 
acid  pixMpects  of  the  Portuguese  branches. 


UNION  BANK  OF  LONDON. 


The  half-yearly  meeting  of  the  proprietors  of  tliis  bank  was  held  on  the 
11th  o£  January,  at  their  house  in  Princes-street,  City.  Mr.  P.  N.  Laurie 
in  the  chair. 

The  Assistant  Secretary,  Mr.  O.  Beville,  in  the  absence  through  illness 
of  iLr.  Newmarch,  the  secretary,  read  the  following  reix)rt  and  statement 
of  accoDuts : — 

"  The  directors  have  to  report  that  the  net  profits  of  the  bank  for  the 

fdx  months  ending  1^1  st  December  last,  after  payment  of  all  charges  (in- 

clu<hng  the   sum  of   £164,375  \2s.  4c/.  for  interest  paid  and  due  to  cus- 

toraeiti  on  their   current  and  deposit  accounts),  and  making  ample  pro- 

vLM'»n  for  all  ha^l  and  doubtful  debts,  amount  to  £180,ll;5  2h.  11^/.,  wliich, 

with  £3<>3    Ct.  2il.  brought  forward    from  30th  June  bust,  amount    to 

£180,558  iU.  Id.     The  directors  now  declare  a  dividend  for  the  litst  six 

months  at  the  rate  of  15  per  cent,  per  annum,  and  a  bonus  of  2^  per  cent. 

on  the  increased  paid-up  capital,  being  at  the  rate  of  20  ]i)er  cent,  per 

annum,  clear  of  income  tax.     The  20,000  new  shares  issued  imder  the 

antbority  of    the  special  general  meetings  held   in  July  last,  were  all 

claimed  by  the  proprietors,  excei)t  65  shares  ;  and  in  order  to  complete 

the  capital,  the  direct«:)rs  have  debited  tlie  prolits  of  the  half-year  with 

£1,050,  the  amount  of  such  unclaimed  shares.     In  accordance  with  the 

resiilatioDs  of  those  special  general  meetings,  the  paid-up  capital  of  the  bank 

has  been  thus  raised  from  £900,000  to  £i,200,0<H),  and  the  reserved  fund 

from  £67,000  (the  amount  at  which  it  stotxl  in  July  last)  to  £300,000,  by  the 

addition  of  £233,000,  part  of  the  amount  received  from  premiums  on  the 

new  shares.     The  directors  are  of  opinion  that  the  reserved  fund  is,  for 

the  present,  adequate  in  amount,  and  they  have  therefore  ai)propriated 

the  balance  of  the  premiums  on  the  new  shares,  amoimting  to  £07,000 

towards  a  buildings  investment  account.    After  payment  of  the  dividend 

and  bonus,  amounting   together   to    £119,182  10«.,  and   appropriating 

£67,000,  received  from  premiums,  to  the  buildings  investment  accoimt, 

there  will  remain  a  balance  of  £61,375  19«.  Id.  to  be  carried  forward  for 

appropriation  at  the  end  of  the  financial  year  in  July  next.     The  directors 

recommend  that  the  66  unclaimed  shares  should  be  placed  at  their  disposal, 

to  enable  them  to  apply  the  dividends  in  the  temporary  relief  of  some  of 

*u^4>  n«-o>tf>nt  and  unforseen  cases  of  pressure  from  illness,  which  occasion- 

l3^^<^  amongst  the  clerks  m  the  establishment." 


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150  Union  Bank  of  London. 

Qevsiul  Bai^scb. 

LlABILinSS. 

Capital— £10  per  share  paid  up  on   6l),000  shares  £500,000  ; 
£5  per  share  added  out  of  reserved  profits  £300,000  ;  £16 
per  share  paid  up  on  20.000  shares,  1864,  £300,0i»0        ...  £1,200,000  0  0 
Dae  D7  the  bank  on  current  accounts,  deposit  receipts  (inclu- 
ding interest  accrued),  and  other  obligations       18,807,393  3  7 

Reserved  fund,  invested  in  Consols,  as  per  contra      300,000  0  o 

Buildings  investment  pccount 67,000  0  0 

Rebate  on  bUls  not  due 47,302  4  2 

Balance  at  credit  of  profit  and  loss        180,558  9  1 

£20,602,253  16  10 


ASSB^. 

Gash  in  the  bank  £873,527  2i.  Id.;  cash  in  Bank  of  England 

£600,778.  6«.  lOtf?.;  cash  lent  at  caU  £1,058,000 £2,532,305    9    6 

Inyestments  in  Government  stock.  Exchequer  bills.  Deben- 
tures, &c 1,227,003    9     6 

£337,078.  13#.  Consols,  reserved  fund     300,000    0    0 

Bank  premises  consisting  of  freehold  buildings  in  Princes  st., 
fusion  House  street,  Argyll  place,  j<ioet  street,  and 
Chancery  lane ;  and  lease  and  fixtures  of  No.  4,  Fall 
Mall  East        183,491  13     0 

Loans,  bills  discounted,  &c.         ...         16,359,453    4  11 


Profit  jlhd  loss  aocoaNT. 
Dr. 
Dividend  at  the  rate  of  15  per  cent,  per  annum 
Bonus,  2|  per  cent.  


Balance,  being  undivided  profit  carried  forward  to  next  half 
year     


Cr. 

Profit  unappropriated  on  June  30, 1864  £363    6    2 

Amount  of  net  profit  of  the  half-year  ending  Deo.  31,  1864, 
after  deducting  all  expenses  and  interest  paid  and  due 
(£164,375.  12«.  4(<.},  allowed  to  customers  on  their  cur- 
rent and  deposit  accounts     180,195    2  11 


£20,602,253  16 

10 

..      £89,386  17 
29,795  12 

6 
6 

£119,182  10 
61,375  19 

0 

1 

£180,558    9 

1 

£180,558    9     1 


The  Chairman  said  it  became  his  duty,  on  behalf  of  the  directors,  to 
declare  a  dividend  for  the  past  half-year  of  15  per  cent,  per  annum,  and  a 
bonuB  of  2^  per  cent,  free  of  income  tax,  payable  on  and  after  Friday,  the 
20th  January.  He  had  next  to  move  the  reception  of  the  reix>rt,  and  he 
thought  that  on  behalf  of  the  directors  he  might  fairly  congratulate  them  on 
the  balaDoe-sheet  which  they  were  able  to  preaent  (hear,  hear),  enabling 


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Union  Bank  of  London,  151 

them  to  pay  a  proTiBional  dividend  on  their  increased  capital — a  capital 
not  in  their  hands  for  seven  weeks  out  of  the  six  months,  hut  on  which 
the  dividend  was  paid  for  the  six  months.     The  new  capital  had  not  to  be 
paid  till  the  18th  August,  and  very  few  persons  troubled  the  bank  with 
tb^  money  before  that  time.    He  felt  it  right  to  point  out  that  the 
present  hftlf -year  was  somewhat  exceptional,  seeing  the  high  rate  of  interest 
which  had  ruled,  amounting  to  an  average  of  about  8  per  cent.     That  had 
BOW  gone  down  to  6  per  cent.,  he  was  happy  to  say,  for  these  high  rates  of 
interest  were  not  desirable.    For  bankers  were  better  off  when  their  cus- 
tomenwere  rich  than  when  they  were  poor,  and. the  high  rates  pressed 
heavily  on  the  springs  of  commerce.     They  must  bear  in  mind  this  fall  in 
the  rate  of  interest,  add  not  be  surprised  if  in  the  next  half-year  there  was 
not  ao  large  an  amount.    It  was  fortimate  that  this  alteration  would  take 
place,  if  at  all,  in  the  latter  half  of  their  financial  year,  and  the  amount 
they  as  usual  carried  forward  would,  of  course,  balance  any  diminution 
that  might  take  place,  and  enable  them  to  look  forward  to  the  next  year 
witii  feelings  of  hope  and  congratulation.    This  being,  as  he  had  said,  the 
^jmt  six  months,  the  statement  laid  before  them  was  simply  provisional, 
as  was  the  payment,  which  was  on  account.    Those  of  them  who  lived  to 
meet  in  July  would  no  doubt  find  a  satisfactory  account  before  them : 
^hej  would  then  have  before  them  the  profits  of  the  whole  financial  year, 
which  would  have  to  be  dealt  with  as  the  circumstances  justified.    As  to 
the  20,000  new  shares,  they  were  readily  accepted  by  the  proprietors,  and 
he  was  happy  to  say  that  it  had  had  the  effect  of  increasing  their  proprie- 
tary.    It  had  brought  in  about  150  new  proprietors,  and  they  now  num- 
bered 1,500  or  1,600  proprietors    second   to  none  in  respectabilily  in 
England.     He  thought  that  they  would  all  approve  of  their  completing 
th^  ciq>ital  by  debiting  the  profits  of  the  half-year  with  £1,950,  the 
amoont  of  the  65  shares  that  were  not  taken  up.  The  cause  of  these  shares 
remaining  was  twofold ;  some  of  them  arose  from  the  fractional  division 
of  ehareSy  and  others  were  those  where  parties  being  entitled  to  one  or  two 
did  not  think  it  worth  while  to  take  them  up.    The  capital  had  now  been 
Taiaod  to  £1,SNX),000,  and  the  reserve  fund  to  £300,000.  The  directors  thoiight 
ilial  was  sufficient  at  present,  although  at  some  future  time  it  might 
Ite  thou^  desirable  to  augment  it.     As  to  their  buildings,  they  had 
carried  £67^)00,  the  balance  of  premiimis  received,  to  the  builoUng  invest- 
mcmi  fond,  which  the  directbrs  thought  the  best  mode  of  disposing  of  that 
aam,  and  they  proposed  that  whenever  it  was  found  advisable  and  the  funds 
justified  it  to  place  a  sum  of  money  to  the  accounts  for  the  coat  of  their 
premises.    All  these  were  freehold  except  those  in  Pall  Mall  and  the 
huilding  in  which  they  were  assembled.    Thir  building,  however,  was 
lield  under  the  Goldsmiths'  Company,  who  dealt  very  furly  with  their 
tsnanta,  and  the  value  of  the  lease  had  considerably  increased  since  the 
bank  had  possessed  it.    He  congratulated  the  proprietors  on  the  large 
amount  cairied  forward  for  the  end  of  the  financial  year,  when  no  doubt 
they  would  be  able  to  give  a  good  account  of  themselves.     The  condition 
of  their  ImsixieBS  was  highly  satisfactory  in  every  department.    In  the 
Isst  port  of  the  report  they  woidd  ccmcur,  he  was  sure,  that  the  65  shares 
AffiM  be  placed  at  the  dij^)osal  of  the  directors  to  form  a  fimd  to  meet 
oraa/tiee  thai  must  occur  from  illness  or  otherwise  amongst  the  clerks  of 
iha  €«iabli«hiiici»*-      ^^®  attention  of  the  directors  had  been  frequently 
AiraMj>A  in  making  provision  for  their  clerks  in  age  or  sickness,  but  the 
^r\rla  one  oi  very  great  difficulty.    The  LoAdon  Joint-stock  Bank, 
^\^A^d  the  liondon  and  Westminster  Bank,  in  1859,  proposed  creating 

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152  Metropolitan  and  Provincial  Bank. 

a  fund  for  thiB  purpose,  but  found  it  impossible,  so  great  were  the  diffi- 
culties besetting  such  a  scheme.  The  Union  Bank  of  London  took  this 
course.  They  gaye  such  salaries  he  would  make  bold  to  say  now — and  he 
hoped  he  might  not  be  considered  as  criticising  any  other  establishementy 
but  they  paid  salaries  equal,  he  would  not  say  more  than,  the  salaries  and 
bonuses  paid  by  any  other  joint-stock  establishment  in  the  City*  They 
were  fully  impressed  with  the  deserts  of  this  numerous  and  important 
part  of  their  establishment,  and  they  treated  them  with  consideration,  and 
gaTe  them  salaries  that  would  enable  them  to  make  that  proyision  which 
every  prudent  man  would  make.  A  committee  twice  each  year  revised  all 
the  salaries,  and  did  justice  to  all  parties.  With  these  observations  he 
moved  that  the  report  be  adopted. 

Mr.  Farquhar  seconded  the  resolution,  and  it  was  carried  unanimotisly. 

Mr.  Fitzgerald  thought  in  the  state  of  their  accounts  at  present  a  bonus 
to  the  clerks  would  be  highly  desirable.  He  was  quite  dissatisfied  on  this 
X>oint. 

A  Shareholder. — ^Tou  stand  in  a  glorious  minority  of  one.     (Laughter). 

The  report  was  adopted  unanimously. 

Mr.  Hislop  moved  a  vote  of  thanks  to  the  chairman  and  the  board  of 
directors. 

Several  gentlemen  rose  and  expressed  their  anxiety  to  second  the  motion, 
which  was  carried  unanimously. 

The  Chairman  briefly  acknowledged  the  compliment. 

A  vote  of  thanks  to  Mr.  Scrimgeour,  the  manager,  and  the  officers  of  the 
bank  was  agreed  to,  and  briefly  acknowledged  by  the  manager,  and  the 
meeting  terminated. 


METROPOLITAN  AND  PROVINCLA.L  BANK. 

Thb  sixth  ordinary  general  meeting  of  proprietors  was  held  on  the  13th 
January  at  the  London  Tavern  ;  Mr.  Gilpin,  M.P.,  in  the  chair. 

The  following  report  and  statement  of  accounts  was  read  by  the 
Secretary : — 

The  directors  regret  that  they  cannot  congratulate  the  shareholders  on 
the  satisfactory  progress  of  the  bank  during  the  half-year  ending  the  Slst 
December  last.  They  have,  unfortunately,  to  report  that  a  considerable 
amount  of  previously  reserved  profit  has  been  absorbed,  aud  they  cannot, 
therefore,  at  this  meeting,  recommend  the  payment  of  a  dividend.  In  the 
preparation  of  the  balance-sheet,  provision  has  been  made,  amply  sufficient 
in  their  judgment,  for  every  bad  and  doubtful  debt — ^the  usual  proportion 
of  preliminary  expenses  has  been  written  ofl" — and  the  current  expenses 
have  been  paid,  with  the  exception  of  the  amount,  appropriated  under  the 
Articles  of  Association,  to  the  remuneration  of  the  directorsj  which,  in 
the  present  instance,  they  propose  not  to  accept. 

The  position  of  the  ba^,  on  the  first  of  January,  may  be  briefly  stated 
as  follows : — 

A  sabscribed  capital  (held  by  535  proprietors)  of       £1,934,700  0    0 

A  paid  up  capital  of  809,880  0    0 

A  reserved  fund  of. 10.000  0    0 

And  a  balance  of 8,073  6  10 

carried  forward  to  the  profit  and  loss  new  account. 


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Metropolitan  and  Provincial  Bank.  153 

It  ia  an  enoouraging  fact  that,  while  oonsequent  on  the  condition  of  the 
noaey  market,  during  the  period  under  consideration,  the  customers' 
bdances  have  decreased  in  amount,  no  material  diminution  has  taken 
piace  in  the  number  of  the  accounts  ;  and  the  directors  have  great  confi- 
deskoe  that  by  careful  and  judicious  management,  and  the  co-o{>eration  of 
their  ahareholdeTB,  they  will  be  able  to  place  the  bank  in  a  greatly  im- 
proved  position. 

The  directors  who  retire  by  rotation  are  Charles  Gilpin,  Esq.,  M.P., 
John  €reorge  Homere,  Esq.,  and  John  Stewart  Margetson,  Esq.,  who  are 
eligible  for  re-election. 

The  auditors,  Henry  Chatteris,  Esq.,  and  Arthur  Cooper,  Esq.  (public 
acoDuntants)  both  retire,  and  offer  themselves  for  re-appointment. 

Statement  of  Accounts. 

liability?. 

Amount  of  paid-up  capital  £309,380    0    0 

Keserved  fund  account      40,000    0     0 

Amount  due  by  the  bank  on  current  and  deposit  accounts 
£^^91,950.  I*.  4d.;  acceptaneco,  credits,  &c.,  against  secu- 
rities £125.492.  18*.  9d 617,443     0     1 

Balacee  of  profit  and  loss,  after  paying  interest  on  current  and 

deposit  accounts         23,677     6    5 

£890.500    6    6 


Cuh  in  hand,  and  money  at  call— head  office  and  branches  .••    £110,791     4  10 
luTestments — Consols,  £ast  India  Debentures,  City  Bonds 
(at  cost)  

BSHa  diM^onnted,  loans,  &c.         

Securitiefl  held  against  acceptances,  credits  &c 

Freehold  and  leasehold  property,  furniture,  bank  fittings  head 
office  and  branches  (at  cobt)...*       

Balanee  of  preliminary  expenses 

Coirait  expenses 

AJiowance  for  bad  and  doubtful  debts 


Pbofit  Axn  Loss  Accoumt,  Decehbeb  31,  1864, 

^^ 
CuntDt  expenses,  including  salaries,  rent,  stationery  (at  head 
otBce  and  branches)  ...        ...        ..•        ...         ... 

Ims  by  bad  and  doubtful  debts 

Amoaat  written  off  preliminary  expenses        

Besenred  fimd  account     •••        —        ...        ... 

Sebste  of  interest  on  bills  discounted,  not  yet  due 
£1  903  11'-  ^-*  unc^PPi'opriated  balance  £1,169. 14«.  6d^.; 
carried' to  profit  and  loss  new  account       


58,191     6 
522,509  18 
125,492  18 

9,110  18 
14.725     0 

5,210  14 
44,468     6 

0 

8 
9 

8 

0 

11 

8 

£890,500    6 

6 

£5,210  14  11 

44,468    5    8 

925    0    0 

10,000    0    0 

3.073 

5  10 

£63,677 

6 

5 

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154  Metropolitan  and  Provincial  Bank, 

Cr, 

Balance  of  profit  and  loss £23,677    6 

Reserved  fund  account     40,000    0 


£63,677     6 


Rb8ebv£0  FuHD  Account. 
Brought  down        £10,00 


The  Chairman  said  that  the  present  meeting  was  held  a  fortnight  earlie 
than  the  usual  time,  the  direccors  being  desirous  to  take  the  very  earliest  of 
portunity  of  meeting  their  brother  shareholders,  for  the  purpose  of  lajinj 
before  them  a  full  and  simple  statement  of  the  affairs  of  the  bank,an(i 
without  any  attempt  to  gloss  over  the  past  or  excuse  anything  that  hai 
been  done,  to  lay  before  them  the  plain  facts  of  the  position  in  which  the; 
now  stood,  and  to  ask  their  sanction  to  the  report.  (Cheers.)  Some  dia 
appointment  had  been  expressed  by  one  or  two  shareholders  at  not  reoeiv 
ing  the  report  some  days  before  the  meeting,  but  the  early  period  at  whicl 
they  met  had  prevented  the  reports  being  sent  round  so  far  in  advance  c 
the  meeting  as  might  have  been  wished.  In  fact  it  was  only  on  the  pre 
vious  day  that  the  accounts  were  signed  by  the  auditors,  and  the  momen 
they  were  signed  the  report  was  put  into  the  hands  of  the  printers,  au( 
copies  were  sent  round  as  soon  as  possible.  He  had  held  the  position  o 
chairman  something  under  twelve  months,  and  it  had  been  his  good  forton 
at  the  last  meeting,  six  months  ago,  to  congratulate  the  shareholders  oi 
the  favourable  prospect  of  their  affairs.  Now  it  was  his  miafortune  t 
have  to  unite  with  them  in  regretting  that  they  had  been  less  successfu 
during  the  past  six  months  than  they  had  expected.  The  accounts,  as  the; 
would  see,  were  somewhat  varied  in  form,  as  compared  with  those  presentei 
at  the  previous  half-yearly  meetings,  and  he  hoped  the  shareholders  pre 
sent  would  recognise  the  alteration  as  an  improvement.  (Hear,  hear.)  I 
had  been  made  in  accordance  with  the  suggestions  of  several  proprietors 
and  partly,  as  he  was. bound  to  admit,  in  consequence  of  remarks  publishei 
in  certain  leading  financial  journals  as  to  the  general  mode  of  making  u] 
banking  accounts.  As  he  had  said,  there  was  no  attempt  in  the  state 
ment  now  laid  before  them,  to  gloss  over  anything  that  had  occurred,  an( 
the  names  of  the  auditors  who  had  signed  the  accounts,  and  who  had,  t 
his  knowledge,  gone  most  carefully  and  accurately  through  them,  were 
sufficient  guarantee  that  they  were  in  all  respects  correct.  With  regard  t 
the  overdue  bills,  the  directors  did  not  ask  the  meeting  to  take  the  opinio: 
of  the  general  manager  alone  as  to  their  value.  They  had  been  tested  by 
committee,  as  well  as  by  the  auditors  and  the  professional  accountants  at  tli 
office,  in  making  up  the  accounts,  it  would  be  observed  that  the  amoun 
due  from  the  bank  on  deposit  and  current  accounts  was  separated  from  th 
amount  due  on  acceptances  and  credits,  while,  on  the  other  side,  the  free 
hold  and  leasehold  premises  and  furniture  were  separated  from  the.prelimi 
nary  expenses.  (Hear,  hear.)  In  the  results  of  the  past  h^-year  they  had  t 
deplore  very  considerable  losses,  but  those  losses  were  stated  at  their  full  ex 
tent,  without  any  attempt  to  make  them  appear  less  than  they  really  wen 
Those  losses  might  fairly  be  attributed  to  the  crisis  through  which  they  ha 
passed,  to  the  financial  pressure  which  had  everywhere  prevailed,  to  the  higl 
price  of  money,  and  to  other  circumstances  of  a  similar  nature  which  necessa 
rily  weighed  with  peculiar  heaviness  upon  a  new  bank.  But  beyond  this  the; 


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Metropolitan  and  Provincial  Bank.  155 

had  xncuTred  sarioiu  losses  from  what  he  would  call  exceptional  transactions 
(hear),  and  which  he  freely  acknowledged  on  the  part  of  his  brother 
directors  and  himHelf  would  not,  with  their  present  experience,  have  been 
entered  int<>^(hear) — losses  occasioned  by  unwise  advances — (cheers) — 
not,  as  was  generally  supposed,  advances  made  merely  upon  the  security  of 
the  shares  of  the  bank,  but  on  securities  which  the  directors,  from  the 
information  furnished  to  them,  deemed  ample  at  the  time,  although  after- 
wards they  did  not  turn  out  to  be  so,  and  they  were  consequently  thrown 
back  upon  the  bank  shares  which  had  been  deposited  with  them  as  a  colla- 
teral security.  (Hear,  hear.)  He  could  easily  understand  the  half-cheer 
with  which  some  of  the  shareholders  present  had  received  the  acknow- 
ledgement that  the  bank  had  made  questionable  advances ;  but  was  it  not 
better  that  the  directors  should  openly  state  the  facts  than  attempt  to  con- 
ceal or  excuse  it  ?  (Hear.)  Some  articles  had  appeared  in  the  pax>eTS  in 
T^€xeRco  to  the  alleged  impropriety,  if  not  illegality,  of  making  advances 
upon  the  security  of  the  shares  of  the  bank  under  any  circumstances. 
With  regard  to  the  undesirableness  of  such  a  practice  there  was  no 
difference  of  opinion  between  the  board  and  the  editor  of  the  journal  he 
referred  to ;  but  the  point  he  wished  to  insist  upon  was  that  the  directors 
had  not  made  advances  separately  and  simply  upon  the  shares  of  the  bank, 
hut  upon  securities  which  at  the  time  they  had  a  right,  from  the  best  infor- 
mation they  could  obtain,  to  believe  were  sufficient,  and  that  the  shares 
were  only  taken  as  a  collateral  security.  Let  him  add  to  that,  had  that 
inclination  proved  correct  the  bank  would  have  been  a  very  considerable 
gainer,  and  not  a  loser  by  these  transactions.  (Hear,  hear.)  It  was  some 
tatiafaction  to  be  enabled  to  say  that  during  the  severe  crisis  through 
which  thev  had  passed  the  bank  had  not  limited  in  any  way  the  ordinary 
aooommoaation  it  was  accustomed  to  give  to  its  customers,  and  although 
th^  might  fairly  have  done  so,  the  directors  had  not  made  any  call  upon 
the  new  shares,  knowing  as  they  did  that  in  such  a  period  of  monetary 
ptcasure  any  such  step  must  necessarily' have  been  attended  with  consider- 
able inoonvenienoe.  (Hear.)  Then  with  regard  to  their  paying  no  divi- 
dend, he  was  quite  aware  of  the  unpleasant  position  in  which  &e  chair- 
man  o€  such  a  company  stood  in  presiding  over  a  meeting  when  he  had  to 
announce  that  no  dividend  could  be  paid ;  still  there  was  this  ground  of 
satisfaciioD  for  the  proprietors,  viz.,  that  the  directors  were  themselves 
amongst  the  largest  shareholders,  and  held  amongst  them,  and  through 
their  personal  fnends,  a  very  large  proportion  of  the  entire  capital  of  the 
concern,  so  that  if  the  general  body  lost  by  the  unfortunate  results  of  the 
half-year,  they  were  themselves  losers  to  at  least  an  equal  extent.  (Hear.) 
It  was  stated  in  the  report  that  the  directors  did  not  intend,  under  the 
drcumstaaoeB,  to  take  their  fees.  Some  might  think  that  it  might  have 
becai  as  well  not  to  have  made  any  change  &om  the  usual  course  in  this 
respect,  or  at  all  events  not  to  have  made  any  reference  to  it.  But  the 
directors  felt  that  as  the  losses  which  had  resulted  in  the  non-paying  a 
dividaid  had  occurred  under  their  management,  there  was  but  one  course 
frq*  them,  as  men  of  honour,  to  pursue,  and  that  was  to  decline  taking  any- 
thing out  of  the  oonoem  for  their  own  services.  (Cheers.)  But  although 
they  had  been  serious  losers  from  the  financial  pressure  of  the  past  half-year, 
they  did  not  stand  alone.  Other  banks  had  also  sustained  serious  losses, 
and  their  directors  would,  no  doubt,  do  as  the  directors  of  the  Metropolitan 
udPrDvinoial  were  doing — come  forward  and  make  a  clear  statement  to 
the  thawholdeiB.     All  he  would  say  was  that  if  those  other  establishments 


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156  Metropolitan  and  Provincial  Bank, 

to  which  he  alltided  had  not  made  a  divideud  during  the  half>year,  he 
hoped  tliey  wonld  follow  the  course  taken  by  this  bank  and  not  declare 
one.  (Hear,  hear.)  But  he  was  old  enouj^h  to  recollect  other  joint-stock 
banks  that  had  been  in  ditliculties.  Thirty  years  a;:o  a  bank  which  now 
held  the  foremost  place  anionj^st  the  monetary  establishmentR  of  the  City 
was  under  a  cloud  ccjmpared  with  which  the  present  difhcidties  of  the 
Metropolitan  and  Provincial  were  absolutely  bright  sunshine.  He  was 
told,  the  other  day,  that  thirty  years  ago  that  establishment,  the  giant  of 
Lothbury,  which  wan  now  second  only  to  the  Bank  of  England,  was  in 
such  a  position  of  difficulty  that  its  balances  were  drawn  down  to  the 
lowest  amount,  yet  it  had  recovered,  and,  as  they  knew,  was  now  the  most 
flourishing  joint-stock  bank  in  the  country.  Another  bank,  a  near  neigh- 
bour of  their  own,  and  also  one  of  the  most  important,  at  one  time^ 
through  the  mismanagement  of  its  chairman,  had  its  shares  brought  down 
to  a  very  low  point,  yet  it  was  now  recognised  as  one  of  the  most  sucoeBS- 
ful  banking  concerns  in  the  City ;  and  a  still  nearer  neighbour,  which  on 
one  occasion,  when  from  unfortunate  circumstances  it  did  not  make  any 
dividend,  had  the  prudence  and  the  courage  not  to  declare  any,  found  that 
from  that  time  it  increased  in  public  confidence,  its  busmcss  and  its  profits 
went  on  year  by  year  increiising,  imtil  now  it  was  one  of  the  most  success- 
ful financial  establishments  we  had.  (Hear.)  Having  stated  the  tmfor- 
tunate  results  of  the  pau^t,  he  would  now  allude  to  the  encouraging  f eatiues 
whicli  appeared  in  the  future.  After  a  commercial  storm  such  as  we  had 
rarely  seen,  or  might  again  expect  to  see  for  many  years  to  come,  it  was  a 
subject  for  congratulation  to  find  that  their  capital  was  intact,  and  that 
they  had  a  larger  reserve  now  than  they  had  twelve  months  ago.  (Hear.) 
They  had  also  a  much  larger  number  of  accounts,  and  they  had  in  addition, 
what  ought  to  be  of  great  advantage  to  tliem,  a  largely  added  experience. 
An  analysis  of  the  accounts  would  show  that  the  shai*es  of  the  bank  were, 
if  they  closed  the  concern  to-morrow,  worth  at  least  £21  eacli,  without 
reckoning  a  single  farthing  for  the  goodwill  of  a  business  which  produced 
a  gross  profit  of  from  £30,000  to  it40,()00  in  the  half-year.  (Hear,  hear.) 
These  were  encouraging  features.  (Hear,  hear  .J  He  moved  the  adoption 
of  the  report,  which  he  submitted  on  behalf  of  himself  and  his  col- 
leagues, as  a  simple  statement  of  facts,  thoroughly  investigated  by 
professional  accountants  of  character  and  position,  whose  names  were  a 
sufficient  guarantee  of  the  correctness  of  what  they  had  certified.  He  invited 
discussion,  and  promised  to  answer  all  questions  put  to  him  fairly  and 
frankly  to  the  best  of  his  ability.  (Hear,  hear.)  All  he  wotdd  ask  the 
gentlemen  present  was  to  bear  in  mind  that  they  had  a  great  property  at 
stake,  and  so  conduct  the  discussion  as  not  to  injure  the  property.  (Hear, 
hear.)  He  was  asked  by  a  note  which  had  just  been  handed  up  to  him 
to  state  that  which  was  another  encouragement — namely,  that  the  pre- 
sent value  of  certain  of  their  premises — it  was  not  perhaps  exactly  advisa- 
ble to  particularise — had  very  largely  increased — so  much  so  that  according 
to  an  estimate  recently  made  by  one  of  the  first  surveyors  of  the  day  the 
increase  would  form  of  itself  a  very  considerable  asset.  The  board  had, 
however,  thought  the  better  course  was  to  put  down  everything  in  the 
accounts  at  cost  price — for  this  reason,  that  they  did  not  wish  to  make 
things  appear  in  any  respect  better  than  they  really  were.  (Hear,  hear.) 
It  was  his  turn,  he  was  glad  to  say,  to  retire  from  the  direction  at  the  pre- 
sent meeting — (no,  no) — ^and  it  would  be  observed  that  it  was  not  stated 
in  the  report  that  he  sought  to  be  re-elected.    In  fact,  it  would  be  to  him 


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Metropolitan  and  Provincial  Bank.  157 

pencmally  a  yery  great  relief  if  the  proprietors  would  liberate  him  from 

hift  preaent  position.     (No,  no.)    He  took  the  chairmanship  originally 

very  reluctantlyy  but  at  the  unanimous  request  of  his  colleagues.    He  had 

paid  the  best  attention  in  his  power  to  the  interests  of  his  brother  proprie- 

tors,  but  had  failed  to  achieve  what  he  aimed  at.     At  the  Hame  time  he  was 

ni>t  the  man  to  desert  his  ship  amid  the  breakers  or  the  supposed  breakers — 

(cheers) — ^and  if  it  should  be  the  pleasure  of  the  meeting  to  replace  him, 

not  in  that  (the  chairman's)  seat,  but  as  one  of  the  directors,  they  sliould 

have  the  best  services  he  could  possibly  render.     (Cheers.)    But  whether 

on  the  one  side  of  the  table  or  the  other,  he  hoped  often  to  meet  his 

brother  shareholders  of  the  Metropolitan  and  Provincial  Bank,  and  he 

was  greatly  mistaken  if  the  day  did  not  soon  arrive  when  the  misfortunes 

and  discouragements   of  the  past  would   be  lost  and  forgotten  in  the 

Boooesses  and  encouragements  of  the  present.    (Loud  cheers.)    He  con- 

dnded  by  moving  the  adoption  of  the  report. 

Mr.  Balli  seconded  the  motion. 

A  Shareholder  wished  to  know  whether  the  auditors  had  signed  the 
report  unconditionally. 

The  Chairman  had  no  hesitation  in  sajring  that  the  auditors  had  un- 
qualifiedly signed  the  accounts,  and  without,  as  far  as  he  knew,  auy  reser- 
vation whatever.     (Cheers.) 

Mr.  Hodges  believed  the  object  of*  the  question  was  to  ascertain  whether 
the  £44,468  was  sufficient  to  write  off  for  the  bad  and  doubtful  debts. 
(Hear.)  Perhaps  the  chairman  would  give  some  explanation  on  that 
potnt. 

The  Chairman  might  answer  the  question  by  sa3ring  that  the  board  had 
themadvee  increased  the  amount  written  off  for  bad  and  doubtful  debts 
book  the  sum  originally  put  down  to  that  at  which  it  stood  in  the  accounts, 
and  which  they  luid  every  reason  to  believe  was  amply  sufficient.  (Hear, 
hear.) 

Mr.  Burbidge  gave  credit  to  the  chairman  for  having  only  stated  what 
be  believed  to  be  the  truth ;  but,  frank  as  it  was,  he  must  receive  that 
statement  with  some  reservation.  (Oh,  oh.)  If  the  directors  would 
aoBore  bim  Uiat  they  had  completely  changed  the  management,  that  the 
manager  had  resigned  and  his  resignation  been  accepted,  he  would  sit 
ckywn. 

The  Chairman — The  whole  question  of  management  is  to  be  taken  into 
immediaie  consideration  l^v  the  board.     (Cheers.) 

Mr.  Burbidge — ^That  did  not  satisfy  him.   The  chairman  had  stated  that 

the  capital  remained  intact,  but  it  was  not  so.     There  was  a  balance  of 

£14,725  on  preliminary  expenses  which  could  not  properly  be  taken  as  an 

asset,  and,  taking  that  off,  and  taking  into  account  the  £10,000  reserve 

fond  on  the  other  side,  there  was  something  less  than  20«.  in  the  pound 

left    (Hear,  hear.)      Without  a  thorough  investigation  by  some  iade- 

pcodent  jpartiea,  the  confidence  of  the  public  in  the  concern  could  not  be 

ntUftedf  and  it  was  bis  intention  to  move  an  amendment  to  the  effect  that 

ihe  report  he  merely  received,  and  that  a  committee  of  independent  share- 

holders  he  appointed  to  investigate  the  affairs  of  the  bank,  to  ascertain 

the  real  extent  of  tbe  losses,  and  the  amount  advanced  upon  the  shares  of 

ihe  hank   and  h0^  f **■  *^®^  advances  were  made  for  the  purpose  of  rig- 

thA^mdrket;    that  such  committee  be  empowered  to  examine  idl 

f%       d  documents,  and  to  call  in   a  professional   accotmtant ;   and 

wiB  an    ^^^itm  be  iwijoumed  to  some  future  time,  to  receive  the  report 

^kt  Vie  Die^****«»  1 A 

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158  Metropolitan  and  Provincial  Bank. 

of  such  committee.  (^^Hear,  hear,"  and  *^No,  no.")  It  was  notorious 
throughout  the  Gitv  that  the  management  of  the  bank  was  a  disgrace  to 
the  commercial  public.  Some  of  the  parties  to  whom  advances  were 
made,  and  by  whom  losses  had  been  incurred,  were  x>enons  who  were 
wholly  unworthy  of  credit.    He  concluded  by  moving  his  amendment. 

Mr.  T.  Dixon  seconded  the  amendment. 

Mr.  flodges  believed  that  the  appointment  of  a  committee  would 
seriously  damage  the  concern,  and  thoux^ht  that  the  promise  of  the  chair- 
man that  the  question  of  management  should  be  immediately  taken  into 
consideration  ought  to  satisfy  Mr.  Burbidge. 

Mr.  Gearing  suggested  that  there  was  an  omission  in  the  report,  which 
ought  to  have  contained  a  passage  to  this  effect : — **  That,  considering  the 
crisis  through  which  we  have  passed  during  the  last  six  months,  and 
considering  the  losses  sustained  by  other  banking  establishments,  we  con- 
sider the  position  of  this  bank,  looking  at  all  the  circumstances,  is  a  sub- 
ject of  congratulation  to  the  proprietors."  (Cheers  and  laughter.)  The 
joint-stock  banks  were  like  a  fleet  of  merchantmen  which  IumI  bc^n  out 
during  the  past  half-year  on  a  perilous  voyage.  Some  had  been  successful, 
and  had  not  only  come  back  safely,  but  had  produced  a  profit  he  was 
told  of  10  or  16  per  cent.  In  their  own  case  it  was  a  subject  for  con- 
gratulation  that  although  they  could  not  show  a  profit,  they  came  into 
port  with  the  hull  soimd,  and  all  the  spars  and  sails  standing  and  in 
good  order.     (Hear,  hear,  and  a  laugh.) 

Mr.  Hermann  said  that  he  had  always  had  great  faith  in  the  chairman, 
and  what  had  occurred  had  in  no  way  shaken  his  confidence.  He  believed 
that  the  board  saw  the  position  of  the  bank  as  clearly,  and  more  so,  than 
any  committee  of  investigation  could  do,  and  had  fairly  laid  it  before  the 
shareholders.  A  committee  of  investigation  was  consequently  unneces- 
sary. (Hear.)  At  the  same  time  he  must  say,  speaking  from  an  experi- 
ence of  25  years  of  commercial  life,  that  public  confidence  in  the  bank 
was  not  likely  to  be  restored  while  it  remained  under  the  present  manage- 
ment. He  had  been  once  or  twice  at  the  bank  to  inquire  the  cause  of  the 
sudden  depression  in  the  market  price  of  the  shares,  and  had  been  told 
when  he  asked  what  amount  of  losses  had  been  incurred,  that  the  entire 
loss  was  £127.  7«.,  while  it  must  have  been  known  at  the  time  that  it 
amoimted  to  many  thousands.  He  was  quite  sure  that  no  man  knowing 
anything  of  banking  would  ever  have  aUowed  three  accounts  in  particular 
to  be  overdrawn  as  Uiey  were,  the  parties  being  well  known  as  mere  specu- 
lators  with  money  not  their  own,  and  who  had  been  in  the  habit  of  paying 
from  60  to  60  per  cent,  for  accommodation.  It  wotdd  be  far  better  if  the 
bank,  instead  of  encouraging  such  accounts  as  those,  would  afford  greater 
banking  facilities  to  tradesmen  who  kept  moderate  balances ;  but  he  was 
sorry  to  say  that  it  was  the  habit  of  most  banks  to  encourage  those  only 
who  kept  large  balailces,  no  matter  how. 

Mr.  Serjeant  Atkinson  urged  that  a  committee  of  investigation  was 
perfectly  unnecessary.  Every  shareholder  had  the  right  to  investigate 
the  books  of  the  company  for  himself,  accompanied,  if  he  thought  fit^  by 
a  professional  accountant,  and  he  was  quite  sure  the  directors  would  afford 
every  facility  for  that  purpose.  If,  therefore,  any  shareholder  was  dis- 
satisfied with  the  statement  which  had  been  laid  before  the  meeting,  it 
would  be  far  better  to  adopt  that,  the  legitimate  course,  than  to  expose 
their  affairs  to  solicitors  and  professional  accoimtants,  and  keep  open  an 
investigation  for  weeks  perhaps,  for  the  benefit,  no^  of  the  customers,  but 
of  speculators  on  the  Stock  Exchange.     (Hear.) 


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City  Banh  159 

Mr.  King  pointed  oat  that  the  propoBed  inquiry  votdd  neoeesarily  havd 
a  most  prejudicial  effect  upon  the  buBiness  of  the  bank.  If  it  were 
understood  that  every  man's  private  account  with  the  bank  was  to  be  in- 
vestigated  and  inquired  into  by  a  committee  and  professional  accountants 
their  customers  would  soon  leave  them.     (Hear.) 

Mr.  Austin  hoped  that  if  the  amendment  was  not  withdrawn  the  meet- 
ing  would  negative  it  by  an  overwhelming  majority.  The  appointment  of 
the  jpEoposed  oonunittee  would  in  effect  l^  a  declaration  that  they  had  no 
ocmndeDce  in  the  directors ;  and  how  could  they  expect,  if  they  carried 
suG^  a  motion,  that  the  public  would  have  confidence  in  the  concern  ? 
Taking  into  account  the  increased  value  of  their  premises,  he  was  satisfied 
that  if  they  were  wound  up  now,  their  assets  would  realise  more  than  208; 
in  the  pound,  independent  of  what  they  might  expect  for  the  goodwill  of  a 
business  which  realised  £40,000  a  year.     (Hear.) 

Mr.  Barber  likewise  opposed  the  amendment,  expressing  his  belief  that 
if  it  were  carried  a  very  large  proportion  of  their  customers  would  with- 
diaw  from  the  bank  rather  than  have  their  affairs  scrutinized  by  a  com- 
mittee. They  had  already  all  the  information  which  a  committee  ooidd 
poanbly  give  them,  and  besides  the  character  of  the  chairman,  they  had  the 
guarantee  of  professional  acooimtants  of  high  standing  that  that  informa- 
tion was  correct.     (Hear.) 

Mr.  Deputy  Baed,  Mr.  Jeftsry,  of  Liverpool,  Mr.  Bider/and  other 
sharebolden  joined  in  recommending  Mr.  Burbidge  to  withdraw  his 
amendment. 

The  Chairman — ^Before  Mr.  Burbidge  replies,  I  wish  to  say  that  I  will 
undertake^  on  the  part  of  the  board,  that  an  immediate  and  searching  in- 
▼estigatLon  shall  be  made  into  the  whole  of  the  management  of  the  bank, 
and  without  attempting  to  exculpate  on  the  one  hand,  or  to  inculpate  on 
the  other,  any  party,  I  promise  that  the  result  of  that  investigation  shall 
be  laid  before  you.     (Cheers.) 

Mr.  Burbid^ — ^Nothing  can  be  more  satisfactory,  frank,  or  fair,  than 
what  Mr.  (lilpin  has  now  promised  to  do.  I  am  perfectly  satisfied  with 
tliai  promiie,.and  therefore,  with  the  consent  of  the  seconder,  I  withdraw 
the  amendment.     (Loud  cheers.) 

The  ameadment  was  aooordingly  withdrawn,  and  the  report  was  put  and 
carried  unanimously,  amid  loud  and  almost  general  cheenng. 

The  directors  retiring  by  rotation  were  re-elected  on  the  motion  of  Mr^ 
JeSerjj  seconded  by  Mr.  Smith. 

Mr.  Holdeii  moved,  and  Mr.  G^sworthy  seconded,  the  re-appointment 
of  the  auditors,  which  was  carried ;  and  a  vote  of  thanks  to  the  chairman 
and  directors,  moved  by  Mr.  Serjeant  Atkinson,  and  seconded  by  Mr.  Bur- 
bidge, having  been  adopted,  was  briefly  acknowledged  by  the  chairman, 
who  took  occasion  to  say  that  he  had  never  received  from  the  bank  a  single 
fvtbing  in  the  waj  of  accommodation  or  otherwise,  and  the  proceedings 
timinated. 


CITY  BANK. 


In  siffhteeciiH  ffoneral  meetiug  of  the  proprietors  of  this  bank  was  held 
on thfiirth  January,  «t  the  London  Tavern ;  Mr.  Peter  Bell  in  the  chair. 
TTw!!  Secretary  (Mr.  C.  J.  Worth)  having  read  the  notice  convening  the 
^2!^Se^Uowing  report  and  balance-sheet  were  presented  :— ^ 


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160  City  Bank. 

^  The  annexed  statements  of  the  liabilities  and  assets  of  profits  and  loss 
for  the  six  months  to  31st  of  December  last,  show,  after  payment  of  in- 
terest on  current  and  deposit  accounts,  a  gross  profit  of  £79,933.  15<.  8d., 
which,  added  to  £7,969.  lis,  9(2.  brought  horn  last  half-year,  makes  a  total 
of  £87,903. 135.  5d.  This  result,  after  providing  for  current  expenses,  bad 
and  doubtful  debts,  rebate  of  interest  on  bills  discounted  not  yet  due,  and 
the  half -yearly  deduction  from  the  building  account,  enables  tiie  directors 
to  declare  the  usual  diyidend  of  £6  per  cent,  per  annum  on  £600,000,  the 

i present  paid-up  capital  of  the  bank,  and  a  bonus  of  £1.  lO^.  per  share 
together  equal  to  £12  per  cent,  per  annum),  free  of  income  tax,  and  to 
carry  forward  £4,685.  9a.  lid.  to  the  new  profit  and  loss  account.  The 
directors  regret  that  the  late  severe  commercial  crisis  has  not  passed  with- 
out entailing  considerable  losses  on  the  bank ;  they  have,  therefore,  de- 
cided to  reserve  a  sum  of  £30,000,  which  they  believe  will  be  amply  suffi- 
cient to  meet  any  deficiency  which  may  arise  upon  estates  now  in  course  of 
liquidation .  The  progress  of  the  Bond  Street  branch  continues  satisfactory. 
The  dividend  and  bonus  wUl  be  payable  at  the  bank  on  and  after  the  24th 
inst. 

Liabilities  and  Assets,  Slst  December ,  1864, 

Dr. 

Capital  paid-up,  viz.,  £50  per  share  on  10,000  shares £500,000    0    0 

Amount  of  reserved  fond 140,000    0    0 

Amount  due  by  the  bank  on  current  and  deposit  accounts, 

bills  payable,  letters  of  credit;  &c 4,946,209    3    9 

Profit  and  loss,  for  the  balance  of  that  account,  viz. : — 
Surplus     profit    brought    forward     from     last     half-year 

£7,969. 17«.  90.;  since  added  £79,933.  15«.  8d. 87,903  13    5 

£5,674,112  17    3 


Cr. 

Exchequer  bills,  Government  securities,  and  East  India  de- 

bentares  ...        £305,692    8    8 

Other  securities,  including  bills  discounted  and  loans  ...    4,636,524    8    8 

Bank  premises  in  Threadneedle  Street  and  Old  Bond  Street, 

furniture,  fixtures,  &c •         29,444  15    0 

Cash  in  hand,  at  Bank  of  England,  and  at  call 702,451     9  10 

£5,674,112  17     2 


Prqfit  and  Loss  Account  of  the  City  Bank  for  the  Haff-year  ending 
Slst  December,  1864. 
Dr. 

Current  expenses,  includinff  salaries,  rent,  stationery,  directors* 
remuneration,  proportion  of  building  expenses,  bad  debts, 
income  tax,  &c.         ...        

Amount  reserved  to  meet  losses  on  estates  now  in  liquidation 

Amount  carried  to  profit  and  loss  new  account,  being  rebate 
on  bills  discounted  not  yet  due  

Dividend  account  for  the  payment  of  a  dividend  at  the  rate  of 
£6  per  centum  per  annum  upon  £500,000,  amount  of 
paid-up  capital  upon  10,000  shares 

Bonus  of  £1.  10s,  per  share  on  10,000  ehares 

Undivided  profit  transferred  to  profit  and  loss  new  account ... 


£14,903 
80,000 

7 
0 

8 
0 

8,314  15  10 

15.000 

15,000 

4,685 

0 
0 
9 

0 

0 

U 

£87,903  18 

S 

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City  Bank.  161 

Cr. 
Balance  brooglit  down,  viz.: — 
Soiplos    pront     brought     forward     from     Ust     half-year 

£7,969. 17«.  9d.;  since  added  £79,933.  Its.  %d £87,903  13    5 

£87,903  13    6 


The  Chairman  next  declared  the  dividend  mentioned  in  the  report.  He 
Hiea  proceeded  to  observe  that  it  was  very  satisfactory  to  find  that  the 
gross  earnings  of  the  bank  during  the  past  half-year  had  been  quite  equal 
and  in  point  of  fact  had  rather  exceeded  those  of  the  last  half-year,  and 
were  considerably  in  excess  of  the  corresponding  half-year.  This,  no 
doobi,  was  attributable  first  to  the  increased  capital,  and  next  to  the  high 
rate  fk  interest  which  had  prevailed  during  the  last  twelve  months.  At 
the  same  time,  it  had  not  been  without  its  disadvantages.  There  had  been 
a  very  serious  commercial  crisis  and  great  depression,  under  which  several 
of  tiie  customers  of  the  bank  had  succumbed,  and  consequently  the  bank 
bad  soffered  losses.  Both  the  directors  in  general  and  the  committee  of 
aoooimts  had  given  this  subject  their  anxious  and  earnest  attention,  and 
ihej  had  come  to  the  conclusion  that  the  best  and  fairest  method  of  pro- 
ceeding was  to  look  the  matter  fully  in  the  face— (hear,  hear*) ;  and  they 
lud  accordingly  written  off  from  the  earnings  of  the  present  half-year  the 
ram  of  iB30,000,  which  they  considered  a  liberal  provision  to  meet  the 
ksses  entailed  on  the  bank  by  the  failures  to  which  he  had  alluded.  He 
was  glad  to  say  that  notwithstanding  these  drawbacks  they  were  enabled 
to  pay  the  shareholders  the  same  dividend  as  at  the  end  of  the  last  year, 
namely,  a  dividend  after  the  rate  of  12  per  cent,  per  annum,  and  to  carry 
forward  to  the  new  account  the  sum  of  £4,600.  The  other  portion  of  the 
accounts  was  pretty  much  the  same  as  usual,  and  therefore  it  was  not 
necessary  for  him  to  detain  them  in  reference  to  that  point.  He  might 
mention  that  the  writing  off  of  the  building  account  was  continued  peri- 
odically, and  that  that  account  was  now  represented  by  the  sum  of  £29,000 
(induing  the  Bond  Street  branch),  which  was  scarcely  half  the  value  of 
the  prop^ty  in  the  possession  of  the  bank.  They  would  observe  that  the 
directors  had  not  on  the  present  occasion  made  any  addition  to  the  reserve 
fond,  but  that  was  simply  because  at  the  end  of  the  last  half-year  they 
added  £10,000  to  that  account,  and  they  had  thought  it  better  to  allow  it 
to  stand  as  it  was  at  present.  Looking  to  the  present  position,  and  the 
nltimaie  prospects  of  the  bank,  he  could  not  but  consider  that  tiiey  were 
hi^y  satisfactory — (cheers)— and  he  was  sure  that  under  the  able 
management  of  Mr.  Duncan  and  Mr.  Kennedy  they  would  continue  to 
prosper.    He  concluded  by  moving  the  adoption  of  the  report. 

The  Dramty  Chairman  seconded  the  motion. 

Mr.  Bi&ing  inquired  whether  the  sum  of  £30,000  was  estimated  to 
eover  only  the  liabilities  of  the  bank  in  respect  to  the  estates  now  being 
woond  up,  or  whether  it  included  the  general  provision  for  bad  and 
doabtfol  debts. 

Another  Shareholder  asked  whether  the  board  was  quite  sure  that  it  had 
allowed  sufficient  to  cover  the  losses  they  had  incurred  in  respect  to  the 
estates  now  in  course  of  liquidation. 

The  Chairmaxi  replied  that  it  was  difficult  to  ascertain  the  figures  with 
radi  an  amoimt  of  exactness  as  to  state  what  the  loss  would  be  to  a  pcund, 
hoi  the  directors  lubd  carefully  considered  the  matter,  and  what  they  had 


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162  City  Bank. 

8et  apart  they  oossidered  would  be  amply  sufficient  to  meet  their  losses  in 
respect  to  the  estates  under  liquidation.  The  first  item  in  the  debtor  side 
of  the  profit  and  loss  account  included  the  allowance  made  to  meet  the 
ordinary  bad  and  doubtful  debts. 

Mr.  Bushfield  said  that  he  was  anxious  to  address  a  few  obseryations  to 
the  meeting  upon  a  point  which  concerned  the  interest  not  only  of  the 
City  Bank  out  that  of  all  other  joint-stock  banks.  He  was  desirous  that 
this  bank  should  stand  well,  and  without  wishing  to  say  a  word  which 
might  grate  upon  the  ears  of  the  directors,  he  must  impress  upon  them 
the  desirability  that  the  auditors  of  such  institutions  should  be  well- 
known  and  recognised  public  accountants,  wholly  unconnected  with  the 
company,  and  not  being  shareholders  in  it.  (Cheers.)  Shareholders 
elected  auditors  for  the  purpose  of  examining  the  accounts  and  reporting 
upon  the  position  of  afiTairs.  He  was  quite  satisfied  that  their  auditors 
were  men  of  perfect  integrity,  who  would  not  suffer  themselves  to  be  in- 
fluenced in  the  slightest  degree.  At  the  same  time  they  might  not  always 
have  such  men,  and  the  shareholders  must  remember  that,  as  a  general 
rule,  auditors  were  looked  upon  as  being  but  one  step  from  the  board,  and 
that  they  naturally  looked  forward  to  be  chosen  by  the  directors  to  fill 
vacancies ;  therefore,  it  was  not  surprising  that  they  should  occasionally 
be  induced  to  take  a  different  view  of  matters  to  that  which  they  would 
take  if  they  were  wholly  disinterested,  and  to  suffer  a  false  gloss  to  be  put 
upon  the  accounts.  In  his  opinion  auditors  should  be  neither  under  the 
influence  of  the  directors  on  the  one  hand,  nor  of  the  shareholders  on  the 
other.  (Hear.)  And  he  for  one  should  not  be  satisfied  with  the  position 
of  any  joint-stock  bank  with  which  he  was  connected  until  he  saw  the 
post  of  auditors  filled  by  respectable  official  accountants,  who  had  no 
other  interest  at  heart  than  to  report  to  the  shareholders  the  true  state  of 
their  affairs.  (Cheers.)  He  was  fully  convinced  that  the  directors  would 
not  consider  these  observations  as  in  any  way  casting  reflections  upon 
the  board,  or  upon  the  gentlemen  who  now  filled  the  post  of  auditors,  for 
he  only  argued  in  favour  of  the  adoption  of  a  general  principle,  namely, 
that  auditors  should  be  wholly  unconnected  with  and  beyond  the  influence 
of  the  companies  whose  accounts  they  audited.  He  thought  that  the  time 
had  now  come  when  the  question  ought  not  to  be  shelved  by  a  reference  to 
the  general  respectability  of  the  bosurd  and  the  great  stake  they  had  in  the 
welfare  of  the  undertaking.  He  instanced  the  case  of  certain  institutions 
whose  affairs  had  proved  to  be  in  a  most  ruinous  condition  at  the  very 
moment  when  they  were  paying  large  dividends,  and  the  surprise  of  highly 
respectable  directors  when  they  found  that  accounts  which  they  had  aU 
thought  correct  turned  out  to  be  utterly  fallacious.  It  was  quite  manifest 
that  S  such  accounts  underwent  the  searching  examination  of  disinterested 
public  accountants  such  fallacies  would  long  ago  have  been  discovered  and 
exposed.  He  was  quite  sure  that  everyboify  felt  for  Alderman  Mechi  and 
all  connected  with  the  bank  of  which  he  was  chairman,  and  he  (Mr.  Rush- 
field)  called  upon  the  shareholders  of  this  and  every  other  joint-stook 
bank  to  adopt  a  principle  which  must  of  necessity  make  their  property 
more  secure  and  lessen  their  risks.     (Cheers.) 

The  Chairman,  in  reply,  said  that  the  directors  had  under  their  serious 
consideration  the  expediency  of  appointing  public  auditors.  He  also 
explained,  in  reply  to  another  question,  why  it  was  not  always  expedient 
to  issue  the  report  some  days  previous  to  the  meeting. 

The  report  was  then  unanimously  adopted,  and 


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Scottish  and  Universal  Finance  Bank.  163 

On  the  motion  of  Alderman  Abbifls,  aecosded  by  Mr.  Rnshfield,  a  cordial 
▼ote  of  thanks  was  giyen  to  the  chairman  and  directors,  for  the  ability 
and  attention  they  had  manifested  in  conducting  the  affairs  of  the  bank. 

Votes  of  thanks  were  also  given  to  the  auditors,  to  the  managers,  Meears. 
Dimcan  and  Kennedy,  and  also  to  Mr.  Worth,  the  secretary. 

The  proceedings  then  terminated. 


SCOTTISH  AND  UNIVERSAL  FINANCE  BANK. 
Air  extraordinary  general  meeting  of  shareholders  in  the  Scottish  and 
TTnirerBal  Finance  Bank,  Limited,  was  held,  on  the  18th  January,  at  the 
London  Tavern,  Bishopsgate  Street.  Mr.  Gunn  took  the  diair  at  a  few 
minnieB  past  twelve,  and  called  upon  the  secretary  to  read  the  notice  con- 
vening the  meeting,  upon  which 

The  Secretary  read  a  notice  convening  a  meeting  at  the  offices  of  the 
bank,  in  Cheapside,  at  two  o'clock. 

Mr.  6mm,  before  proceeding  with  the  business  of  the  meeting,  wished 
to  be  certain  that  none  but  shareholders  were  present,  and  said  that  he 
■koold  inaist  upon  all  who  were  not  shareholders  leaving  the  room.  The 
statement  to  be  submitted  affected  shareholders  only.  He  called  for  the 
attcaidanoe  book. 

Mr.  Smith  wished  to  know  by  what  right  Mr.  Gimn  took  the  chair.  He 
considered  that  a  chairman  should  be  appointed  by  that  meeting.  He 
called  attrition  to  the  fact  of  that  being  a  shareholders'  meeting ;  vie  dr. 
cnlar  wfai<^  had  been  read,  convened  on  the  part  of  the  directors  a  meeting 
st  &e  bank  at  two  o'clock.    (Loud  applause.) 

Mr.  Ounn  oonsidered  himsdi  chairman  by  virtue  of  hie  position  in  the 
bank.  If  those  who  were  not  shareholders  did  not  leave  the  room  he 
shoold  not  make  the  statement.  (Groans  and  hisses.)  If  he  was  not  al- 
lowed to  preside  he  ishould  leave,  and  the  meeting  woidd  be  left  in  igno- 
rance.   (Groans.) 

Mr.  Morris  begged  the  meeting  to  give  a  patient  hearing  to  Mr.  Gunn. 
If  h  was  intended  to  exclude  himself,  as  acting  for  a  committee,  he  woidd 
take  the  sense  of  the  meeting  upon  the  question. 

Mr.  Gmm  said  it  was  his  intention  to  exclude  all  who  were  not  share- 
holdeiB. 

Mr.  Saiih  objected  to  Mr.  Gunn  occupying  the  chair.  The  directors 
were  upon  their  trial.  They  were  accused  of  misappropriating  the  funds 
eotrosted  to  them.  It  was  very  unseemly  for  one  against  whom  charges 
had  been  cast  to  preside  over  that  meeting.  He  proposed  that  Mr. 
Heniy  be  called  upon  to  take  the  chair. 

The  motion  was  seconded,  put  to  the  meeting,  and  unanimously 
idoDted,  upon  which  Mr.  Gunn  vacated  the  chair,  saying  he  would  appeal 
to  lie  Court  of  Chancery.  He  then,  accompanied  by  several  others,  left 
the  room  amid  loud  groans  and  hisses. 

Mr.  Henry  then  took  the  chair,  and  briefly  opened  the  business  of  the 

meeting, 

Mr^orris  snggeftted  that  as  Mr.  Gunn  had  re-entered  the  room,  if  he 
bad  any  statement  to  make  he  should  do  so. 

Mr  Gtmn  then  naade  a  somewhat  lengthy  statement,  to  the  effect  that 
hehaJd  received  6t>m  two  sound  banks  offers  to  amalgamate  with  the 
^i^tk  and  Universal  Finance  Bank,  but  those  offers  had  been  rejected 


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164  National  Discount  Company. 

by  the  committee,  which  he  complained  van  not  properly  oonstitated, 
becaaifie  it  waa  not  composed  entirely  of  shareholders.  He  did  not  wish  to 
stop  inquiry ;  but,  on  the  contrary,  he  asked  and  courted  the  fullest  in- 
quiry into  the  affairs  of  the  bank ;  and  the  terms  offered  were  that  the 
shareholders  should  be  credited  with  £5  for  every  £10  paid.  They  must 
either  amalgamate  or  wind  up. 

•  A  Shareholder  asked  Mr.  Gunn  whether  either  of  the  companies 
who  now  offered  to  amalgamate  with  the  Scottish  had  been  promoted  by 
him. 

Mr.  Gunn  said  he  had  nothing  to  do  with  the  promotion  of  either. 

Mr.  Morris  asked  whether  any  commission  was  to  be  paid  to  any  one. 

Mr.  Gunn  replied  that  some  commission  waste  be  paid  for  introduction, 
but  he  was  to  pay  it  out  of  his  own  pocket.     (Oh,  oh.) 

Mr.  Morris  explained  that  the  meeting  had  been  called  by  Mr.  Pierce, 
in  conformity  with  an  order  made  by  the  Court  of  Chancery  upon  a  peti- 
tion  for  winding  up  the  bank,  presented  by  the  committee  appointed  by 
the  shareholders.  That  step  had  been  taken  in  anticipation  of  a  similar 
step  being  taken  by  others.  They  heard  about  an  amalgamation  for  the 
first  time  when  they  appeared  in  court,  and  were  most  anxious,  in  the 
interests  of  the  shareholders,  that  any  definite  scheme  should  have  every 
consideration.  He  complained  that  no  definite  plan  was  even  now  sub- 
mitted. The  committee  could  not  recommend  the  amalgamation  as  pro- 
posed, because  it  involved  the  giving  up  of  the  whole  of  their  assets  for 
shares  in  undertakings  which  were  only  now  struggling  into  existence. 
He  then  entered  into  a  very  elaborate  statement  of  various  transactions  in 
which  Mr.  Gunn  and  other  directors  liad  been  concerned.  He  concluded 
by  urging  upon  the  shareholders  the  absolute  iiAoefisity  of  winding  up  in 
Chancery,  so  as  to  secure  at  the  smallest  cost  ihtd  fullest  and  most  com- 
plete inquiry. 

Mr.  Smith,  the  accountant,  then  made  a  statement  as  to  the  qualifica- 
tions of  directors,  and  the  circumstances  attending  that  qualification^  which 
he  said  were  not  of  the  most  creditable  nature. 

Mr.  Lowell  Price  said  the  gross  amount  of  business  done  since  the  esta- 
blishment  of  the  bank  was  £33,272.  The  losses  on  bad  and  doubtful  debts 
amounted  to  £13,121.  At  that  moment  the  bank  was  insolvent,  as  there 
was  a  deficiency  of  £4,000  to  be  made  up.  The  shaxeholders,  as  men  of 
business,  might  ask  themselves  whether  any  bank  of  standing  and  re^ecta- 
bility  would  amalgamate  with  them. 

After  some  discussion. 

The  Chairman  moved :  '^  That  this  company  be  wound  up  in  the 
Court  of  Chancery,  and  that  Mr.  Lowell  ^ice  be  confirmed  as  liqui- 
dator." 

Mr.  Jarvia  briefly  seconded  the  motion,  which  was  unanimously  adopted. 

The  usual  compliment  to  the  chairman  terminated  the  proceedings. 


NATIONAL  DISCOUNT  COMPANY. 

This  ordinary  general  meeting  of  the  shareholders  of  this  company  was 
held  on  the  18th  January,  at  the  London  Tavern ;  Mr.  F.  W.  RusseU, 
M.P.,  in  the  chair. 

The  Secretary  (Mr.  Price)  having  read  the  notice  convening  the  meeting, 
proceeded  to  read  the  following  report ; — 

^*  The  directors  have  the  satuf action  to  inform  the  shareholders  that  by 


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National  Discount  Companf/,  165 

the  ocmipletion  of  the  issae  of  the  new  shares,  the  capital  of  the  Com- 
pany is  now  as  follows,  viz. : — Subscribed  capital,  £3,000,000 ;  paid-up, 
£600,000 ;  reserve  fond,  £300,000.  The  accounts  for  the  half-year  ending 
Slst  Beoember  show  a  gross  profit  of  £130,746. 11«.  lOd.,  and  after  deducting 
the  corroit  expenditure,  directors'  and  auditors'  remuneration,  making  an 
ample  allowance  for  bad  and  doubtful  debts,  writing  off  proportion  of 
building  expenses,  and  reserving  £55,229.  10s.  for  rebate  of  interest  on 
biUa  not  yet  due,  there  remains  the  sum  of  £62,372.  Ss,  3d.,  which,  with 
£1,330.  is.  lOd.  brought  forward  from  the  last  half-year,  amounts  to 
£64,202.  12«.  Id.  The  directors  have  therefore  the  pleasure  to  recom- 
mend that  a  dividend  at  the  increased  rate  of  20  per  cent,  per  annum  be 
declared,  and  that  the  balance  of  £4,763.  0«.  4d.  be  carried  foward  to  the 
credit  of  the  next  half-year's  profit  and  loss  account.  The  directors  con- 
gratulate  the  proprietary  upon  the  steady  but  marked  success  which  this 
Company  has  attained ;  but  would  still  again  impress  upon  them  how 
greatly  its  prosperity  might  be  extended  by  each  shareholder  becumiDg  a 
depoeiioT  with  the  Company,  and  by  recommending  its  principles  to  their 
various  connexions.  The  directors  who  go  out  of  office  by  rotation  upon 
this  occasion  are  George  Bumand,  Esq.,  H.  H.  Toulmin,  Esq.,  and  F.  C. 
Wilkins,  Esq.,  all  of  whom  being  eligible  offer  themselves  for  re-election. 
The  dividend,  free  of  income  tax,  will  be  payable  on  and  after  the  1st  of 
February.  The  shareholders  will  have  to  elect  auditors  for  the  current 
year,  and  notice  has  been  given  that  a  resolution  will  be  submitted  at  the 
meeting  to  increase  their  remuneration  from  £100  to  £150  a  year  each." 

Balance-sheet,  December  3lst,  1864. 
Dr. 

Gspital,v]z.:~120,000  shares  of  £25  each,  £5  per  share  paid  £600,000    0    0 

Liabilities  on  deposits,  loans,  &c.            5,888,690    0  10 

Amoant  under  acceptance Nil 

Premises  redemption  fund           789  16    4 

Beserrefiind          300,000    0    0 

Amoant  at  credit  of  profit  and  loss  accoant,  as  shown  on  state- 
ment B 64,202  12     1 

£6,853,682     9     3 


Or. 

Cttfa,  Goremra en t,  and  other  seenri ties £483,859  1    2 

Lotos  at  caU  and  short  date 350,579  2     1 

Bills  discounted,  &c 5,975,001  3    1 

Premises      44,243  2  11 


£6,853,682    9    8 


Prqfit  and  Lass  Account  for  the  Half -year  ending  Slst  December,  1864. 

Cmrent  expenses,  inolnding  rent,  taxes,  mcome-tax,  salanes 

and  all  other  charges £6,418    2  11 

Directors'  and  auditors'  remtmeration 1,600    0  0 

Amoant  reserved  to  meet  bad  debts      5,000    0  0 

Fremifes  redemption  fund 126  10  8 

JBebate  o£  interest  on  bills  not  due,  carried  to  new  account  ...  55,229  10  0 

Carried  forward ...  £68,374    8  7 


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166  Naiionat  Discotmt  Company, 

Brought  forwazd        £68,374    3    7 

Diyidend  at  the  rate  of  twenty  per  cent,  per  annum, 
£59,449.  11«.  9d. ;  balance  carried  forward  to  profit  and 
loss  new  account  £4,753.  05.  Ad. 64,302  12    1 

£132,576  15    8 

Cr.  """""""" 

Balance  brought  forward  from  30th  June         £1,830    3  10 

Gross  profits  during  the  half-year 130,746  1110 

£132,576  15    8 


The  Chairman,  in  moving  the  adoption  of  the  report,  said,  that  if  he 
felt  warranted  last  July  in  expressing  the  gratification  and  pride  of  the 
board,  how  much  greater  must  their  gratification  be  upon  the  present 
occasion,  after  the  extraordinary  and,  he  might  say,  unprecedented  suc- 
cess of  the  last  six  months.     Twelve  months  ago  they  offered  the  share- 
holders the  power  of  dividing  the  large  sum  of  £10  per  cent.,  and  now 
they  were  enabled  to  propose  a  dividend  double  that  amount,  namely, 
after  the  rate  of  20  per  cent,  per  annum.     (Cheers.)    And  it  must  be 
borne  in  mind  that  this  success  had  been  achieved,  not  in  ordinary  times, 
but  after  a  period  particularly  trying — a  period  during  which  Ithe  atten- 
tion of  all  engaged  in  commercial  matters  was  directed  to  safety  rather 
than  to  success.     It  was  manifest  that  at  such  a  period  as  that  it  required 
from  the  managers  of  this  company  the  most  extraordinary  caution,  or 
they  might  possibly  have  involved  the  company  in  ruinous  engagements, 
instead  of  business  transactions  which  had  yielded  great  profit.  Notwith- 
standing the  exceptional  circumstances  of  the  times  they  had  proceeded 
steadily  in  their  course,  with  an  amount  of  debt  which  was  positively 
insignificant  compared  with  the  vast  sums  of  money  which  passed  tlirough 
their  hands.    They  might  really  now  look  upon  the  National  Discount 
Company  as  one  of  the  great  institutions  of  the  City  of  London.    They 
had  long  aspireid  to  that  position,  and  had  now  attained  it.    Having  attained 
that  position,  they,  might,  adopting  the  words  of  a  very  distinguished 
person — ^'  rest  and  be  thankful."   They  were  thankful,  but  determined  not 
to  rest — (hear,  hear) — for  they  felt  that  the  company  could  to  on  through 
a  long  career  of  prosperity  if  only  the  shareholders  would  do  their  duty, 
and  assist  the  board,  by  a  long  pull,  a  strong  'pull,  and  a  pull  altogether. 
(Cheers.)    By  adopting  that  course  they  would  raise  the  company  to  a 
pinnacle  far  higher  than  that  to  which  it  had  at  present  attained.    He  did 
not  think  that  the  position  which  the  company  occupied  was  at  all  hazardous, 
nor  did  he  think  there  was  the  slightest  probability  of  their  retrograding. 
They  must  look  forward,  not  backward,  and  their  motto  must  be  ''  pro- 
gress."    (Hear,  hear.)    On  the  present  occasion  he  had  nothing  more  to  do 
than  to  congratulate  them,  and  knowing  as  they  did  the  position  6t  the 
company  from  the  report  and  statement  of  accounts,  he  would  simply  content 
himself  by  moving  their  adoption.     (Cheers.) 

Mr.  Chaytor,  in  rising  to  second  the  resolution,  said  that  he  wished  to 
occupy  the  attention  of  the  company  a  few  minutes  with  a  review  of  the 
progress  of  their  affairs.  The  present  was  an  apt  opportunity  for  doing 
so,  and  it  was  only  by  applying  the  inferences  to  be  drawn  from  their  past 
history  that  they  oould  form  a  proper  judgment  of  what  th^ir  future  oareeor 


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National  Discount  Company.  167 

ynA  likely  to  be.     They  had  now  been  establiBhed  for  eight  years  and  a 
half,  and  had  experienced  sereral  of  the  diffiooltiee  and  dangers  incident 
to  ekrLy  youth.     In  the  first  whole  year  of  their  existence  they  had  to 
enooonter  the  difficulties  entailed  by  the  serious  commercial  crisis  of  1867, 
and  in  that  year  were  nnable  to  propose  any  dividend.   The  want  of  divi- 
dend wss  not  the  only  difficulty,   because  it  led  to  doubts  among  the 
shareholders  of  the  possibility  of  success,  and  dissatisfaction  at  the  slow 
progress  of  the  undertaking.    They  overcame  those  difficulties,  however, 
and  now  after  an  existence  of  eight  jesus  and  a  half  they  were  enabled  to 
offer  the  shareholders  a  dividend  of  20  per  cent.     (Cheers.)     Their  pro- 
gress  had  been  in  fact  marvellously  rapid,  even  when  compared  with  that 
of  the  most  successful  institutions  in  the  city  of  London.     The  meeting 
would,  perhaps,  be  surprised  to  hear  that  that  most  ably  managed  and 
successful  establishment,  the  London  and  Westminster  Bank,  was  twenty, 
five  years  in  existence  before  arriving  at  such  a  pitch  of  prosperity  as  this 
company  had  arrived  at.    It  might  be  said  that  the  case  of  the  two  com- 
panies was  different;  and  in  one  respect  it  was,  for   the  London  and 
Westminster  Banking  Company  were  the  pioneers  of  a  new  description  of 
bosineBs  altogether  as  regarded  banking,  and  they  had  aU  the  prejudices 
of  c^d  and  powerful  banks  to  encounter.    In  some  respects  the  course  was 
deared  for  the  present  company,  but  still  they  had  to  overcome  prejudices 
almost  as  strong,  for  they  were  the  first  company  established  to  conduct 
monetary  affairs  on  a  large  scale  under  the  Limited  Liability  Act,  and 
the  present  meeting  would  be  surprised  at  the  prejudices  which  were  ex- 
pressed against  it.  They  had  shown,  however,  that  with  ordinary  prudence 
and  difl<7imination  the  business  in  which  they  had  embarked  was  not  very 
haxardous.    It  was  true  that  money  was  a  very  slippery  article,  and  that 
they,  in  common  with  bankers  and  others  who  dealt  in  it,  were  liable  to 
make  insecure  investments;   still  he  repeated  that,  with  the  prudence 
exhibited  by  the  mani^ers,  the  risk  was  not  very  formidable.    The  period 
during  which  they  had  been  in  existence  naturally  divided  itself  into  two 
parts.    The  first  four  and  a  half  years  included  ti^at  disastrous  year  1857, 
and  also  the  year  1860,  when  the  great  leather  failures  and  frauds  affected 
thiseooipany  quite  as  seriously.  The  average  loss  ui)on  every  £100  discounted 
in  that  period  amounted  to  2s.  3}d.  They  then  turned  over  a  new  leaf,  and 
doring  the  last  four  years  the  loss  per  £100  discounted  did  not  exceed  2|d., 
indn&kg  the  last  hidf-year — (cheers) — ^making  the  average  loss  upon  the 
whole  e^^t  and  a  half   years  ouly  Is.  2d.  upon  each  £100  discounted. 
While  on  the  subject  of  bad  debts,  there  was  one  matter  on  which  he 
might  congratulate  the  meeting.     The  sums  received  from  bankrupt 
aasets,  and  appropriated  from  profits  to  cover  deficiencies  that  had  accrued 
up  to  June  last,  had  been  so  well  calculated,  that  there  was  a  credit 
due  to    the  company    of    £160  on  that  account,    which    would    be 
further  increased  by  some  additions  from  the  assets  of  estates  not  yet 
wound  up,  and  there  could  be  no  further  demand  ui)on  them  on  that 
account,  because  all  transactions  entered  into  previous  to  that  time  were 
now  determined.    (Hear,  hear.)  As  regarded  tiie  last  half-year  the  board, 
wiuch  he  thought  might  lay  claim  to  some  credit  for  prudent  management, 
Jiad  set  aside  a-  sum  which  they  believed  would  be  amply  sufficient  to 
ineet  all  contingencies.    (Cheers.)    He  thought  therefore  that  as  reffarded 
bod  debts  this  company  stood  in  a  most  favourable  position.     (Cheers.) 
He  WW  wished  to  say  a  few  words  regarding  the  creation  of  cubital  this 
Hme  twelve  jnooths-    It  was  as  well  to  take  stock  occasionally,  because 


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168  National  Discount  Company. 

then  they  knew  what  progress  they  were  making.  On  that  occasion  he 
had  the  honour  to  point  out  to  the  older  shareholders  the  probability  that 
the  board  would  be  able  to  give  them  a  larger  dividend,  and  he  thought 
they  would  agree  with  him  that  that  promise  had  been  fulfilled — (hear, 
hear) — ^and  not  only  that,  but  the  value  of  the  shares  had  much  increased 
in  the  market.  .What  had  been  the  result  as  regarded  themselves  ?  In 
June  they  offered  a  dividend  of  16  per  cent.,  which  had  now  been  in- 
creased to  20,  and  the  shares,  which  were  then  worth  £10. 10«.  were  now 
quoted  at  £16.  As  regarded  the  new  shareholders,  who  paid  £10  for  their 
shares,  they  had  been  able  to  offer  them  a  dividend  of  8  per  cent,  on  their 
investment  during  the  first  half>year,  and  now  10  per  cent.  He  had 
intimated  an  o^Hnion  that  the  shareholders  would  find  the  new  shares  well 
worth  taking  up,  and  he  was  glad  to  find  that,  with  the  exception  of  about 
800  shares  not  taken  up  from  various  private  causes,  the  whole  of  the 
new  shares  had  been  taken  by  the  old  shareholders.  It  ought,  therefore, 
to  be  another  subject  of  congratulation  to  think  that  they  had  followed 
the  advice  of  their  directors — (hear,  hear) — and  the  directors,  on  their 
part,  were  quite  ready  to  accept  any  credit  due  to  them  for  the  successes 
which  had  been  achieved.  At  the  same  time,  it  was  only  just  to  state 
that  they  were  the  directors  of  the  company's  affairs,  and  not  the  mana- 
gers, and  a  great  deal  of  the  prosperity  upon  which  they  were  now  con- 
gratulating themselves  was  due  to  the  unwearied  diligence,  great  ability, 
and  discrimination  exercised  in  the  selection  of  securities  by  the  managers. 
(Cheers.)  Those  ffentleroen  enjoyed  the  perfect  confidence  of  the  board, 
and  they  were  weU  entitled  to  that  of  the  shareholders.  The  board  had 
several  times  invited  the  shareholders  to  co-operate  with  them  in  extend- 
ing  the  business  of  the  company.  He  could  easily  understand  that,  before 
their  success  was  an  ascertained  fact,  they  might  have  some  doubts  as  to 
whether  it  would  succeed,  and  whether  it  was  prudent  in  them  to  do  so. 
They  had  now  an  ample  capital,  a  good  reserve  fund,  experienced 
managers,  and  everything  which  could  give  the  institution  stability.  If 
the  shareholders  would  consider  that  if  the  funds  at  their  disposal  which 
they  did  not  immediately  want,  and  which  were  lying  idle  elsewhere  wait- 
ing for  investment,  were  left  with  the  company,  it  would  be  to  their 
mutual  benefit,  and  if  left  for  even  the  shortest  periods  he  was  quite 
sure  that  they  in  the  aggregate  would  cause  a  large  increase  in  the  de- 
posits.  If  they  bore  tMs  constantly  in  mind,  and  took  every  opportunity 
wliich  offered  of  impressing  it  upon  their  friends,  they  would  be  them- 
selves surprised  how  often  the  opportunities  would  occur  of  this  co- 
operation with  the  board.  He  had  now  briefly  run  over  the  career  of  the 
company  up  to  the  present  time,  and  although  to  prophecy  was  undoubtedly 
a  dangerous  thing,  he  thought  a  fair  inference  of  what  they  were  capable 
of  doing  might  be  drawn  from  what  they  had  already  achieved.  It  bad 
been  said  that  nothing  succeeded-  like  success ;  they  had  experienced 
managers,  which  was  most  important,  and  they  had  open  to  them  a  field 
which  they  did  not  occupy  nearly  to  the  extent  of  which  it  was  open  to 
them,  and  the  boundaries  of  which  were  daily  becoming  more  and  more 
extended  by  the  increased  commerce  of  the  country ;  they  must  remember 
that  every  increase  of  business  must  enlarge  their  profits;  and  if  the 
shareholders  would  give  the  board  their  assistance  in  the  manner  he  had 
pointed  out,  there  was  no  reason  why  their  future  career  should  not  be 
one  of  more  extended  usefulness  and  greater  prosperity.  He  begged 
to  second  the  motion  for  the  adoption  of  Qie  report.    (Cheers.) 


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National  Diseouni  Company,  169 

Mr.  Borrodaile  oongrstulated  the  board  and  the  shareholders  on  the  high 
etate  of  pTospeiity  to  which  the  company  had  reached — a  far  greater  pros* 
perity  in  the  time  than  had  been  attained  by  the  London  and  Westminster 
Bank,  which  did  not  divide  20  per  cent,  until  after  it  had  been  esta- 
blighed  twenty-five  years.  While  that  bank  had  increased  its  deposits 
from  £600,000  to  £20,000,000  in  the  time  during  which  it  had  been  esta. 
Idished,  the  present  company,  in  8|  years,  had  increased  its  deposits  to 
nearly  £6,000,000 ;  and  if  the  shareholders  oo-operated  with  the  board, 
there  was  no  reason  why  these  deposits  should  not  be  more  than  doubled 
in  the  next  five  years.  He  thought  that  on  occasions  when  the  board  came 
before  them  with  such  prosperous  balance-sheets,  and  such  handsome  divi- 
dends,  the  managers  and  other  officers  of  the  bank  should  be  permitted  to 
participate  in  the  advantages  reaped  by  the  shareholders  in  the  shape  of  a 
testimonial.     (Hear,  hear.) 

Mr.  Bolton  wished  to  know  why  it  was  necessary  to  charge  £789  to  pro- 
vide a  redemption  fund,  because  he  should  have  thought,  considering  the 
rising  value  of  land  in  the  City,  that  no  such  charge  would  have  been 
neoessary.  He  expressed  his  gratification  at  the  excellent  ]x>8ition  in  which 
the  institution  stood,  and  ix)inted  out  that  they  had  really  during  the  pre- 
sent half-year  netted  28  per  cent.,  taking  the  balance  standing  to  the  profit 
and  loss  account  at  £64,000  and  adding  to  it  the  difierence  between  the 
rebate  of  tite  bills  charged  last  half-year.  He  thought  it  would  be  found 
thai  sufficient  had  been  made,  with  the  exception  of  the  current  expenses, 
to  enable  the  directors  to  declare  a  dividend  of  20  per  cent,  next  half- 
year. 

The  Chairman  explained  that  the  company's  premises  being  taken  for  a 
term  of  eighty  years,  it  was  thought  right  to  establish  a  redemption  fund 
ef  £100  a  year  to  restore  the  ground  and  the  premises  to  the  company  at 
the  expiration  of  the  lease.  £789  had  already  been  accumulated,  and  in 
the  course  of  60  or  70  years  a  sufficient  sum  would  be  set  aside  for  that 
poipoee.  It  was  unnecessary  to  say  that  if  they  wanted  to  sell  the  pre- 
mises, they  would  realise  a  considerable  profit  upon  them. 

The  T^)ort  was  then  unanimously  adopted,  the  dividend  declared  and 
agreed  to,  and  the  retiring  directors  relected. 

Mr.  Sewell  then  proporod^  and  Mr.  Bird  seconded,  the  re-election  of  Mr. 
John  M  Bell  and  Mr.  Morrison  as  auditors,  and  the  raising  of  their  remu- 
neration from  £100  to  £150,  which  was  carried  by  acclamation. 

Mr.  Bell,  in  responding,  observed  that  it  must  be  gratifying  to  the 
afaareholdeni  to  know  that  the  accounts  of  the  company  were  placed  before 
the  auditors  in  the  plainest  and  most  satisfactory  manner.  The  auditors 
had  very  onerous  duties  to  perform  ;  they  were  perfectly  independent  and 
impartial  in  the  discharge  of  their  duties,  and  it  was  not  the  least  satisfac- 
tonr  drcnmstanoe  that  the  officials  of  the  company  were  always  willing 
and  ready  to  explain  everything  they  required.  He  must  acknowledge 
tbat  they  had  on  many  occasions  received  the  most  valuable  information 
from  the  secretary,  which  had  enabled  them  to  test  the  accounts  when  they 
wonld  have  been  at  a  loss  to  do  so  if  those  accounts  had  simply  been  placed 
before  them.  . 

Ju  reply  to  a  question  from  a  shareholder, 

The  Chainnan  said  that  the  board  fully  recognised  the  merits  of  their 
offioers  *  the  whole  scale  of  salaries  had  been  revised,  and  he  believed  that 
all  their  setrvaata  considered  that  they  treated  them  with  great  oonsidera. 
turn. 


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170  London  and  Westminster  Bank. 

Mr.  Borrodaile  then  mored,  and  Mr.  Barber  seoonded,  a  vote  of  thanks 
to  the  managers,  the  secretary,  and  the  staff,  which  was  carried  by  accla- 
mation. 

A  cordial  vote  of  thanks  to  the  chairman  and  directors  for  their  able 
management  of  the  affairs  of  the  oompaDy  concluded  the  proceedings. 


I  LONDON  AND  WESTMINSTER  BANK. 

I 

Thb  annual  general  meeting  of  the  proprietors  in  this  bank  was  held  at 
the  bank  offices,  Lothbury,  on  the  18tii  January ;  Mr.  Alderman  Salomans, 
M.P.,  in  the  chair. 

In  opening  the  proceedings, 

The  Chainnan  said, — Gentlemen,  we  have  very  great  pleasure  in  meeting 
you  here  to-day  and  laying  before  you  our  reportof  the  proceedings  of  the 
bank  during  the  past  half-year,  and  of  the  results  of  the  last  year. 

The  Secretary,  Mr.  T.  P.  Shipp,  then  read  the  following  report : — 

*'  The  directors  haye  to  report  that — after  making  provision  for  all  bad 
and  doubtful  debts,  paying  the  income  tax,  setting  apart  £2,000  towards 
the  buildings  of  the  i>ank,  and  presenting  gratuities  on  their  salaries  to  all 
the  officers  of  the  establishment — ^the  net  profits  of  the  bank  for  the  last 
half-year  amount  to  £238,406.  I6a.  9(2.  (Cheers.)  This  sum,  added  to 
£8,830.  !«.,  the  unappropriated  balance  of  the  preceding  half-year,  will 
amount  to  £247,235.  17«.  9(2.  Out  of  this  amount  interest  on  the  rest  or 
surplus  fund  at  the  rate  of  5  per  cent  per  annum  (£7,500)  has  been  added 
to  such  fund,  which  now  amotmts  to  £307,500.  The  directors  now  declare 
a  dividend  to  the  shareholders  at  the  rate  of  6  per  cent,  per  anniun,  and  by 
way  of  further  dividend  out  of  the  profits,  a  bonus  of  13  per  cent,  on  the 
paid-up  capital.  (Cheers.)  After  these  pajrments  are  made  there  will 
remain  a  balance  of  £79,735. 17«.  9c{.,  which  the  directors  have  appropriated 
as  follows,  vi2. : — £27^78;  16«.  4(2.  on  account  of  the  purchase  of  Messrs. 
Jones,  Lloyd,  and  Co.'s  bank ;  £20,000  towards  the  alterations  and  im- 
provements of  the  chief  office ;  and  £22,500  to  be  added  to  the  rest,  which 
will  then  amount  to  £330,000,  and  the  balance  (£9,357.  la.  5</.)  carried  to 
profit  and  loss  account  for  the  current  year.  The  directors  who  retire  by 
rotation  are — John  Garratt  Cattley,  Esq.,  James  Denis  De  Yitr^,  Esq., 
and  George  Hanson,  Esu.,  all  of  whom  being  eligible  for  re-election  offer 
themselves  accordingly. 

London  and  WestminMter  Bank,  SUt  December,  1864. 

Zhr, 

Proprietors  for  paid-up  capital  ^  ...   ^ £1,000,000    0    0 

Amount  due  on  tuink  deposits;  circular  notes,  and  other 

moneys  payable  on  demand*  18,649,215  16    3 

Best  or  sarplns  fund         300,000    0    0 

Balance  of  profit  and  loss  account,  30th  June,  1864 8,830    I    0 

Net  profits  of  the  past  half-year 888,405  16    9 

£20,196,451  14    0 


*  This  sum  does  not  inclnde  acceptances,  £806,604.  7#.  4dl 

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London  and  Westminster  Bank* 


171 


Or. 

GoTenunent  stock.  Exchequer  bills  and  India  bonds... 
Bills  ducounted,  loans  to  customers,  and  other  securities 
Cash  in  hand 


..•£2,492,412     9  0 

...  16,256,593  19  6 

...     1,447,445    5  6 

£20,196,451   14  0 


Dr. 


PaoFrr  amd  Loss. 


Total  expenditure  of  the  eight  establishments,  indnding  rent, 
taxes,  salaries,  stationery,  &c,  'with  gratuities  on  their 
salaries  to  the  officers  of  the  establisement         

Amount  set  apart  towards  the  buildings  of  the  bank 

Amount  added  to  rest  or  surplus  fund  by  interest  thereon  at 
5  per  cent,  per  annum  

Payment  of  the  diyidend  how  declared,  at  the  rate  of  6  per 
cent,  per  annum,  for  the  last  half-year  on  the  paid-up 
capital  of  £1,000,000 

BosDS  of  13  per  cent,  on  the  capital     

Amount  on  account  of  purchase  of  Messrs.  Jones,  Lloyd,  and 
Go's  Bank  £27,878.  16«.  4d,\  amount  set  apart  towards 
alterations  and  improTcments  of  chief  office  £20,000 ;  ^- 
dition  to  rest  or  surplus  fund  £22,500 ;  balance  of  profit 
and  loss  aocoont  £9,357.  If.  5(1.  


Or. 
Balance  of  profit  and  loss  account,  30th  June,  1864  ... 
Grass  profits  of  the  last  hUf-year,  after  payine  the  income  tax 

and  Baking  proTision  for  all  bad  and  doubtful  debts     ... 


Pkeseot  smouBt 


Or. 


BbST  OB  BUBFLUS   FCFD. 


Amoont  on  the  dOth  June,  1864 

Interest  on  ditto,  at  5  per  cent,  per  annum 
Amount  as  aboTo •• 


£65,995  11 
2,000    0 


7,500    0    0 


80,000 
130,000 


79,735  17  9 


£815,231 

8  10 

£8,830 
306,401 

1  0 
7  10 

£315,831 

8  10 

£330,000 

0    0 

£330,000 

0    0 

£300,000 

7,500 

22,500 

0  0 
0  0 
0    0 

£330,000 

0    0 

^  The  dividend  and  bonus  (without  deduction  of  income  tax,  which  is  paid 
l^tbe  bank)  will  be  payable  on  Monday,  the  23rd  Jauuary." 

The  Chairman  then  rose  and  said— Gentlemen,  the  report  has  been  so 
dnwn  as  to  lay  clearly  before  you  the  condition  of  this  bank,  the  earnings 
of  the  last  half-year,  and  the  mode  in  which  we  advisedly  consider  the  pro- 
fits ought  to  be  appropriated.  You  are  aware  that  we  have  just  piissed 
throiwh  a  very  atonny  half-year.  In  fact  the  whole  of  the  year  has  been 
one  c^a  character  that  entailed  upon  every  establishment  such  as  this  a 


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172  London  and  Westminster  Bank. 

great  deal  of  care,  mixed  at  times  with  a  certain  amount  of  anxiety.  Kerer- 
theleBs,  I  believe  the  report  which  we  now  lay  before  you  will  show  that 
we  have  been  enabled  successfully  to  carry  the  bank  through ;  not  only 
maintaining  the  old  dividend,  but  adding  very  largely  to  our  profits.  I  say 
this  the  more  emphatically  because,  like  other  establishments  of  the  kind, 
and  from  the  very  nature  of  things,  you  have  heard  rumours  of  our  having 
incurred  one  or  two  losses  here.  The  chief  of  these,  and  of  which  you  may 
have  seen  an  account  in  the  newspapers,  resultR  from  a  fraud  committed 
upon  one  of  the  customers  of  the  bank,  by  which  a  large  amount  of  dupli- 
cate bills — otherwise  good,  but  forged  and  simulated — were  deposited  with 
us.  That  has  entailed  a  considerable  loss,  the  whole  of  which,  however, 
has  been  written  off.  (Cheers.)  So  that  what  you  see  in  the  balauoe-eiheet 
is  the  actual  result  of  the  half-year ;  a  liberal  allowance  having  been  made 
for  all  bad  and  doubtful  debts.  Let  there  then  be  no  misunderstanding  on 
that  subject.  (Hear,  hear.)  Turning  now  to  our  deposits,  I  am  happy  to 
say  that  they  have  been  maintained  uniformly  at  about  what  we  left  them 
last  half-year.  At  that  time  they  showed  a  surplus  of  nearly  three 
millions  over  what  they  stood  at  this  time  last  year.  They  are  now 
£160,000,  or  thereabouts,  more  than  they  were  in  July  last;  and 
what  is  very  gratifying  to  us,  and  I  have  no  doubt  will  be  so  to 
you,  ia  the  fact  that  our  deposits  have  fluctuated  very  little  dur- 
ing the  last  half-year,  having  been  at  no  period  much  below  or 
much  above  £18,000,000,  in  which  sum,  as  you  are  aware,  the  acceptances 
of  the  bank  are  not  included.  We  have  never  thought  it  right  to  include 
the  ordinary  acceptances,  which  in  the  nature  of  things  we  cannot  avoid, 
carrying  on  our  business.  We  have  never  added  these  acceptances  to  the 
deposits,  nor  have  we  published  them  until  now.  At  our  last  meeting  we 
offered  any  gentleman  who  wished  it  to  give  him  this  information ; 
but  finding  since  that  some  banks  do  it,  and  that  there  has  been  a 
demand  for  its  being  generally  done  by  a  publication  of  considerable 
influence  with  the  commercial  world — ^I  allude  to  the  Economist^  which 
urges  tiiat  all  banks  ought  to  separate  acceptances  from  general  de- 
posits— we  had  great  pleasure  in  yielding  to  the  suggestion.  (Hear, 
hear.)  On  the  31st  of  December,  as  you  will  see,  our  acceptances  amounted 
to  £806,604  74. 4d.,  a  large  proportion  being  acceptances  for  correspondents 
in  the  country,  and  consisting  mostly  of  14  and  21  days'  bills.  With 
regard  to  our  dividend,  we  have  now  the  pleasure  of  declaring  a  dividend 
of  16  per  cent.,  which,  with  14  per  cent,  paid  on  our  capital  in  July  last, 
makes. a  total  of  30  per  cent,  for  the  whole  year.  (Loud  cheers.)  Per- 
haps all  things  considered,  during  a  troublous  year,  this  is  not  unsatis- 
factory.  (Renewed  cheers.)  Moreover,  we  have  not  paid  all  our  profits 
away.  Pursuing  the  policy  by  which  we  have  ever  been  ffuided,  we  have 
thought  that  we  should  endeavour  quietly  to  build  up  additional  capital 
by  taking  a  portion  of  our  profits  and  adding  it  to  our  reserve  fund,  thus 
we  have  carried  up  our  reserve  fund  now  to  £330,000,  making  our  whole 
capital  £1,330,000.  (Cheers.)  We  have  also  reduced  the  ^  Jones  Loyd  " 
purchase  by  £27,878 ;  so  that  the  business  which  we  bought  from  Jones, 
lioyd,  and  Co.  may  be  considered  almost  entirely  paid  for,  and  those  large 
and  handsome  premises  adjoining  this  bank  wbidi,  perhaps,  we  may  not 
require  hereafter  for  our  own  business,  and  may  therdfore  look  upon  as  an 
asset,  will  stand  somewhere  about  their  market  value  of  £80,000.  (Hear, 
hear.)  You  are  aware  that  we  are  greatly  enlarging  our  premises.  When 
you  enter  the  bank  you  can  hardly  imagine  the  large  amoimt  of  space 


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London  and  Westminster  Bank.  173 

vhich  we  ore  about  to  oover  for  the  purposea  of  our  business.  Indeed, 
our  buBiness  has  increaaed  so  rapidly  at  the  head  office  that  we  have  had 
great  difficulty  in  lodging  the  clerks  with  due  regard  to  their  comfort  and 
the  convenience  of  the  customers.  It  was  very  fortunate  for  us,  therefore, 
not  only  that  we  acquired  the  substantial  business  of  our  highly-reputed 
neighbours,  Jones  Loyd  and  Co.,  but  that  we  are  enabled  to  use  their 
preukisesfor  the  purpose  of  carrying  on  our  own  current  business.  (Hear,hear.) 
We  are  now,  as  1  said,  enlarging  our  premises ;  and  as  the  property  which  we 
are  building  has  cost  a  great  deal  of  money,  we  have  thought  it  desirable, 
out  of  the  profits  of  such  a  year  as  the  last,  to  take  £20,000  in  aid  of 
payment  for  the  new  premises  which  we  are  adding  to  the  bank.  Those 
who  have  been  in  the  habit  of  comparing  the  general  expenditure  of  the 
bank  for  the  various  half-years  will  have  observed  that  that  item  has 
ladier  increased.  No  doubt  it  has;  and  the  reason  is  this.  We  have 
been  in  the  habit  annually  of  adding  10  per  cent,  to  the  salaries  of  our 
^aff  generally.  At  first  this  was  done  as  a  sort  of  incitement  to  exer- 
tion after  what  harl  been  a  very  good  year ;  but  it  has  now  become,  I 
fear,  a  habit  (a  laugh),  and  I  trust  the  affairs  of  the  bank  will  con- 
tinue to  be  such  that  we  shall  always  have  the  pleasure  of  making 
SQch  an  appropriation.  In  addition  to  this,  we  have  felt  that  a  very  large 
amount  of  pressure  has  been  thrown  upon  the  staff  by  the  accession  of 
Jones  Loyd's  business  in  the  course  of  the  year.  There  is  generally  quite 
enough  to  do  in  almost  all  banks  in  the  contracted  period  between  the 
hours  of  nine  and  four  or  nine  and  five,  in  carrying  on  the  ordinary  busi- 
ness ;  but  when  we  weld  with  that  another  extensive  concern,  a  large 
mount  of  trouble  and  inoonvenienoe  to  the  staff  must  necessarily  be  occa- 
noaed.  "  The  labourer  is  worthy  of  his  hire,''  but  we  do  not  want  to 
look  upon  our  labourers  as  hired  men.  If  we  prosper  we  wish  them 
to  feel  that  we  are  inclined  to  be  liberal ;  and  in  sapng  this  I  know  I 
am  expressing  your  views  as  well  as  those  of  the  boiEkrd.  (Hear,  hear.) 
Considering  these  circumstances,  we  have,  in  addition  to  the  10  per  cent, 
o!  last  year,  appropriated  another  6  per  cent,  to  this  object ;  so  that  we 
have  divided  among  our  staff  this  year  15  per  cent,  upon  their  salaries 
instead  of  10  per  cent.  (Hear,  hear.)  I  have  spoken  of  the  difficulties 
of  the  year,  and  the  consequent  anxiety  and  labour  imposed  upon  every 
one  who  has  had  to  advance  and  administer  a  business  like  this.  We  have 
been  veiy  careful  in  the  selection  of  our  officers,  not  only  here,  but  at  all 
oar  biaoches.  In  a  year  like  the  past  a  very  great  amount  of  responsibility 
and  anxiety  is  thrown  upon  those  who  are  chiefly  occupied  in  sitting  at  a 
desk  and  taking  upon  themselves  the  conduct  of  the  executive  departments. 
And  I  may  say  here,  in  the  abpenoe,  through  an  accident,  of  our  active  town 
manager,  that  no  man  could  have  acted  with  greater  judgment  or  more 
zeal  in  the  discharge  of  his  duty  than  Mr.  Higley.  He  remained  at  his 
poet  during  the  whole  of  the  month  of  October,  when  the  commercial 
premire  was  at  its  highest  (hear,  hear)  ;  and  in  the  exercise  of  his  good 
jodgment  and  good  temper  we  went  through  that  period  in  a  manner  to 
eieite  the  admiration  of  all  who  came  here ;  and  I  am  sure  you  will  agree 
vith  the  board  that  Mr.  Higley  deserves  the  warmest  eulogiums  at  our 
Ittnds.  (Cheers.)  What  I  now  say  in  his  absence  I  should  have  equal 
plaanue  in  stating  were  he  present.  (Hear,  hear.)  Then  there  is  our  ex- 
cellent general  manner,  Mr.  Swings,  and,  indeed,  all  the  managers,  who 
kve  had  more  or  !©««  to  share  in  the  troubles  and  anxieties  of  this  trying 
neriod  The  board  have  thought  that  it  would  not  be  fair  if  their  services 
\0U  XXV. 


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174  Lotidan  and  Weatminaier  Bank. 

were  allowed  to  go  unrequited.  (Hear,  hear.)  We  have,  therefore,  made 
them  a  handsome  distribution  (it  is  not  neoeesary  that  I  should  state  the 
sum  awarded  in  each  case),  amounting  in  the  aggregate  to  £7,000 ;  and 
which,  with  the  £4,000  distributed  the  previous  half>year,  makes  the  sum 
appropriated  to  the  heads  of  departments  £11,000  over  and  aboTe  their 
salaries.  (Cheers.)  I  was  sure  you  would  be  glad  to  hear  this  (hear, 
hear) ;  and  we  are  glad  to  have  the  approval  of  that  side  of  the  table  of 
what  we  do  in  this  matter.  There  are  none  more  desirous  of  acknowledg- 
ing and  rewarding  the  services  of  the  staff  than  ourselves.  We  want  no 
incitement  to  do  these  things.  What  we  want  is  that  all  the  clerks  and 
officers  in  our  employ  should  feel  that  they  cannot  be  better  off  than  with 
the  London  and  Westminster  Bank — a  large  and  respectable  establiah- 
ment,  with  a  liberal  administration  for  its  government,  and  a  liberal  pro- 
prietary to  support  them.  (Cheers.)  The  hon.  gentleman  concluded  by 
moving  that  the  report  be  adopted,  printed,  and  circulated  among  the 
shareholders. 

Captain  Creaton  seconded  the  motion,  which  was  put  and  carried 
unanimously  amid  cheers. 

Mr.  John  Garratt  Cattley,  Mr.  James  Denis  De  Yitr^,  and  Mr.  John 
Hanson,  were  re-elected  to  seats  on  the  direction,  upon  the  nomination 
of  the  chairman. 

Mr.  Malcom  Orme  having  observed  that  the  excellent  report  of  the 
directors  was  the  best  proof  of  their  able  and  admirable  management, 
moved  that  the  thanks  of  the  meeting  be  accorded  to  them. 

The  motion  was  seconded  by  Mr.  Bcdls,  and  carried  by  acclamation. 
The  Chairman,  in  acknowledging  the  compliment,  said  that  nothing 
could  be  more  satisfactory  to  the  directors  at  that  time  than  to  feel  that 
they  had  the  warm  and  active  support  of  the  proprietors,  and  he  could 
assure  them  that  the  utmost  efforts  of  the  board  would  ever  be  directed  to 
secure  the  continuance  of  their  confidence.  The  hon.  gentleman  then  pro- 
ceeded to  say — ^The  business  would  be  very  incomplete  if  I  did  not  on 
behiJf  of  the  board^  as  well  as  in  your  names,  express  to  Mr.  E wings, 
our  general  manager,  and  to  the  other  managers,  the  hish  appreciation  in 
whidi  we  hold  &eir  services.  I  have  spdcen  spedaUy  of  Mr.  Higley 
because  he  is  absent,  and  great  responsibihty  rests  upon  him,  ina8mu<m  as 
the  chief  employment  of  the  funds  of  the  establishment  falls  upon  him  ; 
but  we  could  not  get  on  at  all  unless  every  man  efficiently  discharged  the 
duties  of  this  particular  department.  All  we  want  is  to  have  the  riffht 
men  in  the  right  places ;  and  I  believe  we  have  them.  (Cheers.)  And  I 
think  we  cannot  do  better  on  these  public  occasions  than  convey  to  Mr. 
£  wings  and  the  managers  the  satisfaction  we  feel,  and  our  sense  of  how 
worthy  they  are  of  your  support  and  thanks.  (Clieera.)  I  am  reminded  that 
I  have  omitted  to  mention  the  name  of  our  excellent  secretary,  Mr.  Shipp. 
I  ought  not  to  do  so,  for  he  happens  to  be  one  of  my  constituents,  and 
the  last  thing  I  should  do  is  to  forget  him  under  any  circumstances. 
(Laughter.^  He  is  a  very  able  and  efficient  man,  a  good  example  to  others, 
and  we  all  highly  respect  him.  I  move  that  the  thanks  of  the  meeting 
be  presented  to  WUliam  Swings,  Esq.,  general  manager,  the  managers, 
and  other  officers  of  the  bank,  for  their  services  during  the  past  half- 
year. 

Captain    Creaton  seconded  the  motion,  and  it  was    carried    unani. 
mously. 
Mr.  Bwings,  the  general  manager,  on  rising   to   reply  was   received 


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Madrid  Bank,  Limited*  175 

vith  load  cheeTs.  He  said — ^I  hardly  know  what  senBation  predominates 
in  my  mind  at  the  present  moment,  pride  or  pleasure ;  pride  at  the  unex- 
skmpled  success  of  the  London  and  Westminster  Bank  durine  the  last 
year,  or  pleasure  at  your  kind  .recognition  of  the  managers'  services. 
(Hear,  hear.)  It  is  always  a  pleasing  duty  for  me  to  respond  on  hehalf 
ol  my  colleagues  to  the  kind  and  genial  remarks  of  our  worthy  chair- 
man:  but  that  pleasure  is  very  much  enhanced  by  the  hearty  manner 
in  which  you  too,  the  shareholders,  endorse  his  remarks.  This  is  the 
thirtieth  year  that  I  have  been  a  manager  in  the  London  and  West- 
minster I^k,  and  I  believe  I  have  not  b^n  an  unsuooeesful  one.  (Hear, 
hear.^  That  long  experience  induces  me  to  state  that  it  is  my  firm 
belief  that  it  will  not  be  the  managers'  fault  if  every  succeeding  year  is 
not  as  prosperous  as,  or  more  so  than,  its  predecessor  .(Cheersi)  To 
accomplish  that  end  you  may  rely  upon  it  that  the  managers  will 
unitedly  use  their  utimost  exertions  to  retain  the  confidence  of  uie  board 
of  directors ;  and  T  am  sure  that,  with  this,  we  shall  have  the  encourage* 
moit  and  support  of  the  proprietors.  On  behalf  of  my  colleagues  and 
myself  I  beg  again  most  sincerely  to  thank  you.    (Cheers;) 

On  the  motion  of  Mr.  Justin  Vulliamy,  seconded  by  Mr,  Bolls,  the 
thanks  of  the  meeting  were  voted  to  Mr.  Alderman  Salomans  for  his 
sble  and  courteous  conduct  in  the  chair;  and  Mr.  Alderman  Sale- 
mans  having  briefly  responded  to  the  oomplimenty  the  proceedings  ter- 
minated 


MADRID  BANK,  LIMITED. 

As  adjotimed  general  meeting  of  the  shareholders  in  this  company  was 
hdd  on  the  19th  January,  at  the  London  Tavern,  to  consider  the  advisa- 
bflity  of  winding  up  the  company ;  Mr.  J.  N.  Daniel  in  the  chair. 

A  report  of  the  directors,  which  has  been  published,  detailing  the 
reanns  which  compelled  the  directors  to  recommend  the  dissolution  of  the 
compaay,  was  taken  as  read.  , 

The  Chairman  said  that  as  the  report  and  statement  of  accounts  were 

Btoular  to  those  which  had  been  laid  before  the    shareholders  on  the 

former  occasion,  he  presumed  the  meeting  would  take  them  as  read. 

(Tea,  yes.)     Such  bmng  the   case,   he  would  first  observe  that  when 

they  last  met,  a  resolution  was  submitted  for  the  Consideration  of  the 

shajeholders  by  the  directors^  having  for  its  object  the  winding  up  of 

this  company.     That,  however,  was  negatived  by  the  shareholders  present^ 

althoi^  it  was  known  that  a  large  number  of  shareholders  were  in  favour 

of  the  resJoution,  but  the  act  of  parliament  required  that  there  should  be 

%  boger  majority  than  really  appeared  on  that  occasion.    Subsequently 

the  shareholders  wished  to  have  a  general  meeting,  and  that  day  was  fixed 

&>r  the  meeting.      Since  that  time  nothing  had  occurred  to  alter  the 

opinion  of  the  directors  as  to  the  necessity  of  winding  up  the  concern, 

seeing  that  by  delaying  that  mode  of  proceeding,  every  day,  and  every  hour, 

ud  every  week,  increased  the  expenses.    To  avoid  these  evils  the  only 

conne  was  to  wind  up  voluntarily.    But  subsequently  to  the  last  meeting 

aa  applicatioii  had  been  made  by  one  of  the  shareholders  (Mr.  Freeman) 

to  TOttd  up  the  ooncem  in  the  Court  of  Chancery.    To  this  the  directors 

had  no  objectioii ;  they  had  no  objection  either  to  the  winding  up  under 

tiu)  Court  of  Cbance^j  or  voluntarily  under  the  appointment  of  a  public 


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176  Madrid  Bank,  Limited. 

acoountant ;  but  tliey  oertaiBly  did  think  that  if  they  wound  up  voluntarily, 
much  less  expense  would  be  incurred  than  in  winc&ng  up  under  the  Court 
of  Chancery.  Nothing  had  transpired  since  the  last  meeting  to  alter  the 
opinion  of  the  board  as  to  the  necessity  of  winding  up.  Those  who  were 
acquainted  with  the  usual  mode  of  conducting  merely  ordinary  aflfairs  in 
Spain,  and  the  difficulty  of  dealing  with  more  than  ordinary  cases,  would 
see  the  peculiar  and  arduous  position  in  which  the  directors  haul  been 
placed.  No  doubt  this  company  had  commenced  with  too  small  a  capital, 
but  the  directors  had  always  considered  this  as  only  a  nucleus  of  capital 
to  be  raised,  because  they  had  been  assured,  upon  what  was  considered  and 
deemed  to  be  the  best  information,  both  in  Spain  and  London,  that  the 
greater  amount  of  capital  would  be  raised  in  Spain ;  but  in  this  they  were 
disappointed,  for  no  capital  was  subscribed  in  Spain.  The  honourable 
gentleman  proceeded  to  show  the  extraordinary  proceedings  of  the  com- 
mittee  of  ooxmcil  in  Madrid,  the  efforts  made  in  reference  to  the  concession, 
<bc.,  and  the  manner  in  which  the  parties  in  Spain  had  appropriated  certain 
moneys  to  themselves,  leaving  the  board  in  England  and  the  shareholders 
in  the  most  extraordinary  and  false  position.  The  powers  which  had  been 
originally  granted  to  the  English  shareholders  were  violated  and  set  at 
nought,  and,  notwithstanding  the  original  articles  by  which  absolute  con- 
trol was  given  to  the  English  shareholders,  the  Madrid  board  dealt  with 
the  affairs  of  the  company  as  if  they  were  paramount.  The  hon.  gentleman 
entered  into  a  variety  of  details  connected  with  the  transactions  of  the 
board,  (fee,  and  in  conclusion  he  moved  that  the  report  and  balance-sheet, 
and  the  accounts  to  10th  December  last,  audited  by  the  accountant,  be  re- 
ceived and  adopted. 

Mr.  Chapman  seconded  the  motion. 

On  the  question  being  put, 

Mr.  Freebody  said  the  directors  had  not  done  their  duty  to  the  proprie- 
tors, and  had  kept  them  in  the  dark.  If  they  had  done  so,  a  meeting 
should  have  been  held  in  May  last.  The  credit  of  the  bank,  if  it  ever 
possessed  any,  had  been  blown  upon,  and  nothing  remained  but  to  wind  it 
up ;  but  he  should  like  to  know  if  the  money  the  shareholders  handed  to 
the  directorli  two  years  ago  had  been  properly  expended.  They  had  heard 
rumours  of  £30,000  being  advanced  to  a  concern  at  Oosta  Bica.  He  wished 
to  know  if  the  promoters  of  the  bank  were  entitled  to  any  more  than  the 
£7,000  they  had  already  received.  Before  the  matter  was  wound  up,  he 
felt,  as  a  shareholder,  that  they  had  not  had  those  explanations  given  them 
of  the  deplorable  monetary  position  of  the  company  which  it  was  the  duty 
of  the  directors  to  give.  In  fact,  the  whole  affair  was  a  failure  from  the 
first.  He  thought  the  sooner  the  directors  gave  explanations  the  better. 
The  directors  ought  to  have  conceded  to  the  shareholders  a  committee  of 
investigation.  He  moved  that  a  committee  of  shareholders  be  appointed 
to  investigate  the  affairs  of  the  bank,  and  that  they  put  themselves  into 
communication  with  Mr.  Freeman,  with  the  view  of  his  petition  in  Chan- 
cery standing  over  until  the  shareholders  make  their  report. 

The  Chairman  said  he  would  rather  have  the  affairs  of  the  bank  inves- 
tigated by  the  Court  of  Chancery ;  but  to  have  two  investigations,  no. 
The  acts  of  the  directors  were  able  to  bear  the  light.  There  was  one  thing 
he  regretted,  and  that  was  that  a  meeting  of  the  shareholders  should  have 
been  held  in  May  last.  It  was  thought  that  their  Act  gave  them  power  to 
hold  the  meeting  any  time  in  1864,  but  there  was  a  general  Act  which 
overrode  the  company's  Act.     The  bank  had  not  advanced  any  money  to  a 


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Imperial  Bank,  Limited.  177 

ooBoern  at  Costa  Rica.  With  respect  to  the  amount  for  the  promoteni  of 
the  bank,  the  articles  of  association  provided  that  the  promoters  should  he 
entitled  to  receive  £10,000  at  the  time  of  allotment. 

Mr.  Freeman  censured  the  directors  for  proceeding  to  allot  the  shares 
when  they  had  to  give  away  half  the  shareholders'  money  to  the  pro- 
motei*.  The  money  had  been  misapplied,  and  by  certain  Acts  of  Par- 
liament they  could  compel  those  parties  to  refund  the  money.  If  they 
wound  up  the  bank  voluntarily  they  could  not  do  it,  as  it  could  only 
be  done  by  the  Court  of  Chancery. 

The  Chairman  said  the  resolution  for  winding  up  the  bank  under  the 
Court  of  Chancery  would  meet  with  no  opposition  from  the  directors.  £500 
was  given  to  certain  of  the  directors  to  qualify  them  for  the  direction,  and 
those  directors,  instead  of  taking  25  shares,  which  was  all  they  had  need 
take,  took  200  shares. 

A  somewhat  angry  discussion  ensued,  in  which  several  shareholders 
complained  loudJy  of  the  manner  in  which  the  concern  had  been  managed. 

MI.  Freeman  moved,  and  Mr.  Harrison  seconded,  an  amendment  that 
the  bank  be  wound  up  under  the  Court  of  Chancery,  but  after  a  slight 
discussion  it  was  withdrawn. 

The  amendment  for  a  committee  of  investigation  was  then  put  and 
carried  unanimously. 

In  answer  to  a  question. 

The  chairman  said  they  had '  no  desire  to  keep  anything  back,  but 
would  give  the  committee  of  investigation  every  assistance. 

Messrs.  Freeman,  Vizen,  Nutting,  Freebody,  and  Pedler  were  then  ap- 
pointed as  a  committee  of  investigation. 

The  proceedings  then  terminated  with  a  vote  of  thanks  to  the  chair- 


IMPERIAL  BANK,  UMITBD. 


Tex  fifth  ordinary  general  meeting  of  the  shareholders  of  this  bank  was 

hdd  on  the  19th  January,  at  the  London  Tavern ;  Mr.  Alderman  Lusk 

in  the  diair. 

Mr.  Maiming,  the  secxetary,  read  the  following  report : — 

^The  directors,  in  accordance  with  the  regulations  of  the  bank,  submit 

the  accompanying  statement  of  account  and  balance-sheet  for  the  half-year 

ending  the  Slat  December,  1864 ;  together  with  auditors'  report  thereon. 

The  proprietors  will  notice  that  of  the  capital  authorized  to  be  raised  by 

the  issue  of  the  new  shares  only  £6,575  remains  to  be  paid ;  and  also 

that,  frtim  the  Slat  ult.,  the  amount  paid  thereon  will  cease  to  carry 

interest,  but  these  shares  will,  in  lieu  thereof,  participate  equally  in  all 

future  dividends  with  the  other  shares  in  the  original  capital  of  the 

bftnk.    The  directors  have  to  report  that,  after  defraying  the  current 

charges  of    the  hank,  making  allowance   for   bad  and  doubtful  debts, 

rebate  on  hills,  and  providing  for  a  dividend  at  the  rate  of  10  per  cent. 

per  annnm,  together  with  interest  on  the  new  shares,  there  remains  a 

halanoe  of  f5,228.  18«.,  which  the  directors  recommend  to   be  carried 

forward  to  the    profit  and  loss   new  account.      The   retiring  directors, 

Michael  Hall,  Andrew  Lusk,  William  Miurdoch,  and  A.  P.  Petrocochino, 

EMrt.    hein^  eligihle,  offer  themselves  for   re-election.    The  auditors, 

Ge^e  Bn>om  an<l  Peter  Broad,  Esqrs.,  also  retire  from  office,  and  offer 

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178 


Imperial  Bank,  Limited. 


fhemselyeB  for  te»appointnieiit.  The  direotora  have  the  ^tifioation  to 
aDnounoe  that  the  business  of  the  bank  is  progressing  satisfaotorilyy  and 
ask  the  shareholders  to  assist  in  extending  its  operations." 


Dr. 


LiabiUHes  and  Assets,  31st  Deeember,  1864. 


Cflpital  paid  up,  viz.,  £20  per  share  on  12,000  shares 

Ditto  on  10,500  new  shares         

Amount  due  by  the  bank  on  current,  deposit,  and  other  ac< 

oounts  ...        ..•        •••        .••        •••        •••        •••        •• 

Reserve  fund  

Redemption  of  premises  fund 

Balance  of  profit  and  loss  30th  June  £4,700.  6#.  10d.\  gross 

profits  for  half  year   £58.017.  I2s.    2d.-£62,717.  19*.; 

less  interest  paid  to  customers  £17,765.  15«.  Id. ... 


Cr. 

Consols  and  India  debentures      •••        

Bills  discounted,  loans  to  customers,  &o. 

Bank  premises,  furniture,  and  fixtures 

Preliminary  expenses       

Cash  in  hand,  at  Bank  of  England,  and  at  call 


.      £240,000 
.       203,425 

0 
0 

0 
0 

.     1,199,607 

61,268 

208 

0  ir> 

0     0 
0     0 

44.952 

8 

6 

£1,739,480 

4 

3 

.       £37,409 

.     1,550,700 

22,584 

1,889 

.        126.896 

9 

6 

14 

13 

0 

7 
9 
0 
9 
2 

£1,789,480 

4 

3 

Dr. 


Profit  ajtd  Loss  Account. 


Current  expenses,  including  salaries,  rent,  directors'  remune- 
ration, income  tax,  and  allowance  for  bad  and  doubtful  debts 

Amount  carried  to  profit  and  loss  new  account,  being  rebate 
on  bills  discounted  not  yet  due      

Payment  of  dividend  at  the  rate  of  10  per  cent,  per  annum, 
for  the  last  half-year 

Payment  of  interest  on  new  shares,  at  5  per  cent,  per  annum 

Amount  carried  to  profit  and  loss  new  account  


Cr. 


£18,923  .8    4 
5,803  11     3 


Balance  brought  down 


o«03  fed 

0 

5 

18 

0 

10 

0 

£44,952 

•8 

5 

£44.952 

8 

5 

The  Chairman,  in  moving  the  adoption  of  the  report,  said  that  it  would 
be  pure  affectation  on  his  part  if  he  were  not  to  say  that  he  was  ezoeed- 
ingly  glad  to  meet  the  shareholders  under  such  fayonrable  circomstanoes. 
It  was  like  a  meeting  of  old  friends  who  had  got  safe  on  shore  again  after 
a  rough  and  dangerous  voyage.  The  last  six  months  were  marked  in  com- 
mercial circles  by  very  severe  pressure,  and  were  pregnant  with  great 
lessons  to  men  in  business.  There  were  many  crises  of  no  ordinary  kind 
which  ended  in  all  but  a  panic.  Strong  houses,  old  institutions,  firms 
and  individuals,  were  obliged  to  bow  their  heads  to  inexorable  necessity. 
Their  little  vessel  rode  out  the  gale  admirably,  without  the  straining  of  a 
single  timber  or  the  loss  of  a  single  spar,  and  yet  they  did  not  turn  away 


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Imperial  Bank,  Limited.  179 

a  single  customer  with  a  good  bill  or  a  Tidid  security.  They  did  not  re- 
discoimt  a  single  farthing,  and  they  had  always  a  shot  in  the  Icicker  too. 
(^Hear,  hear.)  Tet  they  most  not  entertain  the  idea  that  for  banks  there 
was  any  royal  road  to  the  Tnaking  of  money.  The  business  of  banking 
must  be  conducted  on  the  same  principles  as  other  kinds  of  business.  The 
merchant  who  dealt  in  iron,  tea,  sugar,  or  brass,  if  too  ready  to  give  credit, 
or  to  dispose  of  his  goods  in  a  bad  market,  must  abide  the  consequences ; 
and  in  Uie  same  way  the  banker  who  dealt  in  gold,  silver,  and  copper, 
if  too  ready  to  give  credit  or  to  take  securities  that  were  not  con- 
vertible would  get  into  trouble,  and  therefore  in  the  one  business  as 
well  as  in  the  other  it  was  a  matter  of  sound  judgment  after  all.  Youug 
banks  had  a  great  many  trials  to  encounter,  and  a  ffreat  many  dangers 
to  avoid,  to  which  older  institutions  were  not  equaUy  exposed ;  and  it 
was  because  they  had  passed  safely  through  these  difficulties  that  he  stood 
before  them  with  so  much  satisfaction  and  so  much  independence.  They 
had  made  this  half-year  gross  profits  amounting  to  £5SfiO0 ;  and  to  show 
tbat  this  was  a  progressive  business,  he  would  refer  them  to  the  past. 
For  the  half-year  ending  December  31, 1862,  their  gross  earnings  were 
i^,044;  and  in  subsequent  half-years  they  were  £10,036,  £16,227, 
jC35,855;  whiUt,  as  he  had  said,  they  were  this  half-year  £68,017. 
(Hear,  hear.)  That  he  thought  was  a  fair  progress.  The  first  half- 
year  tiliey  made  no  dividend,  and  he  thought  very  properly.  The  next 
half-year  they  divided  5  per  cent.  \  last  half-year  8  per  cent ;  and 
now  they  proposed  to  divide  10  per  cent.  They  carried  to  profit  and 
\rf»  the  sum  of  £5,300,  being  rebate  at  the  bank  rate  of  the 
day,  and  they  carried  forward  £5^00,  which  gave  them  £10,500  to  start 
^he  new  year  with.  The  preliminary  expenses  stood  as  before,  but  there 
were  some  fractional  shares,  representing  about  £800,  imdisposed  of,  which 
would  reduce  the  preliminary  expenses  next  year  to  £1,000.  The  bank 
premiaes  stood  as  they  were,  but  he  was  informed  on  good  authoritythat 
they  were  worth  £16,000  or  £20,000  more  than  they  gaye  for  them,  ^ear, 
hear.)  Ample  provision  had  be^  made  for  bad  and  doubtful  debts.  The 
toedors  had  taken  £2,000  as  their  remuneration,  although,  having 
divided  10  per  cent.,  they  were  entitled  to  £3,000.  The  branch  at  the  West 
End  was  getting  on  very  Veil ;  it  paid  its  expenses  the  last  half-year  and  left 
a  little  balance  over,  ^ear^  But  he  must  observe  that  he  was  not  in  favour 
of  branch  bonks,  especially  ^dien  they  were  at  a  great  distance.  He  thought 
they  had  gone  on  as  favourably  as  could  be  expected  under  the  circum- 
staaoes.  He  would  remind  them  that  it  was  impossible  to  go  fast  if  they 
wanted  to  go  safely.  (Hear,  hear.)  And  by  going  safely,  but  steadily,  he 
had  no  doubt  they  would  become  a  large  establishment.  In  his  opinion  it  was 
foing  fast  enou^  to  divide  10  per  cent,  and  to  put  by  a  reserve  £61,000. 
He  Mieved  there  was  no  more  safe  or  sound  bank  in  the  metropolis  than  the 
little  bank  at  6,  Lothbury,  opposite  the  Bank  of  England,  and  next  door  to 
the  London  and  Westminster.    (Hear,  hear,  and  laughter.) 

Mr.  Dickson  seconded  the  motion,  which  was  carried  unanimously. 

Hie  Chairman  then  moved,^  That  a  dividend  be  declared  at  the  rate  of 
10  per  cent,  per  annum,  free  of  income-tax,  on  the  capital  paid  up  on  the 
12,P00  shares  induded  in  the  first  issue,  and  in  lieu  of  dividend  interest  at 
tka  rate  of  5  per  cent,  yer  anniun,  free  of  income-tax,  on  the  capital  paid  up 
on  thelO,£pOO  shares  included  in  the  second  and  third  issues,  such  dividend 
and  interest  to  be  payable  on  and  after  the  1st  of  February." 
Mr.  Antonio  Balli  seconded  the  motion,  which  was  adopted. 


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180  London  Joint-Stock  Bank. 

The  retmng  directors  and  auditors  were  re-elected. 

On  the  motion  of  Mr.  Flight,  seconded  by  Mr.  Vining,  a  vote  of  thanks 
was  passed  to  the  directors,  and  a  similar  compliment  was  paid  to  Mr. 
Bentham,  the  manager,  and  the  other  officers  of  the  bank. 

A  vote  of  thanks  to  the  chairman  terminated  the  proceedings. 


LONDON  JOINT-STOCK  BANK. 


The  general  meeting  of  the  proprietprs  took  place  on  the  19th  January 
in  the  board-room  of  the  bank  offices,  Princes. street;  Mr.  F.  Bodewald 
in  the  chair,  when  the  following  report  was  submitted  by  the  direc- 
tors : — 

^'  The  directors  have  much  pleasure  in  placing  before  the  shareholders 
the  annexed  statement  of  the  liabilities  and  assets  of  the  bank,  and  of  the 
profit  and  loss  account  for  the  half-year  ending  the  31st  ultimo,  by  which 
it  will  be  seen  that  the  bank  has  made  a  net  profit  of  £171,125.  9«.  7d,^ 
including  £26,976.  7s.  lOd.  brought  forward  from  the  previous  half-year. 
Of  this  amount  the  directors  have  appropriated  the  sum  of  £150,000  for 
the  payment  of  the  usual  dividend,  at  the  rate  of  12i  per  centum 
per  annum,  with  a  bonus  of  £1.  17^.  6(2.  per  share,  and  have  carried 
£21,125.  9^.  7(2.  to  the  credit  of  the  guarantee  fund.  In  pursuance  of  the 
resolution  of  the  general  meeting  of  August  18th,  confirmed  on  the  15th 
September  last,  the  issue  of  12,000  new  shares  has  been  made,  and  the 
directors  have  the  satisfaction  to  acquaint  the  shareholders  that  the  sub- 
scribed capital  of  the  bank  is  now  £3,600,000,  divided  into  72,000  shares 
of  £50  each,  paid  up  to  the  extent  of  £15  per  share,  thus  making  the  paid- 
up  capital  £1,080,000  entitled  to  participate  in  profits  from  the  1st  January. 
The  guarantee  fund  has  been  credited  with  the  sum  of  £1,372. 198. 6d., 
realised  on  the  sale  of  227  new  shares  not  taken  up  by  the  allottees.  This 
fund  is  also  accredited  with  accruing  interest,  and  debited  with  £4,875  to 
cover  the  depreciation  in  value  of  the  Government  securities  since  the  30th 
June,  and  now  amounts  to  £298,069.  7«.  Id.  With  a  view  to  avoid  the 
inconvenience  of  varying  the  guarantee  fund  at  the  close  of  eveiy  half- 
vear  by  an  entry  to  regiuate  the  market  value  of  the  Government  securities 
held  by  the  bank,  and  which  is  of  no  practical  utility,  inasmuch  as  these 
securities  are  held  as  a  permanent  investment,  a  resolution,  of  which  notice 
by  circular  has  been  ffiven  to  the  shareholders,  will  be  proposed  to  the  fleet- 
ing, to  authorise  the  directors  to  value  for  the  future,  at  par,  the  Exchequer 
bills,  and  at  the  fixed  price  of  90  all  Consols  and  New  Three  per  Cents, 
held  by  the  bank.  The  following  directors  retire  by  rotation,  under  the 
provisions  of  the  deed  of  settlement,  viz. ;  Henry  Christy,  Esq. ;  Francis 
B.  Goldney,  Esq. ;  Charles  J.  Heath,  Esq. ;  Henry  Lee,  Esq. ;  and  George 
Pollard,  Esq.,  who  being  eligible,  offer  themselves  for  re-election.  The 
dividend  and  bonus,  free  from  income  tax,  will  be  payable  on  and  after 
Friday,  the  27th  inst.,  and  the  interest  payable  on  the  new  share  capital 
and  premium  is  payable  on  and  after  the  same  day." 

LicUnlitie*  and  Assets,  December  31,  1864. 
Dr. 
Capital  paid  up,  viz.,  60|000  shares  at  £10  each        £600,000    0    0 

Carried  forward        £600,000    0    0 

Digitized  by  VjO0QIC 


Lcndon  Joint-Stock  BanJi.  181 

BroQglit  forward        £600,000    0    0 

Capital  called  up  in  respect  of  the  12,000  new  ebares  autho- 
rised to  be  issued  by  the  resolution  of  the  special  meeting 
of  the  18th  Au^st,  confirmed  on  the  15th  September 
last,  at  the  rate  or  £10  per  share,  £120,000  ;  amount  pay- 
able as  premium  on  the  12,000  new  shares,  as  above,  at 
the  rate  of  £30  per  share,  £360,000— £480,000 ;  less  re- 
maining unpaid  at  this  date  £11,690  468,310    0    0 

Amoant  retQlsed  by  the  bank  on  the  sale  of  227  new  shares 
(not  taken  up  by  the  allottees),  in  excess  of  the  premium 
of  £30  per  share         1,372  19    6 

Amoant  due  by  the  bank  on  current  accounts,  deposit  receipts, 

ciicular  notes,  and  aceptances 20,252,996    4    7 

Amount  of  '*The  Guarantee  Fund,**  30th  June,  1864, 
£276,301.  7s,  Sd.\  six  months'  interest  on  ditto  at  £3  per 
cent,  per  annum  £4,144.  IOj.  4d. 280,445  18    0 

Lew  decrease  since  the  valuation  on  the  30th  June,  1864, 
in  the  market  value  of  Government  securities  held  by 
the  bank  £4,875  275,570  18     0 

Undivided  profit  from  the  last  half-year  26,976    7  10 

Amoant  carried  to  profit  and  loss  account        242,942    0    2 

£21,868.168  10     1 


Cr. 

Exchequer  bills,  and  Government  stock  as  per  valuation  of 
the  brokers  of  the  bank,  at  this  date,  viz.:— £300,000  ; 
Exchequer  bills  £300,866.  1*.  lid.;  £800,000  Ck)nsols,  and 

New  Three  per  Cents.  £719,612.  IOj £1,020.378  1111 

Cash 981.019     1     0 

Bills  discounted,  loans,  and  other  securities 19,825,795  17    2 

Bsilding,  fnmitnre,  &c.  in  Princes  Street,  £34,850;  ditto  ditto 

in  Pall  Mall  £6,125 40,975    0    0 

£21,868,168  10     1 

Prtffii  and  Loss  AecourUfor  the  Hcdf-year  ending  December  31**.,  1864. 
Dr. 

Cnrrent  expenses,  proportion  of  building  expenses,  directors* 

remuneration.  Dad  debts,  income  tax,  &c, £35,273  16    3 

Amount  carried  to  profit  and  loss  new  account,  being  rebate  of 

interest  on  bills  discounted,  not  yet  due 60,519    2    2 

Amount  payable  as  interest  on  the  27th  January,  1865,  on  the 
new  share  capital  and  nremium,  together  £480,000,  in  ac- 
cordance with  the  resolution  referred  to  in  the  foregoing 
statement         3,000    0    0 

IHridend  account  forthe  payment  of  half  a  year's  dividend  at  the 
rate  of  12  J  per  centum  per  annum,  upon  £600,000,  amount 
of  Daid-up  capital  npon  60,000  shares        37,600    0    0 

Ditto,  for  the  payment  of  a  bonus  of  £1.  17*.  6d.  per  share  ...        112,600    0    0 

imount  carried  to  the  **  guarantee  fund  **      21.125    9    7 


Cr 
Undivided  profit  brought  forward  from  the  last  half-year 
Kdaoce  brought  down     ... 


£269,918 

8  0 

£26.876 
242,942 

7  10 
0  2 

£269,918 

8  0 

Digitized  by  ^OOQ IC 


182  London  JoinUStock  Bank. 

The  Ghainnaii,  having  dedured  the  dividend  and  bonus  in  acoordanoe 
with  the  report,  said  that  it  was  his  good  fortone  to  preside  at  this  meet- 
ing,  with  the  most  favourable  accounts  that  the  London  Joint  Stock 
Bank  had  yet  presented  in  the  course  of  its  uniforujly  prosperous  history. 
The  exceptionsd  value  of  money  during  the  last  six  months  had  enabled 
the  directors  to  secure  the  profitable  results  which  they  found  embodied 
in  the  statement  they  held  in  their  hands.  And,  speaking  in  the  name  of 
the  board,  he  looked  forward  with  confidence  to  continued  success  so 
long  as  the  same  careful  superintendence  and  vigilance  were  exercised 
that  now  characterised  the  conduct  of  their  affairs.  They  saw  by  the 
report  that  the  important  financial  operation  which  was  sanctioned  by 
the  shareholders  on  the  18th  of  August  last  had  been  successfully  carried 
out.  And  this  was  all  the  more  satisfactory  because  the  enlargement  of 
the  basis  of  their  capital  would  tend  to  confirm  the  confidence  the  bank 
enjoyed,  and  which  had  led  to  a  very  large  mcrease  of  their  business  in 
the  last  year.  He  moved  that  the  report  be  received  and  printed  for  the 
use  of  the  shareholders. 

Mr.  Pollard,  deputy  chairman,  (Seconded  the  motion. 

A  Shareholder  requested  that  some  explanation  should  be  ffiven  with 
regard  to  the  disposition  of  the  new  shares  not  taken  up  by  the  proprie- 
tors to  whom  they  were  allotted.  He  wished  to  know  at  what  price  they 
had  been  sold. 

Mr.  Brooking,  chairman  of  the  finance  oommittee,  and  a  director,  said 
that  by  the  resolution  passed  in  August  the  call  upon  the  new  shares  was 
payable  on  the  1st  of  September,  but  the  board  felt  that  they  ought  to 
give  as  much  license  as  they  could  to  the  old  shareholders,  and  therefore 
extended  the  time  for  payment  two  months,  viz.,  to  December  1.  On 
making  up  the  accounts  to  that  date  they  ascertained  that  227  new  shares 
had  not  been  applied  for ;  they  ther^ore  decided  that  they  would  put 
these  in  the  market  and  sell  them  for  the  benefit  of  the  bank  at  the 
current  rate  of  the  day ;  and  when  they  did  so  they  found  that  the  shares 
were  worth  a  fraction  over  £46.  So  that,  inasmuch  as  they  had  been 
offered  to  the  old  shareholders  at  £40  each,  they  were  thus  enabled  to 
realise  more  than  £6  a  share,  or  in  the  aggregate  a  profit  of  £1,872. 
This  the  directors  thought  was  a  fair  item  to  go  to  the  guarantee  fond ; 
and  it  had  accordingly  he&a  so  disposed  of  since  the  1st  of  January.  The 
instalment  upon  the  new  shares  carried  interest  at  the  rate  of  6  per  cent. 
This  financial  operation  had  entailed  a  large  amount  of  extra  duty  upon 
the  staff  generally,  which  had  been  cheerfuUy  and  efficiently  performed. 

A  Shareholder  inquired  if  any  additional  grant  had  been  made  to  the 
derks  and  other  officers  for  the  extra  services  they  had  rendered  ? 

Mr.  y.  Knight  advised  that  that  question  should  be  left  entirely  in 
the  hands  of  the  directors,  as  it  was  one  in  which  it  would  be  very  bad 
taste  on  the  part  of  the  shareholders  to  interfere. 

Mr.  Billings  asked  whether  provision  had  heem  made  by  a  suspense 
account  or  otherwise  to  meet  any  contingency  that  might  arise  in  the  shi^ 
of  losses  upon  bills  and  liabilities ;  also  whether  the  accounts  had  been 
audited  by  a  committee  of  shareholders  or  independent  auditors. 

The  Chairman  replied  that  all  bad  and  doubtful  debts  had  been  entirely 
written  off  and  cleared,  the  balance-sheet  presented  a  dear  statement  of 
the  assets  and  liabilities,  and  there  was  nothing  whatever  behind.  (Cheers.) 
With  regard  to  the  audit  it  was  done  by  the  directors,  as  the  deed  of  settle- 
ment did  not  require  that  there  should  be  any  other. 


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Bank  of  London.  183 

A  SbAieholder  thought  itwoold  be  more  Batisfactory  to  the  directon 
tbemaelveBy  as  well  aa  to  the  proprietors,  if  the  afiairs  of  a  bank  of  such 
magnitude  were  sabmitted  to  an  independent  audit.  If  the  deed  of  settle- 
ment were  faulty  in  that  reApect  the  sooner  it  was  amended  the  better.  He 
thoold  like  to  know  when  the  accumulationB  to  the  guarantee  fund  were  to 
crnne  to  an  end,  or  what  the  directors  proposed  to  do  with  regard  to  it ;  for 
it  seemed  to  him  that  those  whose  capital  had  made  the  guarantee  fund 
vere  the  persons  who  ought  to  have  it.  It  ought  not  to  !:«  postponed  for 
I^^eteritj  or  future  proprietors  to  receive  the  advantage  of  that  fund.  At 
the  same  time  he  oon^^tulated  the  shareholders  and  directors  upon  the 
rasult  of  their  reoent  operations.  The  report  was  a  brilliant  one,  and  did 
the  board  the  highest  crodit. 

The  Chairman  said  the  bank  was  bound  by  the  prescriptions  contained 
in  the  deed  of  settlement,  which  were  of  such  a  nature  that  tliey  must  be 
closely  adhered  to.  As  to  the  guarantee  fund,  it  was  established  by  the 
deed  of  settlement  for  the  equalisation  of  dividends,  and  to  meet  losses  in 
exceptional  years,  when  they  were  unable  to  pay  the  usual  dividend.  The 
bnsineBS  of  itie  bank  was  a  very  extensive  one,  and  in  his  opinion  £300,000 
VIS  not  an  excessive  guarantee  fund. 

The  resolution  was  put  and  carried  unanimously;  the  five  retiring 
directors  were  re-elected :  and  a  resolution  agreed  to  in  the  terms  of  the 
paragraph  in  the  report  authorising  the  directors  to  value  for  the  future 
at  par  the  Exchequer  bills,  and  at  the  fixed  price  of  90  all  Consols  and 
New  Three  per  Cents,  held  by  the  Bank. 

A  discussion  here  arose  relating  to  the  guarantee  fund,  which  elicited  an 
explanation  from  the  Chairman,  to  the  effi^  that  the  deed  of  settlement 
orrald  only  be  altered  by  act  of  parliament,  and  that  an  attempt  having 
been  made  by  a  bill  to  introduce  an  alteration,  the  directors  had  been  de- 
feated and  the  bill  thrown  out. 

A  Shareholder  asked  whether  the  guarantee  fund  was  a  distinct  fund. 

Mr.  Brooking  replied  in  the  affirmative,  and  added  that  it  was  to  all 
intents  and  purposes  a  part  of  the  working  capital  of  the  bank. 

The  Chairman  said  it  would  be  better  understood  if  this  fund  were 
temed  the  reserve ;  but  the  deed  of  settlement  described  it  as  a  guarantee 
fond  to  eqnalise  dividends,  and  the  directors  had  no  choice  but  to  follow 
that  example. 

The  proceedings  terminated  with  votes  of  thanks  to  the  chairman  and 
directors  for  the  able  and  successful  manner  in  which  they  had  conducted 
the  affairs  of  the  bank,  and  to  the  manager,  secretary,  and  other  officers  for 
their  efficient  services. 


BANK  OF  LONDON. 

T^  eighteenth  general  meeting  of  the  shareholders  in  this  bank  was  held 
on  the  19th  January,  at  ^e  London  Tavern ;  Sir  J.  V.  Shelley,  M.P.,  in 
the  chair. 

The  Secretary  (Mr.  0.  J.  H.  Allen)  having  read  the  notice  convening 
the  meeting,  the  following  report  and  statement  of  accounts  were  pre- 

"  By  the  annexed  statement  of  accounts,  made  up  at  the  conclusion  of 
the  DMt  half  vear  which  the  directors  have  now  the  pleasure  of  submitting, 
it  wm  be  seen  that  the  balance  of  profit  amounts  to  £101,272.  2s.  2d. 


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184  Bank  of  London. 

After  payment  of  interest  upon  the  new  shares,  liquidating  the  current  ex« 
penses,  including  a  gratuity  to  the  clerks  of  the  establishment  of  10  per 
cent,  upon  the  amount  of  their  respective  salaries,  making  full  proTision 
for  all  bad  or  doubtful  debts,  and  allowing  for  rebate  of  interest  on  bills 
discounted  not  yet  due,  there  remains  for  disposal  the  sum  of  £62,719. 13s.  6</. 
The  directors  declare  a  dividend  at  the  usual  rate  of  £10  per  cent,  per 
annum,  and  a  bonus  of  £2.  lOs.  per  share,  amounting  together  to  £20 
per  cent,  per  annum,  both  free  of  income  tax,  and  they  transfer  £30,000 
to  the  reserve  fund,  which,  with  the  addition  of  £136,670  received  in 
respect  of  the  new  shares  now  amounts  to  £296,570.  The  balance,  viz., 
£2,505.  45.  Bd.,  is  carried  to  the  credit  of  profit  and  loss  account  of  the 
current  half-year.  The  shareholders  will  be  called  upon  on  this  occasion 
to  elect  an  auditor,  in  the  place  of  Mr.  Alfred  Lamb,  whose  resignation  has 
been  received.  Mr.  Francis  Nalder,  a  duly  qualified  shareholder,  has 
given  notice  that  he  is  a  candidate  for  the  vacant  office." 

Liabilities  and  Assets,  December  31,  1864. 

Dr. 

Capital  paid  up      £300,000    0     0 

Amount  received  on  account  of  new  shares      97,550    0     0 

Reserve   fund   £  J  30,000;  ditto,    premiums   on    new  shares 

£130,670  266,570    0     0 

Amount  due  by  the  bank  on  curren  t  deposit  and  other  accounts  4,3 1 4,967  16  0 
Profit  and  loss  account,  after  payment  of  £45,108.  Ss,  2d.  to 

customers  for  interest  on  their  balances 101,272    2     8 


£5,080,359  18    2 


Cr. 

Investments,  viz. : — ^in  Government  securities,  India  bonds,  &c.  £227,622  11  2 
Ditto,  in  freehold  premises  in  Threadnecdle  Street,  let  at  a 
rental  yeilding  4^  per  cent.  £40,000 ;  freehold  premises  in 

the  occupation  of  the  bank  £35,000        75,0r0  0  0 

Bills  discounted,  loans  &c 4,029,881  11  2 

Cash  in  hand,  and  at  call 747,641  7  1 

Lease  and  buildings  at  Charing  Cross  branch,  farnitare,  &c.  214  8  9 

£5,080,359  18  2 


Prqfit  and  Loss  Account  for  the  Half-year  ending  December  Slat,  1864. 
Dr. 

Half  a  year's  current  expenses,  at  head  office  and  Charing 
Cross  branch,  bad  and  doubtful  debts,  directors*  remune- 
ration, &c 

Interest  upon  instalments  of  new  shares  

Rebate  of  interest  on  bills  discounted  not  yet  due,  carried  to 
profit  and  loss  new  account 

Charing  Cross  branch  lease  account      

Dividend  for  the  half-year  at  the  rate  of  £10  per  cent,  per 
annum ...        ...        ...        ...        ...        ...        .,. 

Bonus  at  the  rate  of  10  per  cent,  per  annum,  or  £2.  10^.  per 
share    ...        ...        ...        ...        ...        

Half-year*s  interest  on  the  reserve  fund  at  £4  per  cent,  per 
annum  £2,600  ;  amount  now  added  thereto  £27,400 

Balance  carried  to  profit  and  loss  new  account 


£25,895  13 
3,90S  0 

1 
0 

8,754  15 
214  8 

8 
9 

15,000  0 

0 

15,000 .  0 

0 

S0,000  0 
2,505  4 

0 
8 

£101,272  2 

9 

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Bank  of  London.  185 

o. 

Bftljince  of  profit  brought  from  U^t  half-year  £11,321.  %t.  Zd.\ 

ditto,forcuneut  half-year  £89,950.  15*.  lid £101,272    2     2 


Reserve  Fu>'d  Account. 
Balance        £200,570     0     0 


Cr. 

Amount  from  last  half-year  £130,000  0  0 

Preminms  received  on  new  shares         13*3,570  0  0 

Additions  brought  down 30,000  0  0 

£296,570  0  0 


The  Chairman,  in  moTing  the  adoption  of  the  rei)ort,  Haid  that  he  did  ao 
with  great  pleasure,  and  he  supposed  that  the  Bhareholdera  would  hardly 
complain  that  very  little  variation  was  necessary  in  his  observations  so  long 
»  he  only  had  to  congratulate  them  upon  the  success  of  the  undertaking. 
(Hear,  hear.)  They  would  observe  that  the  sum  of  £97,550  had  been  re- 
ceived on  1,951  new  shares,  and  that  £136,570  had  been  a<lded  to  the  reserve 
fond.  There  were  forty-nine  new  shares  unappropriated,  owing  to  frac- 
tional parts  in  the  allotments,  and  when  those  were  sold,  a^  they  would 
shortly  be,  the  capital  of  the  bank  would  stand  at  £400,000,  and  the 
reserve  fond  at  £300,000.  That  had  been,  as  they  were  well  aware,  the 
great  object  of  the  directors,  and  he  was  bound  to  say  that  they  had  re- 
ceived from  the  shareholders  the  greatest  possible  aj^istance  and  co-opera- 
tion, and  the  result  had  been  the  establishment  of  a  reserve  fund  which 
must  secure  to  them  the  confidence  of  the  public.  Without  pretending  to 
prophecy  what  would  be  their  future  career,  he  was  justified  in  expressing 
a  hope  that,  provided  they  continued  to  conduct  their  business  in  the  same 
pniiiait  and  cautious  way  as  they  had  hitherto  done,  they  might  look 
forward  with  confidence  to  an  increased  dividend  for  the  future.  (Cheers.) 
He  was  quite  sure  that  if  ever  a  doubt  could  have  arisen  in  the  minds  of 
the  shareholders  as  to  the  desirability  of  setting  aside  a  large  guarantee 
fond  for  so  institution  such  as  this,  the  monetary  crisis  from  which  they 
were  now  emerging  must  have  had  the  e£fect  of  utterly  dispelling  such 
doabts.  fie  looked  upon  the  price  at  which  their  shares  stood  in  the  market 
as  the  barometer  by  which  they  might  judge  of  the  public  feeling  with 
regard  to  the  bank,  and  bethought  that  the  shareholders  must  be  perfectly 
■a^sfied  upon  that  point.  In  fact,  there  never  had  been  a  period  in  which 
the  joint-stock  banks  of  the  metropolis — that  is  to  say,  those  which  are 
well  conducted — stood  higher  in  the  public  estimation.  (Hear,  hear.)  At 
the  same  time  they  must  always  be  prepared  for  stormy  weather,  and  the 
heads  of  this  establishment  had  always  felt  that  not  only  the  shareholders 
but  the  public  out  of  doors  were  deeply  interested  in  their  success,  because 
ihoold  any  difficulty  arise,  the  public  as  well  as  the  shareholders  were 
liable  to  suflfor ;  and  it  was,  therefore,  the  duty  of  the  board  in  conducting 
the  business  of  thi^  large  institution  to  look  to  the  interest  of  the 
pablic  as  weU  as  to  that  of  those  immediately  connected  with  the  bank. 
The  boarti  firmly  believed  that  the  policy  which  they  had  adopted  of 
looking  rather  to  the  future  than  to  the  present  had  been  attended  with 
great  aucoess,  and  that,  with  their  large  reserve  fund,  they  might  look  for- 


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186 


Bank  of  LmuUm. 


ward  without  any  dread,  oome  what  might.  (Cheers.)  No  doabt  the 
price  of  money  had  been  extremely  high  during  the  past  half-year,  fie 
need  not  say  that  when  that  is  the  case  institutions  of  this  kind 
have  more  difficultieB  to  encounter,  and  require  more  care  and  cau- 
tion in  their  management.  It  may  be  noticed  that  to  a  small 
extent  their  figures  were  reduced,  but  the  answer  of  the  direc- 
tors was  that  in  such  a  crisis  as  that  which  they  had  passed  through 
it  was  necessary  to  draw  in  their  horns  rather  than  to  extend  their  business, 
whatever  might  be  the  temptation  offered  by  the  high  prioe  of  money,  and 
thereby  to  increase  their  risk.  (Hear,  hear.)  Tlutt  was  a  policy  which 
they  had  steadily  pursued  during  the  whole  period  of  the  crisis.  His 
colleagues  and  himself  had  had  many  anxious  moments,  but  they  now 
looked  back  upon  the  proceedings  of  the  last  half-year  with  pleasure,  for 
although  they  could  not  go  so  far  as  to  say  that  they  were  entirely 
unscathed  from  the  numerous  failures  that  had  taken  place,  yet  the  sum 
which  it  had  been  necessary  to  set  apart  for  bad  debts  was  one  wholly 
insignificant.  (Cheers.)  Under  those  circumstances  he  hoped  that  he 
was  not  taking  uiK>n  himself  too  much  when  he  said  that  the  boud 
met  the  proprietary  under  the  most  fayourable  auspioies  on  the  present 
occasion.  He  therefore  begged  to  conclude  by  moving  the  adoption  of 
the  report. 

Mr.  Frith  seconded  the  motion* 

Mri  E.  Tyrrell  said  that  the  best  thanks  of  the  shareholders  were  due 
to  the  directors  and  managers  of  the  company  for  the  mode  in  which  they 
had  conducted  the  affairs  of  the  bank  during  the  last  six  months,  whi<ui 
was  acknowledged  upon  all  hands  to  have  been  one  of  the  most  trying 
periods  of  our  commercial  history.  At  the  same  time  he  wished  to  make 
an  inquiry  with  respect  to  the  course  which  the  board  proposed  to  pursue 
in  future.  He  belieTed  himself  that  the  sum  of  £300,000  that  had  been 
set  apart  as  a  reserve  fund  was  quite  ample  for  the  purpose  of  satisfying 
the  public,  but  having  arrived  at  that  position  he  hop«d  that  the  directors 
would  look  more  to  the  interests  of  the  shareholders  than  they  had 
hitherto  done  (thoiu^h  he  would  be  the  last  man  in  the  world  to  say  that 
they  had  disresarded  their  intereets),  and  divide  among  them  the  amount 
which  they  had  hitherto  placed  to  the  credit  of  the  reberve.  As  a  matter 
of  fact,  he  did  not  think  that  the  confidence  of  the  public  would  be  one 
whit  increased  whether  the  reserve  was  £400,000  or  i&00,000,  but  he  did 
think  that  the  future  earnings  of  the  bank,  alter  payment  of  all  current 
claims,  should  be  devoted  to  increasing  the  dividends,  and  thereby  raising 
the  value  of  the  shares.     (Hear,  hear.) 

A  Shareholder  alluded  to  a  rumour  that  the  bank  had  made  a  very  large 
bad  debt  in  reference  to  the  account  of  their  late  auditor,  Mr.  Alfred 
Lamb,  and  inquired  whether  there  l^as  any  truth  in  it. 

The  Chairman  said  that  he  was  very  glad  the  question  had  been  put, 
because  he  also  had  been  informed  of  a  variety  of  rumours,  and  the  real 
facta  only  showed  how  little  such  rumours  were  to  be  r^ed  on.  The 
directors  had  gone  very  carefully  into  the  account  of  Mr.  A.  Lamb,  and  it 
would  be  satisfactory  to  the  shareholders  to  inform  them  that  the  bank 
would  sustain  no  loss  whatever  upon  that  account.  (Cheers.)  While  the 
board  looked  to  the  shareholders  to  appoint  proper  and  effective  auditors 
they  invariably  made  it  a  rule  to  be  specially  careful  in  respect 
to  the  account  of  any  officer  of  the  bank,  and  if  they  had  happ&ed 
to    have    sustained    any  loss    upon    Mr.   Lamb's    account,    no    one 


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Bank  of  London.  187 

wtmld  regret  it  more  than  the  board.  At  the  eame  time,  while 
ibey  were  always  liable  to  make  losBes,  it  was  aatisf  actory  to  the  board 
to  \»e  able  to  state  that  none  had  been  made  in  this  instance.  (Cheers.) 
'^  itb  Teferenoe  to  the  question  which  Mr.  Tyrrell  had  brought  before  them^ 
be  might  remark  that,  as  they  all  rowed  in  the  same  boat,  it  was  not  likely 
that  any  one  on  his  (Sir  J.  Shelley's^  side  of  the  table  would  object  to 
reoeiTe  a  large  dividend,  and  the  only  exception  which  he  took  to  the 
observations  o£  his  hon.  friend  was  that  he  insinuated  that  the  directors 
did  not  look  sufficiently  after  the  interests  of  the  shareholders.  He  con- 
tended  that  the  course  they  had  pursued  was  eminently  in  the  interest  of 
the  shareholders,  though  he  refused  to  give  that  title  to  persons  who 
booght  into  the  company  with  the  sole  view  of  selling  out  when  the  shares 
were  £2  or  £3  higher  than  when  they  bought  in.  (Hear,  hear.)  He  stated 
baldly  that  the  course  they  had  taken  in  forming  such  a  reserve  fund  that 
noihmg  could  affect  them,  was  a  course  which  was  highly  conducive  to  the 
best  interests  of  the  shareholders.  At  the  same  time,  having  attidned  the 
position  to  which  they  had  aspired,  the  question  as  to  any  further  increase 
of  the  reserve  fund  would,  as  was  stated  in  a  circular  issued  last  year, 
receive  the  grave  consideration  of  the  board.  He  would  not  pledge  the 
directors  that  there  should  be  no  further  increase  whatever,  beokuse,  in 
the  first  place  there  would  be  the  interest  of  the  £300,000  reserve  fund, 
which  would  naiuraUy  be  added  to  it,  but  he  thought  that  if  all  other 
qrenmatanoes  justified  it,  and  their  prudent  course  of  policy  was  attended 
by  the  same  successful  results,  the  directors  would  probably  have  to  oon- 
ttder  the  MLpediency  of  offering  an  increased  dividend,  though  he  reminded 
the  meetiiig  that  there  would  be  little  to  complain  of  if  it  was  as  good  as 
VIS  now  ofiered.     (Cheers.) 

Mr.  Boiiie,  one  of  the  auditors,  confirmed  the  statement  of  thechairman^ 
that  not  one  penny  loss  had  been  sustained  by  the  bank  on  Mr,  Alfred 
LamVs  account.  The  attention  of  himself  and  his  co-auditor  had  always 
been  called  more  particularly  to  Mr.  Lamb's  account,  he  being  an  auditor, 
and  he  was  perfectly  satisfied  that  no  loss  could  be  sustained  upon  it.  He 
beUered  the  rumour  arose  out  of  a  statement  in  a  circular  which  had 
reference  to  the  wine  trade ;  but  although  there  might  be  a  loss  in  the  wine 
trade  in  eonaequenoe  of  his  operations,  there  was  none  to  this  bank. 
(Cheers.)  He  (Mr.  Bone)  was  also  happy  to  be  able  to  state  that  the  com- 
paratively small  sum  set  apart  to  cover  bad  debts  would  more  than  cover 
them ;  a  fact  which  must  he  very  gratifying,  considering  the  extraordinary 
commercial  crisis  through  which  they  had  passed.  He  felt,  and  had  felt 
from  the  oommencem^t,  that  the  officers  were  always  on  the  alert,  and 
although  they  might  have  made  larger  profits  they  chose  wisely  and  cau- 
tiously rather  to  do  a  steady  and  safe  business  than  to  jeopardise  what  they 
had  already  gained 

Mr.  Haywood  considered  that  the  reply  given  by  the  chairman  to  Mr. 
'^rrrell  was,  on  the  whole,  satisfactory  ;  but  thought  that  after  the  disiinct 
itatemeot  in  a  circular  issued  in  April  last,  the  directors  ought  to  divide  all 
the  surplus  profit  after  raising  the  reserve  fund  to  £300,000. 

The  Chairman  quite  agreed  that  they  had  arrived  at  a  period  when  the 
reMTvefond  would  not,  according  to  the  words  ^n  the  circular  alluded  to, 
require  to  be  increased  to  any '* considerable  extent"  out  of  the  future 
profiti,  ^  under  ordinary  ciroumstancea ; "  but  he  could  not  pledge  himaelf 
to  ittf  not  being  increased  at  all.  The  ahareholders  must  place  confidence 
in  the  board,  and  give  them  credit  for  doing  what  was  for  the  real  interest 


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188  Consolidated  Discount  Company, 

of  the  company,  and  depend  upon  it  they  would  endeaTOur  to  do  ample 
justice  to  the  shareholders,  always  bearing  in  mind  the  deep  respomubilitieB 
under  which  the  directors  acted. 

A  Shareholder  asked,  with  respect  to  the  Charing  Cross  Branch  account, 
whether  the  lease  had  expired  and  the  debt  extinguished. 

The  Chairman  said  that  the  board,  foreseeing  that  those  premises  were 
likely  to  become  extremely  valuable,  owing  to  the  Charing  Cross  Railway 
coming  there,  had  succeeded  in  procuring  a  renewal  of  the  lease  for  69 
years  at  a  merely  nominal  addition  to  the  rent.     (Cheers.) 

Mr.  Thompson  (auditor)  confirmed  the  statement  of  Mr.  Bone  as  to  the 
bank  being  do  loser  on  Mr.  Lamb's  account. 

Mr.  Baxter  made  some  observations  in  support  of  the  view  taken  by 
Mr.  Haywood  with  reference  to  the  division  of  net  profits,  now  that  the 
reserve  fund  had  reached  the  siun  of  £300,000,  and  referred  to  the  posi- 
tion of  the  London  and  Westminster  Bank  and  the  Union  Bank  in  jujatifi- 
cation  of  such  a  course. 

The  Chairman  reminded  the  hon.  proprietor  that  this  bank  had  started 
as  a  competitor  to  older  institutions ;  and  it  was  above  all  things  necessary 
for  it  to  adopt  such  a  course  of  policy  as  would  gain  for  it  the  public  con- 
.  fidence,  and  place  it  on  the  same  footing  as  the  older  banks.    They  had 

^  now  attained  that  position  ;  and  though,  he  repeated,  he  would  pledge  the 

«  board  to  nothing,  he  had  no  hesitation  in  saying  that  if  everything  went 

(  on  as  well  as  it  had  done  hitherto,  it  would  be  the  duty  of  the  directors 

i  fairly  and  properly  to  consider  the  interests  of  the  shareholders.  (Cheers.^ 

I  The  report  and  statement  of  accounts  were  then  unanimously  adopted, 

and  the  dividend  declared,  payable  on  the  26th  instant. 

On  the  motion  of  Mr.  Tyrrell,  seconded  by  Mr.  J.  Evans,  Mr.  F. 
Kalder  was  unanimously  elected  auditor  in  the  room  of  Air.  Lamb, 
resigned. 

Mr.  Nalder  having  returned  thanks, 

Mr.  Tyrrell  proposed,  and  Mr.  Beach  seconded,  a  vote  of  thanks  to  the 
chairman  and  directors  for  their  able  and  efficient  services  during  the  past 
half-year. 

The  Chairman  having  returned  thanks, 

Mr.  Hughes  proposed,  and  Mr.  Love  seconded,  a  vote  of  thanks  to  Mr. 
Marshall,  Mr.  Allen,  and  the  staff  of  officers. 

Mr.  Marshall  having  responded  to  the  compliment,  the  proceedings 
terminated. 


CONSOLIDATED  DISCOUNT  COMPANY,  LIMITED. 

This  company  held  its  first  ordinary  general  meeting,  on  the  20th  January, 
j  at  the  London  Tavern  ;  Mr.  T.  S.  Kichardson  in  the  chair. 

The  following  is  the  directors'  report  and  statement  of  accounts : — 
''  The  annexed  balance-sheet  contains  a  statement  of  the  accounts  of  the 
company  made  up  to  the  dlst  December,  1864.  The  balance  carried  to 
the  credit  of  profits,  after  payment  of  all  current  expenses,  amounts 
to  £14,681.  2^.  6d. ;  against  this  amount,  however,  the  directors  regret 
having  to  write  off  a  sum  of  £15,940. 14^.  3<i.  from  losses  by  bad  debts, 
leaving  £1,259. 11«.  lOd.  to  be  carried  to  the  debit  of  next  year's  account. 
While  regretting  this  result  of  their  first  balance-sheet,  the  directors 
woidd  remind  the  shareholders  that  the  past  year  has  been  one  of  great 


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Consolidaied  Discount  Company.  189 

CDiamercial  distress,  and  has  been  characterised  by  frequent  flactnationsin 
tlte  Talue  of  money.  In  justice  to  the  committee  of  management,  the 
directors  feel  boand  to  state  that  the  principal  bad  debts  have  arisen  from 
the  failure  of  firms  who  had  previously  enjoyed  good  credit,  and  were  re- 
puted to  be  of  the  highest  respectability.  During  the  pajst  year,  the 
expenses  of  niATiagement  have  been  greatly  reduced  by  the  retirement  of 
two  members  of  the  erecutive  committee ;  arrangements  have  consequently 
been  made  for  carrying  on  the  business  of  the  company  at  a  very  consider- 
ably less  annnal  oost.  In  conclusion,  the  directors  have  to  express  their 
unabated  confidence  in  the  future  oi  the  company,  and  anticipate,  when 
next  they  meet  the  shareholders,  to  show  a  very  different  result.  In 
accordance  with  the  articles  of  association  the  following  directors  (being 
the  whole  board)  retire  from  office,  and  offer  themselves  for  re-election  : — 
Tbos.  S.  Richardson,  Esq. ;  F.  J.  Sargood,  Esq. ;  G.  W.  Constable,  Esq. ; 
0.  Denny,  Esq. ;  James  Thompson,  Esq. ;  William  M' Arthur,  Esq. ; 
William  Little,  £sq. ;  H.  F.  Sandeman,  Esq. ;  and  S.  Baker,  Esq.  The 
auditors,  James  Cooper,  Esq.,  and  Whitbread  Tomson,  Esq.,  also  retire, 
and  offer  themselyes  for  re-appointment." 

BcUanee'Sheetf  3lst  December,  1864. 
Or. 
Capital  aoconnt — 362  shares  £20  paid  £7,240;  8,833  shares 
£10  paid   £88,330— £95,570 ;   less    unpaid    call    £20— 

£95,550;  125  shares  forfeited,  £10  paid  £1,250 £96,800    0     0 

l^«as,  deposits,  &c 1,977,316  19    7 

^Bslance  canied  to  profit  and  loss  account         18,573  17    9 

£2,092,690  17    4 


luTenments  in  Exchequer  bills,  Consols,  and  cash  in  bankers' 

liuids £76,089  19    4 

^nU  aiscoonted,  advances,  &c 1,995,438    8     2 

^^jmcfttto  Messrs.  Sandeman,  Sanderson,  and  Ck).,  for  pur- 

dttae  of  their  business         19,500    0    0 

^Vdiminaiy  expenses,  inclading  furniture  and  fittings  for 

offices  ...  2,662    9  10 

£2,092,690  17     4 

Pbofit  and  Loss  Aooouvr. 

Dr. 
Canent  expenses,  including  salaries,  rent,  charges  on  business, 

*c»   ...    •••    •••   •••    ••   •••   •••   ••• 

Allowaoee  for  bad  and  doubtful  debts 


Cr. 

Balance  of  gross  profits  brought  down 

Btlaace  carried  to  the  debit  of  profit  and  loss  new  account 


£8,898  16 
16,940  14 

4 
8 

£19,833    9 

7 

£18,573  17 
1,259  11 

9 
10 

£19,833    9 

7 

vol*.  XXV. 


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190 


Consolidated  Discount  Company, 


The  Chairman,  in  moring  the  adoption  of  the  report,  obi^nred  that 
when  the  company  started  a  year  ago  it  was  in  the  anticipati<Nk  of  very 
different  results  from  those  which  they  had  now  to  announce.  At  the 
same  time,  when  they  considered  the  commercial  crisis  which  liad  oharao- 
terised  the  last  six  months,  no  commercial  man  could  he  surprised  at  the 
losses  which  had  heen  incurred,  or  feel  that  the  managing  committee 
ought  to  he  hlamed  for  them.  They  had  not  rushed  indiscriminately  into 
the  discount  market,  or  discounted  paper  for  parties  who  were  not  at  the 
time  helieved  to  be  worthy  of  credit,  but  all  their  losses  had  arisen  from 
the  failure  of  firms  whose  respectability  six  months  ago  was  undoubted, 
and  whose  acceptances  would  have  been  taken  by  any  discount  house  in 
the  City  of  London.  He  knew  that  there  was  an  impression  abroad  that 
when  money  was  at  a  high  rate  discount  houses  made  large  profits,  and  it 
might  be  complained  that,  considering  the  high  yalue  of  money  daring 
the  period  over  which  the  present  accoimts  extended,  their  profits  ought 
to  have  been  considerably  more.  But  the  discount  houses  were  reidly 
nothing  more  than  the  agents  between  the  lending  and  the  borrowing 
public.  When  money  was  at  a  high  rate  they  had  to  pay  to  the  depositors 
a  high  rate  of  interest  for  it,  while  on  the  other  hand,  that  high  rate 
reduced  the  demand  for  discoimt.  It  might  be  further  said  that  the  hiffh 
rate  of  money  at  least  enabled  them  to  realise  large  profits  upon  the 
capital  of  the  company ;  but  that  was  not  the  case,  seeing  that  £75,000, 
which  represented  the  whole  of  their  ayailabte  capital,  was  invested  in 
Exchequer  bills  and  Consols,  or  included  in  the  cash  balance  in  their 
bankers'  hands.  As  they  were  aware,  upon  the  money  at  the  bankers' 
they  got  no  interest,  while  the  Consols  and  Exchequer  bills  yielded  only 
about  3  per  cent.,  so  that  their  profits  must  necessarily  come  out  of  the 
difierence  between  the  rate  at  which  they  borrowed  money  and  that  at 
which  they  I6nt  it.  Although  they  were  unable  on  the  present  occasion  to 
make  any  dividend,  he  had  every  reason  to  hope  for  a  more  favourable 
result  at  their  next  meeting.  He  ought  to  add  that  up  to  the  1st  October 
they  had  made  but  one  bad  debt,  and  that  amounted  to  no  more  than  £43 
or  £45,  of  which  they  had  already  received  £37.  (Hear.)  The  entire 
bulk  of  the  losses  had  arisen  in  October  and  November,  and  as .  he  had 
said  from  the  failure  of  firms  whose  respectability  had  up  to  that  time 
been  imquestioned.  In  reference  to  the  price  paid  for  the  business,  he 
might  state  that  such  was  the  confidence  of  Messrs.  Sandeman  and 
Sanderson  in  it,  that  they  had  taken  more  than  half  the  amount  of  the 
purchase  in  shares,  and  were  now  by  far  the  largest  partners  in  the  con- 
cern. (Hear.)  Following  the  example  of  the  chairman  at  a  meeting  of 
a  similar  company  held  the  other  day,  he  desired  to  assure  the  proprietors 
that  the  ConBolidated  Discount  Company  had  not  given  any  acceptances, 
not  because  they  had  not  had  the  opportunity  of  doing  so,  but  because  the 
directors  held  that  it  was  not  the  business  of  a  discount  house  to  g^ve 
acceptances,  but  to  confine  its^  to  the  legitimate  business  of  borrowing 
money  on  the  one  hand,  and  lending  it  out  again  at  a  profit  on  the  other. 
They  had  purposely  made  the  worst  of  the  case,  and  he  had  no  doubt  they 
would  be  able  to  present  a  more  satisfactory  statement  next  timo.  (Hear, 
hear.) 

Mr.  Sargood  seconded  the  motion. 

The  Chairman  having  invited  discussion  and  ofiered  to  answer  all  in- 
quiries that  might  be  put  to  him,  a  series  of  questions  were  asked  by  various 
sharehcddera,  amongst  them,  how  it  was  that  only  9,000  shares  were  issued 


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Connolidaied  Diftcount  Company,  191 

out  of  the  10,000  aathorised  ?  Whether  the  £16,940  allowed  for  bad  debts 
repreeented  merely  the  loseeg  ascertained  up  to  the  date  of  the  report,  or 
whether  it  iDclnded  lotoses  that  might  arise  from  bad  or  doubtful  bills  not 
vet  due  t  How  it  was  that  no  allowance  was  charged  for  rebate  of  current 
bills,  and  whether  such  rebate  had  been  calculated  ?  Why  the  125  shares 
on  which  £10  each  had  been  paid  were  put  down  as  forfeited  ?  On  what 
bada  the  chairman  rested  his  hopes  of  a  more  successful  future  ?  What 
were  the  names  of  the  respectable  firms  by  whose  failure  the  losses  had 
occarred,  and  whether  it  was  likely  anything  would  be  recovered  from  them  ? 
What  remuneration  the  directors  received  ?  W^hether  Messrs.  Sandeman 
and  Co.  had  been  paid  the  purchase  money  for  the  business  in  full  ?  What 
were  the  items  of  which  the  current  expenses  were  composed  t  And  what 
was  the  amount  of  the  over-due  bills  t 

In  reply,  the  Chairman  stated  that  it  would  be  scarcely  judicious  to  pub- 
lish the  names  of  the  parties  by  whose  failure  they  had  sustained  losses, 
but  he  shoold  be  happy  to  give  the  information  to  any  shareholder  apply- 
ing at  the  office  for  it.  The  amount  of  the  over-due  bills  was  about  £50,000, 
of  which  £12,000  were  upon  the  Leeds  Banking  Company,  and  would,  he 
presumed,  be  reoovered  in  full.  Six  months  ago  n6  one  would  have  said 
that  the  managing  committee  were  wrong  in  discotmting  bills  endorsed  by 
the  Leeds  Backing  Company.  (Hear.)  The  remainder  were  xv^n  various 
other  parties,  who  at  the  time  were  generally  considered  respectable.  The 
directors,  having  examined  these  bills,  and  calculated  the  amount  they 
might  expect  to  get  back  upon  them,  estimated  the  ultimate  loss  at  the  sum 
pat  down,  £15,940. 

A  Shareholder — Gladstone's  house,  I  believe,  is  one  of  those  by  which 
ve  have  sustained  losses  ? 

The  Chairman — Yes,  there  was  one  bill  of  Gladstone's,  but,  as  I  have 
said,  I  think  it  hardly  fair  that  we  should  be  called  upon  to  state  the  names 
publicly  here. 

Another  Shareholder — I  do  not  see  that  you  need  stand  upon  ceremony 
in  such  notorious  cases  as  those  of  the  Leeds  Bank  and  Messrs.  Gladstone. 
(Cheen.) 

The  first  Shareholder — Has  there  not  been  also  a  large  loss  fnHn  the 
foflure  of  Mr.  Solomons  ? 

The  Chairman — There  has.     No   doubt  we  have  a  large  amount  of 

Mr.  Solomons'  paper;    but  I  am  sure  no  discount-house  would  have 

refused  to  take  that  paper  when  we  did,  and  had  it  not  been  for  the  fraud 

committed  upon  him  he  woidd  not  have  failed,  but  would  have  been  going 

on  now.    We  had  only  one  of  Gladstone's  bills.    Now  that  you  know  the 

names  by  which  we  have  sustained  the  f;reater  part  of  the  losses,  you  will^ 

I  think,  admit  that  I  was  perfectly  justified  in  saying  that  they  were  those 

of  respectable  parties  when  we  discounted  their  pax>er.     With  regard  to 

the  forfeited  shares,  some  few  of  the  shareholders  failed  to  pay  Uie  last 

call  of  £2  per  share  at  the  time  fixed,  and  the  directors  wrote  to  them  that 

unless  they  paid  before  a  certain  later  date  the  sliares  would  be  declared 

forfeited.    Some  did  pay,  but  a  few  did  not.    These,  upon  finding  that  the 

afcares  were  forfeited,  applied  to  have  them  re- allotted  to  them,  which  the 

board  consented  to  do  on  the  payment  of  a  small  fine.    Those  who  did  not 

ptj  the  fine  of  course  would  not  have  their  shares  back.    With  regard  to 

the  issuing  of  the  shares,  he  thought  the  directors  had  exercised  a  \exj 

wiie  SscrMoD,  BSid  it  might  have  been  better,  perhaps,  if  they  had  not 

inned  quite  bo  many  as  they  had,  as  in  that  case  so  many  would  have 


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192  IfUemational  Financial  Company, 

been  forced  upon  the  market.  Bnt  the  board,  in  dealing  with  the  appli- 
cations, knowing  that  there  were  many  persons  who  were  in  the  habit  of 
applying  for  shares  merely  in  order  to  realise  an  immediate  profit  by 
selling  them  at  a  premium  in  the  market,  only  allotted  to  persons  who 
were  likely  to  take  them  as  an  investment,  and  not  as  mere  speculators. 
Ko  donbt,  had  the  rebate  on  current  bills  been  charged,  the  balance-sheet 
would  have  shown  a  larger  loss ;  but  the  auditors,  one  of  whom  was  a  pro- 
fessional man,  and  the  other  a  manager  of  a  bank,  thought  it  better  that 
the  accounts  should  be  made  out  as  &ey  were.  The  amount  of  the  rebate 
had  been  calculated  at  £7,000. 

A  Shareholder  thought  that  the  auditors  had  not  done  their  duty  in  not 
insisting  that  the  rebate  should  appear.     (Hear,  hear.) 

The  Chairman  continued — The  basis  of  his  hopes  for  the  future  was  the 

good  business  they  had,  and  which,  had  it  not,  in  an  exceptional  year, 

made  some  exceptional  losses,  would  have  shown  a  very  handsome  profit 

in  the  present  balance-sheet.     (Hear,  hear.)     They  were  now  doing  a  very 

good  business,  and  it  had  doubled  since  this  time  last  year.     (Hear,  hear.) 

The  directors  had  not  taken  any  remuneration  for  their  services,  although, 

having  worked  for  the  company  to  the  best  of  their  ability,  they  felt  that 

they  were  entitled  to  it.    But  they  preferred  to  leave  that  matter  to  the 

shareholders.     The  entire  of  the  purchase  money  for  the  business  had  been 

paid,  £11,000  in  shares,  which  were  still  held  by  Messrs.  Sandeman  and 

Sanderson.  The  current  expenses  were  composed  of  rent  of  offices,  salaries, 

and  so  forth.    Messrs.  Sandeman  and  Sanderson  were  the  members  of  the 

\  managing  committee  who  retired. 

*M  The  motion  adopting  the  report  was  then    put  and  carried  without 

^  opposition. 

'  1  The  Board  of  Directors  were,  on  the  motion  of  Mr.  King,  seconded  by 

another  proprietor  of  the  same  name,  re-elected  en  moMt,    The  seconder 
referred  to  the  early  difficulties  of  the  National  Discount  Bank  and  others 
of  the  first  monetary  establishments,  as  forming,  when  contrasted  with 
their  present  position,  ground  for  encouragement  in  their  own  case. 
\  The  Chairman  briefly  expressed  the  thimks  of  the  board  for  the  renewed 

confidence  of  the  shareholders. 

The  auditors  were  re-elected  after  a  short  explanation  from  Mr.  Cooper 
as  to  the  reasons  why  the  accounts  were  made  out  in  the  form  they  were. 

A  motion,  awarding  twenty  guineas  each  to  the  auditors  for  their  ser- 
vices, was  opposed  by  two  shareholders,  on  the  ground  that  there  was  no 
allusion  made  in  the  balance-sheet  for  rebate  on  current  bills,  but  on  a 
show  of  hands  the  original  motion  was  carried  by  20  to  12. 

A  vote  of  thanks  to  the  chairman  and  directors  closed  the  proceedings. 


) 


\ 


INTERNATIONAL  FINANCIAL  COMPANY. 

The  second  annual  meeting  of  this  company  was  held  on  the  21st  January, 
at  the  London  Tavern ;  Mr.  R.  A.  Heatii  in  the  chair. 

The  Secretary,  having  read  the  notice  convening  the  meeting,  read  the 
following  report  and  statement  of  accounts  : — 

**  The  accounts  made  up  on  the  basis  of  the  valuation  of  the  company's 
securities  at  the  market  price  on  the  31st  of  December  last,  show  a  net 
profit,  after  deducting  all  current  expenses,  of  £103,808.  lis.  2d.    The 


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International  Financial  Company. 


193 


directors  reoommend  that  this  amoimt  be  appropriated  as  follows  : — 1. 
£37,500  to  payment  of  interest  at  6  per  cent,  per  anniun  on  the  called-up 
capital,  whereof  one-half  (or  2a.  6d,  per  share)  was  paid  byway  of  interest 
on  aoconnt  in  Jnly  last.  2.  £37,500  to  bonus  of  6«.  per  share  to  make, 
with  the  half  of  the  above  interest  now  payable,  a  total  dividend  of  78. 6<i. 
per  share,  being  altogether  a  payment  of  10  per  cent,  per  annum,  free  of 
income  tax.  3.  £5,428.  4s.  9d,  to  reserve  fund,  in  conformity  with  Clause 
No.  25  of  the  Articles  of  Association,  raising  the  total  amount  of  this  fund 
to  £23,429.  4«.  2d.  This,  after  deducting  the  necessary  amount  for  income 
tax,  will  leave  a  balance  of  £20,919.  Us.  lid.  to  be  carried  forward  to  new 
aoooont." 


Dr. 


Balanee-sheet,  Zlst  December,  1864. 


Capital  account,  viz.— Deposit  of  £2.  10«.  per  share  on 
150,000  shares  £375,000 ;  first  call  of  £2.  lOf .  on  150,000 
shares  £375,000         

Bondry  creditors    ...         ...        ... 

Bills  payable  

Beserre  fond  

Profit  und  loss  balance  at  credit  of  this  accomit 


Cr. 

Cull  at  bankers,  in  hand,  and  on  deposit        

Sandry  debtors — For  advances  on  security,  &c. 

ffiUs  receivable,  in  hand 

Sondiy  investments  at  market  value     

Interest  at  the  rate  of  5  per  cent,  per  annum,  paid  July,  1864 


.  £750.000 

0 

0 

8,203  13  10 

247,421 

4 

10 

18.000  19 

5 

103,808  11 

2 

£1,127,434 

9 

3 

£49,284 

9 

8 

600,072 

2 

8 

6.075  18 

9 

.   453,251 

18 

2 

4    18,750 

0 

0 

£1,127,434 

9 

3 

Pr((/U  aTid  Lass  Aeeountfrom  \st  January  to  31«^  DecemheTf  1864 
Dr. 
Coneot  ezpenaes,  including  salaries,  directors*  allowances, 
rtatumery,  and  other  clutrges 


Bilaace,  cameid  to  balance-sheet 


£14,450  16    5 
103,808  11    2 

£118,259    7    7 


Cr. 

Sslance  of  profit  and  loss  account,  31st  December,  1863, 
£76,680.  19t.  bd.\  less  depreciation  on  securities,  then 
held,  since  partly  realised,  and  the  remainder  now  valued 
at  the  market  price  on  this  day,  £64,654.  16a.  2d. 

<>TO8S  profits  for  the  year  ending  31st  December,  1864 


£12,026    3 
106,233    4 


£118,299    7     7 


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5,428  4 

2,460  14 

20,919  11 

9 

6 

11 

£103,808  11 

2 

£108,808  11 

2 

£103,808  11 

2 

L94  International  Financial  Company, 

Proposed  appropriation  of  Balance  at  the  credit  of  Prqfit  and  Loss  Aceount, 
But  December,  1864. 
Dr, 

Interest  at  the  rate  of  5  per  cent,  per  annam  on  paid-up  capi- 
tal, for  the  six  months  ending  SOih  Jane,  paid  15th  July, 
jC  18,750 ;  interest  at  the  rate  of  5  per  cent,  per  annum  on 
paid-up  capital  for  the  six  months  ending  December  31  st 
£18,750 ;  honus  of  6s,  per  share,  by  way  of  additional 
diridend,  £37,500 ;  makmg  in  all  10  per  cent,  per  annum, 
free  of  income  tax      £75,000    0    0 

AjBonnt  carried  to  the  credit  of  reserve  fund,  as  per  Articles 
of  Association  No.  25,  raising  the  amount  of  this  fund  to 
£23,429.48.24 

Income  tax 

Balance  carried  to  profit  and  loss  new  account 


Cr. 

Balance  at  credit  of  profit  and  loss  account 


The  Chairman,  in  moving  the  adoption  of  the  report,  said  that  since 
they  last  met,  on  the  lat  of  March  last  year,  they  had,  as  they  all  knew, 
had  to  go  through  a  very  difiicult  time.  There  had  been  no  period  in  the 
year  1864  when  the  bank  rate  of  interest  had  been  below  6  per  cent., 
and  for  one  quarter  of  that  year  it  was  as  high  as  9  per  cent.  They  might 
very  well  imagine,  imder  those  circumstances,  the  difficulties  with  which 
financial  companies  had  had  to  contend.  A  financial  company,  as  he 
understood  the  term,  ought  to  have  facilities  beyond  the  use  of  its  own 
capital,  which  facilities  last  year  could  not  be  obtained  without  great 
sacrifice  by  issuing  debentures  at  a  high  rate  of  interest,  and  that  was  a 
course  which  they  did  not  think  it  was  prudent  to  adopt.  (Hear,  hear.) 
They  had  therefore  been  limited  in  their  operation  to  the  use  of  the 
capital  they  had  called  up — namely,  £750,000,  of  which  a  oonsiderable 
portion  was,  as  the  shareholders  were  told  at  the  last  meeting,  locked  up 
in  Hudson's  Bay  shares.  He  was  happy  to  be  able  to  inform  the  meeting 
that  they  did  not  now  hold  anything  like  the  same  number  of  Hudson's 
Bay  shares  as  they  held  on  the  occasion  of  the  last  meeting,  and  he  thought 
they  wotdd  think  with  him  that,  tinder  the  circumstances  to  which  he 
had  alluded,  a  profit  which  enabled  them  to  pay  a  dividend  at  the  rate  of 
10  per  cf)nt.  was  not  to  be  despised.  He  should  have  been  glad  if  the 
board  had  been  able  to  annoimce  a  larger  dividend,  but  on  the  whole  he 
thought  they  would  consider  it  a  ffood  one,  particularly  when  he  assured 
them  that  every  security  they  held  was  valued  on  the  31st  of  December 
last  at  the  lowest  price  of  the  day.  Since  that  time  they  had  sold  some 
few  things  out  of  the  list  at  a  profit,  and  none  of  them  below  the  price  at 
which  they  stood,  and  therefore  they  held  no  securities  whatever  in  which 
they  had  oot  the  most  perfect  confidence.  With  respect  to  the  high  rate 
of  the  bank  discount  to  which  he  had  alluded,  he  could  not  help  observing 
what  must  have  been  observed  by  every  one  conversant  with  monetary 
affairs,  namely,  that  taking  into  consideration  the  events  of  last  year, 


-^ 


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tke  whole  ooantry  had  been  preRerved  from  a  wide-spread  panio  and 
lenoua  diaasfeer  by  the  exoeeoingly  good   management  of  the  Bank  of 
SagUnd.    The  Bank  Act  had  work^  remarkably  well  all  through  tlie 
txyi&g  time  whidi  they  had  passed.    Since  the  last  meeting  this  company 
had  broo^t  oat  yarious  schemes  connected  with  public  companies,  which 
had  rendered  them  good  commissions.    He  was  not,  of  course,  at  libei-ty 
to  state  what  the  commissions  were  on  each  particular  scheme,  because 
the  businesB  was  not  exdusiTely  theirs,  but  belonged  to  other  companies. 
It  would  be  exceedingly  imprudent  to  give  any   particular  details  in 
respect  to  the  securities  which  they  held,  because  the  information  they 
gsTe  might  be  used  for  Stock  Exchuige  purposes,  and  could  do  no  good. 
(Hear,  hear.)     They  had  a  signal  proof  of  that  in  the  position  in  which 
the  Hudson's  Bay  property  stood  in  the  market  shortly  after  the  last 
meetii^.    If  this  board  had  not  stated  so  openly  as  they  did  the  exact 
number  of  shares  it  held  in  that  company,  the  public  would  not  have  felt 
that  them  was  a  sort  of  incubus  hanging  over  them,  and  that  the  market 
aiigfat  at  any  time  be  swamped  by  a  £urge  number  of  shares  being  thrown 
into  it.    As  a  matter  of  fact,  however,  the  shares  which  they  had  sold 
had  always  been  sold  on  a  rising  market,  and,  as  he  had  stated,  the  com- 
pany had  got  rid  of  a  considerable  portion  of  their  shares.    A  good  deal 
cf  misapprehension  existed  in  respect   to   one  of  the  operations  of  the 
oompany;    he  alluded   to  the  loan   made  to  the  Cordova  and  Malaga 
Baxlway  Company.     That  loan  was,  however,  guaranteed  by  five  first- 
nte  houea,  and  the  International   Company  had  their   bonds   for  all 
btUs  issued  by  them.    They  received  a  good  commission  and  a  fair  rate 
«f  interest  for  that  loan,  and  their  responsibility  ceased  at  the  end  of 
tbe  year.     It  was  not  a  loan,  as  was  stated,  and  generally  believed,  to 
the  Spanlsii  government,  but  a  loan  made  to  the  railway  company,  in 
order  to  enable  them   to  complete  their  works.     That  company  were 
entitled,  by  their  arrangement  with  the  Spanish  government,  to  a  sub- 
vention, irhich  was  divided  into  three  parts.     The  first  part  of  the  line 
had  been  completed,  and  the  sum  specified  in  the  subvention  had  been 
paid.    On  the  second  part  of  the  line  all  the  rails  had  been  laid  down, 
but  the  money  had  not  been  paid  because  some  difficulties  had  arisen  with 
respect  to  bsilasting  the  line,  and  most  likely  the  second  and  third  part 
of  that  subvention  would  oome  due  together,  and  without  the  assistance 
of  this  or  some  similar  institution,  the  Cordova  and  Malaga  Reilwav  Com- 
pass ooold  not  have  finished  the  line  in  time.    He  maintained  that  the 
operation  entered  into  by  this  company  in  respect  to  that  line,  so  far  from 
being  an  asaistance  to  the  Spanish  government,  had  in  reality  brought  a 
crauuderafale  pressure  to  bear  upon  it,    It  was  that  which  be  wished  par- 
ticolarly  to  draw  their  attention  to,  because  much  misunderstanding  had 
artien  upon  it.     Those,  he  oould  assure  them,  were  the  pure  and  simple 
iscts  of  the  caae.     (Hear,  hear.)    He  was  not  aware  that  he  need  advert 
to  any  other  particular  point,  but  he  should  be  happy  to  answer  any 
qnestiona  put  by  the  proprietors,  provided  they  were  questions  which  could 
be  answered  with  a  due  regard  to  the  interests  of  the  company.    He  con- 
cluded by  proposing  the  adoption  of  the  report,  and  that  a  dividend  of 
7t,  6d,  per  abaia,  free  of  income  tax,  should  be  declared  in  conformity  with 
tbe  same.     (Cheers.) 
Mr.  Morgan  aeoonded  the  resolution. 

Mr.  Panninier  thought  that  the  majority  of  the  shareholderB  would 
agne'with  him  that  the  balance-sheet  shoidd  show  the  exact  financial  posi- 


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tion  of  the  oompany,  and  he  complained  that  the  aooonntB  had  not  been 
rendered  in  sufficient  detail  to  enable  the  shareholders  to  form  an  opinion 
as  to  the  progress  of  the  institution.    All  that  they  could  asoertun  wafl 
that  advances  had  been  made  on  one  description  of  securities  to  the  extent 
of  £600,000,  and  on  another  description  the  market  value  of  which  was 
£450,000.    Now,  he  thought  that  if  that  was  all  the  information  vouch- 
safed hy  the  directors,  the  shareholders  would  in  reality  go  away  very  little 
wiser  than  they  came.      They  had  been  told  a  little  about  the  Malaga 
Railway  advance,  but  as  a  private  shareholder,  holding  200  shares,  he  did 
hope  that  in  future  no  advances  would  be  made  to  the  Spanish  government 
or  railways  in  any  shape  whatever ;    for  although  such  operations  might 
render  them  a  large  commission  and  a  high  rate  of  interest,  yet  he  thought 
that  the  Intwnational  Financial  Society,  which  was  second  to  none  in  the 
City  of  London,  lost  a  large  amount  of  prestige  through  such  operations. 
He  was  delighted  to  hear  that  the  Hudson's  Bay  investment  had  been 
reduced,  but  he  thought  a  little  more  information  on  that  subject  was  due 
to  the  proprietors.     Last  year  they  were  told  that  this  society  held  17»140 
shares  in  the  Hudson's  Bay  Company.     He  thought  they  ought  to  be  told 
whether  the  board  took  those  shares  voluntarily  as  a  speculation  of  their 
own,  or  whether  they  were  compelled  to  take  them  from  the  fact  of  the 
pubUc  not  applying  for  that  number.     He  had  been  told  that  it  was  a 
voluntary  act  on  Uie  part  of  the  board ;    but  if  so,  he  must  doubt  the 
wisdom  of  the  policy  which  induced  them  to  lock  up  so  large  an  amount  of 
their  capital  in  an  iuvestment  which,  whatever  may  be  the  intrinsic  value 
of  the  shares,  must  necessarily  be  somewhat  slow  in  its  character,  and 
which  could  only  yield  a  comparatively  low  rate  of  interest.    He  did  not 
want  to  press  too  much  for  details,  because  there  was  undoubtedly  some 
truth  in  the  remark  of  the  chairman  that  to  do  so  might  prejudice  the 
interests  of  the  society ;  but  inasmuch  as  a  shareholder  in  companies  in 
which  the  International  Financial  Society  held  shares  would  be  apt  to 
consider  that  the  company  in  question  must  be  perfectly  safe,  otherwise 
thikt  society  would  not  embark  in  it,  there  was  not  quite  so  much  danger 
in  the  chairman  giving  them  full  information  as  would  at  first  sight  appear. 
There  was  only  one  other  point  to  which  he  wished  to  call  the  attention  of 
the  directors,  and  that  was  as  to  the  expediency  of  holding  half-yearly 
meetings.     (Cheers.)     He  apprehended  there  would  be  no  difficulty  in 
doing  so,  because  he  observed  that  the  accounts  which  were  balanccKl  on 
the  31st  December  were  audited  and  completed  by  the  4th  of  January. 
He  concluded  by  expressing  his  thanks  to  the  directors  for  the  promptneffi 
with  which  they  had  sent  out  the  accounts. 

A  Shareholder,  who  spoke  from  the  body  of  the  room,  expressed  his 
satisfaction  at  the  manner  in  which  the  directors  had  conducted  the  afiairs 
of  the  association  in  the  trying  time  through  which  they  had  passed.  He 
did  not  concur  in  the  opinion  of  the  gentleman  who  had  just  spoken  with 
respect  to  the  propriety  of  making  their  investments  public.  It  might 
be  very  well  to  do  so  in  other  companies,  but  this  was  a  company  in 
which  the  shareholders  deposited  their  money  confidentially  in  the  hand* 
of  the  board  to  deal  with  it  in  no  particular,  specific  manner,  but  according 
to  the  best  of  their  judgment ;  therefore  they  ought  to  be  satisfied  when  the 
directors  came  before  them,  and  without  stating  the  precise  operations  in 
which  they  had  engaged,  assiured  the  proprietors  that  they  hadmade  abonA  ^d^ 
profit.  They  would  act  most  unwiselv  if  they  endeavoured  to  extract  from 
them  information  as  to  every  individual  operation  of  the  company.    ^  ^ 


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Bodeiy  snch  as  this  the  most  implicit  confidence  was  required.  Unless 
thfti  confidence  was  x>laced  in  the  oirectorB  no  business  at  all  would  be  done. 
This  was  entirely  a  question  of  confidence  in  the  management,  and  as  he 
bad  the  fullest  confidence  in  the  ability  and  integrity  of  the  board,  he 
must  oonfeea  that  he  differed  entirely  from  the  views  expressed  by  the  last 
speaker. 

The  Chairman  said  that  Mr.  Parminter  was  entirely  mistaken  in  sup- 
posing that  the  board  had  invested  their  capital  in  Hudson's  Bay  shares  as 
a  speculation.  The  gentlemen  who  brought  out  that  company  made  an 
arrangement  with  the  International,  the  terms  of  which  were  stated  at  the 
last  meeting.  By  that  arrangement  the  International  agreed  to  take  all 
their  £1 00  stock  at  £300,  and  to  issue  it  to  the  public  at  £400.  The  direc- 
tors of  the  Hudson's  Bay  Company  promised  to  use  all  their  influence  to 
obtain  the  whole  amount  of  the  stock  from  the  shareholders,  and  they  suc- 
ceeded (within  a  very  few  thousand  pounds)  in  obtaining  promises  to  transfer 
the  stock  from  their  shareholders  to  this  company.  Letters  were  sent  round 
sad  the  promises  obtained ;  but  the  obtaming  the  promises  to  transfer 
the  stock,  and  actually  transferring  into  the  name  of  this  company  so  as  to 
enable  them  to  deal  with  it,  were  two  different  things ;  because,  naturally, 
delay  arose,  and  when  the  day  of  allotment  came  it  was  found  that  there 
was  a  considerable  amount  of  stock  for  which  they  had  not  obtained  the 
legal  transfer,  therefore  the  company  were  obliged  to  keep  a  good  deal  of 
it  noUnM  voUns.  It  was  all  applied  for,  and  had  it  been  all  in  the  hands  of 
the  company  at  tlie  time  it  would  have  been  all  allotted.  The  statement 
therefore  that  the  directors  took  it  as  a  speculation  was  unfoimded.  (Hear, 
hear.)  The  Articles  of  Association  prescribed  an  annual  meeting,  but  gave 
the  board  the  power  of  calling  extraordinary  general  meetings,  aud  if  the 
Bbareholders  desired  it  they  would  be  happy  to  call  one  half-yearly. 
(Cheers.) 

M,  Villesboisnet  considered  it  would  be  very  imprudent  to  give  ex- 
planations  with  respect  to  the  details  of  the  society's  operations  at  their 
public  meetings,  and  thought  it  quite  sufficient  if  the  auditors  looked  care- 
fiflly  into  such  matters. 

The  Chairman  stated  that  the  minntest  details  of  every  transaction  were 
laid  before  the  auditors.     (Cheers.) 

Mr.  Josmhs  differed  entirely  from  Mr.  Parminter  in  the  observations 
he  had  made,  and  as  a  proprietor,  objected  to  having  his  property  depre- 
ciated by  gentlemen  who  came  there  with  the  view  of  putting  questions  to 
the  directors  in  reference  to  the  details  of  their  business.  He  trusted  that 
the  board  would  never  forget  that  besides  possessing  a  large  interest  in 
the  society,  they  were  also  trustees  for  those  who  had  invested  their  money 
in  it. 

Mr.  Bevan  complained  that  the  shareholders  had  no  materials  in  the 
report  or  statement  of  accounts  to  guide  them  to  anything  like  a  sound 
judgment  in  respect  to  the  policy  c^  the  investments  made  by  them.  He 
wished  to  know  whether  a  report  which  had  reached  him,  that  the  society 
had  lent  £200,000  at  £6  per  cent,  for  seven  years  to  the  Mauritius  Land 
Credit  Company,  was  true,  and  also  whether  they  had  advanced  a  la^ge 
Bom  of  money,  which  was  permanently  locked  up,  on  a  building  specula- 
tion in  Turin.  It  had  been  stated  to  him  that  before  the  seat  of  the 
Italian  government  was  removed  from  Turin  the  board  had  committed 
themselves  to  a  very  large  investment  in  that  city,  and  he  thought  that  in 
t  matter  of  thflt  gravity  the  shareholders  were  entitled  to  some  inf orma. 
tion* 


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198  International  Financial  Company. 

The  OhMrman  did  not  know  whether  he  ought  to  beoalled  on  to  answer 
the  qutintion  ftbout  the  Blauritius  Land  investment,  but  the  operation  was 
not  aticb  AS,  had  been  described  by  Mr.  Bevan.  They  had  entered  into 
Ao  QperatLoD  with  the  Mauritius  Land  Oompany,  for  which  they  had  re- 
coivcxl  a  gix)d  commission,  and  had  granted  certain  debentures  at  6  per 
cent.  The  operation,  which  in  the  opinion  of  the  board  was  a  very  good 
one,  wotiUJ  extend  over  a  number  of  years,  and  more  than  that  he  would 
rather  not  say.  (Hear,  hear.)  The  Turin  matter  stood  entirely  on  a 
ditli^reut  f()oting,  and  this  company  were  not  mixed  up  with  any  other  in 
that  respecb*  The  Turin  building  matter  was  simply  this.  A  concession 
had  been  brought  to  them  long  before  the  removal  of  the  capital  was 
eoiitemfJated,  and  the  operation  was  considered  a  very  good  one.  It  was 
nob  aiiiHiiltsrixl  likely  that  there  would  be  any  removal  of  the  Italian 
ctLpitai  till  it  was  fixed  at  Rome,  and  the  interim  removal  to  Florence 
took  eveiy  one  by  surprise.  However,  the  operation  after  all  was  not  a 
bad  one.  They  intended  to  sell  the  houses  as  they  were  finished,  and 
they  biul  K4ild  one  already.  The  investment  was  calculated  to  pay  at  least 
10  \mr  eaiit.,  and  that  was  the  very  worst  they  could  see  of  it. 

Ill  auHwtjr  to  a  further  question, 

Tiiu  CbiLirman  said  that  the  whole  amount  in^psted  in  this  speculation 
was  £28(»,(HK),  which  was  to  be  advanced  at  6^  pef  cent.,  the  amount  being 
guaranbee<l  by  the  municipality  of  Turin.  As,  however,  they  did  not 
spend  uearly  so  much  as  £280,000,  the  returns  came  out  higher.  It  was 
not  tc>  be  supposed  that  it  was  anything  like  a  permanent  investment  of 

A  Shru-eholder  in  the  body  of  the  room  expressed  his  opinion  that  both 
the  operiktiuns  referred  to  were  inexpedient,  and  asked  for  further  informa- 
tion cm  thoin. 

The  Ohiiirman  stated  that  without  the  general  assent  of  the  meeting  he 
miLst  declijie  going  into  further  details,  and  it  was  not  in  the  interests  of 
the  company  he  should  do  so.     (Cheers.) 

Mr.  Kiniber  wasof  opinion  that  the  line  must  be  drawn  somewhere. 
He  thought  that  it  would  be  quite  sufficient  if  the  directors  could  assure 
them,  on  their  honour  and  character,  as  men  of  business,  that  the  opera- 
tic^nfl  in  qmifition  were  likely  to  turn  out  profitable. 

Tltc  Cliriirman  said  that  he  had  no  hesitation  in  saying  that,  in  the 
opinion  of  tlie  board,  the  operation  in  question  would  realise  at  the  very 
lowest  10  i>er  cent.  He  repeated  that  the  directors  had  every  oonfidenoe 
in  the  nocurities  which  they  held. 

In  reply  to  a  question  from  a  Shareholder, 

The  Chairman  stated  that  at  the  present  moment  there  was  no  in- 
tentifm  on  the  part  of  the  directors  to  make  any  further  call  upon  the 
■bftnlioldtji  &.  They  felt  that  the  proper  mode  of  proceeding  was  to 
iwiie  debentures  at  £5  per  cent.,  which  might  be  paid  off  as  they  fell 
due,  whereas  if  they  made  further  calls  the  result  would  be  that  they 
would  have  a  much  larger  capital  to  pay  upon. 

Mr.  Black  pointed  out  that  the  profit  realised  by  the  employment  of 
the  extended  capital  of  the  company  was  not  equal  proportionately  to 
that  made  last  year,  and  that  as  it  was  verv  important  to  enlarge  the  basis 
of  Uie  company  by  the  increase  of  the  number  of  shareholders,  it  would  be 
desirable  that  the  chairman  should  state  his  views  as  to  the  future  pros- 
pecia  of  the  ccimpany.     (Laughter.) 

The  m^ition  for  the  adoption  of  the  report  was  then  put  and  carried 
un&nimoUMly. 


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London  Financial  Association^  Limited.  199 

The  auditors  were  Uien  re-elected,  and 

The  Chairmaii,  in  putting  the  question  whether  there  should  be  a  half* 
yourly  meeting,  explained  that  it  would  not  be  for  the  purpose  of  declaring 
a  diTidend ;  but  there  would  be  no  objection  to  the  production  of  a  state- 
ment of  aecounts.  (Cheers.)  Indeed,  the  observation  of  Mr.  Parminter, 
with  reference  to  those  of  December  being  audited  and  completed  on  the 
4th  of  January,  might  be  applied  almost  to  every  week  in  the  year,  so 
d^^aely  were  they  kept  balanced.  (Cheers.)  In  reference  to  an  observa- 
tion of  the  last  speaker,  he  said  that  he  was  glad  to  be  able  to  announce 
that  the  number  of  shareholders,  which  in  March  last  year  was  1,400,  had 
incressed  to  2,400,  and  the  board  hoped  that  the  subdivision  of  the  pro- 
perty which  had  thus  taken  place  would  in  some  degree  put  an  end  to  the 
extreme  floctnation  in  the  value  of  shares,  of  which  the  directors  had  to 
complain. 

Mr.  Galsworthy,  in  returning  thanks,  observed  that  not  only  were  the 
auditoTB  quite  satisfied  with  respect  to  the  statement  of  accounts  and 
the  aonndneas  of  the  investments,  but  it  would  be  a  matter  of  astonish- 
ment to  the  shareholders  that  the  total  of  the  working  expenditure,  after 
paying  the  directors'  allowance,  did  not  amount  to  more  than  2  per  cent, 
on  the  capital.  (Cheers.)  He  might  also  explain  that,  although  the 
sooounts  were  made  up  to  the  Slst  of  December,  and  the  audit  was  com* 
l^eted  on  the  4th  of  January,  it  did  not  follow  that  the  audit  had  been 
completed  in  four  days.  On  the  contrary,  the  auditors  exainined  all  the 
■ecnhtieB  before  the  end  of  the  year,  and  only  completed  their  audit  on 
the  4th  of  January. 

This  being  the  whole  of  the  business,  a  vote  of  thanks  to  the  chairman 
eondaded  the  proceedings. 


LONDON  FINANCIAL  ASSOCIATION,  LIMITED. 

Tbs  third  half-yearly  general  ordinary  meeting  of  this  association  was 
held  on  the  23rd  January,  at  the  Baltic  (South  Sea  House),  Threadneedle- 
street,  Mr.  John  Hackblock  in  the  chair,  to  receive  the  directors'  report 
and  to  dedare  a  dividend  for  the  half-year  ending  Slst  December  last. 

The  following  report  was  then  read  : — 

"  The  directors  have  now  to  report  to  the  shareholders  the  result  of  the 
operations  of  the  association  for  the  half-year  ending  3l8t  December,  1864. 
After  deducting  the  current  expenses  of  the  half-year,  and  rebate  of  in* 
terest  at  the  rate  of  6  per  cent,  per  annum,  the  directors  are  enabled  to 
zeoommend  the  payment  of  a  dividend  at  the  rate  of  5  per  cent.,  with  a 
bonus  at  the  rate  of  10  per  cent,  per  annum,  free  of  income  tax ;  there 
will  then  remain  a  balance  of  undivided  profits  of  £40,063  80.  6d.  to  be 
carried  forward  to  next  half-year.  The  dividend  and  bonus  together 
amount  to  £1  2«.  6d.  per  share  on  the  old,  and  18«.  M.  un  the  new  shares. 
Henceforth  the  distinction  between  the  old  and  new  shares  will  cease,  the 
BBme  amount  (£15  per  share)  being  now  paid  up  on  each  description.  By 
the  Artidea  oi  Aseodiaiion  two  directors  retire  annually  in  January  ;  in 
oonfonnity  with  this  regulation  Messrs.  J.  Borradaile  and  J.  Walker  go 
out  of  office,  but  being  eligible,  ofTer  themsdves  for  re-deotion.  The 
M]dit0rs,  Messrs.  John  Ball  and  Bichard  B.  Wade,  also  offer  themselves 
forre-elootioii." 


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Dr. 


Balance-sheet^  Z\st  December ^  1864. 


Capital  called  up,  tiz.: — £I5  per  share  paid  on  40,000  shares  £600,000  0 

Reserve  fund,  viz.:— Balance  at  30th  June,    1864,  £81.500; 

interest  thereon  six  months,  at  5  per  cent.  £2,037.  lOi.  83,537  10 

Liabilities — Comprising  amounts  due  on  deposit  receipts,  in- 
terest thereon,  and  current  accounts          697,479  9 

Profit  and  loss — As  per  annexed  statement     92,624  15 


£1,473,641  14   1 


Cr. 
Assets,  viz. : — Cash  in  Bank  of  England,  City  Bank,  and  on 

deposit  at  interest      £67,149     7 

Loans,  securities,  and  current  accounts 1,406,492    7 


£1,473.641  14  K 


Prqftt  and  Loss  account,  from  \st  July  toZist  December,  1864. 


Dr. 

Current  expenses,  including  salaries,  managers'  and  directors* 
allowances,  advertising,  books,  stationery,  office  fittings, 
rent,  and  all  other  charges 

Balance  carried  down       


£12,823  15    I 
92,624  15     1 

£105,448  11     S 


Cr, 

Gross  profits,  viz.: — Balance  of  undivided  profits  brought  for- 
ward from  30th  June,  1864,  £21,408.  \%s.  ^d,\  amount  for 
half-year  ending  31st  December,  1864,  £84,039.  12«.  bd.     £105,448  11 

Dividend  at  the  rate  of  £5  per  cent,  per  annum  on  paid-up 
capital  £13,750  ;  bonus,  at  the  rate  of  £10  per  cent,  per 
annum,  on  paid-up  capital  £27,500  

Income  tax 

Balance,  being  undivided  profits,  carried  to  new  account 


Balance  brought  down      

Deduct  rebate  of  interest  on  loans  not  due,  taken  at  6  per 
cent,  per  annum        


Balance  of  undivided  profit  carried  forward  to  new  account.. 


£41,250     0  C 

1,726     8  0 

40,063     8  6 

£83,039  16  6 

£92,624  15  9 

9,584  19  3 

£83,039  16  6 

£40,063    8  6 


The  Chairman,  in  moyinff  the  adoption  of  the  report  and  accounts, 
observed  that  the  report  spoke  so  clearly  for  itself  that  it  required  no 
comment  from  him,  and  tiie  same  might  be  said  of  the  aocountB  and 
balance-sheet ;  but  he  wished  to  offer  some  explanatory  remarks.  The 
more  they  read  the  report  the  better  they  would  like  it.  If  they  turned 
to  the  credit  side  of  the  balance-sheet  they  would  see  in  the  assets, 


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laoAy  Becurities,  and  current  acoonnts,  £1,406,492,  and  in  reference  to 
this,  lie  would  repeat  what  he  had  said  at  the  last  meeting,  that  these 
were  not  their  own  securities,  but  they  were  lodged,  the  great  bulk  of 
them,  with  the  company  as  ooUaterals ;  consequently  so  long  as  they  had 
a  good  margin,  oyer  and  above  their  value,  the  precise  amount  or  value 
did  not  interest  the  shareholders  so  long  as  they  were  well  covered.  They 
held  on  security  but  a  very  small  portion  of  their  own  property,  and  of 
that  a  few  shares  were  ^en  at  the  market  price  of  the  year.  The 
debentures  and  bonds  which  had  come  to  them  in  the  shape  of  business 
were  all  vslued  at  very  low  rates,  and  would  bear  a  very  good  profit.  The 
profit  on  the  half-year  had  been  £84,039 ;  that  was  by  far  the  best  year 
they  had  had,  and  this  profit  had  been  made  up  without  any  commissions 
for  the  introduction  of  a  single  new  company,  but  from  legitimate  busi- 
ness, of  a  sound  and  unquestionable  character.  This,  with  the  balance 
brought  forward  from  the  previous  half-year,  £21,408,  enabled  them,  after 
paying  current  expenses,  providing  for  a  dividend  at  the  rate  of  5  per 
cent,  per  annum,  and  a  bonus  at  the  rate  of  10  per  cent.,  and  making 
full  allowance  for  the  rebate,  to  carry  forward  a  balance  of  £40,063 
undivided  profit  to  the  credit  of  the  new  account,  being  about  £18,000 
more  than  on  the  previous  occasion.  The  great  object  the  directors  had 
in  carrying  forward  this  balance  was  not  merely  to  show  that  the  whole 
of  their  business  was  conducted  with  as  little  speculation  as  possible, 
but  to  give  confidence  to  their  depositors  and  the  public.  They  had 
not  lost  a  single  shilling,  nor  was  it  probable — he  would  not  say  it  was 
impossible — they  should  do  so,  but  if  such  a  misfortune  should  occur, 
they  would  have  in  this  amount  so  carried  on  the  means  of  providing 
for  it,  and  of  equalising  the  dividend.  For  himself  he  should  like  to  see 
the  balance  carried  forward,  augmented  considerably  beyond  its  present 
amount,  so  as  to  have  one  or  two  dividends  in  advance— (hear),  which 
would  give  increased  stability  to  the  company  and  advance  its  welfare. 
The  reserve  fund  had  the  interest  carried  to  it  as  before,  and  would  be 
increased  by  that  amount. 

A  Shareholder  inquired  whether  it  was  proposed  to  carry  any  portion  of 
the  £40/KK)  surplus  to  the  reserve  fund.  He  thought  the  reserve  should 
be  made  up  to  £100^000,  and  by  transferring  £16,2^  of  the  surplus  to  that 
account  it  would  be  made  up  to  that  sum. 

The  Chairman — The  imderstanding  when  the  new  shares  were  issued 
waSy  that  this  £80,000  should  go  to  the  reserve,  which  should  afterwards 
increase  by  the  addition  of  its  own  interest  until  it  reached  £100,000.  He 
thought  it  was  sound  policy  on  the  part  of  the  directors  to  carry  forward 
the  £40,000  for  the  purposes  he  had  stated,  and  he  should  be  happy  to  see 
it  so  further. 

Mr.  Bevan  said  it  must  be  exceedingly  gratifying  to  the  shareholders  to 
hear  that  they  had  not  made  one  shilling  bad  debts.  There  had  been 
rumours  of  extensive  Greek  operations  in  the  company's  shares.  He 
trusted  that  the  Grecian  Phalanx,  which  was  invented  to  oppose  an  enemy, 
would  not  now  be  used  sgainst  friends. 

Mr.  J.  £.  C.  Koch,  a  du'ector,  explained  that  the  transactions  referred  to 
were  merely  transactions  in  which  money  had  been  advanced  by  members 
of  the  Stock  Exchange  on  the  security  of  shares,  the  company  itself  having 
no  power  to  deal  with  shares  in  that  way. 

The  Chairman  said  that  he  believed  very  few  shares  indeed  were  under 
loan  and  of  those  that  were  the  company  had  not  the  slightest  interest  in 


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tlitim.  There  was  no  truth  in  the  statement  which  had  been  made  thai 
lofkses  had  been  siiHtained  through  an  individual  whose  name  had  beei: 
mentioned  in  reference  to  these  transactions. 

The  motion  for  adopting  the  report  was  then  carried,  and  a  dividend  anc 
bonus  at  the  rate  of  16  per  cent,  were  declared  payable  cm  and  after  th( 
24th  instant,  free  of  income  tax  (being  a  dividend  at  the  rate  of  5  pei 
cent,  per  annum, and  a  bonus  at  the  rate  of  10  per  cent.) 

The  retiring  directors  and  auditors  were  re-elected,  and  the  sum  payabl< 
t'O  the  auditors  was  increased  to  £100  each. 

A  vote  of  thanks  to  the  chairman  and  directors  dosed  the  proceedings 


FINANCIAL  CORPORATION,  LIMITED. 

The  second  ordinary  general  meeting  of  the  shareholders  of  this  oompan^ 
was  held  on  the  23rd  January,  at  the  London  Tavern,  for  the  purpose  oi 
receiving  the  report  of  the  directors  and  other  business.  J.  Qoodson,  Esq. 
the  chairman  of  the  company,  presided. 

The  following  report  was  taken  as  read : — 

"  The  directors  have  now  the  satisfaction  of  placing  in  the  hands  of  th( 
[proprietors  the  accounts  of  the  corporation,  made  up  to  the  3l6t  Decembei 
nst,  and  duly  audited.  The  gross  profits  realised  during  the  period  tht 
c^irporation  has  carried  on  business  (about  ten  montlis)  is  £31,836.  9«.  9d 
After  deducting  the  ad  interim  dividend  paid  in  July  last,  expensei 
of  management  as  far  as  ascertained,  20  per  cent,  of  the  preliminary 
expenses,  and  the  rebate  on  current  bills,  &c.,  the  net  surplus  amounts  tc 
£19,128.  5^.  lOd.  The  directors,  having  regard  to  the  fact  that  many  oi 
the  transactions  in  respect  of  which  profits  are  brought  into  the  preseni 
account  are  not  yet  matured,  and  that  some  of  the  securities  held  have 
been  much  depreciated  by  the  present  pressure  on  the  money  market,  de- 
sire to  retain  a  large  proportion  of  the  above  sum  in  hand,  and  they  trust 
the  proprietors  wiU  cheerfully  concur  in  this  precautionary  measure,  witb 
a  view  to  the  future  security  of  the  undertaJdnff.  The  following  appor- 
tionment of  the  net  surplus  is,  therefore,  proposed,  viz. : — £4,568.  3s.  lOd 
for  a  dividend  for  the  past  half-year,  at  the  rate  of  10  per  cent,  per  annum 
on  the  paid-up  capital ;  £10,000  to  the  formation  of  a  reserve  fund,  and 
tlve  balance  of  £4,560.  2$.  to  be  carried  forward  to  the  next  account.  The 
fUrectors  have  received  various  communications  from  the  proprietors  re- 
garding the  depressed  state  of  the  shares  of  the  corporation  upon  the 
Tiiarket,  and  suggesting  various  remedies.  They  desire  to  state  once  for  al] 
that  the  board  gave  its  undertaking  to  the  committee  of  the  Stock  Ex. 
change  not  to  traffic  in  or  make  advances  upon  its  own  shares ;  and  that 
undertaking  has  been  rigorously  adhered  to.  Since  the  31st  of  Decembei 
a  considerable  portion  of  the  calls  then  in  arrear  have  been  paid." 

The  Chairman,  in  moving  the  adoption  of  the  report  and  accounts,  said 
everything  was  pretty  clearly  expressed  in  the  accounts,  and  he  believed 
every  figure  in  the  balance-sheet  was  honestly  explained.  The  profits  foi 
the  last  ten  months  had  been  £31,836,  and  sJthough  some  of  the  transac- 
tions had  not  been  matured,  they  were  justified  in  declaring  the  dividend 
which  he  would  presently  submit  to  them.  Of  course  in  an  institution  ol 
that  kind  time  was  necessary  for  the  different  transactions  to  mature,  and 
therefore  they  could  not  say  at  once  how  they  would  end,  but  they  had 
ijo  reason  to  suppose  they  would  not  be  satisfied^    In  declaring  a  dividend 


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of  10  p«r  cent,  tfaej  were  aware  they  had  given  them  an  interim  dividendy 
and  that  absorbed  altogether  £7,000.  Acting  with  that  notion  of  prudence 
whidi  ought  to  regulate  every-well  conducted  establiBhment,  they  had 
resenred^an  amount  equal  to  75  per  cent,  on  the  profits  for  the  purpose  of 
meeting  any  oontingenoy  that  might  possibly  arise.  At  the  same  time  no 
ootttin^cy  had  arisen,  nor  did  they  expect  any.  But  to  be  fortified  in 
their  poution  they  had  taken  the  opinion  of  the  two  able  auditors,  and 
their  strict  and  unprejudiced  opinion  was  in  favour  of  the  course  pro- 
posed by  the  directors.  One  remark  he  would  make  about  jobbing  in 
shares.  The  board  had  been  particularly  desirous  of  having  everything 
done  before  the  world,  and  the  Stock  Exchange  had  had  the  assurance  that 
nothing  of  that  sort  of  thing,  dealing  in  shares,  would  be  carried  on  by  the 
directors  or  by  any  one  acquainted  with  them.  It  was  not  his  custom  to  ' 
esrry  on  trade  in  that  iort  of  way ;  he  liked  everything  "  above  board,'' 
and  he  never  wished  to  bolster  up  anything  for  his  own  profit  or  the 
profitn  of  those  with  whom  he  was  connected.  They  coveted  inquiry, 
and  he  should  be  glad  to  answer  any  question  that  would  be  asked.  He 
begged  to  move  the  adoption  of  the  report. 

ail,  J.  D.  Thompson  seconded  the  motion. 

Hr.  Preston  asked,  supposing  the  statement  made  by  the  chairman  to  be 
eocrect,  whether  there  was  no  risk  as  to  thn  future  on  present  transactions, 
vers  they  not  carrying  too  large  an  amount  to  the  reserve  fund — ^three- 
fourths — seeing  that  their  shares  were  unf  orttmately  at  a  great  discount  in 
the  markeL 

Mr.  Woolf  aaked  if  the  directors  had  advanced  the  large  sum  of  £47,000 
OD  one  security — a  security  which  would  be  locked  up  for  a  very  long 


Mr.  Stovin  complained  that  the  cost  of  management  was  excessive. 
The  cost  of  management  of  the  International  was  stated  to  be  only  2  per 
cent,  on  the  paid-up  capital,  whilst  theirs  seemed  to  amount  to  20  per  cent« 
Agun,  how  far  were  they  justified  in  declaring  a  dividend  at  aU  ?  The 
point  was  this,  was  there  any  reason  or  ground  why  that  rider  should  be 
put  to  the  accounts  by  the  auditors  ?  It  appeared  to  him  a  doubtful 
questkm,  and  one  probably  that  oould  be  answered  by  the  directors,  be- 
cause it  had  thrown  a  certain  amount  of  suspicion  on  their  transactions, 
and  denedated  their  property  in  the  market.  With  respect  to  the  pro^ 
moten'  fees,  he  wanted  to  know  io  what  way  that  amount  (£7,600)  was  to 
be  paid,  and  if  the  whole  of  it  came  out  of  the  allotment  fees  as  stated  in 
the  articleii  of  association,  or  if  any  certain  portion  of  it  had  been  paid, 
and  if  it  were  to  be  spread  over  a  certain  number  of  years  ?  In  article  89 
the  qualification  of  a  director  was  the  holding  five  shares ;  he  wished  to 
ask  how  thia  waa,  for  it  would  be  satisfactory  to  the  shareholders  to  know 
&^  held  a  large  stock  and  had  an  interest  in  the  affairs  of  the  company. 

Mr.  Johnson  aaked  how  much  dividend  properly  belonged  to  the  past 
six  months? 

Mr.  Viser  aaked  if  there  were  any  larger  amounts  standing  over,  seeing 
the  largeness  of  the  reserve,  and  if  so,  what  were  they  ? 

Mr.  Makina  adied  on  what  basis  ^  other  secoritieB,"  in  the  item  £368,147 
were  ascertained? 

Mr.  Maoknej  wiahed  to  know  what  position  they  were  in  respecting  the 
Qraysbrook  Iron  Company? 

Mi,  Cornelius  Walford  said,  in  reply,  that  the  theorv  which  his  ooUeagnea 
and  Mtwi^lf  had  laid  down  for  the  government  of  the  company  was  that 


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their  shareholders  should  have  full  and  accurate  informatioQ  \rgan.  a 
necessary  points,  but  having  laid  down  that  theory,  the  question  aroi 
how  far  questions  could  be  asked  which  affected  the  confidence  b 
tween  their  clients  and  the  company.  He  was  present  at  a  meeting  of 
large  finance  company  recently,  and  he  was  astonished  to  hear  the  questioi 
put  at  that  meeting — questions  which  the  directors  would  break  faith  i 
answering.  The  first  gentleman  spoke  of  the  large  appropriation  to  tl 
reserve,  but  that  arose  entirely  from  a  feeling  of  care,  for  up  to  this  peric 
the  corporation  had  made  no  loss,  if  he  excepted  £280  in  compromisii 
one  transaction.  When  he  said  the  company  made  no  loss,  he  spoke  f 
the  report  spoke  on  this  point.  They  commenced  business  ten  mont) 
ago,  but  they  had  been  only  six  months  in  active  business,  and  they  enten 
it  in  a  brilliant  state  of  the  money  market,  with  a  capital  ample  to  me< 
any  emergency  that  mii^ht  arise.  But  changes  had  taken  place  in  tl 
money  market ;  there  had  been  an  almost  unparalleled  depreciation  i 
some  classes  of  security,  and  they  not  being  the  owners  of  the  securitie 
but  taking  them  colletorally  to  meet  the  taking  up  of  the  acceptances  n( 
in  their  possession,  they  were  not  in  a  position  to  go  into  the  market  1 
realise.  With  one  exception,  in  the  case  of  a  simi  of  £6,000,  they  wei 
not  in  a  position  to  realise  on  the  securities,  and  they  must  hold  a  sufi 
dent  amount  to  meet  any  contingency.  As  to  the  £47,000  which  on 
gentleman  said  was  likely  to  be  locked  up,  he  was  not  aware  of  any  sac 
transaction.  They  had  advanced,  in  one  instance,  £50,000,  and,  wit 
renewals  and  commission,  about  £56,000  was  due  on  the  transaction ;  bi 
they  were  secured  by  a  company  and  guaranteed  by  two  individuals,  on 
of  whom  was  represented  to  be  worth  a  quarter  of  a  million  of  money,  an 
he  took  it  for  granted  the  whole  of  the  money  would  be  forthcoming  whe 
the  bills  became  due.  With  respect  to  Mr.  Stovin's  questions,  deductin 
the  directors'  remuneration  and  other  items,  their  expenses  would  not  b 
more  than  3^  per  cent,  on  the  paid-up  capital  at  the  present  time ;  and  i 
would  be  very  much  less  than  that  on  the  paid-up  capital  they  woiild  hav 
from  time  to  time.  As  to  the  question  of  dividend,  it  was  for  them  t 
decide.  The  directors  had  made  a  recommendation  of  10  per  cent.,  and  i 
was  endorsed  by  the  auditors.  They  had  got  12|  per  cent,  over  the  averag 
period  on  the  paid-up  capital,  which  was  not  a  very  bad  case,  and  the; 
should  leave  the  dir^ors  the  balance  of  profit  to  deal  with  if  an  emergen  c 
should  arise.  As  to  the  preliminary  expenses,  £7,069,  the  whole  woul 
be  written  off  in  five  instead  of  ten  years.  As  to  the  holding  of  the  direc 
tors  he  was  glad  to  say  they  held  4,000  shares,  besides  a  large  amount  o 
shares  standing  in  the  names  of  their  families  and  friends.  The  amoon 
absorbed  by  the  present  divid^id  was  £4,568  for  this  half-year,  and  th 
previous  dividend  amounted  to  £2,430,  so  that  £7,000  had  been  provider 
for  dividend  purposes.  As  to  the  question  of  the  value  of  the  securities,  the; 
were  held  with  such  a  guarantee  that  no  loss  would  accrue.  They  had  no 
been  callen  upon  to  realise  them.  As  to  the  Ghraysbrook  Iron  Compan] 
he  was  bound  to  plead  ignorance ;  he  never  heard  of  the  company  before 
(Hear,  hear.) 

The  motion  for  the  adoption  of  the  report  was  then  unanimously  adopted 
and  a  dividend  at  the  rate  of  10  per  cent,  per  annum  for  the  half-y^ 
declared.  The  retiring  auditors,  Messrs.  Quilter  and  Morgan  were  re 
elected ;  and  thanks  having  been  voted  to  the  chairman,  directors,  anc 
Mr.  Walford,  the  proceedings  were  brought  to  a  dose. 


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205 

MPEMAL  MEBCiLNTILE  CREDIT  COMPANY. 

^^<*diiuury  general  meeting  of  the  shareholden  of  tlus  oompany 
w  wintiMs  2%rd  January,  at  the  London  Tayern;  Mr.  John  Gha^ 
■■ittttecbair. 

(fc^^?^  ^'  ^i^^^^^^y^o^)  luivuig  i'ocmI  the  notice  conwning 
•SZ^'       rnd  the  following  i^sport  and  statement  of  aooomita : — 

te''«>  the  lUteinent  of  aooonnts  which  the  directora  hATe  now  the 
^  mbmittiiig  to  the  sharehoIderB,  comprising  the  operations  of 
^^H^«<^paiueB  from  the  1st  June  to  the  31st  Decemher  last,  it  wiU 
•  *■  ««t  after  payni«it  of  the  current  c 


cs 


^  -„ expenses,  allowing  for  rebate  of 

<>[  Ulli  and  loans  not  due,  and  maiung  ample  prorision  for  all 

7*^  there  remains    a   balance   of   net   pn^t  amounting  to 

Tc  ^^  ^^i'octors  reocnnmend  this  snm  to  be  appropriated  as 

'•-ftTidflDd  (free  of  income  tax)  of  10#.  per  share,  £60,000 ;  in- 

^  ^J^;  baUnce  carried  forward  to  next  half.year,  £47,967.  9a. 

^g^°°fe  will  in  fatore  be  made  np  half-yearly,  viz.,  to  30th  Jnne  and 

^^^oonber.    In  accordance  wi^  the    articles  of  association    the 

*¥I«i&ted  C.  J.  H.  AUen,  Esq.,  and  John  Tonng,  Esq.,  as 

^til  tiie  firrt  ordinary  meeting  of  proprietors,  on  whom  the 

^  anditon  will  then  deyolye.    jtfr.  Allen  and  Mr.  Tonng  are 

lorn^lee&nL" 


Balaue^^heet,  Z\H  day  qf  December^  1864. 

j  f||gm  CiriTAL  AMD  UAKLnm. 

— T^;^Wtop«yibIC  £632,423. 1 1*.  4d. ;  Credits  granted 
2^^  «nd  othen,  £825,000;  DeposiU  and  cnnent 
^^<1,S54,S76.    4«.    8<<. ;    bills   and    gnaiantees. 


i^f.'  lOf*  <»d.;  son^  credilors,  £6^04.  8a.  4d. 
CM7lJ||^|"'^<)aUUsnotdiie        

^"^^Betproat  as  per  statement        . 


■nd  current  acooirats 
■Bdintereat  seemed  thereon 
&C.     


^  Mi  loaa  Account  from  ike  laf  June  to  the  Slst  December,  1864. 

^  ojntn,  (inchidiDg  salaries,  allowance  to  managers, 

AlT*?*^ '■'''■■•■****»»  "**»"^^wti«^  £17,248    5  10 

^<n«>liaogiKi|ifofit  carried  down      99,217    2    0 

£116,460  14  10 

VOL  nv.  17 


.  3,506,122  14  10 
11,593  18  7. 

99,217  9  0 

£4.119,003  17 

5 

£142,820  16 
994,461  2 

2,476,856  1 

506,111  18 

784  2 

0 
5 
6 
0 
6 

£4,119,003  17 

5 

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206 


Imperial  Mercantile  Credit  Company. 


Dividend  of  10^.  per  share  on  100,000  shares,  £50,000;  in- 

come  tax  on  above,  £1,250        

^Palancecarried  to  profit  and  loss  new  account    

\ 


Cr. 

Gross  profits,  as  per  ledger,  £128,054.  8«.  5d. ;  deduct  rebate 
on  interest  on  lulls  not  dne,  At  6  per  cent,  per  annnm, 
£11,593.  13#.  Id.     


Pidance,  being  net  profit  brought  down 


£53.250 
47,967 

0 
9 

£99,217 

9 

£11^,400  14 

£116.460  14 

£99,217 

9 

£99,217 

9 

The  OhairmaD,in  moying  the  adoption  of  the  report,  said  that  t 
directors  met  the  proprietors  with  great  pleaaure  upon  the  present  occa&io 
and  hoped  to  do  so  for  many  yeaxs.  This  was  t];ie  first  meeting  since  tl 
aioalgamaJbion  of  the  JMLercsoi^^e  and  Iipaperial  Financial  Association^  aj 
what  had  passed  since  the  amalgamation  was  completed  must,  he  thougl 
convince  every  one  present  of  the  wisdom  of  the  policy  by  which  tb 
junction  was  brought  about.  It  gave  th^n  incr^wed  ^en^,  as  far 
regarded  capital,  which  was  certainly  found  of  the  greatest  importan< 
during  the  crisis,  besides  which  it  conferred  upon  the  company  the  con 
)>ined  energy  and  talent  of  two  gentlemen  as  managers  whose  napies  wei 
well  known,  and  whose  reputation  stood  as  high  as  that  of  any  gentlemc 
in  the  City  of  London.  N^either  he  nor  the  cErectors  were  sorry  th^t  the 
had  passed  through  what  waA  aometiiing  of  an  prdeal,  because  it  had  tang] 
l^em  lessons  which  it  was  very  important  to  renaember.  A  greai  counti 
like  this  was  subject  from  time  to  time  to  finanoial  changes,  and  evei 
caution  and  prudence  was  necessary  in  the  first  place  to  secure  their  poa 
tion.  He  was  happy  to  say  that  during  iliat  period  th^  had,  to  use 
nautical  expression,  rode  out  the  gale  most  conifortably,  and  had  not  tl 
slightest  apprehension  with  reference  to  the  stability  of  the  institntion  i 
any  moment.  Not  only  that,  but  when  a  great  deal  was  said  with  respei 
to  the  position  of  other  companies,  they  were  not  in  the  lea^t  d^ree  move< 
but  continued  to  do,  as  they  had  done  from  the  first,  a  most  satiafaptoi 
and  legitimate  business.  As  to  its  being  p£Q^ti^)leyhe  trusted  thi^t  s^  glanc 
at  the  balanoe-sheet  was  all  that  viras  required  to  satisfy  them  upon  thi 
point.  (Cheers.^  There  was  an  old  saying  that  ^^  good  wine  n^ods  n 
bush,^^  and  the  figures  at  any  rate  ought  to  speak  for  themselves.  In  looli 
iiig  fKt  the  statement  of  accoimts  he  must  observe  on  one  circumstanc 
wmch  was  a  matter  of  pride  and  gratification  to  the  board,  as  showing  th 
oonfidence  which  the  public  plsroed  in  the  undertaking,  namely,  the  ver 
large  amount  of  deposits  that  had  been  placed  in  their  hands.  (Cheers. 
That  was  alike  a  tribute  to  the  splidity  of  the  concern  ^dt  he  might  veutur 
to  say,  to  the  prudenoe  of  those  who  managed  it.  H^  mu^t  say  tha,t  i 
il^as  a  circumstance  of  which  he  was  extremely  proud,  and  he  need  i\ot  tel 
the  shareholders  that  if  they  continued— as  he  had  not  the  slightest  doub 
they  would— to  enjoy  the  confidence  of  the  public,  it  would  not  only  indi 
dcfe  the  stab^ty  of  their  position,  l>ut  would  act  most  favourably  witi 


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Imperial  Mercantile  Credit  C(mpany.  207 

req[Kset  to  their  fattire  ptofits.  (Chefier^,)  t7ii3i  respeot  to  the  statement 
of  their  liabilities  he  might  say  at  once  that  the  board  thought  it  desirable 
fliai  they  should  be  as  explicit,  and  go  as  much  into  detSl,  as  possible ; 
and,  ^Msiefore.  they  included  every  possible  contingency,  however  remote, 
in  order  that  they  mi^ht  see  their  exact  position.  If  they  had  only  f oUowea 
&e  Qsual  course,  tSieir  debit  account  would  appear  much  less.  This  com- 
pany,  from  its  peculiar  connections,  was  very  much  engaged  in  large  finan- 
dal  operationA,  whidi  were  conducted  by  eminent  firms,  both  in  this  and 
▼ariouR  foreign  oountries  throughout  lEfurope.  Those  firms  were  of  the 
h^est  possible  order  and  respet^bility,  and  the  connections  the  company 
had  thus  formed  would  materially  add  to  its  character  and  increase  its 
profita.  (Hear,  hear.)  The  board  proposed  now  to  declare  a  dividend  of 
ifb.  per  share,  and  to  carry  forward  a  considerable  sum.  Bad  this  been 
the  doaing  meeting  of  the  financial  year,  they  should  have  submitted  to 
the  riiareholders  the  propriety  of  carrying  a  great  part  of  the  surplus  to 
Che  rest  which  it  was  proposed  to  establish,  but  as  it  was  not  the  end  of 
file  ffaanrfal  year  they  would  carry  it  forward  to  Midsummer,  when  he 
trusted  that  they  would  not  only  be  able  to  declare  a  good  dividend,  but 
to  found  a  substantial  rest,  which  was  essential,  and  would  add  to  the  sta- 
bffiy  of  the  concern.  If  th^  went  on  doin^  a  safe  business,  and  enlarging 
their  oonnectiona,  he  dKd  not  see  why.  in  the  course  of  a  few  years,  they 
diottid  not,  aa  another  coihpany  had  done,  come  before  the  shareholders 
i2id  say — **  Grentlemeu,  We  have  now  established  a  sufficiently  large  reserve 
fmid,  and  ahaH  be  able  to  devote  ourselves  more  exclusively  to  the  con- 
ndeiation  of  the  immediate  interests  of  the  propriotois.  Let  us  rest  and 
be  thankful,  and  do  something  in  the  way  of  capitalising  the  bonus  and 
adding  to  the  value  of  the  shares.'*  (Oheers:)  He  could  only  say  in 
addi^D,  how  much  they  were  satisfied  and  what  comfort  they  had  derived 
&om  the  fact  of  two  such  excellent  managMu  Mug  entrusted  with  the 
eondn-^  of  the  baaiaeai^amd  whose  combined  efforts  had  proved  ao  suooesB- 
foL  (Ebar,  hear.)  He  assured  the  meeting  that  the  directors  themselves 
had^ven  their  best  attention  to  the  interesta  of  the  shareholders,  and 
were  deterndned  ayever  to  eater  into  aay  traiuiaotioiia  that  could  reflect 
the  alightest  discredit  upon  them  as  honouraUe  eotttneorcial  men,  and 
hoped  never  to  engage  in  aaytiiang  which  would  SMet  the  disapprobation 
ci  aba  shafdboldeis.  He  bow  begged  to  aoVe  the  adoption  of  the  report. 
(Cheeis.) 

Mr.  iUdenaan  Pakin  secMided  the  lesolHtKm^.  whieh  w«s  oicrisd  uaaiii. 
mously. 

Hie  Chairman  then  annoiiBfMd  a  dividend  of  10s.  per  sfassey  payabie  on 
the  30th  inst* 

The  nsoct  hosiness  was  the  deetien  of  anditota,  the  ohairmaii  stating  that 
the  BoaccL  in  the  exercise  of  the  discretiaiiasy  powets  vested  in  tftiem,  had 
anpoiiited  llr.  AUsBy  the  talented  aeeretary  o£  the  Bank  of  Lotidon,  and 
Hr.  X  Yonag,  «£  the  eminent  firm  of  Oelemait^  Tnrquand^  and  Yotmg, 
idfes  had  disdbsacfed  their  ditties  in  the  most  sstisfactovy  matttier.  The 
bond  BOW  placed  the  matter  in  the  hands  of  the  shar^ioldeiot^  in  whose 
{oooliar  pcovinee  the.  ehoiee  of  aodttors  lay. 

On  the  BwtioB  of  llfr.  Bevan^  seeonded  by  Mr.  Hidd^Mr.  Allen  and  Mr. 
tooflg  wese  re-eleeted  anditen^  fmd  their  mnimeiation  fixed  at  160 
gtuness  eaefa* 

jE!he  Ohaimaa^^  in  "^^7  ^  9^-  quaskibn  from  Mr.  Field,  stated  that  the 
iilb  vixieb  the  company  had  in  their  possession  were  drawn  upon  first- 


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Alliance  Bank,  Limited. 


rate  merchants  and  bankers,  and  were  such  as  would,  to  use  a  common 
expressioD,  make  the  mouth  of  a  discount-house  water.  (Laughter.)  With 
respect  lo  their  own  acceptances,  they  were  only  in  connection  with  first- 
rate  foreign  merchants  and  financiers.  They  had  no  bills  of  contractors 
whatever  ;  but  their  bills  were  aU  drawn  by  foreign  bankers. 

Mr.  Barker  stated  that  the  acceptances  of  the  company  were  chiefly  on- 
remittances,  and  by  bankers  here  to  houses  of  equal  standing  abroad. 

The  Chairman  stated  that  all  these  matters  had  been  carefully  examined 
by  the  auditors,  and  he  hoped  the  statement  he  had  made  did  not  require 
confirmation.     (Cheers.) 

A  Shareholder  inqidred  whether  the  directors  contemplated  making  a 
call. 

The  Chairman — ^We  not  only  never  contemplated  it,  but  never  dreamt 
of  such  a  thing. 

On  the  motion  of  Mr.  Jackson,  M.P.,  seconded  by  a  Shareholder,  a 
cordial  vote  of  thanks  was  g^ven  to  the  chairman  and  board  of  direc- 
tors, for  the  admirable  way  in  which  they  had  managed  the  affairs  of  the 
company. 

The  Chairman  having  returned  thanks, 

Mr.  Field  proposed  a  vote  of  thanks  to  the  managers,  secretary,  and 
staff,  which,  having  been  seconded,  was  carried  by  acclamation. 

Mr.  Barker,  in  responding,  observed  that  it  was  gratifying  to  see  their 
exertions  recognised  and  appreciated  by  the  shareholders,  and  the  present 
compliment  would  be  a  stimulus  to  them  to  exert  themselves  still  more, 
and  to  continue  to  merit  their  approbation.     (Cheers.) 

The  proceedings  then  terminated. 


ALLIANCE  BANK,  LIMITED. 

The  ordinary,  general  meeting  of  proprietors  was  held  on  the  24th  January, 
at  the  London  Tavern  ;  J.  N.  Daniell,  Esq.,  in  the  chair. 

The  excitement  occasioned  by  the  large  losses  this  bank  has  sustained 
during  the  past  half-year  of  financial  pressure  was  evidenced  by  an  ex- 
traordinarily full  attendance  of  shareholders,  the  large  banqueting  room 
of  the  tavern  being  crowded  both  in  the  area  and  the  galleries.  On  the 
entrance  of  the  chairman  and  directors  some  attempts  at  a  hostile  demon- 
stration were  made  from  a  small  section  of  the  shareholders  at  one  comer 
of  the  room,  which  were  immediately  replied  to  by  hearty  cheers  from  the 
large  majority. 

The  following  report  and  accounts  were  then  read  :  — 
^'The  directors  beg  to  submit  to  the  shareholders  a  statement  of  the 
business  of  the  bank  for  the  half-year  ending  the  31st  December  last. 
The  gross  profits,  including  £6,580.  14^.  9d.  brought  forward  from  the 
previous  half-year,  amount  to  £186,896. 17«.  8d.,  which,  after  deducting 
current  expenses,  interest  on  current  and  deposit  accoimts,  and  rebate  on 
biUs  discounted  but  not  yet  due,  leaves  a  net  balance  of  £66,731. 19«.  9d. 
The  numerous  and  extensive  failures  of  mercantile  houses  during  the  last 
three  months  of  the  past  year  have  pressed  with  special  severity  on  this 
company,  and  the  directors  regret  that  the  losses  to  be  provided  for  on 
accounts  now  in  liquidation  win  absorb  the  profits  for  the  half-year,  and  a 
further  sum  of  £61,737.  11«.  6(2.,  which  has  been  carried  from  the  reserve 
fond  to  fche  profit  and  loss  account.  In  addition  to  these  losses,  the  directors 


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Alliance  Bank,  Limited.  209 

tlank  it  their  duty  to  state  that  there  are  transactions  not  ^et  matnred  in 
ennnection  with  a  heavy  accotmt,  which  may  possibly  entail  a  large  addi- 
tional loss.  The  bank,  however,  holds  securities,  which  it  is  hoped  may 
be  realised  favourably ;  but  whatever  loss  may  arise  may  be  dealt  with 
separately,  and  written  off  the  reserve  fund.  Under  these  circumstances 
the  declaration  of  a  dividend  cannot  be  recommended.  It  is  satisfactory 
to  the  directors  to  be  able  to  state  that  after  a  most  careful  scrutiny  by 
themselves  and  the  auditors  they  have  every  reason  to  believe  that  the 
oirrent  business  of  the  bank  is  in  a  sotmd  condition,  and  they  look  forward 
with  confidence  to  the  future  prosperity  of  the  institution.  Of  the  10,000 
shares  authorised  by  the  extraordinary  meeting  in  August  last  to  be  issued 
at  £20  per  share  premium,  9,766  have  been  applied  for  and  allotted,  and 
the  amount  of  premium  received  thereon  has,  in  accordance  with  the  re- 
solutions passed  at  that  meeting,  been  added  to  the  reserve  fund.  The 
<iirector»  have  to  record  with  regret  the  death  of  Mr.  De  Castro,  and  the 
resignation  of  Mr.  G.  P.  Thompson,  who  has  left  England  for  India ;  thus 
eaoaing  two  vacancies  in  the  direction." 

Balanee' sheet,  Z\Mt  December,  1864. 
Dr. 

Ctpital  paid  up,  viz.,  £25  per  share,  on  30,000  shares  £750,000, 
less  calls  m  arrear  £3,025— £746,975 ;  £10  per  share  on 
9.776,  shares  1864  igsae,  £97,760 ;  less  calls  in  arrear 
£2,175-^£96,485        £842,460    0    0 

Amount  due  to  customers  on  current  and  deposit  accounts, 
drcular  notes,  &c.,  £2,331,325.  18«.  7d. ;  bills  payable 
£3,716,750.  6».  94 6,048,076    6    4 

Snerre  fund,  30th  June,  1864,  £84,000 ;  premium  on  9,776 
ahares,  1864  issue,  £195,320,  less  arrears  £9,325— £185,995 
—£269,995 ;  less  amount  transferred  to  profit  and  loss 
aceount  £61,737.  11«.  bd,     ...  '      

Rebate  account      


Cr. 
Cadi  in  hand,  at  Bank  of  England,  and  at  call 

JnTestments  in  Consols,  &c 

Silt  of  exchange,  loans  to  customers,  and  past -due  bills  (the 

loss  on  which  has  been  provided  for)        

BuildiBgSy  furniture,  bank  fittings,  &c.,  in  London,  Southwark, 

Liverpool,  Manchester,  and  Birkenhead 

Preliminary  expenses       •• 


PBOFn  AMD  LOBS  AOOOUIIT 

Dr. 
Gmeot  expenses,  including  salaries,   stationery,  directors' 

remuneration,  &c.      ...    ^    ...        ... 

Interest  on  corrent  and  deposit  accounts        

fiebate  on  Mils  discoonted  not  yet  due 

BmI debt  account  •••         •••        •••        •••        •••        -•• 


208,257    8    7 
14,056  19  11 

£7,112,850  13  10 

.     £524,746    2 
50,506    5 

B 

6,482,863  13 

46,074    8 
8.660    4 

11 
0 

8 

0 
8 

£7,112,850  13 

10 

£23,187  18    0 
81,920    0    0 
14,056  19  11 

128,469  11     2 

£247,634    0    1 


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Alliance  Bank,  Limited. 


Or. 

Balance,  30th  jQne,  1Q64 

(^ross  profits  for  half-year  ending  3 let  Deoember,  18^ 
Beserve  fund         


Dr. 

Pro^  and  low  aoooont 
QilhuK^      


BaUmce  30tl^  Jo^^,  ^8^  , 
Premiam  on  sfiarca 


Balance  brought  ^ym    ••• 


SSBBRTB  FUVD. 


£6,580  14 

179.316    %  1 

61,737  11 

£247,634    9 

£61,7t7  11 
208,S67    g 

4269^5 

0 

£84^000 
i8fi»995 

0 
0 

£269,995 

0 

£206,257 

8 

The  Chairman,  vfi  nfioyLog  that  the  report  b^  adppted,  said— Gentleipei] 
the  auBj^cea  under  which  we  are  assembled  here  to-da^  contract  mos 
painfully  with  those  uudeir  wJiich  ^e  Iiayq  m^t  you  oii  aUp^ievious  oocasioai 
when  the  position  of  tt^  bank  has.  been  as  aatisfaistosy  as.  it  i»  now  th< 
reverse.  There  oan  ba  no  doubt  that  tlie  sevens  pressure  upon  financia 
alfaiTS  which  marked  the  latter  portion  of  the  past  year,  and  the  conseqnen 
rWangenaent  of  all  conmiercial  transactions^  nave  resulted  in  great  losse 
generally,  but  I  regret  to  say  that  I  hardly  know  a  case  in  which  an; 
banking  establishment  has  had  to  deplore  such  heavy  losses  as  we  hav 
ourselves.  In  reviewing  and  looking  over  our  several  accounts  and  tK^kns 
actions  there  are  many  which,  "v^fith  tl^  light  ice  have  noi^,  we.  should  si^ 
we  ought  never  to  have  entertained — (hear,  heaj^) — ^but  i^  t^eaame  tio^ 
there  are  vei^maoy  otl^f^.which  have  unfortuni^tely  fi^l^n  through  wbid 
i^  ordinary  tunes  would  have  been  good  and  valuable  aooounts,  audi  wbid 
in  extraordinary  times,  have  fallen,  through  only  in  coBseqaenoe  d  th 
seveire  jn^esaure  which  has  been  operating,  I>  da  aot-want  to  take  awa; 
from  any  parties  the  responsibility  which  properly  attadies  to  tfaeni 
whether  directors  or  others,  who  have  been  engaged  in  the  management  o 
the  concern.  If  the  management  has  been  wrong  in  anything,  it  has,  \ 
think,  been  in  the  natural  eagerness  to  increase  fiie  business  of  a  yoimj 
company  in  too  great  a  degree.  But  we  have  pljaeed  before  you  the  account 
as  naked  as  possible,  and  in  a  form  which  not  only  will  bear  the  test  o 
truth,  but  which,  if  imyihing,  carries  upon  them  an  appeajrance  of  los 
greater  than  we  hope  and  believe  has  been  actually  incurred,  1  49  nq 
mean  to  say  that  our  losses  have  been  calculated  iv^th  absolute  oertaiinty 
but  every  accoimt  upon  which  there  is  the  slightest  chance  oi^  l^i^^  Imi 
been  carefully  gone  through,  and  you  are  here  made  as  perfectly  acqiuuntei 
wfth  the  circiin^tances  of  the  company  as  we  are  ouraelves,  without  an; 
rgp^y^^^iii^n  W^tever  on  the  part  of  the  directors.    When,  in  Septembei 


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«iT  shates  fell  so  low  in  oonsequenoe  of  reportB  tbail  irere  drotdated  of  otir 
i>Bving  Buatained  heavy  losses,  whereas  at  that  time  we  had  sustained  no 
ioeses  whatever  beyond  what  yon  knew  of  at  oar  laJsrfe  meeting,  we  were 
obliged  to  contract  our  business,  the  eifect  of  which  was^  as  I  believe, 
to  weigh  very  heavily  on  many  of  our  customers,  and  to  precipitate  failures 
which,  under  other  circumstances,  might  have  b9en  avoided,  and  thus  pos- 
«iWy  OUT  losses  may  have  been  increai^.  It  will  be  observed  that  we  have 
made  an  alteration  in  the  mode  of  drawing  out  the  accounts,  and  instead 
e€  lumping  together  customers'  accounts  and  bilk  payable  as  hereto- 
fore, we  have  divided  them,  giving  separately  the  items  due  to 
oiatomers  on  deposit  and  current  accounts,  circular  notes,  &c., 
£2,331,325,  and  bills  payable  £3,716,750,  making  together  £6,048,076. 
Tbe  bills  payable  look  a  very  large  amount,  but  I  am  happy 
to  say  that  it  is  entirely  covered,  and  1  may  add  that  these  bills  ^  are  a 
great  source  of  prosperity  to  the  bank.  They  are  for  the  most  part  l>acked 
by  other  banks  of  large  capital,  and  on  no  occasion  have  we  lost  on^ 
fiurdiing  by  them.  (Cheers.)  It  is  true  we  might,  if  we  pleased,  reduce 
the  amount,  but  if  we  did  so  we  should  reduce  our  profits  in  proportion. 
then  is  one  pamgraph  in  the  report  to  which  I  would  call  attention,  and 
which,  to  those  who  feel  deeply  interested  in  the  prosperity  of  the  bank, 
vusy  occasion  some  doubt  and  some  fear  as  to  the  losses  which  we  may 
have  yet  to  meet.  (Hear,  hear.)  That  paragraph  was  not  framed  without 
considerable  difficulty,  it  being  our  object  not  to  excite  false  hopes  on  the 
one  hand,  or  false  fears  on  the  other.  An  it  appears  before  you,  certainly 
the  fears  appear  to  predominate,  but  in  my  opinion  the  hopes  ought  to 
predominate.  (Hear,  hear.)  The  paragraph  I  refer  to  is  that  <<  in  addition 
to  these  losses  the  directors  think  it  their  duty  to  state  that  there  are 
tzaasactions  not  yet  matured  in  connection  with  a  heavy  accotmt,  which 
may  possifaly  entail  a  large  additional  loss.  The  bank,  however,  holds 
securities  wfaidi  it  is  hoped  may  be  realised  favourably ;  but  whatever  loss 
may  arise  will  be  dealt  with  separately  and  written  off  the  reserve  fund." 
Kow,  it  would  have  been  the  wish  of  the  directors,  if  they  could  have  felt 
that  they  ooold  have  done  so  properly,  to  have  fixed  an  amount  to  these 
kases  as  the  Tnarimum  to  which  they  could  reach.  (Hear.)  But  on  full 
oonsiderakum  of  the  matter  they  felt  that,  in  the  present  state  of  their 
infonBation,  they  might,  if  they  attempted  to  do  so,  put  down  on  the  one 
hand  a  sum  far  bejrond  what  the  realisation  would  ultimately  amount  to ; 
CM*  on  the  other,  a  sum  far  below  what  would  ultimately  be  realised. 
There  are,  however,  very  large  securities  held  against  this  account,  which 
we  have  good  reason  to  believe  will  realise  favourably.  In  the  result, 
periiaps,  we  may  be  involved  in  a  loss  of  £20,000  or  of  £40,000,  or  perhaps 
the  loss  may  be  nothing. 

A  ShazehdLder.— Would  £40,000  be  the  utmost  ? 

The  Ghairmanu — ^Really  I  cannot  tell.  All  I  can  say  is  that  I  shotdd 
be  happy  to  buy  it  at  that  sum.  It  may  be  £20,000,  it  may  be  £40,000, 
or  it  may  be  £50,000,  or  it  may  be  nothing.  (Some  discontent  being  here 
exhibited  at  the  vagueness  of  the  reply,  the  Chairman  proceeded) — Mr. 
Qmlter,  the  accountant,  is  in  the  room ;  he  has  gone  through  the  account 
and  the  securities ;  perhaps  he  will  give  his  opinion  upon  the  matter, 
which  will  be  far  more  satisfactory  thiui  mine.    (Cheers.) 

Mr.  Qwlier. — ^I  feel  great  difficulty  in  giving  anything  like  an  opinion 
that  can  be  safely  relied  upon ;  but  aft^  carefully  weighing  the  proba^ 
bSiticft  as  to  the  realisation  of  the  securities,  I  am  of  opinicm  that  under* 


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no  circomBtanceB  oan  the  loss  exceed  £60,000  or  £60,000.  That  I  regsi 
as  the  maximum.  (Hear.)  In  my  judgment,  however,  it  is  qoite  pre 
bable  that  there  will  not  be  the  loss  of  a  single  penny  from  the  acoount  i 
question.     (Cheers.) 

The  Chairman  continued — I  hope  that  explanation  will  be  oonaiderc 
satisfactory.  I  just  now  referred  to  the  evil  consequences  which  ensue 
to  the  bank  by  the  imfounded  reports  which  were  circulated  of  losses,  an 
by  exaggerated  statements  of  our  liabilities  and  engagements  which  wei 
circulated  during  the  auttunn.  Upon  this  point  I  repeat,  that  when  tl 
premimn  upon  the  shares  of  the  bank  fell  down  almost  to  nothing,  we  ha 
experienced  no  loss  at  all  but  that  which  was  known  to  the  shsureholde] 
at  the  previous  meeting  as  resulting  from  the  failure  of  one  party.  Thei 
the  directors  have  been  accused  of  making  large  advances  on  ootton  an 
in  assisting  cotton  speculation,  whereas,  from  the  beginning,  we  ha^ 
studiously  avoided  touching  a  class  of  business  which  we  considered  in  tl 
highest  degree  speculative,  and  the  result  is  that  we  have  not  lost  a  sing! 
shilling  by  cotton.  (Cheers.)  I  do  not  desire  to  make  things  appear  bettc 
than  they  are,  but  I  do  wish  to  remove  false  impressions  wMch  the  mmouj 
so  plentifully  circulated  amongst  us  may  have  given  rise  to.  We  have  suf 
tained  some  losses  no  doubt,  but  still  this  bank  stands  from  this  time  in 
position  that  is  not  imenviable.  We  are  in  possession  of  a  large  cafuta 
We  have  a  reserve  fund,  which,  after  meeting  all  losses  that  can  possibl; 
come  upon  us,  I  believe,  will  still  be  over  £200,000 ;  and  we  have  a  ver 
large  niunber  of  exceedingly  good  current  accoimts,  and  in  short  we  stan 
in  as  good  a  position  in  all  respects  as  we  did  six  months  ago  when  ou 
shares  were  so  highly  and,  as  I  think,  somewhat  unduly  elevated.  (Heai 
hear.)  Then  as  U>  the  direction,  we  have  lost  a  very  able  director  by  th 
death  of  Mr.  De  Castro,  and  another  by  the  departure  of  Mr.  Bobinsoi 
who  has  gone  to  India.  The  London  board  is  therefore  much  reduoec 
It  is  our  wish  and  intention  to  increase  and  re -organise  the  board ;  and  i 
doing  so,  we  desire  to  act  in  accordance  with  the  wishes  of  the  share 
holders.  (Hear,  hear.)  We  feci  that,  however  \mwittinffly,  we  have  in 
volved  you  imder  our  management  with  heavy  losses,  and  we  are  auxiou 
that  you  yourselves  should  take  any  part  you  may  think  proper  in  assistini 
us  to  re-organise  the  board,  and  making  it  satisfactory  to  yourselves.  W 
have  not  thought  it  right  even  to  replace  the  manager  who  has  gone  abroac 
considering  it  better  to  leave  the  whole  thing  a  tcmda  rasa  for  you  to  dea 
with  as  you  please,  and  we  shall  be  happy  to  confer  with  any  persons  yoi 
may  a]^int  with  that  view. 

Mr.  Morris,  Liverpool  director,  seconded  the  motion. 

A  Shareholder  who  addressed  the  meeting  in  a  very  low  voice,  spok 
of  some  conversation  that  took  place  in  his  presence  on  the  Great  Westen 
Bailway  Company  last  September,  in  the  course  of  which  it  was  statei 
that  the  Alliance  had  lost  very  largely,  and  in  one  case  to  the  extent  o 
£160,000,  by  foreign  business,  and  expressed  his  wonder  that  losses  whicl 
were  so  notorious  should  not  have  been  known  to  the  directors. 

The  Chairman  said  that  in  point  of  fact  no  losses  had  at  that  tinj< 
arisen. 

Mr.  Eagle  felt  dissatisfied  at  the  statement  of  the  chairman,  which  b( 
said  failed  to  give  any  explanation  of  the  manner  in  which  those  enor 
mous  losses  had  been  incurred.  He  wished  to  ask  what  amount  of  lossef 
had  been  occasioned  by  advances  upon  the  shares  of  the  bank  ?  What  pro 
portion  of  its  losses  had  arisen  from  the  London  board,  and  what  proportioi 


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from  thfi  LiTerpool  board  7  (Hear.)  Whether  any  large  loBses  had  been 
iaemred  by  adranoea  on  BecoritieB  not  previously  examined  by  the  solicitor 
ol  the  company  ?  It  was  reported  that  there  had  been  large  advances  made 
in  that  way,  and  that  considerable  losses  had  resulted.  As  it  was  impos- 
sible  that  they  could  have  made  a  loss  of  £128,000  on  purely  mercantile 
bills,  perhaps  the  chairman  would  inform  the  meeting  what  were  the  secu- 
rities by  which  they  had  sustained  such  heavy  loss.     (Hear.) 

The  Chairman  was  glad  these  questions  had  been  asked,  and  was  very 
happy  to  be  enabled  to  give  replies  which,  though  they  might  not  be  satisf  ac- 
tory— for  it  was  scarc^y  possible  to  be  satisfied  when  they  had  lost  money 
— ^must,he  thought,  be  deemed  sufficient  in  a  business  point  of  view.  With 
regard  to  the  first  question — ^what  amount  of  losses  had  been  occasioned 
by  advances  upon  shares  of  the  bank — ^his  answer  was,  none  whatever. 
(Cheers.)    Neither  had  they  sustained  losses  upon  securities  of  the  cha- 
racter to  which  the  hou.  proprietor  had  adverted.    Their  losses  had  arisen 
principally  upon  mercantile  bills.    They  had  lost  fifty  or  sixty  of  their 
oooBtitnents,  who  had  failed  during  the  financial  pressure  of  the  latter 
part  of  the  last  half-year,  and  it  was  on  their  accotmts  that  the  bulk  of 
the  lossea  had  ensued.     This  was  in  reference  to  the  London  business. 
He  trusted  that  this  explanation  would  satisfy  the  shareholders  that  no 
iiregularity  bad  been  committed  by  the  directors  in  the  conduct  of  the 
busmen  of  the  bank.  With  regard  to  the  question  of  making  advances  upon 
shares,  he  quite  admitted  that  such  transactions  were  bad ;  but  when  shares 
were  offered  merely  as  collateral  security,  which  sometimes  it  was  hardly 
possible  to  prevent,  he  thought  it  would  not  be  doing  justice  to  the  pro- 
perty of  the  shareholders  to  refuse  them.    In  this  way  they  were  accepted 
by  other  banks,  and  he  saw  no  reason  why  they  should  not  do  the  same. 
CNf  course,  it  was  always  necessary  to  be  certain  that  the  advances  were 
oUierwiBe  well  covered,  and  he  was  happy  to  say  that  on  advances  so  made 
the  bank  had  sustained  no  loss  whatever.     (Hear.) 

Mr.  Morris  (Liverpool  director)  added  that  as  regarded  Liverpool  there 
had  been  no  losses  upon  advances  on  shares.  There  had  been  an  exoep- 
tional  loss,  to  a  heavy  amount,  upon  one  single  account  in  Liverpool, 
aiiflbig  from  misplaced  confidence,  but  for  which  the  Liverpool  business 
would  have  shown  a  profit  of  £18,000,  or  more  than  10  per  cent,  upon  the 
capital  in  Liverpool ;  and  he  might  state  further,  that  up  to  the  30th  June 
ol  last  year  Liverpool  had  contributed  a  moiety  of  the  dividend  paid  to 
the  shareholders  and  £11,000  to  the  reserve  fund.  And  withdrawing  that 
£11^000,  the  Liverpool  establishment  would  have  left  off  this  year  with  its 
capital  perfectly  intact,  but  without  paying  a  dividend.  But  the  bank 
premises  which  had  cost  the  company  £18,000,  the  directors  had  been 
offered  £25,000  for,  so  that  in  this  item  alone  they  could  show  a  profit  of 
0,000.     (Hear,  hear.) 

Mr.  Conybeare  deprecated  the  hostility  which  a  small  section  of  the 
ihareholders  had  manifested  towards  the  directors  at  the  commencement 
of  the  proceedings,  and  suggested  that  the  board  should  examine  the  list, 
and  select  from  the  proprietary  some  of  the  largest  holders  and  the  most 
iiifln^yitiii.1  persons  to  add  to  the  number  of  the  directors,  thus  giving  con- 
fidence in  the  institution  to  the  public  out  of  doors.  It  must  l^  borne  in 
wiinH  that  this  was  not  the  first  bank  that  had  incurred  heavy  losses 
arising  from  the  competition  for  business  during  a  very  critical  period, 
and  it  was  bis  opinion  that  this  check  to  their  progress  while  they  were 
yet  young  would  ultimately  conduce  to  their  advantage.     (Hear,  hear.) 


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m 


He  did  not  agree  with  a  previous  spealker,  that  it  was  at  all  extraordixi 
that  so  large  a  loss  should  have  occurred  from  mercantile  bills, 
thought,  however,  that  the  board  were  to  blame  in  not  stating  in  tl 
report  a  maximum  siun  as  the  loss  which  might  in  the  worst  case  re 
from  the  heavy  acooimt  alluded  to  in  the  paragraph  quoted  by  Utte  ch 
man,  nor  could  he  help  thinking  that  the  durectors  had  been  guilt; 
considerable  imprudence  in  their  dealings  with  the  company  thro 
whom  that  loss  had  arisen.  For  some  time  past  the  paper  of  that  o 
pany  had  been  looked  upon  with  suspicion,  and  it  would  have  been  be 
if  the  Alliance  had  refused  to  have  anything  to  do  with  it.  At  all  events 
hoped  that  they  had  made  a  large  'commission  on  the  business.  There  v 
all  the  elements  of  sound  and  profitable  business,  and  he  believed  1 
notwithstanding  its  present  \mfortunate  position,  it  would  ten  yeuns  he 
be  one  of  the  lurgest  banks  in  the  oountj^  tiiat  had  consolidated  ita  \y 
ness  upon  nothing. 

Mr.  F.  Cliffoid  thought  that  there  were  two  points  idiieh  especii 
required  explanation.  The  first  was  as  to  the  issue  of  the  new  shares,  i 
the  circumstances  under  which  that  issue  w^us  made.  (Cheers.)  He  I 
that  the  issue  of  those  shares  at  the  time  was  a  cmeL  injustice  to 
shareholders.  (Hear,  hear.)  It  might  be  said  that  up  to  t^t  x>^ 
they  had  sustained  no  losses,  and  that  the  premium  paid  upon  the  i 
shares  was  perfectly  fair ;  but  that,  if  true,  was  the  greatest  possible  c 
demnation  that  could  be  passed  upon  the  directors.  (Cheers.)  Beea^ 
if  the  losses  had  not  then  actually  occurred,  they  must  have  been  accrai 
and  the  board  must  have  been  strangely  negligent  of  their  duty  not 
have  known  of  it.  The  shares  were,  in  fact,  issued  to  the  old  shareholder 
£20  premium,  when  it  was  quite  clear  it  ought  to  have  been  known  to 
directors,  if  it  was  not,  that  they  were  not  worth  half  that  amoi 
Another  point  requiring  explanation  had  reference  to  the  absence  of 
manager.  Now  he  (Mr.  Clifford)  by  no  means  wished  to  attack  an  abs 
man,  but  he  wap  /.lite  sure  that  even  the  friends  of  Mr.  Thompson  m 
regret  that  he  was  not  present  to  face  the  meeting  and  explain  the  circt 
stances  under  which  these  heavy  losses  had  arisen  under  his  managemc 
(Cheers.)  He  wished  to  ask  whether  it  was  true,  as  had  been  aHe^ 
that  Mr.  Thompson  had  gone  out  to  India  as  the  servant  of  another  ba 
with  the  concurrence,  support,  and  even  at  the  instance  of  the  diaim 
of  the  Alliance  Bank  ? 

The  Chairman  replied  that  the  losses  the  bank  had  sustained  arose  si 
seqaently  to  the  issue  of  the  new  shares,  and  from  the  commercial  cr 
and  the  difficulties  which  weighed  upon  commercial  affairs  generallvdur 
the  past  autumn.  At  the  time  the  shares  were  issued  the  bank  had  s 
tained  no  loss,  and  was  in  all  respects  sound.  Whether  it  was  politic 
put  so  high  a  premium  upon  those  shares  as  £20  was  another  question  wh 
it  was  for  the  shareholders  to  judge  of  at  the  time.  But  whether  or  s 
that  premium  was  now  the  property  of  the  Bhareholders,  and  so  much 
remained  of  it  was  part  of  the  assets  of  the  bank.  When  the  propo 
was  made  to  the  shareholders  to  rate  them  at  £20  premium  the  origii 
shares  stood  at  double  that  premium,  and  it  was  a  question  for  the  sha 
holders  themselves  to  determine  whether  thoy  would  take  them  or  n 
Undoubtedly  Mr.  Thompson  was  oue  of  the  managOTs  during  the  unfori 
nate  period  embraced  in  the  report,  and  although  the  chief  responaibil] 
rested  on  him,  ihe  directors  were  also  in  their  degree  liable.  It  was  n 
however,  at  his  (the  chairman's)  instance  that  Mr.  Thompson  went 


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USa.  It  mm  tme  ha  was  the  ohainnttn  of  the  bank  for  which  that 
^BBtieman  had  goaie  out;  but  the  first  he  knew  of  the  intention  to 
appoiat  him  waa  from  the  manager  of  that  bank  and  Mr.  Thompson 
hwsetf ,  and  seeing  that  he  was  peculiarly  well  qualified  for  the  class  of 
hnauMM  he  would  have  to  manage  in  India,  and  that  if  he  renuuned  he 
was  not  likely,  alter  what  had  occurred,  to  be  long  retained  in  his  position, 
at  ih»  ^tiTi¥nA<»,  he  did  not  think  it  right  to  oppose  the  appointment.  The 
great  fault  <^  Mr.  Thompson  was  too  great  an  eagerness  to  do  business, 
hot  to  that  temptation  he  would  not  be  exposed  in  his  new  position. 

A  Shareholder — ^But  why  did  he  not  remain  to  attend  the  present  meet- 
ing?    fflearyhear.) 

The  Chairman  had  oertainlv-  not  wished  him  to  go  away,  although  he  did 
not  see  any  great  adrantage  wat  could  have  resulted  from  his  being  pre- 
sent; but  the  6Mt  was,  that  had  he  not  gone  out  when  he  did,  he  would  in 
all  probabili^  have  loat  the  a]^K>intment. 

Mr.  GUanioIle  drew  attention  to  an  error  of  £200  in  the  accounts,  which, 
he  contended,  vitiated  the  entire  statement. 

A  Director  explained  Idiat  the  error  was  in  the  printing ;  the  additiona 
were  all  oorrect. 

A  Shareholder  urged  that  where  there  was  one  error  there  might  be 
■any,  and  reoommeiided  that  the  aooounts  i^otdd  be  referred  back  to  the 
board  for  revision.  He  further  called  for  details  of  the  various  items,  and 
mpetuiDy  for  partusulars  of  the  large  item  of  £6,400,000  for  bills  of  ex- 
donge,  loana  to  customers,  and  paat-due  bills.  In  Ihe  colony  which  he 
eame  from,  in  order  to  prevent  the  gigantic  swindling  that  had  been  there 
pEactiBed  in  connection  with  joint-G^ck  companies,  minute  details  of  such 
items  were  required,  and  he  thought  they  should  be  here.  He  wanted  to 
know  what  amount  of  money  had  been  advanced  to  shareholders,  upon 
nhai  seooritieB,  and  what  proportions  of  such  advances  had  been  recovered. 
His  had  been  told  that  vary  large  advances  had  been  made  to  Liverpool 
rimeholdera  to  aid  them  in  carrying  on  cotton  speculations.  Was  that 
Hieesaet 
Mr.  MoriiS'-^Not  to  the  extent  of  one  shilling.  (Cheers.^ 
Ifar.  Keatea  (DireetorH-In  Liverpool  we  are  in  the  miost  of  gigantic 
oetteD  speenlatioBs,  but  it  has  been  our  ^at  object  to  steer  clear  of  them 
attegeiher,  and  we  have  been  successful  in  doing  so.  (Cheers.)  We  have 
not  made  any  advancea  on  shares  in  Liverpool. 

A  Liverpool  Shareholder  said  that  he  Imew  of  his  own  knowledge  that 
the  lA^mfOfA  bnsinesa  of  the  bank  had  been  properly  conducted. 

The  Shfffeholder  who  had  reoommendedthe  sending  back  of  the  balance- 
sheet  forrvfiMon  tendered  an  amendment  to  that  effect,  and  proposing  that 
the  Bseeifeiiig  should  be  adjourned  to  reoeive  a  revised  statement  of  accounts; 
bat  ih»  amendment  was  not  seconded. 

Mr.  Patterson  said  that  etrery  fair  question  ought  to  be  fully  and  fairly 
asweFed'  by  ike  board^  but  unfair  questions  did  not  deserve  to  be 
attweredk  (Bear,  hear.)  They  had  been  asked  the  amount  of  the  bills 
mtslandilig.  As  started  in  the  report,  it  was  £3,716,090,  the  whole  of 
i^ach  was-  foUy  covered;  (Hear,  hear.)  The  Alliance  were  bankers  for  a 
ovmber  of  foiwga  inetitutions,  which  had  the  power  to  draw  xipon  the 
baaki  hot  only  against-cover  which  the  directors  believed  to  be  satisfactory* 
Thus,  if' the  Bwt  of  Hindustan,  for  instance,  drew  to  the  extent  of 
aXU^fiOO  upon  tiie  i^Jliance,  it  must  send  at  Hke  same  time  a  draft  for 
SMfiO^upon-i^^  Unien,  the  London  Joint  Stock,  or  some  other  weU^ 


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known  bank  here,  before  their  bills  were  aooepted.  It  was  only  .when 
they  had  these  draits  in  hand  that  the  acceptance  of  the  bank  was  g^ven 
and  it  was  but  right  to  add  that  upon  such  bills  they  had  never  lost  oiki 
farthing,  or  were  ever  likely  to  lose  anything,  while  upon  the  other  haac 
they  realised  a  very  good  commission  upon  the  amount  of  the  busineBi 
done.  (Hear,  hear.)  Some  of  these  foreign  banks  had  ao  open  credit 
which  they  were  boimd  to  put  right  twice  a  year  ;  and  should  the  Bank  oi 
Mauritius,  for  instance,  overdraw  for  a  certain  time,  and  for  an  amount  foi 
which  they  were  perfectly  good,  they  were  bound  to  send  cover  of  som< 
kind  which  should  be  held  satisfactory,  every  six  months.  If,  therefore 
there  was  any  part  of  the  business  of  the  bank  which  was  safe,  it  was  this 
The  directors  were  quite  ready  to  go  throiigh  the  whole  of  the  affairs  oi 
the  bank,  and  to  explain,  not  only  that  which  was  good,  but  that  whid: 
was  bad.  (Hear,  hear.)  When  they  last  met,  it  was  perfectly  wdl  known 
that  a  heavy  loss  had  been  incurred  through  one  particular  customer,  an<i 
when  he  told  them  that  the  Frankenheim  loss,  and  the  loss  in  Liverpool 
which  had  been  alluded  to,  amounted  to  one-third  of  the  whole  of  the 
losses  which  they  had  suffered,  they  would  scarcely  be  inclined  to  say  that 
the  directors  had  been  so  very  negligent,  or  had  done  so  very  badly 
(Hear,  hear.)  He  was  quite  preparMl  to  go  into  the  matter,  and  explau] 
how  the  losses  had  arisen.  (Hear,  hear.)  They  had  three  descriptions  oi 
business — ^viz.,  discoimting,  advances  on  loans,  and  credits.  It  was  in  the 
first  branch  that  almost  the  whole  of  their  losses  occurred,  and  yet  when 
they  were  told  the  rule  upon  which  that  kind  of  business  was  conducted, 
they  would,  he  thought,  admit  that  it  was  sound.  That  rule  was,  that  no 
bill  should  be  discounted  that  had  not  upon  it  two  good  names.  It  was 
clear  that  in  this  department  the  directors  must  be  very  much  under  the 
guidance  of  the  manager.  When  a  bill  was  brought  up  to  the  directon 
the  manager  was  questioned  as  to  the  parties  whose  names  appeared  upon 
it,  and  he  explained  acoordinf  to  the  results  of  the  inquiries  he  had  beeo 
enabled  to  make.  If  the  explauation  was  considered  sufficient  the  bill  was 
passed,  if  not  it  was  refused.  He  mentioned  this  to  show  the  difficulty 
under  which  a  young  bank  seeking  business  must  necessarily  labour.  Sud^ 
a  bank  was  generally  sought  out  by  young  customers,  who  were  not  always 
so  strong  as  older  houses ;  but  it  was  to  be  remembered  that  it  was  of 
young  customers  that  the  oldest  and  most  profitable  banking  establishments 
had  made  up  their  business.  (Hear.)  The  Barings  and  the  Boths- 
childs  had  originally  made  themselves  in  that  way.  (Hear.)  The 
total  of  the  losses  from  the  sources  he  had  mentioned  might  amount  to 
£80,000 ;  but  in  estimating  these  losses,  the  directors,  after  calculating 
them  as  accurately  and  as  liberally  as  possible,  had,  in  order  to  be  far 
above  rather  than  below  the  mark,  put  on  20  per  cent.  (Hear,  hear.) 
Bome  might  not  be  so  sanguine  perhaps  as  he  was,  but  he  entertained  a 
very  confident  hope  that  the  most  profitable  item  in  the  next  six  months 
would  be  this  bad  debts  account,  and  that  a  very  large  return  would  be 
obtained  from  it.  (Cheers.)  A  word  as  to  the  vague  account  referred  to 
in  the  report,  and  which  haa  been  already  commented  upon.  Against  that 
account  Uie  bank  held  securities  to  a  considerable  amount.  At  first  the 
directors  had  made  up  their  minds  to  write  down  the  probable  loss  from 
that  account  at  £50,000.  The  total  amount  of  the  debt  was  £160,000,  but 
they  held  securities  over  that  sum  to  a  very  large  extent.  (Cheers.)  (A 
Shfureholder — ^  To  what  extent  ?")  They  hcdd  securities  of  one  kind  or 
aaother  against  that  debt  to  the  amount  of  £450,000.    (Cheers.)    Of  these, 


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£lOd,000,  tbey  had  good  reason  to  believe,  after  making  every  inqii]i*y, 
would  be  paid  in  full.     (Hear,  bear.)     In  tbeir  estimate,  bowever,  tbe 
directors  had  taken  the  realisation  at  only  IOd.  in  the  pound.    Another 
batch  of  securities  which  they  were  io formed  by  some  competent  persons 
would  realiBe  12*.  6d.  in  the  pound,  and  by  others  20«.  in  the  pound,  they 
had  also  taken  at  10«.     This  would  bring  the  amount  up  to  £120,000,  and 
in  addition  to  these  they  had  a  mortgage  on  fifty  acres  of  property  in  the 
immediate  neighbourhood  of  London,  worth  at  least  £12,000.     Taking, 
therefore,  tbe  character  of  a  public  company  or  railway  company  as  nothing, 
tbey  had  in  the  securities  in  their  hands  assets  which  might  be  expected 
to  proiiuc-e  upwards  of  £130,000.    (Hear,  hear.)     Then  as  to  the  Liverpool 
debt :  against  that  they  held  a  large  quantity  of  sugar,  put  down  at  ISs, 
per  cwt.,  a  price  at  which  no  one  would  like  to  import  and  sell.    He  hoped 
he  had  satisfied  them  that  they  had  put  down  the  probable  ultimate  loss 
by  bad  debts  at  the  highest  figure,  and  they  had  done  so  in  order  that 
tbey  might  not  have  to  come  again  to  the  shareholders  to  write  off  a  fur- 
ther  sum ;  but  that,  on  the  contrary,  they  might  have  something  worth 
scoepting  to  hand  over  to  them  from  this  account  next  half-year.     There 
Were  some  persons  in  the  room,  he  feared,  whose  object  was  to  depreciate 
the  property — persons  probably  who  had  sold  a  large  number  of  shares 
which  they  had  not  in  their  possession,  and  whose  interest,  therefore,  it 
vss  to  keep  down  the  price  in  the  market.    His  object  on  the  contrary 
was  to  raise  their  property,  and  the  best  mode  of  doing  this  was  to  place 
the  facts  clearly  before  the  meeting  and   the    public.     He  saw  in  the 
accounts  some  thinss  which  to  him  appeared  full  of  hope.    The  gross 
business  of  the  Auianoe  Bank   would  bear  comparison  with  that  of 
any  bank  in  the  city  of  London,  and  what   was  the  genercd  character 
of  that  bnsinesB   might  be   gathered  from   the  fact  that  but  for  these 
exceptional  losses  the  operations  of  the  last  half-year  would  have  shown  a 
net  profit  at  the  rate  of  from  18  to  20  per  cent.    A  friend  of  his  had  said 
that  it  would  be  a  cheap  business  if  it  could  be  purchased  for  £200,000, 
and  it  was  very  questionable  whether  such  a  business  could  be  got  together 
in  London  for  £200,000.    That  would  be  equal  to  £5  a  share.    A  business 
that  yidded  a  net  profit  of  £60,000  in  the  half-year  was  not  to  be  despised. 
(Hear,  hear.)     The  duty  of  the  shareholders  in  such  a  crisis  as  tiie  pre- 
sent  was  to  assist  the  directors,  to  co-operate  with  them  in  giving  oonfi- 
dcDoe  to  the  public  if  they  thought  them  right,  or  if  they  thought  they 
had  done  wrong,  then  they  should  remove  them.     They  had  a  business 
which  was  the  envy  of  other  banks  in  London,  and  it  would  be  their  own 
fault  if  they  did  not  profit  by  it.    With  regard  to  the  premium  on  the  new 
shares,  he  considered  that  the  best  transaction  the  shareholders  had  ever 
made.     (Oh,  oh.)    If  they  had  not  paid  the  £20  a  share,  and  so  estab- 
lished an  ample  reserve  fund  to  meet  losses,  he  believed  Ibeir  shares,  in- 
stead of  standing  at  £5  premixun,  as  they  now  did,  would  have  fallen  to 
£9  or  £10  discount.    Although  they  had  paid  a  premium  of  £20  a  share, 
tbey  had  the  property  in  their  own  hands.    They  had  passed  through  the 
ftorm,  and  they  were  enabled  to  show  deposits  and  current  account  still 
to  the  extent  of  £2,800,000.     (Hear,  hear.)     Did  they  suppose  they  would 
have  had  anything  like  that  amount  of  business  now  if  they  had  not  had 
a  large  capital  and  an  ample  reserve  to  fall  back  upon  ?   What  would  have 
been  their  position  if  the  foreign  banks  would  no  longer  have  drawn  upon 
them  ?    It  was  the  amoimt  paid  as  premiums  upon  the  new  shares  which 


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kad  praetioaUy  860111^  to  them  their  preseiit  bnaimeas.  The  reserve  fane 
was  put  down  at  £200,000,  but  adding  arrears  due  on  the  new  sbarefl 
and  which  arrears  were  charged  10  per  cent,  interest,  and  8om< 
other  matters,  it  might  be  taken  at  £220,000.  That  was  equal  to  £i 
a  share ;  so  that  taking  all  things  into  account,  if  they  were  to  wind  u] 
to-morrow,  their  shares  would  be  worth  £30  each.  The  loan  aooouni 
which  amounted  to  between  £300,000  and  £400,000,  was  covered  by  secu 
rities  the  most  ample,  leaving  a  large  margin  without  the  probability  of  ; 
loss,  and  bringing  in  a  revenue  more  than  the  discount  account.  If  the;| 
oould  get  plenty  of  that  kind  of  business  it  was  far  better  than  discount 
ing  small  bills,  which  in  point  of  fact  was  a  new  class  of  business  whic] 
he^  sprung  up  of  late  years,  and  which  the  old  bs^kers  formerly  refusei 
to  entertain.  As  to  the  credits,  he  had  explained  that  they  yielded  a  gooi 
oommission  to  the  bank,  and  if  properly  managed  they  could  not  possibl; 
result  in  loss.  He  held  that  there  was  in  the  bank  still  a  most  valuabl 
property,  which  could  not  but  be  highly  remunerative  if  prudently 
managed.  The  directors  were  anxious  to  take  the  opinion  of  the  share 
holders  an  to  the  future  organisation  of  the  board,  being  willing  to  retin 
or  stay  by  the  ship,  as  might  be  decided.    (Hear.) 

Mr.  Heiron  expressed  his  satisfaction  with  the  explanation  given  by  Mr 
Patterson.  It^was  the  duty  of  the  shareholders  to  support  the  ^board 
(Hear,  hear.)  He  attributed  the  opposition  to  a  few  IsGrge  bear 'share 
holders. 

Mr.  Neish  could  not  see  any  advantage  in  adjourning  the  meetuig  merel} 
because  a  clerical  error  appeared  in  the  accounts,  the  additions  beins 
correct.  He  condemned  a  proposition  that  had  been  mooted  out  of  doors 
that  a  committee  of  investigation  should  be  appointed,  as  that  would  drive 
away  their  customers ;  but  he  thought  a  committee  of  four  or  five  siiare- 
holders  should  be  appointed  to  confer  with  the  board,  with  a  view  oi 
taking  steps  for  completing  and  strengthening  the  direction,  and  aasistini 
in  establishing  a  strong  and  efficient  management. 

Mr.  A.  Walls  thought  such  a  course  would  be  unnecessary  if  thedirectoD 
would  themselves  select  four  or  five  shareholders  to  co-operate  with  them 
in  order  to  reorganise  the  management. 

Mr.  King  urged  the  importance  of  being  united  in  whatever  course  the} 
decided  upon.  He  thought  nothing  more  was  necessary  than  to  pass  th< 
resolutions  submitted  by  the  board,  and  if  they  thus  showed  their  confi. 
dence  in  the  directors,  he  believed  that  in  ^Ye  years  hence  they  would  be 
stronger  and  more  prosperous  than  if  the  present  difficulties  had  nevei 
occurred. 

Mr.  Way  spoke  in  a  similar  strain,  but  was  of  opinion  that  in  filling  up 
the  number  of  the  board^  men  should  be  chosen  who  had  time  and  leisure 
to  attend  to  the  duties  of  the  direction,  and  not  such  as  were  engaged  in  sc 
many  concerns  that  it  was  impossible  they  could  attend  properly  to  th« 
duties  of  either.  He  would  support  a  vote  of  confidence  in  the  bcMtfd ; 
and  added  that,  from  what  he  had  seen  of  the  late  manager,  Mr.  Tkemp- 
son,  he  believed  him  te  be  a  very  able  man. 

After  one  or  two  other  shar^olders  had  addressed  the  raeetmg,  the 
motion  adopting  the  report  was  put  and  carried  unanimonsly,  and  amid 
much  cheering. 

Mr.  Conybeare  moved  a  cordial  vote  of  thanks  te  the  diairman  and 
directors,  mentioning  specicdly  Mr.  Patterson,  whose  lucid  and  foUexplana- 


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tioii  waft  most  latiafiMtory.      Hie  hoped  that  this  was  the  only  time  when 
the  bottid  would  have  to  report  moh  an  nnfortonate  state  of  affairs  aa  they 
had  now  lud  before  them,    fflear,  hear.) 
The  meeting  then  aeparateo. 


WABRANT  FINANCE  COMPANY. 

Thb  first  half-yearly  general  meeting  of  this  company  was  held  at  the 
London  Tafem,  on  the  24th  of  January ;  Mr.  De  Pass  in  the  chair. 

The  following  report  was  read  : — 

^  The  diroctoiB  have  the  pleasure  to  submit  to  the  shareholders  their 
report  on  the  buainesa  of  the  company  for  the  first  half-year  of  its  opera- 
tions. After  proyiding  for  every  charge  on  the  business  up  to  the  31st 
nliunOy  there  remains  a  balance  of  profit  of  £13»773. 6».  lid.,  out  of  which 
the  directors  recommend  the  payment  of  a  dividend  of  7<.  6d.  per  sharo, 
equal  to  £7. 10«.  per  cent,  per  annum,  free  of  ineome  tax.  This  wiU  leave 
£i,086.  IQs,  lid.  to  be  carried  forward.  It  has  been  the  first  object  of  the 
difectors  to  TinMntam  a  strong  financial  position  during  a  time  of  great 
OMrcantile  depression^  by  undertaking  none  but  the  soundest  business,  and 
ateadfastly  avoiding  oommitments  for  lengthened  periods.  Although  this 
foliey  has  comparatively  restricted  the  business  of  the  company,  it  has 
SMulted  in  almost  entire  immunity  from  loss,  on  trausoctioDs  amounting 
in  the  aggregate  to  £901,870.  In  the  exercise  of  the  power  conferred 
vpon  them  by  the  articles  of  associaldon,  the  directors  appointed  Messrs. 
Quilter,  BaU  is  Co.  to  audit  the  accounts  now  presented ;  and  as  the  ap* 
pointmant  of  auditors  for  the  ensuing  year  rests  with  the  shareholders, 
Messrs.  Qnilter,  Ball  dc  Co.  offer  themselves  for  re-eloction. 

"<  Balanoe-aheet,  Slat  December,  1864.— Dr. :  To  capital  subscribed, 
ilfiOOflOO ;  called  up,  £200,000,  viz. :— £1  per  share,  payable  on  21st 
Mveh,  1864,  £20,000 ;  £2  per  share,  payable  on  4th  April,  1864,  £40,000 ; 
£2  per  share  payable  on  25th  April,  1864,  £40,000 ;  £6  per  shore,  payable 
ea  Ut  September,  1864,  £100,000 ;  to  bills  payable,  £334^90 ;  to  sundry 
se^tncs,  £3,173. 14«.  3d. ;  to  profit  and  loss,  balance  at  credit  of  that 
acoount,  £13,773.  6a.  lid. ;  total,  £561,137.  Is.  2d.  Cr. ;  -By  cash  at 
eompuiy's  bajiicen,  on  deposit  and  current  accounts,  £232,160.  13a.  7d. ; 
hy  bills  nceivable  on  hand,  £2,571.  18«.;  by  customers'  accounts  for 
advanoes  against  produce,  warrants,  shares,  and  other  securities^ 
£311^321. 12a.  Id. ;  by  preliminary  expenses,  £4,860.  16a.  6d. ;  by  office 
fKaitnre,  stamps,  <Sr&,  £222.  Is. ;  total,  £551^37.  la.  2d. 

**  Profit  and  loss  account,  from  13th  May  to  3l8t  December,  1864.  Dr. : 
—To  eiq^naesof  the  establishment,  directors'  remuneration,  and  allowanoe 
far  Ind  debts,  £4,737. 12a.  5d. ;  to  balance  carried  down,  £13,773.  6a.  lid. ; 
tetal,  £18^10. 19a.  4d.  To  dividend,  at  the  rate  of  £7. 10a.  per  cent,  per 
mmank  on  paid-up  capital  (being  7a.  6d.  per  shave),  £7,600. ;  to  inorane 
tui  on  thai  amount,  £187. 10a. ;  to  balance  oarried  to  profit  and  loss  new 
SfiOBimt,  £6,086.  16f.  lid.;  total,  £13,773.  6a.  lid.  Cx\  :— by  interest 
ud  commJSBion,  £18,454.  I80.  4d. ;  by  transfer  £ees,  £56.  la. ;  total, 
BAJSi^  Ida.  4dL    By  balance  brought  down,  £13,773.  6a.  lid.'' 

T&e  CSiairmao,  in  moving  the  adoption  ci  the  report,  said  the  character 
d  the  Vi««<»M  tranaacted  since  the  formation  of  the  company,  extending 
ovsr  a  period  o£  7^  months,  was  sach  as  to  give  the  directors  every  confi, 
dnoA  and  ha  va&tor^to  hope  th^  the  restdt  was  aa  satisfactoiryD  to  the 


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Warrant  Finance  Company. 


shareholdeGTB  as  it  was  to  the  board.  The  aooounts  set  forth  the  precu 
position  of  their  afiairs,  and  as  the  assets  of  the  company  were  nudnl; 
composed  of  cash  and  securities  there  need  be  no  apprehension  of  depreoia 
tion.  It  might  be  asked  why  they  had  not  made  inyestments  in  acoordanc 
with  the  articles  of  association.  They  did  not  do  so  because  they  though 
it  more  prudent  in  a  young  financial  company  to  keep  their  cash  well  i 
hand,  so  as  to  be  able  to  meet  any  pressiure  of  the  moment  without  incui 
ring  the  risk  of  loss  or  gain  arising  from  fluctuations  in  market  Talu( 
The  preliminary  expenses  might  seem  larger  than  was  at  first  anticipatec 
but  it  should  be  recollected  that  the  original  intention  was  to  carry  g\ 
operations  in  London,  Liverpool,  and  Manchester,  and  that  a  heavie 
outlay  was  incurred  on  this  account,  in  advertisements,  and  in  the  employ 
ment  of  brokers  and  solicitors.  Although  their  operations  were  ultimately 
confined  to  the  metropolis,  it  was  not  to  be  supposed  that  the  money  » 
expended  was  entirely  lost,  for  they  had  many  applications  from  provincia 
towns  arising  solely  from  the  fact  that  the  business  and  objects  of  th( 
company  had  been  well  circulated  in  those  towns.  The  amount  of  ffrosi 
profit,  £18,454,  earned  entirely  from  interest  and  commission,  afforded  th< 
directors  the  pleasure  of  stating  that  they  believed  it  to  be  equal  to  th( 
expectations  of  the  most  sanguine.  At  aU  events,  if  it  was  borne  in  min< 
that  the  last  four  or  five  months  had  been  a  period  of  unexampled  depres 
sion  in  the  mercantile  community,  it  would  be  seen  that  a  net  residt  o 
£13,770  was  not  a  bad  profit  to  have  to  account  for  without  incurring,  com 
paratively  speaking,  any  great  risk.  (Hear,  hear .^  The  company  was  estab 
lished  for  the  purpose  mainly  of  affording  aavances  on  produce,  dod 
warrants,  and  securities  of  that  description,  and  considering  the  enormoni 
magnitude  of  the  trade  of  this  cotmtry,  he  ventured  to  say  that  no  bettei 
field  could  be  presented  for  operations  of  that  kind  than  that  which  the  nam< 
of  this  company  indicated.  But  circumstances  somewhat  militated  agains 
their  doing  the  extent  of  business  which  they  contemplated  in  this  d& 
partment.  They  were  scarcely  well  started  in  harness  before  the  valtiei 
of  the  leading  articles  of  produce  were  seen  to  undergo  not  only  a  fluctu 
ation,  but  a  fluctuation  of  a  downward  character.  This  made  the  direc 
tors  cautious  to  make  advances  on  produce  imless  they  were  covered  by  i 
large  margin.  (Hear,  hear.)  On  this  account  the  business  in  this  de 
paitment  was  more  restricted  than  they  had  reason  to  expect,  but  th< 
result  was  so  far  satisfactory,  that  they  had  been  saved  the  anxiety  an< 
danger  which  might  have  been  incurred  by  having  a  very  large  amount  oj 
obligations  outstanding  against  produce  valued  considerably  higher  thai 
their  experience  now  told  them  it  ought  to  stand  at.  That  period  hac 
passed  away,  and  there  was  now  a  more  even  and  regular  price  for  thi 
staple  articles  of  conunerce.  They  could  now,  therefore,  meet  their  cus- 
tomers on  more  reasonable  terms ;  that  was  to  say,  they  need  not  require 
so  large  a  margin,  whilst  the  security  to  the  company  would  be  greatei 
than  when  the  margin  was  larger.  From  the  other  branch  of  the  busines 
— ^the  advances  agiunst  stocks  and  shares — a  more  satisfactory  result  had 
been  obtained,  and  the  profits  acquired  were  much  larger  than  had  beei 
contemplated.  Li  both  branches  the  total  amount  of  business  transacted  wai 
over  £^M),000.  The  total  amotmt  of  the  company's  operations  in  advances 
to  customers  to  the  end  of  the  year  was  about  £311,000.  Thus  it  would 
be  at  once  seen  that  two- thirds  of  the  whole  amo\mt  of  business  had  run 
clearly  off,  and  that  £600,000  of  transactions  had  been  settled  and  paid 
for  by  their  cuBtomers.    That  was  a  very  satisfactory  state  of  things.    It 


^ 


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National  Bank  of  Liverpool,  Limited.  22l 

vas  but  jnstioe  to  the  officers  of  the  comiNUiy  to  state  that  the  saoeess  of 
the  oompany  was  yery  much  owing  to  their  zeal,  industry,  and  ability, 
sad  there  was  no  bnsinesa  which  reqidred  closer  application  and  more 
knowledge  of  details  than  that  in  which  they  were  engaged  The  acconnts 
kad  been  audited  by  Messrs.  Qnilter,  Ball,  and  Co.,  and  he  was  happy  to 
say  they  met  with  tiie  entire  approyad  of  that  eminent  firm.     (Hear.) 

Mr.  M'Andrew  seconded  the  motion. 

Mr.  Apps  asked  what  were  the  **  other  securities "  mentioned  in  the 
accounts  1 

The  CSiairman  aaid  they  consisted  of  bonds  and  other  securities  which 
oould  not  properly  be  classed  under  the  head  of  warrants  or  shares,  but 
'vhidi  were  negotiable  securities. 

A  Proprietor  asked  whether  the  chairman  did  not  cbnsider  the  finance 
branch  c^  business  more  profitable  than  that  which  consisted  in  advances 
on  warrants. 

Ihe  Chairman  considered  that  both  branches  were  finance  business. 
He  had  already  explained  why  the  warrant  business  was  of  so  limited  a 
«Wacter,  but  when  the  cause  he  had  mentioned  was  removed  there  was 
^ery  reason  to  hope  for  an  increase  of  business  in  that  direction.  The 
^lekan  would  not  lose  sight  of  any  opporttmity  to  employ  the  funds 
md  credit  of  the  company  for  the  advantage  of  the  shareholders.  The 
<iiiectors  had  to  ezerdse  a  considerable  amount  of  discretion  with  respect 
to  advances  upon  produce  where  the  fluctuations  of  price  had  been  so  great. 
Si^r,  lor  instance,  had  fallen  from  54b.  tci  36s.  They  made  advances  on 
ill  negotiable  securities,  and  then,  only  where  a  sufficient  margin  was 
obtained. 

The  motion  was  then  agreed  to,  and  a  dividend  of  7a.  6d.  per  share, 
free  of  inoome-tsEX,  pinrable  on  and  alter  the  2Gth  inst.,  was  declared. 

On  the  motion  of  Mr.  Roach,  seconded,  by  Mr.  King,  Messrs.  Quilter, 
BalL  and  Co.  were  appointed  auditors,  with  a  remuneration  of  £106. 

l£r.  King  moved  a  vote  of  thanks  to  the  directors  and  officers  of  the 
company,  and  ezporaesed  his  satisfaction  at  the  progress  <^  the  oompany, 
wbidi  was  alow  but  sure.  The  dividend  was  satisfactory,  and  it  might 
have  been  made  lairger  if  the  directors  were  anxious  for  a  wowy  prosperity. 
(Hear,hesr.) 

Mr.  Aire^  seconded  the  motion,  which  was  adopted. 

Tke  Chatrman  returned  thanks,  and  the  proceedings  terminated. 


NATIONAL  BANK  OP  LIVBRPOOL,  LIMITED. 

Ai  cv^nary  general  meeting  of  proprietors  was  held  on  the  24th  January, 
afc  ihd  banky  Liverpool ;  Mr.  R.  Dirom,  deputy  chairman,  presiding. 

The  Chairman,  before  calling  upon  the  managei"  to  report,  expressed  the 
rcfcet  of  the  directors  that  their  excellent  chairmaii  was  unable  to  preside 
OTer  the  meeting,  being  detained  at  home  by  indispositiou.    The  regret 
Mt  by  thfi  directors  would,  no  doubt,  be  shared  by  the  meeting. 
Hr.  Hjde  (general  manager)  then  read  the  following  report : — 
**  13iadiredborB  of  the  National  Bank  of  Liveipool,  Limited,  have  much 
pleaaare  in  piesonting  to  the  proprietors  their  thurd  report  on  the  business 
^ the oompttajy  andue  balance-sheet  to  the  31st  December,  1864.    During 
^  past  hf^^J^^^f  which  has  been  mivked  by  many  commercial  disasters, 
VOL.  XXX.  18 


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National  Bank  qf  Liverpool,  Limited* 


the  aim  of  the  direoton  has  been  to  transact  a  safe  rather  than  an  ertensi 
business ;  and  they  are  happy  to  state  that  they  haye  placed  a  sum 
iS12,671.  10«.  6d.  to  the  credit  of  profit  and  loss,  after  writing  off  all  bi 
and  amply  providing  for  doubtful  debts.  To  this  must  be  adc 
£5,514.  5«.  4d,  carried  forward  from  last  half-year,  leaving  £18,186. 15«.  1< 
for  distribution,  which  the  directors  propose  should  be  implied  as  f 
lows : — 


Diyidend  of  lOt,  per  share  on  20,000  shares,  £10  paid 
Dividend  of  U.  per  share  on  7,506  shares  £1  paid 

Keserve  fund,  increasing  it  to  X97,530 

Profit  and  loss  next  account        


£10,000  0 

375  6 

5,000  0 

2,810  9 

£18,186  15 


^  The  dividend  herein  proposed  is  at  the  rate  of  £10  per  cent,  per  anni 
(free  of  inoome-tax),  and  as  the  directors  have  been  able  to  provide  : 
this,  and  at  the  same  time  to  add  £5,000  to  the  reserve  fund,  and  caa 
forward  £2,810.  9s.  lOd.,  thev  consider  they  have  made  as  much  proffr 
as  could  have  been  expected  during  the  past  half-year.  The  assets  and  1 
bilities  of  the  bank,  and  the  profit  and  loss  account  to  the  Slst  Decemb 
are  as  follows : — 

AsSBTSs 

Cash  in  hand  and  at  bankers'      •«  jS124,256  0 

Dae  to  the  bank  on  bills  discounted,  loans  to  customers  &c.  1,264,406  1 

Bank  i>remiseB       17,757  4 

Preliminary  expenses 1,800  0 


£1,408,217    6 


LUBIUTIES. 

Capital  paid  up  £211,430;  capital  paid  in  anticipation  of  fb- 

tnre  calls  at  4  per  cent,  interest,  £8>I08    ..*        

Reserve  fiind  ...        ..•        ...        •••        ••%        •.•        ,«« 

Dae  by  the  bank  on  deposit  and  current  accounts,  bills  on 
Ix>ndon,  &o.   ^..        .*•        ...        •••        •••        »••        ••• 

Rebate         ...        .«•        ...        ...        ...        ...        ...         ..* 

Profit  and  loss        


£910,588 
92,680 


1,072,257  10 

5,706    0 

18,1S5  15 


£1,408,217     6 


Pbofit  akd  loss  acoount. 
Balance  from  last  half-year         

Nett  profit  for  half-year  ending  December  81,  1864,  a(ter  wri- 
ting off  bad  debts  and  providing  fordoabtf^  debts, 
£18,677.  10s,  6d,;  less  rebate  at  6  per  cent,  on  bills  cur- 
rent £5,706  ;  proportion  of  preliminary  expenses  £300— 

ao,UUd  ...  •••  •••  .••  •••  •••  ...  ... 


£5,514    5 


12,671  10 
£18,185  15 


^  In  accordance  with  the  resolutions  of  two  eslraordinafy  meetings,  he 
respectively  on  17th  August  and  6th  September  last^  10^000  new  ihai 


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National  Bank  of  Liverpoolj  Limited.  223 

were  offered  to  the  proprietom  at  £6  premium ;  and  though  between  the 
dates  of  the  meeting  and  the  time  fixed  for  taking  up  these  shares,  serious 
pressure  ooconed  in  the  money  market,  7,606  out  of  the  10,000  were  ac- 
cepted by  the  proprietors  to  whom  they  were  offered,  leaving  2,494  on 
hand,  which  other  shareholders  offered  to  take  at  the  premimn  of  £5  per 
share,  but  which  offers  the  directors  declined.  The  premimn  on  the 
7,506  new  shares,  say  £37,630,  has  been  carried  direct  to  the  reserve  fund, 
in  accordance  with  the  resolution  of  the  last  half-yearly  meetrag.  The 
directors  now  offer  to  the  proprietors  the  remaining  2,494  new  shares,  at 
a  premium  of  £7  per  share,  in  the  proportion  of  one  new  to  ten  existing 
ibarea,  provided  tne  sum  of  £12,  being  £6  call  and  £7  premium,  be  paid 
here,  or  to  the  National  Bank,  London,  or  its  branches,  on  or  before  the 
4th  of  February  next.  These  shares  will  hereafter  rank  the  same  as  the 
7,506  new  shares,  and  be  liable  to  the  call  of  £6  which  will  be  made  on 
the  whole  10,000  shares,  payable  about  10th  April  next.  The  portion  of 
the  new  premises  not  occupied  by  the  bank  has  been  let  on  satisfactory 
terms.  The  directors  have  re- appointed  Mr.  Harmood  W.  Banner,  of 
liverpool,  and  Mr.  James  Costello,  of  Dublin,  as  auditors  for  the  present 
year,  which  will  require  the  confirmation  of  the  proprietors.  The  direc- 
tors who  retire  by  rotation  are  Joseph  Hubback,  Robert  Higgin,  and 
J.  K.  M'Kenna,  Esquires,  who,  being  eligible,  offer  themselves  for  re- 
election." 

The  Chairman,  in  moving  the  adoption  of  the  report,  said  that  the 
balance,  as  the  proprietors  would  observe,  had  very  much  increased  ; 
indeed,  it  more  than  doubled  that  of  this  time  last  year ;  and  that  they 
Iiad  been  able  to  give  the  shareholders  9  per  cent,  interest,  and  to  add 
£10,000  out  of  the  profits  to  the  reserve  fund,  although  the  past  half  year 
had  not  been  favourable  to  banking  ox>erations.  He  had  observed  that 
in  the  reports  of  some  of  the  banks,  the  amount  of  which  they  were  under 
aoeeptanoe,  was  given.  This  was  not  given  in  their  report,  but  he  might 
state  that  the  amount  was  £23,800.  He  begged  to  propose  that  the  report 
be  reeeived  and  adopted. 

Mr.  S.  B.  €hraves. — €^tlemen,  in  seconding  the  adoption  of  the  report, 
I  have  merely  one  point  which  perhaps  has  escaped  the  chairman's  notice. 
It  appears  to  me  desirable  that  some  explanation  should  be  given  to  you 
as  to  why  £7  a  share  has  been  fixed  upon  the  2,400  and  odd  shares  in  the 
hands  of  the  directors  to  dispose  of  amongst  the  shareholders  of  the  bank. 
I  may  mention  that  when  these  shares  were  returned — for  they  were  not 
taken  up — ^the  market  value  scarcely  came  up  to  the  point  of  £6 ;  but 
some  large  shareholders,  who  had  confidence  in  the  bank,  made  an  offer  to 
take  the  whole  of  the  shares  off  our  hands  for  the  sum  of  £6  per  share. 
That  at  the  time  was  a  tempting  offer — it  came  amidst  a  considerable 
aumunt  of  depression — but  the  directors  considered  that  it  was  more  ad- 
visable  to  retain  them,  and  dispose  of  them  at  the  proper  time  amongst 
the  shareholders  generally,  and  not  to  distribute  them  amongst  any  small 
ledaon  of  the  proprietors.  The  difficulty  we  had  to  contend  with  in  fix- 
ing liie  Talne  m  them  arose  partly  from  the  impossibility  of  supplving  the 
nnaUer  shareholders  with  a  pro  rata  proportion  of  these  shares.  It  is  pro- 
posed  ih^  osie  in  ten  should  be  the  proportion,  and  it  follows  that  anyone 
folding  undar  ten  shares  will  not  participate  in  the  advantages  which  arise 
from  getting  the  shares  at  this  price.  Therefore,  as  a  matter  of  fairness 
to  the  smaller  shareholders,  it  was  not  considered  advisable  to  offer  these 
shares  at  the  prio^  ^  which  they  were  previously  offered.    Then,  again. 


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National  Bank  of  Liverpool,  Limited. 


it  is  only  fair  that  those  shareholders  who  hold  ten  and  over,  and  take 
responsibility  of  holding  them  at  the  price  of  £7»  should  receive  any 
yanta^e  arising  out  of  that  position.  But  the  smaller  shareholders  i 
participate  in  the  advantages  which  arise  from  the  reserve  fund  in 
same  way  as  any  other  shareholders  of  the  bank.  I  may  also,  perhs 
mention  that  it  is  the  intention  of  the  bourd,  if  it  should  be  your  pleas 
to  pass  the  report,  to  carry  £5  premium  of  the  £7  to  the  credit  of 
reserve  fund,  and  to  deal  specially  with  the  £2,  which  I  shall  call  **  ei 
premium  "  for  the  moment,  in  paying  off  preliminary  expenses,  or  insc 
other  way  which  in  the  discretion  of  the  directors  will  best  promote 
interests  of  the  bank.     (Applause.^ 

The  Chairman  then  put  the  resolution,  which  was  adopted  unanimous 

The  Chairman. — I  beg  now  to  propose  that  Messrs.  Hubbaok,  Hi^g 
and  M'Kenna,  the  three  directors  who  retire  by  rotation,  in  acooroa 
with  the  articles  of  association^  be  re-elected. 

Mr.  N.  J.  Lalor  said  he  had  very  great  pleasiire  in  seconding  the  re 
lution.  He  thought  the  proprietors  would  agree  with  him  that  they  ha 
source  of  great  gratification  in  the  report  and  statement  of  accounts, 
they  had  not  only  been  able  to  declare  a  very  substantial  dividend,  1 
also  to  carry  a  still  more  substantial  siun  to  the  credit  of  the  reserve  fa 
He  thought  if  there  was  any  item  in  the  account  which  pleased  him  m 
than  another  it  was  that  of  adding  a  sum  to  the  reserve  fund ;  becai 
althouffh  the  financial  crisis  had  passed  away,  he  would  be  a  rash  man 
deed  who  would  say  that  the  financial  horizon  was  imdouded.  The  cri 
had  passed  awav  and  they  had  escaped  {  and  it  had  done  some  good, 
cause  it  had  cleared  the  commercial  horizon  of  a  great  many  of  th 
bubble  companies,  and  a  great  many  other  matters  wMch  weighed  heav 
on  the  Mon^  market.  He  was  sure  the  proprietors  generidly  ^oi 
agree  with  him  in  saying  that  the  statement  of  accounts  was  satisfacto 
and  that  the  thanks  of  the  shareholders  were  due  to  the  directors  for  t 
way  in  which  they  had  conducted  the  affairs  of  the  company  during  i 
past  year,  aided  as  they  had  been  by  their  very  able  managers. 

The  chairman  then  moved,  and  Mr.  J.  P.  ^Corcoran  seconded  the 
appointment  of  Mr.  HarmcK>d  W.  Banner,  of  Liverpool,  and  Mr.  Jai 
Costello,of  Dublin,  as  auditors. 

The  motion  was  carried  unanimously. 

Mr.  Harmood  Banner  said  that  any  remarks  that  he  might  have  had 
make  as  to  the  affairs  of  the  company  had  been  anticipated  by  the  previ( 
speakers,  and  he  would  therefore  content  himself  by  moving  that  1 
thanks  of  this  meeting  be  given  to  the  chairman  and  directors  for  th 
Me  administration  of  the  i&airs  of  the  bank. 

The  motion  having  been  seconded,  was  carried  by  acclamation. 

On  the  motion  of  Mr.  P.  Hunter,  a  vote  of  thanks  was  unanimooi 
passed  to  the  manager,  sub-manager,  and  other  officers  of  the  bank  i 
their  efficient  services  during  the  past  year. 

Mr.  Hyde  briefly  responded. 

A  vote  of  thanks  to  the  chairman,  on  the  motion  of  Mr.  Henry  Harris 
brought  the  prooeedings  to  a  dose. 


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CONSOLIDATED  BANK  (LIMITED). 

Trb  hilf.yearly  general  meeting  of  the  shareholdera  in  thiB  bftnk  wta 
held  on  the  24th  January  at  the  London  Tavern,  Biahopsgate  Street ; 
Mr.  T.  A.  Hankey  in  the  chair. 

The  following  report  was  read  hy  the  manager : — 

"  The  directors  submit  the  statement  of  accounts  and  baUncersheet  of 
the  bank  for  the  half-year  ending  31st  December,  1864.  During  that 
period  the  a^ital  of  the  company  luts  hee^  slightly  increased  by  the  sale 
of  593  sharas,  to  make  the  total  issue  150,000  shares,  representing 
£600,000  paid-up.  The  net  profits  of  the  bank  during  the  half-year  (after 
dedoctii]^  current  expenses,  rebate  of  interest  on  biBs  not  due,  interest 
accrued  to  customers,  income-tax,  and  directors'  remuneration,  and  making 
ample  proFiaion  for  bad  and  doubtful  debts)  amounted  to  £62,351  Ss.  9d. ; 
the  baUnoe  left  uqappropriated  on  the  30th  of  June  was  £6,976. 6s.  lOd. ; 
the  premiums  on  shares  sold,  £i^bS,  17«. ;  making  a  total  of  £73,486. 
12s.  7<f . ;  from  which  it  is  proposed  to  carry  to  reserved  surplus  hmd, 
£15,000;  and  premium  on  ^ares,  £4^58. 17«. ;  to  declare  a  dividend  for 
the  half-year  at  the  rate  of  10  per  cent,  p^  annum,  and  a  bonus  of  3«. 
per  share  (being  an  additional  7}  per  cent,  per  annum)  free  of  iiioome-tax, 
£52,500;  to  carry  forward  to  next  account,  £1,827.  15^.  7d.;  total 
£73,486.  X2s,  7d, ;  the  reserved  surplus  fund,  which  stood  ovl  June  30  at 
£38,500,  win,  by  the  addition  of  six  months'  interest,  £962.  10«.,  and  the 
appropriations  now  recommended,  £19,158. 17<  ,be  increased  to  £58,621. 7«. 
The  meeting  will  be  asked  to  confirm  the  election  by  the  board  of  'iir, 
William  Smith  as  a  di^rector  of  the  baok,  to  supply  the  yacancy  pccasipned 
hy  ihe  resignation  of  Mr.  Benjamin  Wilson  in  the  month  of  August  last. 
Hesare.  Matthew  Curtis  Thomas  Fairbaim,  Edward  Byley  Luigyorthy, 
Ive  Madue,  John  Pender,  and  Jamefi  Aspinall  Turner,  are  the  directors 
who  retire  by  rotation ;  being  eligible,  they  offer  themselves  for  re-election. 
Aeoordix^  to  the  provisions  of  the  deed  of  settlement,  the  auditors  pffer 
tbanselves  for  re-election  by  the  shareholders  at  this  meeting. 

'^  Balance-sheet.— December  31,  1864.— Liabilities.— Df. :  To  capital 
paid  up,  viz.,  150,000  shares  at  £4  each,  £600,000 ;  to  amount  due  by  the 
bank  Yqwn  current,  deposit,  SQd  other  accounts,  £3,411,206.  2a,  Sd, ;  to 
pooepftanees,  £658,867.  0<.  9d. ;  to  balance  of  profit  ieuid  loss  account, 
hroa^t  forward  from  June  30, 1864,  £6,976.  6«.  lOd.  \  to  reserve  fund, 
£2SfiOO, ;  to  interest  added,  £962. 10«.  \  to  premium  on  shares,  £4,158. 17«. 
— £43,621.  Is. ;  to  balance,  being  gros9  profits  for  the  half-year  ending 
December  31, 1864,  after  payment  of  intereifBt  to  ouston^ers,  and  making 
ample  provision  for  bad  and  doubtful  debts,  £99,315.  6«.  4(2.;  total, 
£1^19,986.  3a.  Id.  Assets. — Cr. :  By  investment  in  government  stpcks, 
viz..  New  Three  per  Gents,  and  Tl^ree  per  Cents.  Reduced,  £117,399.  Os.  4d. ; 
by  cash  in  bank,  at  the  Bank  of  Eng|aAd,  and  at  call,  £935,311.  4«.  9(i. ; 
1^  bills  discounted,  loans,  and  othor  securities,  £3,748,929.  13«,  \  by 
bank  {O'emises  at  Norwich,  £1^41.  Os.  2d. ;  by  current  ^p^ises  in 
Londixi,  Manchester,  and  Norwich,  directors'  remuneration,  insome  tax, 
4a,  £17,206.  5*.  4d. ;  total,  £4,819,986.  3».  7d. 

"  Ftofit  and  Loss  Account. — Dr. :  To  current  expenses,  rent,  taxes,  ^., 
in  London,  Manchester,  and  Norwich,  directors^  remimeration,  income 
tax,  Ac.y  £17,205.  5«.  4d. ;  to  rebate  of  interest  on  bills  discounted,  not 
yet  due,  £19,758.  12s.  3<l. ;  to  xiroposed  dividend  for. half-year,  at  10  per 


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226 


Consolidated  Bank,  Limited. 


cent,  per  annum,  and  bonus  of  3«.  per  share  on  150,000  shares,  £52,500 
to  renerve  fund,  £15,000;  to  balance  carried  forward  to  next  aoooum 
£1,827.  168.  Id. ;  total,  £106,291.  13*.  2d.  Cr. :  By  balance  of  gros 
profits,  brought  down,  £99,315.  6j.  ^d. ;  by  balance  brought  forwar 
from  June  30, 1864,  £6,976.  6s.  lOd. ;  total,  £106,291. 13s.  2d." 

The  Chairman  said  the  report  which  the  shareholders  had  just  hear 
read  contained  so  clear  and  explicit  a  statement  of  the  affairs  of  the  ban 
that  there  remained  but  little  for  him,  as  the  chairman  of  the  day,  to  d 
beyond  moving  that  the  report  be  adopted,  printed,  and  circulated  amonga 
the  proprietors.  The  shareholders  were  aware  of  the  imusual  and  tryinj 
state  of  the  commercial  world  for  many  months  past.  Numerous  failure 
had  necessarily  entailed  losses  on  nearly  all  banking  companies,  and  thi 
bank  could  not  pretend  to  have  entirely  escaped  unscathed ;  but,  acting  o: 
the  principle  on  which  their  business  was  conducted,  of  maintaining  thei 
financial  position  on  a  sound  and  secure  basis,  the  directors  had  writte: 
off  every  possible  bad  debt,  and  had  made  ample  allowance  for  an 
claim  which  could  hereafter  arise.  Notwithstanding  this,  after  all  thi 
had  been  done,  the  directors  had  the  gratification  of  recommending  to  th 
shareholders  a  dividend  and  bonus,  taken  together,  at  the  raite  of  17^  pe 
cent,  per  annum,  free  of  income  tax,  on  the  paid-up  capital  ol  the  bank 
and  seeing  that  3  per  cent,  had  been  added  to  the  reserve  fund,  i 
would  make  the  amount  to  the  good  nearly  24  per  cent,  per  annum  fo 
the  past  year.  The  directors  thought  this  result  was  highly  satisfactor] 
and  he  hoped  the  shareholders  would  be  of  the  same  opinion.  (Hew 
hear,  and  applause.)  He  was  not  aware  that  there  was  any  other  point  c 
interest  to  which  he  need  refer.  He  had  only  to  observe  that  the  intereid 
of  the  bank  would  be  greatly  promoted  if  the  shareh<dders  would  exei 
their  influence  among  their  connections  to  bring  new  aocounts  to  the  bani 
(Hear.)  One  of  the  encouraging  features  of  joint-stock  banks  was  tha 
they  opened  channels  for  a  large  proprietary,  who  were  naturally  led  t 
enhance  the  interests  of  the  bank  in  which  they  were  associated.  (Hear, 
He  trusted  that  the  day  woidd  come  when  the  Consolidated  Bank  woul< 
emulate  her  elder  sister,  the  London  and  Westminster  Bank,  and  shoi 
deposits  equal  to  her  magnificent  neighbour  in  Loth  bury ;  but  her  positio 
in  respect  to  depositors  was  the  result  of  thirty  years'  existoDice,  and  th 
shareholders  in  the  Consolidated  Bank  must  put  forward  increased  energ 
to  arrive  at  a  similar  position.  He  had  not  risen  for  the  purpose  of  makin; 
a  speech,  and  as  he  knew  of  no  topic  requiring  further  notice  on  his  pafi 
he  should  be  happy  to  reply  to  any  question  which  might  be  asked,  and  t 
give  all  the  information  in  his  power.  He  begged  to  conclude  by  moviuj 
that  the  report  now  read  be  received  and  adopted,  and  that  the  same  b 
printed  and  circulated  amongst  the  proprietors.     (Hear^ 

Mr.  James  A.  Turner,  M.F.,  seconded  the  moticm.  He  had  heard  wit! 
much  satisfaction  the  lucid  statement  of  the  chairman  as  to  the  state  € 
the  affairs  of  the  bank  ;  but  he,  as  representing  one  portion  of  the  ban] 
which  was  not  settled  in  London,  of  whidi  those  whom  he  addressed  knei 
more,  and  he  less,  begged  to  state,  as  the  vice-president  of  this  bank,  an< 
presiding  over  the  Consolidated  Bank  at  Manchester,  that  there  was  n 
reason  whatever  for  the  shareholders  to  look  with  alarm  at  the  state  o 
affairs  in  Lancashire  from  the  cotton  famine  of  the  two  past  yean 
(Hear.)  This  bank  was  progressing  in  Manchcjpter  as  well  as  any  bani 
in  London,  they  were  increasing  their  accounts,  and  had  steered  throug] 
fill  difficulties,  showing  as  the  result  of  their  transactions  a  surplus  wit] 


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Cansotidated  Bank,  Limited.  227 

*■*•!!  loss  only  incurred.    Everything  was  going  on  most  satiafaoiorily. 
He  begged  to  second  the  motion* 
The  resolntion  being  pnt  was  carried  nnanimously. 
The  Chairman  then  moved  the   confirmation  of   the  election  by  the 
board  d  Mr.  W.  Smith  aa  director  in  the  room  of  Mr.  Wilson,  who  re- 
■gned  in  Angost  last, 

Mr.  Conybeare,  in  aeeonding  the  motion,  spoke  of  the  excellent  business 
qnalificatkuiB  of  Bfr.  Smith  to  fill  the  position.  The  chairman  had  stated  that 
they  hoped  one  day  to  rival  the  London  and  Westminster  Bank,  he  hoped 
they  iroold  do  more.  The  Consolidated  Bank  was  one  of  the  first  which 
adopted  the  princmle  of  limited  liability,  and  he  considered  that  the 
genml  adoption  of  that  principle  wotdd  tend  more  than  anything  else  to 
fructify  and  fertilise  the  large  floating  capital  of  the  country.  The  direc- 
ton  of  this  bank  had  exercised  the  utmost  caution  and  prudence.  The 
institution  was  not  a  new  one,  but  as  its  name  implied,  essentially  a  con- 
BoiidAted  bank.  It  had  already  absorbed  two  or  three  magnificent  estab- 
lirikments  which  had  brought  a  great  deal  of  business  to  them,  and  that 
boflxneas  was  constantly  increasing.  He  believed  that  as  they  went  on 
they  would  become  more  and  more  consolidated  by  the  absorption  of  other 
banks,  and  eventually  that  they  would  stand  in  the  same  position  rela- 
tively to  the  banking  world  aa  the  consolidated  fund  did  relatively  to  the 
fiaancea  of  the  country.     (Cheers.) 

The  reaolntion  having  been  carried,  on  the  motion  of  the  chairman, 
teoonded  by  Sir  Joshua  Rowe,  the  retiring  directors  were  reelected. 
ne  anditorsy  Mr.  Chadwick  and  Mr.  WilBam  Cooper,  were  also  re- 
elected. 

The  cilairman  then  moved  that  a  dividend  of  10  per  cent,  per  annum 
with  a  bontui  of  Sf .  per  share  be  declared. 

The  motion  was  seconded  by  Mr.  Wylie,  and  agreed  to, 
III  reply  to  a  question  from  a  Shareholder, 

The  diairman  observed  that  to  make  a  call  was  a  question  of  policy 
which  must  reat  with  the  directors,  and  the  expediency  of  making  one 
coqM  be  alone  judged  of  after  taking  into  consideration  all  the  circum- 
stances in  which  the  bank  was  placed.  At  the  present  moment  he  could 
ouly  say  that  the  growth  of  the  public  confidence  in  the  bank  was  such 
that  the  diractorv  felt  no  kind  of  tendency  whatever  in  that  direction. 
They  must  remember  that,  although  the  capital  paid  up  amounted  only  to 
£BOOfiOO,  the  public  had  also  the  guarantee  of  an  uncalled  capital  of 
£1,400,000  held  by  responsible  shareholders,  and  the  board  did  not  see 
that  the  credit  of  the  establishment  would  be  increased  in  any  degree  by 
iddjog  to  the  present  paid-up  ci^ital.  (Cheers.)  If,  however,  at  any 
time  the  directors  thought  it  desirable  for  the  interest  of  the  shareholders 
to  do  so,  they  might  rely  upon  it  the  subject  would  receive  the  most 
anxious  oonaideration  of  we  directors.    (Cheers.)  i 

On  the  motioii  of  Sir  Joshua  Bowe,  seconded  by  a  shareholder,  a  cordial 
TOte  ci  ^i»p"k«  to  the  chairman  and  directors  dosed  the  proceedings. 


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228 


EAST  LONDON  BANK  (LIMITED). 

The  Beoond  ordinary  meeting  of  this  company  was  held  on  the  2 
January,  at  the  London  Tavern,  Bishopsgate  Street,  to  receive  the  direct< 
and  auditors'  reports  and  the  balance-sheet  for  the  half -year  ending 
31st  December,  1864,  to  declare  a  dividend,  and  to  elect  auditors  for 
year.      The  chair  was  taken  by  C.  S.  Butler,  Esq.,  M.P.,  chairman  of 
board  of  directors. 

Mr.  Hurst  DanieU,  the  secretary,  read  the  advertisement  convening 
meeting,  and  the  following  report :  — The  (^rectors  submit  their  seo 
report  to  the  sha^el^olders,  together  with  the  accounts  for  the  half -j 
ending  31st  December,  1864,  certified  by  the  auditors.  During  the  h 
year  the  busings  of  the  bank  has  steadily  and  satisfactorily  progresi 
notwithstanding  the  recent  commercial  depression.  The  amount  stand 
to  the  credit  of  profit  and  loss,  after  making  ample  provision  for  bad 
doubtful  debts,  is  £13,596.  16s.  Id,  Deducting  the  amount  of  cun 
charges,  interest  due  to  customers,  rebate  on  bills  not  mati^red  (at  6 
cent.),  and  the  sums  written  off  the  amoimts  standing  to  the  debit  of  b 
premises  and  preliminuy  expenses,  there  remains  a  balance  of  £3,841. 
lOd.  The  directors  recommend  the  payment  of  a  dividend  at  the  rat 
5  per  cent,  per  annum,  free  of  income  tax,  which  will  absorb  £2,Si()0., 
leave  £1,341.  18«.  lOd.,  together  with  the  rebate,  £1,893. 105.  Id.,  naali 
the  sum  of  £3,235.  8^.  1 1?.  to  be  ci^rried  forward  to  the  present  half .y< 
The  premises  in  Comhill,  for  the  head  office,  are  on  the  point  of  oomplel 
with  the  exception  of  one  house  not  yet  in  possession,  and  they  will 
ready  for  occupation  during  the  ensuing  month.  The  auditors,  J( 
Young,  Edward  Hunter,  and  J.  H.  Gordon,  Esqrs.,  retire  froni  office,  \ 
being  eligible,  offer  themsfdyes  for  re-election. 


Dr, 


OencrcUBaUmee'SJieettSlsiDeeemberf  1864. 

CIPFTAL,   UABILITIES,  &0. 


Capital— Authorised  £2,000,000  ;  subscribed  in  20,000  shares 
of  £50  each  £1,000,000;  amount  paid  np,  viz.,  £5  per 
share  on  20,000  shares  

Amount  due  on  current  and  deposit  accounts  exolasively 

Amount  due  for  general  expenses,  &o.   ...        

Beserve  fund  ...        .;.        ...        

Rebate  of  interest  on  current  bills  £1,893.  10«.  Id.;  profit  and 
Joss  account — net  profit  as  per  statement  £3,841.  ISt.  lOd^ 


Cr. 


ASSETS,  &c. 


Cash  at  Bank  of  England,  in  hand,  and  at  call 

Bills  discounted,  loans,  &c.  

Investments  (£13,296.  8f.  Consols)        

Bank  premises,  furniture,  fittings,  &c 

Balance  of  preliminary  expenses  


£100,000 

846,196 

439 

12,080 


$.735    i 
£464,371     ( 


£145.077  C 

271,527  t 

12,000  C 

28,798  1 

6,968  n 

£464,371  6 


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JEast  London  Bank,  Limited,  229 

PrfffU  and  Lass  Aceaunt,for  the  Half-year  ending  theSlsi  day  of  December,  1 864. 

J>r, 

General  charges  at  head  office  and  hranches  £3,824.  be,;  in- 
terest paid  and  dae  on  corrent  and  deposit  accoanta 
£3.037.  2i.  8cf. £6,861     7    8 

Amount  written  off— Bank  premises  account  for  depreciation 
in  branch  premises,  ftumitore,  &c.  £500 ;  preliminary  ex* 
penses  aoconnt,  in  reduction  of  same  £500  1,000    0    0 

JUbate  of  interest  on  current  bills  at  6  per  cent. 
£1393.  IOj;  Id,;  balance,  being  net  profit  to  3 Ist  Decemr 
ber,  186^  £3,841.  ld«.  \0d 5,735    8  11 

£13,596  16    7 


Cr. 

Balance  at  30th  Jane,  1864,  £2,957.  17«.  Sd,;  deduct,  amount 
of  first  diridend  paid  at  the  rate  of  5  per  cent,  per  annum 
£2,183.  6#.8d £774  11     0 

Balance  of  profit  for  half-year  ending  31st  December.  1864, 
after  proi^iding  for  estimated  loss  by  bad  and  doubtful 
debtf     .y.         .f ,..         ...        ...         12,882    5    7 


£13.596  16    7 


•The  duuzman  said^GreiitkiiieD,  I  am  sure  you  will  be  pleased  to 
hear  from  me  that  I  shall  not  have  oooasion  to  trespass  upon  your 
▼aluabie  time  at  any  length.  It  would  be  unpardonable  in  me  were  I 
to  do  BO,  for  our  operationn  during  the  past  six  months  have  really 
been  as  much  of  a  routine  character  as  th^y  would  have  been  had  our 
bank  been  established  many  years.  Whei^  I  last  had  the  pleasure  of 
addresfing  you  in  this  room,  I  occupied  the  chair  for  the  first  time ; 
it  was  the  firvt  half-yearly  meeting  of  the  shareholders  of  this  bank—it 
■eemed  to  me  important  on  every  account  that  your  chairman  should 
endeavour  to  establish  confident  relations  with  you,  and  I  did  not  hesi- 
tate, therefore,  frankly  to  9tate  to  you  my  views  as  to  the  principles  of 
managemeDt,  and  my  hope  that  you  would  all  earnestly  co-operate  with 
your  directorf  in  giving  ap  energetic  support  to  the  bank :  and  I  ven- 
tured the  opinion  that,  so  supported,  our  operations  coula  not  fail  of 
snoeess.  (Hear,  hear.)  Well, gentlemen,  another  six  months  have  passfMi, 
and  I  have  now  to  thank  you  for  much  support.  I  am  willing  to  admit 
that  on  the  whole  we  have  no  right  to  complain  that  you  have  not 
given  UB  your  co-operation.  Nevertheless,  I  must  add  liiat  there  are 
jotaxy  influential  proprietors  who  have  yet,  not  only  to  bring  their  own 
aeooonts,  but  to  use  their  influence  in  the  circles  in  which  they  move. 
I  am  sure  you  will  excuse  me  for  being  plain  in  this  matter.  Of 
course  it  is  in  your  interest  that  I  speak;  for  be  assured,  if  every 
shareholder  now  present  would  open  hiA  account  with  the  bank,  our 
shares  would  be  more  valuable  and  your  next  dividend  would  be  aag- 
mented;  the  effect  upon  your  property  would  in  every  way  be  of  a 
telling  character.  Well,  gentlemen,  I  do  not  wish  to  press  this  upon 
you  overmuch.  I  must,  however,  be  permitted  to  add  that  the  business 
ol  a  joint-stock  bank  is  not  made  by  the  influence  of  a  board  of  direc- 
tors only — ^the  words  joint-stock  seem  to  me  to  imply  united  exertions 


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230  East  Limdon  Bank,  LimUed, 

as  welt  afi  united  pnraes.  All  are  partnersy  all,  therefore,  are  morally 
lM>uiid  to  exert  themselyeB  for  the  oommon  good.  (Gentlemen,  you  have 
hiul  the  balance-sheet  before  you  for  seyeral  days ;  no  inquiry  has  been 
Taiseil  with  reference  to  it ;  I  hope,  tiierefore,  it  is  of  a  satisfactory 
Qatiire.  It  has  been  prepared  with  great  care,  and  after  lengthened  in- 
V instigation  by  your  auditors,  one  of  whom  is  a  professional  accountant  of 
k  Mowu  jMjsition  and  of  the  highest  character.  They  have  examined  all  the 
aecuriti^fl,  upon  which  they  would  haye  reported  specially  if  ttiey  had  not 
been  €4>rrect.  Our  report  intimates  to  you  that  during  the  half-year 
the  buHiness  of  the  bank  has  steadily  and  satisfactorily  progressed  not- 
withat^yit^liiig  the  recent  commercial  depression.  (Hear.)  Well,  gentlemen, 
I  think  you  will  agree  with  me  that  this  is  by  no  means  an  exaggerated 
statement.  Scarry  a  day  has  passed  since  I  last  had  the  pleasure  of 
meeting  you  without  an  accession  to  our  number  of  accounts ;  and.  with 
reference  tq  the  figures  we  submit  to  you,  I  am  sure  you  will  not 
fail  tc)  rememher  that  twelve  months  only  preceding  this  report  we  oom- 
mencatl  the  business  of  the  bank.  We  were  then  without  an  aocofont — a 
bank  only  in  name.  That  was  our  position  at  the  commencement  of  the 
year.  What  was  our  position  at  the  dose  of  the  year  t  After  having 
passed  through  our  till  £11,633,077.  9<.  M.  (and  this  on  current  aooounts 
alone  at  the  head  office  only),  we  had  confided  to  us,  by  more  than  one 
thousand  customers,  balances  amounting  to  £346,196  on  current  and  de- 
posit acwiunts  exclusively. — (Loud  Cheers.)  I  will  not  dwell  upon  this 
matter ;  no  doubt  it  will  be  gratifying  to  my  colleagues  if  you  think,  with 
them,  that  these  figures  evidence  a  steady  and  a  satisfactory  progreaa,  and 
that  the  public  has  already  acquired  a  large  amount  of  confidence  in  the 
bank.  It  will  remain  for  us  to  show  our  appreciation  of  this  confidence 
by  i^ffording  every  proper  facility  to  those  who  are  given  us  such  valuable 
sup[MTrt,  and  by  jealously  maintaining  the  honour  of  the  bank. — (Hear. 
hear.)  Yo\i  will,  perhaps,  expect  me  to  advert  to  the  peculiar  state  of 
monetary  affairs  diuring  the  past  six  months.  I  need  not  do  so,  for  we  are 
not  in  the  position  of  having  made  serious  losses.  Had  we  been  disposed 
to  depart  from  our,  I  think,  wholesome  rules,  we  might  have  been  able  to 
present  tci  you  much  larger  figures ;  but  unless  large  figures  are  the  result 
of  sound  business,  it  is  better  to  be  satisfied  with  more  drcumscribed  ar- 
rangement!!, and  a  safe  and  steady,  although  it  may  be  a  comparatively 
slow  process.  Happily  our  commercial  interests  are  now  in  a  more 
healthy  state. — (Hear.)  We  owe  it  to  the  very  judicious  course  of  pro- 
cedure Arlopted  by  the  Bank  of  England  that  there  is  now  a  freedom  from 
the  abtinrd  spirit  of  speculation — ^I  had  almost  called  it  gambling — which 
prevailed  only  a  few  mcmths  ago.  (Hear,  hear.^  Tou  will  see  that 
a  sliglit  alteration  has  been  made  in  the  form  of  stating  an  important 
item  in  tho  balance^heet.  We  now  tell  you  precisely  the  amount  of 
business  we  are  doing.  In  speaking  of  the  amount  due  by  the  bank  we 
do  not  adopt  the  old  stereotyped  form  •*  Current  Deposit  and  other  Ao- 
ooimtft  ;  "  but  we  say  ^  Current  and  Deposit  Accounts  exclusively.''  By 
thiB  you  will  see  precisely  the  prepress  we  are  making  and  the  estimatioo 
in  which  w©  are  held.  (Hear.)  Our  report  intimates  to  you  that** the 
preniises  in  Comhill  for  the  head  office  are  on  the  point  of  completion, 
with  the  ozoeption  of  one  house  not  yet  in  possession.^'  Qentlemeo,  we 
are  putting  up  a  building,  a  solid  structure,  which  we  hope  when  it  w 
wholly  oompleted  will  not  disgrace  the  street  architecture  of  this  great 
city.    It  will  be  a  plain  builduig  suitable  for  the  purpose  lor  which  it  ia 


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JEoii  London  Bank,  Limited.  231 

iB«M;  VB  hftve  svoidad  exceBarre  onuuneiitfttiony  beUoring  *  qniet 

pliiisbvtere  to  be  more  in  atooordaaoe  with  the  pnrpoie  to  which  it  it 

fekifjliai    If  aay  of  my  friends  here  are  diBpoeed  to  ertiaiBe)  I  muBt 

ak^  io  await  the  erectioiL  of  the  additional  part  of  the  building  at , 

^^cf  the  jear.    We  shall  then  present  a  bold  frontage  of  60  feet  to 

tbe  {rofiiof  Comhill,  the  ohoioe  spot  of  this  great  dty,  in  Uie  highway  to 

te  jni  commercial  interesta,  to  assist  wMeh  our  bank  was  established. 

7ei)(^toenter  upon  theoecapationin  February.    Gentlemen,  no  dr- 

wnefau  ooeiurred  to  induce  your  directors  to  issue  the  additional 

■&>  of  capital  authorised  by  you  to  be  taken ;  but  your  directors  are 

<^BTiieedo{  the  wiwlom  tA  the  restdutiouy  for  we  sre  now  in  the  unusual 

fBaogaof  bemg  able  to  take  over,  by  purchase  or  otherwise,  and  bring 

a&oiiaited  liability,  any  bank,  or  banks,  howerer  large.     We  are  now 

^toniie  £1,900,000,  should  it  be  adyantaffeous  to  do  so— a  pretty 

nRgnamteefcr  our  safety  as  a  bank.    Wiw  reCereeooe  to  our  staff  (2 

wi,  I  ewoot  imagine  a  bank  to  be  better  served.     Our  principal 

^099  JisTe  been  indefatigable  in  diBcharge  of  their  duties,  and  I  gire  ex* 

pRaofls  to  the  unanimous  feeling  of  the  board  when  I  say  that  Mr.  Latter,^ 

^  nuoager,  and  Mr.  Flatten,  are  thoroughly  devoted  to  your  interests. 

^<m^  ftieo  to  mention  that  Mr.  Daniell,  your  secretary,  and  Mr.  Finlayaon, 

?^  Mocmiitaiit,  are  Tery  aealous ;   indeed,  in  so  far  as  it  is  given  me  to 

pd^,  all  our  offieen  are  looking  to  the  honour  and  prosperity  of  our  oom- 

^^  pipperty.  I  am  at  the  head  office  every  day,  and  I  assure  you  it  is  very 

p%iiig  to  me  to  observe  the  order  and  gentlemanly  feeling  that  prevails : 

^■m mj opinion  creditable  to  every  officer  in  the  establiahment.    (Loud 

^"^)  Oar  report  has  intimated  to  you  that  the  auditors — ^Mr.  John 

^^Hr.  Sdward  Hunter,  and  Mr.  J.  H.^GordQn — ^retire  from  offioe,  and 

tetki^  offer  themselves  £o|r  re-election. "  The  articles  constituting  the 

^'^'^  direct  the  election  of  auditors  at  this  meeting ;   and  it  is  a  wise 

j^iiaboD  that  one  at  least  shall  be  a  profeasional  accountant.     I  should 

ttfebe^  better  pleased  had  two  been  profeasional.    I  candidly  own  to 

P^*^  ootioos  with  reference  to  the  auditing  of  the  accounts  of  public 

'"^^NiBL  1  am  afraid  it  sometimes  happens  that  gentlemen  who  are 

^ttoiAoDied  to  deal  with  masses  of  figures  and  intricate  accounts  are 

r^^vnxbsted  to  this  responsible  duty  because  they  are  large  share- 

^^  tti  are  influential  men.      (ientlemea,  depend  upon  it^  it  is  a 

/rf  h!^  (Hear,  hear.)    Happily,  we  are  fortunate  in  having  good  men 

<tf  OQBOiB.  and  I  beg  it  may  be  understood  that  my  remarks  do  not  in 

*j^2*ffl»»  ^ply  to  them.     If,  however,  any  vacancy  should  occur,  it 

f^  wn  be  for  you  to  consider  tiie  propriety  of  appointing  a  second  pro- 

^"'^f^'^  aeeountant.     (Hear.)     Gentlemen,  I  have  trespassed  too  long 

^fo«r  attention*    (Ko,  no,  and  cheers.^    We  ahaU  be  happy  to  reply 

^^^ptrtiooa  upon  which  jrou  may  desire  information.    If  your  ques- 

^  nier  to  the  general  poUcy  and  management  of  the  bank,  I,  or  one 

9^  OQUeaguea,  will  oheeifully  respond.    If  it  should  relate  to  the 

'^ce^heet  and  accounts,  yonr  own  officers  specially  appointed  to  this 

w«dar  daiy«>I  mean  the  auditors — ^will,  of  course,  render  every  inf or- 

^'^^   I  nasd  not  say  that  my  friend,  the  manager,  who  is  present,  will 

6*^«  e?ery  proper  information  with  reference  to  his  department.    I  have 


ow 


only  to  express  my  thanka  to  you  for  having  listened  so  indulgently 
*°^  Enable  skakeraent,  and  my  sssoranoe  that  we  all  feel  the  greatest 
Tf^inthe  prosperity  d  the  bank.  (Loud  cheers.)  I  beg  to  move 
"^  ^he  report  and  accounts  he  received  and  adopted. 


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East  London  Bank,  Limited, 


I 


Mr.  Capper  (Deputy-Chairman)  seoonded  the  motion.  After  the  very 
able  speech  made  by  their  chairman,  it  was  unnecessary  for  him  to  trouble 
them  with  any  observations.  He  could  assure  them,  however,  that  the 
.  affairs  of  their  bank  were  in  a  most  prosperous  condition,  and  would  soon 
be  one  of  the  first  in  London.     (Cheers.) 

The  resolution  was  then  put,  and  carried  unanimously. 

Mr.  White  next  moved  that  a  dividend  at  the  rate  of  5  per  cent,  per 
annum,  free  of  income  tax,  be  paid  to  the  proprietors.  He  coiild  assure 
them  that  the  crisis  through  which  they  passed  was  one  of  no  ordinary 
character,  and  after  so  much  money  passing  through  their  hands,  it  was 
really  wonderfid  how  trivial  had  been  their  losses.  At  the  last  meeting 
he  ventured  to  tell  them  there  was  no  doubt  of.  the  prosperity  of  the 
bank,  and  he  repeated  now  that  if  the  proprietors  only  assisted  the  direc- 
tors they  could  double  even  their  present  business.  (Hear,  hear.)  Indeed, 
eveD  without  that  assistance,  it  might  have  been  more  than  doubled  but 
for  the  great  care,  caution,  and  judgment  manifested  during  the  last  six 
months  by  those  who  bad  the  management  of  its  affairs.  (Cheers.)  Its 
prosperity  and  good  management  were  such  that  he  sincerely  belieyed  it 
would  ere  Ions  be  another  London  and  Westminster  Bank.     (Cheers.) 

Mr.  Waif ord  seconded  the  motion,  and  reminded  the  proprietors  that 
the  proceedings  of  the  East  London  Bank  were  characterised  by  no  dis- 
play, by  no  speculations,  but  that  their  profits  resulted  from  legitimate 
banking  business.     (Hear,  hear.^ 

The  resolution  was  then  unammously  carried. 

Mr.  Bristow  next  moved  that  a  sum  of  50  guineas  be  paid  to  ^e 
auditors,  and  that  they  be  re-elected.  In  his  opinion  their  excellent  chair- 
man only  did  justice  to  the  auditors  when  he  spoke  of  their  duties  and 
responsibilities.  For  example,  it  would  not  be  very  satisfactory  to  him- 
self if  he  were  to  go  into  a  mass  of  large  and  intricate  accounts, 
and  it  was  therefore  essential  that  that  duty  should  be  performed 
only  by  those  who  thoroughly  understood  it.  (Hear,  hear.)  He  did  not 
believe  the  sum  proposed  was  too  much.    (Hear.) 

Mr.  J.  C.  Connor  seconded  it,  and  the  resolution  was  adopted  unani- 
mously. 

Mr.  A.  T.  Laport  moved  a  vote  of  thanks  to  the  chairman  and  board 
of  directors,  and  could  not  help  expressing  his  gratification  at  the  careful 
and  steNBkdy  course  they  pursued  in  a  time  of  difficulty  and  danger,  and 
thus  preventing  the  proprietors  from  incurring  very  large  losses.  (He^j 
hear.) 

Mr,  Charles  Devonport  seconded  the  motion,  and  it  passed  unanimously- 

The  Chairman  returned  thanks,  and  in  answer  to  a  proprietor  who  asked 
him  that  morning  the  amount  of  their  losses,  he  stated  that  they  did  not 
exceed  £600,  although  they  discounted  bills  amounting  to  more  than 
£700,000  or  £800,000  during  the  last  half-year.  (Cheers.)  After  that 
declaration  he  believed  the  proprietors  would  be  of  opinion  they  were  no* 
seriously  hurt.     (Hear,  hear,  and  a  laugh.) 

In  answer  to  a  question  put  by  a  shareholder, 

Mr.  White  said  there  was  no  intention  whatever  of  making  a  call  for 
further  capital. 

Mr.  Jervifl  next  moved,  and  Mr.  Itatcliffe  seconded,  a  vote  of  thanks  to 
the  manager,  sub-manager,  the  secretary,  and  the  other  officers  ol  toe 
bank  for  the  manner  in  which  they  discharged  their  duties. 

The  resolution  being  unanimously  adoptea, 


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Oriental  Financial  Corporationy  Limited.  233 

Mr.  Xatter  (manager)  returned  thankn. 

Mr.  Heiion  waa  very  much  pleased  with  the  progress  of  the  oompany, 
and  he  belieyed  there  waa  no  other  bank  where  the  business  had  been 
traiisa^ted  without  larger  losses.  He  had  much  pleasure  in  moving  that 
the  best  thanks  of  the  meeting  be  given  to  Charles  Salisbury  Butler,  Esq. 
for  bis  courteous  conduct  in  the  chair. 

Ifr.  J.  0.  Stovin  thought  this  meeting  would  greatly  increase  the  reputa- 
tion already  enjoyed  by  the  bank  in  the  eyes  of  the  public.  He,  for  one, 
was  mudi  better  pleased  to  come  there  and  receive  a  5  per  cent,  dividend 
vbich  had  been  earned  by  sound  and  legitimate  business  rather  than  a  10 
cr  15  per  cent,  dividend  earned  solely  by  speculation. 

A  vote  of  thanks  being  unanimously  carried  the  proceedings  then 
terminated. 


YORK  CITY  AOT)  COUNTY  BANKING  COMPANY. 

Tkb  annual  meeting  of  the  shareholders  of  this  company  was  held  on  the 
26th  January,  Mr.  Aldetman  Meek,  of  Middlethorpe  Lodge,  presiding. 
Tbe  report  was  of  a  highly  satisfactory  nature.  A  dividend  and  bonus 
equal  to  14  per  cent,  on  the  increased  capital  of  the  bank  was  declared^ 
sod  a  sum  oi  £4,528  odd  was  carried  to  the  reserved  surplus,  which  now 
stands  at  £36^i07.  12s,  9d,  The  undertaking  appean  to  be  in  a  very 
prosperous  condition. 


ROYAL  BANK  OF  LIVERPOOL. 

Thk  annual  meeting  of  the  proprietors  was  held  on  the  26th  January,  Mr. 
BnDcke!^  presiding.  The  oidy  features  of  interest  were  the  declaration  of  a 
dividend  of  7  per  cent,  and  the  carrying  of  a  sum  of  £41,000  to  the 
reserve  fund,  making  it  now  upwards  of  £82,000. 


OBIENTAL  FINANCIAL  CORPORATION,  LIMITED, 
tas  first  ordinary  general  meeting  of  the  members  of  this  corporation 
#ss  held  on  the  27th  January  at  the  London  Tavern,  Mr.  W.  C.  Brown 
in  the  chair. 
Mr.  Priggen,  the  secretary,  read  the  following  report : — 
"The  directors  b^  to  submit  to  the  shareholders  th6  following  report, 
and  the  aooounta  audited  to  the  Slst  December,  1864.  The  gross  profits 
from  the  commencement  of  the  business  in  April  last  have  amounted  to 
£21,762.  13#.  2d.,  which,  after  deducting  expenses  of  management,  rebate 
d  interest  on  bills,  and  all  other  charges,  and  carrying  10  per  cent,  to  the 
oedit  of  preliminary  expenses  and  office  furniture,  leaves  a  balance  of 
£16,975  18«.  lid.  Out  of  this  sum  tho  directors  have  appropriated  £706  3«. 
to  the  payment  of  od  interim  interest  to  30th  June  last,  at  the  rate  of  8 
ptt  cent,  per  annom,  and  £3,298. 12«.  8d.  for  dividend  to  31st  December, 
1864,  at  the  rate  of  8  per  cent,  per  annum,  leaving  the  sum  of  £12,971.  3«.  3d. 
to  be  carried  forwara  to  the  next  account.  The  operations  in  India  are 
upon  a  satisfactory  basis,  and  are   capable   of  considerable    extension. 


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Oriental  Financial  Corporation,  Limited. 


but  the  oommercial  uncertainty  which  has  existed  dming  the  last  few 
months  has  induced  the  directors  to  restrict  business.  The  closed  accounts 
from  thence  for  the  past  year  have  not  yet  been  received,  and  ttiey  will 
therefore  appear  in  the  next  statement.  The  business  which  has  been 
undertaken,  otherwise  than  in  connection  with  the  East,  has  principally 
coxisisted  in  advances  against  the  deposit  of  collateral  securities,  besides 
whidi  ^The  London  Engineering  and  Iron  Ship  Building  Company 
(Limited)'  has  been  successfully  introduced  for  the  object  of  taking  over 
the  business  of  Messrs.  Westwood,  Baillie,  and  Co.  The  Borakai  Tea 
Company  (Limited)  has  also  been  brought  forward  by  this  corporation. 
As  it  is  necessary  that  a  dause  in  the  articles  of  association  should  be 
altered  to  meet  the  regulaticms  of  the  Stock  Exchange,  which  require  that 
companies  shall  not  invest  in  their  own  shares,  notice  of  an  extraordinary 
meeting  will  be  given  for  the  purpose  of  effecting  that  object,  and  at  the 
same  tune  of  introducing  clauses  increasing  the  qualification  of  directon, 
and  giving  additional  powers  to  the  corporation  for  raising  money  on  de- 
bentures, and  for  other  purposes." 

Balanoe-Mhed,  December  31«i,  1864. 
Dr. 
Capital    10,000  shares  of  £50    each  £500,000->yis.:— 9,445 
shares  on  which  £10  has  been  called  up  £94,450 ;  less 
calls  in  course  of  payment  £5,450 — 89*000  ;  555  shares 

forfeited  on  which  hau  been  paid  £1,615 £90,615    0    0 

Amount  due  on  bills  payable,  loans  deposit,  &c £218,478    6    6 

Sundry  creditors 5,250  14    2 

Interest,  rebate  on  bills  not  due 15    0    1 

Profit  and  loss — ^Balance  transferred  to  credit  of  this  accoant 
as  per  annexed  statement,  viz. :  (^ss  amount 
£21,762.  18#.  2d.;  less  disbursements,  charges,  and  divi- 
dend £8,791.  9#.  HA £12,971    3    S 

£827,330    4    0 


Ct. 


12«.  6<f.;  ditto,  Indian 
2i.  9c2. ; 


Advances  on  security,  &c.  £194,391 

agencies*  £65,896.  7i.  Id 

Cash  at  bankers,  in  hand  and  on  deposit  £87,372 

bills  receivable  £27,863. 19i.  lOd 

Investments  ...        •..        •••        ...        •••        ...        ... 

Office  furniture      ...         ...        •••        ••.        ••• 

Preliminary  expenses  £10,000;  less  written  off  to  profit  and 
loss  account  £1,000 


£260,287  19    7 


55,236 

2,450 

356 


2    7 

0  0 

1  10 


9.000    0    0 
£827,880    4    0 


Frqfit  and  Lon  Aeeouni,  Decen^er  81, 1864. 
Dr. 

Current  expenses,  including  salaries,  advertising,  stationery, 
rent,  directors'  fees,  depreciation  in  value  of  fixtures  and 
famitare,  income  tax,  and  all  incidental  chargM 

Amount  written  off  preliminary  expenses        ...        ^,        ... 

Carried  forward         •••        ••.        •-        ••• 


£8,786  14    « 

1,000    0    0 


£4,786  14    3 


♦  Remittances  for  this  amount  will  be  receivable  in  February,  March,  and  ApnJ* 


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Oriental  Financial  Corpcratian,  Limited*  235 

Broagltt  forwud  •••        •••        •••        •••        •••        £4^786  14    3 

Intueit  ftt  the  rate  of  8  per  cent,  per  aimiim  on  the  paid-up 
capital  for  the  period  ending  Jane  30,  1864,  paid  Angnst 
27th      .••         ...         .••         ...         ..•         •••         •••         .••  706    3    0 

IKridend  for  tiie  nx  montha  ending  December  31, 1864,  at  the 

rate  of  8  per  cent,  per  annum         3,298  12    8 

fiaUnce  earned  to  profit  and  loss  (new  account)        12«97l    3    8 

£21,762  13    2 

Or.  ^  """"""^ 

Grofls  proAti  •••        •••        ...        •••        ..•        •••  £21,762  13    2 

The  Chamnaa,  in  mcmng  the  adoptioii  of  the  report,  said— On  the 
subject  of  the  bnaineae  in  India,  they  were  fortunate  enough,  very  eoon 
after  the  0Qm|Mtny  was  eetabliahed,  to  arrange  agencies  there,  and  their 
hoBinefls  was  in  the  hands  of  gentlemen  who  were  well  known  and  in  whom 
the  shareholders  must  hare  uie  greatest  confidence.    The  bnsiness  into 
▼hich  they  had  entered  was  preliminary,  with  a  view  of  ascertaining  the 
best  mode  of  conducting  the  affairs  of  the  corporation ;  and  they  had  now, 
ahhough  they  commenced  on  a  very  small  scale,  ascertained  the  class  of 
bosineBs  that  might  be  done.    The  rate  of  interest  in  India  had  been  com- 
wratiTely  low,  and  there  had  been  no  yery  sreat  inducement  for  pushing  it, 
but  they  saw  there  was  an  opening  for  a  nirther  extension  of  business  if 
thflj  bad  the  means  of  entermg  upon  it.    Under  these  drcumstances  they 
had  thou^t  it  better  not  to  lode  up  the  money  in  India,  but  to  place  it  in 
tonporary  aecnnties.     If  the  corporation  could  p;et  money  on  deben- 
tore  they    could  lend    it    on    jpermanent   securities.     Thev  had  not 
lent  money   on  permanent  securities,  nor  was  it  thought  desirable  to 
^  it    Shortly  after  the  commencement  of  their  business  ihey  found 
nioneUiy  matters  were  getting  into  a  difficult  position,  it  was  necessazy  to 
^^eiy  caotiouB  in  emjuoying  the  corporation's  funds,  and  they  thought 
^  nrare  desirable  plan  was  to  restrict  their  business.  In  India  they  gave 
^^  orders  that  money  was  not  to  be  advanced  on  cotton.    They  found 
^  agents  had  been  Tery  cautious,  and  they  would  see  by  the  accounts, 
^  eqMCted  large  remittances  from  India  in  a  few  months.    Many  of 
^^  securities  haul  run  off  without  any  loss.    Their  business  had  there- 
fore become  very  restricted,  and  with  the  exception  of  two  or  three  ac- 
^^^^ints  there  was  nothing  of  any  very  creat  importance  running  connected 
^th  the  interests  of  the  company.    The  accounts  from  India  were  not 
^^pleted ;  they  would  come  into  the  next  accounts,  but  he  <fid  not  ex- 
peck  there  wotdd  be  very  much  difference.    It  would  depend  on  the  rate 
of  exchange  at  whidi  the  fonds  woidd  be  sent  home.    On  looking  at  the 
s^^ooonts  it  would  be  found  they  had  carried  oyer  a  large  amount  in  pro- 
portion to  the  profits.    They  divided  8  per  cent,  and  carried  over  £13,000 
^  the  next  accoimt.   There  were  several  reasons  why  they  should  do  this. 
In  the  first  j^ace,  there  was  a  large  sum  for  the  establismnent  of  the  cor- 
poration.   £10,000,  over  which  they  could  exercise  no  control.    They 
J^^not  help  it  (cries  of  «  Oh,  oh  *»).    Another  reason  they  did  not  wish 
10  <Stid6  too  much  in  dividend  was  to  meet  any  contingency  that  might 
P^jriWjr  arise.  The  directors  could  not  give  a  specific  market  value  to  the 
■•cttritwa  they  held,  therefore  it  was  desirable  to  restrict  the  dividend  to 
v'v^^'  sad  oazrv  the  remainder  forward.    He  had  onl^  to  ask  the 
•"•wooMtta  to  give  them  vheir  support  in  conducting  the  business.    Any 


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money  they  could  get  oonld  be  placed  out  afc  a  fait  interest,  and  if  they 
had  a  million  instead  of  £100,000  they  could  lend  it  more  favourably.  He 
moved  the  adoption  of  the  report. 

Mr.  R.  Grove  seconded  the  motion. 

Mr.  Knight  strongly  urged  that  there  should  be  a  sub- division  of  the 
items  in  the  account,  and  called  attention  to  the  extraordinary  provision 
in  the  articles  of  association  providing  that  Mr.  Salter,  financial  agent, 
should  be  paid  1  per  cent,  on  the  nominal  capital  up  to  and  not  exceed- 
ing  one  million  sterling,  such  commission  to  be  defrayed  out  of  the  first 
money  received  from  profits  and  charged  against  the  company. 

Mr.  Stuart  asked  whether  the  corporation  had.  been  a  loser  by  Mr. 
Halliday,  who  was  one  of  the  directors,  or  by  his  firm.  That  circum- 
stance had  tended  to  depreciate  their  shares,  and  he  did  not  think  that 
one  shillinff  ought  to  be  lent  on  shares.  He  thought  the  directors 
could  help  the  preliminary  expenses,  and  they  ought  not  to  have  had  any- 
thing to  do  with  an  undertaking  which  involved  such  a  charge.  (Hear, 
hear.)  If  their  business  was  restricted  it  would  be  wise  to  look  out  for 
an  amalgamation  with  some  respectable  company  instead  of  frittering 
away  their  capital.  He  complained  he  could  not  get  information  aa  to  the 
accounts,  although  he  had  called  at  the  office  of  the  corporation. 

Mr.  Baker  contended  that  the  amount  of  profit  was  not  more  than 
£3,660. 

Mr.  fiowell  asked  if  it  was  stated  in  the  prospectus  that  1  per  cent,  on 
the  nominal  capital  was  to  be  paid  for  preliminary  expenses. 

The  Chairman  did  not  remember,  but  the  prospectus  would  refer  to  the 
articles  of  association,  where  it  was  stated  what  the  arrangements  were. 

Mr.  Howell  said  he  was  only  a  shareholder  in  the  company  by  accident, 
but  he  could  not  refrain  from  denouncing  the  practice  of  publishing  a 
prospectus  in  which  such  an  important  matter  was  kept  bsbck.  He  did 
not  believe  any  man  would  pay  Ms  £5  if  he  knew  that  £1  of  it  was  to 
be  paid  to  another  as  commission,  namely,  for  putting  it  before  him 
whether  he  would  join  the  company  or  not.  (Hear,  hear.)  Any  com- 
pany Irhich  required  such  an  amount  of  money  to  start  it  could  not 
be  worth  much  to  come  into.  It  was  very  well  known  that  when  people 
came  to  sign  the  deed  of  settlement  they  did  so  for  the  most  part  without 
reading  it  through.  They  had  a  balance-sheet  which  showed  20«.  in  the 
pound  for  their  investment,  and  yet  they  could  not  sell  it  in  the  market  for 
10«.  What  was  the  use  of  a  large  revenue  when  their  capital  was  so 
depreciated?    (Hear,  hear.) 

Mr.  Crockett  thought  that  a  great  deal  of  blame  was  unjustly  thrown 
on  the  shoulders  oi  the  directors.  It  was  usual  for  all  companies  to  pay 
a  large  sum  for  preliminary  expenses.  He  thought  it  was  doing  vrell  to 
realise  a  profit  of  £21,762,  and  if  they  only  supported  the  directors  he 
believed  they  would  do  welL 

Mr.  Lysley.  a  director,  said  that  if  the  shareholders  were  of  opinioh  that 
there  should  oe  no  dividend  at  all  he  should  not  complain.  The  reason 
why  t}ie  shares  were  so  low  was,  that  a  great  many  had  been  allotted  to 
persons  who  when  a  pressure  came  upon  the  money  market  were  not  able 
to  keep  them.  They  were  thus  thrown  on  the  market  in  great  numbers, 
and  consequently  depreciated.  They  might  have  kept  up  the  price  if  they 
did  as  other  companies — rig  the  market.  (Hear,  hear.)  Kone  of  the 
directors  had  received  a  single  penny  of  the  preliminary  expenses,  and  he 
understood  the  gentlemen  who  received  the  commission  risked  £3,000  or 


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Midland  Banking  Company^  237 

£4,000  of  his  own  money  m  the  matter.  He,  of  oouxsey  looked  for  a  profit 
fiom  it.    (Hear,  hear.) 

The  Chaiiman  said  that  the  company  had  not  lost  a  single  penny  by  Mr. 
Halliday,  nor  were  they  under  any  liability  on  his  account.  (Hear.)  Mr. 
Halliday  had  been  one  of  the  directors,  and  as  a  director  he  behavea  in  the 
most  honourable  manner.  The  directors  joined  the  company  as  it  came 
to  them,  and  the  shareholders  joined  it  in  the  same  way.  The  loans  on 
deposit  amounted  to  only  i£6,000  or  £7,000,  but  as  a  rule  they  did  not  want 
money  for  short  periods*  The  directors  would  not  hesitate  to  accept  a 
(oopoeal  for  amalgamation  on  fair  terms,  and  he  might  mention  that  in- 
timations of  the  possibility  of  amalgamation  had  come  to  them  £rom  one 
or  two  quarters.  (Hear.)  They  h^A  now  the  opportunity  of  doing  a  large 
business  in  India.  The  subject  of  a  call  was  an  important  one.  All  he 
oould  say  was  that  he  saw  no  necessity  for  a  call  at  the  present  time. 
(Hear,  hear.)  He  hoped  there  would  be  no  such  necessity  for  three  months, 
or  perhaps  longer,  but  he  could  not  give  any  pledge  on  that  point.  If 
th^  could  raise  money  on  debenture  it  would  obviate  the  necessity  for  a 
call.  They  had  no  agency  in  Madras,  because  they  had  as  much  afi  they 
eoold  do  in  the  other  two  agencies. 

The  motion  was  then  put  and  carried. 

The  auditors  were  re-elected. 

The  meeting  was  then  made  special,  for  the  purpose  of  considering  cer- 
Uin  alterations  in  the  articles  of  association  proposed  by  the  board.  The 
only  ones  which  were  objected  to  by  certain  of  the  shareholders  were  those 
which  proposed  that  the  qualification  of  the  directors  should  be  raised 
fiom  5  shares  to  20,  and  that  the  directors  should  be  empowered  to 
^  bcnrow  on  behalf  of  the  corporation  from  any  of  the  directors  or  members 
or  any  other  person  or  company,  such  sums  as  they  might  require  upon 
mortgage  of  the  property  of  the  corporation,  or  upon  bonds  or  otherwise." 
With  regard  to  the  first,  the  majority  of  the  meeting  was  in  favour  of  the 
qualification  of  directors  being  raised  to  the  possession  of  fifty  shares ;  and 
with  regard  to  the  second,  it  was  proposed  that  the  directors  should  be 
empowered  to  borrow  only  to  the  extent  of  one-third  of  the  paid-up  share 
c^tal ;  but  on  the  solicitor  stating  that  no  amendment  could  be  mada 
without  notice,  the  pro^tosals  of  the  board  in  both  respects  were  adopted. 

A  vote  of  tb^lfft  to  the  chairman  terminated  the  proceedings. 


MIDLAND  BANKING  COMPANY. 

The  third  ordinary  general  meeting  was  held  on  the  27th  January,  at  the 
London  Tavern ;  Mr.  Thomas  S.  Bichardson  in  the  chair. 

The  following  is  the  directors'  report,  <fec. : — 

**  The  directors  feel  pleasure  in  laying  before- the  shareholders  the  fol- 
lowing statement  of  accounts  and  balance-sheet  for  the  half-year  ending 
31st  December,  1864,  duly  examined  and  certified  by  the  auditors.  From 
the  balance-sheet  it  will  be  seen  that  the  gross  profits  for  the  half-year,. 
bududing  i£713. 14<.  3<i.  brought  forward  from  last  account,  have  been 
£15|563.  9#.  M.y  after  provicQng  for  bad  and  doubtful  debts,  and  that 
after  deducting  all  the  current  expenses  of  the  bank,  interest  paid  to  cua- 
iomen,  Ac,,  and  allowing  for  rebate  of  interest  on  bills  discoimted  and 
Bat  dae,  there  remains  a  disposable  balance  of  £4,169.  19«.  lid.  The 
VOL.  XXV.  19 


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238  Midland  Banking  Company. 

directors  reoommend  that  out  of  this  sum,  £384.  3s.  2rZ.,  being  at  the  r 
of  10  per  cent,  per  annum,  should  be  written  off  preliminary  expens 
that  £2,029. 18«.  should  be  appropriated  to  the  payment  of  a  dividend 
the  rate  of  5  per  cent,  pei  annum,  free  of  income  tax,  upon  the  paid 
capital  of  the  company ;  that  £1,000  should  be  added  to  the  reserve  fu 
and  that  the  balance,  £765.  IBs,  9d.,  should  be  carried  forward  to  '  pn 
and  loss '  new  account.  The  sharehcdders  are  aware  that  in  October  ] 
arrangements  were  proyisionally  concluded  between  the  directors  of  t 
company  and  the  oirectors  of  the  Londcm  and  Northern  Bank,  for 
amalgamation  of  the  two  companies.  These  arrangements  were  not  o 
firm^  by  the  shareholders  of  the  London  and  Noiihem  Bank,  but  bef 
the  close  of  the  year  your  directors  were  able  to  conclude  terms  for  1 
transfer  of  the  business  of  the  London  and  Northern JBank  at  Huddersfic 
Leeds,  and  Sheffield,  to  the  Midland  Banking  Company,  which  they  beli< 
cannot  fail  to  prove  highly  advantageous  to  the  shareholders.  The  direct< 
have  also  the  pleasure  to  report  tluit,  since  the  date  of  the  accompany] 
balance-sheet,  the  position  of  the  bimk  has  been  further  strengthened 
the  addition  of  upwards  of  240  names  to  its  proprietary ;  that  numbei 
shareholders  in  the  London  and  Northern  Bank,  holding  together  i 
wards  of  3,800  shares  (£25  paid),  having  applied  to  have  allotted  to  th 
a  like  number  of  shares  in  this  company  (£15  paid)  in  lieu  thereof,  w 
the  understanding  that  they  are  to  receive  any  sum  beyond  the  £15  ] 
share,  which  may  be  realised  out  of  the  assets  of  the  Loiuion  and  Northc 
Bank.  By  these  allotments,  the  subscribed  capital  of  the  bank  will  be 
once  raised  to  about  £800,000,  the  new  shares  being  chiefly  held 
proprietors  residing  in  the  districts  of  the  branches,  and  therefore  ii 
position  to  promote  the  success  of  the  bank.  Basil  T.  "Woodd,  Esq.,  M.! 
of  Conyngham  Hall,  Knaresborough,  and  Charles  Poppleton,  Esq., 
Huddersfleld,  directors  of  the  London  and  Northern  Bank,  have  join 
the  direction  of  this  company ;  and  John  Stubbe,  Esq.,  a  gentleman  w 
known  in  the  district  of  Wolverhampton,  has  slao  been  elected  to  a  m 
at  the  board.  Resolutions  for  the  approval  of  the  election  of  the 
gentlemen  as  directors  will  be  submitted  to  the  meeting.  The  directc 
retiring  at  this  meeting,  in  conformity  with  the  articles  of  association,  a 
W.  Stratford  Dugdale,  jun.,  Esq.,  J.P.,  J.  H.  Lance,  Esq.,  and  F.  J.  Lb 
Esq.,  and  these  gentlemen,  being  eligible,  offer  themselves  for  re-electu 
The  shareholders  will  also  have  to  elect  two  auditors  in  the  place  of  0.  ] 
A.  Martelli,  Esq.,  and  John  Percivall,  Esq.,  who  will  retire  in  acoordan 
with  the  articles  of  association,  but  are  eligible  for  re-election. 

"Balance-sheet,  Dec.  31, 1864.— Dr. :  Capital  paid  up,  £85,389;  reser 
fund,  £1,000 ;  amount  due  by  the  bank  on  current,  deposit,  and  oth 
accoimts,  £345,484.  5«.  lOd. ;  liabilities  on  acceptances  by  the  baa 
£45,250:  together,  £390,734.  5s,  lOd.;  profit  and  loss  balance,  l»roii£^ 
from  last  account,  £713. 14«.  3d. ;  gross  profit  for  the  half-year,  aft 
providing  for  bad  and  doubtful  debi4^  £14,839.  15«.  3d.;  togethe 
£15,553.  95.  6d. ;  total,  £492,676.  10«.  4d.  Cr. :  Cash  on  hand  and 
call,  £57,004.  Oj.  4d. ;  purchase  of  freehold  and  copyhold  property,  aJ 
bank  fittings  at  head  office  and  branches,  £10,784.  S$.  Id, ;  purchase 
business  at  Wolverhampton,  and  also  at  Hereford,  £6,000 ;  bills  andnro^ 
sory  notes  discounted,  and  oUier  advances  to  customers,  £400^3. 15#.  9d 
preliminary  expenses,  and  expenses  in  establishing  branches,  £7,683. 3<.  8(1 
current  eiroenses,  including  all  salaries,  rents,  dl^  at  head  office  ai 
branches,  income-tax,  and  directors' remuneration,  £4,957.  If.  3d.;  u 


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Midland  Banking  Company.  239 

terest  paid  on  cmrreni  and  deposit  accounts^  dsc.,  £J6Sl^  6«.  3d. ;  total, 

€492,676.  15«.  M. 

**  Profit  and  loss  aooonnt.  —  Dr.  :  Current  expensee,  as  above, 
£i,9o7.  1<.  Sd. ;  interost  paid  to  cuatomers,  <fea,  £5,274.  e«.  3<i. ;  rebttbe 
<«n  bills  not  due,  carried  to  new  aooonnt,  £i^&2.  2s.  Id. ;  amount  written 
off  preliminary  expenaes,  being  at  the  rate  of  10  per  oent.  per  annum, 
£384.  Zi,  2d. ;  diTidmd  at  the  rate  of  5  per  oent.  per  annum,  for  the  half- 
year,  £2,029. 18«. ;  amount  added  to  resenra  fund,  £XfiQO ;  balanoe  carried 
i^ffward,  £755. 18s.  9d. ;  total,  j£15,553.  9b.  6d.  Or. :  By  balanoe  brought 
from  last  aoooont,  £713.  14f .  dd. ;  gross  profit  for  the  half-year,  after 
proriding  for  bad  and  doubtful  debts,  £14,839.  15^.  Zd.;  totaL 
£15,553.  9«.  6<r." 

The  Chairman,  in  moving  the  adoption  of  the  F0p(n!t,  said  he  had  a 
preai  deal  of  pleasure  in  drawing  the  attention  of  the  ahareholders  to  the 
I'^ofi  which  was  already  in  their  hands,  and  in  eongratulating  them  on 
^  prcigiesH  of  the  bank.  They  were  progressing  in  every  instance.  If 
the  aluf^c^ders  took  any  oar  every  amount  in  the  report  and  compared  it 
with  the  report  issued  for  the  previous  six  months,  they  would  find  an  in- 
cresse  in  everything,  and  more  especially  in  the  item  of  profit.  In  the 
pTCvioua  six  months  the  deposits  amonntea  to  about  £191,000 ;  but  in  the 
last  six  months  they  stood  at  £346,000.  The  gross  profits  for  the  six 
months  previouB  were  £9,900,  and  for  the  six  months  just  ended  about 
£14,800.  On  comparing  the  aoooonts  it  would  be  found  that  while  formerly 
it  had  taken  them  eighteen  months  to  dedare  a  dividend  of  five  per  cent., 
they  had  done  the  same  in  the  last  six  months.  The  reserve  fund  belong, 
ii^  to  the  bank  was  not  made  up,  as  in  the  case  of  other  companies,  by 
prcauuma  on  shares.  There  was  no  clap-trap  about  it.  It  was  made  up 
from  the  profits,  and  not  ovt  of  money  talran  out  of  the  ahardiolderB' 
po^eta.  (Hear,  hear.)  Dnrin^^  the  month  of  October  preliminary  nego- 
tiations had  been  earned  on  with  the  London  and  Nosihem  Bank  for  a 
transfer  of  the  business  of  thai  bank  to  the  company.  These  negotiations 
were  not  agreed  to,  but  after  some  farther  negotiation  thev  came  to  terms, 
the  «nmpany  taking  the  busuLeas  of  the  Leeds,  Huddersfield,  and  Sheffield 
bnadieB  of  the  London  and  Northern  Bank  at  a  purchase  of  a  year  and  a 
hsU  That  business  was  going  on  very  well,  as  it  dove-tailed  into  the 
other  boshiess  of  the  bank,  ^concluded by  moving  the  adoption  of  the 
reporl 

Bir.  Whxtworth,  in  seconding  the  motion,  said  the  bank  was  in  a  good 
and  sound  poaiticm. 

A  Sharefaolder  asked  on  what  terms  the  buainessof  the  London  and 
Northern  Bank  was  taken  over,  and  if  the  company  by  taking  over  that 
business  had  contracted  any  liabilities. 

The  G!faainnan  said  the  bank  had  contracted  no  liabilitiea  in  taking  over 
tlw  bnsineas  of  that  bank.  They  h^  an  effident  inspector  of  branches. 
The  bmk  poaeeased  good  managers,  and  everything  relating  to  the  bnsi- 
aesi  of  the  bank  came  under  the  immediate  inspectiDn  of  the  directors. 

Tht  report  waa  adopted. 

Hr.  B.  T.  Woodd,  M.P.,  Mr.  C.  Poppleton,  directors  of  the  London  and 
'StaiheTD  Bank,  and  Mr.  John  Stubbe,  of  Wolverhampton,  w^re  elected 
directofsof  ilie  bank. 

A  vote  of  thanka  to  thedirectora  and  the  chairman  dosed  tiie  pxooeed- 
isgs.  « 


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UNION  BANK  OF  IRELAND. 

The  fourth  ordinary  general  meeting  of  the  proprietors  of  thia  bank 
held  on  the  27th  January,  at  the  London  Tavern ;  Mr.  E.  W.  Wingi 
in  the  chair. 

The  Secretary  (Mr.  Bnll)  having  read  the  notice  convening  the  meet 
proceeded  to  read  the  report : — 

'^  The  directors  have  to  record  their  deep  regret  at  the  loss  the  bank 
sustained  by  the  death  of  their  colleague,  the  late  Henry  Bruce,  £ 
whose  sound  judgment,  ability,  and  untiring  energy  were  to  the  last 
voted  to  its  interests.  The  accounts  now  submitted  show  that  the  g 
profits  of  the  half-year  ending  3l8t  December,  1864,  after  making 
provision  for  all  bad  and  doubtful  debts,  amount  to  £18,782. 16<. ; 
after  deducting  all  current  expenses  and  interest  paid  and  due  to  customer 
current  and  deposit  accounts,  there  remains  (including  the  amount  broi 
forward  from  last  account)  a  total  available  balance  of  £7,972. 19«.  3i. 
directors  propose  to  appropriate  the  above  amount  as  follows,  £500  to 
reserve  fimd,  £500  in  reduction  of  preliminary  expenses,  £5,000  in  | 
ment  of  a  dividend  of  10«.  per  share  (free  of  income  tax),  leaving  a  ball 
of  £1,972.  19«.  3(2.  to  be  carried  to  new  account,  in  which  sum  is  indu 
rebate  of  interest  on  bills  discounted  not  yet  due.  During  the  past  b 
year  branches  of  the  bank  have  been  established  at  Kells,  county  Me 
Fethard,  county  Tipperary,  and  at  Tipperary.  The  first  named  was  ope 
in  August  last,  and  has  made  good  and  satisfactory  progress ;  the 
last-named  have  not  been  sufficiently  long  esteblished  to  enable  the  direc 
to  estimate  correctly  their  ultimate  success.  The  expenses  attending 
formation  of  these  branches  have  been  defrayed  out  of  the  profits  of 
past  half-year.  The  general  progress  made  by  the  bank  in  all  its  bran< 
is  satisfactorily  evinced  by  the  steady  increase  in  the  business,  the  acqu 
sition  of  several  valuable  accounts,  and  a  marli^ed  appreciation  of 
liberal  policy  which  has  been  adopted  in  its  management.. 

"Statement  of  accounts  te  3l8t  December,  1864. — Dr.:  Liabiliti 
Capital  £220,000 ;  deposits  and  current  accounts,  £366,480.  7s.  Id. ;  sen 
day  and  other  bills,  <fec.,  £19,606.  lis.  3d. ;  reserve  fund,  £1,500 ;  bala 
of  profit  and  loss,  £7,972.  19a.  3d. ;  total,  £615,559. 17a.  7d.  Assets.— < 
Cash  at  London  bankers',  branches,  and  agents,  and  loans  on  interest 
call  and  short  notice,  £166,959. 19a.  4d. ;  Qovemment  and  other  securii 
£16,445. 17a.  lid. ;  bills  discounted,  balances  due  on  current  accounts, 
£416,389. 16a.  5d. ;  bank  premises  and  furniture,  £9,466.  la.  3d. ;  i 
liminary  expenses,  £6,298.  2a.  8d. ;  total,  £615,559.  17a.  7d. 

"  Profit  and  Loss  Account  to  Dec.  31,  1864.— Dr. :  To  charges 
London  and  branches,  including  directors'  fees,  rent,  salaries,  interest  p 
and  due  on  deposit  and  current  acootnits,  <&c.,  £12,868. 11a.  lOd. ;  to  balai 
£7,972.  19a.  3d. ;  total,  £20,841. 11a.  Id.  Cr. :  By  balance  from  laststj 
ment,  £2,058.  15a.  Id. ;  by  gross  profit  for  half-year  to  Dec.  31,  ai 
making  full  provision  for  all  bad  and  doubtful  debts,  £18,782.  16a. ;  to 
£20,841. 11a.  Id. 

"  Proposed  Appropriation. — Dr. :  To  reserve  fund,  £500 ;  to  j 
liminary  expenses  account,  £500 ;  to  a  dividend  of  10a.  per  share,  fre< 
income-tax,  £5,000 ;  to  balance  carried  to  new  account,  £1,972. 19a.  £ 
total,  £7,972.  19a.  3d.  Cr. :  By  balance  of  profit  and  loss  aocoi 
£7,972.  13a.  3d.*' 


yA»|^^^^^^^B 


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Uniott  Bank  of  Ireland. 


341 


'THe  acoountSi  wiiich  wore  issued  some  time  fiiuoe^  being  takea  23 

^  The  CbairmaDy  in  rising  t«>  move  the  afloption  of  tlie  report,  expresaed 

tleilse|i  regret  which  the  board  felt  at  the  loss  of  their  late  excellent  and 

fiilatod  chairman^  Mr,  H.  Bnioei  who  ci.imbiueil  Hiugxihir  energy  and 

•etiTitj  with  a  nomidness  of  judgment  unefjufdledj  and  wlioso  uprigbtueas 

«>d  integrity  haii  won  him  the  esteem  of  all  with  whom  he  was  brought 

ioU)  contact*     The  board  felt  that  they  had  sustained  a  severe  loss  in 

<QiiMq[Q«liee  of  that  gentleman's  lamented  death^  and  the  shareholders  had 

)oit  121  him  a  jealous  guardiati  of  their  interests*     The  accounts  had  been 

^  •ome  days  in  the  hands  of  the  propi'ietors,  and  he  thought  tlmt  he 

^Kild  fairly  congratulate  them  upon  the  progress  whidi  tbe  bank  hivd 

ibade  dnnng  the  luAt  six  months*    He  referred  to  the  io crease  of  their 

irjnsitft  as  the  true  test  of  thjkt  progress,  and  more  especially  as  a  cri- 

tehoo  of  pubUe  confidence.     (Hear,  hear.)     It  was,  therefore,  most  grati- 

%ing  to  him  to  find  that  the  deposit  and  current  acouimts  on  the  31st  u£ 

Z^eooDber  amoimted,  as   shown   by   the    balance-sheet,  to  the  sum   of 

JCSGSjISO,  whems  in  the  preceding  June  tliey  were  only  £237,612  j  they 

iksid  tMidbre  bad  an  increase  in  their  deposits  during  the  present  half- 

fmt  «f  Biearly  £130,000,  and  they  now  aniomited  to  double  tlm  smn  at 

viiidl  Ibey  stood  thia  time  last  year,  and  more  than  fourfold  the  Hum  at 

vkich  iliey  stood  in  June,  18(]3,     He  thought  they  would  athait  tlmt  that 

'■■n  a  ircry  j»tis{actory  progress  to  make,  and,  of  course,  the  increase  of 

ih#  gross  profits,  wlucb  during  the  jiast  half-year  amounted  to  £6,270 

iifv  Uuit  of  the  preceding,  must  be  e(]^ually  satisfactory,     (Hear^  hear«) 

TlMcltfir^geR  at  Londou  aud  the  various  branches,  inclui.llng  fees,  rent^ 

Hhfta^  and  interest  i>aid  aud   due  on  current  and  deposit  accounts^ 

**H*TiilH  to  £12,868;  but  it  was  right  to  teU  them  that  of  this  stun 

1)1^700  vaa  interest  paid  aud  due  on  deposit  and  current  ficcounts^  so  tliat 

iW  woddii^  expenses  were  ropreaented  by  the  sum  of  £6,100. 

Mt*  Hdggins  expresse*!  a  hope  that  when  the  accounts  were  provliiced  at 
^  imf^  hmlf -yearly  meeting,  the  items  of  interest  and  geueral  charges 
lM>ild  Veael  down  separately. 

The  Chiinn^n  said  they  had  no  objection  whatever  to  do  so.    They  had 

«xtd*arr<iiirad  t<»  work  the  baiik  an  economically  a^  possible  ortnsisteutiy 

wjffc  ttf  rifwy,  tvnd  with  the  same  workiug  expenses  tlicy  wuuld  be  able 

IpdftJ  >  I'  larger  fuixb?.     They  hatl  established,  duriug  the  past 

itZ  tnOL<  uew  branches,  and  the  expenditure  connected  with  their 

QSlablkhmi^nt  ha*i  beeti  defrayed  out  of  the  i)rotit«  of  the  half-year.     One 

4  iki«e  hnutches  was  oj^eued  in  August  last,  aud  the  other  two  in  Kov. 

cs'  .    -    *    ninra«  tiiey  had  had  to  provitle  for  an  exx>entUture  in  thnso 

»^  Hi  able  aa  yet  to  reap  any  profit,  which,  however,  he 

00  derivetl  to  a  considerable  extent  from  them  liereafter. 

u  desire  of  the  direetora  ever  since  the  establiaiimont  of  tluH 

^u.^  '-"rt'"'  1' Tice  of  the  Irifth  people,  and  they  thought  they 

!  to  confine  themselves  to  legitimato  banking 

_'  in  Ireland  the  deposits  they  hsvl  receive*!  in 

bdaad.  Hiey  had  no  doubt  whatever  that  the  j»t.Mple  of 

Ij^li]i4  V  '  inc-dculable  a<lvantage>^  wliich  the  establish- 

amt  of  •  ^  up^jn  tho  country.     It  was  entirely  diio 

10  !>,..  ,  idon  Bank  of  Ireland  that  the  vidue  of 

4pj^,  1^  per  cent,  to  its  present  rate — namely, 

j^>  )— so  that  it  li&d  actually  made  a  differ* 


nn 


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242 


Uiiion  Bank  of  Ireland. 


i 


cuc(j  to  the  saving  papulation^  of  from   £200fl00  to  £280,000  a  ; 

taking  the  whole  amount  of  deposit  money  in  the  conntry  at  the 

figoro  of  £10.000yOOO.  He  beliered  that  there  was  still  a  large  som  of  m 

hoarded,  and  had  been  for  some  time,  in  oonseqnenoe  c3  the  old  b 

not  ofTering  its  possessors  sufficient  inducement  to  deposit  it  with  tl 

and  there  was  no  doubt  that  the  policy  adopted  by  ttua  baak,  and  ^ 

had  DOW  been  followed  by  oilers,  of  offoring  a  bat  rate  of  interesi 

deposits,  would  lead  to  the  release  of  nradi  ot  the  boarded  moiiey>  ▼^ 

for  all  purx>oees  connected  with  the  adrancemoit  and  proq^eri^  of 

cramtry  was,  at  present,  absolutely  useless.     (Hear,  hear.)      KTen 

Bauk  of  Ireland,  which  occupied  an  analagoos  position  to  the  Ben 

England,  except  that  its  notes  were  not  a  legal  tender,  and  which 

III  or  I  y  gave  no  interest  at  all  to  depositors,  have  allowed  aa  much 

per  cent. ;  and  all  the  old  banks  had  now  come  forward  and  foUowe 

example.    The  fact  that  the  deposits  in  this  bank  exceeded  by  £13C 

thoBfj  of  the  last  half-year,  showed  the  amount  ol  confidence  whidi 

public  placed  in  it,  and  led  to  the  expeotaticm  that  in  a  very  few  j 

they  would  have  a  very  large  amount  of  money  on  deposit  account. 

might  also  mention  that  the  establishment  of  the  Union  Bank  had  g 

far  greater  facilities  for  the  transmission  of  monev  between  the  two  o 

tries,  which  facilities  the  commercial  dasses  had  largely  availed  tl 

selves  of.     (Hear,  hear.^    In  respect  to  the  new  branches,  a  remuii 

tiTG  biLsiness  had  alreaay  been  established  at  Kells ;  sufficient  time 

not  J  however,  yet  elapsea  to  enable  the  directors  to  form  a  judgment  i: 

the  i  »ther  branches,  but  the  most  favourable  reports  had  been  received  f 

the  Tiianagers,  and  this  he  would  say,  that  the  curectors  would  have  nol 

tition  in  at  once  closing  any  branch  which  after  a  fair  trial  was  found 

to   do  yell.     (Cfheers.)    With  respect  to  the  internal  prospects  of 

laBf  1,  he  was  happy  to  say  that  they  were  more  cheerful  than  they 

beeu  for  some  time.    The  harvest  had  been  a  sood  one,  and  the  oe 

cn>ps  had  been  gathered  in  without  loss,  and  on  we  whole  they  were  g 

The  grazing  coimties  had  x>erhaps-  not  done  so  well  on  account  of 

extreme  drous^ht  in  the  summer,  but  the  whole  position  of  the  com 

wa.H  improved,  wages  being  high  and  food  abundant.     (Cheers.) 

cour^^e  the  late  commercial  crisis  had  been  a  period  of  anxiety  to 

tli rectors,  but  he  was  happy  to  say  that  they  had  been  no  loners  to 

extent^  and  that  that  crisis  had    passed  by  leaving  them  unscatl 

(Clieera.)     They  might  have  noticed  that  there  had  been  a  heavy  fail 

iu  the  woollen  trade  announced  last  week ;  but  although  it  was  true  t 

they  held  some  bills  drawn  by  the  firm  which  had  fuled,  yet  they  ^ 

informed  by  their  manager  that  the  bank  would  not  sustain  any  loss 

their  account,  the  bills  themselves  having  excellent  second  names,  and 

bauk  holding  collateral  securities  in  addition.    In  conclusion,  he  m^ 

mentioQ  one  fact  which  was  most  gratifying — ^namely,  that  whereas 

allottJieut  the  number  of  English  proprietors  in  the  bank  was  276,  i 

that  of  Irish  proprietors  141 ;  at  present  the  English  shar^olders  nn 

bered  172,  ana  ihe  Irish  258,  so  that  in  point  of  fiu!t  nearly  two-thirdc 

the  proprietary  was  Irish.     (Cheers.)    It  was  needless  for  him  to  point  < 

Imw  useful  the  Irish  proprietors  might  be  to  the  bank,  and  he  reminc 

them  that  it  was  a  duty  they  owed  alike  to  the  directors  and  to  th 

brutber  proprietors,  that  each  shareholder  should  do  all  he  could  to  p 

mote  the  interests  of  the  bank.     (Cheers.)    He  begged  now  to  move  i 

adoption  of  the  report. 


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JTari  Citij  and  County  Banl\ 


243 


n. 


3 an  Beconiled  the  resolution. 
'  inquired  whetlier  the  bank  held  any  pAper  of  a  large 
vision  trade  who»e  failure  had  just  been  auiif^unced  1 


The 
tliebo 


said  he  was  happy  to  say  that  they  hold  no  obligaticoiB 
al  all  lu  rL^£N.^cT'  to  that  finn.  (Cheers.)  They  liad  excellent  meatid  of  ob- 
tauing  aociuate  inform  atian  in  respect  to  the  position  of  all  parties 
aafagod  in  the  Iriah  pn>vifliou  tnule,  which  had  steered  them  clear  from 
less  in  this  instance,     (Cheers.) 

an.^  — >rt  was  then  jrut  and  agreed  to  tmanimonsly. 

Luiftion  of  the  Chairman,  seconded  by  C/4>lt»uel  Western,  a  diTi- 
1  ' '"  j^hare,  free  of  income-tax,  was  then  declared. 

1,  in  reply  to  a  question  from  a  shareholder,  stated  that 
^  ;    „.i  be  most  happy  to  receive  into  it  an  Lnfusion  of  the  Irish 

^  ami  thai  if  any  gentleman  of  position  and  standing  were  bimight 

foTwrnrd  or  oflTerod  himself,  he  would  be  warmly  received  by  the  directon. 
On  the  motion  of  Sir  J.  Duke,  seconded  by  Mr.  J.  Oumey  Hoare^ 
» ootdial  vote  of  thanks  to  the  chaiiman  aud  directors  was  carried  by 
sedflauitioti. 

The  Chairman  J  having  thanked  the  meeting  for  the  oomplimeDt,  moved 
stole  of  ihanket  to  Mr.  Quain,  the  general  manager  in  Ireland,  Mr.  BiiU, 
IW  secretary ;  and  the  general  staff,  which  was  secondeil  by  a  shareholder^ 
and  buried  imanimotudy. 
Mr.  Bull  returned  thanks,  observing  tliat  the  managers  were  deter* 
~  to  do  everything  in  their  power  to  carry  out  a  stewly  banking 
feeling  convinced  that  in  the  long  run  that  was  a  policy  which 
>,- most  auooessful.     (Cheen.) 
ing  then  separated. 


THE  NATIONAL  BANK  OF  AUSTRALASIA. 


Tlfhftif.yej&r1\ 
OisHrad  O 
was  Milnmt  t 
oal<4  which  a 
I  taionuti] 


ruf^ttLuL'  of  thw  bank  was  held  on  the  1st  November^  at 

lie,  Mr.  1\  H.  Power  iu  the  chair,  when  a  report 

net  profit  for  thebaU-yearof  £30^.  0«.  lOd., 

.  '    the  rate  of  10  per  cent,  per  annum  was  de- 

t  ^  ^      KM » ;  £1>,(KK)  WHS  added  to  the  reserve  fund^  and 


tXfXSS*  (b*  10k/*  carried  to  the  next  aoooimt* 


YORK  CITY  AND  COUNTY  BANK. 
Xas  UXi0mo^  is  the  rejiort  of  tlie  directors  to  the  proprietors,  at  their 
g^©f'*"^  ^..— ftr..^  field  on  the  26th  January: — 
^Pli^  tkii  ^>*3  satisfaction  to  state,  in  this  their  thirty- fiftli 

middng  provision  for  bad  and  doubt  fid  debts, 
surplus  fund  with  £1^18.  8«.  2d,  (interest  at 
I  ynuWk  fnr  the  year  1864,  of  £22,028.  19^1.  3d., 
I  of  8  per  cent,  on  tlie  increased 
i  -',  (together  £17,500,)   free  from 

I  tlic  bahmoe  ui  £4,528.  19dr.  3d.  be  carried  to  the 
i,  which  will  then  amount  to  £36,207.  12^.  Od.     The 
(fintdoca  h«v«i  to  iioticB^  with  sincere  regret,  the  h.*SsS  by  death,  since  the 
l^oitwonusmbere  of  the  board;— Caleb  Fletcher,  Esq.,  who 


finin  whidi 
is|iiial,  !Ui*^ 
iaacoD* 


Digitized  by  * 


i 


244  Anglo-Italian  Bank. 

was  many  years  an  ordinary  director,  and  Eobert  Williamson,  Esq.>  fc 
many  years  a  managing  director,  and  latterly  the  chairman  of  the  boart 
whose  practical  knowl^lge  of  banking  was  of  much  service  to  the  con 
pany.  The  vacancies  at  the  board  thus  caused,  have  been  filled  up  b 
the  appointment  of  Edward  Hotham  Newton,  Esq.,  and  Caleb  Williami 
Esq.,  M.D.  The  former  retires  by  rotation,  and  is  eligible  for  re-election 
and  the  appointment  of  the  latter  is  subject  to  the  approval  of  th 
shareholders. 

Before  dividing  the  profits,  the  directors  voted  a  bonus  of  10  per  ceni 
to  the  staff,  and  also  voted  a  gratuity  of  £1,000  to  Mr.  Smallwood,  i 
recognition  of  his  long  and  valuable  services. 
The  following  resolutions  were  adopted : — 

^  That  the  report  which  has  been  read  to  the  meeting  be  adoptecJ 
printed,  and  circulated  amongst  the  shareholders.  That  James  Meek 
Esq.,  who  retires  by  rotation,  be  re-elected  a  director.  That  Edwan 
Hotham  Newton,  Esq.,  who  retires  bv  rotation,  having  been  elected  in  th 
place  of  Kobert  Williamson,  deceased,  be  re-elected  a  Director.  That  th 
appointment  by  the  directors  of  Caleb  Williams,  Esq.,  M.D.,  as  a  directo 
of  this  Company,  in  the  place  of  Walter  Sellon  Gibson,  Esq.,  who  resigned 
after  having  been  elected  in  the  place  of  Caleb  Fletcher,  deceased,  be  ap 
proved.  That  the  sum  of  £800  be  placed  at  the  disposal  of  the  managing 
directors,  and  £300  be  appropriated  for  the  ordinary  directors,  for  Uiei 
services  for  the  present  year.  That  the  thanlis  of  the  shareholders  h 
presented  to  the  diairman  and  the  board  of  directors  for  their  valuabL 
services.  That  the  thanks  of  the  shareholders  be  presented  to  the  genera 
manager  and  the  officers  for  their  services  during  the  year." 


THE  ANGLO-ITALIAN  BANK,  LIMITED. 

Annexed  is  the  first  report  presented  at  the  general  meeting,  held  oi 
the  30th  January : — 

<<  The  directors  have  the  pleasure  of  submitting  to  the  proprietors,  thi 
first  annual  balance-sheet  of  the  Anglo-Italian  Bank.  Although  th< 
government  readily  accorded  to  your  directors  the  necessary  permission  t< 
ox>en  a  bank  in  Italy,  still  the  le^  formalities  consequent  thereon,  togethe] 
with  the  difficulty  in  finding  suitable  offices  and  competent  managers  foi 
the  different  branches,  were  productive  of  considerable  delay,  so  tnat  the 
office  at  Turin  was  only  opened  for  business  on  the  1st  October,  and  th< 
branch  at  l^Qlan  on  tlie  1st  December,  1864.  A  branch  will  be  opened  ai 
Florence  in  a  few  days,  and  the  directors  also  intend  to  commence  businesi 
at  Naples  as  soon  as  possible,  a  manager  and  staff  having  been  already  ap 
pointed.  Acting  under  the  power  given  them  by  the  articles  of  association 
ike  directors  have  appointed  local  committees  for  Turin  and  Milan.  The 
following  gentlemen,  representing  some  of  the  most  influential  firms  is 
those  cities,  have  consented  to  act  in  this  capacity ;  viz.,  for  Turin — Sig 
Giuseppe  Dupre,  (Dupr^  perd  &  fils) ;  Sig.  Yincenzo  Denina ;  Sig.  Gaetano 
Piaggio;  Sig.  Gaetano  Spinelli,  (B^ele  Bem^  <&  Co.);  and  for  Milan— 
SigrGiulio  Belinzaghi ;  Sig.  Pietro  Brambilla,  (BrambiUa  <fe  Oo.^  ;  Sig. 
Giuseppe  Oneto,  (Oneto  Cavajani  &  Co.)  ;  Sig.  Giovanni  Noeeda,  (Noseda 
&  Burocco.)  The  directors  think  themselves  most  fortunate  in  having 
secured  the  oo>operation  of  these  gentlemen.     The  gross  profits  up  to  the 


1 


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Anglo-Italian  JBanL 


245 


^U  December,  have  amounted  to  £25,102.  6^.  7d. ;  deducting  £8,420.  5s.  6d, 
t'.'T  exfieiises,  and  £4,652.  135. 4c?.  for  rebate,  at  7  per  cent,  per  annum, 
litre  remains  a  sum  of  £12,029.  7«.  lOd.,  out  of  which  after  the  pajrment 
'  f  G^.  per  share  by  way  of  interest,  free  of  income  tax,  being  at  the  rate 
"f  rather  more  than  6  per  cent,  per  annum,  amounting  to  £5,500. 10s.  your 
'lirectors  recommend  that  £2,831. 13s.  Id.  be  written  oflf  from  preliminary 
erpenses,  and  £2,000  phiced  to  a  reserve  fund,  leaving  a  balance  of 
il,Gl»7.  4s.  9<i.  undivided  profit  to  be  carried  to  the  next  account.  In 
txercise  of  the  power  conferred  on  the  board  by  the  articles  of  association, 
ihe  directors  have  added  the  following  gentlemen  to  their  number,  viz  : — 
^ir  J.  P.  Lacaita,  K.C.M.G.,  Member  of  the  Italian  Parliament ;  Sabino 
Lnjnino,  Esq.,  of  the  firm  of  Leonino  Bros.,  of  Genoa,  and  Commendatore 
Devincenzi,  President  of  the  Royal  Commission,  for  the  Cultivation  of 
Cotton  in  Italy,  and  Member  of  the  Italian  Parliament.  Sir  James  Hudson, 
J.  Lobbock,  Esq.,  and  R.  Benson,  Esq.,  retire  from  office  by  rotation,  but 
are  eligible,  and  offer  themselves  for  re-election.  The  accounts  have  been 
audited  by  Mr.  Tucker,  actuary  of  the  Pelican  Life  Insurance  Company, 
Hid  Mr.  A.  Ricardo,  appointed  by  the  coimcil  for  that  piu-pose.  It  will 
rtvt  with  the  proprietors  to  appoint  auditors  for  the  ensuing  year." 

Balance  Sheet,  Slst  Decemher,  1864, 

CAPITAL  AKD  LIABILTTrES. 

QmtaX  called  np,  viz.  £lO  per  share  on  20,000  shares,  £200,000  ; 
Less   amount   on    1,665   shares,   nnallotted,   £16,650  ;     and 

arrears  on  first  call,  £14,610:  £31,260        £168,740     0     0 

Bills  payable,  current  and  deposit  accotmts,  and  letters  of  credit       122,316     9    3 
Prurit  and  loss  account,  as  per  annexed  statement        ...  ...         25,102     6    7 


£316,158  15   10 


PBOPERTT   AND  ASSETS. 


^a>ri  in  hand,  at  bankers',  and  on  deposit         ...           ...           ...       £39,393  7  6 

H/r.^-rti^iTablc,  bills  discounted,  loans,  and  Other  investments    ...       261,447  3  3 

Bank  premises  and  funiiture  ...           ...           ...           ...           ...            1,286  12  0 

rrcliifiinary  expenses...           ...          ...           ...           ...           ...         14,031  13  1 

£316,158  15  10 


Br. 


PROFfT  AND  LOSS  ACCOUNT, 


^'irrent  expenses;  including  salaries,  directors*  remuneration, 
•tationery,  advertisements,  rent  in  London  and  at  the  branches, 
income-tax,  and  other  charges         ...  ...  ... 

Rihate  of  interest  on  bills  discounted  and  not  due ;  taken  at 
7  f«ef  cent,  per  annum 

Bakiice  carried  down  ...  ...  ...  ... 


Interest,  at  the  rate  of  6#.  per  share    ... 

PrcliminaTy  expenses,  amount  written  off 

Hf^errefond;  amount  carried  to 

-Baiance ;  being  undiyided  profit  carried  to  new  account 


£8,420     5     5 


4,652  13 
12,029  7 

4 
10 

£25,102  6 

7 

£5,.')00  10 
2,831  13 
2,000  0 
1,697  4 

0 

1 
0 
9 

£12,029  7 

10 

Digiti 


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246 


Joifit'Stoek  Discount  Company. 


Cr. 
Gross  profit  brought  doTrn 


Net  I  rofit  biooght  down 


£25,102  < 
£25,102  i 
£12,029     : 


Bftlaoett  of  nndivided  profit  carried  to  new  accoant 

[We  shall  give  a  report  of  the  proceedmgs  in  onr  next  number.] 


THE  JOINT-STOCK  DISCOUNT  COMPANY,  LIMITED. 

The  following  is  the  report  of  the  directors  of  this  company  adoptee 
the  third  ordinary  general  meeting  of  shareholders,  held  at  the  Lon 
Tavern,  on  the  Slst  Jannary : — 

^  In  submitting  the  annexed  statement  of  accounts,  the  directors  1: 
pleasure  in  congratulating  the  proprietary  on  a  result  which  they  an 
opinion  will,  when  the  late  severe  commercial  crisis  is  considered, 
regarded  as  satisfactory.  The  balance  of  gross  profits  made  during 
six  months  ending  the  31st  ulto^  after  reserving  an  amount  as  provii 
against  loss  in  respect  of  bad  4obtB  greatly  exceeding  that  which  i 
believed  will  ultimately  be  found  necessary,  have  been  £46472.  IZa.  ] 
This  amount,  after  deducting  rebate  on  bills  not  due,  and  the  cun 
expenses,  has  enaUed  the  directors  to  increase  the  reserve  fmid  to  £30,< 
to  declare  a  dividend  at  the  rate  of  6  per  cent,  per  annum,  amounting 
ds.  6(2^  per  share,  free  of  income-tax^  and  to  carry  forward  £3,243.  2s.  1 
to  *  profit  and  loss '  new  account.  In  consequence  of  the  stoppage  of 
Leeds  Banking  Company,  of  whose  endorsements  this  Company  at 
time  held  a  very  large  amount,  the  extreme  difficulty  in  negotiating 
best  mercantile  and  financial  paper,  and  the  extent  of  monetary  embarr; 
ments,  which  seriously  threatened  to  terminate  in  a  panic,  the  direct 
decided,  after  the  most  anxious  consideration,  that  it  was  in  the  interes 
the  proprietors  that  the  company  should  be  immediately  placed,  not  o 
in  a  position  to  meet  every  contingency,  but  in  one  of  undoubted  strcDj 
and  that  this  desirable  result  would  be  best  secured  by  making  a  c 
The  directors  trust  that  this  will  be  considered  a  sufficient  reason  fo 
step  which,  in  any  but  the  most  exceptional  times,  might  have  appea 
both  inconsiderate  and  unnecessary.  The  prompt  manner  in  which 
call  was  met  by  the  shareholders  proves  tiiat  they  fully  appreciated 
proprie^  of  the  measure.  The  directors  have  elected  Mr.  A.  W.  Eixoi 
one  of  uie  vacant  seats  at  the  board.  Owing  to  tiie  imavoidable  abse 
abroad  of  Mr.  J.  P.  Judd,  one  of  the  company's  auditors,  the  direct 
have  appointed  Mr.  C.  J.  H.  Allen  in  his  place,  which  appointment 
iqp{ux>ved  of,  will  require  confirmation  by  the  shareholders.  The  oompan 
register  on  the  1st  «f  anuary  of  this  year  included  no  less  than  1^50  shs 
holders,  ccanprising  the  names  of  alai^e  number  of  the  leading  mercba 
and  traders  of  London  and  the  provinces,  and  the  directors  have  no  den 
that  the  position  of  the  company,  supported  by  bo  influential  a  oonsti 
enoy,muBt  continuously  improve." 


H 


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Ea^em  Exchange  Bank. 

BaiameShtett  SliiBeeenU^^  1864. 

Ci^iua— 80.000  fiiiares,  £10    paid,  £800,000;    Less    utipaid 

alli.  £44^87.  lQi«* 
Itonerm  £id4  »•• 

▲moaiit  dii«  cm  Joftiu,  depoats,  &c. 


247 


Aflramit  emied  loprofit and lois  accouut,  a£ter  makiDg  ampU 
aUo^ftnoe  for  jjf  bad  and  doubtTol  dcbta 


Cf, 


«     £755,412  10     O 

25,000     0     0 
2,197,040  i:     8 


hmmamm  in  Ccnuob  And  cash  nt  bsnkers* 
,  mdTmnces,  &c.,  &c. 


46,172  13 

10 

£3,023,626     1 

6 

.*.        292,693     8 
...     2.728,400     3 

2,532  10 

2 

0 
4 

£3,023,626     I 

6 

vmym  asid  loss  accoust  wcm  tsb  bee  months  Jstn>ixo  Slat  dec.,  1S64. 

Dxr  ea,  tnclnding  salaries,  rent,  stAtionery %  advcrtise- 

m- :  '  rs'  fees,  aaditore'  fees,  dcprecUdon  in  toIug  of 

k*jfc,  iiitiii^a  and  furnittiTc,  inconie  tax,  &c..,, £5,868  10    ^ 

Cetate  on  hills  discoimtcd,  not  tc%  doe — carried  to  Intofwt  neir 

aeecmnt ...  19.472  14    3 

BfttldcDd  at  the  late  of  6  per  cent,  per  annum 14,000    0    o 

Amoont  carried  to  resenre  fund    .» 5,om>    (»    a 

H^mxx  cuiicd  U)  profit  and  loae  new  account  ..»       •»       •••  3,243    :i  1 1 


er. 


of  profit  and  loss  aecotixit,  SOih  June,  1864 
of  gpooi  profits  brought  down    ... 


fW«4kaII  give  a  report  of  the  prooeedings  m  our  next  number,  themaet- 
l  tftken  [>iace  tx»  late  fur  present  insertion.] 


£47,584 

7 

7 

£1,411 

4^,172 

13 
13 

9 
10 

£47,5S4 

7 

J 

EASTERN  EXCHAJJ^GE  BAifX,  LIMITKD. 
Tn  Mlovtng  i«   the  report  cif  the  directors  of   thij*  cjmpany  to  the 
|jro|itlei0n|  at  tli^r  lint  gcDeml  meeting,  to  be  lield  at  laverpool  on 

••  Tl»<?  *1tr^<?t^>r«  in  willing  tlm  •ImreltoMfTs  tri^el.b«r  for  the  fiat  time, 
\fi^i,-  ■  '    '     *  ink  8in«j  its  for* 

lo^^JL  iidng  a  STiitftble 

"   iiiT'.'iv^c^  nijii  tiio  gt;'jiei;uiy  em Darraaaed  state  of 
:*3d  tie  direotoTS  to  postpone  making  colls  and 


*  Since  reduced  to  £25»372, 10#. 


Digitized  by  * 


^48  The  Glasgow  Chamber  of  Commerce  and  the  Bank  Act 

opening  branches  abroad ;  they  haVd,  however,  been  enabled  to  emplo; 
satisfactorily  the  amount  of  capital  in  their  hands  during  the  few  moatk 
the  bank  has  been  in  operation,  as  by  the  annexed  statement,  sho'wing  i 
balance  of  profit  of  £3,366.  2»j  3d.,  out  of  which  they  recommend  a  dividen< 
for  the  half  year  of  1«.  6d.  per  share,  free  of  inoome-taxj  say  at  the  rate  c 
5  per  cent,  per  annum,  leavings  £366.  2s.  3d.  to  be  carried  forward  to  nex 
account.  The  directors  delegated  Mr.  J.  H.  Btheridge  (general  manager 
to  proceed  to  Egypt  to  iastablish  a  branch  at  Alexandria.  The  advices  re 
ceived  from  him  are  highly  satisfactory,  and  it  is  anticipated  that  a  laJ'g 
and  profitable  business  will  be  transacted  by  the  bank  there.  Mr.  R.  1 
W.  Baker,  formerly  of  the  Agra  and  United  Service  Bank,  and  of  -th 
Bank  of  Hindustan,  China  and  Japan,  has  been  appointed  residen 
manager  at  Alexandria.  The  directors  who  retire  by  rotation  are  Mi 
Patrick  Hunter,  Mr.  G.  M.  Bowen,  and  Mr.  A.  Malcolmson,  and  beinj 
eligible  for  re-election,  they  offer  themselves  accordingly.  The  meetin; 
will  also  have  to  elect  an  auditor  for  the  ensuing  year,  and  fix  his  remu 
neration.'^ 


THE  GLASGOW  CHAMBER  OF  COMMERCE  AND  THE 
BANK  ACT. 

At  a  meeting  of  the  Glasgow  Chamber  of  Commerce,  on  the  10th  January 
Mr.  Sandeman  moved  the  following  resolutions : — 

^That,  in  the  opinion  of  this  Ohaml^r,  fli^ctuations  in.  the  rate  o 
interest,  frequent,  extreme,  and  sudden,  to  an  extent  previously  unknown 
and  highly  injurious  to  the  commercial  interests  of  the  country,  if  not  pro 
duced,  nave  been  greatly  aggravated  by  the  enactments  and  restriction: 
on  issue  and  banking  imposed  by  the  act  of  1844.  This  opinion,  maturely 
formed  after  twenty  years'  trial  of  the  act,  is  especially  confirmed  by  reoen 
experience  of  excessive  high  rates,  and  by  no  less  thim  seventeen  change 
of  the  rate  having  occurred  during  twelve  months. 

^  That  the  remarkable  success  of  Scotch  banking  previous  to  1844,  unde 
a  system  of  currency  and  banking  entirely  free,  attested  by  the  great  pros 
X>erity  of  Scotland  imder  that  system,  which  had  worked  so  well  fo: 
bankers  and  for  the  public,  forms  a  striking  contrast  to  the  experience  o 
English  banking,  under  the  opposite  system  of  exclusive  privileges  an( 
Testrictions,  ever  accompanied  by  frequent  and  overwhelming  disasters. 

^  That,  for  these  reasons,  this  Chamber,  in  the  prospect  of  some  measun 
on  currency  and  banking  for  the  United  Kingdom  being  introduced  during 
the  approaching  session,  resolves  to  petition  parliament  that,  previous  t< 
further  legislation,  a  special  inquiry  should  be  instituted  into  the  prin 
ciples  and  operation  of  the  free  Scotch  banking  which  prevailed  with  sncl 
signal  success  previous  to  1844,  with  the  view  to  ascertain  how  far  tha 
freedom,  so  entirely  in  accordance  with  the  principles  now  universally 
acknowledged  by  statesmen  and  by  the  public,  might  be  extended,  anc 
imder  what  modifications,  with  advantage  to  the  currency  and  banking 
of  the  United  ELingdom." 

Mr.  W.  Buchanan,  M.P.,  seconded  the  resolutions. 

Mr.  William  Kidston  proposed  an  amendment  to  the  effect  that,  as  the 
juatter  was  at  present  imder  consideration  of  a  committee  of  the  directors 
it  should  be  left  in  their  hands  to  report  to  the  Chamber. 

A  second  amendment  was  proposed  by  Sir  James  Campbell,  omitiinj 
the  first  and  second  re43olutions^  and  giving  a  more  general  scope  to  th( 
third. 


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Trade  qf  the  United  Kingd<mu 


24» 


After  %  good  deaT  of  dkcoasioo,  Hr.  Bandeman'a  resoluiiona  irere 
anied  by  »  largo  majority-. 

It  wsui  afterwards  remitted  to  the  lUrectors  to  frame  a  petition  to  the 
HoQie  of  CommoiM  in  accordance  witli  the  resolutions. 


TRADE  OF  THE  UNITED  KINGDOM, 
Tarn  Board  of  Trade  returns  for  the  month  and  eleven  months  ended  the 
90th  November,  were  iaaued  on  the  30th  December,  and  may  on  the  whole 
be  imrded  &«  satisfactory,  although  tiie  amount  of  export's  is  not  qnite  so 
|it«»  «Ain  the  correeponcfing  mouth  of  last  year :  bnt  the  chief  falliug  off 
\m b^en,  a»  for  the  first  two  or  tliree  montlia,  in  cotton  yarn  and  cottoa 
maxitt£*ctnree.  The  total  declared  vahie  of  exixjrts  for  the  month  of  the 
prftcnt  year  was  ^12,065;213,  against  £12,758,323  in  l%m,  and  £9,701^10 
in  lft02»  K'ing  a  decrease  of  £61*3,110  v^  compared  Tfith  the  former  period^ 
btu  AD  iti crease  of  £2,303,703  over  the  latter.  For  the  eleven  months  of 
*^  ^      ^  ^  V!  was  £148,340,865  against  £132»136,3G8  in  18f>3, 

2  ;  being  an  increase  oveir  1863  of  £10,205,407, 
H  V"  'utrasted  with  1862.  With  regard  to  expcjrts,  the 
;in  increase  are  alkali,  beer  and  ale,  cc»al3  and  cnlm^ 
iuifsn  iiii\iJui.vj^Liiu..,  iind  seed  oil;  but  there  has  been  a  decrease  in  arms 
and  amnmiiition,  cotton  yam,  cotton  nianufactnrea,  earthenware,  haber- 
«lit!ierT  and  millinery,  hardware  and  cutlery,  linen  yam,  iron  and  steel, 
ttioini  silk,  wlk  mannf actnrtw,  wooUen  yam,  and  woollen  manufacttu-es, 
WiiJi  nsspeciio  imixjrts,  tliere  has  been  an  increase  in  raw  cotton,  cott^Du 
mm^tfiH^trfla,  hemp,  leather  raaniifactnres,  saltpc'tre,  fkxaeed  and  linseed, 
vooL  cocoa,  *  -  '^*^^  f\n'l  *»u*^ar.  On  tlie  other  hand,  there  has  l)een  ^  falling 
off  m  raw  rits,  t^a,  tobacco,  and  wine.     As  reffarda  oereaJa, 

tberv  hfv*  b'  ^^'  i^  ^^^  importation  of  oats,  peas,  and  Indian  com  ; 

fml  a  ileerease  in  wiieat,  barley,  boans,  and  wheat  meal,  and  flour.     In  the 
t  «f  provisional,  ftalt  beef  and  butter  present  an  increase ;    but  in  bacon 
1  \mikm  ^  wdt  jx trk,  che^e,  eggs  and  lard,  there  has  been  a  decline      '^**'- 
vmiirxiw)    table**  exhibit   the  variations  in  the  several   articles   - 

ExrOBTa. 


The 

enume^ 


Ooftls  *irf  coIkd  »..  -•* 

GntlOfiiiiaintfactares  ... 

Cstlvmyani      -«  -;• 
0a^BwiAl)erv  and  milhncry 

lines  Dianaiftctnres  ..• 
UBenrarti 
liwi,  ptfT 

Ditto,  railway  ..-  -- 

I*  #,  niub^&Ci 

IHtto, 

ibirits,  f>Tnt»«  -.* 
w^Uea  clMilit,  Ae.     *.* 
WvdJkn  and  if  onrted  ysm 


tout 
vards 

,    'lbs. 

.  valoe  ^ 

,    vard.<* 

.  'ib<^. 

.     tons 

.   cwts. 

.  gallons 
.  vahiij  £ 
.  lbs. 
p  gallons 
,  yards 
,    cv;ts. 


661,823 

145,146,04« 

6,027357 

407,301 

15|635,189 

3,13:j,095 

33.6i>9 

26^864 

13.720 

51,507 

507,2^9 

111,004 

38,0;iO 

326,5D0 

2,112,601 

8,770,365 


773.395 
180,1157,25^ 


S,6a5,5K? 
41,l0i» 

11,057 

72,5C7 

761,951 

84,440 

38,269 

133.321 

1,898.240 

2,369,502 


Digitized  by* 


lie 


250         Unity  JoinUStock  Mutual  Banking  Cgrporation. 


IlCFOBTB. 


! 


Cocoa     

CoflTce     ... 

Wheat    ...        

Wheat,  meal,  and  flour 
Cotton,  raw       .u 
xiax       •••        •••        ••< 

Hemp     •••        •••        ... 

Hides,  tanned,  &o. 
Leather  manafactnres .. 

Batter 

Cheese 

Flax-seed  and  linseed  .. 

Silk,  raw < 

Silk,  thrown 

Silk  mannfactares 
Spirits     ...        ••• 
Sugar,  unrefined 
Tallow    •••        ...        .., 
^  ea         •••         •••         ••< 

Tobacco 

Wine 

Wool      , 

Woollen  manufactures.., 


1863. 


IlM. 

160,570 

♦  f 

6,619,232 

cwts. 

1,916,703 

«• 

464,355 

>f 

494,726 

It 

92,112 

ft 

86,51.6 

lbs. 

423,847 

pairs 

755,466 

cwts. 

77,190 

»f 

77,602 

qrs. 
lbs. 

64,973 

884,429 

91 

6,858 

»» 

173,667 

ipallons 

695,981 

cwts. 

345,650 

ii;.. 

220,281 

13,705,992 

»» 

10,228.384 

rallons 

1,161.906 

lbs. 

9,960,629 

ralue£ 

110.946 

1804. 


476,844 

8,190,574 

1,879,793 

226.740 

621,100 

79,048 

100,503 

539,319 

807.780 

97,887 

74,137 

129,798 

686,737 

1,891 

144,893 

239,858 

909,979 

123,385 

11.812.585 

6,053,870 

903,507 

15,777.105 

93«299 


THE  ALLIANCE  FINANCLU:!  COMPANY. 

The  Alliance  Financial  Company,  Limited,  propose  to  raise  £100,000 
in  5,000  ahares  of  £20  each,  with  power  to  increajtte  to  £1,000,000! 
The  object  is  to  assist  builders,  contractors,  and  others,  hy  rtiMn^ 
temporary  advatices  to,  and  guaranteeing  them  in  the  performance  oi 
contracts,  works,  and  other  obligations,  on  payment  of  a  moderate 
pi*emium  on  the  amount  guaranteed,  the  rate  of  premium  being  regu* 
lated  by  the  risk  in  each  case. 


THE  UNITY  JOINT  STOCK  MUTUAL  BANKING 
ASSOCIATION. 

It  appears  that  the  directors  of  this  bank  have  become  antagonistic 
to  the  committee  of  liquidators  with  reference  to  the  prosecution  oi 
Messrs.  Terry  and  Burch,  the  manager  and  secretary.  It  seems  thai 
the  liquidators  in  the  fulfilment  of  their  duties  deemed  it  rights  not 
only  to  the  shareholders,  but  for  the  public  interest,  that  such  a 
prosecution  should  take  place,  and  the  result  of  preliminary  inveirti- 
gations  before  the  Lord  Mayor  vrill  be  found  recorded  in  another  part 
of  our  present  number.  To  carry  out  the  prosecution  heavy  ex- 
penses would  have  to  be  incurred,  and  the  liquidators  veiy  naturally 
propose    that    they   should  be    defrayed    from  the  funds  of   the 


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The  Unity  Bank  Investigation, 


251 


Company,  but  this  has  been  objected  to  by  tlie  board  of  direc- 
tions, some  of  whom  would  doubtless  have  to  appear  as  un- 
wiillng  witnesses  at  the  forthcoming  trial  at  the  Central  Criminal 
court,  and  they  have  accordingly  just  held  a  meeting  at  which  the 
following  i-esolution  was  passed,  "  Tluit  in  the  opinion  of  this  board 
the  application  of  the  assets  of  the  company  in  the  propose<.l  prosecu- 
tion of  Terry  and  Burch  without  the  previous  sanction  of  the  share- 
h<:»lders  is  improper,  and  that,  in  the  absence  of  such  sanction,  this 
board  decline  to  be  answerable  for  the  costs  of  such  prosecution,  or  to 
sanction  the  application  of  the  assets  of  the  company  towards  the 
sime,"  and  in  order  to  prevent  the  necessary  funds  being  so  obtained 
they  also  passed  the  annexed  resolution  : — "  That  the  resolution  of 
the  17  th  of  Marcli,  1864,  whereby  it  was  resolved  that  no  checpie  be 
<irawn  imless  by  oixler  of  the  board,  such  drafts  to  l^e  signed  by  not 
less  than  two  of  the  liquidators,  and  countersigned  by  Mr.  Howell,  the 
accountant,  be  and  the  same  is  hereby  i-escinded,  and  that  henceforth 
all  cheques  be  signed  by  three  directors  of  the  company  and  counter- 
.^gned  by  the  secretary."  The  directors  have  also  called  upon  the 
cunuiiittee  of  shareholders  to  forthwith  restore  to  the  boaid  the  seal  of 
tJie  company,  and  the  vaiious  books  of  account  and  papers  now  under 
the  control  of  the  said  committee.  And  so  the  matter  stands  at 
present 


THE  UNITY  BAISTC  INVESTIGATION. 


THE  CHARGE  OF   CONSPIRACY  AGAINST   THE  MANAGER  AND  SECRETARY. 

I5  Tht  Banlcer^s  Magazine  for  December  we  gave  an  abstract  of  the  pro- 
ceefiiDgs  at  the  Mansion  House  before  the  Lord  Mayor,  with  regard  to  a 
char;^e  preferred  against  Mr.  Joseph  Wakefield  Terry,  of  Albert  Terrace, 
Waii^lawr/rth,  and  Mr.  Thomas  Burch,  of  Edmund  Square,  Kensington, 
the  former  the  manager  and  the  latter  the  secretary  of  the  Unity  Bank, 
for  unlawfully  circulating  and  publishing  a  balance-sheet  of  the  aSfairs  of 
the  said  comi^any  up  to  the  30th  Jime,  18G2,  they  then  well-knowing  the 
same  to  be  false,  with  intent  thereby  to  deceive  and  defraud  the  members 
anil  shareholders  of  the  said  company. 

^Ir.  Lewis,  jun.,  attended  on  behalf  of  the  prosecution ;  Mr.  Sleigh  do- 
feiided  Terry,  and  Mr.  Metcalfe  was  for  Burch. 

As  previously  stated,  the  examination  had  then  extended  over  five  days, 
and  it  was  not  till  six  other  adjournments  had  taken  place  that  the  investi- 
^tion  was  brought  to  a  close  on  the  14th  January. 

It  would  bo  quite  impossible  to  enter  into  the  details  of  the  evidence 
adduced,  and  tliis  is  rendered  the  more  unnecessary  as  the  charge  against 
the  defendants  is  about  to  undergo  a  furtlier  investigation  at  the  Central 
Criminal  Court.  The  inquiry  before  the  Lord  Mayor  took  a  very  extensive 
range,  embracing  the  whole  period  during  which  the  defendants  held  their 
res[>ective  ix)sitioiis.  The  chief  witness  to  prove  the  case  was  Mr.  Oswald 
HuweU,  the  accountant  to  the  liquidators,  who  went  over  an  immense  mass 
<i  figures,  the  resTilt  of  which  clearly  demonstrated  that  the  Bank  was  in 


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252t 


The  Unity  Bank  Inveatigatian. 


.an  inBolvent  poeition  at  the  time  the  defendants  were  issuing  balan< 
sheets  which  would  lead  to  the  inference  that  it  was  in  a  most  lourishi 
state. 

The  other  witnesses  examined  were  Mr.  Alderman  Mechi,  the  chairm 
of  the  bank,  Mr.  L.  Richard  Sykes,  one  of  the  branch  managers ;  ^ 
Kench,  a  shareholder;  Dr.  John  Henry  Cook,  also  a  shareholder,' a 
the  chairman  of  the  committee  of  liquidation  ;  Mr.  Creorge  Lewis  Phip 
Eyre,  a  director,  and  several  other  gentlemen  connected  with  the  bai 
The  evidence  of  Mr.  Alderman  Mechi  was  certainly  the  most  importa 
He  eudeaToured  to  show  that'  the  directors  had  been  most  att^tive 
their  duties,  regularly  investigated  all  the  accounts,  and  left  nothing  i 
done  that  shomd  be  done  by  a  board  of  directors ;  they  were,  howev 
deceived  through  the  great  confidence  reposed  in  their  manager.  1 
Alderman,  however,  was  subjected  to  one  of  the  most  rigid  cross-exami] 
tions  it  was  possible  for  any  witness  to  undergo,  both  by  Mr.  Sleigh  a 
Mr.  Metcalf,  in  the  course  of  which  it  was  made  apparent  that  gn 
laxity  existed  as  to  the  manner  in  which  the  business  was  conducted. 

At  the  close  of  the  evidence,  the  Lord  Mayor  having  intimated  that  i 
case  would  be  sent  to  a  higher  court  for  further  investigation,  the  lean 
counsel  for  the  defendants  intimated  that  they  should  reserve  their  clieo 
defence  for  a  future  occasion. 

Mr.  Lewis  said  that  was  the  case  on  the  part  of  the  prosecution,  and 
should  ask  the  Lord  Mayor  to  commit  the  defendants  upon  four  charges 
first,  for  conspiring  to  publish  and  represent  to  such  of  the  shareholders 
were  ignorant  of  the  affairs  of  the  Unity  Joint-Stock  Banking  Associati* 
that  the  bank  and  its  affairs  had  been,  during  the  half-year  preceding  i 
30th  June,  1862,  and  then  were,  in  a  sound  and  prosperous  condition,  p 
ducing  profits  divisible  amongst  the  shareholders,  the  defendants  vi 
knowing  the  contrary,  with  intent  to  deceive  and  defraud  such  of  the  sha 
holders  as  were  not  aware  of  the  true  state  of  its  affairs,  and  to  induce  th( 
to  continue  to  hold  shares  therein,  and  to  become  or  continue  customers  a 
creditors  of  the  bank ;  secondly,  that  they,  being  respectively  the  manaj 
and  secretary  of  the  said  bank,  did  concur  in  making,  and  circulating,  a 
publishing  a  written  statement  of  accounts^  knowing  the  same  to  be  fa 
in  material  particulars,  with  intent  to  deceive  the  shareholders  of  the  s; 
bank ;  thir<Uy,  conspiring  together  to  conmiit  the  offence ;  and  fourth 
conspiring  together  to  dieat  and  defraud  such  of  the  shareholders  as  w< 
ignorant  of  the  true  state  of  the  bank  by  inducing  them,  by  false  pretenc 
to  purchase  and  hold  additional  shares  in  the  bank,  the  defendants  knowi 
the  bank  to  be  in  a  bad  and  dangerous  condition,  and  approaching 
solvency^  and  that  the  shares  were  unsafe^  and  might  be  ruinous  to  1 
liolders. 

The  Lord  Mayor,  addressing  the  defendants,  said  they  had  been  pla< 
in  positions  of  great  trust  and  confidence,  and  he  was  sony  to  find  1 
strict  line  of  rectitude  had  been  departed  from,  and  it  was  quite  obvi< 
that  a  false  balance-sheet  had  been  made,  and  he  had  but  one  duty  to  p 
form,  which  was  to  commit  the  defendants  for  trial. 

After  having  received  the  usual  caution,  the  defendants  were  forma 
committed^  and  were  admitted  to  bail  in  a  total  sum  of  £8^000,  as  befo 


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Communkatiom* 


858 


TENDE1{;3  FOR  BILLS  ON  IKDLi, 

biijdijifTS  for  30^00,000  rupees  in  billii  on  In»lia  took  place  on  the  itb 

'^'iiik   uf    Englaud.      The  proportions  allott^fl  wcire— to 

'  rui>ee8 ;  to  Bombay,  12,1)0,01)0  rupees  ;  and  to  Miwlras, 

J  ae  miiMmiifw  price  wa*,  h* bufore,  1^.  llld.  ou  Calcutta 

ruid  l5.  ll'ld,   on  Biimbay.      The  appliwUiona  within  tha 

-.  .i..».„.„.,.^i  t4j  71  h\c&,    Teudera  <>ii  Calcutta  and  Madriks,  at  1^.  11  {cI., 

Peoisive  abnut  7  i>er  cent.,  and  on  Bombay  at  2j*.  about  76  i>ercant.  j 

'  t}w.«^  pric^  in  fulL     Further  biddings  for  30,<X>/J(Kt  rujiees  took 

he  18th  Jaiitmry.      Tho  pn^yjorticina  aliuttaii  were  to  Calcutta 

rtii)ce8,  to  Bombay  12,00,000  rupee?,  and    to  ALulras    1,01,«JOO 

a.    Thtj    rninimum    price  was  ajs  before,  Is,  11 J  J.  on  Calcutta  and 

nw,  and  1«.   llfci.  on   Bombay.      Tendere  on  Calcutta  and  Madraa 

t.  11  It/,  will  receive  in  full,  and  on  Bombay  at  Iji.  lljti.,  about  13  i>er 

;  ahoTe  tbe»t^  Iirice^  in  full. 


THE  CAPE  OF  GOOI>  HOPE  LOAJf. 

r%  for  the  Cajje  of  Good  Hope  loan  for  i£234,000  were  opened 

*>nuary-     A  total  of  £295,000  wa«  offered  at  prices  ranging 

The  minimum  price  was  90«     The  tenders  for  ttnd  above 

^^..  xx*.tdv*j<i  the  amount  in  full;  thoffo  below  were  rejected.      The 

^  teuderB   were    from  >It?Hsr».  J,  and  A.  8crimgcour,  ii:21M,(.KJ0 

U-  <k  U^  and  MeesTS.  Linton  and  Clarke,  £^bfm  at  £93.  5«.  to 


CmnmmutJitijJitis, 

To  tJie  Bdit/fT  of  ihs  '*  JUank^rs*  Mcujazinc,* 
PAYMENT  OF  CEOSSED  CHECKS. 

Ihindee,  2Bth  January,  1865, 
**— HtiKiig  for  yearB  admired  the  manner  in  which  all  oomniunica- 
^ 4f«  mAff ereil  in  your  excellent  magazine,  I  take  the  liberty  of  ai»king 
'••ioil  Jbbc»ut  which,  in  Scotland,  thtro  geema  a   great  diversity   of 
"■•'fix*  :— "^  .  1...  .w..  ,r  .  .,..1  i..     r,,   pivrticxdar  bank  rocpiire  to  be 

n»i  bjr  S.1  hat  they  were  endorse*!  by  any 

rbmk  liyv :......  ;.-.,r  ...-v  --  ........;^..' 

'  aiiftvorutg  tho  above,  you  will  much  oblige, 

Your  obcdit^nt  servant, 

A  Bakkbr's  Clbbk. 

mdlnf  to  tb«  rule  ob«eryed,a  cheque  (^oAsed  to  any  particular  bank 
btjttia  ihcoQgU  that  bank.] 


20  . 

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254  Estates  of  Failed  Firms. 


ISSUE  OF  NOTES. 


•   Sir, — I  shall  feel  obliged  by  your  favouring  me  with  your  opinion  on  i 

n  following  in  your  next  number  : — 

1  A  branch  bank,  duly  licensed  to  issue  notes,  has  a  sub-office,  or  agen< 

in  a  neighbouring  village.  Can  the  branch  notes  be  legally  issued  at  i 
agency  without  a  separate  license ;  and  if  not,  what  would  be  the  penal 

4  for  so  doing  I 

J 

-I  [A  separate  license  is  required,  and  the  per  centage  will  be  the  fianie 

^  charged  at  the  branch.] 


GRATUITIES  TO  BANK  CLERKS. 

The  Commercial  Bank  of  Scotland  has,  by  circular  of  2lBt  current^  orden 
payment  of  a  gratuity  of  10  per  cent,  upon  their  salaries,  to  the  differei 
officials  at  the  branches.    Sudi  a  course  is  very  satisfactory. 


We  understand  that  the  directors  of  the  York  City  and  County  Bank  ba\ 
presented  to  each  of  their  officers  and  clerks  a  bonus  of  10  per  cent,  o 
their  salaries  for  the  past  year. 

Messrs.  Bacon,  Cobbold  &  Co.,  of  the  Ipswich  Bank,  at  the  dose  of  tb 
past  year  generously  presented  to  each  of  their  clerks  at  Ipswich  ad 
Woodbridge  the  handsome  gratuity  of  10  per  cent,  on  their  respectiv 
salaries. 


(BBinitB  of  Jailieb  Jfinns. 


THE  ESTATE  OF  MESSRS.   EYLES,  EVANS,  HANDS,  A 

WELLS. 

The  adjourned  meeting  of  the  creditors  of  Messrs.  Eyles,  Evans,  Hands: 
and  Wells  was  held  on  the  29th  December,  and  was  f  oily  attended.  AHe^ 
a  lengthened  discussion  as  to  the  liabilities  and  the  probable  result  of  tb« 
liquidation,  which  was  fully  explained  by  Mr.  White,  the  aooountant,  i^ 
was  unanimously  resolved  to  accept  a  composition  of  11«.  in  the  pound,  »t 
four,  eighty^and  twelve  months. 


THE  ESTATE  OP  MESSRS.  GRUNDLER,  ORMOND,  A  CO. 

The  meeting  of  the  creditors  of  Messrs.  Grundler,  Ormond,  and  Co.,  wbo 
had  recently  failed,  was  held  on  the  31st  December.  The  statemen* /^' 
accounts  was  submitted  and  fully  explained  by  Mr.  F.  M.  Mullaly,  the 


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255 


At  the  oloee  of  the  proceedings  it  was  roBolTed  to  wind  tip 
^erticte  under  a  deed  of  usignmeDt.  A  dividend  of  abont  7s,  in  the 
pand  is  expected  to  be  lealiBedl 


THE  ESTATE  OF  MESSRS.  JOHN  KATHAN  <b  SONS. 

As  idjoonied  meeting  of  the  creditors  of  Mr.  John  Nathan  and  3ir.  LouU 
^obn  Nathan,  trading  aa  Mesesrs.  John  Nathan  and  Bona  was  held  ou  the 
14^  Jannaiy,  when  it  was  agreed  to  accept  a  oomposition  of  6^.  in  the 
yomid,  spread  over  four,  eight,  twelve,  and  eighteen  months,  the  la^t  two 
Wii^^iiJienfai  aemired*  The  house  watt  an  old  establiahed  one,  and  the  present 
•WnfniT'  h^n  principally  arisen  through  lossea  on  consignments.  The 
lities,  according  to  the  statement  of  MeRsrs.  Chatteris  and 
utants,  represent  i!62j900,  and  the  direct  asseU^  i^^i,949, 
•  1 1  Lie  arc  tjtlKir  anaounts  outstanding :  ii:13,il2£  at  Duoediu,  New  Zealand  ; 
£!^180,  balance  of  miscellaneous  oonaignments ;  and  £14,303^  abipments  to 
^M  Con£»ihirate  States.  Of  course  it  ia  probleinatical  what  any  of  these 
win  produce. 


THE  ESTATE  OF  MESSRS.  CIIADRA,  ENCISO,  <k  CO. 

i  iRiTt5o  of  the  creditors  of  Messrs.  Cuadra,  Encisct^  and  Co.,  took  place 
an  tibe  irth  January,  when  a  statement  was  submitted  by  Mr.  Hart,  of 
WsMii  II.  Hart  Brothers  and  Hayles,  showing  dobt«  and  UabUitiee  of 
iEl8yI33p  juid  assets,  including  claim h  upon  La  Industrial  and  Saens  de 
%ntA  MAiia,  £99,800.  An  opinion  was  expressed  that  20i.  in  the  pound 
teT  be  oltimately  realised.  A  resolution  was  passed  to  wind  up  the 
miiilar  inspection. 


THE  ESTATE  OF  MESSES.  REID,  IRVING,  ^  CO. 

T»  folhmng  circular  has  been  issued  by  Mesers.  Reid,  Irving,  and  Co., 
tB  ^oanedion  with  the  liquidation  of  that  estate.  It  will  be  read  with 
istottHlyiiid  ^ows  what  ex L«rti«.'ns  have  bt?en  used  to  effect  this  winding  up, 
whith  00  Uio  whole  must  be  ^.Mtnsidered  to  have  terminated  more  favourably 
tllaii  wm  si  tm&  time  anticipated. 

**  2,  Greshain -place,  Lombard-street,  London, 
31»t  December,  1864. 

•ffir^ — Wttb  reference  to  our  last  circular  of  Ist  October,  1863,  we  have 

BOirt       "  .1    .  -         i      f.i     Burritt  estates,  in  Jamaica,  on  which 

He  111  ili  March  last.     They  were  all  8<:>ld 

fhm  B*ju  '  ji»'  Miivcti*7n  of  the  Court  of  Cominissioners 

I  ^itatcs  in  the  West  IntUes,  but  the  prices  ob- 
!j»ared  with  their  value  at  the  time  when  our 
Tills  result,  though  much  to  be  regretted, 
. .  -^  .auaica  pro[>ertT  has  liecorae  similarly  depre- 
ijot  yet  formally  iecrt^d  the  distribution  of  the 
iu  veatigation  it  ax^P^^i'^  that  the  portion  coming 
r  tho  purchase  of  an  annuity  for  the  life  of 
\;  able  upon  it. 


far  the  Sal 
UiaH  ^ 

CQQII' 


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256 


Estates  of  Failed  Firms. 


^  We  have  reoeived  a  final  remittanoe  from  our  property  and  olaims 
Mauritius,  and  the  liquidation  being  thus  yirtmally  closed,  we  have 
announce  a  final  dividend  of  Sd.  in  the  pound  (making  in  all  \0s.  2( 
which  will  be  payable  on  and  from  the  12th  January  next,  from  eleven  t 
two  o'clock,  Saturdays  excepted. 

'^  That  the  large  mass  of  assets  shown  by  our  statement  in  1^7  shoi 
not  have  produced  more  is  a  cause  of  deep  sorrow  to  us.  To  the  kindn< 
and  forbearance  of  our  creditors  we  are  indebted  for  having  been  able 
persevere  for  seventeen  years  in  the  patient  realisation  of  colonial  p 
perty,  depressed  beyond  precedent  by  Imperial  legislation,  and  to  reap  J 
them  the  fruit  of  its  partial  recovery. 

^  In  this  we  have  been  assisted  to  a  most  important  extent  by  the  p 
severance  and  great  talent  of  our  agent  in  Mauritius,  Mr.  Ourrie,  with< 
which,  it  is  not  too  much  to  say,  we  should  have  had  to  witness  the  ent 
wreck  of  that  asset. 

^  Our  special  thanks  are  due  to  our  inspectors,  Mr.  Baring  and  1 
Blyth,  whose  advice  and  countenance,  together  with  that  of  the  late  1 
MK/hlery,  have  been  most  valuable,  and  have  been  continued  to  us 
such  a  length  of  time. 

'^  The  liquidation  at  home  has  been  conducted  with  admirable  efficiei 
by  our  friend,  Mr.  Ebsworth,  to  whom  we  feel  deeply  indebted  for 
most  important  and  able  assistauce. 

**  We  append  a  siunmary  of  the  accounts  (the  details  of  which  are  o] 
for  examination),  showing  a  small  surplus  for  law  expenses  and  a  i 
other  claims  not  yet  ascertained,  as  well  as  for  the  continued  expense 
the  liquidation,  which  (apart  from  charges  not  incidental  thereto)  h 
not  exceeded  4|  per  cent,  on  the  amount  collected. 

"  We  are.  Sir,  your  obedient  servants, 

"  Rbid,  Irvuio,  akd  Co.' 

Summary  qf  Accounts. 


Proceeds  of  variouf  sugar  estates  and  produce,  with  sandiy  ddbts 

collected  in  Maaridns     

Idem,  West  Indies    


Sundry  bills  receivable  and  claims  recovered,  £86,225.  9#.  Sd. ; 

Produce  realised,  £25,986.  14i.  Id 

Interest  on  exchequer  bills  and  money  at  call        


£275,904    fl 
17,658  ]C 

£293,562  19 


£112,212    a 

4,487  19 

£410,263     1 


DISBUBSEMBRTS. 

Amount  of  dividends  decltred  to  date,  at  9i.  Bd.  in  the  pound, 
including  reserve  for  unclaimed  dindends,  £361,923.  3s.  Id.  \ 
claims  satisfied,  and  debts  under  £20,  £3,661.  Ms.  5fl. ;  al- 
lowance to  partners  to  December  31st,  1850,  £3,750  ;  salaries 
to  clerks,  rent,  taxes,  stamps,  &c.,  £5.756.  lli.  lid.;  law 
and  accountants,  £4.804.  16*.  4d. ;  liquidation  expenses  from 
lit  Januaiy,  1851,  £7,000        


£386.416    9 
£23,846  IS 


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ized  by  Google 


Jter*em9* 


U7 


TicMug  a  dividend  of  Sd>  per  £  opon  the  present  claims  of 
iC'^6,248*  13i.  (»ci.,  rcduiDed  from  the  origiiml  amount  of 
fM^TOr  St3,  3^ .*       

Leavitig  ft  sorplofi  «.»f   , ». 
1\  '                  ll-    '   on   utit,  consUtitigof  alifepolicj  tor  £t,UCK>, 
'  i--    '-.ilue  if     - 

T  cooltngeni  expensoi      


23.208 

5 

6 

fi38 
600 

0 

(1 
0 

£1J38 

«!• 

<i 

THE  ESTATE  OF  MESSRS.  JAMES  LUNHAM  ^  CO. 

Altiie  1  '1   26th  Jauuary  of  the  creditora  of  Jajnes  LunUam 

«adC  ^^eniongers  and  proviaiciu  agents,  who  failed  on  the 

illhf  Willi  iiinniiii's  ii»r  £2«K>,061,  Mr.  Gntinger  in  the  chair,  the  asAets 
vart  sistod  to  repreaent  only  £71,1*73.  According  to  the  representations 
fli  llto  i«oii^"'  ' '  'nploye<i,  thekital  deficiency  upon  three  years'  trading 
aaqumited  t'  '      There  werw  liahilitiea  on   biLlB  to  the  extent  of 

£I9«S^;  W.  ..;.  .  ..  uibtful  debts,  £24,157;  bad  debts  already  urritten  off, 
£i5|6dl>;  ^awiJDipa^  £5,31^2;  andi  brokerage  cliarges,  <tec,,  for  the  three 
Jlviiy  ami>iliaiiiig  to  £41,783.  An  offer  of  fn,  in  the  pound  wa.9  made, 
md  A  CQUHaiitee  of  investi^^\tion  was  proposeiL  A  creditor  was  grejUly 
lW|kiiMid  al  the  large  deticiency  in  the  accounts,  and  the  chainnan 
<S|gUMtfd  an  opinion  that  Mr.  Lttnlmm  ought  to  make  a  better  offer, 
CoiHidi'T: J>!€  <li'^cn«»ion  ensutMl,  and,  in  reply  to  a  creditor,  Mr.  Linklater 
o^Berr^  did  not  know  whether  the  observ^ation  of  t!ie  ciiiiiniiauy 

Hyijl  \jg:  tht?r  hiive  25.  Gd.  in  the  pound  in  bankruptcy  than  7^.  in 

Eitiua,  waei  the  feeling  of  the  meeting,  but  that  lie  coidd  assure 

biULkTUptcy  had   no  terrors  for  Mr,  Lunhani  or  his  family.     No 

pnadVie  advantage  would  be  gaine^i  by  forcing  a  bankruptcy.     Thu  real 

qnn<icnn  lU  i«sue,  in  his  opinion,  was  how  to  realise  for  the  creilitors  the 

^fslatt  sum  from  the  estate  with  as  little  delay  as  fiosaible.     The  chair- 

m»tk  tkmglit  that  there  should  be  a  declaration  of  insolvency  or  an  assign- 

ttwnl;  iiul,   after    some  further  debate,  a  oomndttee  waa  appointed  to 

tirrcili|sto  the  accounts,  with  discrctionnry  jjower  to  xise  or  not  a  declara- 

Htm  oi  UMolvency,  to  be  aignfid  by  Mr.  Jame^  Lunhiuny  aad  pljicod  in  tho 

I  of  the  accountants. 


Btbubjs. 


J- 


/    of  a    thorounh     ^     '  '  nt    sifsiem 

manageT   at    Wolv  >»i    of   tho 

Edward  Bainesi,  Esq.,  ivi  i\     Londou: 


Hi»*»kj\^,  MAE.'<ifj|LL  <i:  Co, 
T  li  for  his  views  on  bajJt  audits.    He  has,  indeed, 

0  of  the  Bankrra^  Magazinti  on  the  subjijct,  and 

*l.    t  '        '  ;  1  '  :in^  to  be  an  aiiiplification  of  what  he  has  be- 

1  Tf  ptvuu  [njiit      If  Mr.  Bcdnes  shall  introduce  tlie  question 


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258 


Changes  in  Banking  and  Mercantile  Firms. 


into  Parliament,  he  will  be  well  fortified  by  the  facts  and  argui 
which  Mr.  Fisher  brings  under  his  consideration.  The  matter 
fihortly  command  attention. 

The  Joint-Stock  Companies^  Directory  for  1865. — ^By  Charles  B;i 
(&  Sons,  Birchin  Lane.  Messrs.  Groombbidgb  k  Sons,  Paten 
Row. 

This  book,  which  is  well  got  up  and  arranged,  supplies  a  want  thi 
been  felt  for  several  years.  No  guide  whatever  has  existed  to  the  v 
companies,  including  Railway,  Assurance,  Banking,  Credit  and  FL 
Shipping,  and  miscellaneous ;  but  separate  volumes  have  from  time  t 
appeared,  giving  in  ordinary  form  the  class  of  information  allud 
Here  we  have  the  matter  brought  altogether  without  the  endless 
with  which  some  of  these  volumes  are  encimibered.  The  type  is  1 
and  readable,  the  arrangement  clear  for  reference,  and  as  a  desk 
must  prove  most  valuable  to  bankers,  merchants,  lawyers,  the  direct 
public  companies,  and  even  professional  promoters.  In  looking  throu 
contents  one  is  struck  with  the  marvellous  number  of  enterprises 
}iave  been  encouraged  during  the  last  two  years,  the  extraordinary  amc 
capital  subscribed,  and  the  great  strides  "  limited  liability"  has  mad 
the  public.  A  good  deal  of  the  money  thus  collected  will  be  saci 
bat  it  is  at  the  same  time  evident  that  joint-stock  association  i 
superseding  the  old  plan  of  private  partnerships ;  where  it  will  s 
i»  difficult  to  imagine,  though  it  seems  quite  certain  that  with  mo 
the  reduced  rate  there  will  still  be  an  increase  of  these  undertakings 
volume  will  consequently  every  year  become  more  useful,  and  if  c 
out  in  the  spirit  with  which  it  has  been  commenced,  it  must  sp 
become  a  standard  work  of  reference. 


CEEANGES  IN  BANKING  AND  MERCANTILE  FIRMS. 

The  following  changes  in  banking  and  mercantile  partnerships  took 
with  the  commencement  of  the  year  : — 

Mr.  Pascoe  Charles  Glyn  has  been  admitted  a  partner  in  the  f 
Messrs.  Glyn,  MiUs,  Currie  and  Co. 

Mr.  Frederick  Drummond  has  joined  the  firm  of  Messrs.  Dnimm< 

Messrs.  Thomson,  Finlay  and  Co.,  of  Liverpool,  join  Messrs.  B 
Hodgson  and  Co.,  of  London.  The  names  remain  unchanged,  bi: 
interest  in  the  two  firms  are  identical. 

Messrs.  Browne,  Van  Santen  and  Co.,  of  Liverpool,  have  opened  bu 
ill  London,  under  the  style  of  Messrs.  Browne,  Van  Santen  and  Gau 

Mr.  Edward  Lazard,  of  Moorgate  Street,  having  obtained  the  req 
assistance  from  his  friends,  has  recommenced  his  business  as  a  f < 
banker,  under  the  style  of  Messrs.  Edward  Lazard  and  Co. 

Messrs.  Backmeister  and  Osten  have  admitted  Mr.  H.  Palmer  I 
who  has  been  for  some  time  entrusted  with  their  procuration 
partner,  and  the  business  is  now  carried  on  under  the  title  of  IM 
BackmelBter,  Osten  and  Stone. 


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Monthltf  Chronology. 


stm 


Menm*  Bieber  and  Go.  hare  announced  that  owing  to  the  death  of  Mr, 
r.  A,  Biel>er,  liia  interest  in  the  finu  has  coa«ed. 

Messrs.  \Vallii«e  Brothers,  of  Atistiu  FriarB,  have  admittetl  Mr,  Richaril 
^all^^c^,  late  of  Messrs.  Wallace  and  Co.,  of  Bombay,  aa  a  partner  In  that 

rm. 

Mr.  Dt^DTiis  Madden  retires  from  the  firm  of  Messrs.  BateH,  Stokes  and 
0.,  of    LiverpTol,  and  Mr.  Henry  Stokes  and  Mr.  Alexander  Miokinlay 
*  i-en  ailniitt^ij  partTjers. 

rs.  W.  T>,  Tomlinaoii  and  Ca,  of  Liverpool,  have  admitteil  aa  a 
.   ;    iu  iL  it   firm,  Mr.  Francis  R.  P.  Tomlinftonj  who  has  for  ftome 
■■-'  -  ^  1: f  i s  :  1 1 !  active  part  in  thti  business. 

''      ri5.    LemoDiuA  and   Co.,  of  Liverxxwi],  have  announced   that   Mr, 
ri  Wallace  having  resMjlvt-Ml  to  withdraw  from  commercial  pni suits, 
I  dins    Kdward   Lemonina   and   Mr.   Caliii  Jolin   Maedonald   have 
'    i  tho  drrn. 

''!►  .-r«^    Ab«?nlieijn  Brothers  have  commenced  business  iub  oommiasion 
r  li   t  r     m  Gresham  Street. 

' '       I    1  Ti    Cookeg,  shipbroker,  in  the  Cape  of  Good  Hope  trade,  has 
lu  business,  and  is  suooeoded  by  his  nephew,  Mr.  John  Browne, 
^ ud  acting  manager. 
timi  of  Middlemist  and  Hammond,  licensed  lightermen  and  cua- 
asr-  riLrrntSy  ib  dissolved;  Mr.  Hfiimiiond  retiring.     Messrs.  Perkins 
Water  Luuc,  have  ajualgamuted  their  business  with  that 
iuist,  which  is  now  carried  kmx  u?ider  the  style  of  Messra. 
rkins  and  Homer,  Ixiwi^r  Thames  Street. 
flip  between  Mr.  Edward  Shnrthoose  and  Mr.  S,  J.  Soott, 
I  ral  meta]  agentfl,  of  Binninghani,  having  been  dissolved, 
will  continue  business  on  the  same  preiiiiHes,  under  the 
S.  J.  S<x>tt  and  Co, 

*  -n  <if  the  old  estate  of  Messrs*  Simpfion  and  Co.  having  beeji 

jud  for,  Messrs.  Simpson  Brothers  and  Co.,  with  the 

.  DOW  carry  on  the  business. 

'  iiu*  r,  i';dmer  and  Co.,  of  Mark  Lane,  announce  the  retirement 

nT  Mr.   Cutler,  and  the  accession,  as  partners^  of  Mr.  John 

Mr.  James  Robert-Min  Turn  bull,  Mr.  Frederick  Frank  Egerton 

Mr.  R.  Gray  Cobham. 

'    Aiu^u  iiivft  retire<l  from  the  firm  of  Messrs.  Nichols,  Allen  and 

joined  Mea.sra.  David  Satow   and  Co.,  of  Idol  Lane.     Mr. 

—  _  .  ii,  L,  P.  Allen  now  carry  on  the  business  of  the  former  us 

t.  Nichola  and  Allen,  by  which  designation  they  were  for  many  years 

ry  Worms,  hafl  been  admitted  a  partner  in  the  firm  of  Messrs. 
Wg«nns. 


MONTHLY  CHRONOLOGY. 

BfioaBibi^  *-*"  *^"  'ision  announced  of  Messrs.  Johan,  Holm  and  Co. 
TfStociihi 

JsnittT)^  *  M-f  of  the  Bank  of  Holland  reduocxl  their  rate 

tfi&icinint  'Ot. 

11 — Bit^.  ..  .  -,  ^x,ii  «ii..d  of  Messrs.  James  Luidiam  dc  Co,  of  the 
Borotigh,  pcDTtsion  merchants,  liabilities  about  £300,CHJ0. 


Digitized  b 


260  Bank  Movements. 

12. — The  directors  of  the  Bank  of  England  redaoed  the  rate  of  disooii 
from  6  to  5}  per  cent. 

14. — Stoppage  of  Messrs.  J.  Scholefield  and  Son,  of  Mosely,  oott< 
spinners,  with  £45,000  liabilities. 

16.— Announcement  of    a  new   Italian    loan  of  £8,000,000    in   a  fi 
per  cent,  stock,  at  the  price  of  £77.  10s. 

, .  16. — Suspension  of  Messrs.  Half  head,  Fletcher  <fe  Co.,  of  Liverpool, 
the  timber  trade. 

16. — Failure  of  Messrs.    Edmund,  Thompson   <fe   Co.,  of   Liverpcn 
Australian  merchants,  with  debts  amounting  to  £60,000. 

17. — Stoppage  of  Mr.  Bennett,  of  the  Oldbury  Iron  Furnaces,  Sou 
St^ordshire,  with  liabilities  extending  to  between  £60,000  and  £70,000 

24. — Suspension  of  Messrs.  Southgate  <fe  Barrett,  of  Fleet  Street,  boo! 
auctioneers. 

24. — Stoppage  of   Messrs.  Eccles,  Cartwright  &  Co.,  of  Liverpool, 
the  cotton  trade.    Liabilities  suppoeusd  to  be  large. 

26. — The  directors  of  the  Bank  of  England  further  reduced  the  rate 
discount  from  5}  to  6  per  cent. 

26. — The  directors  of  the  Bank  of  Holland,  also  further  reduced  the 
rate  from  5  to  4)  per  cent. 


MERCANTILE  SUSPENSIONS. 


Tbs  following  suspensions  have  been  announced  during  the  past  month : 

Messrs.  Johan,  Holm  &  Co.,  Stockholm,  Merchants. 

Messrs.  James  Lunham  <fe  Co.,  South wark.  Provision  Merchants 

Messrs.  J.  Scholefield  &  Co.,  Moseley,  Cotton  Spinners. 

Messrs.  Halfhead,  Fletcher  <fe  Co.,  Liverpool,  Timber  Trade. 

Messrs.  Edmund  Thompson  &  Co.,  Liverpool,  Australian  Trade. 

Mr.  Bennett,  Oldbury,  Iron  Merchant. 

Messrs.  Southgate  &  Barrett,  London,  Book-Auctioneers. 

Messrs.  Eccles,  Cartwright  ii  Co.,  Liverpool,  Cotton  Trade. 


BANKING  OBITUARY. 


Oir  the  21st  January  Mr.  John  James  Cowens,  aged  37,  derk  in  the  Ban] 
of  England. 


BANK  MOVEMENTS. 

Thb  Gloucestershire  Banking  Company  have  opened  a  branch  of  their  esUb' 
lishment  at  Monmoath,  under  the  cnarge  of  Mr.  Henry  R.  Luckes,  their  Bosi 


tri  imager. 


Mr,  A  Thomson,  the  manager  of  the  London  office  of  the  Alliance  Benk,  h« 
tendered  his  resignation ,  having  taken  the  post  of  manager  of  the  Bombay  hrancfl 


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Monetary  Intelligetice. 


261 


f  the  Bank  of  Hindustan,  China  and  Japan,  his  reeignation  having  beeti  nc- 
epted,  Mr.  U.  Miller  and  Mr.  E.  8.  Parkes  have  been  appointed  joro  ttmpore 
cling  managers  of  the  Alliance  Bank. 

The  directors  of  the  Asiatic  Banking  Corporation  propose  to  increase  the 
aid  up  capital  of  the  bank  from  £500,000  to  £1,000,000,  by  an  issue  of  2;j,0r)0 
ew  shares  of  £20  each.  It  is  stated  that  it  has  been  necessary  to  augment  the 
apitiil,  owing  to  the  great  success  of  the  bank  ;  for  although  it  has  only  been  a 
hort  time  in  operation,  the  deposits  already  considerably  exceed  £3,00(^000, 

A  circular  haa  been  addressed  to  the  shareholders  of  the  London  aiul  Vrnp- 
uela  Bank,  showing  the  progress  made.  It  is  stated  that  the  available  oapitn! 
f  the  bank  is  placed  at  the  disposal  of  the  Caracas  directors,  and  is  beinp:  salrly 
raployed  at  a  minimum  rate  of  12  per  cent,  per  annum.  The  want  of  proper 
•anking  facilities  has  been  greatly  felt  in  Venezuela,  both  by  the  connnercial 
nd  agricultural  interests,  and  more  particularly  of  late  in  consequence  of  the 
mmense  annual  increase  in  the  cultivation  of  cotton.  Pending  the  arrange- 
nents  for  commenting  business  in  Caracas,  they  have,  by  prudent  management 
>f  the  small  capital  hitherto  raised,  made  sufficient  profit  to  cover  all  the  cur- 
tnt  expenses  of  the  London  office  to  the  31st  of  December, 


Hlomhrg  IntcIIrigeita. 


l^IONETARY  REVIEW  FOR  THE  MONTH  OF  JANTJAEY^ 

The  prospects  of  the  money-market  have  been  decidedly  more  favoiirablo. 
the  course  of  the  present  month  the  rate  of  discount  has  been  reiluced 
first  from  6  to  5^,  and  then  from  5J  to  5  per  cent.  The  effect  nf  this 
iias  been  satisfactory,  but  it  has  not  created  an  extension  of  speculfitiou. 
An  Italian  loan  has  been  brought  out,  but  it  has  not  proved  ^  succe^Hi,  and 
one  or  two  concipanies  have  followed  which  haVe  secured  their  BnUscrip- 
^if>M.  It,  however,  cannot  be  imagined  at  present  that  there  is  the  wlii^h teat 
PTf«|ject  of  a  general  revival  in  stocks  and  shares.  Business  is  restricted, 
^th  great  dulness  in  the  produce  markets,  which  will  continue  till  tlio 
spring  ig  more  advanced.  An  impression  prevails  in  many  quarters  that 
*'e  shall  have  money  rather  lower,  though  it  is  not  believed  even  4  J  per 
ceflt.  will  lead  to  any  fresh  expansion.  The  lessons  of  the  past  six  months 
*re  not  yet  forgotten,  nor  will  they  be  for  some  sh6rt  period  to  come.  The 
rates  in  Lombard  Street  for  first-class  paper  are  about  4f  to 6  ptr  cent. 
The  bankers  and  brokers  now  allow  4  per  cent,  for  money  at  call ;  4^  for 
seven  days'  notice,  and  4^  per  cent,  for  fourteen  days.  Our  space  is  bo 
fully  occupied  with  the  bank  and  other  reports  that  there  is  scarcely  room 
for  anything  else. 

Consols  have  not  varied  much  this  month ;  foreign  stocks  have  fluctuated, 
but  not  to  any  serious  extent.  The  rise  has  been  in  Turkish  Consolid^s 
ui  consequence  of  rumours  of  a  new  loan.  The  Spanish  fever  hjia  sub- 
sided. 

Railway  shares  appear  strong  on  the  prospects  of  dividends.  Souio  fluc- 
tuations have  taken  place  in  bank  shares  through  the  discussions  at  tlie  raeet- 
iiigR.  The  tendency  is  likely  to  improvement.  Since  the  meetings  of  the 
^nce  companies  have  been  concluded,  the  prices  have  become  weaker. 


VOL.  XXV. 


21 


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262 


THE  GRAIN  TRADE. 

There  has  been  very  little  activity  displayed  in  the  grain  trade  dur 
i]m  past  month.  Wheat  has  only  been  in  retail  demand,  and  the  sam]: 
>iri)ught  to  market  have  generally  been  in  good  condition,  whilst  the  3 
plies  from  abroad  have  been  equal  to  the  demand,  consequently  prices 
liot  show  any  considerable  improvement.  Barley  has  been  in  fair  dema 
and  the  value  has  been  well  supported.  For  other  descriptions  of  gr 
there  has  been  only  a  moderate  inquiry,  and  without  any  material  alt€ 
tion  in  prices.  The  latest  official  average  quotations  were  : — ^Wheat 
qr.,  383.  lOd, ;  barley,  28«.  dd. ;  and  oats.,  19s.  Id.  per  qr. 
The  Gazetto  returns  for  England  and  Wales  have  been  : — 

CorrespoiK 

Week  Wheat.  Weekly  SixWeel 

ending,  Qrs.  sold.  Average.  Duty.  Last  Ye« 

1861,  «.    d.  t.     d.  ». 

Dec.     24  99,355  ...  37  10  ...  1    0  ...  39 

„       31  89,022  ...  37  10  ...  10  ...  40 

1865. 

Jim.        7  63,806  ...  38  2  ...  10  ...  39 

„       14  80,286  ...  38  7  ...  10  ...  40 

„      21  78,214  ...  38  10  ...  10  ...  40 

The  importations  since  the  harvest  of  1864  have  been  : — 

Wheat.          Other  Grain.  Total. 

Cwts.                  Cwt«.  Cwts. 

TweAty-two  weeks  ended  17th  Deo....       9,144,129  11,091,324  20,235,^ 

Five  weeks  ended  21st  Jan.      ...     ...         776,760    1,833,694  2,610,^ 

9,920,889  12,925,018  22,845,5 
And  the  weekly  averages  have  been : — 

Twenty-two  weeks  ended  17th  Dec.   ...       415,000  504,000  919,( 

Five  weeks  ended  2l8t  Jan 155,000  367,000  522,( 

260,000       137,000         397,C 


STATE  OF  TRADE. 


The  state  of  trade  is.  rather  better  in  some  localities,  but  at  present  t 
sympathies  of  general  revival  are  rather  remote. 


NOTICES  TO  CORRESPONDEirrS. 

We  hare  aorranged  in  f\itare  to  issae  a  doable  number  in  February  and  August,  instead 
formerly  in  May  and  November.  This  has  been  rendered  necessary  by  the  great  increase 
thi!  meetings  of  t^e  Banks  and  Discount  Companies,  which  will  be  always  careMly  oolled 
)u  the  pages  of  the  £a»Jt0r«'  Magaicine.  We  shall  also  give  the  proceedings  of  the  varic 
f  n  ilit  and  Finance  Companies  as  they  are  more  or  less  associated  with  banking,  so  that  0 
p<  I  h^i  Tibers  and  readers  can  refer  to  them  without  difficulty.  Correspondents  will  please  fi 
s\  11,1  communications  addressed  to  the  Editor,  No.  8,  Birchin  Lane;  subscriptions  a 
^  L  m  as  usual  to  Messrs.  Groombridsre  and  Sons,  Paternoster  Bow,  or  Messrs.  Waterb 
ail  ions,  Carpenters'  Hall,  London  Wall. 

ijAiTKiifQ  AND  FuTAirciAL  Aksodotbs. — It  will  be  perceived  firom  notice  elsewhere,  that  t 
K  I  it<)r  of  the  Banken'  Magarine  is  collecting  and  arranging  a  series  of  Bsmking  and  Fins 
tiJ  Anecdotes.    Any  contributions  from  subscribers  and  readers  of  the  Ma^ftueint  will  1 
th  mkftillv  received,  particularly  if  the  sufcgect-matter  shall  not  have  previously  appeared 
print,    Nothing  personal  or  ofransive  will  reodye  publicly. 


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2m 


BANK  OF  FRANCE. 

1>EBTOR. 


I>eeem1*erfd. 

J«]iiiM7  6» 

.;.       ^i_     iJ, 

Janaazy  19, 

January  S6« 

9.              C» 

is3,soa,ooo  0 

Ifl2,fi00,000    0 

iaa.6ab,ooo  S' 

T.               0. 

183,500,000    0 

^«3.91S    § 

«,&i3,017  76 

6.068,626    i 

6,»74,128  91 

e,9&7,l4i  49 

Si,lQ6,TS0  X4 

22,105,730  11 

23,105,750  14 

t%\m,79fi  14 

3S,10a,7W  U 

•adifl|iff£ 

780,530.636    0 

806,335,076    0 

617,443,37$    0 

4,000,000    0 
60d,383,eS6    0 

«0    o«a«r 

Nip^^te 

7,427,fi»6    1 

£,4S0,4tS  SS 

7,S2S,a7a    t 

5,463,364  77 

6.606,403  93 

3  rnlsd^ 

i4,zaa,so6  75 

l.W,7«?.iri6  <M 
30.7<>»,[i75    0 
HJ,J6a,il«5  7S 

iJl  ,374,473  U 

33,3«fl,705    0 
a,071,<U5  76 

MM  23,402  60  ' 

25.l6rtO,7WO    0 
6,1*6,666  75 

8J).flOi,463  8rt 

UO.(Hkl.716  37 

22.4fi^,283    0 

4,4i7,S5«  76 

7».afti  «7 

3,060.879  n 

S,M0,<K}5  13 

a.183,041  3» 

8,610,678  SO 

i>,7U3,W.7  S7  1 

2,78».*H    S 
17.801^.123  23 

16,1>6!*,1H)6  ©§ 

2,7S9,4M    6 
1       12,431,737  73 

Ml    „ 

l,'3i>i,o72,m  1« 

i,a«&.'>w,:w»  ;{7 

1.288. 8fi«,Bl»  m 

1,2^1.477.410  40 

CBKDITOR. 


^ii£*^ 


fifiift  ^  US7| 


Dee6i»b«r3i, 


F.  0, 

flffi$l,9(]d,767  16 

a»1,aS6  60 

303,Svt9.(W6  33 
9».3I7.(ld6    0 

16,676,«tl  62 
4,065,164    0 

IS,07tt,flOO    0 
7,031 ,3dO    0 

art,741,dn0    0 
17,250,650    0 

634,M«}    (» 
<^K64^}    0 

«D,flOO,COO    0 

13,IW0.TSO  14 
""18,787  ei 


lOO^QOO^OOO    <T 

i,^«[|,eotf  0 

«,7»6    6 


Jftooaiy  5. 


9,  C. 

S3i),07l.W3  14 

1/16^04^63 

32)9,ci6,3f;3  as 
3at)»sta,ay?  o 

l£v«^41,431  66 
l^&KI^OM    0 

15.300,300    0 
§,47'J,1£0    0 

27,3^1,300    0 
17»863,800    0 

.M'.oHO    0 

eo.WJrt.OQO    0 

86.606,737  01 
100,000,000    Q 


6,380,003    0 

6,«»7  76 
«l,969,723  31 

1.43i),6n,4S7  li 


Jamuuy  13,        JuniiAjy  19.        Jaauaay  30, 


314,771,003  40 

796,710  20 

944,031,316  7B 
0 


14,7«,43fl  B8 
4,6n«010    0 

16,0n,tA)O    0 
0,400,160    0 

SB,4B3,10O    0 

ia,ioi,i6o  0 

641,200    0 
402,450    O 

60,000,000    0 

12.(HW,7G0  14 
36,6t»6,737  01 

100,000,000    0 


8,38S,e91    0 

30,13^  CO 
3,00d,6iH  70 


1,306,9^339  37 


318,170,0114  41 

1,041,343  Oi 

339,620,810  73 
SS0^OBS,fiMt    0 

14,846.431  6S 
4i:f04,610    0 

14,001,100    0 
»^i»34.6ilO    0 

:i8,344.BO0    0 
18,U«,0B0    0 

624.5Aa    0 
3MI,750    Q 

60,000,000    0 

I3,1ld0,76rt  14 
3O.fl0«,737  01 

100,000,000    0 

0,330,142    0 

S0,8B1  U 
3.040,804  44 


1,200.^66,010  86 


»*        0. 

333,110,477  73 

3,«»>,8n7  13 

336,911,704  33 
310,007.463    0 

ILOP^KOSL  66 
4,081.310    0 

14.7^1,600    0 
tt.375,900    0 

as.  107,600    0 
IS,3 16,060    0 

621,900    0 
866.060    0 

60,000,000    0 

13,D80,7fiO  14 
3«,«tVKf,737  91 

100,000.000    0 


a.397/iia  0 

44,730  70 
6.&»&,0£(6    S 

,^1,477,410  40 


Digitized  by  VjOOQ IC 


264 

FLUCTUATIONS  IN  ENGLISH  AND  FOREIGN  STOCKE 
RAILWAY  SHARES. 


Fric«  oo 

High»t. 

LowwW 

J 

ElfaLISH  FlIKDS. 

Comok           ; 

Bn  to  fxd 

m 

89i 

1 

Ezchex^uer  Billi 

p&rtoSpm 

5  pm 

par 

P< 

FoMioK  Stocks. 

Brnzilian 

lOOi 

lOOi 

99| 

Buenos  Ayrea             

— 

95 

94 

Chilian            

*— 

lOU 

1001 

Dutcb  2}  per  cents 

— 

641 

63f 

Mexican           

,       291 

29i 

^* 

Peruvian  4 J  per  cenU, 

— 

85i 

80| 

KuBsian            • 

_« 

911 

88| 

Spanish            

m 

49f 

48 

TurkiBh  6  per  ceBts, 

8£>J 

901 

S8i 

Ditto  4  per  c^ntfi. 

1001 

1011 

1001 

EAII.WAY  Shabby. 

Brighton 

1051 

1091 

105 

Caledonian      

1331 

^^ 

181 

Great  Ka^tem 

48 

481 

47 

Groat  Northern          

1351 

1371 

134 

Great  Western 

80 

81| 

791 

Lancashire  andYnrksliire     ,.. 

117 

1171 

116 

London  and  I^orth  Weatem,.. 

121} 

122} 

1211 

Midland          ...         

141 

141i 

138 

North  Staffordshire 

80 

80| 

79 

South  Eastern             

851 

871 

851 

South  Western            

98J 

99 

971 

York,  Newcastle,  and  B^^rwick 

1151 

1151 

1131 

York  and  North  Midland    ... 

lOBi 
104| 

106 

103i 

East  Indian >• 

107 

'     1001 

Northern  of  Franoe 

■ — 

411 

40 

__ 

CREDIT,  FINANCE  AND  DISCOUNT  COMPAN: 


ftad  Fia&uce  (Lim,)  So 

Con»olidatedDUcount(T^h:n;j  60 

Contract  CnaTporaUQii  (Llm.)  100 
Credit  Foiicier  of  ilauritioB 

(Limited)      W       10 

Credit  Pcroder  ood  Hol^iller 

of  England SO 

JJiMo          w 

Disoouat  Coqwrttlon  (liin.}  100 

Eut  lailiA  Fiiunciat          ...  90 
Egyptiiui  OommerciA]   and 

iWitng ;.  » 

KnglUh  and  Fortri^  Cnnllt  60 

Financial  Corporfttion  loO 

FiiiADciaiDiis4X>unt(lini.)...  £0 
Central  Crodii  and  Finance 

of  lx>ndon  (lim.)  .,,        ...  tS 
iQtemationjil           PUutfieisl 

ftoeieij  (Lun.)        W 

Imperial     and     MercacHle 

CnsdU  (lira.}          **«        ...  K) 


10 


2 
17* 

71 

4 

e 
U 

10 


H 
9 
M 

H 
H 

14 

H 

H 

a 
M 
1 


i        6i 


Intaiwdcaial  Ocnatract 
loterckatiotial  Land  Credit  .., 
JoiBi  BBDok  DiMonnt  (Lim,) 
Laaid  Credit  of  Ireland 
Land  8«onrLtiea 
Loodcm   Pinftneial  JaiooLa- 

tioti  (I*ira,>   ...        

Ditto.  New 
London  MercantiJe  Dwcooni 
Maoritiaft  Land^  Credit  and 

Agencj  (Lim.) 
National  Diacount  Co.  ( Urn.} 
National  Finaadal  (Lim.)  ... 
Oriental  Flnanoial     -- 
Otioman  Finazidal  Aasoctft- 

tlon  (Um.)    .  . 
BodM  rinanciaire  d'Kgypla 

{Um.y.,        

South  AlHovn  Mortgage  and 


m 

M 

to 
fiu 
fiO 

M 
9> 

iO 
«0 

80 


265 


JOrNT^STOCK  BANKS. 


London    Bonk  of  Sootlfllid 
(Lira.)  , 

LotuionaDd  Bnudliui  Bank 

London,  BinDineliUQ  1  SUi. 
StetfbrdAhire  (Lftnitod)  ... 

London,  Buenos  Arr«s  mnd 
Biver  Plmte,  Limited 
IXlto,    Nevr,    iivned    M 

London  Charfierad  of  Auitraiia 
Lotiiloa  arifl  C<j an ty  Bonk:  ,,. 
I^r,  Cont. 

y 

Un.  ,ni-    ... 

1': 
Uw 
Lou 

Londob  0X1(1  Ventzuela  (Lim. ) 


Met. 


,t  Wi 


•  l.utik 


'•1  I'TovuiauI 


I^imitod) 


Nftiioiml  4>I  Liverpool  (Urn*) 
NAtionn}  Prgvin<;iAl  B&Tik  of 

EuuliLTill 

1' 


100 
100 

100 

too 

2S 

ao 

60 
100 

24} 

ItJi 
60 
1«U 

/'I 

100 

lUO 
JOO 

60 

60 
100 

11)0 
SO 
30 
20 


-irpOTft' 


ed  at  S)0  pm. 
.Joking    OoTpo- 


On 
D 

Prr.v. 

Prunncml  Bank  of  Ireliuid... 

fHtto,  Now 
Srfnde,  I^icjaub  azul  DolLi 
(Limited)      

Ltxo,) 
w...... .,, ^ntiftb  AiHc* 

tLtmitodji       ,.. 

Pitto  ditto 

Da.  New,  liwucxl  (it  8  pm, 
Union  llMTik  orAiu^Uikli*  ... 
l^niuti  Bivnk  of  IMf»ud«  Llm. 
Vrnou  BOkUk  of  Li>ndQU 


10 
10 


10 

» 
u 

25 

100 

loo 
i<:« 

llK) 
60 


18 

40 

SI 
40 

30 

20 


40 
1« 
iO 

n 

u 

7W 


I«  10 

16  60i 

!S0 

20  214 


to 


10 
20 

ao 

3U 

1(1 

i3 
13 
13 

ao 


6 
16 
10 

10 

s 

u 

10 

26 

10 
£6 
28 

16 


2l» 


^1     ^k 

hi 

10 


19 

8 
1» 

17i 


4a«d 


6        lit| 

26        67 
2« 


31 

66 


•MUd 
HI 

£6 
86 


5Z\ 


mQjmbt^ 


22 


Digiti;- 


Bank  of  ^nglanlv  WitthU)  IfUtumd. 

Aocoant.  parsuuit  to  the  Act  7th  and  8th  of  Victoria,  cap.  32,  for  the  Weeks  ending  aa  foil 

ISSUE  DEPARTMENT. 


Doo.  28, 

1H05. 
Jad,  4. 

Jan.  11. 

It^. 

Jan.  IS. 

Notes  issued        

£ 
38,036,475 

27,9d'3(,70tJ 

£ 
2a,0o8.4B0 

£ 

^,0<H,e76 

a 

Govemment  debentoree         

Other  securitiea 

Gold  coin  and  bollion 

Silver  bullion      

11,015,100 
a,«34.9ttO 
13,3d6,47A 

.    11,016,100 

3,«3i,900 

'    13,31  s,7eo 

ll.mrj.nxj 
i:i,ki8,«io 

11,OU,100 

1 

] 

a{s,iXW,47r) 

1    'i7,9HHjm 

'^/^fi,4flO 

2H,0G1,67G 

J 

BANKING  DEPARTMENT. 


IBM. 
Dec,  38. 

Jan.  4.          Jhji.  Ih 

1865. 
Jan,  Id. 

Proprietors*  capital       

Rest 

Public   deposits   (including  Exehequer, 

SurinRB  Banks,  Commiaaionen  of  National 

Debt,  and  Dividend  Accoonta) 

Other  Deposits     

Seven  day  and  other  bills      

X' 
14.553,0**1 
a,;*50,85t 

13,a*0.»41 
437,450  ! 

£ 
lKfi5a,rtOO 
3,»S4,«>it5 
8,6a>,3e9 

n.«74,977 
4fll,g7S 

£ 

14.&S3.000  1 
3,422.791 
4,445,535 

lfl,l74,iee 
630,403 

£ 
14.569,000 
3,480,033 

4,1(W,814 

14,«58,01B 
613,148 

1 

3ft.!WO,07a 

40,M4,1M 

3fl,l26,»Wi 

37,399,900 

Government    Securities    (including 

Dead  Weieht  Annuities)      

Other  Securities 

Notes          

Gold  and  Silver  coin     

10,SS4,543 

lB,7Sfl>ll 

8,fl0334» 

714,40© 

11,034,997  \    11 .089,211 

31,711,6^7       1»,K*7,080 

7,4S3,4aO         7,fi76,206 

014.832  ;          6»8,9CX) 

11.0S9,fll 

7,350,975 
76e,65S 

39,969,072 

40,8M,166 

89,126.986 

37,399,800 

THE  EXCHANGES. 


Amsterdam,  short 
Ditto  3  months 
Rotterdam,  ditto... 
Antwerp,  ditto  ... 
Brussels,  ditto  ... 
Hamburg,  ditto   ... 

Paris,  short  

Paris,  3  months  ... 
Marseilles,  ditto  ... 
Frankfort,  ditto  ... 
Vienna,  ditto 

Trieeto,  ditto 

Petersburgh,  ditto 
Madrid,  ditto       ... 

Cadiz,  ditto  

Leghorn,  ditto     ... 

Genoa,  ditto 

Naples,  ditto 

Palermo,  ditto  ... 
Messina,  ditto 

Liabon 

Oporto 


Foreign  Gold  in  Ban  (Standard) 

Mexican  Dollars 

Silver  in  Bars  rstandard) 


Dec.  30. 


11 
11 
11 

26    60 
26    60 


16 

18{ 


71 
20 


26    62^ 
26    62i 


Jan.  6. 


in 


Jan.  13. 


PerOs. 
£  s.  d. 

3  17  9 
0  0  0 
0    0    0 


PerOs. 
£  s.  d. 
3  17  9 
0  0  0 
0    0    0 


11 
11 
11 
26 
26 
13 
25 
26 
26 


119} 

11  80 

11  80 

80 

401 

26  ~ 

26 

26 

26 

26 

26 


61* 
6li 


PRICKS  OP  BinJJON. 


PerOs. 
£  s.  d. 
3  17  9 
0  0  0 
0    0    0 


Digitized  by  LjOOQ  IC 


PerOs. 
£  s.  d. 
S  17  9 
0  0  0 
0    0   0 


Wlttkl^  Cirriilation  JSeturns* 

■  8  Victoria^  e.  32/  extracted  from  the  London  Gazettk, 
PRIVATE    BANKS. 


Author- 
ized 
Issue. 


£ 

11,849 
48,461 

37,223 
17,182 
34,218 
27,090 

23,695 
75,069 
15,161 
10,028 
48.277 
26,717 
29,657 
82,362 
43,457 
55,»53 
36,829 
38,816 
68,271 
33,794 
12,745 
3,201 

25,744 
49,916 

33,671 
23,597 

3,436 
25,082 
48,704 
49,869 
12,045 
21,527 
77,154 

9,387 
13,332 
41.304 
27,237 
20,674 
10,657 

77,400 
86,218 
10,664 
48,807 
112,28c 
53,392 
69,637 
37,^94 
14,202 
6,681 
6,322 
14,524 
30,37 
19,979 
56,5^1 

5.77^ 
38,764 
21,90 


AVERAGE  AMOUNT. 


Dec.  17.     Dec.  24.      Dec.  31.      Jan.  7 


£ 

11,220 
22,002 
17,804 

3,672 
26, 100 
13>441 
21,014 
66,4f8 
15,024 

6,044 
20,346 

i4.i^55 
20,043 
46,942 

25,435 
22,928 
34,185 
25*635 
49,275 
20,436 

10,456 
2,872 
13,985 
44,570 
28,112 
15,713 
2,151 
14,618 

25,525 
27,223 
5,091 
13.938 
69,024 

6,415 

8,187 
34,  241 
25,973 

5,667 
10,602 
56,428 
76,114 

6.557 
33,720 

84,033 
47,184 

33,395 

17,810 

6,148 

4, 830 

4,365 

10,239 

22,962 

15,914 

32,95« 

4,  600 

32,547 
16, 768 


£ 
11,365 
11,565 
18,076 

3,655 
26,389 

13,249 
20, 212 
66,182 
14,380 
6,102 
21, 102 

!5,349 
19.051 
47,726 

24,695 
21,511 

33,579 
26,060 

47,542 
20, 804 
10,107 

2,829 
14,803 
43,380 
28,400 
16,059 

2,745 
i5,»99 
26,345 
27,722 

4,794 
13,533 
66,685 

5,907 

8,427 
32,220 
25,950 

5,874 
10,074 
53,507 
78,521 

6,830 
33,576 
81,636 
47,000 

32,905 
17,690 

5,856 
5.030 

10,101 

23,663 
16,635 
32,570 
4,807 
33,092 
16,750 


£ 

10,833 

22,1C8 

i8,';98 

3,382 
27.422 
12,904 
20,728 
64,476 
14.407 

6,4^5 
21,288 
14,591 
17,784 
47,936 
24, ceo 
19,825 
33,231 
25,645 
45,821 
22,485 
10,511 

2,841 
14,1^7 
4^,575 
27,9»6 
16,402 

2,9»5 
16,752 
27,140 
28,526 

5,098 
13,808 

66,405 

5,859 

8,844 

32,069 

28,029 

5,958 

9,838 

52,025 

79,148 

7,280 

^4.124 

82,900 

48,239 

34,011 

18,810 

5,726 

5, 160 

4,696 

iO,6<;o 

2^,938 

17,904 

31,247 

4,941 

33,097 

17,377 


£ 

11,454 

22, ^8i 
19,203 
3,745 
29,0^7 
13.594 
20,415 
65, 160 

15,129 

5,9^0 

22,228 

i5,»'5 
16,123 

50,524 
24,639 
16.893 
33,940 
26,304 
47,063 
23,313 
11,404 
3,263 

13,227 
4«,470 
29,768 
15,835 

2,917 
16,936 
29,555 
29,770 

5,20i 

14,825 

66,341 

5,875 

9,822 
31,884 
28,249 

6,325 
10,274 
54,997 
86,294 

6,918 
35,019 
84,326 

5«,2i4 

36,615 

20,124 

6,091 

5,763 

4.940 

10,541 

24,424 

19.766 

33,361 

5,453 

33.»»7 

19.281 


Digitized  by  VjOOQIC 


268 


WEEKLY    RETUIiN»    Of    BAKRt    OF    ISSUE- 


NAME  OF  BANK, 


AnthoT- 


58  IpBwich  &  NcedbaTD  Markel  BADk 

59  Keiiush  BiiTtk— Mercer  k  Co. 
6c  iCiujjfi'Jii  tnu\  Usui  in>rsh  ire  Bank 

61  ICiiareslwrouj^fli  Uld  Bank  

da  KetidtiJ  BHtik    .... . »,. 

6^  iiOiijftf>ii  Siutl'orilfiUire  Batjk  ... 

64  Le«;iU  Blink  ^.,..,. 

6^  LeeiU  Union  Bank 

66  Leict.Hur  Bank.* , 

67  Lewqa  Olil  Bank  , 

6d  Lincoln  Bank   

69  Uiitnli»vory  Bank  &  LUndilo Bank 

70  Lon^hboruiijLtli  Bunk    

71  Lyminj^ton  Bunk 

9  z  hynn\  ieyr  i  m  a  n  d  Li  n  co  I  n  sli  ire  Bank 
7j  Lynn  Regis  nnd  Norfolk  Bank 

74  Mucclesfield  Bank   ,...,,*....... 

75  Manningtree  Bank    , , 

76  Merionethshire  Biink 

77  Miners*  Bank „*.. 

78  Monmouthshire  A gri cultural  and 

Commerriiil  Bunk ..♦.. 

JO  MonraonUi  Old  Bank  ........... 

80  Newark  Bank ...*«.. 

81  Newark  and  Slofttord  Bank   .. 
8*  Ncwbnry  Bank... 

85  Newmiirket  Bank 

84  Norwich  Crown  Bank  and  Norfolk 

and  SulTolk  Btmk  ........... 

8<  Normch  and  Norfolk  Bank    .. 

86  Nottinghaui  &  Nottini^hamsli.Bk. 

87  Naval  Bank,  Plymonth 

115  NewSarnm  Bk.^ — PinckDcjB^Bro*. 

89  Nottingham  Bank    .„, 

90  Oswestry  Bank     .,., 

91  Oxford  Old  Bank., 

9a  GUI  Brtnk,  Tonbridge  ....,,.- 

93  Oxfordshire  Witney  Batik 

94  Pease's  Old  B^nk,  Hull  

95  Penxancc  Bank , 

96  Pembrokesliiro  Bank   , 

97  Heading  I'lmk — Sfmonds  &,Co,... 

98  Eeaiiing  Bk. — Stephen «,  Bland j A. C^ 

99  Rtdiraond  Bank,  Yorkjahir©    

100  Hochrlale  Bank ...,, 

lot   Kojfiton  Bank  ...,..••••••••• ., 

101  Rngby  Bank ,. 

103  Ryo  Bank. 

104  Saffron  Waldcn  &  Nor thEsa  ex  Bk, 

105  Salop  Bank  .......* 

106  Scarborough  Old  Bank    ., 

107  Shrewsbury  Old  Bank , 

108  Sittinffhijurnc  find  Milton  Bank,, 

109  Southamplon  Town  &  County  Bk 
no  Soothwell  Bank   ..... 

1 1 1  Southampton  and  Hampshire  Bk. 

iia  StafFord  Old  Bank 

1151  Stumford  an*i  Rutland  Bank  ...,- 
114  Shrewsbury  and  Welsh  Fool  Bank 

I  If  Taunton  Bank ., 

ti6  Taviato*!k  Bank 


X 
80,699 

56,050 

iit8i5 
44,66j 

53.357 
57.459 
3i.3ii 
44,836 
100^541 

3^t945 

7.359 

5.05S 

4*.S « 7 

13.917 

15*7^0 

7,691 

1 0,906 

18,688 

i6,^«^ 
28,78s 

36.7«7 
13,098 

49.<57i 
105,519 
io,K66 
37.31 
"5.659 
31.047 
1 8,4  7 1 
34i39t 
13.183 
11,8^1 
48,807 

« ii4«55 
12,910 

37.519 

43*2" 

6,889 

J^393 
17,250 
19,864 
47.646 
21.338 
14,813 
43.1 9> 
4,7^9 
18,589 

U.744 

6,770 
14,166 

31,858 

15»33^ 
19,799 

13,421 


AVKHAGB  AMOUNT. 


Bae.  17.  '  Dec,  SI.    1  l>c.  31. 


£ 

50.131 
16,194 

1 1  i  490 

19,596 

39,103 

5i  303 

5* J  761 

35»547 

17.585 

15-540 

64,ti6 

1 7. 4*6 

7.313 

ii755 

19*045 

12,241 

JO, 827 
5.3'o 
8,146 

18. 3^5 

15,115 

3.919 
23,005 

43.130 
ii,5H 

16.214 

5' .710 

72,158 

7.39^^ 

11*613  ; 
7.064  1 

*4.373  ' 
10.574  [ 

3».863  ! 

tO,6i?2    I 

8,86l  I 
43.980  , 

9.473  I 
11,188  jl 

13.410  ! 

*3»859 
5.573 
1,2*4 

9.4SS 

8.715 

11,261 

21,700 
iO,373 
20,830 

35i3i4 

3.353 
9.050 

8.755 

1.914 

fi.137 

17.001 

20,465 

10,704 

8.  HI 


£ 

49.<5t5 
15.065 
20,587 
19,838 
39*94^ 

5,112 

51.387 
34,660 
25,8(9 
15*573 
82,185 

16,749 
7.1*8 

2,871 
29,182 

12, 19s 
1I1059 

9i759 
i8»Oi6 

26,^90 

3/585 
11,570 

41.951 
K.754 
iSpBoj 

49.930 

74i5»« 

6,771 

7,365 
11,969 
10,170 
32,050 
10^846 

8.730 

♦a.6«5 

9,410 

It, 401 

21,  ICO 

13*370 
51845 
1.449 
9,660 

8.844 

11.437 

ai.487 

9.855 

»o,747 

35.451 

3.4=6 

8,913 

8,449 

1.955 

11,714 

l'«,474 

It.  158 

10,154 

8,0)0 

Digitized 


<4,5i' 

^9,415 

19,679 

39*330 

5,090 

51,812 

34,455 

*5.849 

15,615 

8J.134 

14.954 

7,164 

1, 805 

18,399 
12,426 
11,626 

5  •380 

«,38i 

17,547 

i7,o8t 

3.15* 
10,785 


I5t< 
ISJ 

20,1 

39i^ 
4»\ 
55, 
33.] 

i   M 
3c,< 

5fj 

7J 

16J 

18,1 

3*1 
111 


42,070     45»! 


11.940 
15.748 


47.777     j*tl 
77.604  ,  80, 


84 
15.1 

7tl 
'3it 

9*1 

it  A 

H 

'•! 

«4,i 

5f- 


6.  761 
11.433 

11.955 

9.810 
32, III 
10, 661 

8,7?i 
43,870 

9,138 
11,416 
23,180 
H,37i 

5,593 

1,435 

9,161  I 

8.744 
11,140 
11,7*4 
10,546 
11,154 
34, '93 

3,15* 

9,177 

8.43» 

a.481 
13.180 
i6,2'>5 
10,4^1  . 

10,466  *;^ 


9n 

B,f 

11,1 

11,1 

hi 
III 

8,? 
h4 

17.8 


by 


Joogk 


.T    RETURNS   Of    BANKS    OP     ISSUE. 


269 


re  Bank... 
ing  Bank., 
am  Bank.. 


shire  Bank 
erset  ... 


kAltonBk 

^shire  Bk. 
shire  Bank 


k  W.  Fryer 
Bank... 
Suffolk  Bk. 


Author- 
ised 
Issue. 

AVERAGE  AMOUNT. 

Dec.  17. 

Dec.  24. 

Dec.  31. 

1    Jan.  7. 

£ 

£ 

£ 

£ 

£ 

10,026 

7,555 

7,327 

7,080 

6,930 

i3»470 

10,067 

10,512 

10,346 

10,583 

",559 

... 

11,446 

10,892 

11,921 

»3,53» 

11,690 

1 1 , 640 

11,601 

12,366 

10,801 

5,171 

5.083 

5,282 

5,505 

17,003 

16, 610 

16,040 

16,375 

16,658 

»5.U6 

8,134 

8,411 

8.034 

8,040 

17.064 

5-598 

5.556 

5,685 

5,735 

30,504 

16,607 

17,337 

16,982 

17,826 

6,528 

a, 271 

2,331 

2,35' 

2,444 

46,158 

36,196 

36,241 

36,665 

37,498 

*4»i58 

13,935 

14,086 

14,282 

14,360 

25,89^ 

11,261 

10,958 

n,oi6 

... 

16,461 

15,555 

15,660 

«5,362 

16,402 

37,602 

33,779 

34,087 

35.074 

35.738 

59,713 

38,477 

37,407 

36.505 

37,001 

7,602 

3,871 

4,201 

4,292 

4,205 

87,448 

51,606 

50,571 

50.179 

51,643 

11,867 

10,358 

10,407 

10,550 

10,034 

53»o6o 

37,982 

40,956 

41,607 

4'. 571 

13,2^9 

9,085 

15,100 

14,200 

12,344 

46,387 

37,554 

37,374 

37,43> 

37,887 

INT  STOCK  BANKS. 


)any    

pany    

1;  Company 

nnking  Co. 
affordshire 

sh  Bk.  Co. 
kin^  Co.. 
lire  Bk.  Co. 
5  Company 
ankin^:  Co. 
^ankingCo. 
!t  Bank 
Ich  Bk.Co. 
ankingCo. 
ock  Bk.Co. 
r  Company 

ik 

yompany... 

nking  Co... 
Union  Bk. 
any  .. 
iro  Bk.  Co. 
ipany  .... 
Company, 
inking  Co.. 
Warwick 

ank 

Us.  Bank.. 
JankingCo. 
of  England 
k>iDpany 


12,225 

9,918 

9,926 

9, '53 

9,563 

8,26j 

7,965 

8,126 

49,292 

47,596 

47, 200 

47,724 

9,418 

9,486 

9,566 

9,273 

32,681 

26,564 

26,188 

26,557 

20,084 

18,929 

19,476 

19,110 

60,701 

45,282 

43,773 

45,883 

10,42) 

8,430 

8,254 

8,440 

35,395 

29,268 

... 

31,132 

2^734 

14,264 

I4,5»3 

14,671 

16,251 

12,564 

'2,554 

11,924 

•44,352 

94,6f4 

91,042 

91,004 

25,61c 

21,745 

24, '44 

24,075 

19,972 

19,172 

'9.944 

'9,565 

37,696 

29,328 

29,273 

29,691 

20,095 

19,505 

'8,334 

18,326 

26,134 

22,389 

21,777 

20,731 

•55.92c 

132,369 

132,122 

128,634 

18,534 

>7,oc5 

16,840 

16,943 

37,354 

3i,7<-i 

31,655 

30,652 

29,333 

27,065 

28,013 

28,112 

»3,733 

9,387 

9,553 

10,743 

44.137 

29,460 

28.988 

30,475 

1,503 

1,490 

1,485 

1,506 

28,059 

25,111 

24,529 

24.939 

64,311 

50,534 

49,685 

49,>99 

86,060 

55,242 

53,039 

54, '63 

51,620 

46,435 

45.617 

43,975 

13,875 

10,007 

9,720 

9,410 

10,21 « 

8,990 

8,293 

8,077 

35,813 

25,009 

25,199 

... 

29,477 

24,392 

23,730 

23,083 

442,371 

409,706 

407.639 

399.700 

63,939 

1 

40.126 

38,727 

37,798 

9,249 

8,505 

47,663 

8,795 
27,554 
19,980 

49,003 
8,610 
32,160 
14,761 
'3,547 
100,414 

24,039 
20,095 
30,212 
18,304 
^o,3?o 
131.576 
•6,507 
31,062 
31,120 
11,561 
33, '32 
1,480 

24,994 
5', 549 
55,260 
45,810 

10,498 

7,830 

27,228 

25,940 
407,961 

37,178 


Digked  by  Google 


270 


fTElKLY    E£TUIII4S   OF    BAXKS   Of     ISaiTl. 


NAME  OF  BANK, 


35  North  am  ptousbiro  Union  Bank   ,.. 

36  Northamptonshire  Banking  Co.  ... 

37  North  and  South  Waies  Bank , 

38  Fare's  Letcetttershire  Banking  Co„, 

39  Saddleworth  Banking  Compaoy  „, 

40  Sheffield  Banking  Company....,,**, 

4 1  Stamford  .Spalding  &;Bostoi'i  Bk  ,Co , 

42  StnckeyV  Banking  Company    ...... 

4 J  Shropshire  Banking  Conipany,..*.. 

44  Stourbridge  and  Kidderminster  BL 

45  Shefiield  and  H&llamshlre  Bank  ... 

46  Sheffield  &  Rotherh  am  Jt,  Stock  Bk, 

47  Swaledale  and  Wensleydale  Bank. 

48  Wolverhampton  &  Staffordfih.  Bk,. 

49  Wakefield  and  Barnsley  Union  Bk. 

50  Whitehaven  Joint  Stock  Bank     ... 
5?   Warwick  and  Leamington  Bk.  Co. 

52  WefitofEng.&  S.Wales  District  Bk. 

53  Wilts  &  Dorset  Banking  Cornjmny 

54  West  Biding  Union  Banking  Co.,,. 

55  Whitchurch  and  EUesmcre  Bk.  Co. 
%6  Worcester  City  and  County  Bk.  Co. 

57  York  Union  Banking  Company  ... 

58  York  City  and  County  Banking  Co. 

59  Yorkshire  Banking  Company  ...... 


Author- 
ized   ; 


£ 

84i35^^ 
2  6,40 1 

*3.95i 
59i300 
8,112 
3S1843 
55.7^1 
'35^,97^' 
47i95i 
56.830 

5if496 
54t37i 
35.37S 
14,604 

3^91^^ 
37,Ji4 
8j,5i5| 
76,161 

34.^^9! 
7*475 

6,HB 
71,14c 

94»^95 
«i*,53' 


AVERAGE  AMOU?< 


Dec.  17.     Dec,  34.      Dec.  31 


£ 

19,083 
57,704 

3»»579 

46*1^5 

.^86,650 

4t>|Oi5 

53i34* 
21,952 
4S,9H 
50,110 

*9ii74 

20,324 
^5.5^54 
76,343 
65.180 
30,921 
4i539 
5i355 
70 , 048 

! 14, 731 


59*012 
t9»oo5 

5«i935 
50,299 

335 
35*a4<^ 
44,013 
18^,248 
40,607 
50,192 

13t2tl 

4*-8|J 

48.51^ 

29ii8* 

13,676 

19*6^8 

25 » 705 

74.391 

65,612 

3*i3o8 

4*SH 

5»^3«5 

70,660 

84,368 

iiJtHi 


£ 

56,491 

1 6 ,  1 1€ 

54,  519 
50,61*^ 

335 
36»S2J 

288,'i47 
3&,8oS 
49,546 
13*307 
50,101 

47*598 
19,808 
i4»oy7 

20»42S 

-4i59i 
73.498 

67,35c 

31,066 

5,090 

5.»4^ 

70,503 

S4.941 

"1-354 


iri&h  aiia  ^mttli  Cimilation  3Seturn0* 

Average  Cireuiutioiti  and  C&in  held  btf  tht  Irish  a ju/ Scotch  Bjlfks  ditth 
wet  Mm  ending  Stiitirda^,  fhe  7  th  day  0/  January,  1865. 

IRISH    BANKS. 


tf  A  U  K  nw    VLAKK 

CireuJ  411.00. 

A t«TAi(e  Circuit tnm  duriDB  ¥Q%t  fficltt 

Mi  and 
ttpWArdi. 

UDitt  Mi.     \         Taul. 

Bank  of  Ireland 

£ 
3p73«,4^S 

^b  1,6  II 

-43 .  440| 
311,079 

852,  2i^J9l 

», 371. 915 
378,5*9 
106,283 

Ss,9iS 
153,060 
552,ijfi 

£ 

1.053,575 
48416^7 

307,  t^7^ 
262,612 
3iSr308 
585,149 

1,426,500 
863,196 
414,155 
346,530 
471,368 

I,M7,277 

Provincial  Bank  of  Ireland 
Belfast  Bank    ..., 

Northern  Bank  „.,., 

Ulster  Bank. 

The  National  Hnnk... 

T0TAI.A  Clrtfih  Batiks)   ... 

6,354,49+ 

4.643,383 

S.oiif 143 

5,661,026     3 

SCOTCH    BANKS. 


Bank  of  Scotland    .......*,,., 

Royal  Bank  of  Scotland  ... 
British  Linen  (Company  .,.*. 
CoTnmcrcial  Bk.  of  Scotland 
National  iSnnk  of  Scotland.. 
Union  Bank  of  Scotland  ... 
Aberdeen  Town  and  Co .  Bk, 
North  of  Scotland  Bk.  Co... 
Clydcsdnle  Banking  Co.   ... 

City  of  Giasgovv  Bank  

Caledonian  Banking  Co.  ... 

Central  bank  of  Scotland**, 

ToTALd (Scotch  Banks)... 


300,485 
216,451 
438>o24 
374,88c, 
197,014' 
454,34^5 
70,133 
154,319 
274,311, 

7*i9^i! 

53.434 

_4i^9^3 

»»749.^7il 


162,^061 
J**  7. 773 
174,436 
181,98? 

157. 9^' 
191,766 

59*736 
96,^65  ' 
135,918  I 
iii,^Ei  I 
11,862 
10,981 


Ji9»364 
341.43.^ 
3"ii7ii 
368,7x7 
301,964 
393,382 
*'3,7io 
1 14,656 

336,471 

i 35. 9^8 

';4,6oi 

37,738 


1,514,900  U, 810,688 

Digitized  by  LjOOQIC 


48 1 , 4  26 

519, S06 
496, 149 
55it7»5 
46o.fia5 
5^6,148 

143,44* 
II 1 , 511 
37ii40J 

357, 5^' 
76,463 
58,719 

4i3aSr59i 


CIRCULATION    RETURNS. 
EEKLY  RETURNS   OP  BANKS   OP  ISSUE. 


271 


Fixed  I«8ne». 

£4,212,786 

3,2*6,357 


Dec.  17.      I     Dec.  24. 

£2,945,080  £2,932,002 

2,690,739      2,673,174 


7,439,143 
these  Banks  for 

...  £2,959,367 
.-    2,737,440 


5,635.8 » 9 


Dec.  31.    I       Jan.  7. 

^£2,933.482   £3,026,903 

2,857,266  j    2,728,581 


5,605,176 


5,790,748  I    5,755,484 


ivate 
ig  as 

...  £5,696,807 
with  the  Rettima 
last,  it  shows : — 
ivata 

...  £99,174 
}tock 

16,703 


£115,S77 


And   as   compared  with  the  month   ending 
January  9th,  1864,  it  shows  :— 
A  decreane   in  the  notes  of   Private 

Banks,  of £166,177 

A  detrreane  in  the  notes  of  Joint-Stock 

Banks,  of 91,687 


Total  decrease,  as  compared  with  the 

same  period  of  last  year        £247,864 

The  following  is  the  comparative  state  of  the 

circulation  as  regards  the  fixed  iiiaues : — 

The    Private    Banks   are  beloto  their 
fixed  issues         £1,253,419 

The  Joint-Stock  Banks  are  below  their 
fixed  issues         488,917 

Total  BSLOW  their  fixed  issues       ...  £1,742,33« 


H  &  SCOTCH  RETURNS  TO  JANUARY  7,  1865. 


f  the  Irish  and 
ks  ending  Jan. 
he  followinj?  as 
of  these  Banks 

anks  £5.661,026 
Banks  4,325,591 


banks 

£9,986,617 


rith  the  Ketuma 
Bt,  they  Bhow— 
1  Banki>£2 11,679 
chBank8301.206 


The  fixed  issues  of  the  Irish  and  Scotch  Banks 
at  the  present  time  are  given  in  the  Banking 
Almanac,  as  follows  : — 

6  Banks  in  Ireland,  allowed  to  issue...  £6,364,494 
12  Banksin  Scotland,  allowed  to  issue      2,749,271 

18  Banksin  all,  allowed  to  issne   £9,103,765 

The  following  appears,  therefore,  to  be  the 
comparative  stiite  of  the  circulation : — 
Irish  Banks  are  below  their  fixed  issue     £693,468 
Scotch  Banks  are  above  their  fixed  issue  1,676,320 

Total  above  the  fixed  issue  £882,862 

The  amounts  of  Gold  and  Silver  held  at  the 
head  offices  of  the  several  banks,  during  the  past 
month,  have  been  as  follows : — 
Gold  and  Silver  held  by  the  Irish  Banks  £2,216,413 
Goldaud  Silver  held  bytheScotchBanks  2,378,119 

Total  of  Gold  and  Silver  Coin £4,59-4,532 

Being  an  increase  of  £35,636  on  the  part  of  the 
Irish  Banks,  and  a  decrease  of  £135,086  on  the 

Eart  of  the  Scotch  Banks,  on  the  several  amounts 
eld  by  them  during  the  preceding  month. 

[•HE  UNITED  KINGDOM  TO  JANUARY  7,  1865. 

r  the  Note  Circulation  of  the  United  Kingdom  for  the  month  ending 

th  ending  7th  January,  as  compared  with  the  previous  month  :- 

i[  Jan.  4) 


£612,884 

month  ending 

1  Banks     £3,114 
ch  Banks  24,  HK) 

, £21,Oi6 


Dec.  10. 

£19,806.137 
3,058,641 
2,764,143 

Jan.  7. 
£19,321,117 
2.959,367 
2,737,440 

Increase. 

Decrease. 
'tS5,020 
99,174 
16,703 

25,618,821 
4,626,796 
6,872,706 

26,01 7,92-* 
4,325,691 
6,661,026 

- 

600.897 
301,206 
211,679 

£36,118,322 

£36,004,641 

— 

£1,113,781 

ith  ending  Jim.  9th,  1864,  with  the  month  ending  Jan.  7th,  1866, 
f  Enirland  circulation  of  £754,286,  a  decrtate  in  Private  Banks  01 
tock  Banks  of  £91 .687 ;  being  a  total  decrease  in  England  of  £1 ,002, 1 50  .- 
increiue  of  £24,160;  and  in  Ireland  a  decrease  of  £3,114.  Thus 
rth  Jan,,  as  compared  with  the  same  period  last  year,  presents  a 
I,  and  a  decrease  of  £981.104  in  the  United  Kingdom. 
le  Bank  of  England,  for  the  month  ending  Jan.  4th,  gives  an 
tments  of  £14,116,269.  On  a  comparison  of  this  with  the  Return  for 
re  appears  to  be  an  imcreate  of  £162,7-^;  and  an  increase  of  £3,284 
)d  last  year. 

the  Banks  in  Scotland  and  Ireland  during  the  month  ending  7t]l 
tcrease  of  £99,461  as  compared  with  the  Return  of  the  previous  monttat 
npared  with  (he  corresponding  period  last  year. 


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MERS'  IIAGAZINE, 

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MARCH,    1865. 


.OSOPHY  OF  BUSINESS  SUCCESS. 

;  a  complex  general  notion,  because  of  the 

li  are  involved,  and  because  business  expe- 

trious  examples  of  accumulation.     A  com-  *  ^ 

m  of  business  success  would  be,  that  the 

3  of  trading  form  a  satisfactory  fund.  Ven- 

e  with  good  and  some  with  bad  results  ;  and     ' 

ccessful  men  still  pursue  business  and  the 

\  have  relinquished  it  have  been  gainers ;  i 

svho  have  relinquished  it  being  gainers  to 

desires,  and  the  successful  men  who  still 
ig  gainers  to  an  extent  short  of  their  incli- 
Lction  between  pursuing  and  relinquishing 
is  the  case  that  the  great  majority  of  the 

venturing  to  the  end,  and  figuratively 
ness. 

plexity  is  owing  to  the  mutations  of  human 
of  business  men,  like  generations  of  other 
lot  simultaneous  ;  the  young  are  constantly 
aiddle  aged,  and  the   latter  as  constantly  f 

nong  those  of  maturer  years.     Generaliza- 

fault ;  business  furnishing  the  continuous 
the  kaleidoscope.  The  corner  house  is  to-day 
nee  office;  to-morrow  it  is  a  club  or  cham-  ! 

it  is  an  establishment  in  the  boot  and  shoe 
ade.    This  year  we  recognise  new  faces  on  ^ 

treet ;  and  new  names  in  the  ledger  and  on. 

Note  them  and  watch  them  with  the  per-  js 

otection  agent,  and  their  interrogation  will 

23  r 


Digiti 


iz0d  by  Google 


274 


The  Philosophy  of  Business  Success. 


make  no  sensible  addition  to  our  general  knowledge.  1 
names  on  the  doorways  are  in  time  blotted  out,  and  t 
names  in  the  ledger  pass  into  forgetfulness  when  th( 
comes  to  be  fully  written  up.  What  becomes  of  the 
and  creditors  of  the  bank,  and  whether  the  insurance  of 
in  a  good  or  bad  condition  when  it  was  wound  up  or 
into  another,  none  perhaps  can  clearly  answer.  How  t 
or  chambers  were  established  or  broken  up  is  never  like 
known.  And  of  the  success  of  the  great  establishmen 
boot  and  shoe  or  other  trade,  the  banker,  or  the  bant 
there  are  often  two— may  be  doubtful.  The  mutations 
ness  life  almost  baffle  inquiry. 

Passing  by  for  a  moment  the  phenomena  of  mutat 
us  turn  to  their  reverse  :  to  that  which  time  has  stamp 
permanency.  Where,  for  example,  is  that  weather-bei 
stitution  the  Bank  of  England  f  It  is  a  business  su 
every  meaning  of  the  term.  Some  will  attribute  i 
fortune  to  one  cause  or  to  one  set  of  causes  ;  others  wi 
and  advance  their  own  theories.  Discarding  differen 
great  majority  will  affirm  that  the  Bank  of  England  \x 
ness  success  by  virtue  of  its  age.  Where,  again,  are  tl 
Exchange  and  Lloyds  ?  They  are  not  of  yesterday,  n 
looked  for  from  street  to  street  or  from  town  to  town 
are  known  of  all  men  the  wide  world  over.  Some,  one 
will  attribute  their  good  fortune  to  one  cause  or  to  on 
causes,  and  others  wiU  dissent.  Wherein  most  will  a 
that  they  have  succeeded,  and  that  of  their  success  th 
continuance  is  the  proof.  But  the  proof  is  incomplete. 
the  stateliest  oak  may  be  decayed  at  heart,  so  also  ma] 
oldest  corporate  body,  unless  vitality  appears  in  all  its 
With  that  correction  the  proof  is  perfect.  Age  in  bu 
a  mark  of  success  so  long  as  no  symptoms  of  decay  ar 
fest.  As  a  matter  of  fact,  the  Bank  ot  England  is  in  po 
of  a  satisfactory  fund,  the  slow  growth  of  years,  which  1 
husbanded  with  anxious  care,  and  which  would  be  jeo] 
were  folly  to  take  the  place  of  wisdom  in  the  directioi 
Bank  afi^s.  As  a  matter  of  fact,  the  Stock  Exchar 
Lloyds  are  prosperous  and  without  any  considerable  accu 
fund;  such  accmnulation  being  foreign  to  the  intentioi 
corporations.  Both  are  successful  by  reason  of  their 
and  the  discretion  with  which  they  are  managed. 

B^tuming  to  the  phenomena  ot  mutations  their  chara 
is  transientnesa.  For  example,  the  antecedents  of  the  A 
petroleum  or  shoddy  interest  relate  not  to  business,  bu 


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>f  those  concerned,  and  for  tliat  reason  they 
th  interests  may  nevertheless  accumulate  a 
Krealth — may  become  enormously  enriched, 
uld  be  different  in  kind  from  that  attained 
n  corporations  to  which  reference  has  been 
aoe  would  be  that  whereas  the  success  of  the 
denoe,  that  of  the  former,  from  its  accidental 
res  distrust.  Who  is  ignorant  of  the  proverb 
id  whose  experience  does  not  point  to  verifica- 
is  scarcely  to  admit  of  being  niimbered.    The 

which  becomes  rich  by  one  accident  or  by  a 
idents  are  in  danger  of  becoming  poor  by 

by  another  eombiuation  of  accidents.  *'  In 
Lce  shalt  thou  eat  breads"  Bays  the  «acred 
h  accumulated  by  the  protracted  labour  of 
iformly  the  most  abiding.     One  of  the  surest 

the  transient  class,  whether  as  r  corporation 
avoidance  <rf  what  the  long-established  never 
dents  should  take  the  place  of  personal  ante- 
,  in  reality,  being  of  no  value — for  there  is 
hieh  to  rear  the  structure  of  business  suc- 

foreign  to  the  subject  it  might  be  shown  ' 
L  of  debtor  and  creditor  there  may  be  even 
ability  on  the  part  of  the  creditor  than  of 

of  the  former  failing  to  distinguish  between 
eoeivers  to  whom  merchandise  is  parted  with 
pinners,  and  towards  beginners,  there  is  too 
n  personal  antecedents  and  too  little  depen- 
intecedents. 

[?ess  has  been  said  to  consist  in  the  satisfac- 
[K)urse  of  trading ;  and  the  cases  of  the  two 
111  men  have  to  be  considered — those  who 
the  end,  and  those  who  relinqtiish  it. 
T  of  business  success  as  consisting  in  the 
Bs  of  a  course  of  trading,  several  interesting 
are  presented  for  investigation.     First  of  all 

or  ventures,  so  that,  in  a  certain  sense,  all 
jtyled  adventurers.     The  manufacturer  must 

nis  goods,  the  importer  a  buyer;  and  if 
;ained  readily,  there  are  the  alternatives  of 
ice,  or  a  full  market  price  from  a  doubtful 
of  the  success  of  men  of  business  is  to  be 
ous  cash  realizations  when  realizations  were 
srence  to  doubtful  credit  sales ;  and  much  of 


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The  Philosophy  of  Btmneas  Success. 


the  non-success  to  the  adoption  of  the  other  coarse.  Se 
as  there  must  be  risks  or  ventures,  there  should  be  a 
perception  of  the  principle  on  which  success  depends, 
impressions  will  not  do^  because  the  spendthrift  is  a 
deluding  himself  with  the  belief  that  another  straw  will  nc 
much  to  the  camePs  burden.  The  man  also  who  keeps  no  i 
of  his  money  outgoings  is  pretty  sure  to  come  to  troubl 
con^-iction  of  being  within  the  mark  invariably  proving 
mistaken.  The  averages  of  business  should  be  always  kep 
doubtfully  but  positively  in  view,  and  on  the  whole  it  is 
tionable  whether  the  course  of  training  at  school  and  i 
counting-house  or  sbopis  the  best  that  might  be  impar 
commercial  youth.  The  extraordinary  number  of  bu 
failures  is,  to  say  the  least,  a  serious  imputation  on  the  ( 
of  training.  In  the  third  place,  although  some  men  of  bu 
are  bom  rich,  and  others  have  riches  tluiist  upon  them,  th 
little  doubt  that  as  there  is  one  sure  road  to  failure  so  th 
also  one  sure  road  to  fortime.  We  shall  not  attempt  an 
meration  of  the  maxims  which  have  guided  the  conduct  ai 
operations  of  the  most  successful  men  of  business.  Th( 
meration  (if  it  were  effected)  would  be  useftd  and  confer  < 
the  greatest  possible  benefits  on  the  commerce  of  the  coun 
That  while  some  successful  men  of  business  never  gi 
and  others  do,  is  a  matter  of  education  and  human  n 
They  who  have  the  faculty  of  withdrawing  their  thoughts 
the  serious  occupation  of  their  lives,  and  have  a  taste  ft 
creation  out  of  doors,  or  for  reading  at  their  firesides,  are  a 
certain  to  become  satiated  in  the  accumulation  of  the  w 
goods.  They,  on  the  other  hand,  without  that  faculty, 
only  to  be  withdrawn  from  the  office,  the  warehouse,  o 
shop,  to  bring  their  days  to  an  early  close.  And  need 
added  that  accumulation  becomes  a  passion  with  some 
Thev  will  toil  early  and  late  to  be  esteemed  wealthy  and 
wealthy,  although  to  the  last  the  well-founded  apprehc 
may  have  haunted  them,  that  as  soon  as  their  breath  is  ox 
that  they  possess  will  pass  into  improper  hands- 


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i. 

C  OUTLINES  OF  AMERICAN  FINANCE.  ji 

No.  xni.  !' 

I*, 

B  crisis  of  affairs  the  several  states  manifested  [" 

Massachusetts,  Connecticut,  New  York,  Dcla-  ll 

Indiana,  and  Missouri,  condemned  the  doctrines  [\ 

South  Carolina,  as  destructive  of -the  Constitu-  "! 

'arolina  and  Alabama  censured  the  ordinance,  i^; 

the  tariff  unconstitutional  and  unwise.  Georgia  '■ 

ebellious  policy  pursued,  but  opposed  the  tariff'  it 

erms,  and  proposed  a  convention  of  the  states  •' 

th  Carolina,  South  Carolina,  Georgia,  Alabama,  |1 

Mississippi,  to  consider  how  relief  might  be  \] 

le  protective  system.      The  legislature  of  Yir-  \[ 

to  refer  the  whole  question  to  a  committee  on  • 

in  which  the  general  powers  of  government  L 

5sed,  and,  at  the  same  time,  earnestly  requested  I  \ 

not  to  take  any  further  action  under  the  ordi-  :  i 

convention  or  do  any  act  calculated  to  disturb  i 

;y.      The  state  of  ]New  Hampshire  abstained  I 
any  opinion  on  the  South  Carolina  doctrines, 
e  passed  resolutions  in  favour  of  reducing  the 
aue  standard,     ilassachusetts,  Vermont,  Ithodo 
sey,  and  Pennsylvania    opposed  any  alteration 

arolina   convention  had   promised  to   remain  | 

i  1st  January,  1833,  in  other  words  to  continue  i 

isive  attitude  till  that  date.     In  the  mean  time  j 

irced  the  revenue  laws,  no  attempt  being  made  I' 

)art  of  the  ordinance  which  prohibited  the  pay-  » 

Congress  assembled  on  the  2nd  December,  ^ 

members,  divided  in  opinion,  hesitated  what 

South  Carolina  temporized  and  the  southeni  ' 

m  amicable  accommodation.  President  Jackson 
loyalty  and  patriotism  of  the  South,  though 
•ed  to  repel  force  by  force  and  rigourously  to 
of  Congress.     Amidst  these  difficulties  a  con-  f 

I  in  the  person  of  Mr.  Clay,  a  highly  distin-  ? 

and  a  chief  supporter  of  American  manufactures, 
nodification  of  the  tariff,  which  both  Houses  \ 

3  President  ratified.      The  new  law  gradually  j^ 

ort  duties,  enacting  that  where  these  exceeded 


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20  per  cent,  one  tenth  part  of  the  excess  should  be  doducte* 
and  after  the  30th  December,  1833,  and  one  tenth  more  in 
alternate  year  until  the  Ist  December,  1841,  when  one  hd 
the  residue  was  to  be  deducted;  and  after  the  30th  Jime^  1 
the  duties  on  all  goods  were  to  be  reduced  to  20  per  cent* 
home  valuation  and  were  to  be  paid  in  cash.  Mr*  ('alhoun. 
principal  statesman  of  South  Carolina,  approTed  this  plan,  vr 
was  carried  in  the  Senate  by  29  ta  16  votes,  and  in  the  H 
of  Representatives  by  119  to  85.  The  amended  Tariff 
received  the  presidential  signature  on  the  2nd  Marchj  18^^ 
Within  a  few  days  after  this  settlement  oi  the  dispute,  S 
Carolina  repealed  the  ordinance  passed  by  its  con%  ention, 
to  vindicate  its  r^ht  of  protest  and  resistance,  it  retaine 
its  statute  book  the  law  by  which  it  had  armed  its  Tnflitia  ; 
it  even  had  the  hardihood  to  pass  another  ordiname  whicl 
ceived  the  name  of  the  "  Nullification  Ordinance/'  becac 
pretended  to  nullify  an  act  of  Congress,  called  the  "  Force  B 
which  had  empowered  the  President  to  use  force,  if  neces; 
to  collect  the  Custom  dues  for  the  benefit  of  the  federal 
Bury.  This  pretension  of  South  Carolina  was  clearly  an  a 
rebellion,  for  if  any  single  state  could  annul  an  act  oj 
Federal  legislature,  the  Union  would  have  been  a  rope  of  s 
However,  this  insolently  defiant  measure  was  favourei 
winked  at  by  the  party  who  styled  themselves  &dvoeat< 
"States  Bights/'^  and  the  more  violent  nullifiers  hailed 
Clay^s  compromise  as  the  triumph  of  their  party.  The 
tectionists,  aware  that  the  free-traders  would  ha\  c  a  de( 
majority  in  the  next  Congress,  congratulated  theiriBelves 
the  question  had  been  settled  before  the  enemies  of  the  m 
facturera  had  been  strengthened  in  the  legislature  ;  but  1 
was  still  a  third  party,  not  numerous,  but  enlightened 
patriotic,  who  strongly  reprobated  any  concession  to  the 
mand  of  a  single  state,  thieatening  secession.  Tliis  unhi 
dispute  shook  faith  in  the  permanent  stability  of  the  Fei 
tion ;  it  was  too  clear  that  the  central  government  had  g 
way  to  clamour  and  betrayed  its  weakness.  States  rights 
come  into  direct  collision  with  Union  rights,  and  an  adjusti 
foimded  on  a  compromise  showed  that  the  courage  of  Con{ 
was  not  equal  to  the  firmness  of  the  President. 

^  The  administration  of  General  Jackson  is  also  memorabl 
his  bitter  hostilility  to  the  Bank  of  the  United  States,  anr 
ruinous  consequences  that  resulted.  In  his  first  annual  ad( 
to  Congress,  8th  December,  1829,  he  admitted  that  the  cod 
of  the  managers  of  the  bank  had  been  judicious,  but,  ih 


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I  guarded,  it  was  evident  to  his  more  intimate 
B  was  unfriendly  to  the  institution  in  its  exist- 
spressed  himself  in  these  terms : — 
of  the  Bank  of  the  United  States  expii'es  in 
ckholders  will  most  probably  apply  for  a  re- 
iTileges.  In  order  to  avoid  the  evils  resulting 
y  in  a  measure  involving  such  important  prin-  ,J 

teep  pecuniary  interests,  I  feel  that  I  cannot,  f^ 

parties  interested,  too  soon  present  it  to  the  I 

oration  of  the  legislature  and  the  people.     But  I 

lity  and  expediency  of  the  law  creating  this  *' 

questioned   by  a  large  portion  of   our  fellow  !« 

must  be  admitted  to  have  failed  in  the  great  'i« 

ag  a  uniform  and  sound  currency.'*  "' 

e  it  was  also  intimated  that  when  the  public  i, 

y  liquidated,  it  might  be  proper  to  divide  all  ' . 

ong  the  several  states  of  the  Union,  according  * 

presentation.     What  more  alluring  bait  could  J"^ 

at  to  the  voters  in  the  several  states  by  a  can*  i' 

uffrages  at  a  second  presidential  election  ?  The 
red  to  the  financial  committee  whose  report  was  * 

ews  of  the  President.  ; 

•resident  recommended  Congress  to  inquire  into 
f  discontinuing  the  bank  on  the  expiry  of  its  | 

jtituting  in  its  place  a  bank  based  on  the  public  ;i 

hout  the  power  of  making  loans  or  purchasing 
le  same  session  Mr.  Benton  submitted  a  motion 
verse  to  the  renewal  of  the  charter,  which  was  '' 

20  votes,  and  this  division  was  a  sign  of  coUi- 
legislature  and  the  executive,  for  the  hostility 
to  the  bank  was  but  thinly  disguised.     In  his  ' 

be  observed  that  the  institution,  owing  to  its  \ 

dangerous  to  liberty,  of  which  many  citizens  . 

vinced,  and  he  thought  it  would  be  wise  to 
t  would  not  be  possible  to  secure  the  advantages  i 

iresent  bank,  through  the  agency  of  a  Bank  of  ' 

3  so  modifi.ed  in  its  principles  and  structure  as 
tutional  and  other  objections,  on  which  thereon 
le  following  terms : — 

it  possible  to  organise  such  a  bank,  with  the 
\y  as  a  branch,  of  the  treasury  department,  based 
dividual  deposits,  without  power  to  make  loans 
property,  which  shall  remit  the  funds  of  the 
id  tiie  expense  of  which  may  be  paid,  if  thought 


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280  Historic  Outlines  of  American  Finance. 

advisable,  b^  allowing  its  officers  to  sell  bills  of  excba 
private  individuals  at  a  moderate  premium.  Not  being  a 
rate  body,  having  no  stockholders,  debt,  or  property,  ai 
few  officers,  it  would  not  be  obnoxious  to  constitutional 
tions  which  are  urged  against  the  present  bank ;  and  ha\ 
means  to  operate  on  the  hopes,  fears,  or  interests  of  large 
of  the  communitv,  it  would  be  shorn  of  the  influence 
makes  that  bank  formidable.  The  states  would  be  streng 
by  having  in  their  own  hands  the  means  of  furnishing  tl 
paper  currency  through  their  own  banks,  while  the  Bank 
United  States,  though  issuing  no  paper,  would  check  the 
of  the  states  banks  by  taking  their  notes  as  deposits  f 
exchange  only  so  long  as  they  continue  to  be  redeemec 
specie." 

This  was  a  very  plain  intimation  that  the  independen 
agement  of  the  bank  as  a  distinct  institution  was  to 
government  officials  being  substituted  for  bank  directon 
as  the  President  would  nominate  those  officials,  all  ei 
control  would  be  transferred  to  his  hands. 

In  his  third  annual  message,  6th  December,  1831,  G 
Jackson  congratulated  Congress  on  the  abounding  and  ai 
ing  prosperity  of  the  country,  but  he  no  longer  attribute 
merit  to  the  bank.  He  took  all  the  credit  to  himself, 
surplus  of  revenue  over  expenditure  was  even  greater  t 
former  years,  and  the  exulting  President  expressed  his 
that  the  whole  public  debt  might  be  extinguished,  either 
demption  or  purchase,  within  the  four  years  of  his  admi 
tion,  when  .Ajnerica  would  exhibit  the  unexampled  spects 
a  great  nation  abounding  in  all  the  means  of  happine 
security  altogether  free  from  debt.  He  repeated  for  the 
time  his  objections  to  the  bank,  but  the  directors  now  a 
for  a  renewal  of  the  charter.  Such  was  the  perverseness 
opposition  that  it  was  contended  the  application  was  pren: 
though  during  two  years  the  President  had  alluded  to  th 
ject  m  his  messages,  and  in  terms  well  calculated  to  p 
directors  on  their  guard.  The  application  was  brought 
the  Senate,  who  referred  it  to  a  select  committee.  The 
mittee  reported  in  favour  of  the  renewal  of  the  chart 
fifteen  years,  with  some  modifications.  In  the  House  of  I 
sentatives  there  were  two  reports  ;  the  majority  of  the  ca 
tee  there  appointed  were  hostile,  but  there  was  a  respe 
minority  in  mvour  of  renewal.  Finally,  on  bills  being  pres 
in  both  houses,  the  bank  triumphed  m  the  Senate  by  28 
votes ;  and  in  the  Assembly  of  Representatives  jby  107 


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3tors  of  the  bank  had  offered  to  pay  govern-  ] 

Jars  for  the  extension  of  their  privileges,  by  *' 

of  200,000  dollars  each.  It 
ify  and  continue  the  Act  entitled  "  An  Act 

iubscribers  to  the  Bank  of  the  United  States'*  > 

r  Congress,  was  presented  to  the  President  n 

i  signature  on  the  18th  July,  1832.     He  re«  ij 

d  we  propose  to  condense  the  substance  of  ! 

y  stating  his  con\'iction  that  a  Bank  of  the 
►erly  constituted,  would  prove  beneficial,  but  !■ 

le  of  the  powers  and  privileges  of  the  exist-  -j, 

ithorized  by  the  Constitution,  subversive  of  ;. 

tates,  and  dangerous  to  the  liberties  of  tlic  „• 

)ed  the  monopoly  of  favour  and  support  it  ^ 

;ing  almost  to  a  monopoly  of  foreign  and  \ 

Those  powers  and  privileges,  he  said,  were  * 

is  to  the  stockholders.     The  extension  of  tlie  i 

term  of  fifteen  years,  as  asked  for,  would  1 

nt.  to  the  value  oi  the  stock,  of  which  eight  , 

5  held  by  foreigners,  who  always  took  their 
and  might  draw  away  their  capital  when 

serious  embarrassment  of  the  trading  com-  ' 

Fackson  dwelt  strongly  on  these  points.     He  i 

hc^  1st  January,  1832,  of  the  twenty-eight  ' 

stock  in  the  corporation,  8,045,000  were  held  *' 

bi  he  declared  dangerous  to  public  liberty, 

of  war,  while  the  concentration  of  largo 
ds    of    a  comparatively   small  number    of  i^ 

•cely  less  dangerous  in  time  of  peace.     IIow- 
0  be  a  bank  of  private  stockholders,  all  its  i' 

)e  subjects  of  the  United  States  to  give  some  t 

lliness  to  the  constitution.     To  the  objection  . 

)  advocated  the  renewal  of  the  charter,  that  " 

he  bank  would  be  compelled  at  once  to  call 
inwillingly  cause  immense  commercial  dis-  V 

iss,  the  President  assured  that  ample  time 
jlose  all  accounts.  * 

enewal  of  the  charter  on  any  terms.     "  One  * 

"  in  1791  decided  in  favour  of  a  bank  ;  in  i 

led  against  it.     One  Congress  in  1815  de-  j 

ik ;  another,  in  1816,  established  a  bank."  t. 

mtradictory  views  was  urged  against  a  deci-  \ 

e  Court,  which  had  ruled  that  the  bank  was  \ 


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Blshric  Outlines  cf  American  Finance. 


a  constitiitional  institation^  for  General  Jackscii  aorgued  t! 
one  Congress  could  found  a  bank^  every  other  Congress  h 
equal  ri^ht ;  but  the  Congress  of  1816  which  establishf 
bank  existing  in  1832^  had  taken  away  the  ric^ht  ivook  ii 
cessors  for  twenty  years  by  giring  it  a  monopoTy  f(»  that 
and  the  Congress  of  1832  pr(^>osed  again  to  continue  this  cox 
right  for  fifteen  years,  which  restriction  on  all  other  compe 
the  President  pronounced  unconstitutional.  Congress,  he 
tended,  was  only  allowed  by  the  constitution  to  grant  mono] 
and  exclusive  privileges  in  two  specified  cases — "  to  pre 
the  progress  of  science  and  useful  arts  by  securing,  for  a  Ki 
time,  to  authors  and  inventors  the  exclusive  right  to  the 
spective  writings  and  discoveries.'* 

The  Bank  Act,  proposed  by  Congress,  contained  a  c 
which  exempted  from  all  national  and  state  taxation  bank 
held  by  foreigners  ;  that  clause  the  veto  declared  unctm 
tional. 

The  President  then  remarked  that  at  the  formatioxi  o 
constitution  the  several  states  reserved  power  to  regulate 
control  titles  and  transfers  of  real  property,  and  most,  i 
an  of  them,  had  laws  disqualifying  ahens  frcmi  acquirii 
holding  lands  within  their  limits.  The  proposed  Bank  me 
contravened  that  law.  The  government  of  the  United  S 
had  no  constitutional  power  to  purchase  lands  within  any  c 
states,  except  for  "  the  erection  of  forts,  magazines,  ar» 
dockyards,  and  other  needM  buildings  ;*'  and,  even  for 
objects,  only  "  with  the  consent  of  the  legislature  of  the  sti 
which  the  same  shall  be.''  By  making  themselves  stockhc 
in  the  bank,  and  granting  to  the  corporation  the  pow^r  to 
chase  lands  for  other  purposes.  Congress  woidd  assume  a  j 
not  conveyed  to  it  in  the  constitution,  and  grant  to  others 
they  did  not  themselves  possess. 

General  Jackson  then  msisted  that  the  bank  only  contemp 
its  private  interests,  not  those  of  the  country.  He  observed 
the  first  Bank  of  the  United  States  possessed  only  ten  mill 
which  was  then  deemed  sufficient.  The  capital  of  the  pr 
bank  was  thirty-five  millions,  and  the  national  debt  was  n 
paid  off:  yet,  on  its  renewal,  it  was  proposed  to  au^eni 
capital  to  fifty  millions.  Therefore,  argued  the  Presuleni 
large  capital  was  not  for  public,  but  for  private  purposes, 
the  origmal  charter  one  Tnillinn  and  a  half  was  paid  by  the 
to  government.  For  its  extension  three  millions  were  ofl 
The  Act  of  1816  declared  that  the  bonus  was  paid  "in 
sideration  of  the  exclusive  privileges  and  benefits  conferred 


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said  bank/'  The  Act  of  1832,  would,  in  the 
B  the  bonus  to  be  granted,  "  in  consideration 
nefits  and  privileges  continued  by  this  Act  to 
tti  as  aforesaid."  Therefore,  continued  the 
ins  is  to  be  given  for  the  advantage  to  be 
t,  not  for  the  advantage  of  the  government, 
sed  of  a  bonus  to  make  the  bank  the  fiscal 
[iment,  if  nothing  more  than  the  performance 
Hjuired  or  expected. 

pied  that  the  bank  might  become  the  instru- 
the  constitutional  power  "  of  coining  money 
value  thereof,"  and  the  answer  was  that  this 
ion  of  a  mint,  and  one  already  existed  which 
3wer  to  transfer  to  a  third  partj\ 
of  free  and  unlimited  banking  formerly  en- 
kizens,  it  no  longer  existed,  ha^dng  been  pro- 
ite  legislatures.  New  banks  could  only  be 
le  sanction  of  the  state  legislatures.  These 
tate  taxation,  either  on  the  bank,  the  stock, 
jmment  money  in  the  state  banks  exempted, 
Lcy  charges  of  the  banks  in  remitting  it. 
esident  wound  up  his  veto  by  charging  the 
abused  its  charter  by  frequent  acts  of  mal ver- 
ges he  did  not  sustain  by  the  slightest  evi- 
is  objections  were  sound,  but  the  general  tone 
I  the  spirit  of  a  heated  partizan.  His  violence 
erate  and  impartial  men,  though  his  very 
ft  higher  than  ever  in  favour  with  the  ultra- 
aounced  the  bank  as  a  "  mammoth  monster  " 


d  that  in  the  Presidential  Message  of  1830  the 
ing  the  public  moneys  from  the  United  States 
sury  department  had  been  recommended.  By 
),  those  deposits  were  required  to  be  deposited 
J  bank  and  its  branches,  and  as  an  equivalent 
he  bank  took  on  itself  the  responsibility  of 
I  agent  of  the  Government  without  charge, 
ter  law,  however,  it  was  provided  that  the 
ight  be  removed  by  the  Secretary  of  the 
as  required  to  submit  his  reasons  to  Congress 
irse.  In  support  of  the  ^^[ews  of  President 
tary  of  the  Treasury  expressed  his  doubts  of 
leposits,  if  continued  in  the  custody  of  the 
>f  the  Treasury  was  then  instructed  to  investi- 


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Historic  Outlines  of  American  Finance^ 


gate  its  affsdrs^  and  he  reported  that  the  institutioa  held  i 
able  assets  in  excess  of  its  liabilities  to  the  amount  of  more 
seven  millions  of  dollars  over  and  beyond  its  capital  of  35,00 
dollars,  thus  proving  that  the  Secretary  of  the  Treasury  h; 
grounds  for  his  want  of  confidence.  Thus  thwarted^  the  es 
ration  of  the  President  vented  itself  in  a  new  form  :  he  n 
mended  a  sale  of  the  stock  of  the  bank  belonging  to  the  U 
States,  after  it  had  been  proved  to  be  in  trustworthy  handi 
the  recommendation  was  rejected  by  the  House  of  Bepresenti 
on  the£rst  reading,  by  102  votes  to  91.  The  House  of  fiepree 
tives  also  decided,  by  109  votes  to  96,  that  the  deposits  i 
be  safely  confided  to  the  custody  of  the  bank.  These  8€ 
defeats  so  infuriated  General  Jackson  that  his  judgment  ap 
to  have  been  blinded,  for  in  his  fourth  annual  message  o: 
December,  1832,  he  said  in  allusion  to  the  bank,  ^*  An  in< 
into  the  transactions  of  the  institution,  embracing  the  bra] 
as  well  as  the  principal  bank,  seems  called  for  by  the  < 
which  is  given  throughout  the  country  to  many  serious  ch 
impeaching  its  character,  and  which,  if  true,  may  justly  < 
apprehension  that  it  is  no  longer  a  safe  depository  for  the  n 
of  the  people.''  This  was  insult  foimded  on  fakehood^  fc 
vindictive  charge  was  not  sustained  by  a  particle  of  eviden 
General  Jackson  was  re-elected  President  for  a  second 
of  four  years,  again  entering  office  on  the  4th  March,  '. 
South  Carolina  had  now  relinquished  its  nullification  docti 
and  the  modification  of  the  tariff  had  tranquilized  the  v 
mind  on  that  subject.  The  Bill  to  re-charter  the  bank  had 
rejected  by  the  veto  of  the  President,  but  its  existing  ch 
did  not  expire  till  the  year  1836 ;  and  as  Congress  had  re 
to  remove  the  deposits  from  its  custody,  General  Jackson  d 
mined  to  compass  that  end  by  other  means.  Some  change 
taken  place  in  the  administration.  Mr.  Livingstone^  Seer 
of  State,  had  been  appointed  minister  to  France ;  he  wc 
placed  by  Mr.  Maclane,  Secretary  to  the  Treasury,  who 
declined  to  remove  the  deposits  from  the  bank  though  urge 
the  President  to  do  so,  after  the  Committee  of  Ways  and  41 
had  reported  against  their  removal.  Mr.  Duane  succeeded 
Maclane,  but  he  was  not  more  pliable  than  his  predecc 
However,  the  President  prevailed  on  him  to  appoint  Mr.  i 
Kendall  as  an  agent,  to  communicate  with  the  several  states 
ascertain  on  what  terms  they  would  receive  the  pubhc  dep< 
The  negociato!^  proposed  as  a  basis  that  th6y  should  muti 
guarantee  each  other.  This  was  refiised,  and  then  the  Prea 
determined  to  remove  them  at  all  hazards,  but  in  that  a 


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285 


ngeance  he  required  the  co-operation  of  the 

TreasuT}*.     31  r.  Duane  objected  to  lend  his 

ss  officially  ordered  by  Congress  to  take  so  ex- 

e*      To   extricate  himself  firom  this  dilemma 

convened  his  cabinet  on  the  10th  September, 

denouncing  the  bank  in  unmeasured  terms, 

ed  aU  the  responsibility  of  removing  the  de- 

on  the  Ist  of  October  next  following  to  carry 

xecution.     Mr,  Duane  reflected  on  the  subject, 

September  formally  announced  to  the  President 

;  carry  his  order  uito  efleut,  and  further,  that 

[gn*     As  the  Secretary  to  the  Treasury  was  the 

empowered  to  give  a  legal  order  for  the  trans- 

leys,  the  President  deprived  Mr.  Duane  of  his 

ucceeded  by  Mr.  Taney,  the  Attorney-General, 

issued  the  necessary  order.  The  public  moneys 

removed  to  the  local  banks  of  such  states  as 

ry  chose  to  select.     At  the  time  when   these 

Qgs   were   adopted   the    government   deposits 

,43d  dollars,  the  whole  of  wliich  were  removed 

ntlis,  the  greater  part  during  the  first  four 

I.     AVhen  this  arbitruiy  blow  was  struck, 

-      [>erous  in  all  depaiiments,  and  commercial 

r  established.     The  advances  of  the  bank  to 

munity,  on  the  1st  October,  1833,  exceeded 

dollars,  and  the  directors  immediately  limiteil 

lation,  the  consequence  of  wldch  was  im- 

1  distress.     Strictly  speaking,  the  removal 

as  not  an  illegal  act :  it  was  technictdly  covered 

Ihe  chai'ler ;  but  as  the  bank  had  paid  to  the 

JO,U0U  doUai's  for  its  privileges,  among  wliich 

of  tho  deposits,  as  investigation  had  proved 

vorthiness.  and  us  no  act  of  malvei*!?ation  had 

.  the  arbitrary  act  of  the  Pre- 

1    [  and  tipite fulness*  was  worthy 

probation. 


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THE  FEENOfi  BUDGET. 

M.  Fould's  FiKAarciAi^  Bbport. 

The  following  report  of  M.  Fould,  the  French  Minister  of  FinaiiG 
published  at  Paris  on  the  10th  Janumry  :-i— 

**  Sire, — ^In  addressing  to  jour  Majesty  icMlay  my  animal  repori 
enabled  to  place  before  your  Majesty  an  almoat  oomplete  expose 
principal  elements  of  our  financial  situation. 

^BuDcnr  of  ISeSL 

^  The  year  18^  will  give  a  better  reralt  than  I  had  aatioipaied 
last  report.  In  place  of  a  deficit  of  43  millioxi%  this  Budget  wi] 
add  28  millicms  to  our  former  deficit.  The  total  of  these  difficulties  i 
stated  last  year  as  972  millions  does  not  amount  definitively  to  moi 
960.  By  means  of  the  loan  of  300  millions,  now  almost  eatiraly  liqu 
this  amount  will  be  reduced  to  660  milUons. 

**  Budget  of  1864. 

"  It  is  not  yet  possible  to  foresee  with  exactitude  what  will  be  the  I 
of  1864. 

**  The  new  law  as  to  sugars,  by  x)ermitting  ih.e  temporarily  free  a 
raw  sugars,  has  substituted  for  the  former  mode  of  loTjring  duty  ffuar 
tenders  disdiargeaUe  at  the  end  of  four  mo&tiiB.  The  €Binmiitu>n 
duties  collected  which  will  result  from  this  change  will  not  amount 
than  50  millions  at  the  end  of  the  current  year ;  but  it  m%y  be  per 
to  hope  that  the  greatest  portion  of  this  sum,  which  belongs  to  the  1 
of  1864,  will  be  recovered  during  the  first  half  of  1865.  &ve  the  e 
ality  I  have  just  pointed  out,  the  provisions  ol  the  Budset  of  1864  \ 
fully  aooompushod.  In  fact,  if  the  customs  show  a  diminQtion  < 
taxation  has  been  even  more  easily  levied  in  1864  than  in  preceding ; 
the  taxes  upon  stamps,  upon  beverages,  upon  tobaooo,  and  of  posta^ 
at  least  an  equivalent  improvement.  It  is  therefore  certain  that,  d 
is  a  deficiency  in  1864,it  will  be  limited  to  the  diminution  whi€h  ma 
place  in  the  receipts  arising  from  the  eonsumptionof  sngan^  and  the 
sury  will,  nevertheleas,  have  sustained  a  loss  of  6^500,00QL,ia  oonset; 
of  the  suppression  during  the  second  half-year  <^  half  the  second  ( 
upon  registration. 

*^  The  non-realisalion  of  the  bonds  of  the  Mexican  Loan  which  wf 
received  in  reimbursement  of  our  advances,  oonformabiy  to  the  Tra 
Miramar,  cannot  be  considerod  as  a  deficit.  Thaae  bonds,  oaloolated 
rate  of  60f.,  represent  a  sum  of  54,000,000f^  40400/)00f .  of  which 
the  Budget  of  1864,  and  13,900,000f.  to  the  Budget  of  1865.  The  siti 
of  the  Treasury  enables  us  to  await  more  favourable  circumstanoes  f 
negotiation  of  these  bonds,  which  there  is  every  reason  to  believe  wi 
be  long  in  coming  to  pass.  In  the  meantime  the  bucket  of  1864  will  1 
vantaged  by  the  interest  of  the  nominal  capital  at  the  rate  of  6  per 
—i.e.,  by  a  sum  of  5,400,000f.  With  regard  to  the  12,500,000f.  whic 
to  be  paid  by  the  Mexican  Government  from  its  own  resources  durio 
second  half  of  1^64,  and  which  appear  in  the  Budget  of  that  year, 
have  been  regularly  discharged. 

"  Although  the  past  year  has  been  favoured  by  an  abundant  ha 
business  has  had  to  suffer  by  the  continuation  of  the  American  wax 


n 


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287 


urassinonts  which  .have  weighed  upon  eiiterprifie, 
jless,  been  less  severely  tried  than  other  countries, 
nt  was  for  a  short  time  at  8  per  cent,  in  England  it 
as  raLsed  to  9  per  cent.,  and  has  always  been  higher 
Jv  of  France.  Despite  the  inconvenience  this  dear- 
}ca8ioned,  the  prudence  of  our  oonmiercial  men  has 
e  number  of  failures  and  their  importance  has  only 
ed.  People  have  been  much  occupied  with  seeking 
some  years  past,  at  frequent  intervals  and  at  almost 
ve  brought  about  the  rise  in  tlie  rate  of  interest,  and 
•eoeiitly  addressed  to  your  Majesty  to  ask  that  this 
le  subject  of  inquiry.  The  Bank  of  France  has  seen 
ked,  and,  although  convinced  that  no  blame  could  bo 
evil  pointed  out,  it  has  itself  manifested  the  desire 
did  take  place,  and  should  be  extended  to  all  the  facts 
le  dearness  of  capital.  If  your  Majesty  should  deign 
eve  that  a  useful  manifestation  to  reassure  the  pubUc 
Q  public  opinion  will  result  from  the  impartiid  and 
a  of  this  important  question.  I  will  not  terminate 
results  of  1864  without  stating  that  we  have  been 
on  the  strict  execution  of  the  prescriptions  of  the 
of  December  31,  1861.  Although  we  have  had  to 
ion  in  Algeria,  and  to  send  thither  considerable  rein- 
that  we  shall  not  ask  any  supplementary  credit  of 
,  and  that  if  this  eventuality  should  occur,  which 
y  ascertained,  it  will  be  restricted  within  very  narrow 


Anticifatoky  Budget  of  1865. 

3  opened  for  the  Anticipatory  Budget  of  1865  amount 
:  but  this  sum  cannot  fail  to  be  reduced.  In  fact, 
?ss  ruling  the  arrangement  of  the  expenditure,  the 
anticipated  in  the  Budget  of  1865  will  be  found 
f  the  balance,  by  a  sum  estimated  at  36  millions  at 
ve  rise  to  corresponding  fibatements.  (The  total  of 
i  has  been— in  1859, 52,439,932f,;  in  1860, 48,544,882f.; 
;  in  1862,  71,427,144f. ;  and  in  1863  this  amount  will 
he  increase  which  this  Budget  will  neoessitate  will 
reality  be  46  millions.  Upon  the  other  hand,  the 
I  upon  for  the  anticipatory  Budget  amount  to 
>lu8  will  therefore  result  of  18,000,000f.,  which  may 
raordinary  Budget  of  1866. 
ems  of  expenditure  in  the  anticipatory   Budget  of 

3try  of  War,  36,000,000f . 

sked  last  year  for  this  service  in  the  rectified  Budget 

try  of  the  Marine  and  the  Colonies,  29,000,000f . 

asked  last  year  for  the  Ministry  of  Marine  and  the 

,000f. 

ublic  Works,  4,500,000f . 

:ry  of  Public  Works  was  only  charged  with  a  sum  of 

ctified  Budget  of  1864. 

''inance  :— 


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The  French  Budget 


"New  Post-office,  6,000,000f.;  re-coinage  of  silver,  <fcc.,  3,000,( 
9,000,000L 

"  5.  Some  further  expenses  for  tbe  Ministries  of  the  Interior,  of  '. 
instruction,  of  the  Emperor's  Household,  and  of  the  Fine  Arts,  a 
Algeria— together,  2,600,000f . 

^'  The  revenue  of  the  rectified  Budget  of  1865  arises  principally : 

"  1.  From  direct  and  indirect  taxes,  which  were  calculated  with 
moderation  in  the  Budget  voted  18  months  ago.  Their  total  value  -^ 
ceed  31,000,000f. 

"  2.  From  the  annuity  due  by  Mexico,  25,000,000f . 

"  3.  From  a  sum  to  be  received  from  the  companies  of  Orleans 
Lyons,  3,000,000f. 

"  4.  From  the  payment  of  a  credit  reserved  for  inundations,  1,0(K 

*'  5.  From  some  other  sources,  amounting  together  to  3,300,00<)f . 

^  Obdikaby  Budokt  op  1866. 

"  The  ordinary  Budget  of  1866  contains  no  new  burden  upon  tl 
payers,  and  we  have  even  ceased  to  include  the  tax  upon  equipag 
horses  kept  by  private  persons.  By  your  Majesty's  order,  a  BUI  "i 
presented  for  the  purpose  of  including  this  tax  in  future  in  the  c 
mental  Budgets.  Notwithstanding  this  diminution,  the  ordinary  1 
of  1866  balances  at  present  with  a  surplus  of  over  a  million,  and  w 
nevertheless  been  able  to  increase  the  amount  devoted  to  the  Mini 
Marine  by  2,500,000f.,  and  that  to  the  Ministry  of  Public  Woi 
l,500,000f. 

*^  EXTBAOBDIKABY  BUDOET  FOB  1866. 

"The  Extraordinary  Budget  for  1866  amounts  in  revenue  to 
U5,000,000f.,  and  in  expenditure  to  144,500,000f.,  thus  leaving  a  s 
of  about  500,000f . 

*'  The  resources  of  this  Budget  consist  of, — 

"  1.  The  sum  of  18,000,000f.  (of  which  I  have  already  spoken,  and 
forms  the  surplus  of  revenue  of  the  Anticipatory  Budget  of  1865.) 

"  2.  90,000,000f.,  arising  from  the  Sinking  Fund. 

"  3.  About  29,000,000f.,  (being  the  amount  of  the  indemnity  to 
ceived  from  Mexico,  China,  and  Cochin- China.) 

"  4.  7,500,000f .  (arising  from  divers  sources,  which  are  detailed 
draught  of  the  Budget.) 

"  The  principal  items  of  expenditiure  are : — 

"  Fob  the  Mikistby  of  Public  Wobks. 

"  Subvention  and  annuities  to  the  railway  companies,  22,200, 
j?uarantee  of  interest  to  the  companies,  31,000,000f. ;  railway  wor 
ecuted  by  the  State,  5,400,000f . ;  works  for  bridges  and  roads,  38,80< 
total  97,400,000f . 

"For  the  Ministry  of  Marine,  destined  for  the  continuation  < 
works  for  the  transformation  of  the  fleet,  12,500,000f . 

"  All  the  other  Ministries  and  the  Government  of  Algeria  obtain  ( 
at  least  equal  to  those  which  were  accorded  them  last  year ;  these  c 
amount  together  to  about  34,000,0001 

"  Floatiko  Debt. 

"  It  remains  for  me  to  make  known  to  your  Majesty  the  state  « 
Floating  Debt.    As  I  said  at  the  beginning,  the  total  of  our  deficits 


n 


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g  and  Financial  Anecdatei*. 


3  araoimts  to  660,000,000! .     The  Floating  Debt 

r  ihsLu  thw  sum.     The  tlitfereBoe  msen : — 

i  15,000,000!.  (whicli  we  have  to  reoeiire  on  the 

the  levy  of  the  duties  on  sugary  t«)  the  amount 

zati^m  of  the  Mexican  Rjiids,  for  54,000,OOOf. 
tniule  by  the  Treasury,  in  virtue  of  divers  laws 
'  loann  to  industry,  steamboat  oompames,  Ao. 
e  dispofiable  funik  of  the  aeouriiios  by  about 

to  these  causes  of  the  increase  of  the  Floating 
'h  we  are  placed  of  keeping  up  caah  in  hand  for 
Cochin-Ciiina^the  Co loniea^  Algeria, and  Home.** 


LND  FINAIiCIAL  ANECDOTES. 
No,  lU. 


itECTORS   OF   THE  BANK  OF   ENGLAlfD. 

of  the  dirftctora  of  the  Batik  of  England  in 
'nafsly  nch.  Hia  viHiL  waa  the  boast  of  Uie 
sting  nxima  were  wainscoted  with  cedar  ;  hia 
i  tht>fle  of  kings  ;  and  hU  judicious  munifi- 
!e  of  the  City,  and  procuretl  him  a  seat  in  tho 
noth<?r  diretrtor  of  thi?  Bank  of  Eugland  at 
lenry  Fumese,  one  of  the  most  enterj>rising 
aintained  at  his  |invate  expense  a  complete 
ough  Htdlandj  Flandera,  France,  and  Ger- 
iBtancen  ha  rtjceived  tlie  news  of  important 
ong  Iwifore  the  Ooveroment^  and  the  fall  of 
a^rgcly  added  to  his  pnifits,  owing  to  his  curly 
he  condescended  to  communicate  such  intel- 
9  iiiiniflt4*re,  which  loyalty  King  William  re- 
i  by  the  preaeut  of  a  large  diamond  ring.  It 
F  wiahed  to  buy,  his  brokers  were  ordere<l  to 
ions^  hint  at  im|x>rtant  news,  and  even  effect 
?menta,  of  course^  were  closely  watched  ;  the 
he  j^icculaton*  having  got  fairly  alarmed,  the 
EKjnently  4  or  5  j>er  cent  Now  waii  the  time 
—of  course  to  the  immense  benefit  of  their 
ics  are  told  of  the  wealthy  Hebrew  V.ianker^ 

24 


1 


290  Banking  and  Finaficial  Anecdotes. 

Medina^  who  accompanied  Marlborough  in  all  his  campaign 
tolerably  well  proved  that  he  prevailed  upon  the  avarice  of  t 
commander  to  accept  a  regular  annuity  of  £6,000.  He  la 
paid  himself  by  expresses  containing  early  intelligence  of  t 
battles  fought,  and  Kamilies,  Oudenaixle,  and  Blenheim  adm 
as  much  to  the  purse  of  the  shrewd  Hebrew  banker  &s  th 
the  glory  of  the  English  nation.* 


LOVE  T.   CHARTTY. 

Thomas  Guy,  the  founder  of  Gu/s  Hospital,  who  was  origi 
son  of  a  poor  lighterman,  gained  an  immense  sum  of  mone} 
ing  up  all  the  South  Sea  stock  he  could  procure,  and  selling 
just  at  the  moment  when  the  fever  was  at  its  height  He  hi 
been  very  penurious,  and  was  in  the  habit  of  dining  be 
counter  of  his  shop  in  Lombard  Street — ^his  dinner  consis 
penny  loaf  and  a  small  bit  of  meat,  with  a  piece  of  paper  fo 
cloth ;  but,  falling  in  love  with  his  maidnservant^  he  resolv 
luxury  of  a  wife.  The  match  was  agreed  upon,  and  arra 
were  in  progress.  Whether  arising  or  not  out  of  these  arra 
history  says  not,  but  at  all  events  a  portion  of  the  pavement  h 
Guy's  shop  had  to  be  taken  up,  and  he  gave  strict  orders — t 
pense  would  fall  on  himself — that  the  repairs  should  extend 
tain  mark,  and  not  one  atom  further.  The  fiancee^  how< 
sumed  somewhat  upon  her  position,  and  ventured  to  c 
workmen  to  go  a  little  over  the  boundary.  This  so  enraged 
that  he  not  only  broke  off  the  match,  but  showed  his  sp 
\  once  intended  wife  by  declaring  that  he  would  give  his 

found  a  hospital — a  promise  involving  some  quarter  of  s 
which  he  fidthfully  kept 


THB  GOLDSHID  FAMILY. — THE  HILLIONAIBB  SUICIDEJ 

The  history  of  the  Goldsmid  family  has  its  sad  episodes 
its  brilliant  pages.  Perhaps  no  financial  firm  had  a  highei 
at  the  beginning  of  the  present  century  than  that  of  Abn 
Benjamin  Goldsmid,  the  Jewish  bankers  and  money  broke] 

*  Railway  News,  April,  1864, 


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hI  liigbly  ag  mert.-liaiit  princcsi,  but  they  were 
^eoeroiis  and  nobiti  diH{K:»tsitiatLii*  Like  Tn&ny 
n,  thejj"  origiii  wat*  a  a  Jiunible  on  a  In  Good- 
uisly  poor  neiglibourbootl,  towmxls  the  end  of 
was  ft  broker  fi  shop.  Thiii  whop  was  kept  by 
and  Ddijamin  GoMsmitl  Tho  btu^jiness  proa- 
ns  set  up  ad  raonoy-Ienders  near  the  Exchange* 
ite  enough  to  make  the  acquamtance  and  guin 
hani  Newland,  chief  cai^hitT  K^f  the  Bank  of 
aan  made  the  brothers  GuhJsniid  Ids  tinanciaJ 
Jiere  waa  an  understanding,  on  the  part  of  the 
auk  of  England,  that  a  fKirtion  of  the  Gov^m- 
lys  be  reserved  for  the  chief  cashier  of  that 
war  time  too,  and  luana  were  frequent.  To 
to  such  a  man  wan,  Uj  use  perhaps  an  a[ff)rt)- 
th  a  Jew'8  eye."  The  firm  of  the  Guldnmids 
eir  eon  tracts  for  loaus  lacing  on  a  hirge  scale, 
arge  profita.  The  brothers  VM?came  immensely 
miserly.  On  the  contrary,  they  gave  loagni- 
riVied  handsomely  to  charitable  objects,  and 
incely  style.      But  both  brothers  came  to  ti 


the  younger  brother,  lived  at  Rochampton,  a 
•efore  the  ruthless*  invasion  of  railways.  He 
fectionate  wife,  and  a  charming  family.  To 
a  went  for  the  htHt  time,  after  burtiuesa  hours, 

18U8.  On  tJie  following  morning  ho  waa 
own  bedatead,  and  the  juiy  who  met  to  de- 
6a  death  declared  that  he  was  atflicted  with 
i  was  naturally  ccmcludud  tlmt  nu fortunate 
I  upon  his  mind, 

of  the  family  were  }'ot  to  culiitaiate  in  the 
ther.  Whether  the  mind  of  Abi-aham  Gold- 
r  the  fluieide  of  hia  brother,  or  whethtsr  it  was 
>ice  of  the  deceiise<i  waa  a  serious  blow  to  the 

that  the  Hpcctilations  of  the  wii'vivor  were 

Loea  after  loss  followed,  and,  at  hy^t,  Mr« 

myed  for  a   deajK^rato   ataka      He   and   Kn 

fftodi  ia    liilO,  for    tlie   Uovcrnment  loan  of 


292  Banking  and  Finnncial  Anecdotes. 

14  millionfj.     The  stock  fell,  and  fell,  and  continued  falling 
said,  Mr.  Goldsmid's  losses  reached  a  quarter  of  a  million. 
28th  September,  1810,  the  loan  was  at  6^  discount,  and  on 
ing  of  that  day  Abraham  Goldsmid  left  the  City  gloomily 
home.     He  had  a  splendid  mansion  at  Morden,  not  many  i 
where  his  brother  had  lived.     There  was  no  great  change  u 
nary  demeanour  observable  at  dinner  time  ;  and  after  a  gam< 
he  went  out  into  the  grounds  for  a  walk.     The  report  of  a 
heard.      Abraham  Goldsmid    had    shot  himself.      Next 
Government  loan  of  14  millions  fell  5  per  cent. 

Two  anecdotes  of  Abraham  Goldsmid  are  related,  thoi 
proofs  of  Jus  good-nature  have  probably  died  with  him. 
regularly  at  one  hour,  and  noticing  that  the  waiter  was 
spirited,  the  kind  hearted  Jew  inquired  the  cause.  He  foun 
man  was  in  pecuniary  difficulty,  and  he  instantly  gave  him 
amount  he  required,  refusing  to  receive  any  acknowledgm< 
money,  or  even  any  thanks.  At  another  time  Abraham 
became  acquainted  with  a  clergyman  of  the  Church  of  Em 
was  but  little  better  off  than  Goldsmith's  village  curate, 
rich  with  forty  pounds  a  year,"  Comnuserating  his  poi 
Goldsmid  actually  sent  the  clergyman  a  letter  informing  1 
share  in  a  new  loan  had  been  allotted  to  him  !  The  good 
stared  with  astonishment  when  he  received  the  letter,  and, 
the  conclusion  that  some  hoax  was  being  played,  he  put  tl 
one  side.  The  next  day,  however,  another  letter  arrived,  { 
the  pleasant  information  that  a  goodly  sum  had  been  reali 
transaction. 


BLACK   MONDAY. 

When  the  failure  of  Alexander  Fordyce,  of  the  firm 
Neale  &  Co.  became  known-^when  it  was  discovered  that 
name  was  attached  to  bills  in  circulation,  to  the  tune  of 
millions — there  was  immediately  a  panic.  The  news  tran 
Monday  the  8th  of  June,  1772,  and  so  disastrous  were  its  ef 
the  day  was  commonly  called  "  Black  Monday."  Among  i 
in  Scotland,  was  the  destruction  of  the  first  joint-stock  be 
of  Douglas,  Heron  &  Co.,  at  Ayr,  with  a  capital  of  some  £96 
a  proprietary  of  about  140  shareholders.      When  the  nev 


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ailtirea  became  known  in  Scotland,  there  was  im- 
Q  this  l)ank  In  vain  did  some  of  the  Jemling 
them  the  Dnke  of  Biiccleuch^ — implore  the  Bank 
uioe  :  itwa^  refuded,  and  the  bank  fell,  dragging 
k  good  Ayrshire  ^milj. 


BMMT  WOOD  OF  GLOUCESTEH. 

extraordiiirtry  miser-lmnker,  James  Wood,  of 
y  called  Jenmiy  W«x><:l,  who  was  at  the  least  a 
ith.  In  1716  there  was  in  that  town  which  is 
single  "  and  **  double  "  cheese,  a  little  chaudlor's 
KHitory  of  soap  and  pack-fchread,  cheese  and  pins, 
md  any  other  heterogeneous  mixture  for  which 
o  famous,  was  kept  by  James  Wood,  who  added 
jidlery  a  little  bill -dbcoun ting,  James  Wood 
er  James  Wotjd — the  son — preceded,  and  yet 
i — the  grandson.  The  latter  vti\&  the  Jemmy 
no  historical — the  millionaire  banker  and  the 
tlie  chandler's  shop  had  come  into  possession  of 
i^as  of  a  goodly  size,  for  it  had  been  suceessively 

not  only  a  clumdlcr  s  shop  but  a  bank  !  Yes, 
[ink.  One  part  of  the  shop  was  for  the  miscel- 
[u:»ther  tor  the  hUhy  lucre — ^for  bills,  notes,  »ind 

this  strangely  arranged,  or  tlisurraDge*:!  shop 

quality  ;''  and   while  Jemmy    Wood    M'iis,    for 

a  bill  for  my  lord  in  one  part  of  the  shop,  a 

T  U»ero  were  but  two  clerku  to  the  whole  esta- 

serving  halfa  pound  of  double  Olouecster  at 
umy  Wood  lived  penuriously,  lintli ug  a  misemble 
ese-p«iring  economy  (both  in  the  Old  Glouoesier 

Gloucester  cheese),  and  when  he  died  hii  will 
?d  by  his  relativea  aa  to  remind  one  of  Aoti^ou 
own  hounda. 


294 


BANK  NOTES  ISSUE  BILL. 

Thv  following  bill  to  make  proviBion  for  empowering  oountry  ba 
issue  to  obtain  relief  from  certain  restrictions,  upon  payment  from  1 
time  of  a  certain  charge  in  respect  thereof,  has  just  been  iutniducc 
the  House  of  Commons  by  the  Chancellor  of  the  Exchequer : — 

Whereas  divers  restrictions  are  imposed  by  act  of  |>arlifu]}( 
bankers  in  England  issuing  their  own  bank  notes  :  and  whereas  it  if 
dient  to  permit  the  said  bankers  to  exempt  themselves  from  the  » 
strictions  by  payment  of  such  percentage  on  their  issues  of  notei^  a^  is  1 
after  mentioned :  Be  it  enacted  by  the  Queen's  most  Exoatitut  M 
by  and  with  the  advice  and  consent  of  the  Lords  Spiritual  atid  Tec 
and  Commons,  in  this  present  Parliament  assembled,  and  bj  the  aui 
of  the  same,  as  follows  : — 

1.  This  Act  may  be  cited  for  all  purposes,  as  **  The  Country  Ba 
Issue  Act,  1866." 

2.  This  Act  shall  not  extend  to  Scotland  or  Ireland, 

3.  This  Act,  and  the  Act  7  and  6.  Vict.  c.  32^  to  be  read  as  one  Ac 

4.  Definitions. 

6.  There  shall  be  repealed,  so  far  as  respects  any  bank  of  issue 
taking  to  pay  such  percentage  on  its  issue  of  bank  notes  as  is  here 
mentioned,  any  provision  of  any  act  of  parliament  whereby  the  nux 
partners  in  cerUin  banks  of  issue  is  restricted  to  six,  or  wheri^by 
banks  of  issue  are  prohibited  from  having  a  house  of  business  or  eat 
ment  as  bankers  in  London,  or  at  any  place  not  exceeding  sixty -tiv^ 
from  Loudon,  or  whereby  banks  of  issue  are  prohibited  from  issuing 
issuing  or  making  payable  bank  notes  in  London,  or  at  any  ph 
excee£ng  the  distance  of  sixty-five  miles  from  London ;  Hiibject 
proviso,  that  nothing  in  this  act  contained  shall  authorise  auy  b 
issue  to  issue  or  re-issue  bank  notes  within  the  city  of  Louduii,  oi 
miles  thereof. 

6.  Any  bank  of  issue,  or  any  number  of  banks  of  issue,  may  trai 
any  other  bank  of  issue  the  right  of  issue  vested  in  it  or  tliem,  or  ai 
or  parts  thereof,  on  such  last-mentioned  bank  undertaking  to  pa 
percentage  in  respect  of  iks  own  issue,  and  of  the  issue  or  issues  sc 
ferred  as  is  hereinafter  mentioned. 

7.  No  change  in  the  personal  composition  of  any  bank  that  has  a< 
th  e  conditions  uf  this  act,  and  no  alteration  in  the  constitutiou 
made  in  accordance  with  law,  shall  affect  or  prejudice  the  cjierciBo  I 
baok  of  the  rights  and  privileges  conferred  on  it  by  this  act, 

8.  Provides  that  the  issue  of  banks  accepting  conditions  of  act, 
tinue  till  1st  January,  1890. 

9.  The  undertaking  of  a  bank  for  the  purposes  of  this  act  Bhall 
bond  to  Her  Majesty,  dire,  in  such  sum,  as  may  be  prescriberl  by  tin 
missioners  of  Inland  ReveiMiA,with  the  sanction  of  thetre««ury.  ] 
be  executed  by  the  bank  or  the  public  officer  thereof,  or  such  or  sc 
of  the  directors  or  managers  thereof  or  partners  therein,  or  all  or 
the  said  parties,  as  the  said  commissioners,  with  such  sanciiou  as  nlc 
think  fit  to  make  obligors.  The  commissioners,  when  they  l\a  vf>  appr 
the  undertaking  of  a  bank,  shall  forthwith  publish  in  the  *^  Lui  h  i(  ^u  G; 
notice  of  such  bank  having  entered  into  such  an  undertakin>^' ;  afid 
of  the  Gazette  containing  such  notice  shall  for  all  purposes  Ir>  eon 
evidence  of  the  fact  therein  stated,  and  the  said  undertaking  si 


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295 


feet  from  the  date  of  the  publication  of  the  notice  in  the 

k  ibat  has  accepted  the  c^uitlitions  of  thia  act  in  respect 
rC  a  1^^^*^°^^^  ^^  i^  issues  of  notcfi,  and  whicli  bmik  is 
lid  to  as  a  jmyileged  bank,  sJiall  pay  into  the  locjuipt  of 
Lche<|Uer  a  sum  after  the  rate  of  £2.  &f.  by  the  year  u|>on 
L^  average  amount  of  bank  notes  circulated  by  that  bank 
of  a  year.  For  the  puriH>,e3  of  this  section,  the  average 
ni»te8  circulated  during  any  qnarter  by  any  bank  shall  l>e 
he  monthly  averages  as  ascertained  by  the  CoramiMionera 
me  under  the  Bank  Act,  1844.  Thu  perceutage  jiayablo 
on  shall  be  instead  of  license  dlity  and  ofunpoKitiou  for 
36pect  of  bank  notes  issuod  by  a  privilegeil  bank,  and  no 
notes  shall  be  required  by  Jiny  bank  paying  the  same^  and 
be  entitled  to  the  same  pnyileges  in  respect  of  the  issue  of 
'  it  were  dtdy  licensed  and  had  <liily  ptiid  compoi^ition  for 
lie  aaid  percentage  shall  be  paid  quarterly  t*i  tho  Receiver- 
bod  Be  venue  on  the  31  at  iiy  of  March,  tho  30th  day  of 
lay  of  September,  aod  the  31st  day  of  December  in  every 
payment  shall  be  ma^le  on  the  first  of  the  said  quarterly 
aeds  the  publication  in  the  Gnzette  of  tho  nntioe  of  the 
pay  the  same,  and  shall  consist  of  the  pixiportion  only  that 
»d  due  up  to  the  said  day, 

rtakiug  by  bond  tfiven  by  or  on  behiilf  of  a  bank  in  pur- 
7t  shall  be  renewed  from  time  to  time  as  the  Commissioner» 
nue  may  require ;  and  if  any  privileged  Bank  refuses  or 
w  any  such  bond,  after  beinjr  required  so  to  do  by  notice  in 
f  or  on  behalf  of  the  Commissioners  of  Inland  Revenue, 
incur  a  penalty  not  eioeethng  £1CM),  to  be  recovereti  by 
f  Her  Majesty's  superior  courts,  and  on  being  convicted 
he  Crown  all  its  rights  of  issue, 

Rissioners  of  Inland  Revenue  Jihal)  from  time  to  time  on  the 
ly  priviloged  bank,  certify  to  that  bank  the  amount  of  notc« 
111  ismie ;  they  ^hviXl  also,  at  tho  expense  of  the  bank,  pub- 
tioate  in  the  next  RUCM^eetling  London  Gazette  in  which 
c/'iivoniently  inserted  ;  and  ac<opy  of  the  Gazette  in  which 
1  is  mtide  shall  be  ounclusive  ovidenoo  of  the  amount  of 
at  bank  is  authorised  to  issue. 

ivilegad  bank  become  bankrupt  its  right  of  issuing  notes 
''^•**^rmine,  but  there  shall  be  paid  by  the  Bank  fif  England 
f  of  the  asRets  thereof,  by  way  of  oomjjensatiou  for  the 
rik'ht  t<>  ifegue  notes,  a  sum  equal  to  the  then  present 
•iry   it  rlio  rate  of  one  jier  cent,  on  the  average  quarterly 
:  L^;vihii  by  the  bank  during  the  prt*coding  year,  and  pay- 
ate  of  tlie  bankruptcy  until  the  l»t  of  January,  1800,  or  aa 
ean  be  ascertained.      An}*  oom|k3nsation  paid  by  tlie  Bank 
1  voce  of  this  section  shaU  be  repaid  to  it  out  of  Her 
,  in  fiiTch  m fanner  and  at  such  time  as  may  be  agreed 
f  the  Treasury  and  the  Bank  of  England. 
I  _'  ti>  act  as  a  privileged  bank  without 
piuvLsiuiia  of  this  act  entitling  it  to  do  so,  the 
vt  bfiTik  shall  be  forfeited  tr»  tl»e  Orowii,  and  mny 
>   i  M  iiiL^  aJtr»gethcr  extinguished*  or  by  being  tnuia- 
ikj  »t   1    the  trejisury  may  Beem  good. 


296  Bank  Notes  Issue  Bill. 

15.  A  priyileged  bank,notwithRtandiiig  it  carries  on  business  in 
or  -within  sixty^five  miles  thereof,  may,  on  obtaining  a  license,  as 
by  the  act  of  the  ninth  year  of  the  reign  of  King  George  the 
chapter  twenty-three,  compound  for  the  issue  on  imstamped  pa] 
promissory  notes  payable  to  order  at  any  period  not  exceeding  se 
after  sight,  and  its  bills  of  exchange,  wherever  payable,  in  mai 
vided  by  the  last-mentioned  Act,  and  shall  be  entitled  to  all  po 
priyileges  exercised  or  enjoyed  by  it  previously  to  its  becoming  a  p 
bank. 

16.  The  Bank  of  England  may  compound,  in  manner  provide 
Bank  Act,  1844,  with  any  privileged  bank,  in  the  same  mannei 
thereby  empowered  to  compound  with  banks  of  issue  tha 
privileged. 

17.  A  privileged  bank  of  issue  shall  be  subject  to  all  the  pro 
the  acts  of  parliament  relating  to  banks  of  issue,  except  in  so  U 
are  repealed  by  this  act  in  relation  to  such  bank. 


BANK   OF  IRELAND. 

Thb  following  bill,  to  make  further  provision  for  the  manag 
the  unredeemed  public  debt  in  Ireland,  and  for  the  reduction  < 
terest  payable  on  certain  sums  advanced  by  the  Bank  of  Ireland 
public  service,  has  been  brought  into  the  House  of  Oommoii 
Chancellor  of  the  Exchequer : — 

Whereas  it  has  been  agreed  that  the  rate  of  interest  hithert 
to  the  Governor  and  Company  of  the  Bank  of  Ireland  on  the  ai 
vanced^for  the  public  service  shall  be  reduced,  and  that  provisio] 
made  for  payment  to  the  said  governor  and  company  for  theii 
ment  of  the  unredeemed  public  debt  in  Ireland  :  Be  it  enact 
Queen's  most  Excellent  Majesty,  by  and  with  the  advice  and  < 
the  Lords  Spiritual  and  Temporal,  and  Commons,  in  this  presei 
ment  assembled,  and  by  the  authority  of  the  same,  as  follows  :— 

1.  From  and  after  the  6th  April,  1865,  certain  provisions  < 
8  (b  9  Vict.,  c.  37,  shall  be  repealed  as  relates  to  the  payment  o 
on  said  sums,  amoimting  to  £2,630,769.  4ts.  Sd,,  and  the  whc 
third  section  of  the  said  act,  shall  be  and  the  same  are  hereby  n 

2.  There  shall  be  paid  to  the  Governor  and  Company  of  th 
Ireland,  on  the  6th  April,  1865,  out  of  the  Consolidated  Fund,  i 
the  said  sum  of  £2,630,769.  4«.  Sd.,  at  the  rate  of  £3.  bs.  per  a 
annum,  for  the  quarter  ending  on  ^e  5th  day  of  April,  1865. 

3.  Provides  that  from  6th  April,  1865,  .interest  on  the  debt  to 
of  Ireland  be  reduced  to  £3  per  cent,  per  annum. 

4.  There  shall  be  paid  to  the  Governor  and  Company  of  the 
Ireland,  on  some  day  between  the  6th  April  and  the  5th  July,  18 
the  Consolidated  Fimd,  for  their  charges  in  the  management  c 
redeemed  public  debt  in  Ireland  for  the  year  ending  on  the  i 
1866,  and  in  the  like  manner  on  the  same  day  between  the  6th  Api 
5th  July  in  every  succeeding  year,  for  the  management  of  the  de 
the  preceding  year  ended  on  the  5th  April,  in  each  year  unti 
April  1886,  and  thengeforth  in  any  and  every  succeeding  yc 
Parliament  shall  otherwise  direct,  remuneration  at  the  rates  i 
that  is  to  say : — 1st.  While  the  whde  of  such  unredeemed  del 


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c  of  Ii^land,  oomputerl  aa  hereinafter  mentioned,  shall 

'  *,  A  stim  at  the  rate  of  £450  per  nnmim  for 

'.     2d.  VVhile  the  whole  of  such  u«rtidt?em»d 

t..  jto",i«HI,()(X)  aud  shall  not  exceed  £4tJ,0CHl,000,  a  sum 

}  per  atinuui  for  each  rnilUoii  of  the  capital.     *M.  While 

ivnre«leenied  debtshjill  exceo*!  £40,OOUjO<K)j  a  aum  ut  the 

nnuin  for  eveiy  mill  ion  of  the  capital  n\i  to  i*i(l,iliX),rMlO, 

rate  of  £15<)  p*?r  annum  for  every  luillion  ^if  tfie  capital 

motuit.    Provided  always  that  in  eatimatmg  the  amount 

>t  for  the  purposes  of  this  aut,  annuities  for  tenns  of 

fn  ill  to  liccaunt,  and  shall  for  the  jmrpiae  of  tuakiug  a 

v:ilned  at  fifteen  years  purchase,  if  originally  granted 

f ty  years,  and  at  ten  years'  purchase  if  granted  for 

r  under. 

tthe  Commissioners  of  National  Debt  shall  transmit  to 

mt  of  the  amount  of  the  debt  in  Ireland,  and  the  allow- 

ent  to  be  computed  thereon. 


Iftgal  Itlisalhuin. 


a   PROCTBINO  niRKCTORS. — DRAPKH  AHB   AKOTHER   V. 
THE   IMPEHIAL   BANK. 

fore  Lord  Chief -Justice  Erie,  in  the  Gk>nrt  ol  Common 
February. 

)D  ijct  recover  remuneration  for  having  procure* I  three 

me  dir».*ctor«  of  the  Imperial  Bank,  Lijuit^-tL 

I  and  Sir  Ge^jrge  Honeyman,  api>eared  for  the  plaintiff; 

.C,  Mr,  Brett,  Q.C*,  and  Mr.  Turner,  for  the  defendanta. 

[r.  Draper  was  a  wool  broker  in  lA>ndon  Widl,  and  the 

.  Carati,  was  an  insurance  broker  nx  Threatlneedle  Street. 

'    I-  that  the  Iniperiid  Bank  was  fonnde<l  in  18l>2,  and 

f  that  year  they  became  aware  that  it  was  thought 

.4  '> -    ^  >ra  fihould  be  fttrengtheue*!  by  the  accessioD 

of  eniitieuee,  artd  they  eon.^ei|uentiy  set 

it.     Mr.  Draper  was  acquainted  with  Mr. 

I  u  f  Jjr    ^VH4)1  trade,  and  who  was  a  director  of 

-    -^ii  c'jLi suited  his  brother  direcrtors,  and  after- 

e  directors  were  well  pleased  with  the  proposal,  provide*] 

be  iutroductHi  were  hriit-olaiM  jxtjple.     It  was  stated  that 

Lhey  joined  tho  Iwjvrtl,  should  have  an  allotment  of  Khar es 

lif'Tt   market  price;  £20  hitd  bt^eu  paid  uiK>n  tli*i   sharws, 

r-iiiuam.     At  the  first  meeting  31r.  Draper  had  said 

>  would  exjtei^  reinnnepution  upon  the  same  principle 

Mr,   EdenlMji'iiugh  requested  3Ir.  Draper  to  com- 

tbfvm.  tho  nmniigor  of  the  bank,  and  he  and  Mr* 

d  that  tbe  names  of  the  new 

rm  of  R«>doconaehi,  8ons^  and 

""       V         "   intriHiiiced these 

un  and  to  the  aa- 

L  iinunoration,  and 

i::Jh  lM-,j;iiiiedirectorS| 


298 


Legal  Miacelkmy, 


and  reoeived  an  allotment  of  2,000  shares.  The  arrangement  proT< 
advantageous  to  the  banli  that  the  shares  rose  rapidly,  until  they  ^ 
£26  or  £27  premium.  The  Greek  gentlemen  gave  the  plaintiffs  100  s 
each  at  22,  they  being  at  that  time  26  in  the  market,  and  plaintiff  i 
wai'ds  applied  to  the  bank  for  an  allotment  of  shares,  but  this  dain 
not  recognised.  Some  correspondence  took  place,  and  after  a  time  M 
Lusk,  Murdock,  and  Weetley  were  appointed  a  committee  of  director 
see  and  confer  with  Messrs.  Draper  and  Carati,  and  to  learn  from  the; 
grounds  on  which  they  assume  a  claim  against  the  bank."  The  oomn 
did  not  in  fact  see  the  plaintiffs,  but  on  the  17th  of  May  the  plaintif 
a  letter,  which  stated, "  Tour  letter  of  the  23rd  of  February  has  beei 
before  the  board  and  considered  ;  and  I  am  instructed  to  inform  yot 
the  directors  cannot  recognise  the  claim  you  have  put  forward."  < 
were  made  by  the  plaintiffs  to  refer  the  subject  of  their  claim  to  arbitn 
but  this  was  not  acceded  to  by  the  defendants ;  hence  this  action. 

Mr.  Bovill  submitted  that  there  was  no  evidence  of  any  contract  -< 
would  bind  the  shareholders  of  the  bank,  for  the  only  way  in  which 
could  be  bound  was  by  the  act  of  the  board  of  directors,  whilst  here  a] 
was  said  to  have  been  done  was  by  an  individual  director  and  bv  the  mai 

Mr.  Field,  on  the  other  hand,  contended  that  although  the  bank 
corporation ,  still  it  was  a  corporation  of  a  peculiar  kind.  It  was  f( 
under  the  Companies  Act  of  1862,  and  that  act  placed  no  limitation 
ever  upon  the  power  of  the  directors  to  make  a  contract.  In  addition,  it : 
be  said  that  the^directors  had  ratified  what  had  been  done,  by  acting  u] 

The  Lord  Chief -Justice,  after  some  discussion,  said  that  he  woii 
stop  the  case,  but  would  give  the  defendants'  counsel  leave  to  move 
nonsuit. 

The  case  for  the  defendants  was  that  when  the  bank  was  orig 
formed,  the  question  was  discussed  whether  they  should  have  some 
gentlemen  on  the  board,  but  the  suggestion  was  not  at  that  time  adopte< 
bank  having  prospered,  the  three  gentlemen  who  had  been  namec 
very  desirous  of  joining  the  bank,  and  the  negotiation  was  opened  a^ 
instance,  and  not  at  the  instance  of  the  bank.  It  was  not  true  th 
plaintiffis  had  ever  been  promised  anything  on  behalf  of  the  bank,  o 
Mr.  Edenborough  or  Mr.  Bentham  had  ever  assented  to  any  sugg 
that  they  should  be  remunerated.  The  first  thing  that  Mr.  Edenbo 
heard  of  remimeration  was  after  the  Greek  gentlemen  had  been  intrc 
to  the  bank,  when  Mr.  Draper  wrote  in  these  terms : — ^  Should  I  : 
justified  in  asking  you  as  a  director  to  make  an  allotment  of  100 
each  to  Carati  and  myself,  who  have  negotiated  the  matter,  such  shf 
be  given  to  us  at  the  same  rate  as  to  our  Greek  friends? "  It  was  coni 
that  the  terms  of  this  letter  were  strong  to  show  that  there  was  n 
tract.  Subsequently  there  was  another  letter  that  Mr.  Carati  thougl 
the  directors  might  allot  them  200  shares  each. 

The  jury  found  a  verdict  for  the  defendants. 


THE  COMPANIES  ACT,  1862. — BE  THE    SOOTTISH  AND  UinVEBSAL  FI 
BANK,  LIMITED. — EX  PARTE  JAMES  SHIP. 

This  case  was  heard  before  Vice- Chancellor  Wood,  in  the  Court  of  Cha 
on  the  16th  February. 

It  was  a  motion  of  a  novel  character,  and  was  in  fact,  we  believe,  tl 


^ 


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Letjal  MkccUany, 


290 


lectiou  of  tlie  Companios  Act,  18l>2,  haa  been  inkcsn  ad- 
o-ehcildeT.  Tliis  Boction  proviiles  that  when  a  aharo- 
jeea  improperly  iiiaerttMi  ou  the  register  ol  vl  otnupjiriy, 
moretl  by  the  sharebiJder  will  order  liU  name  Uy  bo 
i  case  Mr.  8 hip  authorised  the  directttra  of  tbo  ab(jyo 
113  njime  on  the  Uat  of  »hAreholder8,  believing  from  d 
ospef^uA  that  it  was  a  bankiDg  and  bullion  company . 
nociatioij  of  the  company  the  objecta  of  tbo  compuuy 
1  thofw  propoaed  intlie  prfj8pectu»,  and  riulway  making, 
c  works,  ic*,  were  inclndeih  The  Company  ia  nuw 
sing  wonnd  up.  The  petitioner  moved  that  his  name 
gifiter^  an  the  oompany  is  essentially  different  to  that 
L  to  Bubdcribe. 

and  Mr.  L<icock  Webb  were  for  the  motion,  and  Mr. 
Hr»  W,  Morris  opposed. 

Ill  .r  fitigmati»e<l  the  conduct  of  the  dureetora  in  acting 
The  petiiit»ner  had  given  them  authority  to  insert  hia 
sr  of  a  banking  eoaip«ny,  and  they  hfwl  inserted  it  on 
m[}auy.  The  ptetitioner's  uatno  intist  be  struck  off  the 
mpauy  mxnit  pay  the  costs  of  the  applicatiou. 


At.  PBIVILEOED   TTNTON    BAWK   OF   AUSTRIA. — BARON    D« 
»    AKOTHEK   V.   LOKU    FERMOY,   M;P.,  ANP   OTHEBS. 

rd  in  the  Court  of  Queen's  Bench,  before  the  Lord 
sT>t(!iid  jury,  on  the  With  February, 

Mver  the  sum  of  4^0,CKK}  for  the  aaaigomeut  of  the 
I  Dg  the  Imperial  Bc>yal  Privileged  Union  Bank  of 

id  by  the  d*  frndaDtR'  pleas  wa«  subetantially  a  denial 

iun  was  not  dnly  obtained  by 

[or  the  Hharea  dotted  witliin 

]  i-i.  jiivut  \  aiid  further,  that  the  defendants  were 

'l»t  and  pay  for  the  oonce«aion  aa  agreed  between 

^uuntriiin  ^'overunjent  afterwards  made  material  altera- 

s.     Th<?  dofoudituts  further  pleiwltvd  that  the  agreement 

rin  Am?trian  contract,  and  k>  be  carried  out  and 

in  the  empire  of  Austria,  and  thai  the  validity  of 

[1  the  laws  then  in  force  in  the  empire,  and 

lent  entere<l  into  waa  and  ia  illegal  and  void 

aud  itK'4ipable  of  being  legally  enforced  by 

]{  kntvw,  liut  which  the   defendants  did  not 


th< 


Mr*  Kingdon  were  counsel  for 

,.,  .,i.,  .:.,,  „iU5,  Q.C.,  and  Mr.  Garth,  were 

ca?t'  io  fhe  iurv^  said  thia  waa  aJQ  action  to 

ly,  and  inti^rejit  frnm  the 

iiuj  of  £1,800  for  certain 

•nt  entered  into  botwoen 

I  .u  from  the  AuMriau  go* 

14  ixuil^^    upon  the  limited  liabdity 

Tiiierry,  waa  a  gentleman  of  con- 


300 


Legal  Miscellany. 


siderable  distinction,  and  was  for  nearly  thirty  years  minister 
Austrian  empire.    He  retired  from  the  public  service  of  his  oou 

1861,  receiving  the  thanks  of  his  sovereign  and  the  highest  pensi< 
mitted  to  be  granted  in  Austria  to  a  public  servant,  and  at  the  tin 
this  concession  was  granted  he  had  ceased  to  be  a  minister  of  the  < 
Mr.  J.  O.  Lever  iivas  well  known  as  a  promoter  of  the  Galway 
packets,  and  M.P.  for  G^way,  and  for  some  time  past  he  had  int 
himself  in  promoting  matters  of  interest  to  this  country,  and  also  I 
Mr.  Lever  having  become  acquainted  with  Baron  de  Thierry,  was  d 
of  promoting  and  establishing  the  English  banking  sjrstem  in  A 
In  Austria,  it  appeared,  there  were  only  seven  banks,  with  their  br 
whilst  there  were  in  Great  Britain  something  like  12,000,  and  it  o< 
to  Mr.  Lever  that  it  would  be  very  desirable  to  introduce  the  I 
banking  sjrstem  into  Austria.  The  Emperor  also  appeared  equa 
sirous  that  it  should  be  done  ;  and  after  considerable  oommunicatio 
taken  place  between  Mr.  Lever  and  the  Austrian  government,  t 
Baron  de  Thierry,  the  Austrian  government,  on  the  8th  of  Dec 

1862,  granted  a  preliminary  concession  to  Baron  de  Thierry  ai 
Lever,  authorising  them  to  take  steps  for  the  formation  of  a  ban 
ject  to  two  conditions — first,  that  proof  should  be  given  that  the  net 
means  would  be  forthcoming  for  carrying  on  the  bank  at  Vienna 
secondly,  that  the  draft  of  the  statutes  should  be  framed  according 
Austrian  laws,  the  statutes  being  what  are  called  in  this  count 
deed  of  settlement,  or  articles  of  association.  Having  obtained  ti 
liminary  concession,  it  became  necessary  to  provide  a  capital  for  carr 
out,  and  Mr.  Lever  put  himself  in  conmiimication  with  Lord  Fermo} 
for  Marylebone,  who  was  then  chairman  of  the  Metropolita 
Provincial  Bank,  and  the  result  was  that  it  was  determined  tha 
Fermoy  should  go  to  Vienna  and  see  the  authorities,  both  on  h 
behalf  and  those  with  whom  he  acted,  and  £200  was  advanced 
Lever  to  Lord  Fermoy  to  pay  the  expenses  of  this  mission.  A 
spondence  afterwards  took  place  between  Lord  Fermoy  and  Mr.  O' 
another  defendant,  on  the  one  side,  and  Mr.  Lever,  Baron  de  Thieri 
the  Austrian  government,  on  the  other.  In  Lord  Fermoy's  last  le 
the  Austrian  Finance  Miuister,  before  leaving  Vienna,  he  asked  to 
formed  whether  the  preliminary  concession  would  be  finally  oonf erre 
as  little  delay  as  possible  as  was  consistent  with  the  due  examinati< 
the  adaptation  of  the  statutes  to  the  Austrian  laws,  and  he  sent  a  c 
the  letter  to  Baron  de  Thierry.  The  Finance  Minister  replied  tl 
Austrian  government  would  grant  every  facility  with  regard  to  tl 
posed  banking  company  to  be  established  according  to  the  Austria] 
The  statutes  were  afterwards  prepared  and  approved  by  Lord  F< 
and  submitted  to  the  Austrian  government  in  February,  1863. 
principal  establishment  was  to  be  in  Vienna,  and  it  was  an 
that  the  president  of  the  bank  in  that  country  should  reo 
salary  of  £1,000  a  year,  and  Lord  Fermoy,  as  the  chairman  < 
English  bank,  £800  a  year.  Lord  Fermoy  and  Mr.  CByme  i 
the  preliminary  agreement  for  the  purchase  of  the  agre< 
though  it  was  evident  there  were  certain  capitalists  behinc 
cause  at  a  subsequent  period  Messrs.  Mastdrman  and  Co.,  and  'b 
Overend,  Gumey,  and  Co.'s  names  appeared  in  the  course  of  the  nc 
tions.  The  arrangement  entered  into  and  signed  by  Lord  Fermo; 
Mr.  O'Byme  was  that  they  would  pay  the  pliuntifif  £1,800  expense 
a  further  sum  of  £30,000,  half  in  caan  and  half  in  shares,  on  the  a 


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I 


UnUy  Bank. 


301 


ite  concet«ioD9,  and  within  30  days  after  tlie  allottneut  of 
bank.     Tliere  was  iilsu  ft  further  arrangement   btrtween 
ut  of  the  £;KI,(XH>  Li  id  J  Fermoy  and  Mr,  O' Byrne  ahould 
bringing  the  matt«r  »lx)ut,  and  procuring  the  assistance 
sarry  out  the  undertakiug.     The  next  step  was  to  submit 
the  AustriiiD  government,  and  a  pajn^r  was  accordingly  for- 
istriau  government  signed  by  Lord  Feniioy,  four  of  tli© 
ra.  Maaterman  and  Go's  bank  ;  the  lirokera,  Messrs.  Hill, 
J;    Mesfira.  Kekon,  Tritttm,  and  Co. ;   Mr.   Win.  Dent ; 
ad  Robertson ;  and  Messrs.  Robertiw^n,  Fleming,  and  Co, 
ibt  that  O'BjTTie  waa  acting  for  Meftsrs.  Overend,  Gumey, 
they  introducetl  the  matter  to  Messrs.  MjisteErmiui  ai^d  Co, 
lintiAs  were  authorixed  to  Uvke  the  uecefisarj  Bteps  for»©» 
,  aiid  a  prospectus  was  i&si)e<l  on  the  4th  or  5th  of  May,  and 
y  jEl,6<K)>U<J0  wsia  subscrilieti  for  out  of  the  capital  of  two 
he  1 1th,  more  than  the  whole  of  the  capital  had  been  snb- 
fiiderable  negotiation  the  definite  (xmceHaion  waA  gran  ted  on 
sr,  and  tlwsy  were  to  declare  the  names  of  the  c^ipitalista 
,  and  open  the  bank  within  tliree  montha,  but  which  wan 
led  to  Hii  months.    A  rletinite  pro«|»ectus,  with  thenarneii 
(ra?  issuc*<l,  and  an   allotment  of  shares  took  place ;  but 
-    ...  ,  ,,j  ijy  ^\^Q  3i.j  October,  the  Austrian  government 
rid  the  Aug k» 'Austrian  Bank  wa»  establinhed  in 
....  ..v.x  l>uj*inesa  in  the  prerni.%f^a  originally  intended  for 

ma.     The  plaintiffs  contende*i  that  they  had  perfonued 
h.if.'.Lni    riTHi  were  entitle<l  to  the  sum  sued  for. 

support  of  the  plaintiffs'  case,  which  wan 
character.      In    one  of    the  letters   Lord 
tihwi  as  "  71/'  for  tlie  purpose  of  telegraphing, 
on  uf  the  plaiutiiTs  ease, 

f  Justice  asked  Mr  Hjkwkins  whether,  on  the  part  of  the 
riM  rnateri&lly  alter  the  facts  of  the  case. 

vc  did  not  think  he  coidd ;  upon  that  the  Lord  Chief 
it  would  be  lietter  that  a  -verdict  should  be  entered 
[tu  the  amount  claimed  in  the  declaration,  aubject  to  the 
»urt  alM*vo,  im  a  af*eeial  case.  Tlie  Court  to  have  power 
iftgea  to  £20/MJ0  if  they  should  think  tit. 
Ltnael  on  both  sides  agree<l  to  thia  suggestion  ;  and 
Jien  entered  for  tiie  pliiintiflV  subject  to  the  opinion  of 
>D  a  special  C4ise. 


Reports  of  |oint-.$tocli  llunhs. 


THE  Ui^ITY  BANK. 

sharaliolders  of  this  bank  wa«  held  in  the  London  Tavern 

-^  -'  -  '         .M.J.  ^,|,e  recent  raitraorduiary  con- 

ta  and  powers  of  the  liquidatoiB 

h  hiat.     There  was  a  numeroua 

nation  ftpfie  fired  to  pervade  the 

,.,,,..,;..,      .    .;.^    .._.,  IS.     Dr.  C«M>k,  chairman  of  tb© 


I  , 


302  Tfnity  Banh 

committee  of  liquidators,  was  called  to  the  ohairy  and  the  notice 
ing  the  meeting  having  been  read, 

The  Chairman  proceeded  to  say  that  he  yety  much  regretted  tl 
any  necessity  for  calling  them  together  again  upon  what  he  might  t 
Unity  Bank  swindle,  but  the  extraordinary  conduct  of  the  dired 
rendered  it  imperative  upon  him  again  to  call  upon  the  sharehc 
public  meeting  assembled  to  consider  the  position  of  their  afifairs. 
the  bank  stopped  payment,  they  would  remember  that  the  direcU 
the  only  liquidators,  and  for  eighteen  months  they  never  called 
public  meeting — they  never  offered  any  explanation  of  their  oo 
they  never  gave  the  shareholders  the  least  idea  of  the  progress  tL 
making  in  winding-up  and  realising  the  assets  of  the  bimk.  At  las' 
patience  became  exhausted — a  requisition  was  made  to  them  t 
public  meeting,  and  in  February  last  a  meeting  was  called,  at  wl 
Alderman  Mechi  proposed  there  should  be  a  committee  of  liquid 
behalf  of  the  snareholders  appointed  to  assist  the  directors  in  the  ^ 
up  of  the  affairs  of  the  bank.  That  proposal  was  unanimously 
to.  He  was  so  anxious  to  have  the  transactions  of  the  bank  legs 
properly  carried  out  that  he  waited  upon  the  solicitor  next  mon 
inquired  whether  the  appointment  that  had  been  made  was  legi 
reply  was  distinctly  in  the  affirmative.  When  the  liquidators  cs 
office  they  foilnd  that  there  were  a  great  many  persons  who  owed 
to  the  bank  who  had  not  been  called  upon  to  pay  it,  and  also  tb 
were  many  favourites  of  the  bank  who  had  not  been  called  upo; 
the  interest  they  owed.  The  liquidators,  however,  set  to  work 
earnest,  and  in  a  short  time  compelled  those  persons  to  pay  in  £! 
account  of  money  owing,  and  the  favourites  were  in  like  manner  oc 
to  pay  up.  They  also  examined  a  bill  of  the  London  and  M 
Bank  of  £6|000,  from  which  they  took  off  no  less  than  £3,40C 
found  that  the  security-book  of  the  West-end  branch  had  been  1 
that  many  of  the  securities  which  had  been  given  were  not  entere 
security-book  at  the  chief  office.  In  consequence  of  their  efforts  tt 
able  to  call  a  meeting  of  shareholders  in  September  last,  and  re 
them  £3  a  share,  after  paying  all  the  debts  of  the  bank.  (Hea: 
But  the  liquidators  had  also  discovered  that  the  directors  had  recei 
without  the  sanction  of  the  shareholders,  and  they  had  oommen 
ceedings  against  them  for  the  recovery  of  that  money.  The  direci 
pleaded  giultv  to  the  last  amount  of  £50,  but  with  regard  to  the  r 
had  pleaded  the  Statute  of  Limitations.  (Cries  of  '^  Shiune."^  He 
that  the  directors  had  proved  themselves  incompetent,  incapal 
neglectful  as  directors  and  as  liquidators.  (Cheers.)  The  liquids 
in  a  short  time  after  their  appointment  returned  £3  a  share,  ani 
Boon  have  woimd  up  the  affair  if  they  had  been  seconded  by  the  d 
They  had  also  instituted  proceedings  against  the  late  manager  ai 
tary,  not  only  to  show  that  their  position  was  an  important  one,  i 
they  could  not  violate  their  trust  with  impimity,  but  also  to  pi 
bona  fides  of  the  liquidators  to  the  Guarantee  Society,  which  was 
lor  the  manager  and  secretary  to  the  amount  of  £3,000.  After 
the  document  issued  by  the  direotorss,  of  which  an  abst] 
already  been  published  in  the  Bankers*  Magazine^  the  d 
said,  in  order  to  prevent  the  shareholders  from  being  thro 
Chancery  the  liquidators  had  resigned.  They,  however,  kne 
the  shareholders  ought  to  do,  wluit  money  they  ou^ht  to 
and    they,    the   liquidators,    would  wateh    their  proceedings   i 


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803 


h^ar.)  The  directors  were  now  trying  to  tbrow  on  tlio 
enae  of  pr^ie^cuting  the  late  manager  and  secretiury.  At 
ch  the  prosecution  was  decided  upon,  ;ilthougU  they  did 
'  did  not  vote  agaiiiBt  it ;  on  the  contrary,  thuy  entirely 
were  as  much  jmrties  to  that  proeecntion  a&  the  liquida- 
xth  was,  the  excufk)  wafl  a  mean  and  paltnr  one  un  the 
B.  They  wanted  the  pmceedingB  against  tnemflelves  io 
as  thote  against  the  seoretary  and  manager,  and  they 
sxaminAtion  at  the  Old  Bailey ^  which  they  would  be 
1  to,  Mr.  Hoywoo<],  one  of  the  directors,  waji  also  a 
fiwtee  Society,  which  waa  surety  for  the  late  manager 
t  could  assure  the  meeting  that  if  they  ilid  not  get  tho 
three  mouths^  and  have  £3  a  share  more  back,  if  the 
and  tbeir  affairs  w<  re  thrown  into  Chancery,  they  would 
Bctors  and  not  the  liquidators  to  blame  for  it.  Dr.  Cook 
□g  a  resolution  in  ac<5ordan(»  with  hia  statementH,  and 
le  conduct  of  the  directors  in  repudiating  the  acts  and 
datoiB  rendered  it  necessary  in  order  to  save  the  bank 
intoCliancery  that  these  gentlemen  shoidd  resign  their 
^rs,  and  they  tendered  their  resignation  aocordingly. 
:ed  if  it  would  not  be  bettor  if  Bomo  one  else  moTed  the 
>f  the  ohairman, 
duly. 

1,  a8  one  of  the  liquidat<irs,  he  begged  to  second  the  re* 
Log  80  to  state  that  the  liquidators  were  going  on  satis- 
irinding-up,  when  tht^y  were  suddenly  stopped  in  their 
?  of  the  directors.     (Hear,  hear.)     He  wfis  happy  to  say 
chi  waa  not  at  the  meeting  at  which  the  resolution  was 
irectors,  and  that  he  WlL<^hed  his  hands  of  it.     He  wna 
'1  .auMe  be  had  8tate<l  on  fi»rmer  occasions  that  though  in 
laan  liad   sliowu   we^dLueas  and  sometimea   acted 
him  to  he  actuated  by  tlie  be«t  motives,  and  that  he 
5  bewt  intentions,    (Hear,)    The  three  direi'toni  who  hiwl 
inn  VFPTC  T>i  piity  Bower,  Mr.  Eyre,  and  Mr.  Heywood, 
M  who  were  determined  to  set  aside  the 
i>ank.   With  regard  to  the  letter  they  had 
511  justificatioD  of  their  conduct,  he  thought 
of  which  much  of  it  conaisted,  and  its  state- 
rs w  ith  which  every  shareholder  was  familiar  before, 
ro  gone  a  little  further  back,  and  tohl  how  it  was  that 
fbe  Viank  waa  umler  their  direction  th^  bad  lost 
i-Qp  capital,  and  had  then  remaining  only  the  paltry 
hould  like  to  have  some  expliinutions  respecting 
aheet  miule  up  in  December,  1862,  which  stated 
*    *!.;     fiireholders^  and  yet  during  the  pericnl  in 
\o  l>een   lield^  and  MiW^ijuently  to  that 
.»^.  ..,  ..;.i  not  t*^ll  the  wliareholders  of  the  loswes 
He  nhould  like  Uy  know  how  it  waa  that  when 
'  In  "Id  a  meeting  in  February  of  last  year,  it  waa 
indleti  down  to  little  more  than  £40^0cK),  and 
t  ,if    i\u'    f'Minn  due  to  tha  ghareholdtirw  who 
ilesex  Bank.     AjL?:tia,  when  the 
loy    were    lold    that    though  no 
i  h^^pmtsd^  cmly  aUmt  iC8,CK)0  would  be  reeeived  for 


304  Unity  BanJc. 

tho  Unity  shareholders;  they  did  not  declare  positively  that  ev 

Bmall  amount  would  be  paid ;  but  they  promised  fair,  though  he  1 

that  these  promises  and  statements  would  have  turned  out  lil 

that  preceded  them,  and  he  sincerely  believed  that  but  for  the  j 

inent  of  a  shareholders'  audit  committee  and  their  report,  whicl 

the  appointment  of  a  committee  of  liqiiidators,  that  instead  of 

they  would   not   have  been   paid  £1,000,  while  the  liquidaton 

months  had  realised  not  £8,000,  but  £10,000.     (Cheers.)     In  add 

this,  a  claim  of  £4,400  on  the  bank  had  been  settled  by  the  liq 

for  £1,000.     (Hear,  hear.)     The  directors  would  never  have  found 

unjust  and  unfounded  nature  of  that  claim,  because  they  said  tl 

bad  been  ticked  ofT  and  verified  by  their  accountants,  Harding, 

iuid  Co.,  and  therefore  the  whole  of  that  sum  would  have  been  pai 

detriment  of  the  shareholders.     He  would  say  further,  that  if  tl 

ilators  had  known  as  much  of  that  claim  at  the  time  it  was  settlec 

smaller  amount,  they  never  would  have  paid  one  farthing  of  it, 

it  had  been  since  ascertained  that  the  amount  placed  to  the  debi 

Unity  Bank  might  as  well  have  been  placed  to  the  accoimt  of  a 

Kew  Zealand  or  Australia.     (Hear,  hear.)     The  directors  had  ne 

a  single  book  of  entry  in  their  own  bank  of  this  daim.    It  wae 

a  pass-book  with  another  bank,  and  they  never  rendered  an  ao 

it  until  the  liquidators  demanded  it.    Tet  these  were  the  men  t 

turned  round  upon  the   shareholders  and  repudiated  the  acts 

powers  of  the  liquidators  appointed  by  them,  who  said  that  T< 

Burch  must  not    be  prosecuted  without   their  consent,   and   ¥ 

pleaded  the  Statute  of  Limitations  as  a  bar  to  the  claims  that  i 

made  upon  them  for  repayment  of  the  sums  lost.      He  believ 

however  much  that  statute  might  be  a  bar  in  a  common  law  < 

would  not  be  a  bar  in  a  court  of  equity,  or  it  would  have  been 

before  this  time.     It  was  very  well  for  the  liquidators  to  say  t 

resigned,  but  the  fact  was  they  had  been  deposed.     The  dired 

power  to  do  so  by  the  terms  of   the    royal   charter,  but  for 

the  liquidators  were  duly  appointed  at  a  legally  constituted  me 

the  shareholders,  and  in  repudiating  them  the  directors  were  like 

piidiating  the  acts  of  the  shareholders  themselves.     (Hear,  hear.] 

directors  thought  themselves  justified  in  that  course,  why  did 

call  the  shareholders  together  within  fourteen  or  fifteen  days,  i 

their  views  on  the  matter  1     (Hear,  hear.)     But  that  did  not  si 

They  now  contended  that  this  meetmg  not  being  called  by  them,  i 

Btiven  instead  of  fourteen  days'  notice,  they  were  not  bound  to  s 

they  wouM  not  honour  it  at  all  by  their  presence,  and  if  the  liq 

proceedecnurther  they  threatened  to  go  to  the  Court  of  Chancer] 

for  powers  to  wind  up  the  bank  out  of  the   court.     If  that  v 

Air.  Howell,  the  able  accountant  of  the  liquidators,  would  be  de 

well  as  the  friends  of  the  directors.     Messrs.  Harding,  Pullein, 

would  be  called  in,  a  fresh  set  of  expenses  would  be  incurred,  and 

of  the  shareholders  getting  anything  back  there  would  be  a  call  up 

to  make  up  their  quota  of  these  expenses.    It  was  to  prevent  th 

that  the  liquidators  felt  called  upon  to  resign.     (Hear,  hear.) 

Mr.  Sutton  said  before  the  resolution  was  put,  that  he  was  » 
taken  by  surprise  at  the  course  which  had  been  taken  on  that  < 
He  must  say  that  he  hoped  the  resolution  which  would  deprive  tl 
holders  of  the  most  valuable  services  of  the  liquidators  would  not  I 
to  without  some  careful  thought,  and  that  the  liquidators  tb< 


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^y  Bank.  305 

Hear,  hear.)  It  appeared  to  him  that 
K)rs,  which  would  be  of  great  use  to  the 

•s  felt  much  obliged  for  the  compliment, 
r  would  be  thrown  into  Chancery  the 
evil  that  would  be  inflicted,  bf)th  upon 
le  committee  of  liquidators,  that  they 
;ion.     They  thought  it  would  be  a  great 

property,  that  they  should  see  it  melt 
Court  of  Chancery.  The  Londtm  and 
,  and  Mr.  Eyre's  bill  of  costs  would  eat 

To  throw  the  affairs  of  this  bank  into 
ive,  and  malignant  act.     (Cheers.) 
told  that  meeting  was  iUegaL     If  so, 
liquidators  at  it  be  illegal  \      (Hear, 

e  solicitor  and  adviser  of  a  client  who 
at  his  side,  he  could  not  say  that  he 
le  liquidators  that  day  any  more  than 
If  any  fault  could  be  found  with  the 
his  opinion,  that  they  had  wasted  so 
L  game,  instead  of  aiming  higher  than 
nderlings.  (The  Chairman. — "  That's 
ear  that  for  the  liquidators  entirely  to 
be  for  the  public  interest — (hear,  hear) 
dd  rather  have  a  few  pounds  less  out 
bo  had  been  engaged  in  what  had  been 
let  off  without  adequate  punishment, 
the  liquidators  should  continue  their 
IS  liquidators,  as  a  committee  of  vigi- 
aer  it  was  possible,  as  he  (Mr.  Merri- 
iirectors  recoup  the  losses  of  the  share- 

b. 

3  pleading  the  statute  of  limitations  in 
the  presence  of  professional  men,  who 
;hat  there  was  no  statute  of  limitation 
iary  relations  had  been  created,  even  if 
»et8  could  be  followed  and  realised 
\  the  liquidators  felt  bound,  for  their 
should  not  trust  to  vague  promises  on 
\  clear  written  contract  from  them  as 
were  to  be  realised.     (Cheers,  and  cries 

it  out  ? ") 

did  not  see  how  they  could  escape  re- 
;,  they  would  be  immediately  put  in 
ome  one  in  that  room  who  woidd  im- 
t  to  the  directors,  and  for   aught  he 

be  in  Chancery.  He  did  not  see  his 
le  shape  keep  together  as  a  committee 
tiareholders,  were  it  not  for  the  question 

the  liquidators  not  to  come  to  a  hasty 
lays  more,  and  give  notice  of  a  legally 

25 


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Unity  Bank, 


constituted  meeting  of  the  shareholders^  to  which  they  could  oamixi 
their  ultimate  decision. 

The  Chairman  said,  by  resigning  and  avoiding  Htjgatton  there 
Bhortly  be  a  dividend  of  ^  on  each  share. 

Mr.  Hawkins,  so  far  from  feeling  convinced  by  that  reason, 
Hither  put  his  hands  into  his  pockets  deeper  to  pay  for  prosecul 
really  guilty  parties.  (Hear.)  He  did  not  believe  the  liquidatt>: 
legally  resign  at  that  meeting,  and  they'  had  better  let  the  matt< 
over.  He  should  be  sorry  to  think  of  their  resignation,  even  if 
legal,  for  he  was  sure  the  meeting  felt  deeply  indebted  to  them 
cfturse  they  had  taken  in  the  matter,  and  for  their  valuable 
hitherto.  As  to  going  into  Chancery,  he  did  not  think  the  director 
dare  to  do  so. 

Mr.  Proctor  said  they  were  in  this  difficulty,  that  under  the  Royi 
tcr  any  meeting  called  with  fourteen  days'  notice  to  be  legal  i 
culled  by  the  directors.  If  any  one  present  on  the  part  of  the  d 
w<  »uld  give  an  assurance  on  their  behalf  that  they  would  call  a  i 
tViat  would  get  rid  of  the  difficulty. 

Mr.  Bazin  said,  as  the  partner  of  Mr.  Alderman  Mechi,  he  wiut  s 
ho  jiiight  state  that  he  would  agree  to  a  meeting  being  called.   (Hea 

Mr.  Josiah  Merriman  suggested  that  the  beat  course  woiild  be  : 
qiiisition  to  be  signed  from  that  meeting  requesting  the  directors  to  c 
Til  meting.  If  Alderman  Mechi  consented  to  call  that  meetiugj  and  t 
directors  refused,  and  afterwards  went  to  Chancery,  he  ditl  not  beli 
any  Vice -Chancellor  would  allow  them  to  proceed.     {Cheers. ) 

A  Proprietor,  as  a  shareholder  and  member  of  the  bar,  Kiiid  he  o 
ill  tlie  view  just  taken  by  Mr.  Merriman ;  and  further  urged  that  Vi 
litjuidators  continued  in  their  corporate  capacity  they  cotdd  appeaj 
the  Court  by  counsel.     (Hear.) 

Mr.  Bazin  said,  on  his  own  behalf — and  he  migbt  say  for  AJ 
Mechi,  although  not  instructed  specially  on  the  suhjeefc — that  hi 
wjiB  to  act  with  the  shareholders  and  liquidators  in  every  question  i 
their  interests  ;  and  further  that,  notwithstanding  his  alrendy  heav 
the  alderman  was  quite  prepared  to  pay  up  any  proT*,'*^]  claim  up 
The  alderman  had  always  supported  the  liquidators.  He  (Mr.  Baj 
supported  them  ;  they  had  done  much  good,  and  it  would  be  th 
tiling  in  the  world  for  them  now  to  resign.     (Hear,  bear.) 

The  Chairman  here  read  a  number  of  letters  urging  the  liquid 
proRecute  the  directors,  who  were  stigmatised  in  langtiitge  which 
of  libel  forbids  reporting;  and,inde^,  many  of  the  speakers  i 
freely  in  similar  terms. 

Ultimately,  on  the  suggestion  of  Mr.  Merriman, 

Mr.  Hawkins  moved,  and  Mr.  Sherwood  seconded,  the  foUowing 
tiun  : — "  That  the  directors  be  requested  to  call  a  public  legal  mte 
the  shareholders  forthwith,  to  consider  the  recent  citraonMnary 
of  the  directors  in  repudiating  the  acts  and  powers  of  the  licji 
appointed  by  the  proprietors  on  the  16th  March  last ;  alao  to  ti 
oonsideration  the  prosecution  of  the  late  manager  and  secretary 
bank." 

In  a  conversation  which  ensued  as  to  the  course  to  be  pursued 
latter  question, 

The  Chairman  explained  that  the  liquidators  were  bound  over 
sec^te,  and  that  the*  case  would  probably  come  before  the  grai 
that  day  in  the  Central  Criminal  Court. 


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AnfjlO'Italian  Bank,  '    307 

3xpression  of  a  determination  to  support  them,  if 

3  costs.     The  motion  for  the  resignation  of  the  liqui-  j 

vUy  and  the  resolution  was  unanimously  agreed  to.  ' 

cordial  vote  of  thanks  to  the  liquidators  for  their 

lable  services,  which  was  seconded  by  Mr.  Sorter,  ; 

1  amidst  great  applause. 

and   Mr.  Lambert  seconded,  "That  the  meeting  } 

lay,  at  twolro  o'clock,  to  receive  the  reply  of  the  ! 

r  business  as  might  be  necessary."  j 

•.  Sutton,  seconded  by  Mr.  Kench,  it  was  unani-  * 

the  best  thanks  of  this  meeting  are  due,  and  are  ' 

Oswald  Howell,  the   accountant,  for   the  valuable  [ 

i  the  liquidators  in  winding  up  the  atfairs  of  the  ; 
n  the   criminal   prosecution  of  the  late  manager 

ion  waa  also  carried  by  acclamation  : — ^  That  the  [ 

bing  be  tendered  to  Dr.  Cook  and  the  rest  of  the 
r  the  shareholders,  for  the  eminent  services  which  ^ 

tously  rendered  to  their  brother  shareholders  in 
)f  the  bank,  and  particularly  for  their  spirited 
the  prosecution  now  pending  against  tlie  late 
■  the  bank,  and  in  exposing  the  moans  by  which  con-  1 

of  the  paid-up  capital  of  the  bank  has  been  wholly  I 

1  to  conceal  the  fact  from  the  shareholders ;  and 
illy  approves  and  sanctions  the  steps  which  the 
tnd  urge  them  to  continue  such  prosecution  if  pos- 
Jheers.)  I , 

ti  were  of  a  very  animated  character,  then  termi-  I 

I 
3g  was  held  on  the  3rd  February,  Dr.  Cook  in  the 
meed  that  the  direct<jrs  had  agreed  to  call  a  meet- 
ary  arrangements  oould  be  mstde  with  Mr.  Alder- 
Q  of  the  bank.] 


NGLO-ITALIAN  BANK. 

ral  meeting  of  shareholders  was  held  on  the  30th 
Tavern,  Mr.  John  Lubbock  presiding, 
ras  read : — 

he  pleasure  of  submitting  to  the  proprietors  the 
leet  of  the  Anglo-Italian  Bank.  Aithough  the 
ded  to  your  Directors  the  necessary  permission  to 
I  the  legal  formalities  consequent  thereon,  together 
ling  suitable  offices,  and  competent  managers  for 
were  productive  of  considerable  delay,  so  that 
dy  opened  for  business  on  the  Ist  October,  and  the 
Lst  December,  1864.  A  branch  will  be  opened  at 
nd  the  Directors  also  intend  to  commence  busi- 
possible,  a  manager  and  staflf  having  been  already 
'  the  power  given  them  by  the  Articles  of  Asso- 
)  appointed  local  committees  for  Turin  and  Milan. 
,  representing  some  of  the  most  influential  firms 
anted  to  act  in  this  capacity ;  viz.,  for  Turin — 


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Anglo-Italian  Bank. 


« 


Sigr.  Giuseppe  Duprd  (Dupr^  pSre  et  fils) ;  Sigr.  VincjeriKo  Deniii 
( iaetano  Piaggio ;  Sigr.  Gaetiuio  Spinelli  (Fedele  Bem^i  and  Co.) 
Milau — Sigr.  Giulio  Belinzaghi;  Sigr.  Pietro  Brambilla  (Braml 
Oo.)  ;  Sigr.  Giuseppe  Oneto  (Oneto,  OavajaDi  and  Co.) ;  Sigr,  i 
Noseda  (Noseda  and  Burooco).  The  Directors  think  themaeh 
fortunate  in  having  secured  the  co-operation  of  these  geDtlemeu.  1 
jiTofits  up  to  the  31st  December  have  amounted  to  £26,102  6ji,  7d, ; 
ing  £8,420  65.  5(2.  for  expenses,  and  £4,662  ISa.  4(2.  for  reliattj^at  7 
]>er  annum,  there  remains  a  sum  of  £12,029.  7s.  lOd.,  out  of  wh 
the  payment  of  6».  "per  share  by  way  of  interest,  free  of  income  t 
at  the  rate  of  rather  more  than  6  per  cent,  per  aaminiy  amou 
£5,500. 10«.,  your  directors  recommend  that  £2,831. 13.'<.  hi.  be  w 
from  preliminary  expenses,  and  £2,000  placed  to  a  reset  vu  fund,  ] 
balance  of  £1,697.  4».  9d.  undivided  profit  to  be  carried  to 
accoimt.  In  exercise  of  the  power  conferred  on  the  bo^u-d  by  the 
of  association,  the  Directors  have  added  the  following  gentloniei 
number,  viz. : — Sir  J.  P.  Lacaita,  K.C.M.G.,  Member  of  tlu>  Ital 
1  lament;  Sabino  Leonino,  Esq.,  of  the  firm  of  Leoulno  Bm 
(lenoa ;  and  Commendatore  Devincenzi,  President  of  thi^  Iloyal 
8  ion  for  the  Cultivation  of  Cotton  in  Italy,  and  MemVter  of  th 
I'arliament.  Sir  Jas.  Hudson,  J.  Lubbock,  Esq.,  and  R.  Bene 
retire  from  oflEice  by  rotation,  but  are  eligible,  and  oflbr  thems 
re-election.  The  aocoxmts  have  been  audited  by  Mr,  Tucker,  A 
the  Pelican  Life  Insurance  Company,  and  Mr.  A.  Ricardo,  ^PP^ 
the  council  for  that  purpose.  It  will  rest  with  the  proprietors  to 
auditors  for  the  ensuing  year." 

Balance-sheet,  December  31, 1864. 

2>r,  CAFITAL  AMD  LIABILITIES. 

Capital  called  up,  viz.  £10  per  share  on  20,000  shares  £200,OCN3 ; 
less  amount  on  1,665  shares  unallotted  £16,650;  and  ar- 
rears on  first  call  £14,610 m 

Bills  payable,  current  and  deposit  accounts  and  letters  of  cre- 
dit   ...      .*•      ..•      •••      •••      «••      «.•      .••      . 

Profit  and  loss  account  as  per  annexed  statement 


...     £168,1 


122,.^ 
25,1 


Cr. 

PROPESTT  AlTD  ASSETS. 

Cash  in  hand,  at  bankers,  and  on  deposit 

Bills  receivable,  bills  discounted,  loans  and  other  investments 

Bank  premises  and  furniture     • 

I'rfdiminary  expenses 


Dr. 


PBOFIT  AMD  LOSS  ACCOUST. 


Current  expenses,  including  salaries,  directors'  remuneratioTi, 
stationery,  advertisements,  rent  in  London  and  at  tLe 
branches,  income  tax,  and  other  charges 

Kebate  of  interest  on  bills  discounted  and  not  due,  taken  at  7 
per  cent,  per  annum   ...      «. 

Balance  carried  down       •      ...      ,.. 


£316,1 


26 1. 'i 

14,0 

£S16J 


£8,4 

4,6 
12,U! 

£25,H 


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Angh'Italian  Bank* 


309 


X25,102     6    7 


6*.  persbsirG •      *« 

aaiomit  wriUea  off  

Miried  to  ...       

lad  pioUt  ciuTied  to  new  Acootmi 


pioBt  oamed  to  new  Aoooimt 


15.500  10  1 

2,831  13  0 

2,000  0  0 

1,697  4  9 


£r2»021> 

7 

10 

£12,02^ 

7 

to 

£l,Gy7 

4 

9 

igrAtalnted  the  meeting  npon  the  present  position  of 
Ji»t  year  they  haul  had  to  psww  through  very  difficult 
f  iutereat  had  been  unnflunUy^  and  he  might  almost 
r,  liigh,  and  of  ocmme,  as  resulting  from    that,   the 
Lad  been  large  ;  but  they  bad  unfortunately  seen  some 
rofitM,  ht>wever  large,  had  been  more  than  swallowed 
laes.     He  was  happy  to  say  that  that  had  not  heen  the 
lar) — they  had  been  able  to  secure  the  a^l vantage  of 
preyailed,  and    haiJ  not  aa  yet  made  any  bad  debta* 
expenses  of  a  bank  at  first  were  neoeftaanly  unuAualLy 
*  managers,  oflicers,  and  a  Jttaff  not  proportionate  to 
Y  l>eing  done,  but  to  that  which  they  might  fairl^^  hop© 
k  great  deid  of  the  lab4>ur  at  the  or.mm  en  cement  con- 
r»n,  which,  though  bringing  no  immediate  profit,  waa 
tauoe,  for  upon  that  defK-'uded  in  the  greatest  measuie 
rity  of  an  institution.     He  would  not  attvtupt  t^  cum* 
►rn  were  a  little  di«appr»inted  as  to  the  amount  of  bnai- 
)ne  up  to  the  present  time,  though  he  did  not  think  any  of 
n*^  that  a  large  profit  would  have  been  r^aliaeil.   Circum- 
l  the  org*uiisation  of  their  efltabliBhmcnt.      Before  any 
»ohl  ]^*^  transacted  in  Italy,  it  was  necessary  to  obtain  a 
II  they  had  every  reason  t^i  thank  the  Italian  Govem- 
with  wldch  their  decree  had  been  given,  the  con- 
iuin  in  which  it  was  to  be  drawn  up,  and  other  ques- 
h  it,  ha«i  caused  deky,  and  it  wna  not  till  the  close  of 
inil  been  able  to  begiii  buainefls.      They  then    f<.aind 
ling  suitable  olHcea.     TUl  within  the  last  few  years 
'     f  town  in  a  «mall  state,  but  owing  to  tho  con  fi- 
ll  wliich  she  was  regarded  throughout  Italy j  she 
rlie  P„,  u.  I   ^f  t\  great  monarchy.     Recently,  and 
r  r  I    It  J  n  place, and  though  of  course,  Turin 

and  regret  the  change  of  capital 
!  L^  the  magnanimity  and  patriotism 
id  abandontNl  for  the  gtH-Kl  of  their 
liave  hopeil  to  i-et^dn  at  lejwt  for 
ill  that  might  take  place  in  Turin  a 
I  ne^i«sarily''too  smidl  when  it  became  the  capital  of  a 


Digitized  I 


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310  Anglo-Italian  Bank. 

great  kingdom  like  Italy,  and  then  the  compaQy  had  found  ditB 
obtaining  offices  suitable  for  the  business  they  hoped  ki  carry  o 
Another  diffioulty  had  been  in  obtaining  managers.  The  him 
banking,  as  carried  on  in  this  coimtry,  was  not  T?ell  umk^i^tood  j 
and  of  those  here  who  were  perfectly  couyersant  with  the  bu.^iiie 
were  not  many  who  were  familiar  with  the  Italian  langirage.  Unc 
circumstances  it  was  proposed  to  have  in  each  of  the  lirandied  a 
having  a  knowledge  of  the  business  of  the  country,  and  the  sta: 
firms  there,  and  to  associate  with  him  a  gentleman  of  standing 
country  who  was  well  acquainted  with  the  English  banking  ayst< 
virtue  of  the  powers  conferred  upon  the  directors  they  had  fill« 
board  by  the  election  of  Sir  James  Lacaita,  a  gentleinim  well  k 
Italy  and  in  this  country,  Signor  Leonino,of  the  firm  of  Lemiiuo  B 
and  Oommendatore  Devincenzi,  a  member  of  the  Italinii  ParUaxui 
a  gentleman  of  the  highest  standing.  To  avoid  the  rink  of  heftv 
local  committees  had  been  elected  for  the  two  branches  in  opent 
in  that  way  had  received  the  co-operation  of  some  of  the  most  inJ 
firms  of  Turin  and  Milan.  The  directors  would,  have  been  glad 
begun  with  one  branch,  and  when  they  had  in  that  way  felt  theii 
have  gradually  extended  their  operations  to  other  Italian  cities,  b 
found  it  necessary  to  commence  business  at  Turin  becauae  that 
capital  of  the  kingdom,  and  they  also  found  it  imposHible  to  giv^ 
tnal  to  any  banking  in  Italy  unless  they  were  to  o^uti  at  Mi 
Naples,  where  they  might  expect  eventually  the  most  prolitulde  1 
to  be  conducted.  They  found  it  necessary,  therefore,  to  ct*mmei 
three  offices,  and  the  change  of  capital  which  was  ak'ut  to  tal 
obliged  them  to  open  a  branch  at  Florence.  They  did  not  i^rtvpoee 
aay  other  branches  until  they  had  experience  of  these,  tliough  thi: 
many  other  cities  in  Italy  at  which  they  hoped  eventually,  ani^ 
long,  to  establish  themselves.  Of  course  the  change  of  capita 
Turin  to  Florence,  however  advantageous  for  the  kingdom  ( 
generally,  could  not  be  effected  without  considerable  Iob.4  fallii 
certain  institutions ;  and  it  had  been  stated  in  newspa|H)ra  t] 
Anglo^Italian  Bank  had  been  one  of  the  principal  sufferers.  That 
entire   mistake — ^they  had  suffered  no  loss  whatever    by  the 

gLear,  hear.)  In  the  course  of  the  year,  in  cou junction  w 
temational  Financial  Society,  they  had  brought  out  the  Italia 
Company,  and  as  some  of  those  present  might  be  fiharehuMers 
company,  he  might  mention  that  the  anticipations  of  it^  buard  h 
fully  realised,  and  that  the  concern  was  in  a  prosperous  conditi 
womd  no  doubt  prove  very  profitable  to  those  who  had  iuvet^to 
money  in  it.  The  bank  directors  had  decided  to  receive  dejHi&i 
The  rate  of  interest  was  generally  higher  in  Italy  than  in  this  c 
and  though  they  did  not  feel  disposed  at  present  to  take  niouey 
they  were  willing  to  receive  deposits  for  periods  of  not  k^s^  thf 
months,  allowing  at  the  present  bank  rate  5  per  cent.  The  i 
ment  of  auditors  for  the  past  yeai*  rested  with  the  dirt^^cto 
they  had  appointed  Mr.  Tucker  and  Mr.  A.  Eicardo,  and  those 
men  were  perfectly  satisfied  with  the  form  in  whicli  tho  acoom 
presented.  He  wished  to  say  a  word  as  to  the  circum^tanci^  wh 
induced  the  belief  with  the  directors  that  the  bank  was  likely 
large  and  profitable  business.  They  did  not  point  [larticularl^ 
receipts  of  the  past  year,  because,  satisfactory  though  they  wuri>,  th 
still  but  the  transactions  of  so  short  a  period  maX  it  was  not 


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AnijlO'Italian  Bank.  311  '  ; 

them.     It  was  not  because  they  had  been  success-  '•  '; 

fvr  that   he  thought  they  ir.ight  hope   to    be  so  in  f 
ither  upon  general    principles.     He    believed    that 
ing  which   had    been   brought  to   such  great   x>er- 

;ry  would  be  of  great  importance  and  gi-eat  benefit  * 
wliich   it   was   adopted ;    he  thought  it  might   be 

,  and  for  that  reason  he  tliought  this  company  was  j 

successful.    (Hear,  hear.)    The  profits  which  a  bank  j  '    ■ 

)lder8  had  been  a  very  small  part  of  the  advantage  ; 

ired  to  the  public  ;  in  fact,  they  were  but  incidental  I 

tages — the  real  advantage  being  that  it  made  the  i  | 

r  more  productive,  that  it  facilitated  circulation,  and  1 

I.     In  1844  the  exports  of  this  country  amounted  to  V 

>  circulation  of   bank   notes  upon   the  average  to  \  \ 
ear  our  exports  had  increased  to  the  enormousr  sum- 
ret  the  bank  notes  had  actually  fallen  to  £20,600,000. '  " 

ther  and  analysed  these  results  they  would  be  found  !  ^ 

rkable.     There  was  a  kind  of  superstition  with  the 

>  of  cheques,  and  people  would  rather  waste  two  hours  *  : 
m  in  cab  fare  to  make  a  payment  which  could  be 

lomically  paid  by  a  cheque  through  the  post.     The 

mount  of  small  notes  had  considerably  increased.    It  ' 

e  coin  in  circulation  in  1844  was  £40,000,000,  whereas  ' 

was  £100,000,000.    He  had  not  examined  the  calcu-  1  ^ 

those  figures  were  based,  but  as  regarded  the  notes 
rmation.  The  authorities  of  the  Bank  of  England 
it  the  small  notes  of  from  £5  to  £100,  which  in  1845 

,000,  had  risen  in  1864  to  £17,100,000,  showing  an  ;  ;* 

0,  but  the  large  notes  of  from  £200  to  £1,000,  those 
used  in  commerce,  had  actually  during  the   time  , 

ierably,  namely,  from  £4,900,000  to  £3,500,000,  or  in 
Thus  while  the  commerce  of  the  country  was  rapidly 
able,  owing  to  the  increased  facilities  for  banking,  I 

leaper  than  they  were  able  to  carry  on  the  propor- 
erce  which  they  were  doing  twenty  years  ago.  (Hear, 
ne  other  point  of  view  which  would  show  this  even  * 

order  to  get  an  idea  of  the  extent  to  which  cheques 

to  the  transactions  of  the  banks  some  days  of  last  .  ' 

was — taking  a  total  of  the  transactions  of  £21,000,000  [ 

£1,000,000  paid  in  the  City  of  London  there  was  only 
was  in  Bank  of  England  notes,  and  £7,500  in  actual 
at  £955,000  paid  by  means  of  cheques.    (Hear,  hear.) 

r  that  if  the  banking  system  was  not  what  it  is  they  <  "    », 

rge  amoiuit  of  actual  silver  and  gold  and  bank  notes  f- 

ey  would  require  a  very  large  proportion  of  it,  and  ' 

>ck  up  a  large  amount  of  capital  in  an  unproductive  * 

■ge  staffs  to  carry  on  their  present  business.     Tliere  !  •' 

usine&s  now  carried  on  in  London  which  yielded  large  ' ' 

it  were  not  for  this  system,  would  have  to  be  abau-  ' 

the  grounds  upon  which  the  directors  thought  the 

ikely  to  prove  a  great  undertaking.    (Hear,  hear.)    It  *  I  , 

the  French  bank  to  come  over  here,  because  they  ;; 

Qtroduce  an  improvement  u\K)n  the  present  system  ;  !>  -    . 

VL  brought  to  such  perfection  in  this  country  that  they 


DigitizI 


Ld  by  Google 


312 


Anglo'Italian  Bank. 


might  reasonably  hope  to  introduce  the  English  system  into  othe 
tries,  -with  profit  to  themselves,  and  with  still  greater  advantage 
countries  to  which  they  directed  their  attention.  Of  ccninw  it  w< 
no  use  attempting  to  introduce  the  system  into  the  Hiidspu'H  Bh; 
tories,  but  in  a  country  so  highly  civilised  as  Italy,  where  tliere 
much  wealth  and  commerce,  and  where  land  was  so  highly  cultivate 
had  a  large  field  for  their  exertions.  (Hear,  hear.)  Ue  wsa  a^ 
surprised  io  find  their  balance-sheet  so  satisfactory,  and  he  bclievi 
eventually  they  would  be  very  successful.  It,  of  course,  would  tal 
time  to  introduce  a  new  system,  and  the  shareholders  must  unt  ht 
mediat^y  for  such  dividends  an  were  paid  by  some  other  n  tuceros, 
hoped  every  year  would  be  more  profitable  than  the  last,  iiu<l  that  < 
ally  the  Anglo-Italian  Bank  would  prove  as  important  nuri  ilh  pr 
an  institution  as  the  great  banking  institutions  of  the  Oitj  pf  I 
(Cheers.)  He  moved  the  adoption  of  the  report,  and  that  a  divii 
declared  of  6«.  per  share,  free  of  income  tax,  being  at  the  rate  oi 
more  than  6  per  cent,  per  annum. 

Mr.  Borradaile,  after  expressing  the  greatest  confidence  in  the  dt 
pointed  out  some  matters  which,  he  thought,  required  explanati 
which  had  escaped  the  notice  of  the  chairman  in  his  very  lucid  sta 
With  such  names  upon  the  board,  and  having  regard  also  to  the  n 
with  which  the  permission  had  been  granted  by  the  Italirm  govei 
he  was  surprised  to  find  an  item  of  £14,000  for  preliminary  t'Xjieti! 
he  wanted  to  know  how  much  of  that  sum  went  to  th^  In  ten 
Financial  Company.  Then  there  were  shares  unallottt^d  mnoiLi 
£16,600.  At  &rst  the  shares  were  at  a  premium,  and  every  one 
have  been  allotted  then,  for  experience  snowed  that  reserves  for  < 
were  never  taken  up.  But  even  if  it  had  been  politic  in  this 
make  such  a  reserve,  the  shares  should  have  been  since  issued 
that  within  the  last  five  months  they  had  stood  at  2\  pr<^miuia. 
hear.)  The  directors  had  not,  he  thought,  acted  wisely  in  estal 
four  branches — ^they  should,  in  his  opinion,  have  trieil  a  large 
ment  with  two  principal  banks,  and  it  would  have  been  time  tnou^ 
or  four  years  hence  to  speak  of  more.  He  asked  when  a  call  n\ 
anticipated,  what  the  amount  would  be,  and  how  much  thu  <1 
thought  would  be  reqidred  to  be  called  up  to  carry  the  undertttki 
successful  issue ;  and  also  if  the  shares  upon  which  arrears  w 
were  charged  with  10  per  cent,  interest  upon  the  arrears,  aud 
the  directors  were  in  a  position  to  forfeit  those  shares  if  tliey  thou| 

Mr.  Short  inquired  why  Mr.  F.  Doulton  had  resigned  \m  sea 
board. 

Mr.  Maxwell  wanted  to  know  whether  there  would  be  any  o 
to  holding  their  meetings  half-yearly. 

The  Chairman  said  there  would  be  no  objection  to  holding  i 
half-yearly  if  such  was  the  wish  of  the  shareholders,  but  they  coi 
declare  a  dividend  yearly.  As  to  Mr.  Doulton's  resigDatiou,  tht 
course  would  be  to  refer  to  that  gentleman  himself  for  aiiy  explai 
his  reasons  for  so  doing.  With  reference  to  the  preliminary  expei 
bank  was  broui(ht  out  by  the  International  Financial  Company, 
course  they  were  paid  a  commission ;  but  the  question  vr^  very  c 
considered  at  the  time,  and  it  was  thought  there  were  iktl vantage 
connection  with  that  company  which  made  it  worth  while  to  citiij] 
aid,  and  the  experience  of  the  year  liad  confirmed  that  opinion 
regard  to  the  1,666  unallotted  shares,  the  board  were  anxious  U 


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mlon  mid  South  Western  Bank, 


313 


to  beet  men  in  Italy,  and  they  felt  tUftt  they  oouid 
I  pay  a  oousiilerAblG  preiuium  upou  the  shares  of  aa 
had  not  otmimeDceJ  wf^rkiii^.  A  intiiieraie  nutubar 
ve*i  for  that  purpose,  auii  hu  tlj ought  there  was  no 
Lurcum^^tauoe,  for  if  tiie  mimhor  of  Hhare*  were  ltJ3«, 
uuch  larger,  Tho80  sha-res  would  bo  aliutto^l  if  it 
bLe,  otherwise  tliey  uiight  bu  employed  as  a  Desi 
^1,..  ^rretu^  on  the  calla  were  large,  owiu^  to  the  pay- 

ilier,  wheo  many  «lnirehol4ers  were  away;  but 
-^  .-„  i  10  i.»er  eoiit.  would  Ik?  churg«d  iijx»a  all  arrears, 
»  tbtj  brfiuchea,  ho  jigrcted  with  Mr.  Burnidtdit!,  but 
tanceA  hail  dnvt?u  them  Into  tjhtabli&hiug  a  g^reat«r 
tiiaa  were  in  the  tirst  iuatanoe  otjiiteiiiplat^ii,  Ho 
thau  two  more  calU,  if  that,  wouhl  be  reqiiirwl. 
a,(XJO,<XM),  ^2UO/iOO  was  a  sm^Ul  proportion  to  be 
not  desirable  that  more  ahoidd  be  asked  for  till  it 
«mployed.  In  a  month  or  two  tlve  board  might  per- 
U>  making  a  further  call,  but  due  notice  would  be 
Bsary  pressure  would  bo  put  upm  the  shareh<dder». 
d  whether  the  directors  felt  thtjmgylvei*  at  liberty  to 

s  at  a  discount. 

ily  not.  There  are  too  small  a  number  to  be 
nirrs,  but  if  we  ever  part  with  tJicia  at  lejia  than  th© 
be  to  aectire  the  e«fvio«»  of  Bome  iuEuential  gentle. 

s  from  Mr.  Broomhall, 

riieti^  and  the  retiring  directors,  Bir  Jame«  Hudson , 

Lublxfck,  were  re-electciL 

d  A.  Ricardo,  the  au*Jitor8»  wore  also  re- apjiointed, 

of  £^  ei\L*h,  and  the   proceedings  clobed  with    the 

tlie  directors, 


fB  BOUTH  WESTERN  BANK,  LIMITED. 

Ifsacrra)  meeting  wa^  held  at  the  London  Tavern  on 

r.  J.  W.  Johua  in  the  chair. 

rt  and  balance-sheet  were  read  by  Mr.  E.  G.  Cleather, 

|ilea.**ure  to  submit  to  the  prfipiietors  a  statement 

•T  the  half-year  ending  31fft  December  hiat.     Cjn 

it  wiW  be  secin  that^  after  making  ample 

!  dvbts,  the  gross  protita,  ineluditig  the  sum 

am  J  1  from  lasit  acmiunt^  amoimt  to  :t^2(>,3DI- 

ifitii  all   charges  for  expense?,  iut*iicst  to 

>  Able  l)alane<^  of  ill ,5^11  18*.   2d, 

IG*.  8d.  be  appropriated  to   the 

'     oi  U    per  c^nt,  per  annum*  fr*_*e  of 

l)»i  writtfn  uti'  preliminary  uxj>un&ea ; 

„...j    .,.-1   *  t   i^o    H,#.  2./.  bespit  fwide 

the  liidance  of   £1^660 « 

,.^  iiiss    new  account.     The 

orge  Pftuiet,    U.B, ;    Henry 

1     ^     _        a  _      ,,l\Hi|.j  idl  of  whom  are  eligible 

r.  E'   H.  GaUworthy   (auditor)    abo    retirtss,  and  ia 


314 


London  and  South  Western  Bank. 


eligible  far  re-election,  and  notice  has  been  received  that  Mi 
Howell  1i<3wling8y  who  has  been  acting  temporarily  aa  auditor, 
propos^Kl  far  that  office." 


BAXAKCB-SBXBT. 

Br. 

Capital  psiid  up  "•       

Rc&orve  fund 

A  mount  due  by  the  bank  on  current,  deposit,  and  other  account » 

Efliaiice    of   profit    and    loss    brought    from    last    account 

£2,5  U.   10*.   ld,\  gross   profit   for  the  half-year,   after 

milking  provision  for  bad  and  doutbful  debts  £17,850.  Is*  6d, 


£ISM 
368,0 


20,3 


CiiHh  ill  hand  and  at  call    

Bill:^  discouuted,  and  temporary  advances  to  customers 

Bank  prfiiii^es,  furniture,  and  fixtures 

rreliininary  expenses,  including  cost  of  establishing  branche.s 
Current    expenses,  including  sll  salaries,  rents,  &c.,  at  head 

oifiee  find  branches     

liitcrcbt  ^^iid  on  current  and  deposit  accounts,  &c 


453,3 
Kl.y 

£538,g 


PROFIT  AND  LOSS  ACCOUNT. 

ik. 

Current  expenses  as  above        ..•      

Interci^t  jMid 

Hebate  on  bills  not  due  carried  to  new  account    ... 
Amount  written  ofi" preliminary  expenses   — 

Amount  t' Mr ried  to  reserve         • 

Dividend  at  the  rate  of  6  per  cent,  per  annum     ... 
Balance  carried  forward 


£6,S 

Ifl 

5 

5 

3,7 

1,0 


Or, 


k  broaght  from  last  account 
Qtmm  profit  for  the  half-year     ... 


£20,3 


£2,5 
17,8 

£20,31 


The  Oil  airman,  in  moving  the  adoption  of  the  report,  stated 
reason  iot  holding  the  meeting  at  the  London  Tavern  instoa^l  of  in 
Street,  m  heretofore,  that  the  number  of  shareholders  had  doubl 
figuj-6B  now  presentcKi  would,  he  trusted,  be  received  with  aa  mui 
faction  a^  it  gave  the  board  to  present  them.  They  had  paj^sed 
very  trying  times — times  when  it  behoved  the  direction  not  only  1 
proper  accommodation  for  their  shareholders,  but  also  to  guard  t1 
in  such  a  manner  as  to  prevent  the  bank  from  suffering  any  si^r 
during  a  crisis  such  as  they  had  just  passed  through.  The 
would  show  the  caution  that  had  been  exercised  by  the  board,  a 
their  itutdtution  might  now  be  considered  as  establisheil  on  a  vi 
and  firm  foundation.    Com]>aring  the  present  balanoe-slieet  with 


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ized  by  Google 


Hi  South  l^'^mteru  BanL 


3ii} 


o,  ft  vety  ooiifliderable  ftlteration  wonUl  be  noticml 

ery  ca^tj  the  alteratiou  was  in  tbe  rir^'lit  lUroctiou 

little  to  reproach    itself  with  in  the   shajm  i*i 

d  not  draw  oninpariaous  between  their  own  and 

at  reajKsct,  but  there  were  banks  nf  a  very  larj^e 

which  had  not  iJBeaj>ed  »u  fortunately  m  they  had 

L  np  iia<i  increaaefi  during  the  aix  month  a  about 

and  would,  by  the  addition  proposed  to  be  nuuJe 

>  ^15^000;  and  1 1 leir  current  balances— aiid  tliat 

s  teBta  of  the  coufitlenco  displayed  by  the  public — 

'6,000  upon  the  aix  months'  working,  aiiti  these 

balances,  which  were  a  very  material  evideocc  of 

their  fftanding.     The  groea  profit  for  the  half-year 

ipon  tbe  last  occasion.     That  was  an  increase  of 

2,000  a  year  beyond  the  figures  presented  to  the 

other  hand,  the  cash  in  hand  decreased  £20,000, 

r  the  fact  that  piH»ple  hml  to  pay  their  bilhi  at 

the  neoe»8ary  effects  of  which  was  to  reduce  the 

•s\     Tluj  billrt  discc^xintetl  and  temp<:»rary  aflvanooi 

130,fK)0  greater  accoitiraodation    than   tfiey  were 

e  six   mc>nth8  ;.  the  figure  was  now  nearly  half  a 

previous  occaBion  it  waa  only  £330,000  udil.     The 

iture  of  course  increased  by  the  opening  of  new 

were  fully  repre«ente<l  by  the  asset  of  the  pur- 

l  to  write  ofl"  preliininnry  exj>enaes  £500,,  or  at  the 

thrit,  taking  that  mode  of  dealing  i^ith  it,  in  ten 

1  have  disaptware^l  from  their  balance-aheet 

^'d,  |>erhaps,  that  the  amount  carrie<l  over  was 

eira,  and  in  that  respect  their  balance-slit'et  cou- 

rith  those  of  a  number  of  banks  which  had  recently 

r«  wa»,foT  instance,  one  cane  of  amiHlem  bank  liku 

vt  dedaroii  afUvidend  of  10  per  cent,,  and  the  shares 

«n  £5  Jind    £ft  premium,  but  which  only  carriwl 

w  had  had  a  discusaion  amongst  thernfl elves  upon 

>inic«u  wfts  that  it  would  add  very  much  to  ih^ 

m  hank  if  they  cai-ried  over  a  more  resiiectfible 

liitd  chofieu  they  could  have  given  another  2 

of  8  per  cent*,  by  taking  £1,000  from  the 

lit  they  were  assured  that  the  shareholders 

;uy  loss  upon   the  present  occasion  for  the 

m1:.     (H.ar,he^r.)     The  £1,660  was  not  the 

f  h   \    1 . .  I    !  u   ]\ii  confiidored  to  carry  forward,  for 

^  made,  though  it  was  not  divided 

me  properly  to  hand.     They  carried 

,  J..   ...  „  ,;.  „   aocount.     The  grofla  profit  of  the 

lectablo  figures, allowing  that  they  were  working  at 

(IT,  and  when  hv  5*tate4  that  very  ample  prnvision 

id  dobt«,  1  fident  that  the  balance  shot  t 

to  Ihr  rs.     Thi'ir  ti.ital  nimiber   of 

;  lifllf.year  numbered 

>,  .<*iid  with  the*io  facta 

.  j..(;m1..i-.'  i|nTir-,^>:vt'i4  for 

^     •[]■,_',   o.MHii.i-Ji'>Mi  the 

yr»  i  AtChiuUuiM.,  I8G;i,  thcuumber  htul  increased 


316  London  and  South  Western  Bank. 

to  270,  and  at  the  end  of  the  present  year  it  stood  at  420,  a  very  i 
tory  result  to  the  customers  and  depositors,  as  the  liability  was 
over  so  much  larger  an  area.  It  might  also  be  satisfactory  to  th 
liolders  to  know,  having  reference  to  recent  proceedings  el8ewh€ 
they  had  had  a  very  strict  and  careful  audit  by  the  board  of  every 
and  every  transaction  of  the  bank ;  that  there  had  been  a  directoi 
of  as  comprehensive  and  careful  a  nature  as  it  was  possible  to  hi 
that  they  had  found  everything  in  a  correct  and  satisfactory  oo 
(Hear,  hear.)  In  conclusion,  he  proposed  that  the  report,  balan( 
and  statement  of  accounts  should  be  adopted,  and  that  a  dividenc 
be  declared  for  the  half-year  at  the  rate  of  6  per  cent,  per  annum, 
income  tax. 

Mr.  Hadley  seconded  the  resolution,  which  was  carried,  the  cl 
remarking,  in  putting  it  to  the  meeting,  that  he  hoped  that  it  was 
time  the  directors  would  appear  before  the  shareholders  with  a  6  p 
dividend. 

A  Shareholder  asked  whether  it  was  contemplated  to  have  tl 
o£ce  in  the  City — a  position  which  he  thought  very  unfortunate  to 
mercial  undertaking  of  this  charater. 

The  Chairman  said  the  board  had  considered  the  matter  on  mo 
one  occasion,  but  they  did  not  think  the  time  had  yet  arrived  foi 
the  step  suggested.  The  City  business  was  conducted  through  the 
and  County  Bank. 

The  Shareholder — ^When  do  you  intend  to  make  a  call  upon  i 
shares? 

The  Chairman — ^We  have  done  so  this  morning— (laughter) — i 
gentleman  desirous  of  paying  up  upon  his  new  shares  in  full  will  be 
to  whatever  dividend  we  may  declare  in  June  next. 

The  retiring  directors  were  unanimously  re-elected,  the  anditors 
also  been  re-elected. 

Mr.  Galsworthy,  in  returning  thanks,  took  occasion  to  commei 
one  of  the  articles  of  association  which  empowered  the  directors 
for  their  remuneration  £2,000  from  the  commencement  of  ope 
£2,000  more  when  the  dividend  was  over  6  per  cent,  and  up  to  8  p 
and  £1,000  for  every  2  per  cent,  extra  dividend  beyond  that.  Such 
was  nothing  more  than  an  injurious  invention  on  the  part  of  prom 
induce  gentlemen  to  join  the  board,  and  though  he  had  every  coi 
in  the  present  directors  he  did  not  like  to  see  such  a  power  hangii 
the  heads  of  the  shareholders.     (Hear,  hear.) 

The  Chairman  observed  that  the  clause  was  rather  a  usual  i 
unusual  one  with  institutions  established  in  modem  times,  but  attl 
time  there  need  be  no  fear  of  the  directors  approaching  the  figi 
down,  and  they  would  be  ready  to  discuss  the  question  at  any  n 
Instead  of  taking  now,  as  they  might  be  entitled  to  take,  between 
and  £6,000,  they  only  proposed  to  take  up  to  the  end  of  the  year 
and  he  thought  they  were  entitled  to  a  continuance  of  the  oonfid 
the  proprietary. 

Mr.  Galsworthy  said  his  objection  was  one  of  principle. 

The  Chairman  replied  that  the  article  should  be  altered  at  tl 
meeting  if  such  was  the  wish  of  the  shareholders.     (Hear,  hear.) 

A  vote  of  thanks  was  then  passed  to  the  chairman  and  directs 
a  similar  compliment  having  been  passed  to  the  manager,  branch  mi 
and  other  officers  of  the  bank, 

Mr.  G.  A.  Addison  acknowledged  the  vote,  urging  the  ahareihol 


4 


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317 


to  briiig  cQfltomerB  to  the  bank,  and  giving  aa  hia 
an  great  experience  of  bauking^  that  ao  long  &&  tboir 
its  present  small  ajiiotmt  it  wuiildbemadne^  for  tbem 

separated. 


NATIONAL  BANK. 

[  general  meeting  of  the  proprietors  of  thu  bank  was 
uary,  at  the  Baak  Buildings,  Old  Broad  Street,  City ; 
na  j>rcs»ide<L 

[r,  31.  J-  Power)  having  read  the  advertisement  cnn- 
,  procaedeti  to  read  the  foUowiug  rep<irt  and  statu uieDt 

the  National  Bank  have  much  pleasure  in  presenting 
le  thirtieth  imouid  refxirt  of  the  state  of  the  societji 
of  J  804.  The  following  atrcounta  in  the  usual  form 
the  company's  aJfairn  at  the  close  of  18G4  ; — 


ds  and  LittbiUHes,  Blit  December^  1864, 
AsanTS. 

t  branches  ,.,         

Bank  of  England^  adyances  on  bullion, 

IxcUequer  bills,  Exchequer  bonds,  and 


£703^!H  0  4 
1,157,554  9  6 
522,055  14    5 


nent  stock,  and  sundry  secured  loans  at 

m-rcDt  account* 924,179     6  10 

3D  Ihird  call,  A»  per  Contra        ..*         ...  10,590     0    0 

id  securities  held  against  acceptances, 

2G0J53     3    8 

3,873,289  12     5 

don,  Dublin,  and  brmuchus,  frtdiold  and 

113,601     4    6 


£7;57a,ftl7   11     8 


LUniLtTtZS, 

4  hi    due  on  third  call  (De4:ember  Bt), 

and  current  accounts 
H  >  iijid  &n  »ecuriiy 
it!d  at  this  iUte      ...         ...         ,,,         .** 


£900,000  0  0 

.    1J  12.853  5  (I 

,    4,518,627  1  4 

2l>9,153  3  8 

773,184  1  6 

£7,573,817  11  8 


WMTtr  iKn  LOit  AccotJsnr. 

kt  8  per  C4ynt.  p«?r  annum,  £24,000;  with 
rK.  por  share,  ill B, 000 


£40,000    0    0 


^Digiti 


318 


National  Bank, 


AagoBt. 

Hau-year*s  dividend  at  8  per  cent,  per  annum,  £24,000 ;  with 
extra  dividend,  16«.  per  share,  £16,000;  and  pro  rata 
dividend  on  20,000  nevr  shares,  £6,666.  13«.  Ad 


Dec.  31. 

To  balance,  being  the  amount  of  rest  at  this  d«te 


Cr. 

Rest  or  nndivided  profits  at  December,  186S    .^ 

Net  profit  for  the  half- vear  to  30tb  June 

Premium  of  £25  per  share  on  20,000  shares,  issued  agree^ibly 
to  resolutions  of  the  23rd  and  24th  March,  1864 

Net  profit  for  the  half-year  to  31st  December,  1864.  after 
writing  off  all  bad,  and  providing  for  all  doubtful  dt  lits, 
£125,253, 17i.  2d.\  less  rebate  of  interest  on  bills  not  due, 
£24,145  


46,66 

£86.66 

773,18 

£859^ 


£169,17 

89,56 

500,00 


101,10 
£sr>9,§5 


^  Since  these  accounts  were  made  up  a  diyidend  at  the  rate  of 
cent,  per  annum  on  the  capital  of  the  bank,  and  an  extra  divi< 
16<.  per  share,  have  been  struck  on  the  old  shares  of  the  company,  £ 
up,  and  a  pro  rat&  dividend  of  £1.  per  share  has  been  deeinrtiil  on  t 
issue,  £15  paid  up,  which  will  be  payable  at  the  head  nthce  and  hi 
of  the  Company  on  and  after  8th  February.  In  the  half-yearly 
issued  by  the  directors  in  July  last,  they  announced  thai  it  wn 
intention  to  adhere  to  the  same  rate  of  dividend  until  the  new  j^har* 
paid  up  to  the  amount  of  £30  per  share,  so  that  the  shareholders 
dasses  might  equally  participate  in  the  increased  profits  which  have  i 
in  consequence  of  the  increased  capital  and  reserves.  Tkeriit  haa 
call  of  £5  per  share  made  on  the  new  shares  during  tiia  present 
The  next  call  will  be  made  in  April,  and  the  sixth  call  (which  wil 
the  amount  of  the  paid-up  capital  to  £30  per  share  on  the  new  i^Iiat 
thus  assimilate  them  to  the  old)  will  be  made  in  July  next.  Wh 
last-mentioned  caD  shall  have  been  made,  the  directors  protxtsa  to  c 
two  special  general  meetings  of  the  proprietors  to  sanction  the  ii 
10,000  other  new  £50  shares,  £30  paia  up,  for  which  tho  provi»iun 
transferred  from  the  rest.  Tlnase  snares,  paid  up  to  £30  eivch^  the  di 
propose  should  be  presented  free  of  charge  and  by  way  of  boutis  to  t] 
prietors  of  the  bank  for  the  time  being,  in  the  proporti<>n  of  one  n en 
£30  paid  up,  for  every  four  shares  held  by  each  shareholder  T&Ayeii 
This  operation,  when  carried  out,  will  increase  the  paiil-np  capital 
bank  to  one  million  and  a-half  sterling,  and  will  leare  the  undivided  | 
it  is  estimated,  at  nearly  half  a  million.  The  directorn  bt^lieve  thi 
of  augmenting  the  stock  of  the  company,  and  thereby  the  revenue 
shareholders,  is  preferable  to  a  sudden  distribution  of  increased  di\ 
or  cash  bonuses,  and  they  advise  the  proprietors  thus  early  of  their 
tion,  because  the  rate  of  profit  is  already  so  far  in  excess  of  the 
dividend  that  it  is  proper  the  directors  should  explain  how  they  proj 
distribute  their  incr^Eised  revenue.  On  the  1st  Octohar  the  di 
opened  their  fifth  metropolitan  branch  at  No.  23,  Old  Cavendish 


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319 


lie  22ud  Augiut  they  oi)eDo<i  fi  branch  of  the  bank  nt 

t  November  a  branch  lit  Ballynnvhon,  in  tho  county  of 

ti  are  working  satiHfiKffcorily.      The  cUrectora  have  to 

ion  agency  for  aeyeral  banking  oompdjites,  negotiatixl 

,  oome  into  operation  in  the  present,  and  will,  it  i» 

d  profitable  <lopartraent  of  the  Company *8  businesfl. 

xe  this  year  by  rotAti<»n  are  Jeremiah  Dunne,  Eftq., 

M*P.,  Ri>wlainl  Il<inald,  E«*^.,  and  M.  Upborne,  Esq., 

<w  offer  themselves  im  camiiilafcea  for  re-election." 

noving  the  adoption  of  the  rep<irt,  aaid— I  had  the 

he  meetingji  of  the  shareholders  held  on  the  23nl  and 

d  at  the  annual  goneral  meeting  held  last  May,  during 

oank'a  increase  trf  capital  waa  in  progreui^  and  now 

i  Ijeen  brought  to  a  proBpenvua  inme,  uid  that  we  have 

ger  enterprise,  my  colleagues  have  again  fM?leeted  me 

o  make  such  obaervationa  as  a  Tciy  proper  euxtom 

of  tlie  chairman,  in  addition  to  the  t«it  of  the  rtsport. 

ce  to  express  my  hopes  that  the  tenor  of  the  report 

re  of  the  accountdi  submitted  to  you,  are  deemed  fiati<i^ 

.)     Looking  back  on  the  year  ]  864,  it  ifi  oompetent  for 

that  it  would  have  been  easy  for  us  to  have  realised 

during  the  year  than  C1SH,000,  which  tlie  ordinary 

riolde*^     I  may  very  truly  say  thin  might  easily  have 

fure,  but  it  is  not  possible  tr»  make  the  niaximunn  ot 

^vitliont  incurring  risk^  which,  in  the  lon|f  run, 

tnd  which  wo  have  acconiiugly  avoided,     I  may 

■i.._; ,,..<*  and  myself,  that  we  have  been  far  moredeair- 

Lneas  so  that  we  abould  continue  to  afford  all  reason- 

iMiufriiiiAr^   Til.  1^^^tt>yT  what  pressure  existod  in  t)ie 

t  oea  up  at  tempting  rata^,  for  the 

.   L     (Hear,  hear^     Ha\'ing  said  so 

lice  of  onr  proceedings,  1  think  I  am  fully 

rt'li^klders  ou  the  rejfultswe  have  achicvod, 

.  118  compared  to  liabilities,  such  b»  no 

Tri  cicee«b*.  { Cheers.)    I  have  been  rd- 

'>  liomo  anumentaricw  which  hav«> 

1  rs  t<  niching  the  so-called  injiwtioe 

1  Hi  tliu  vnakmg  *«f  twt»  large  Irish  blinking  csom- 

,  'U  btiardi.     The.^e  oljaervationa  I  umlerstand  ti> 

L  iu  our  friemh<and  neighbours  in  this  street.  I  have  no 

can,  HA  tht^y  have  always  done,  give  a  gtwjd  aootnunt 

III  will  now  occupy  i         '"       iply  with  the 

iid,*^  tto  far  na  our  \^  >  to  do  there- 

nis  l>earLng    up<>u   i uhi   important  and 

-the  Lrirth  business.     The  amount  of 

^-'md,  and  the  amount  of  jwlvancea 

^'ether,  exceed  the  amount  <ii  the 

,_    .  .».,.ix  o  to  cre^iit  of  customera*  ciurent 

Nay,  I  will  go  on  further  to  ^ty  that  the 

to  *«ur   sljiirt^hohhn'H    in    Irt'litiiL  ;Mhl    the 

in.  u  -w  ,-v.,.,., J-  iM.'   ,v'i...l<'  <  tho 

,..    .;.  ,      S, ,  i     ...     :'.,:,,      ,■,  ■  ':tioa 

im^v  of  profit 
.of  the  shar«^ 


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320 


National  Bank. 


holders,  and,  to  the  best  of  our  ability,  in  the  interest  of  the  trad 
iiiiinity  on  both  sides  of  the  Channel.  Perhaps  it  is  not  now  out 
ioT  ine  to  say,  as  bearing  upon  the  business  interoouri*e  btjtween 
coantries,  that  this  institution  has  not  only  found  no  jitejudic^sti 
against  in  this  country,  but  that,  whether  in  Loudou  or  in  JAyh. 
any  other  part  of  England  with  which  we  have  relsiti^^ns,  the 
been  recognised  and  appreciated  with  aa  much  and  m  early  a  f  a^ 
H  had  sprung  up  on  the  foundation  of  the  oldest  bank  hi  Englam 
hear.)  I  know  it  will  be  gratifying^^to  our  friends  in  Ireland  to  1 
atid  it  is  simply  a  tribute  to  truth  to  state  it.  Grait,  lioweve: 
actual  progress  has  been,  I  consider  this  bank  only  in  an  early  at 
growth.  I  look  forward  with  confidence  to  its  increa*ieil  deyelopi 
I  do  not  wish,  nor  does  this  board  desire,  to  increase  tht^  bitMiiu 
bfink,  except  commensurately  with  capital  and  reaerves.  I  hai 
touch  upon  that  portion  of  the  report  which  refers  tt>  the  prop 
thtt  board  to  increase  the  capital  of  the  bank  by  the  is^wv  iif  10,0 
^liares,  £30  paid  up  on  each,  which  1  presiune  will  )h^  eurrifxl 
Aii^oist.  You  will  observe  that  during  the  progress  of  tliu  call 
nuw  shares,  the  profits  of  the  bank  increased  in  a  ratio  greatly  * 
the  actual  increase  of  the  capital.  No  doubt  this  was  due  conaid 
the  fact  that  half  a  million  sterling  was  realized  as  a  preniium  on 
shares  at  a  time  that  money  was  very  valuable.  To  have  dii^trit 
increased  revenue  in  th^  shape  of  dividend  ^before  tlie  new  Bhi 
paifl  up  equally  to  the  old  would  have  been,  in  our  opinion,  t^:^  bi 
inac|uitably  towards  those  shareholders  who  had  contributed  m 
capital,  and  the  directors  determined  to  abide  the  o()uali2atio: 
cliisHCS  of  shares  before  increasing  their  rates  of  dividend.  1^1 
however,  propositions  for  increased  business  from  new  and  vain 
ne»ctLons  poured  in  on  us ;  such  was  the  effect  of  the  bank's  n 
Bjatem  of  business  that  proposals  for  valuable  business  flowed  ii 
one  side,  whilst  the  public  confidence  daily  increaseil  <mr  re^Kiurc^ 
other,  all  through  the  period  of  the  pressure.  This  deterni 
directors  to  pursue  the  course  they  have  announced  to  yon  in  the  i 
rather  to  recommend  to  you  to  carry  out,  namely,  to  ouivert  ^ 
the  rest  into  10,000  new  shares ;  to  leave  the  paid-up  caintiil  of  i 
at  a  million  and  a  half,  and  the  reserve  fimd  about  l^alf  a  miilic 
o[>eration  will  leave,  as  I  believe,  the  paid-up  capital  of  thi^  li^uik 
re«t>rve  fund  of  the  bank  the  largest  of  any  bank  in  E norland  save 
of  England,  and  the  largest  of  any  bank  in  Irelan<l  exc^'pt  the 
Irehmd.  Our  first  view  has  been  safety,  and  we  km/w  no  n 
to  it  except  by  large  capital  and  reserves.  (Hear,  hear.)  The  buB 
hanker  is  to  borrow  money,  repayable  at  short  notice  or  on  deni 
to  lend  it,  repayable  at  various  dates.  There  is  no  security  that 
can  continue  to  treat  his  customers  with  liberality  during  times  of 
if  ho  has  not  a  large  capital,  and  we  have  secured  this  litB^utial  \n 
rates  of  interest  on  money  have  fallen  since  the  year  opened  U 
cent,  per  annum.  This  bank  has  upwards  of  £4,000,000  of  re«oi 
which  it  has  to  pay  no  interest,  except  7s,  per  cent,  per  annum  on 
of  it  as  is  repreaented  by  circulation;  and  although  the  stateni 
this  is  so  may  deprive  us  of  some  of  the  credit  that  attacliep;  to  tl 
desire  large  profits  from  money  borrowed  at  high  rates,  we  are  quite 
that  we  should  be  judged  by  the  results  and  on  our  merits,  such  a^ 
I  will  now,  gentlemen,  move  that  the  report  just  rea^l  to  yon  he 
printed  and  circulated  amongst  the  proprietors,  and  if  any  propriei 


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s  or  qiieationa  to  ask  I  ahall  be  prepared,  when  all 
3Ach  where  it  is  re^iuisite, 

P.,  ill  seoondiug  the  resohition,  said  that,  after 
of  tJio  chaimiaii,  it  was  hardly  necenaary  for  bim 
ith  liny  remarke.  The  report,  he  thoujtjlit,  rauat 
'f  all  present  that  the  husiiiess  had  been  c^jutUiL'tod 
rith  a  view  Uy  the  iDterests  of  the  shareholders, 
;  with  whom  they  hH^  to  desii-  He  wa»  glad  to 
shareholders  in  the  room,  participating  aa  thwy 
due  of  their  property,  and  rejoicing  in  the  poai* 

attained.  The  most  cursory  exam  mat  io  a  of  the 
»uld  show  tliem  that  it  woidd  have  been  very  easy 
ive  presenteil  le^timatuly  even  a  more  favourable 

done,  but  as  the  chair mau  had  said  the  motto  of 
)n  and  safety.  He  congratulate*!  the  sharelioldem 
bags  they  possessed,  b(.»th  in  London  and  Ireland, 
Id  all  agree  with  him  that  tlie  value  put  down  for 
waa  ridiculously  small.  In  conclusion,  he  otuld 
n  of  the  ohairmau  that  whatever  progress  they 
p-et  in  its  infancy,  (Cheera.) 
)  opinion  that  tlie  report  wan  one  of  the  most 
•  been  isaueil  by  the  lx);krd,  and  more  especially 
fok  intc»  account  the  recent  commercial  crisis. 
aded  to  no  inconsiderable  extent  the  progress  of 
er  in  which  their  business  had  been  conducted 
laible  credit  on  the  governing  body.     (Cheers,) 

meeting  of  the  proprietors,  and  no  doubt  in  tliat 
>  board  had  gained  great  exi>erienoe.      The  ab- 

new  capital  within  the  laat  few  months,  bore 
ation  of  the  institution  by  the  public,  and  the 
operation  hail  been  carried  out  at  a  profit  of  half 

(Cheers,)     It  wais  very  gratifying  to  know  that 

.  the  advantage  reitulting  from  the  employment  of 

iitiT^,  but  of  the  iucrease<J  profit  derivable  from 

1  a  firm  opinion  that  the  future  of  Ireland 

id  she  pisse&s  in  abundance  the  elements  of 

L  -I  ugraphical  [w^iaition  and  her  connection  with 
ill  Uiere  cttuld  be  no  doubt  that  she  woidd  before 
i  the  scat  of  future  enteqirise.  They  were  that 
[Ual  to  14  per  cimt,,  and  they  were  moreover  in- 
«ed  to  appropriate  the  undivided  capital,  in  the 
le  extent  of  £m),()i)0.  The  reault  of  this  would 
ishment  they  would  have  had  returned  to  them 
alf  a  million  three  times  over,  (Cheers.)  He 
jes  now  contemplatetl  would  add  greatly  to  the 
f  the  bank,  would  enable  it  to  carry  on  all  ita 
ility,  and  to  advance  all  those  objects  for  the  pro- 
rst  created.  He  learnt  with  great  pleasure  that 
e<l  the  feerr^    "^^  '^  ita  able  managers  and  officers, 

of  their  J  (Cheers.) 

lanimousl}   -  ,   i  .   .1. 
'hairman,  secunded  by  a  Shareholder,  the  retiring 


26 


322 


Joint-Stock  Discount  Company. 


It  was  then  moved  by  Sir  Benjamin  Morris  and  Betxiuiled  bjr 
Wlieeler, "  That,  in  consideration  of  the  increased  business  of  tiits 
and  the  highly  prosperous  condition  of  its  affairs,  the  r*  itiuneratiLiii  ^ 
the  directors  should  be  allowed  to  receive  should  be  incrcriiied  by  ih( 
of  £2,400  per  annum,  being  an  increase  by  one-half  of  the  amount 
by  the  deed  of  settlement." 

The  resolution  having  been  put  by  the  chairman ^  was  carried  n 
mously. 

The  Chairman,  in  returning  thanks,  observed  that  tbo  boaxd  t 
appreciated  the  compliment,  and  valued  it  more  as  a  mark  of  coufi 
than  they  did  as  an  increase  of  their  remuneration. 

On  the  motion  of  Mr.  Fox,  a  vote  of  thanks  was  passed  by  acolau] 
to  Mr.  M.  J.  Power,  the  secretary,  to  the  managers,  and  to  the  7i 
officers  of  the  bank,  for  their  zeal  and  assiduity  in  promoting  its 
perity. 

Mr.  M.  J.  Power  having  acknowledged  the  compliment, 

A  cordial  vote  of  tliAT^lra  to  the  chairman  for  his  able  couilnct  i 
chair,  moved  by  Mr.  Harvey  Lewis,  and  also  oarrii^d  by  ac^lam 
terminated  the  proceedings. 


THE  JOINT-STOCK  DISCOUNT  COMPANY,  LIMITBD. 

Thb  third  ordinary  general  meeting  of  the  shareholders  of  this  coi 
was  held  on  the  31st  January,  at  the  London  Tavern,  W.  C.  Brown^ 
in  the  chair. 
Mr.  Westrupfthe  secretary,  read  the  report,  which  was  bm  fciUows 
"  In  submitting  the  annexed  statement  of  accounts,  the  directota 
pleasure  in  congratulating  the  proprietary  on  a  result  which  they 
opinion  will,when  the  late  severe  commercial  crisis  is  considered,  be  T^ 
as  satisfactory.  The  balance  of  gross  profits  made  duriug  thu  six  n 
ending  the  31st  ult.,  after  reserving  an  amount  as  provision  iigainst 
respect  of  bad  debts,  greatly  exceeding  that  which  it  ib  believo 
ultimately  be  found  necessary,  has  been  £46^72,  IZs.  10 J.  This  an 
after  deducting  rebate  on  bills  not  due  and  the  curreut  expooM 
enabled  the  directors  to  increase  the  reserve  fund  to  £:iO,000,  to  dec 
dividend  at  the  rate  of  6  per  cent,  per  annum,  amounting  to  Sj.  $ 
share,  and  to  carry  forward  £3,243.  2s.  lid.'  to  profit  and  Im 
account.  In  consequence  of  the  stoppage  of  the  Leeds  Banking  Con 
of  whose  endorsements  this  Company  at  one  time  held  a  very  large  an 
the  extreme  difficulty  in  negotiating  the  best  mercantile  and  fiiumcial 
and  the  extent  of  monetary  embarrassments,  which  seriously  threi 
to  terminate  in  a  panic,  the  directors  decided,  after  the  mriet  anxiom 
sideration,  that  it  was  in  the  interest  of  the  proprietors  that  the  Oon 
should  be  immediately  placed,  not  only  in  a  position  to  meet  ever; 
tingency,  but  in  one  of  undoubted  strength,  and  that  this  desirable 
would  be  best  secured  by  making  a  call.  The  directors  trust  th» 
will  be  considered  a  sufficient  reason  for  a  step  which,  in  any  but  the 
exceptionial  times,  might  have  appeared  both  inconsiderate  and  unneoe 
The  prompt  manner  in  which  the  call  was  met  by  the  hharehcilders  | 
that  they  fully  appreciated  the  proprietv  of  the  menaiire.  Th£»  dir 
have  elected  Mr.  A.  W.  Bixon  to  one  of  the  vacant  seats  at  tht?  \ 
Owing  to  the  unavoidable  absence  abroad  of  Mr.  J.  P.  Judd,  one  u 


Digitized  by  VjOOQIC 


tfit'S/ock  Diftcount  Comjmny. 


323 


the  directors  have  appointed  Mr.  C,  J.  H,  Allen  in 

mtiiiout,  if  approved  of,  will  require  oonlirniatiuii  by 

le  Compajiy'8  register  on  tlio  Ist  of  January  of  this 

than  1,150  shareliiildor»,  comprising  the  nameK  of  & 

' 'iTig  merchants  and  traders  of  London   and  the 

r<  have  nu  doubt  that  the  pcAHition  of  the  Com- 
o.-   aiduential   a  ooustituenoy,    murI    eontinuouMy 


\alanc€-8he€i^  Bigt  Becanb^,  1864. 
£10  paid,  £800|000;  less  unpaid  calls, 

leposits,  Ac.  &e., 

it  and  loss  aocomit  after  nuLking  amplu 
id  and  doubtful  dcbu 


£755,413  10    n 

23,000     0     ti 

2,197,040  17     6 

4G,172  13  10 

X3,M23.620     1     6 


and  ca.sli  at  bankers 
cea  &c.  &e. 


£2&t.%693  8  2 

2,728»400  3  0 

2^32  10  4 

£3.023,020  I  0 


tfor  tk6  its  m&ntht  ending  Mst  Dec^nber,  18644 


ading  salarieB,  rtsntf  stationery,  ndver- 
i'  fees,  oudhor»*  feea,  depreciation  in 
ires  and  furniture,  income  tnx,  $tG,  ... 
itcd,  not  yet  duo— oarnod  to  btcrea^t 

6  per  cenU  per  annum...        * 

r?e  fund  ♦. 

t  and  loss  new  account. *«        ...        **• 


M  aoootiiit,  30th  June  19^1 
brought  down  ,,, 


noving  the  adrrptirm  nf  the  report,  said  he  did  not 

f'Tj  long  by  any  lengthened  remarks  on  thts  sruV>jiict 

.  but  ono  or  tivti  pointa  required  to  be  referred 

^  profit  accounts  there  waa  a  connid arable  dis- 

li&j*  fur  December  agaiiiiit  tho*;e  of  June.     This  was 

liu-jre  jimoniitof  bilb  they  had  to  rebate  in  June,  mid 

'  1  to  rebate  in  December.  At  the  end  of  December 

-<>,  and  in  June  £34,CMX>,  with  a  balance  in  their 

JU  LU  Jime^  HB  agtujist  December.    But  in  oompiwring 


X5,8G8 

10,472 
14,000 

:»,ooo 

3,243 

10    a 

14    3 

0    0 
0    0 
3  11 

£47,5B4 

7 

7 

£1,411 
4fi;i72 

13 
13 

9 
10 

£47,584 

7 

7 

324  Joint'Stock  Discount  Company. 

tlippe  accounts  Id  June  nothing  was  carried  forward  afi  agaimrt  ba 
wlit'i  t  as  in  December  they  had  carried  £30,000  to  the  o^Dtingeiit 
tlie  ]»nriK>8e  of  meeting  anything  that  might  arise;  ami  if  thei 
nd^l  ^;3<),000 — supposing  the  bad  debts  not  to  arise  —they  would  \ 
profit  of  £40,000  against  £24,000  at  the  end  of  Decenil>T.  Anot] 
that  appeared  very  strongly  in  the  present  half-year  v,f\A  this  : 
matiug  the  rebate  on  the  SOth  June  they  took  the  relmt^  at  5| 
CoiJBidering  what  followed  in  the  money  market,  which  cimld  nol 
cipjited,  the  rebate  was  taken  at  a  low  rate,  and  as  the  iiioQcy  nii 
vanced  up  to  9  per  cent,  the  loss  or  rebate,  which  can  it  Id  the  I 
h*ilf-year,  was  very  considerable ;  and  if  they  had  takf*n  the  re 
per  cent,  higher  than  they  did  on  the  30th  June  they  found  it  wo 
Tiia<lc:  a  difference  of  £7,000  against  the  June  half-yejir  ami  in  i 
l\\*.\  December  half-year,  and  that  was  a  considerable  iuert^ase  oi 
He  thought  they  would  find  that  the  profits  had  by  no  lut^ann  die 
but  t)iat  they  had  in  reality  considerably  increased.  Under  these 
BtiuiLe*  they  thought  it  better  to  put  their  dividend  at  \^  per  cet 
than  at  8  per  cent.,  for  the  purpose  of  making  the  posit  \**u  uf  tlie 
as  BtroDg  as  possible.  The  call  they  made  a  few  months  agri  recjii 
to  state  the  reasons  which  led  to  it.  It  had  been  said  thtiy  made 
because  they  had  made  an  enormous  amount  of  bad  debts,  that  t 
an  einjrmous  amount  of  bad  bills.  The  real  cause  of  tlieir  ma] 
call  was  that  a  real  stringency  came  over  the  money  market,  and  i 
a  large  amount  of  securities  that  were  not  negociable.  They  heli 
amoiuit  of  the  Leeds  bank  paper,  with  the  endorsemenU  of  the  ban 
was  perfectly  useless  in  the  market.  They  held  n  large  an 
financial  paper  which  had  become  useless  in  the  in[Lrket,  aad 
amount  of  commercial  bills ;  and  such  was  the  stringency  that  tlx 
to  look  at  the  matter  seriously,  and  to  think  the  time  had  arrived 
wa;&  necessary  to  make  themselves  safe,  and  to  be  enabled  to  meet 
tiiigeucies.  At  the  time  they  decided  to  make  a  call  they  had  i 
worth  of  paper  in  their  till.  They  were  not  in  a  stiite  of  ban 
T})py  had  plenty  of  paper,  but  it  was  un- negociable,  auil  the  queetj 
whether  they  should  force  those  on  the  market  and  obtain  mont 
rate  4»f  20  per  ceut.  to  enable  them  to  carry  on  their  business 
thought  with  their  reserve  fund  they  would  not  be  acting  coueisl 
their  business  interests  if  they  were  to  pay  large  sum  a  ti»  other  cc 
for  advances,  and  they  thought  the  time  had  come  when  they  mufii 
their  capital.  It  was  objectionable  to  the  shareholders,  but  i 
matter  of  necessity.  His  own  opinion  was  that  the  comjtany  wai 
a  Vk  tier  position,  and  with  the  assistance  of  the  shareholdefa 
would  do  good  instead  of  doing  harm.  He  moved  the  adoptioi 
report. 

Mr.  W.  Dent  seconded  the  motion,  and  said  they  had  a  ▼« 
amount  of  Mr.  M'Henry's  paper,  and  with  respect  to  that  paper  a 
woiild  show  it  to  be  as  valuable  as  it  was,  in  his  opinion,  whe 
taken.  He  admitted  they  had  made  a  mistake  in  not  telling  tl 
were  about  to  make  a  call.  He  believed  they  coidd  malf  e  aa  muc 
capital  of  £400,000  as  with  £800,000,  and  he  suggested  that  son 
paid-up  capital  should  be  returned.  The  manager  worked  day  ai 
aiid  cttuld  not  obtain  competent  assistance.  Their  estimated  \<m 
£20,000^  but  he  thought  £12,000  would  represent  the  auiount. 

A  Hhareholder  asked  if  there  was  any  loss  on  the  Leeils  Ban 
and,  if  so,  to  what  extent  ? 


Digiti 


ized  by  Google 


'olnt'Stock  Discount  Company,  325 


d  they  could  not  say  there  was  any  loss  on  the  Leeds  ; 

)aper  was  expected  to  be  paid  in  full  with  interest.  * 

id  he  was  satisfied  the  company  liad  made  great  pro-  ^ 

11  examination  of  its  affairs,  he  believed  the  company  \ 

;ly  better  state  than  it  was  six  months  ago.     In  sup-  i 

entered  into  a  detailed  statement  of  the  accounts.  '• 

the  circumstances,  the  directors  did  right  to  make  a 
•n  was  whetlier  now  some  portion  of  their  capital  could  I 

Lake  the  profits  divisible  on  a  smaller  capital.  ", 

atulated  the  directors  on  having  made  the  call.     He  i; 

nvested  they  ought  not  to  leave  their  descendants  to  * 

e  ;  and  as  a  family  man,  he  could  scarcely  sleep  when 
jompanies  with  £50  shares,  and  only  one-tenth  of  the  i 

rhe  company  stood  high,  their  preliminary  expenses  '. 

ey  might  hope  for  a  larger  dividend  on  a  future 

jngly  objected  to  the  last  call,  as  they  would  have  to  ? 

lount   to  pay  the  same  dividend  on    the    increased 

quired  if  there  was  any  power  to  return  the  paid-up 
ly  objected  to  one  of  the  solicitors  of  the  board  being  I' 

OB,  for  influential  commercial  men  were  essential  to  '• 

the  amount  of  bad  debts  for  which  credit  had  been 
r  discounted  any  of  Lloyd's  bonds  ? 
ers  expressed  themselves  strongly  against  the  late  call, 
Rixon,  the  solicitor,  being  made  a  director.  '" 

reply,  stated  that  they  had  really  had  less  capital  to 
fie  last  than  in  the  previous  half-year.     The  bills  and 
be  regarded  as  capital,  seeing  that  it  was  usual  to  I 

3  and  others  atlvances  against  them.     Private  deposits 
footing,  and  were  available  for  carrying  on  the  busi- 
er, but  these  had  been  considerably  reduced  during  the 
)enses  had  increased  about  £1,000,  consequent  upon 
itions  to  the  staff,  a  larger  sum  paid  for  income-tax, 
barge  for  advertising.     With  regard  to  the  probability 
[ig  reduced  by  the  increased  capital,  which  would  have 
d  that  the  additional  capital  would  be  profitably  em- 
»  own  dividend.     (Hear,  hear.)     Mr.  Rixon,  who  had 
the  directors  a  member  of  the  board,  was  one  of  the 
Co.,  the  company's  solicitors ;  but  he  did  not  think 
their  law  adviser  was  so  incompatible  with  the  oflice 
board  should  decline  to  avail  themselves  of  the  great 
fluenco  which  that  gentleman  could  bring  to  the  assist- 
ay  as  a  member  of  the  direction.     He  was  doubtful 
d  legally  return  capital  when  once  called  up.     The 
he  bank  were  considered  in  every  respect  satisfactory, 
y  formerly  were.     He  could  not  state  what  amount  of 
d  which  were  not  convertible,  as  the  convertibility 
pon  the  state  of  the  money  market,  but  the  amount 
fiey  did  hold  a  small  amount  of  Lloyd's  bonds,  but 
I  security.     The  gross  profits  of  the  half-year  were  put 
Id,  and  if  they  added  the  £20,000  carried  over  to  the 
I  would  make  the  total  £66,000. 


Digitized  by  ^OOQlC 


326     LondoHj  Hamhurgj  and  Continental  Exchange  Bank 

I\It.  Godfrey  protested  agamst  the  solicitor  of  the  oompany  h 
scat  on  the  board,  the  two  positions  being  incompatible. 

A  Shareholder  suggested  that  there  should  be  an  increase  in  the 
of  the  directors,  in  order  to  bring  in  some  Oity  gentlemen  of  con 
aii<1  financial  experience  and  influence. 

The  Chairman  ssdd  they  were  most  anxious  to  do  so  as  opp 
oifLrad.  In  reply  to  a  question,  he  added  that  no  further  call  i 
tern  plated. 

A  Proprietor,  who  said  he  had  deposited  money  with  the  con 
coDKcquence  of  the  managing  director  haying  told  him  that  he  wai 
Bharisholder,  and  meant  to  keep  his  shares  under  all  circumstances,  i 
wliLtlier  it  was  true  that  that  gentleman  had  recently  sold  out,  f 
held  no  shares  whatever  in  the  concern. 

The  Chairman  declined  to  enter  into  the  private  affairs  of  any  < 
tho  company,  and  added  that  it  was  not  provided  by  the  deed  of  in 
tion  tliat  the  manager  should  hold  any  share  qualification. 

After  some  conversation  on  this  point,  in  which  some  sharehold< 
the  view  of  the  chairman,  and  others  the  contrary. 

Mr.  Wilkinson  the  managing  director,  stated  that  he  had  origin] 
2,8()ll  shares ;  that  he  had  sold  some,  but  still  held  several — more 
director's  qualification.  (Hear,  hear.)  This  explanation  was  oo: 
Siitisfactory,  and  the  resolution  adopting  the  report  was  carried 
mo^iflly. 

The  auditors  were  re-appointed,  and  the  proceedings  terminat 
tlie  usual  compliment  to  the  chairman  and  lus  colleagues. 


LONDON,  HAMBURG,  AND  CONTINENTAL  EXCHAJN 
BANK,  LIMITED. 

A  MerriKO  of  the  shareholders  of  this  bank  was  held  on  the  Slst  J 
at  the  offices  in  Lombard-street,  for  the  purpose  of  receiving  a  sti 
of  accounts  to  3lBt  December  last ;  Mr.  Edward  Tombs  in  the  cha 
The  circular  convening  the  meeting  having  been  read, 
The  Secretary  proceeded  to  read  the  following  report  of  the  di 
which  had  been  sent  roimd  to  the  shareholders : — 

**  In  fulfilment  of  the  promise  held  out  in  their  circular  of  the  1( 
the  directors  have  called  you  together  to  submit  to  you  a  statemeD 
batik's  position.  This  statement  is  now  before  you,  and  the  directc 
that  you  will  consider  it  much  more  favourable  than  you  have  b 
to  expect  from  the  wild  and  tmfounded  rumours  so  industriously  cii 
for  tbt)  past  few  months.  (Hear,  hear.)  The  long-continued  prei 
oommorcial  circles,  from  which  we  are  now  emerging,  will  acoo 
uiauy  of  these  rumours  from  which  we  have  suffered  in  oommc 
other  institutions  much  stronger  in  every  sense  than  our  own. 
face  of  great  difficulties  you  will  not  expect  that  the  business  of  th 
during  the  interval  which  has  elapsed  since  our  last  meeting,  hai 
tainef]  the  development  and  extent  which  its  earlier  career  pr< 
bat  if  that  business  has  been  of  necessity  curtailed,  the  directors 
any  r*"\te  state  that  no  losses  have  been  incurred  by  the  bank  in  its 
trauj^actions,  and  that  the  losses  that  now  appear,  though  heavic 
weivi  jmticipated  at  your  last  meeting,  have  been  in  reality  tl 
sor^uence  of  previous  transactions.  The  directors  find  that  th 
profits  of  the  bank  for  the  fourteen  months  of  its  existence,  an^ 


Digiti 


ized  by  Google 


;,  and  Continental  Exchange  Bank,      327 

which  £9fAB4,  5^.  3d,  had  been  earned  ciYtriDg  the  pnjit 

loBses  during  the  entire  pcricHl  amount  to  MSfib^, 
&  tli&t  they  will  be  able  Hhortly  Ui  aDDouDoe  that  they 
ucies  cauBtnl  since  the  Jaat  meeting  by  the  retirement 
Lors  frcim  the  Iwiard  by  jfeiitlemen  of  high  ccjtnrneri'ini 
Ibo  in  treaty  with  a  gentlemiui  of  great  exijerience  iind 
[jant  fKiiRt  of  manager.  The  petition  by  a  wharehelder 
V,  which  wa«  the  subject  of  the  circidar  before 
I  tor  withdrawn,  and  the  admission  of  the  Sdlicitora 

I iicj'13  was  no  ground  for  such  a  procscetling,  proves 
(LK  the  attempt  thua  made  to  damage  the  credit  of  the 
rft  have  every  confidence  in  the  future  career  of  the 

flee  it  ere  lon^  strengthened  in  crefUt  and  C4ipitrd» 
gI  statement  will  serve  to  diaaipate  the  doubts  and 
pear  to  have  weighed  on  the  minds  of  many  of  the 
idnce  them  to  give  the  bank  their  ooniidence  and  sui^ 
ban  they  have  hitlierto  done.     The  shareholderB  will 

for  themselves  that  their  property  ha8  not  been  de- 
etnt  indicated  by  the  late  very  low  quotations  of  the 


atemcni  a/Aeeounti  to  the  Uit  Dceaiiltcr,  1864, 

•    ■-      '     IS  XlOO  each  £600.000  ;  called 

;  uncftlled  £4P\000  f  paid  up 

i  .^.,..K  ^.0,0(M),    flrwt  call,  £a  p«r  share 

call  £5  i*er  »hare  £24,750  ;  thml  call  £6 


■nstoniers*  balances,  ilepo^itfl,  ace^^ptances 

*,  nnd  other  obligJtUons  £'J41,457. 8jr.  Ad, 

ii  October.  1H64  £4/208.  6j.  8fl?.;  divi- 

lidicr  £3,922.  Uj.  2ii.-i:286.  12j»  6^.; 


£81,905     0     0 


241,743     0  10 


£323.048     0  10 

n,  £10,544.  U„  less  written  oft,  £1,000, 
iinpsaf-'a   pUTchasoil,   £36,000;   fiiniituro, 

ircft£l,at.  8f.  Ud 

nct^fl  dill?  from  cu^tomeri,  Icamij  bills  tlis- 

1  ngrtin«t  iicecpt/inces,  &c. , 

be  written  off,  £8,t>52  ... 

4?e) 

45,975    9  U 

244,394  12     9 

3«,02B  n     9 

1,249     0    6 

£323,648     0  10 

I'ttorrr  ami*  vom  Acxxunrr. 

Bilftriet,  rent,  general  mAQagGment,  law 

London  and  Hamburg                             „.  £12,133  IG  11 

amedduwn            ...                              ...  12,61 1     U    3 


Digitii 


328     London^  Hamburg,  and  Continental  Exchange  B&fd'. 

IHTiddnd  declared  25th  October,  1864,  10  per  cent.,  equal  to 
16f.  lOi/  per  share,  £4,208.  6s,  Sd. ;  preliminary  expensefl 
rediiciMl  £1,000;  reaenre  fund,  £2,000      X5«SIM 

liOfiiiea  to  be  written  off  ...  8*^ 


£13.B6I 


QmBs  proBt  from  commencement  of  buBiness  to  3l8t  Decem- 
ber, K^ '3  4,  at  London  and  Hamburg 

Balance  broil  j:jht  down  (net  profit)  

Balance  (deficiency  after  absorbing  reserre  fund)  to  general 
account 


£24J4! 

£12,61 

1,24< 

£13.66< 


The  Chairman,  in  rising  to  move  the  adoption  o  the  repiirt,  clsdn 
privilege  h*  mske  a  few  obneryationB,  and  they  should  be  brief,  beca 
report  trnd  statement  of  accounts  contained  the  gist  of  hU  hv  cot 
In  the  first  jJace,  the  shareholders  would  be  surprised  tf»  tied  the  si 
the  bank  quoted  so  low.  This,  however,  was  the  result  of  vaiit 
malicious  rumours  which  had  been  spread  by  certain  parties.  ThtJi 
be  no  doubt  on  that  point.  (Hear.)  He  hoped  the  shareholder  wot 
eatijitied  tlnit,  though  their  losses  had  been  heavy,  still  the  Iniuk  ^ 
on  its  last  legs— (hear, hear) — as  some  people  had  hope*]  tmd  wish* 
be.  (Hear)  The  petition  for  winding  up  the  company,  which  waa  j 
to  in  tlitj  report,  was  the  petition  of  one  of  the  shareholders,  who  wa 
gated  to  that  proceeding  from  the  fact  of  the  company  hvmg  at  issi 
hirn  on  a  qiK«tion  of  account.  To  protect  himself  from  the  ei>usequE 
this  actirm  he  purchased  five  shares,  and,  as  a  shareholder,  he  i>et 
the  court.  The  petition  was  simply  a  defence  to  the  action  wlxi 
been  brought  against  him  by  the  board  of  directors,  and  the  reB' 
that  the  alfair  wan  settled.  He  thought  he  might  now  dimply  moi 
the  report  be  adopted. 

Mr.  Sebag  had  great  pleasure  in  seconding  the  motion,  and  he  t 
that  great  praise  was  due  to  the  directors.  He  believed,  indeed,  tl 
bank  was  not  quite  in  good  working  order,  and  that  the  figure* 
appeared  on  the  face  of  the  accounts  were  not  to  be  regarded  as  a  ci 
of  what  might  be  done  hereafter.  They  might  be  said  to  be  in  the 
tion  of  a  larsre  ship  not  sufficiently  manned  by  a  proper  crew.  He  si 
without  oflluco  to  the  directors,  but  they  had  not  so  largely  ams 
aboard  as  they  themselves  might  desire.  The  shareholders  would  ri 
that  thiB  bank  was  established  under  favourable  auHpkeH,  and  it  i 
now  a  question  whether  they. had  given  too  much  for  it  ■  it  was 
looking  baek  and  he  trusted  the  shareholders  would  uiaufiilly  aeo 
exertions  of  the  directors,  and  that  they  would  express  their  satii 
with  the  report.  For  himself  he  oordudly  and  gratefully  seconc 
motion. 

A  Shareholder  reminded  the  proprietors  that  at  the  la8t  meeting  tU 
torb  pledget!  themselves  to  use  their  utmost  exertiouB  to  secure  the  i 
of  a  uianagt^r.     Had  anything  been  done  to  attain  that  object  1 

A  Shareholder  asked  how  it  was  that  the  accounts  were  not  audi 

The  ChairmaD,  in  reply,  stated  that  they  had  not  raoeived.the  a^ 
tiU  the  middle  of  the  previoni  day.    This  waa  not  an  ordinal^ 


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and  American  Finance  Corporation.          329  i 

y 

bad  been  made  by  the  board  that  a  statement  of  ac-  [ 

de  out  on  this  occasion.     At  the  proper  time  the  ? 

lited.     With  resi>ect  to  the  inquiry  made  as  to  the  ' 

ager,  he  begged  to  refer  the  honourable  shareholder  ; 
)ard  were  in  treaty  with  a  gentleman  to  come  in  aa 
not  say  that  the  appointment  was  fixed,  for  it  was 

eman  they  required  must  have  a  thorough  know-  j 

Spanish,  and  Italian  Ian  guages,  and  such  a  person  J 

1  every  day.     For  himself  he  should  hail  with  joy  j 

np>etent  gentleman,  who  would  relieve  him  and  the  ] 

nuch  responsibility  in  filling  a  thankless  task.  1 

put  that  the  report  and  statement  of  accounts  be  i 

iy.  r 

jre  passed  to  the  chairman  and  directors,  with  the 

yers,  Messrs.  Schmidt  and  Standsen,  which  were  re-  I 

antlemen,  and  subsequently  by  the  chairman.  j 

re  marked  by  the  best  possible  spirit.  i 


AND  AMERICAN   FINANCE   CORPORATION, 
LIMITED. 

eral  meeting  of  the  shareholders  of  this  corporation 
February,  at  the  London  Tavern,  Edward  Ruston 
lir. 

h  the  meeting  was  convened  was  thus  stated  : — For 
jring  an  agreement  provisionally  entered  into,  dated 
ween  the  Public  Works  Credit  Company  of  London 
id  the  European  and  American  Finance  Corporation, 
uplicate  now  lies  at  the  offices  of  the  said  corporation 
shareholders,  and  for  confirming  and  carrying  the 
•  effect;  for  the  declaration  of  a  dividend,  and  for 
utions  as  may  be  necessary  or  considered  desirable 
iaid  agreement,  or  incidental  thereto, 
secretary,  read  the  report,  which  stated  that  share- 
ean  and  American  Finance  Corporation,  Limited,  in 
hares  of  £20  each,  with  £2  per  share  paid,  will  receive 
.  the  Public  W^orks  Credit  Company,  with  £5  paid 
.  for  every  two  shares),  and  they  will  receive  an  im- 
t  of  2s.  per  share.  In  addition  to  this,  the  new  shares 
lividend  from  the  Public  Works  Credit  Company  in 
s  confidently  anticipated,  will  prove  highly  satisfac- 
'^orks  Credit  Company's  shares  are  on  the  official  list 
je,  and  its  position  and  prospects  are  such  as,  in  the 
;ors,  to  render  the  alliance  a  matter  of  congratulation 
Four  of  the  directors  will  join  the  board  of  Ihe 
t  Company,  and  steps  will  forthwith  be  taken  for 
3  European  and  American  Finance  Corporation, 
>  form  to  wind  up  and  extinguish  that  company, 
d  the  solicitor  would  now  read  to  them  the  proposed 
Public  Works  Credit  Company  of  London  and  Paris, 


Digitized  by  LnOOQ IC 


o30  European  and  American  Finance  Corporation. 

Mr.  Eimber  then  read  the  terms  of  the  agreement  juranged 
the  oompanies. 

The  Chairman  said  they  had  heard  the  directors'  report^  and  1 
sional  agreement  which  was  referred  to  in  the  report.  The  rep 
directors  was  so  sufficiently  clear  it  did  not  require  minjh  eluci 
his  hauds.  He  would  proceed  to  state,  na  shortly  n»  ho  ci^ 
he  thought  necessary  to  notice,  and  he  wo-lJ  first  bring  TxH 
the  balance-sheet  of  the  company  up  to  the  30th  of  I>i?ceniber 
was  exhibited  a  profit  of  £2,000,  or  20  per  cent,  on  i\m  paid-i 
of  the  company,  which  was  evidence  that  the  directiou  hiui 
idle  in  their  humble  exertions  to  promote  the  intere&ta  of  the 
This  amount  of  profit  would  have  enabled  the  directors  at  tl 
and  ordinary  meetiug  in  March  next  to  declare  a  dividiml  t^f  10 
besides  commencing  a  reserve  fund,  and  pa3ring  off  !i  fair  \ 
of  the  preliminary  expenses.  They  were,  however,  a^si mbletl 
the  present  occasion  to  have  a  different  course  reoommenckHl  to  t 
report  had  already  informed  them  that  their  directors  luul  had  f 
time  a  growing  conviction  that  an  amalgamation  of  tliat  <xim] 
one  of  a  kindi^  character  would  be  highly  beneficial,  i^nmdetl 
be  done  on  satisfactory  terms.  That  opportunity  ha<i  r>ccurrecj, 
directors  had  improved  upon  it,  and  they  had  exe<;uted  a  provisio 
ment  which  they  now,  with  their  sanction,  proposed  Uy  carry  i 
with  the  company  stated  in  the  report,  the  Public  Works'  Crt 
pany  of  London  and  Paris,  Limited.  Tftie  report,  witli  the  half 
annexed,  had  been  circulated  amongst  the  shareholders,  riBd  if  1 
holders  read  that  report  and  balance-sheet  as  the  directors  did,  t 
not  do  otherwise  than  feel  it  had  an  encouraging  aapc  ct.  In  a 
the  report  and  balance-sheet  the  directors,  for  their  giiidano 
investigation,  which  had  been  somewhat  protracted!  Rtid  ivnx 
laid  before  them  a  statement  of  the  operations  of  the  I^dilic  Wc 
pany,  and  a  balance  sheet  to  the  Slst  December  last,  wliieh  sb 
for  that  six  months  the  profits  had  exceeded  by  50  p*^  r  c^snt.  t 
preceding  twelve  months.  From  that  balance-sheet  \w  might 
that  the  paid-up  capital  to  the  81st  of  December  am>>uDte<l  t^ 
nearly  equal  to  the  paid-up  capital  of  their  company.  He  tneui 
because  several  genUemen  had  written  to  the  directors  to  know  1 
there  wsa  to  be  an  amalgamation  with  a  company  with  less  paid-i 
That  was  not  so,  as  they  would  perceive.  Every  facility  hiul  be 
their  directors  in  their  investigation,  and  they  had  no  IveHitation 
ing  all  the  statements  laid  before  them  as  true,  and  tht^  aceoun 
reck.  To  enable  them  to  carry  out  this  proposition  it  would  be 
to  place  the  unissued  shares  of  the  company,  somewhat  ^hort  ol 
number.  The  directors  proposed  that  these  should  ciirry  tH|ual 
with  those  already  issued.  The  directors  felt  no  difficuJ  iy  \  n  aci*<J 
that  end,  but  before  taking  any  step  in  that  direction  they  fi^iind  tl 
bound  to  take  the  sense  of  the  meeting.  (Hear,  hear.)  AH  tb^ 
tions  of  the  corporation  with  the  shareholders  woidd  he.  obperv 
company  with  which  they  proposed  to  amalgamate.  As  to  t 
which  they  had  notice  some  time  ago,  in  stringent  tinii^,  the 
think  it  necessary  to  make  that  call.  He  begged  to  mine  that  t 
ment  provisionally  entered  into,  dated  January  9,  181^5,  bet 
Public  Works  Credit  Company  of  Loudon  and  Paris,  LiTuite* 
European  and  American  Finanoe  Corporation,  be  approvixl,  < 
and  carried  into  effect. 


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I  Leicestershire  BanMng  Company,  331 

ndler  seconded  the  motion;  and  after  some  conversa- 
jarried. 

jd  the  opinion  of  the  shareholders  as  to  what  course 
the  disposal  of  the  unissued  shares. 
Llowed,  and  it  was  the  general  opinion  that  the  shares 
le  shareholders  pro  raid. 

meeting  were  then  voted  to  the  directors  and  chair- 
lings  came  to  a  conclusion. 


\ 

\ 

JICESTERSHIRE  BANKING  COMPANY. 

aeral  annual  meeting  of  proprietors  of  this  bank  was 
tel,  Leicester,  on  the  Ist  February  ;  William  Evans 
the  chair.  J 

nted  the  following  report : —  : 

e  pleasure  in  meeting  the  proprietors  on  this  occa-  i 

before  them  the  results  of  the  business  of  the  past  j 

4  opened  with  a  general  advance  in  the  value  of  ] 

lie  whole  year  greater  changes  have  taken  place  in  b 

han  can  be  remembered  in  any  former  period  ;  this  * 

ices  has  required  unusual  watchfulness  and  care,  and  I 

d  to  be  able  to  report  that  the  result  of  the  business 

very  satisfactory.      The  profits,  after  making  ample  { 

1  debts  and  paying  all  expenses  and  losses,  amount 
5.  Oa.  7d. ;  this,  with  the  balance  of  £(3,802.  4«.  M.  I 

December,  1863,  makes  a  total  of  £36,497.  6s.  Ad.  to  ! 

Che  directors  recommend  the  payment  of  a  dividend 

the  old  shares,  and  of  6«.  per  share  on  the  new 
)  tax,  being  at  the  rate  of  £6  per  cent,  for  the  half- 
commend  that  £9,049  be  placed  to  the  reserved  fund,  i 
be  carried  to  the  credit  of  the  account  for  1865,  the 
,  under  : —  ' 

£  «.  d. 

in  August  on  old  shares 10,125  0  0 

in  August  on  new  shares 951  0  0 

[d  shares  as  now  recommended  10,125  0  0  I 

ew  shares  as  now  recommended    1,902  0  0  i 

come  tax    800  0  0  1 

lid  9,049  0  0 

OSS  for  1865  3,486  5  4 

£36,497    5    4 

I  the  bank  is  now  £200,450,  consisting  of  13,500  old 
Bach,  fully  paid  up,  and  6,340  new  shares  of  like 
*5  per  share  hsvs  been  paid.  The  reserved  fund,  with 
1  (together  with  the  wldition  of  £1,120  received  for 
ares  sold),  will  now  amount  to  £72,000.  The  pro^ 
that  the  directors  are  carrying  a  larger  amount  than 
I  preference  to  declaring  an  increased  dividend,  but  \* 

ation  they  are  satisfied  it  will  be  the  best  ccmrse  to  j' 

I. 


Digitiijed  by  VjOOQ IC 


i 


S32  Sheffield  and  Rotherham  BanJc. 

adopt,  haviog  regard  to  the  increasing  busineBH  of  the  bauk,  sind  il 
crua^e  in  the  capital  which  will  be  made  when  the  whole  ui  the  calU 
the  new  shares  shall  have  been  paid  up.  The  directors  re<Mniimetic 
this  meeting  should  make  a  further  call  of  £2.  ICl-j,  i^v  share  \im 
holders  of  the  new  shares,  to  be  paid  upon  the  third  day  of  July 
making  the  amount  paid  up  on  these  shares  £7.  lOa.  per  share.  Thei 
holders  have  been  informed  by  the  circiilar  convening  this  meetin 
Thomas  Pares,  Esq.,  one  of  the  directors  whose  term  tif  ottiee  now  ej 
htiA  expressed  a  wish  not  to  be  re-elected,  in  consequetice  of  hi**  ini 
htjdth ;  the  directors  feel  sure  that  the  whole  body  of  shareholdci 
mate  with  them  in  the  expression  of  their  deep  regret  for  hi.=^  retir< 
31  r.  Pares  was  first  elected  a  director  in  1841,  and  during  the  leugl 
period  of  twenty-four  years  he  has  most  kindly  and  cfticiiintly  fcti 
Ut  the  interests  of  the  bank.  Charles  Thomas  Freer,  Esq.,  of  Bil 
Coplow,  has  been  put  in  nomination  as  a  director  in  the  ph'ice  c 
Pares ;  the  other  director  retiring  by  rotation  is  Mr,  \V'illiani  Billso 
n<j  other  names  having  been  proposed,  those  gentiemeu  are  alone  e 
at  this  meeting." 

It  was  then  resolved — 

""  That  the  report  of  the  directors  be  received  and  adopted,  i 
printed,  and  a  copy  sent  to  each  proprietor." 

''  That  Charles  Thomas  Freer,  Esq.,  be  elected  a  direetor  of  thi 
pnuy  in  the  place  of  Thomas  Pares,  Esq." 

'*  That  Mr.  William  Billson  be  re-elected  a  director  of  this  ooinp 

'^  That  all  the  proprietors  or  other  holders  of  the  new  ah  ares 
capital  of  the  company  created  in  1863  be  called  ujwii  to  ^tay,  on  t 
day  of  July  next,  a  further  instalment  of  £2.  10*.  pr  nhrire  in  at 
to  the  sums  which  have  been  already  paid  in  respect  thtreof." 

**  That  this  meeting,  while  deeply  regretting  that  iniT-iured  health 
have  caused  the  retirement  from  the  direction  of  tlie  bank  of  T 
Pares,  Esq.,  beg  to  offer  him  their  cordial  thanks  f '  »r  his  asAistftD 
valuable  services  for  the  past  twenty-four  years,  a  period  which  cob 
almost  the  entire  existence  of  the  present  company. 

**  That  this  meeting  present  to  the  board  of  directors  it«  best  thai 
tlieir  kind  attention  to  the  interests  of  the  company,  and  for  the  M 
XoTj  report  this  day  presented." 

**  That  the  thanks  of  the  proprietors  be  given  to  the  several  < 
of  the  company  for  their  efficient  services." 

^'  That  the  thanks  of  the  meeting  be  given  to  the  chairman  i 
able  conduct  in  the  chair." 


SHEFFIELD  AND  ROTHERHAM  Bh^K. 

TiiK  ordinary  general  meeting  of  proprietors  was  held  at  the  Bi 
Sheffield  on  the  1st  of  February,  George  Hounsfitdd,  E^q.,  in  the  cli 

The  following  report  was  read  : — 

*^  Your  directors  in  presenting  to  the  shareholders  their  annual 
have  much  pleasure  in  sa3ring  the  business  and  profits  of  the  bank  < 
tlie  last  year  have  far  exceeded  those  of  any  former  year.  In  coustn 
of  the  increasing  business  at  the  Buxton  branch,  your  dirt^ctors  have 
it  necessary  to  take  more  commodious  premises  and  op^n  the  bask 
The  new  bank  premises  were  opened  on  the  Ist  June  Uat,  und 


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'flield  and  Rotherham  Bank, 


333 


taac  Walton,  formerly  cashier  at  the  Bake  well 
been  satisfactory.  For  uome  time  past  your  custo- 
effield  have  been  put  to  great  incouvonieuoe  in  con- 
late  acoommodation  of  the  present  banking  hoiiae, 
3  decided  to  build  a  new  one  in  order  to  meet  the 
cTtaaed  business*,  and  now  propose  to  lay  aside  a 
roSts  for  that  purpose.  The  profit  and  Idb#  aoooniit^ 
terations  at  Buxton,  the  expenses  of  management, 
L*st^titit]g  a  gratuity  of  10  per  cent,  on  their  ftalaries 
bank,  shows  a  net  gain  of  £38,287.  11*.  6^/.  Your 
A  occasion,  and  for  the  future,  to  fii  the  dividend 
•r  cent,,  and  any  further  sum  applic^iblo  to  divi- 
iKtniL^i,  Yoiu:  directors  have  written  off  for  1  oases 
Tcd  £5»000  to  new  budding  account,  and  they  now 
»f  profits  for  the  year  en<liug  Ulst  December  laat, 
■  cent,  per  annum,  t4igether  with  a  bonus  of  £2  j>er 
»,  and  10«.  per  sharu  on  the  quarter  shares.  The 
Lst  rect?ived  on  account,  and  in  awticipation  of  tbia 
t  after  the  rate  of  5  per  cent,  per  annum ;  the 
the  bonus,  will  bt^  payable  at  the  bankf*  of  the 
it  the  8th  irjgtant.  The  bsdance  remaining, 
1  pa^ed  to  the  cretUt  of  the  reserved  fund.  Thia 
3  amounted  to  £65,082.  5r/. ;  profit  on  sale  of  ten 
:,  £360 ;  amount  tranafetred  from  profit  and  Iohb 
. ;  total,  £67,307.  8.*.  M  \  deduct  vote  to  directors 
ig,  £700 ;  t<ital  3lsi  Deeember,  1864,  £66,G07. 8s.  Od, 
iir  Ge<irgo  Hounsfield  are  the  rotlrmg  directors, 
re^  election.'* 

tneC'iJuct,  ZXit  Ikeemhm',  1864* 
tmpany,  dept>sit8,  and  notes  In  circn- 


X811,35'i 

1C0,704 

66,»507 

30J32 

5,000 


8  10 
0  0 
8  6 
0  0 
0     0 


£1,073,790  17     4 


n|miiy,  fatUi  ftsd  cMh  in  hand        .*«  £1,0lS3J  93  11     0 
10,601     A     4 


£1,073,790   17     4 


:al    ^aT<  ijientof  acoounte  now  read  be  adopted 
..^  ^„K-  Rh.4rt; holders, 
rby  and  Mr.  Geurgts  Honnafield,  the  retiring  direc- 

lomisUeld  and  Mr.  William  Brtiwn  be  appointed 
year. 
JL  of  the  meeting  he  giyen  t»>  the  directors  for  their 


;j?u 


Lwerpool  Union  Bank. 


valuable  services  daring  the  past  year,  and  that  £700  bo  places 
ilisposal  out  of  the  funds  of  the  company. 

*'  That  the  thanks  of  the  meeting  be  given  to  Mr.  Wild,  and 
managers  and  officers  of  the  bank,  for  the  able  manner  iii  which  t 
diaoharged  their  duties. 

^'That  the  l^anks  of  the  meeting  be  given  to  the  cliairmut 
tiflicient  services  in  the  chair." 


LIVERPOOL  ONION  BANK. 

The  thirtieth  annual  meeting  of  this  bank  was  held  at  the  Law 
Hon  Booms  on  the  1st  February;  James  Aspinall  Turntir,  Esq., 
the  chair. 

The  following  report  was  read : — 

"  In  laying  their  thirtieth  annual  report  before  the  proprie 
ill  rectors  beg  to  remind  them  that  the  past  year  has  been  charact- 
extraordinary  fluctuations  in  the  value  of  money  and  iirtKluee 
paaied  by  serious  mercantile  disasters,  so  that  they  con^^iik^r  th 
ju»tiQed  in  congratulating  the  proprietors  in  being  able  to  submit 
tiie  following  statement.  The  paid-up  capital  of  the  bimk  is  i 
and  the  number  of  the  proprietors  164. 

On  the  Slst  December,  1863,  the  reserved 
surplus  fund  was    •••  ...  ...     £140,481  13 

To  which  add  net  profits  for  the  year  1864, 
after  providing  fully  for  all  bad  and 
doubtful  debts        67,433  12 


£197,^*15    5 
From  which  dednot  two  half-yearly  divi- 
dends of  6  per  cent,  each,  £45,000 ;  in- 
come tax  paid  by  the  bank,  £1,827. 6«.  Sd,      £46,827     G 


Leaves  the  present  reserved  surplus  fund    £151,087  18 


General  Balance-sheet,  Slst  December,  1864. 

LIABILITISS. 

Capital  account 

Reserved  snrplas  tand     

Including  acceptances,  £40,495  18#«    Id, 

Deposit  and  current  accoonts     

Hcbate  on  bi^s  on  hand  at  6  per  cent 


X45O»0 
15l,C 

lej 

£2»422,7 


A8SBT8. 

Bills  of  exchange 

Canh  on  hand,  in  Bank  of  England,  London    bankers,  and 

brokers  at  call  and  short  notice 

Temporary  loans 

Transfer  stamps     ... 

Shares  held  by  the  bank 

Brunswick  and  Fenwick  Street  property         


,,.£1,700,8 


305,4 
378,5 
1 

24,4 

£2,428,7 


Digiti 


ized  by  Google 


whur  Bank  in  (J  Compntitj^ 


385 


^  of  tiie  bank  was  jC300,000,  which,  with  pGricxlical 
earnings  over  tlivideij<ls,  incluiiing  the  pre*st?iit  re- 
B  uow  douhled  j  and  the  dii  cijt«>r»  hojie  thut  tlie  time 
ben  they  will  be  able  to  carry  fidly  into  effect  tho 
the  last  annual  meeting,  empowering  tht^m  to  a<!4}U' 
Borplu^  fnud  to  £200jUOO.  In  fx>nfiequt^nce  ui  the 
li  last,  of  their  old  and  respected  colleague  David 
IB  b«en  connected  with  the  hsink  wnce  its  origin,  the 
ty  with  the  deed  of  settlement,  filled  up  the  vacancy 
Wihion,  Eftq.,  meroliant,  who,  with  Edgar  Garaton, 
on,  both  of  whose  places  will  have  to  be  Bupplietl  by 
U  meeting.  The  directt^ra,  in  asking  the  ^support  of 
-ake  this  oppjrtiinity  of  stating  that  the  bauk,  in 
inmerouR  country  bank  connectioos  and  agencies 
om,  18  enable*!  to  afford  iU  cujstomers  every  possible 

■n  of  their  huainesa/' 

4  were  uuiinimoualy  adopted : — 
rrjiLtn,  seconded  by  0,  W,  Beade,  Esq.—**  That  the 
I  adopted,  and  that  the  same  be  printed  tiad  circti^ 

ililk,Esq.,»eo*mdG<J  by  Edward  Moon,  Esq.— "  That 

be  re-eled^od  a  director." 

e  Wood,  Esq.,  seconded  by  William  GeddeSy  Esq. — 

,  Esq. J  be  re-elected  a  director." 

her  Bujiliell,  Esq.,  seconded  by  Robert  Mason,  Esq. 

of  the  meeting  bo  given  to  the  direetora  for  their 

Jig  the  past  year/' 

airmail^    seeonded  by  John   Gordon,  Estj. — "  That 

Dprietors  be  given  to  Mr.  Lister^  the  maim^eTj  and 

mk  for  their  zealoua  services," 

Lrman  were  unanimously  voted,  and  the   prooeed- 


KSHIBE  BANKING  COMPAJJHf. 

ng  of  the  shareholders  of  this  bank  was  held  on  the  1st 
D  ri»m  of  the  bank,  in  Leeds,  when  there  wtiA  a  large 
itors.  James  Audua,  Escj.,  the  cliairman,  occupied 
yre  also  present  the  other  directors,  viz, :  Mr.  Leeman, 
,    Mr.   Kitaon,    Mr.   North,   and   Mr.   Christopher 

ml  manager,  bavina  read  the  notice  convening  tho 
ig  rsporta  of  the  directors   and  auditor  were   (Uso 

re  much  pleasure  in  meeting  the  shareholders  to  pre- 

1-  lialf.year  ending  tho  31flt  December 
•  »i).  12.S.,  out  of  wliicli  it  is  pro- 
i  tiividend  of  one  guinea  per  share 

ix),  amounting  to £15,234     9    0 

r^hatv  fund, ...» 13,727  10    0 

r  shaTD  on  hMl  shores. 

1,904  13    0 

he  bad  and  doubtfiU  debt  fund. 


Digitid 


336  Yorkshire  Banking  Company, 

^  The  average  value  of  money  having  ruled  high  dnriDg  tha^ 
months,  the  bank  has  been  enabled  to  employ  its  resources  to  Ml 
ordinary  advantage ;  and  whilst  the  directors  cannot  but  cotigr»tul 
shareholders  on  the  result,  as  shown  in  an  increase  of  .£3,017*  1 
over  the  previous  half-year's  profits,  they  at  the  same  time  dtsetn  h 
to  suggest  such  a  result  can  scarc^aly  be  expected  to  be  maintaij 
decreased  rates  of  interest.  With  the  sum  now  proposed  tt>  be  k 
the  New  Share  Fund,  that  fund  will  amount  to  £50,791,  15^.,  or 
£6,863.  16«.  of  its  completion.  The  following  is  the  stateraeut  of 
ties  and  assets,  as  certified  by  the  auditor,  who  alao  maketi  a  s* 
report,  which  is  annexed : — 

LIABILITIES. 

Shareholders  for  capital  stock     ^IStJjH^^ 

Dividends  unpaid 17( 

New  share  fund      ^1M 

Deposits  and  credit  balances       1,301.131 

Interest  on  deposit  receipts  and  rebate  of  discount  on  bills  ...  1 1^^' 

Notes  in  circulation          •        ...         ...  t  J 

Bad  and  doubtful  debt  fund        •••        

Reserved  surplus  fund      r^* 

Profit  and  loss  account 3ii -^ 


£1,599.55 


1BSBT8. 

Bills,  securities,  and  cash  in  hand          £5r< 

Amount  invested  in  consols        t< 

Amounts  advanced  on  current  accounts  and  in  bankers'  hai>da  i*^ 

Freehold  property  and  furnishings        ^ 

Stamps  on  hand      


£1.599,55 


**  In  terms  of  the  64th  clause  of  the  deed  of  settlement,  it  will 
on  this  meeting  to  elect  an  auditor  for  the  year  ensuing.  Kir. 
Blackburn,  being  eligible,  offers  himself  for  re-dection/' 

auditob's  bbfobt. 

'^By  the  64th  clause  of  your  deed  of  settlement,  the  auditor 
powered  from  time  to  time,  if  he  thinks  necessary,  to  make  m  n 
report  to  the  shareholders  of  the  bank.  During  the  eiglit  years 
have  had  to  look  after  your  interests,  no  necessity  ha$i  ever  aiii 
making  a  separate  report :  nor  is  there  anything  in  the  affairs  of  tl 
at  the  present  time  requiring  such  notice.  My  reason  h  f(  r  departii 
the  usual  course  on  this  occasion  arise  out  of  the  di>iastroua  aii< 
spread  ruin  caused  by  the  suspension  of  the  Leeds  Banking  Co 
which  to  the  outside  world  was  apparently  as  prosxi^rou'i  tus  the 
shire  Banking  Company.  Twice  in  each  year  there  in  kid  befi 
a  balance-sheet  and  statement  of  the  assets  and  liabilities  of  ib< 
certified  by  me,  and  for  which  I  am  individually  respmsible  as  a  pal 
professional  auditor.  In  the  case  of  the  Leeds  Banking  Company  ii< 
ment  of  assets  and  liabilities  was  laid  before  the  sbnreholders^  d 
any  public  professional  auditor  appointed  to  verify  the  correctness 
accounts  of  the  bank.    The  same  irregular  course  of  proceeding  ap] 


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rorJcshire  Banking  Compani/.  337  ;  -i 

\  •   * 

g  the  business  of  the  bank.    Mr.  Greenland  allowed  ;  ■ 

lis  management  on  the  part  of  his  directors,  not  even  i  *  ' 

ally  appointed  to  confer  with  and  assist  him  in  such 

manager,  IVIr.  Scott,  takes  upon  himself  no  such  re-  ' 

res  it  with  hia  directors,  with  some  of  -^hom  he  is  ; 

ion,  and  once  a  week   the  aifairs  of  the  bank  are 

rhole  board.     The  great  source  of  loss  and  disaster  '    • 

mka  that  have  hitherto  suspended  has  arisen  from  the  . .  ,   \ 

nd  re-discount  of  bills.     In  the  Yorksliire  Banking  \  * 

ransactions  are  known;  the  bills  received  from  and  '"  ! 

>mera   remain  in  the  hands  of  the  bank  until  they  '•  I 

when  they  are  sent  up  to  London  for  collection  ;  so  '  •  .1 

ver  unprepared  to  meet  any  demands  made  upon  it, 

rces  in  its   own  coffers  to  provide  for  any  call  or  I,  '   . 

bilities  of  the  bank  on  endorsements  never  at  a^y 

The  past-due  bills  have  not  averaged  more  than  •  -    • 

four  years,  and  if  any  loss  is  likely  to  accrue  there- 

►vided  for  in  the  bad  debt  fimd  before  the  half-yearly  '  '    } 

xl.    At  the  present  time  the  past-due  bills  amount  to 

bt  fund  is  always  in  excess  of  the  known  bad  or  *  i 

Q  bank  at  the  time  of  each  half-yearly  making  up  of  '* 

es  the  regular  and  periodical  investigations  of  your  .    • 

is  constantly  employed  in  visiting  the  branches  of 
Lot  so  engaged,  is  carrying  on  an  inspection  and  over- 

i  at  the  head  office.     The  system  of  check  and  audit  . 

5t  as  human  foresight  can  make  it.  The  vigilance 
:tors,  the  general  manager,  and  the  branch  managers 

3  shareholders,  largely  interested  in  the  success  of  the  *  ; 

securities  taken  for  overdrawn  balances,  have  placed 
1  of  security  second  to  none,  as  is  shown  by  the  small 

)ts  during  the  term  of  my  audit,  and  by  the  remime-  i  ; 

Lisiness.     The  statement  of  the  assets  and  liabilities  ' 

by  me  is  appended  to  the  directors'  report  in  the 

a  addressed  the  meeting  and  said — "  You  have  now  , 

le  directors,  and  you  have  also  heard  the  special  re- 

itor  has  felt  it  his  duty  to  make  to  you  under  the  ; 

late  failure  of  the  Leeds  Banking  Company,  I  have 
y  own  to  offer  to  you,  because  I  could  not  add  to 
res  themselves  and  the  statements  of  Mr.  Blackburn ; 
ou  most  heartily,  that  after  such  a  blow,  as  the 
Bank  might  be  expected  to  give  to  all  confidence 
bank  showed  the  elasticity  and  strength  of  its  re- 
trough  the  fire  unscathed.  We  might  have  looked 
part  of  the  public,  but  none  such  was  shown,  either 
any  of  our  branches;  and  I  was  surprised  and  so 
to  find  that  instead  of  our  deposits  being  withdrawn, 

lave  expected,  they  ratljer  increased  than  otherwise.  :  < 

i  that  the  auditor  has  thought  it  his  duty  to  make  | 

ihe  way  in  which  the  business  of  this  bank  is  con- 
I  not  blind  to  the  natural  fears  which  the  Leeds  Bajik 
ed  throughout  Yorkshire,  and  we  quite  concur  with 

re  entitled  to  know  how  your  own  afiairs  are  managed*  ,  ; 

twenty  years  your  chairman,  and  have  too  large  a  ;      .  ^  . 

27 


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izfedbyGoipgle 


ms 


Eastern  Excliange  Bank. 


stake  in  the  prosperity  of  this  bank,  and  so  have  riy  brother  din 
give  the  reins  into  the  hands  of  any  manager.  Wu  havi>  a  grea 
for  our  manager,  bnt  we  think  for  onrselyes.  We  do  not  un 
being  directors  only  in  name  and  not  in  reality,  and  we  therefor 
to  see  and  know  all  that  is  going  on  from  week  to  week.  As  M 
huxn  has  told  yon,  we  have  no  re-disoonnting,  but  our  bills  rema 
case  until  due,  ready  to  meet  any  emergency  that  may  happeiL 
the  course  we  shall  continue  to  pnrsne.  Onr  prt>fit  for  the  last  1 
enables  ns  to  carry  a  large  stnn  to  the  new  share  account,  and  I 
doubt  that  if  I  am  spared  to  meet  you  next  Aiig^ist,  it  will  I 
uounce  that  we  have  Aen  saved  out  of  profits  the  whole  of  the  ne 
and  to  create  the  5,491  new  shares.  In  the  meantime  I  have  tc 
my  unbounded  satisfaction  at  the  prosperity  which  hn3  attende 
my  fullest  confidence  that,  by  pursuing  the  prudent  course  "we  have 
done,  this  bank  will  continue  to  retain  the  same  ctmlidtince  iti  pm 
mation,  and  be  productive  of  the  same  advantages  t^^  y*^u  aa  flha 
as  have  hitherto  attended  us,  I  have  now  to  move  the  adi>ptit: 
report." 

Mr.  Edward  Brown,  of  Bath,  seconded  the  adoption  of  the  rq 
suggested  that  the  remarks  which  had  been  made  bj  the  chainni 
bo  printed  with  the  two  reports,  and  circulated  among  the  ^ax«lu 

This  suggestion,  as  well  as  the  reports,  were  unauimoufily  ad 
the  meeting. 

Besolutions  were  then  passed  approving  the  dividend,  and  also  iil 
priation  of  the  surplus  profits  towards  the  new  share  fnnd,  as  pre 
the  directors'  report. 

Mr.  Blackburn,  the  auditor,  was  unanimously  re-elected,  afte 
first  answered  several  questions  put  to  him ;  and  a  very  coriii; 
thanks  was  passed  to  Mr.  Scott,  the  general  manager,  tor  the 
manner  in  which  he  has  conducted  the  bank's  concerns  for  so  ma 
A  similar  acknowledgment  was  paid  to  the  managers  of  th« 
branches. 

The  meeting  separated  with  a  unanimous  vote  of  thanks  to  the 
and  directors. 


EASTERN  EXCHANGE  BANK,  LIJIITED. 

The  first  ordinary  meeting  of  the  Company  was  held  ^t  the  ba 
Street,  Liverpool, >on  February  2nd ;  Patrick  Hunter,  Esq.,  depu 
man,  presiding,  in  the  absence  of  Edward  Combe  r,  Ei^q.,  chairm 
company.  Amongst  the  shareholders  present  were,  Me^ssrs.  T.  01 
M.  Bowen,  B.  Dirom,  A.  W.  Maicomflon,E.  Banner,  J.  Bigham,  J 
W.  Raddiffe,  I.  Gill,  William  Barry,  William  Douglas,  Swinfem 
O.  Eaarle,  David  Malcomson,  Thomas  Comber,  J.  S,  Smythe,  F.  1 
T.  Maxwell,  Thomas  Lapham,  Henry  Beaaley,  W,  G,  Nicholsc 
Laagenbach,  James  Johnson,  Bogera  Waterhou^e,  W.  C  Nich 
Sproule,  William  Cazson,  drc,  d^. 

The  Chairman  said  he  must  crave  the  indulgence  of  the  slia 
in  fillmg  the  chair.    He  was  extremely  sorry  to  Bay  that  their 
chairman  was  confined  ai  home  by  serious  illnaas. 
The  company's  seal  having  been  fixed  to  the  tnumfar  of  sharea 
The  notice  convening  the  meeting  was  read  by  Mr.  Andrew 
sub-manager  and  secretary. 


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Hmtcrn  Exchange  Bank, 


339 


m,  sub-manager  and  secretaryy  then  read  tlxe  follow- 

jalling  the  shareholders  together  for  the  first  time, 
feed  statement  of  accounts  of  the  bank  since  its  for- 
nber,  1864.  The  difficulty  in  obtaiuiiig  a  suitable 
9  of  interest,  and  the  generally  embarrassed  state  of 
iced  the  directors  to  postpone  making  calls  and  oi>en- 
they  have,  however,  been  enabled  to  employ  satis- 
)f  capital  in  their  hands,  during  the  few  months  the 
ation,  as  appears  by  the  annexed  statement,  showing 
£3,368.  2^.  3d.,  out  of  which  they  recommend  a  divi- 
of  Is.  6d.  per  share,  free  of  income-tax,  say  at  the 

annum,  leaving  £368.  2s.  3d.  to  be  carried  forwai'd 
J  directors  delegated  Mr.  J.  H.  Etheridge,  general 
) Egypt  to  establish  a  branch  at  Alexandiia.     The 

him  are  highly  satisfactory,  and  it  ia  anticipated 
able  business  will  be  transacted  by  the  bank  there, 
ormerly  of  the  Agra  and  United  Service  Bank,  and 
Lstan,  China,  and  Japan,  has  been  appointed  resident 
ia.  The  directors  who  retire  by  rotation  are  Mr. 
Gr.  M.  Bowen,  and  Mr.  A.  Malcomson,  and  being 
.  they  offer  themselves  accordingly.  The  meeting 
an  auditor  for  the  ensuing  year,  and  fix  his  rema- 
nd Balance-sheet  for  the  Half -year  ending  the  ^Ist 
December,  1864. 

UABIUTIES. 


connted... 
posits,  &c. 


£120,000    0 

93,432  19 

469     0 

3,368     2 


£217,270     1     8 


ASSETS. 

Hce  and  specie  at  Alexandria  branch 
t  on  sundry  small  current  aceountff  ••• 
eounted  and  on  hand  .., 
Qgs,  the  property  of  the  bank  in  Cook 


PROFIT  AITO  LOSS  ACCOUHT. 

►f  management,  &c.,  £1,631.  15*.  6d.; 
n    hand    not  due  at  six  per    cent. 


or  the  half-year  ending  the  31st  De- 
0.  0$,  5d.;  transfer  fees  £195, 10«.  .•• 


£91,515 

149 

119,125 

129 

6,123 

228 


10 
0 
8 

1 
0 
1 


£217,270     1     8 


£2,147     8 
3,368    2 


£5,515  10     5 


£5,515  10     5 
£5,515  10    a 


Digitized  by  VjQpQ IC 


340 


Emteim  Exchange  Bank. 


The  ChaiTman  said :  "  Gentlemeii,  in  moving  the  atloption  of  tlu 
I  have  merely  a  very  few  remarks  to  put  before  you.  In  the  lir 
we  are  quite  prepared  to  hear  complaints  of  oyer-cautiouB&es»,  and 
doing  business  ;  but  I  think,  when  we  look  at  the  reports  of  sou 
Liverpool  and  London  banks — establishments  of  ulcl  ami  ex]; 
management — we  have  been  perfectly  justified  in  tho  course  -v 
have  adopted,  in  waiting  until  the  storm  and  crisis  has  him 
and  particularly  in  starting  a  new  finaucial  scheme — purely  an  i 
bank,  the  first  that  has  been  established  at  Liverpool^it  waa  the 
care  of  the  directors  that  nothing  should  be  done  to  ini[>air  the  a 
of  the  public  in  its  position  for  the  future.  It  would  have  bee 
happy  state  of  things  to  have  reported  that  even  this  smuQ  br 
£5,500  had  beeu  made  out  of  actual  business  of  banking ;  bu 
arisen  purely  out  of  interest.  We  confined  ourselves  entirely  to 
ible  securities,  which  were  taken  at  a  moderate  rate  of  interest,  s 
any  time,  when  opportunities  arose,  we  would  be  in  a  fiosition  a^ 
oimvert  them  iuto  cash  if  called  upon,  and  commeuce  tht^  operatio 
bank.  At  the  time  of  our  formation,  as  will  be  in  the  memory  ol 
you,  the  mania  for  banks  and  financial  schemes  got  to  such  a  1 
India,  and  particularly  in  Bombay,  that  the  demand  for  mauagei 
great  as  to  induce  the  ordinary  staffs  to  remain  there  iimt4^  of  o< 
England.  Great  inducements  being  offered  to  them  to  remain 
the  one  hand,  and  salaries  being  increased  at  home,  bad  wc  at  once 
a  manager,  we  should  have  entailed  a  very  heavy  annual  eipense  i 
bank ;  but  through  the  assistance  of  our  chairman  and  his  friends  in 
we  in  the  course  of  time  met  with  our  present  manager,  Mr,  Ei 
and  I  am  happy  to  say  that  the  directors  are  perfectly  satistied 
gentleman  whom  we  have  selected  to  undertake  Uit^  manage 
this  concern.  (Hear,  hear.)  He  is  at  present  in  Egypt :  he  i 
gated  by  the  board  to  proceed  there  to  open  a  branch  In  Alexani 
to  place  Mr.  Baker,  who  has  had  some  considerable  expericuce  at  i 
Bombay,  and  Kurrachee,  as  the  manager  at  Alexandria.  From  th( 
which  we  have  received  from  both  these  gentlemen^  we  have  evei 
to  anticipate  a  large  and  profitable  business  there.  We  abaU  imu 
appoint  agents  in  the  East,  in  Australia,  and  elsewhen?,  and  as  bog 
have  sufficient  capital  we  hope  to  have  our  own  branches  in  thesi 
I  don't  know,  gentlemen,  that  there  is  anything  elso  for  me  to  m 
accounts  are  aU  very  plain  and  explicit,  but  if  any  one  wi^he 
questions  with  regard  to  them,  I  shall  be  very  happy  to  answer 
directors  have  nothing  whatever  to  keep  back.  There  m  one  item 
upon  which  the  shareholders  may  require  some  additional  info 
namely,  the  £6,000  for  ^preliminary  expenses.'  I  may  state  I 
amount  is  made  up : — Stationery,  printing,  postage,  «irc.,  ;C1  ^49  j  bi 
£1,275;  advertising,  £2,547;  solicitors' expenses,  £1,050.  In 
state,  in  justice  to  our  solicitors,  that  the  charges  are  very  much 
than  they  woidd  have  been  but  for  the  precaution  the  clirectiirs 
issuing  separate  share  certificates,  a  step  which  they  oc^usidered  a  ta 
against  fraud.  That  has  also  increased  the  printing  expenses. 
vertising  is  a  large  amount  certainly,  but  you  must  remember  tha 
the  very  week  in  which  we  invited  applications  for  shares  the 
England  rate  was  raised  to  9  per  cent.,  and  had  we  not  advertised 
and  down  the  country  we  certainly  might  have  had  a  diiiiculty  in 
the  company.  But  we  were  well  repaid  for  the  fcrouble,  as  ih 
immense  numbers  of  applications,  much  more  than  we  had  rettc 


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Eastern  Exchange  Bank.  341  " 

ifidence  which  has  been  expressed  by  many  of  the 

svery  reason  to  hope  that  this  will  be  a  successful 

8.     (Hear,  hear,  and  cheers.)     It  will  take  time.     I 

r,  that  every  day,  business  is  gi*adually  coming  in  to  '• 

IV e  a  branch  in  Egypt  we  are  prepared  to  do  business  [• 

h  our  different  agencies  in  the  East  and  in  Australia.  \{ 

1  pleasuie  in  moving  the  adoption  of  the  report."  * 

'i 
rise  with  much  pleasure  for  the  purpose  of  seconding 

jport,  and  I  think  we  may  with  great  propriety  com- 

and  directors  of  the  company  for  the  great  caution 

rcised.     By  the  exercise  of  that  caution  they  have  '; 

;t,  and  cleared  a  gross  profit  equal  to  9  per  cent,  per 

»eriod  during  which  the  bank  has  been  in  existence. 

ik,  have  great  confideuce  in  the  future  prospects  of 

7  propose  to  divide  amongst  the  shareholders  all  the 

I  have  no  doubt  that  they  will  exercise  that  econo- 

on  which  the  prospects  of  the  bank  so  much  depend 

Lvidenda.    I  have  much  pleasure  in  seconding  the 

then  put  and  carried  unanimously. 
.  Chairman,  I  have  much  pleasure  in  proposing  that 
Ir.  G.  M.  Bowen,  and  Mr.  A.  Malcomson  be  re-elected 
.  Mr.  Hunter  has  been  practically  our  chairman 
aation  of  the  bank,  because,  unfortunately,  Mr. 
ixceedingly  bad  health,  which  I  trust  will  not  con- 
he  opportunity  of  saying,  however,  that  the  atten- 
er  has  devoted  to  the  interests  of  the  shareholders 
km  sure,  will  merit  at  their  hands  the  continuance 
dence.  Mr.  Bowen  and  Mr.  Malcomson  have  not 
I  the  welfare  of  the  bank  as  ordinary  directors,  and 
;  is  the  pleasure  of  the  shareholders  again  to  elect 
,  they  will  devote  the  utmost  service  they  can  give 
beg  to  move  that   these  gentlemen  be  re-elected 

3g  to  second  that  resolution ;  and,  as  I  am  pretty  well 
n  habitual  grumbler,  perhaps  it  would  be  well  if  I 
the  meeting  for  two  or  three  minutes  in  commenting 
^.  In  the  first  place,  these  accounts  are  given  in  an 
satisfactory  and  understandable  manner ;  and,  as  you 
>  which  any  exception  could  be  taken  in  the  prelim- 
)een  explained  and  detailed  in  a  way  that  cannot  but 
those  persons  who  have  read  the  reports  of  similar 
3  been  established  during  the  past  two  or  three  years, 

read  at  recent  meetings.  Not  having  had  much 
5-8heets  I  can  only  judge  of  this  by  its  contrast  with 

out  prominently  as  a  most  favourable  one  for  the 
id  the  management  of  the  concern,  and  is  a  satisfac- 
eholders.  One  item  in  contrast  with  others  of  a 
illy  small — ^I  mean  the  £1,050  to  the  solicitors.  That 
sed  at,  because  everything  that  appears  to  have  gone 
of  the  solicitors  seems  to  have  been  of  the  same 
r,     I  have  had  occasion  during  the  last  month  or 

of  at  least  thirty  or  forty  companies,  and  I  can  safely 


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342  Eastern  Exchange  Bank. 

say  tliis^  tiiai  with  no  exoeption  i^is  deed  standfl  eminently 
one  d  tbe  most  remarkaljle  and  just  to  the  shareholden  w 
read.  It  is  drawn  np  with  credit  by  the  eminent  firm  who  are 
of  it,  and  it  is  certainly  satisfactory  to  find  i^at  the  directorB 
tkmed  it,  f<^  it  warrants  ns  in  giving  onrxxnfidenoe  to  them  ioi 
I  will  contrast  one  sxn^e  clause  in  the  deed  with  that  whid 
heard  of  in  others — ^viz.,  danse  78— which  says  that  *the  diw 
be  entitled  to  set  apart  and  receive  for  their  remuneration  1 
every  year,  commencing  from  the  incorporation  of  the  eomp 
sum  of  money  as  riiall  be  voted  to  them  by  the  resolution  of 
holders  in  the  annual  jpeneral  meeting/  (Hear,  hear.)  Hot 
directors  acted  upon  tins  occasicm  ?  first  of  all,  they  have  gi 
accounts,  without  any  remuneration  being  specified,  or  an  infi 
pressed  of  tiieir  expecting  one,, and  I  believe  it  is  not  their  int< 
to  receive  it  through  the  legitimate  course,  namely,  the  vote  of 
holders  on  this  occasion,  upon  i^e  groxmd  that  they  have  no 
banking  business,  and  therefore  wiU  not  take  the  allowance.  (1 
I  could  mention  two  or  three  other  dauses  equally  credit 
concerned  connected  with  this  deed,  but  I  am  so  unaccustomed 
laudatory  terms  of  anybody  that  I  feel  rather  a  diflSculty  in  pi 
subject — (laughter  and  ch^rs) — ^though,  no  doubt,  praise  is  mc 
ecmdng  from  me— particularly  as  I  have  no  personal  knowledge 
the  dipsctors  except  the  chairman,  and  as  I  have  no  interest  ii 
pany  except  that  oi  a  sharehcdder.  I  am  perfectly  satisfied  wit 
been  done,  and  perfectly  hopeful  of  what  is  to  come.  (Cheers." 
second  tibe  resolution." 

The  resolution  was  then  put  and  carried  unanimously. 

The  Chairman,  after  acknowledging  the  re-election  on  his  on 
that  of  his  colleagues,  said  the  directors  had  not  the  slightest 
tention  to  receive  any  fees.  They  only  hoped  that  at  the  end  < 
twelve  m<mtiis  they  would  be  able  to  lay  a  satisfactOTy  staten 
the  shareholders,  and  then  they  might  receive  whatever  rewarci 
holders  approved.     (Hear,  hear.) 

The  Chairman  then  moved  the  election  of  Messrs.  Harmo 
and  Sons  as  auditors  of  the  company,  and  that  they  be  paid 
£50  for  their  services  in  auditing  the  accounts  of  the  bsmk  as 
the  31st  DeoMnber  last.  The  chairman  said  he  had  great  ] 
moving  this  resolution,  having  known  Mr.  Banner  for  a  great 
years,  in  fact,  ever  since  he  had  been  in  Liverpool. 

Mr.  G.  H.  Higham  seconded  the  resolution,  which  was  put  a 
unanimously. 

Mr.  Dou£^  proposed,  ^  That  the  cordial  thanks  of  l^e  meeti 
to  the  chairman  and  board  of  directors  for  the  judicious  manne 
they  have  managed  the  a£Eairs  of  the  bank.^ 

Mr.  Williams  seconded  Uie  resolution,  which  was  unanimousi 

The  Chairman,  in  replv,  said  that  the  directors  were  very  mi: 
to  the  sharehc^ders,  and  it  would  be  thw  ccmstant  endeavour 
the  confidence  which  was  reposed  in  them. 

The  Chairman — ^  I  have  now  the  y&rpP  l^asii^r  duty  ix>  propoi 
thanks  to  the  manager,  sub-manager,  and  o^r  omeers  of 
When  the  idea  of  forming  a  branch  in  Kgypt  arose  it  was  in 
Mr.  Etheridge,  the  manager,  that  it  would  be  very  desirable  1 
he  or  the  sub-managw  should  visit  Alexandria  to  make  himsdlf  1 
nuMler  of  the  nvture  of  the  business.   Mr.  Ei^ieridge  being 


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I 


Easteim  Exchange  Bank.  343 

amily,  it  was  rather  a  delicate  thing  to  ask  him  to  go 

and  without  tlie  slightest  hesitation,  placed  himself  in 

lirman  and  board  of  directors,  and  proceeded  at  an 

Lt  is  very  satisfactory  that  he  has  done  so,  for  although 

kge  of  a  gentleman  at  the  board  who  is  connected  with 

je's  visit  there  has  made  him  completely  master  of  the 

jr,  and  we  hope  on  his  return  that  we  shall  be  able  to 

•ably  our  business  there.  Therefore  I  have  great  plea-  >  '    t 

be  of  thanks  to  the  officers  of  the  company." 

nded  the  resolution,  which  was  carried  imanimonsly. 

EXTRAORDINABY  MEETING. 

That  ends  the  ordinary  meeting,  and  we  now  form 
Taordinary  general  meeting  for  the  purpose  of  altering 
eed." 

read  the  notice,  to  the  effect  that  the  meeting  was 
se  of  taking  into  consideration  the  provisions  in  the 
n,  as  to  the  mode  of  investing  the  funds  of  the  Com- 

for  making  up  the  statement  of  accounts,  and  the  I. 

iding  the  same,  and  to  make  such  alteration  in  the 
n  as  may  be  necessary  therein." 
The  reason,  gentlemen,  for  altering  the  first  clause  of 
iation  is  to  satisfy  the  requirements  of  the  Stock  Ex- 
Qd  not  be  able  to  purchase  or  deal  in  the  sliares  of  the 
ive  no  doubt  the  whole  of  the  shareholders  will  quite 
d  to  give  a  letter  to  the  eilect  that  the  board  would 
bareholdera  at  the  first  general  meeting,  othei*wise  we 
ained  a  day  of  settlement  on  the  Stock  Exchange. 
le  slightest  doubt  will  be  confirmed.     The  otlier  is  a 
me  of  making  up  our  accounts.     At  present  it  states 
be  meeting,  but  if  we  go  to  India,  Australia,  or  eUe- 
not  be  time  to  make  up  the  accounts ;  therefore  we 
1  time  of  other  exchange  banks,  viz.,  four  montlis.    I 
^er- 
ection of  the  98th  regulation  of  the  articles  of  associa-  I 
same  is  hereby  repealed,  and  in  lieu  thereof  the  follow-  I 
uted,  that  is  to  say  : — Tliey  may  invest  such  parts  of 
pany  as  they  shall  think  fit  in  or  upon  any  government 
ccheqner  bills,  or  upon  such  other  investments  or  »e-  ! 
.tish,  Irish,  foreign,  or  colonial  (except  the  shares  or 
y),  as  they  may  think  expedient,  and  may  from  time 

purities  and  convert  the  same  as  occasion  shall  require  •* 

edient.' "  .  , 

jcond  that  resolution."  ^ 

s  unanimously  carried.  , 

t  moved,  and  Mr.  Dirom  seconded,  the  following  reso-  ^ 


*/ 


I 


\ 


egnlatioa  of  the  articles  of  association  shall  be  and  the  '  - 

ed,and  in  lieu  thereof  t)ie  following  shall  be  substituted,  i' 

every  ordinary  meeting  the  directors  shall  lay  before  *  I 

lent  of  accounts  of  the  company  made  up  to  a  date  not  ^'  j 

bhs  before  the  meeting  from  the  time  when  the  last  •'  \ 

waa  made  ;  or  in  case  of  the  first  statement,  from  the  .  \ 


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344 


London  and  County  Banking  Cwnpany. 


ct^mmencement  of  the  company ;  and  every  statement  shall  \^q  acoompa 
by  a  report  of  the  directors  as  to  the  state  and  condition  of  the  oorap 
and  as  to  the  amount  which  they  recommend  to  be  paid  out  of  the  pi 
by  way  of  dividend  or  bonus  to  the  shareholders,  and  the  amount  {i 
wliich  they  recommend  to  be  retained  for  the  formation  of  a  reaervefo 

It  was  also  resolved ; — 

"  That  a  general  meeting  of  the  company  be  held  on  Thiu-sday,  tbe 
iliy  of  February,  1865.  at  12  o'clock  noon,  for  the  purpose  t»f  coufin 
tlit;  above  resolutions.'^ 

On  the  motion  of  Mr.  Bigham,  seconded  by  Mr.  Prowse,  a  voteof  tk 
was  passed  to  the  chairman,  and  the  proceedings  closed. 


LONDON  AND  COUNTY  BANKING  COMPANY. 

The  annualgeneral  meeting  of  the  proprietors  of  this  cctmpauy  woa 
oil  the  2nd  February,  at  the  London  Tavern ;  Mr.  W.  Niciil,  M.F.,  ii 
chair. 

The  notice  convening  tlie  meeting  having  been  read,  Mr,  M*Ke 
tlie  general  manager,  read  the  following  report  and  statement  oi 
cjuuts : — 

*'The  directors  have  the  pleasure  to  submit  to  the  sLareholdeii 
b;khmce-sheet  of  the  bank  for  the  half-year  ending  Slet  December 
They  have  satisfaction  in  reporting  that,  after  payment  of  all  chs 
iiitf^rest  to   customers,    making  provision  for  bad  and  doubtful  i 
ami  presenting   a  gratuity  to  each  officer,  the  net  profits   amowi 
£]  26,431. 17«.  4d.,  which,  with  £21,726. 16«.  2d.  brought  forward  froti 
account,  produces  the  siun  of  £148,158. 13^.  6d.  for  api^ropriation. 
directors  recommend  the  payment  of  the  usual  dividend  of  6  per  ceii 
the  half-year,  together  with  a  bonus  of  12  per  cent.,  making  18  per 
fi>F  the  six  months;   these  payments 'will  absorb  £129,52tJ.  1^.  Sci. 
leave  £18,629. 12«.  3d.  to  be  carried  forward  to  profit  and  loss  new  ace 
The  directors  regret  to  annoimce  the  decease  of  their  late  esteemei 
league,  James  Laming,  Eso.,  and  report  that  they  have  elected  Nath 
Alexander,  Esq.,  of  Great  Wind^ester  Street,  East  India  merchant,  \ 
the  vacancy  thus  created.    The  directors  retiring  by  rotation  are 
"VMlliam  Burmester,  Esq.,  John  Flendnff,  Esq.,  and  William  Chan 
Jon  OS,  Esq.,  who  being  eligible,  oflfer  uiemselves  for  ry-eloctjoH. 
dividend  and  bonus  (together  £3.  12^.  per  share)  free  of  income  tax 
bo  payable  at  the  head  office,  or  at  any  of  the  branches,  on  or  after  Mo] 
the  13th  February." 

BcUaneC'SJied,  December  31«<,  1864. 

Dr. 
Capital  £750,000 ;  part  of  final  instalment  due  15th  April  next 

not  yet  paid  £9,825 

EaBerre  fond  £250,000;  part  of  final  instalment  due   15tli 

April  next  not  yet  paid  £9,325       

Amount    due  by  tne    bank    for    customers'  balances,  &c. 

£9,779,754;  liabiUties  on  acceptances  £2,431,599. 15«.  6  d.  12,211,353 
Fiiofit    and     loss     balance    brought    from     last    account 

£21,726.   16«.  2d,;  gross  profit  for  the  half-vear,  after 

making     provision     for     bad     and     doubtml     debts 

£352,054, 12j.  2(i.  ...  373  J8l 

£l3,50ts4S5 


£7W,675 
240,675 


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atul  Counfi/  Banking  Company. 


345 


office  and  branches  £1,455,172.  4j. 
md  at  notice  £999,480.  16*.  6(i.        ...  £2,454,659    0    6 
vernment     and     guaranteed    stocks 
?.;      other     stocks     and     securities 


961.407    2  10 
9,833,047    4    8 


131,178  18  11 
95,051  16  11 

78,343  11     5 

11,222     8     6 

1,575    0     0 


...         ..•         •••         •••         ••-         -" 

idvances  to  customers  in  town  and 

imbard  street,  and  Nicholas  lane,  free- 
property  at  the  branches,  with  fixtures 

Brs  • 

penses  at  head  office  and  branches,  in- 
on  profits  and  salaries., 

gust,  1864         


PROFTT  AND  LOSS  ACCOUKT. 


ers 


igust,  1864        

,  carried  to  new  account 
for  the  half-year 


rd  from  last  account ...      £21,726  16  2 

;  half-year,  after  making  provision  for  ^^oi  io  o 

cbts         do2,uo^  li  £ 

£373,781     8  4 


£13,560,485    3 

9 

.       £95,051  16 

11 

78,343  11 

5 

11,222     8 

6 

1,575     0 

0 

39,429  18 

0 

43,176     7 

1 

86,352  14 

2 

18,629  12 

3 

£373,781     8 

4 

loving  the  adoption  of  the  report,  said  that  it  had  ofteu 
o  adikess  the  proprietors  of  the  bank  at  their  meet- 
er  done  so  with  such  unqualified  satisfaction  as  he 
casion.  In  the  earlier  years  of  his  connection  with 
7  difficulties  to  struggle  with,  arising  entirely  from 
B  unhappy  man  who  had  long  ceased  to  exist  Years 
i  in  a  suicidal  grave  they  had  suffered  from  the  effects 
d  were  deprived  of  those  fair  gains  which  they  had  a 
eed  to  such  an  extent  did  his  misconduct  affect  the 
ns  thought  that  it  would  never  be  able  to  recover  itself ; 
had  confidence  in  the  bank  and  in  the  duectors,  aided 
ul  officers  in  the  conduct  of  the  bu8ines8--(hear,  hear) 
'6  enabled  them  to  face  the  storm  which  existed  for 
It^^,  when  he  addressed  them,  he  had  to  a^oun^ 
iBion  of  a  court  of  justice  against  tl^«  .^ank  T^hic^^^ 
^py  to  say,  wa3  reversed  on  an  appeal  to  a  higher 
Ume  to  the  present  he  was  glad  to  say  they  had  not 


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346 


London  and  CowUy  Btmking  Co^njiany. 


had  a  doud  of  any  kind  to  impede  the  sunBhino  of  tlieir  prospe 
(Cbt^ers.)  During  the  laat  year  the  oommerce  of  the  cotmtry  had 
severely  tried,  and  many  hranohes  of  trade  had  snetained  eDormoiis 
Mauy  persons  who  at  the  oommeBoement  of  the  laBt  jear  believed  tl 
selTea  possessed  of  ample  fortnnes  had  before  its  oi>n elusion  been  ob] 
ia  yield  to  the  storm,  and  several  banks  had  been  fteverely  tried.  He 
happy  to  say  that  this  bank  had  escaped  with  ^e  mo^t  inking  leoa, 
the  lK)ard  were  enabled  to  come  before  the  proprietora  tkat  day  tMt 
them  the  largest  dividend  that  any  bank  had  made,  ami  which  left 
institution  in  as  prosperous  a  condition  as  any  bank  i ti  E  ngl and.  (Che 
He  would  now  turn  to  the  accounts.  It  would  bo  recollected  tlistt 
year  it  was  agreed  to  inerease  the  oiq>ital  of  the  bank  imm  £600,(K 
£750,060.  That  had  been  done,  sndnow,  with  a  reserve  iif  £250,000, 
capital  had  been  raised  to  £1,000,000.  That  increa^^e  <  ^i  capital,  heaas 
tht^  meeting,  had  been  a  very  great  comfort  to  the  directora  during 
paftt  year, because  they  had  felt  confidence  in  the  capital  i*f  the  bank, 
that  confidence  had  enabled  them  to  take  into  con«i<li"r:ition  overtxm 
busiuess  which  perhaps  they  would  not  have  been  nl  ^>  to  eiitertaiu 
for  that  increased  capital.  It  had  been  the  custom  id  sumo  banks  U 
vest  tlie  reserve  fund  in  Consols  or  other  govennn  tnt  securities  w 
yielded  only  3J  per  cent.,  but  if  their  reserve  fund  ha  1  during  tlie 
nine  years  been  so  invested  the  difference  in  the  iut'.  rest  wonld  have  1 
so  material  as  to  have  considerably  affected  their  profitiij  and  the  dire* 
felt  that  having  a  capital  in  cash  on  hand  and  at  call  of  £2,500,iX 
reserve  fund  of  £350,000  in  Consols  would  make  very  little  difief 
to  the  safety  of  the  undertaking.  The  next  item  in  the  acooont  was 
which  he  was  very  glad  to  refer  to,  namely,  customers'  balauoos,  £9,779, 
alifnnng  an  increase  over  last  year's  account  of  above  a  million  and  u 
sterling.  (Cheers.)  That  was  extremely  satisfactory,  aa  showing 
oonfidence  reposed  by  the  public  in  the  bank,  and  he  thought  that  he 
ju5^tified  in  expressing  his  opinion  that  that  was  not  the  largest  sum  1 
would  have  placed  with  IJiem  in  this  way.  They  had  sepamted 
amotmt  due  for  customers'  balances  from  the  item  of  liabilities  on  aec 
ancei,  and  had  done  so  for  some  years.  Occasionally  they  saw  commen 
newHpapers  with  reference  to  the  omission  of  some  other  establishmcn 
adopt  this  83rBtem,  and  some  dissatisfaction  had  been  expressed  on  the  sub 
It  M^tta  the  opinion  of  the  board  that  customers'  balances,  which  might  idi 
he  trvkon  as  the  gauge  of  public  confidence,  should  alwny.^  he  separated  f 
the  liabilities  on  acceptances.  (Hear,  hear.)  He  thought  that  the  amc 
of  gross  profit,  whidi,  including  £21,726  brought  over  from  tiia 
account,  amounted  to  £362,000,  would  be  most  satisfactoiy,  csped 
wheti  liiey  considered  that  the  most  ample  provision  had  been  made  lot 
bad  and  doubtful  debts.  The  total  gross  profits  of  this  bank  daily  dn 
the  past  six  months  had  been  sometmng  lu:e  £2,000.  (Ch^eFs.)  The  i 
of  diicoonted  bills  and  advances  to  custumet'S  amounted  to  the  laxge  i 
of  £i),833,000,  and  perhaps  the  meeting^  would  like  to  know  what  w«a 
Ufflial  i^actice  pursued  by  the  bank  in  investing  the  cnpitaL  Neoan 
the  larger  portion  was  employed  in  discounting  bills  and  lending  lo 
tamers  botti  in  town  and  country.  In  tiie  ooontry  the  Applications  n 
were  generally  for  moderate  sums,  aatd  if  the  manager  thought 
of  them  th^  were  remitted  to  London,  and  kwing  been  first  scrutin 
by  tbw  skufnl  and  able  general  manager  and  i^e  chief  in«$pector,  t 
were  next  sent  to  the  oonmiittee  of  direotors  and  mi«lerweiit  a  sec 
scrutiny.  The  only  exception  to  this  was  that  the  general  manager  had 


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and  County  Banking  Com'pany,  347  '  ; 

oneyoa  government  stocks,  application  for  which  \  '    ! 

mediate  attention.     With  respect  to  the  item  for  ■  '    ' 

premises  that  was  an  item  which  natnrally  increased  \  \ 

eir  business,  and  it  might  be  that  they  would  have  j 

sum  in  times  to  come  for  this  purpose.    All  he  ]  ; 

t  was,  that  he  should  be  perfectly  satisfied  to  be  one  .'  ! 

11  their  property  off  their  hands  at  the  cost  at  which  } 

The  item  for  salaries  and  expenses  amounted  to  ;  »    ' 

ad  to  say  that  never  was  money  better  earned  than  i  I    i 

L  salaries  to  their  officers.      (Cheers.)     They  had  [ 

isess  a  staff  of  officers  certainly  equal,  and  he  be-  i  '    I 

rith  truth  superior,  to  that  of  any  other  banking  ]  .    J 

lappy  to  inform  the  shareholders  that  the  increase  \ 

>fficer8  had  been  received  with  great  thankfulness  ! 

,  if  possible,  redoubled  the  zeal  and  assiduity  of  the  }  ^.    ' 

rable  mode  of  distribution  adopted  by  their  able  \  *    ' 

ose  hands  this  matter  was  placed,  an  increase  of  10 
ie  on  the  salaries  of  the  whole  staff,  and,  in  addi-  i 

5n  a  certain  number  of  years  and  upwards  in  the  I 

y,  received  one-fourth  per  cent,  for  every  year  of  » 

ihoee  who  had  been  20  years  in  the  service  re- 
crease,  and   some  two  or  three  who  had  been  as  •  "    , 
5  in  the  service  received  an  increase  of  about  17                         t 
tVith  respect  to  the  item  £1,576,  voted  to  tliree  of                         . 
ust,  all   he   could   say  was   that  it  was    received  '    ' 
s,  and  as  a  tribute  of   confidence  on  the  part  of                         • 
eers.)     Turning   to  the  profit    and   loss    account,                          , 
see    that    the     sum    of   £39,429   had    been   set 
Is  not  yet  due,  and  that  sum    had   been  carried 
The  interest   was   taken  at    a   high   rate.    The                         | 
.are  a  dividend  at  6  per  cent,  for  the  half-year,                          • 
,  a  bonus  at  the  rate  of  12  per  cent,  for  the  same                          ' 
le  time  they  carried  forward  a  balance  of  £18,G29.                         ;  » 
t  meeting  the  number  of  accounts  had  increased  by 
w  bankers  to  41,767  customers,  which  resulted  in  a 
iisiness  both  in  town  and  country.     (Hear,  hear.)                         ; 
ents  had  entered  the  field  in  competition  with  them 
t>ut  the  increasing  accounts  showed  that  the  com- 
k1  them.     New  branches  had  been  established  at 
S^ewington,  Hackney,  Caledonian  Road,  and  Slough, 
igton  branches  being  raised  to  that  position  from 
i  several  new  sub-branches  had  been  established  in 
B  request  of  persous  in  the  various  districts.    Alto- 
lent  was  in  the  most  flourislung  condition,  and,  to 
le,  might  its  shadow  never  grow  less.     (Cheers.) 
g  the  adoption  of  the  report  and  accounts, 
deputy-  chairman,  seconded  the  motion. 

ed  whether  it  was  possible  for  the  proprietors  to  , 

0  them  some  days  before  the  meeting.     He  also 
r  tJie  chairman  could  state  that  the  concern  was  in  jj 

snt  condition,  and  that  the  report  was  a  real  bona  ^ 

IS  a  shareholder  he  had  no  wish  to  be  placed  in  the  .  ' 

iank  ahaxeholders.  't 


Digitized  by  CjOOQ IC 


348 


Sank  'of  Egypt 


The  Chairmaii  said  that  owing  to  the  number  of  rt:  turns  to  be  n 
from  the  various  branches,  and  the  time  it  took  to  drjiw  up  the  statei 
(d  accoimts,  it  was  impossible  to  issue  the  report  befuro  the  meeting 
held.  To  say  that  the  report  was  not  an  honest  one  waiiid  bo  to  say 
the  directors,  managers,  and  clerks  were  all  rogues.  H&  could  only 
that  IUq  TTiost  constant  care  and  visilanoe  were  exercistxl  iu  checking 
various  accounts  and  scrutinising  the  business  offered  to  th&  batsk.  'J 
had  twis  Bets  of  inspectors  who  were  constantly  travelling  f mm  onebri 
to  another,  inspecting  and  scrutinising  the  accounts ;  iu  additiou  to  w 
Mr.  Junes,  the  deputy-chairman,  himself  went  weekly  through  the  ret 
sent  from  the  various  branches  to  the  head-office. 

A  Shareholder,  in  reference  to  the  vacancy  in  the  board  caused  by 
decease  of  Mr.  J.  Lanung,  and  its  being  fiUed  up  by  the  ap]^H>iutmei 
Mr.  Ab^xnnder  by  the  board,  expressed  an  opinion  tlmt  the  sharebol 
ought  t )  lie  consulted  with  reference  to  the  filling  up  of  such  vacanei« 

Mr.  ISI^Ewan  called  the  attention  of  the  shareholder  bj  the  fact  that 
deed  of  settlement  absolutely  directed  the  board  to  iiH  up  any  ; 
vaciiucy. 

The  report  was  then  put  and  adopted  unanimously,  aud  a  divider 
accordance  with  its  terms  was  declared. 

The  retiring  directors  and  auditors  having  been  re-ckcted,  cordial  i 
of  thanks  were  given  to  the  chairman  and  directors,  ai^l  to  the  mana 
aud  staff,  and  the  proceedings  terminated. 


BANK  OF  EGYPT. 


The  nbith  annual  general  meeting  of  the  proprietors  of  this  bank  was 
at  the  London  Tavern  on  the  3rd  February ;  Mr.  W.  Tite,  M  J*.,  ii 
chair. 

The  Secretary  having  read  the  notice  and  the  minutes  of  the  last  n 
iug,  read  the  following  report : — 

*^  The  directors  of  the  Bank  of  Egypt  have  the  pleasure,  at  t^s  i 
ninth  aimoal  general  meeting,  to  submit  to  the  shareholderB  the  aim 
statemeut  of  accounts  for  the  half-year  which  ended  ou  the  31st  of  Be 
Ijer,  18t>4.  The  net  profits,  after  providing  for  bad  aud  doubtful  di 
amount  to  £20,028. 13a,  9d.  This,  added  to  i£6,272.  12s.  8fl,  the  hal 
brought  forward  from  the  previous  half-year,  makes  a  total  of  £26, 
Ca.  M.  available  for  appropriation.  The  chrectors  recommend  that  £C 
be  carried  to  the  reserve  fund,  which  will  then  amount  to  £20fiOO ;  tl 
lUvidend  be  declared,  as  on  the  last  occasion,  at  tho  rate  of  10  per  < 
per  anuum  for  the  half-year  (£12,500)  free  of  income  tax ;  aod  tb 
bonus  of  6s,  per  share  (£2,500)  be  added  tiiereto,  leaving  a  balau< 
£4,81  d.  6«.  6d.  to  be  carried  forward  to  the  next  account.  In  cx^nfon 
with  the  provisions  of  the  deed  of  settlement,  William  Titc,  Esq.,  Bl 
aud  Patrick  F.  Robertson,  Esq.,  go  out  of  office,  and  being  eligible 
theuiReives  for  re-election.  The  auditors  also  retirt^  from  office  and 
tEgible  for  re-election." 

The  Cliairman,  in  moving  the  adoption  of  the  report,  said  that  he 
very  law  observations  with  which  to  trouble  the  meeting.  The  affai 
the  bank  were  in  a  very  flourishing  condition,  and  thtjy  were  enable 
declare  a  Idgher  dividend  than  they  had  hitherto  done.  The  gross  pr 
of  the  li  all-year  amounted  to  £26,808,  which  was  a  much  larger  sum  i 
was  earned  in  the  corresponding  period  of  last  year.     The  oxpeiiMS 


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349 


jd,  being  £6,780,  which  left  a  net  profit  of  £20,028. 
rely  satisfied  with  the  management  in  Egyi^t,  and 

commercial  affairs  in  that  country,  they  considered 
;hat  country  had  been  managed  most  skilfully  and 
magement  in  Egypt  consisted  of  three  persons,  one 
of  Alexandria,  and  the  other  two  gentlemen  were 
nost  satisfactory  to  be  able  to  report  that  there  had 
itever  within  the  last  six  months.  The  rate  of  ex- 
matter  of  consideration  with  them,  and  had  been 
r  as  they  were  concerned.  Their  capital  had  always 
rate  of  exchange  being  95 i,  which  was  pretty  much 
bhe  difference  being  in  favour  of  the  company.  They 
re  fund  the  sum  of  £6,282,  and  he  was  happy  to  say 
w  amounted  to  a  substantial  sum,  viz.,  £20,000. 
uld   learn  with  satisfaction  that,  it  being  the  in- 

Thurbum,  one  of  their  directors,  to  proceed  to 
lis  own  private  affairs,  he  had  kindly  undertaken  to 
of  the  bank  in  Egypt,  with  a  view  to  ascertain  how 
I  extended  and  its  prosperity  increased.  The  board 
owered  Mr.  Thurburn,  in  conjunction  with  tlie- 
act  for  the  company  in  any  way  which  he  considered 
jfit  of  the  institution.  The  board  were  convinced 
erests  of  the  bank  in  the  hands  of  Mr.  Thurburn, 
knowledge  of  Egyptian  commerce,  they  were  placing 
a  wise  and  prudent  man,  and  they  anticipated  the 
he  visit  of  that  gentleman  to  Egypt.  He  concluded 
a  of  the  report,  and  the  declaration  of  a  dividend  of 
IS  of  5s.  per  share,  payable  on  the  10th  inst. 
Q,  Mr.  P.  F.  Robertson,  seconded  the  resolution, 
fl  by  Mr.  Wright, 

that,  although  the  bank  received  a  fair  share  of 
he  competition  to  which  they  were  subjected,  that 
.  they  could  calculate  much  upon.  They,  however, 
lain.  The  directors  were  not  of  opinion  that  it  was 
)  reserve  in  Consols,  on  account  of  the  large  loss  of 
esult. 

adopted. 

r.  Mangles,  seconded  by  Mr.  Bramley  Moore,  M.P., 
ring  directors  were  re-elected. 

of  Mr.  Taunton,  seconded  by  Mr.  Tidmarsh,  Mr. 
Morgan  were  re-elected  as  auditors. 
I  whether,  considering  the  wonderful  expansion  of 
ess,  the  clirectors  had  contemplated  increasing  the 
io  expressed  a  hope  that  when  Mr.  Thurburn  wont 
e  into  consideration  the  advisability  of  diffusing  the 
in  that  country. 

that  the  subject  of  the  increase  of  capital  was  under 
le  directors,  they  being  quite  in  a  position  to  obtain 
as  desirable.  To  that  point  Mr.  Thurburn  wovild 
tion,  and  the  board  would  to  a  great  extent  be  guided 
might  make  to  them.  He  (the  chairman)  was  of 
had  arrived  when  the  capital  might  be  judiciously 
ect  to  the  issue  of  notes  in  Egypt,  the  directors  had 
be  Egyptian  management  the  advisability  of  issuing 


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350 


Unioji  Bank  of  Australia. 


ihesxif  but  tmforiimately  the  gentlemaa  who  took  a  principal  ] 
management  -when  the  baok  was  first  established,  and  wiw 
institution  in  audi  difficulty^  took  a  yery  different  Tiew,  and  al 
Botes  were  actually  printed  and  sent  oreTy  the  board  could  iK>t  < 
issue.  He  had  yery  little  doubt  that  if  the  notes  had  been  ias 
time  a  yery  large  number  might  haye  been  sent  out ;  but  t] 
DOW  gone  by,  and  the  ground  l^ing  occupied  by  otiier  parties  tl 
chance  of  getting  them  issued. 

Mr.  Thurbum  oonfinned  the  chairman's  yiews  on  tiiis  point, 
tliat  the  trade  and  commerce  of  Egypt  were  increasing  so  rapidl; 
oould  be  no  doubt  that  the  prosperity  which  had  attended  this  1 
uot  only  be  continued,  but  greatly  increased.     (Cheevs.) 

A  cordial  yote  of  thanks  to  the  chairman  and  directors  coi 
proceeding^. 


UNION  BANK  OF  AUSTRALIA. 


A  SPECIAL  general  meeting  of  proprietors  was  held  at  ihd  office  < 
in  Old  Broad  Street,  on  the  3rd  February,  to  consider  a  prop< 
creasing  the  remuneration  of  the  board  of  directors,  in  accords 
requisition  signed  by  the  requisite  number  of  shareholders ;  '. 
Carter  presided. 

The  Chairman  remarked  that  the  question  to  be  considered 
tirely  a  proprietors'  question,  that  no  explanation  from  the  di 
xxecessary;   therefore  he  would  call  upon  Mr.  Hamilton  to 
motion  of  which  he  had  giyen  notice. 

Mr.  Hamilton  moved  that  the  annual  remuneration  of  th< 
now  £3,500,  be  increased  from  the  1st  January  last  to  £3,600 
to  the  twelve  ordinary  directors,  to  be  appropriated  by  them  ac 
think  fit,  and  that  £1,200  be  allowed  to  Mr.  Oumming,  so  long 
the  poail^on  of  chairman  of  committees.  He  proposed  this  ra 
the  interest  of  the  shareholders  themselves,  to  whom  it  was  of 
importance  tluut  the  same  high  standard  of  qualification  which  h 
chiuacterised  the  direction  should  be  preserved,  and  this  would 
Hured  by  offering  an  adequate  inducement  to  geiddemenof  recogni 
puiition,  and  experience,  to  undertake  the  rei^nsibility  att 
employment  of  so  large  a  capital  in  a  field  so  vast,  so  full  of 
iu\d  in  the  face  of  so  much  competition;  He  pointed  to  the  h 
remuneration  paid  in  some  of  the  principal  Ixmdon  joini-st 
whose  capital  and  average  profits  did  not  exceed  their  own,  aa  a 
affirming  the  proposal.  The  present  allowance  to  the  ordinar 
was  fixed  in  1852,  when  they  had  only  eleven  branches,  and  i 
£800,000.  Now  they  had  branches  in  all  parts  ol  Australia 
Zealand,  and  a  capital  of  a  million  and  a  quarter.  The  incrc 
number  of  branches  and  of  the  general  business  of  the  bank 
sarily  entailad  upon  the  board  a  great  addition  to  their  duti 
sponsibilities. 

Mr.  Botley  seconded  the  motion. 

Mr.  J.  Tetts  did  not  think  it  expedient  thai  there  should  be  m 
in  the  directors'  remuneration;   and  in  regard  to  the  rate  oi 
tion  given  to  directors  in  some  of  the  London  banks,  remarke 
duties  and  responsibilities  of  management  in  Lcmdon  banks  i 
greater  than  those  ol  a  bank  whose  business  was  caizied  on  a 


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Bank  of  Wales, 


351 


specially  appomted  for  tLe  purpose,  aaJ  who  were, 

ble  pajties.     He  further  reminded  the  meeting  that 

argely  interested  as  shareholders,  and  in  taking  care 

e  company  they  were  looking  after  their  own  interests 

rhe  proposed  increase  would  bring  up  the  directors' 

per  cent,  on  the  n^at  profits  of  the  concern. 

^lieved  the  duties  and  responsibilities  of  directors  in 

3  infinitely  less  than  those  of  tlie  directors  of  a  bank 

ther  end  of  the  world.    As  to  Mr.  Gumming,  he  was 

I  performance  of  his  duties,  and  had  relinquished  all 

uts  in  order  that  he  might  devote  his  entire  attention 

aging  director  of  this  bank. 

light  it  out  of  place  that  they  should  discuss  this  ques- 

e  of  the  directors  themselyes,  and  suggested  that  it 

>  half-a-dozen  shareholders  on  each  side  to  consider  the 

J  and  the  next  ordinary  meeting.     The  proposed  in- 

ear  would  absorb  the  entire  amount  carried  over  at  the 

Ling.     If  they  resolved  upon  making  this  addition  to 

irectors,  how  could  they  refuse  a  similar  demand  from 

rectors  of  the  colonial  branches  1 

to  know  whether  proxies  had  been  issued  from  the 

hey  were  to  be  used  in  favour  of  this  motion  ? 

(lied  that  of  course  they  would  be  used — they  had  been 

Dse. 

Ided  that  it  was  necessary  to  issue  the  proxies  from 

ises  of  the  shareholders  not  being  known  to  the  requi- 

igh  as  strenuous  an  advocate  for  economy  as  any  one, 
to  pay  its  directors  adequately,  and  considering  the 
leir  duties  he  did  not  consider  the  proposed  remunera- 
expenses  of  management  he  admitted  were  very  heavy, 

serving  that  there  were  not  forty  shareholders  present, 
lent  of  the  discussion  to  the  next  general  meeting. 

was  put  and  lost  by  17  votes  against  11,  and  the 

carried  by  18  votes  to  10. 
hen  terminated. 


>  \ 


baitk:  of  wales. 


J  general  meeting  of  sharoholdcrs  was  held  on  the  4th 
London  Tavern ;  John  N.  Daniell,  Esq.,  in  the  chair, 
he  directors*  report :  — 

ave  the  pleasure  of  submitting  the  following  report 
or  the  half-year  ending  the  31st  December  last.  The 
3et  shows  that  the  gross  profit  for  the  last  six  months, 
Sd.  brought  forward  from  last  account,  amounts  to 
ad  that,  after  deducting  current  expenses,  directors' 
aditors'  fees,  there  remains  a  balance  of  £1,940.  Zs.  TcL 
directors  recommend  that  £1,808. 15s.  be  appropriated 
3  rate  of  6  per  cent.  i)er  annum  for  the  half-year.  The 
dready  been  informed  by  circular  that  arrangements 
I  for  an  amalgamation  of  this  bank  with  the  Provincial 
n,  npon  equal  terms.    Your  directors  were  induced  to 


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352  Bank  of  Wales. 

take  this  Rtep  in  oonsequenoe  of  the  rapid  development  of  tlte  1 
the  Welsh  branches  requiring  more  capital  than  was  at  their  die 
the  large  available  resources  of  the  Provincial  Banking  Coqx>i 
th.it  want  without  necessitatiog  a  further  call  upon  thc^  shareht 
is  Eiatiirfactory  to  state,  after  some  experience  of  the  working  oi 
biTuxl  banks,  that  this  fusion  of  interest  will  considerably  add  t«^ 
success  of  the  amalgamated  bank,  and  enable  it  at  all  times  to  r 
requirement  of  the  branches.  Tour  directors  cannot  make  thb 
to  the  shareholders  without  tendering  their  thanks  for  t}ie  confide 
in  them,  and  they  have  no  doubt  that  their  property^beiug  i 
upon  a  substantial  basis — ^will  materially  increase  in  value. 

"  Balance  sheet  to  December  31,  1864.  Dr. :  To  capital, 
t<>  reserve,  £500;  to  amount  due  on  current,  deposit,  au<l  othei 
£irA^.  16*.;  to  gross  profit:  From  last  account,  £203. 
forfeited  shares,  £2,M)0;  profit  after  making  provi^iiim  for 
doubtful  debte,  £7,670.  13«.  7d. ;  together,  £10,374  10,-f.  3 
£247,632.  6«.  Sd.  Cr. :  By  preliminary  expenses,  £6,27H.  12 
cash  on  hand  and  at  bankers',  £38,994.  Ss,  3a. ;  by  ft-et  iiohl  an< 
premises,  furniture,  expenses  of  establishing  and  purchaamg  bn: 
£19,261. 16a.  9d. ;  by  bills  discounted,  loans,  <kc.,  £174,563.  2 
current  expenses,  including  arrears  of  directors'  fees,  <fec.,  £ 
hi. ;  by  interest  paid,  £2,027.  Us.  7d. :  £247,632.  6«.  ^l 

"  Profit  and  loss  account. — Dr. :  To  current  expensta  a.*)  aboi 
12.<.  Id,;  to  interest  paid,  £2,027. 14«.  7d. ;  to  dividenti  at  5  pei 
annura,  £1,808.  165. ;  to  balance  carried  forward,  £131.  8^,  ■; 
£10^74. 10«.  3d.  Cr. :  By  gross  profit,  £10,374. 10s.  3J. ;  tota 
10.S.  3d." 

The  Chairman,  in  moving  the  adoption  of  the  report,  remark 
mot  the  shareholders,  with  mingled  feelings  of  pleasure  and 
the  lost  time.  It  was  a  matter  of  pleasure  from  ihv  einnmii 
which  the  property  of  the  bank  was  placed,  and  he  regretted  thi 
tion  of  the  short  acquaintance  he  had  had  with  the  fdiaruh^iMera 
caAcs  of  amalgamation  of  this  kind,  when  once  it  was  on  foot,  i 
action  wss  essential  and  necessary.  Anything  that  admittixl  o! 
caTil,  beyond  a  thorough  investigation  of  all  accounts,  rendere 
cult  to  carry  out  such  a  thing,  although  in  the  ordinary  tuo^le  oj 
iug  business  it  might  be  a  matter  easuy  carried  out.  (In  tlia  ot 
the  board  had  a  feeling  that  it  would  be  well  for  all  tlieir  sake 
the  matter  a  secret  until  the  arrangements  were  perfected.  Thej 
going  on  with  the  Bank  of  Wales  profitably  and  well,  but  theri 
tiling  which  met  them  in  the  face  in  whatever  direction  they 
namely,  the  want  of  capital.  They  had  a  vast  field  opiu  to  the 
far  iis  their  capital  went  they  made  it  productive ;  but  it  was  not 
for  the  business  of  so  large  a  province.  This  was  not  the  Om 
made  to  join  other  banks,  but  it  was  the  first  attempt  eniaim 
another  bank,  and  not  from  the  Bank  of  Wales,  and  in  which  tl 
were  willing  to  take  them  on  equal  terms,  lliey  covild  adm 
feriority,  and  the  shares  were  equal.  They  had  tiie  happiness 
joined  to  a  company  with  a  large  independent  capital,  hut  it  h 
DUHineas  to  expend  it  upon,  whUst  they  had  a  large  business  wK 
one.  They  hsd  means  of  inspecting  tiie  accounts,  and  uothing 
more  promising  for  the  future  interests  of  the  Bank  of  Wid< 
carrier!  with  them  their  manager,  and  he  fdt  certain  that  they  v 
bo  called  upon  for  further  subscriptions.  (Hear^hear.)  He  1 
move  the  aaoption  of  the  report. 


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^dit  and  Finance  Company  of  London.         353 

nded  the  motion,  and  admitted  the  discretion  of  the 
mi  the  negociations  with  secresy,  and  without  calling 
ler,  although  at  first  he  felt  some  jealousy  on  thia 
importance  of  having  professional  auditors,  inde- 
ors  and  shareholders. 

ne  of  the  audit*  »r8,  spoke  in  favour  of  appointing 
Iders  as  auditors.  He  waa  satisfied  that  the  direc- 
v'ise  discretion  in  carrying  out  the  amalgamation, 
■al  rule  directors  ought  not  to  have  the  power  of 
ber  institutions  without  consulting  the  shareholders, 
ooking  into  details,  whether  the  terms  of  the  amal- 
wrere  quite  equal ;  on  the  contrary,  he  believed  he 
•ovincial  Company  obtained  an  advantage, 
ctor)  endoi*sed  the  chairman's  statemeut  as  to  the 
igamation,  which  he  said  waa  based  upon  perfectly 

0  both.  He  had  no  doubt  that  at  the  first  meeting 
►mpany  a  very  favourable  balance-sheet  would  be 
would  now  number  800  shareholders  and  a  capital 
itisfactory  to  know  that  according  to  the  arrange- 
made  upon  the  sliareholders  of  the  Bank  of  Wales 
adled  up  from  the  shareholders  of  the  Provincial 
saw,  there  was  no  prospect  of  any  call  being  made, 
,  on  the  Provincial  shares. 

Mr.  Schleisenger  as  to  the  improved  position  in 
is  bank  must  henceforwards  stand  in  the  market, 

1  unanimously. 

e  rate  of  6  per  cent,  per  annum,  payable  on  and 

then  declared. 

the  auditors  followed,  and  £25  waa  awarded  to  them 

ledging  the  services  of  the  manager  in  London,  the 
d  the  other  officers,  waa  proposed  by  the  chairman 
•  a  brief  acknowledgment  from  the  manager,  the 
le  chairman  and  board  of  directors  concluded  the 


T  AND  FINANCE  COMPANY  OF  LONDON, 
LIMITED. 

general  meeting  of  the  proprietor  of  this  company 
'ebniary,  at  the  London  Tavern ;  Mr.  S.  Laing  in 

J.  R.  Butler)  having  read  the  advertisement  con- 
read   the   following  report   and  statemeut  of   ac- 

accounts  of  the  Company's  operations  for  the  first 
ifttence,  viz.,  1864,  the  Directors  have  much  pleasure 
shareholders  on  the  results.  The  paid-up  capital 
00  during  the  first  six  months,  and  £1,000,000 
Qonths,  or  on  the  average  £750,000  during  the  year, 
its  of  the  year  (less  rebate)  amount  to  £287,906. 

28 


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354        General  Credit  and  Finance  Compmitj  of  Londi 

But  of  this,  £125,000  residts  from  the  premium  of  £1  p€ 
the  creation  of  new  capital,  and  £31,250  from  5j».  per  shart 
lieu  of  interest  on  the  new  shares,  so  as  to  entitle  them  to  u 
dend  from  the  1st  January,  1864.  Apart,  therefijre,  from  the  : 
shares,  the  result  would  have  been  a  net  profit  of  £131,656 
the  employment  of  a  capital  of  £750,000,  or  at  the  rate  of  1 
In  this  account  of  profit  all  securities  had  be^ii  taken  at  t 
price  on  the  31st  of  December.  As  the  creation  of  new  sliar 
mium  is  an  exceptional  source  of  profit,  the  directors  recomm 
£125,000  .resulting  therefrom  be  carried  to  a  reserve  fund, 
a  balance  of  £180,731,  out  of  which  an  interim  fJividend 
share,  amounting  to  £25,000  has  been  already  paid,  T 
recommend  that  an  additional  dividend  of  10.^.  per  share, 
come  tax,  be  now  declared,  amounting  to  £125,000,  and  : 
the  2«.  paid  in  August,  a  total  dividend  of  12s.  for  the  yt 
rate  of  15  per  cent,  on  the  whole  capital  of  £l,LKR>,iK>0.  tl 
a  balance  of  £22,440,  to  be  carried  forward  to  next  yearV  accc 
with  the  reserve  fund  of  £125,000  a  sum  of  £147,440  undivi 
tion  to  the  £150,000  distributed  as  dividend.  The  direct 
accordance  with  the  provisions  of  the  articles  of  aBsociati< 
the  vacancy  caused  by  the  retirement  of  Mr.  Charles  Dev 
election  of  his  brother  and  partner,  Mr.  Alexander  Deva 
Quilter,  Ball,  and  Co.,  the  auditors  appointed  at  last  Meeting 
selves  for  re-election." 


Bakmce'Sheet^Deeember  31^,  1864, 


Dr. 


UABnJTZSS. 


Capital  account :— 250,000  shares  £4  paid 

Reserve        

Calls  overpaid         

Bills  payaole  and  deposit  receipts  

Accounts  current  and  sundry  liabilities 
Unclaimed  dividends         ••• 


£1,C 


l,^ 


Profit  and  loss — balance  at  credit  of  this  account 


£1 


£2,t 


Cr. 


Cash  in  hand  and  at  bankers* 

Bills  receivable      

Shott  loans  on  securities  ... 


£1,5 


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3dU  and  Fiiwnce  Company  of  London,       355 


I  and  accoants  current 

ralue     ...        

iing  leases  thereof  bought  up 

•  per  share 


£531,022  14  1 

509,540  1  0 

27,055  10  4 

1,780  0  0 

25,000  0  0 


£2,625,104  11     1 


PBOFIT  ASD  LOSS  ACCfOUNT. 

ies,  income  tax,  directors'  remunera- 
rinting,  stationery,  including  every 


from  last  year 


B  not  due,  at  6  per  cent,  carried  to 

per  share         

e  now  recommended  ...        ...        ... 

0  new  account 


£27,981  5 
180,731  10 

8 
9 

X208,712  16 

6 

£9,534  11 
199,178  6 

1 
4 

£208,712  16 

5 

£8,291  8 

25,000  0 

125,000  0 

22,440  2 

2 

0 
0 

7 

£180,731  10 

9 

£180,731  10 

9 

£180,731  10 

9 

)ving  the  adoption  of  the  report,  said  that  it  was 
w  remarks  to  the  meeting  upon  that  resolution, 
i  the  pleasure  of  meeting  the  proprietors,  thoy  had 
ight  always  be  cons-idered  a  critical  period  in  the 
.  A  new  company  like  theirs  could  hardly  be  con- 
1  until  it  had  passed,  as  a  trial,  through  a  i)eriod 
aat  autumn  the  continued  pressure  for  money,  and 
d  so  contracted  the  ordinary  channels  of  accom- 

of  considerable  panic  was  experienced,  and  sus- 
Liring  that  period  fell  very  naturally  in  a  great 
Snaucial  institutions  wliich  were  in  the  nature  of 

were  working  in  a  way  with  which  the  public  were 
jequently  there  was  brought  to  bear  a  sufficient 
vhat  was  sound  and  what  was  unsound  in  the  posi- 


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^"^56        General  Credit  and  Finance  Company  of  Lorn 

tion  of  such  companies,  and  which  enabled  them  to  «ay  thi 
through  that  period  safely  they  might  hencefurward  consid 
liberated.  They  had  passed  through  that  period — he  might 
only  without  any  loss,  not  only  uninvolved  in  t^nibarrassmeiil 
but  with  perfect  ease  and  without  impairing  tbtnr  resoiirct'* 
ner,  but  in  a  manner  which  raised  the  credit  of  the  institu 
placed  it  on  a  far  more  assured  footing.  (Hear,  Iteiir,)  Befo 
on  the  profits  which  had  been  realised  in  the  criurse  of  the  y* 
to  draw  their  attention  more  pari;icularly  to  the  state  of  thi 
liabilities,  as  shown  by  the  balance-sheet,  and  Vie  did  ^  becau 
institution  like  this  it  was  much  more  importimt  that  they  t 
Bound  position,  with  their  resources  available  ami  weU  in  ha 
they  should  have  earned  an  excessive  profit  during  the  first 
existence.  The  state  of  things  shown  by  the  baljinc*.'. sheet 
tween  cash  in  hand  and  at  bankers,  bills  receivrible,  aud  ahoi 
curities,  they  had  assets  which  they  could  immt'diattilyrealiRi 
of  £1,530,000.  Against  that  they  had  liabilities  on  bills  and  <ie 
payable  to  the  amount  of  £1,227,703.  But  the  latter  tigures  w 
a  great  measure  by  the  entry  on  the  other  side  oi  "  other  h.^iK 
and  accoimts  current,"  amounting  to  £531,022,  which  wer< 
vances  covered  by  securities  for  bills  payable  t<i  tLe  bank, 
might  be  liable  to  foreign  governments,  other  buTikH,  and  ao 
covered  by  securities  to  the  extent  of  £630,0< mi  to  me«t  en 
arrived  at  maturity, so  that  their  net  liability  remained,  not  \ 
but  in  round  niunbers  at  £700,000.  If  they  were  to  wind 
they  would  have  £1,500,000  realisable  at  a  t lay's  rotice  aga 
amounting  to  £700,000,  so  that  they  would  linvo  a  surplui 
immediately  available  after  providing  for  all  liabilitit^s  wit 
their  investments  of  £509,000.  As  regarded  tkoBe  inveatm 
only  say  that  they  had  been  taken  at  a  very  low  rate ;  the 
marketable  securities,  and  upon  a  fortnight^ t^  notice^  or  the 
the  Stock  Exchange,  he  ventured  to  say  that  the  investnien 
were  necessary,  be  realised  at  a  considerably  higher  figure  t 
taken  at  in  the  accounts.  Consequently  if  they  were  to  w 
he  was  far  from  contemplating,  they  would,  sifttT  paying 
have  an  immediate  balance  of  £800,000,  and  upwards  uf  £50ilj 
in  a  fortnight ;  so  that  in  point  of  fact  they  could  wind  up 
with  £1,300,000.  That  position  gave  them  great  command 
larse  negotiations,  such  as  entering  into  a  loan  to  a  forei^'t 
and  for  negotiating  large  concessions,  so  that  iti  caKt:^  vihtr 
was  ample,  and  the  profits  sufiicient  to  make  it  worth  tlie 
could  draw  at  a  minutes'  notice  a  cheque  for  a  million 
without  trenching  in  any  way  on  their  credit  nr  reaourc 
That  was  not  all,  because  the  Creneral  Credit  Cumpany  < 
alone.  It  had  powerful  allies  both  here  and  on  the  contiuei 
they  were  getting  into  the  habit  of  working  together ;  the 
worked  together  in  various  profitable  operatiouH,  and  they 
to  do  so  again,  80  that  he  might  say  that  the  company,  in  coi 
the  connexions  and  allies  who  habitually  worked  with  it,  wa 
moment  and  in  a  position  to  negotiate  large  aifiiirs  in  which 
of  suooess  consisted  of  advancing  £2,000,000  at  once  if  nec( 
that  waa  a  position  of  very  considerable  power,  for  there  we] 
ists  and  few  financial  institutions  which  could  disal  with  tl 


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lit  and  Finance  Company  of  London,       3o7 

er  of  this  company  to  deal.     Tliis  company  really 
ean  financial  power,  which  power  only  required  to 
ce  and  intelligence  in  order  to  lead  to  a  very  suc- 
.rded  the  profit  which  appeared  on  the  balance- 
took  into  account  the  profit  resulting  from  the 
\  it  would  appear  extremely  large.     But  the  fair 
J  to  set  aside  the  profit  resulting  from  the  issue  of 
uting  a  reserve  fund  from  it ;  and  to  see  how  they 
y  had  not  increased  the  capital,  and  thus  derived 
of  profit.     In  that  case  they  would  have  had  a 
dng  the  average  of  the  year,  and  a  net  profit  of 
;  the  rate  of  17  i  per  cent.     The  profit  no  doubt 
[y  increased    if  they  had  chosen  to   run  greater 
ict    large    profits    and  great    risks   were    almost 
It    was    evident    from   the    statement  made   to 
lent  of  his  address  that  they  could  not  have  been  in 
1  the  assets  realisable  at  command,  or  at  a  week's 
ched  out  more  largely  and  traded  on  credit.     On 
had  traded  on  their  credit,  as  looking  at  their  large 
e  amount  of  their  reserve  fund  they  might  have 
of  course  have  realised  larger  profits  in  the  year, 
er,  it  was  much  better  to  deal  safely,  and  toestablish 
nstitution  like  their's  by  passing  a  period  of  pres- 
mimpaired  and  their  resources  immediately  avail- 
liey  should  have  used  their  credit  more  extensively, 
•ger  profit  have  run  the  risk  of  suspicion  attaching 
.)     However  the  result  had  been  that  a  profit  of  17  i 
•tainly  a  very  handsome  one,  had  been  realised  aa 
e  of  the  year.     He  could  only  say,  being  a  large 
director,  that  he  wished  they  might  go  on  doing  as 
3  they  had  done  in  the  past.  (Hear,  hear.)     There 
in  the  accounts  which  he  desired  to  refer  to  to  make 
ise  he  always  liked  to  give  shareholders  beforehand 
it  struck  him  it  was  desirable  should  be   given, 
►  be  elicited  by  questions.     As  regarded  the  current 
i  down  at  £27,981.     It  was  right  that  the  meeting 
lat  item  was  included  the  sum  of  £15,000  for  the 
I,  which,  as  they  knew,  was  fixed  by  the  articles  of 
nt.  on  the  divisible  profits  above  5  per  cent,  in  lieu 
t  included  also  the  income-tax  upon  the  dividend, 
475,  making  together  £19,475,  or  in  round  numbers 
1,000  of  current  expenses,  leaving  only  £8,000  for 
uding  advertisements  and  all  other  charges,  and 
<,  a  moderate  amount  for  conducting  a  business  of 
in  which  they  were  engaged.     The  only  otlier  point 
advert  was  the  propriety  of  not  dividing  the  profit 
to  the  last  penny,  but  carrying  a  portion  to  a  reserve 
£125,000,  the  premium  of  £1  per  share  on  the  new 
lid  not  be  a  question  as  to  the  propriety  of  putting  it 
Eear,  hear.)     To  divide  that  would  be  altogether 
efore,  the  only  question  was  as  to  the  propriety  of 
xt  year's  account  the  balance  of  £22,440  undivided 
lat  was  a  prudent  policy,  and  that  the  declaration,  of 


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358       General  Credit  and  Finance  Company  of  London. 

a  dividend  of  12«,  per  share  for  the  yeaij  which  amounted  to  16 
on  the  whole  capital  of  a  million,  was  going  as  far  as  was  prudeni 
able,  in  the  first  year  of  an  institution  whicli  wa«  looking  forwi 
future.  K  they  paid  very  large  dividends  at  first,  and  the  shs 
got  accustomed  to  excessive  dividends,  and  thc^  shares  regulated  t 
in  the  market  accordingly,  disappointment  might  be  felt  and  ex 
every  meeting  at  which  tiiey  did  not  dedare  *iO  or  25  per  cent. 
and  there  was  considerable  risk  that,  in  order  to  make  such  large 
in  order  to  satisfy  the  shareholders,  the  directors  might  b«  led  to 
hazardous  speculations  rather  than  meet  a  diHapjioiuted  body 
holders  accustomed  to  high  dividends.  So  long  as  tbey  did  no 
bad  business  or  run  any  great  risks,  but  coiifiutsd  themselves  t^ 
mate  course,  making  go(^  interest  for  their  money,  tran&actin 
and  sound  financial  business  wherever  it  offered  without  nu 
oessive  risks,  he  was  convinced  that  they  would  do  well.  But  the] 
oonceal  from  themselves  that  in  every  institut  ion  of  this  character 
a  sreat  temptation  to  boards  of  directors  to  take  hazardouB  buain 
sake  of  a  large  profit,  and  though  they  miglit  onoe  or  twice  ei 
obtain  an  excessive  profit,  yet  in  the  long  run  he  believed  they 
safe  to  be  caught,  and  in  all  probability  then  have  to  disgorge  a ; 
of  the  profits  which  they  had  previouslv  made,  (Hear,  hear,) 
therefore  strongly  of  opinion,  and  the  other  directors  concurred 
that  the  wise  and  prudent  poUcy  was  to  go  on  year  by  year  pay 
thing  within  what  had  been  earned,  keeping  up  a  large  Teaerve 
only  launching  out  into  a  larger  dividend  when  thay  saw  that  tl 
their  affairs  would  really  admit  of  it  in  pniilenct^  Before  he  e 
resolution  he  would  refer  to  one  or  two  large  operations  in  whict 
pany  had  been  engaffed,  because  they  had,  he  might  almost  say,  a 
interest.  They  had  just  brought  out  one  very  large  afiair,  tl 
State  Loan,  which  had  been  entirely  taken  up,  (Cheers.)  The 
that  loan,  which  was  £8,000,000  nominal  capital,  had  boen  £ 
oovered  by  public  subscaiptions,  consequently  it  had  all  been  a 
hond  fide  subscribers,  and  the  contractors  were  not  MX  aaddled 
portion  of  it.  (Hear,  hear.)  They  realised  a  verj-  fair  profit  lun 
sion  upon  the  business,  and  were  not  left  wit}i  any  material  risk 
liability.  (Cheers.)  They  had  also  been  instrumental  in  otferi 
public  nere  an  investment  which  looking  at  the  rate  of  interest  i 
hand,  and  at  the  nature  of  the  security  on  the  other— a  fair  invte 
a  foreign  loan ;  and  although  in  a  matter  of  busiuefiB  they 
pounds,  shillings  and  pence,  and  did  not  let  other  consider ati 
into  their  minds,  still  it  was  a  source  of  satisfaction  to  feel  that 
what  was  called  a  good  business  on  sound  oommerciiil  princiitles, 
aJso  been  instrumental  in  naturalising  Italian  Kecurities  in  the  En 
kets  and  drawing  closer  together  the  ties  that  connected  this  coi 
Italy  as  a  free  constitutional  kingdom,  likely  to  stand  in  the  rel 
political  ally  with  this  country.  (Hear,  hear.)  There  waa  anol 
operation  in  which  the  name  of  this  company  had  been  pr^ 
brought  before  the  public  in  connection  with  the  Spamsb  Go 
That  negotiation  did  not  lead  to  any  result,  Ijecause  the  provisioi 
which  lutd  been  signed  was  not  ratified  by  the  Spanish  Oorte« 
same  time  he  thought  the  public  opinion  wa»  that  while  the  com 
perfectly  right,  on  the  other  hand,  to  refuse  to  advance  money 
unless  tn^  saw  their  way  to  a  satisfactory  settlement  with  the 


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?dit  and  Finance  Company  of  London.       359 

other  hand,  justified  in  entering  into  a  negotiation 
J  lead  to  the  formation  of  a  practical  scheme  for  the 
jxistment  of  a  complicated  and  difficult  question, 
it  would  have  the  eflect  of  raising  the  value  of  the 
,  that  in  re-opening  the  Exchanges,  both  of  Paris 
mish  government,  they  were  engaging  in  an  opera- 
jneficial  to  all  parties.  Although  that  negotiation 
e  been  carried  into  eflect,  he  was  still  of  opinion 
upon  a  similar  basis  would  be  most  beneficial  to  all 
t  the  same  time  he  was  bound  to  say  that  no  impu- 
;ed  upon  the  Spanish  government  on  account  of  its 
e  the  treaty  was  expressly  understood  to  be  a  pro- 
>  ratification.  That  it  was  not  ratified  he  thought 
regarded  Spain,  but  the  Spanish  government 
,  state  of  excitement  and  confusion  with  regard 
question,  and  Senor  Salamanca,  the  Spanish 
feet  honour  and  good  faith,  and  never  misled  the 
3  thought  they  had  made  a  very  good  arrangement 
be  subject  to  ratification,  and  that  it  was  not  ratified 
sonclusion,  he  might  say  that  the  question  had  ad- 
s  a  settlement,  and  that  this  very  negociation  had 
ancing  it.  He  therefore  hoped  that  before  many 
ther  through  this  or  some  other  quarter,  the  Spanish 
Q  its  eyes  to  its  true  interests,  and  that  a  fair  settle- 
might  be  come  to.  (Cheers.)  He  merely  adverted 
id  the  Italian  loan  were  the  two  large  operations  in 
Jeneral  Credit  Company  had  been  brought  promi- 
ic,  and  the  mere  fact  that  they  had  been  engaged  in 
ription  showed  that  they  must  have  made  cousider- 
7  first  started  with  their  way  to  make  in  tJie  world, 
of  a  completely  novel  and  experimental  character, 
nany  old-fashioned  bankers  and  capitalists  shrugged 
ubted  whetlier  they  would  not  come  to  grief  in  the 
istence.  (Cheers.)  He  concluded  by  moving  the 
,  and  the  declaration  of  a  dividend  of  lOs.  a  share, 
he  20th  of  February,  making,  with  the  ad  interim 
•  per  cent. 

red  whether  any  business  was  being  transacted  by 
I  to  Turkey. 

1  that  negociations  were  going  on  with  respect  to 
quired  secrecy  at  present,  as  all  such  negociations 
tmpleted.  He  suggested  that  gentlemen  who  had 
i  ask  them  one  after  another,  and  that  he  should 
end. 

ere  then  asked  by  the  shareholders  with  respect  to 
he  state  of  the  accounts,  the  allotment  of  the  shares 
out  by  the  General  Credit,  the  transactions  entered 
ral  Credit  and  the  Society  Gen^rale  of  Paris,  the 
lalf -yearly  meetings,  the  Anglo-Egyptian  Loan,  the 
iments,  and  other  matters. 

the  attention  of  the  board  to  the  way  in  which  the 
ie  up,  which  he  complained  of  as  vague,  indefinite, 
ctual  results  of  the  company's  operations.  As  it  ap- 
'  deducted  the  rebate,  the  premium  of  £1  per  share 


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360        General  Credit  and  Finance  Company  of  Londoi 

aud  the  interest  of  5a.,  the  net  profits  would  be  £123,365,  whicl 
to  be  the  bon&  fide  earnings  of  the  company.  They  had  dividec 
Now,  if  they  referred  to  the  18th  article  of  association,  it  was 
that  no  division  should  be  made  except  out  of  earnings,  and  h 
conceive  that  the  £1  premium  and  bs.  interest  could  be  treated  i 
He  wished  to  know  whether  the  directors  had  taken  their  salar 
cent,  on  those  premiums,  after  deducting  the  5  per  cent.,  whic 
first  deducted.  In  his  view  such  premium  coida  not  be  Seated 
earnings. 

Another  Shareholder  said  that  if  any  profit  had  been  realised 
of  the  French  Soci^t^  G^n^rale  shares,  he  thought  that  wou] 
same  condition  as  the  premium  referred  to.  He  wished  some  < 
to  be  given  in  respect  to  the  French  sharesi  Various  other  que 
asked  amidst  the  impatience  of  the  meeting,  but  inasmuch  as  t] 
answered  in  detail  in  the  speech  reported  l^ow,  it  is  unneccesf 
them  here. 

The  Chairman,  in  reply,  said  that  he  would  proceed  to 
various  questions  which  had  been  put  to  him.  With  refer 
appeal  of  one  hon.  proprietor  not  to  disclose  too  much  in  detail 
of  the  investments,  he  could  assure  him  that  he  need  uot  be  ai 
doing  so,  for  as  long  as  he  had  the  honour  of  being  in  that  clia 
never  do  anything  inconsistent  either  with  the  interests  of  the  s 
or  the  fair  interests  of  other  parties.  It  so  happened  that  on 
occasion  there  was  uothing  at  all  in  their  table  of  investments, 
his  word,  which  could  not  be  explained  before  the  whole  meet 
affecting  any  interest  or  doing  any  harm,  but  which  on  the  com 
redound  to  the  credit  of  the  company.  At  the  same  time  it 
fectly  well  be  otherwise,  and  it  might  happen  that  another  year 
have  investments  which,  though  perfectly  sound  and  justifiabl 
in  a  critical  |X)sition,  and  he  for  one  would  not  establish  a  pi 
detailing  their  investments  under  circumstances  which  migh 
prejudicial  to  the  company  aud  grossly  unfair  to  other  pers4 
was,  however,  on  this  occasion  one  exception,  because  it  relatec 
which  was  nearly  woimd  up,  and  with  which  they  had  beea 
associated.  He  alluded  to  the  Socidtc  G^n^rale.  It  was  perf« 
to  ask  the  nature  of  the  company's  connection  with  that  coi 
whether  there  were  any  liabilities  or  engagements  of  that 
which  this  one  was  concerned.  The  connection  between  the  tw 
consisted  of  a  treaty  by  which  in  all  large  affairs  they  reciproc 
to  one  another  a  certain  proportion  of  business,  which  it  was  fi 
to  accept  or  reject.  Of  course  it  was  equally  free  to  this  0(»mpf 
any  business  offered  by  the  Soci^t^  Generale,  which,  from  beiug 
Trench,  or  from  any  other  cause,  was  a  description  of  businc 
they  did  not  see  their  way  to  a  profit.  It  was  perfectly  true  th 
pany  originally  held  20,000  of  the  French  shares  ;  and  wheu 
meeting  some  time  last  year,  those  shares  were  at  a  premium  o 
and  they  had  on  paper  on  that  account  a  profit  of  from  ; 
£120,000.  It  was  perfectly  true  that  he  stated  that  so  far  a 
then  see,  taking  into  account  the  issue  of  new  shares,  and  tl 
shares,  the  profit  of  the  year  would  come  out  between  £> 
£400,000,  and  he  thought  that  that  statement  had  been  ver 
result.  The  profit,  as  it  stood  on  the  balance-sheet,  was  £19 
round  numbers  £200,000,  to  which  must  be  added  the  reserve 


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?^  Company  of  London.        361 

i  profit  shown  on  the  balance-sheet 
nerated  which  brought  the  whole 
0(),000.  The  market  price  of  the 
smiiun,  therefore  there  was  a  protit 
8,  however,  were  not  uuder  the 
,  and  the  cimdition  under  which 
eir  being  locked  up  in  what  was 
lot  under  this  company's  control, 
might  say  at  once,  as  it  was  no 
laged.  They  could  not  dispose  of 
mium,  and  when  the  time  came 
ge  number  of  shares  were  thrown 
price  went  down  as  low  as  £2. 10^. 
if  the  whole  of  that  protit  might 

intrinsic  goodness  of  the  conces- 
business  was  such  that  the  French 
rices,  bought  up  the  shares,  and 
tiat  this  company  had  been  able  to 
iderable  protit,  and  the  remainder 
Leers.)  They  had  them  valued  on 
—much  lower  than  they  stood  at 
profits  for  the  past  year  did  not 
have  done.  Since  then  they  had 
lan  they  had  been  valuetl  at,  and 
3ve  the  tigiu-e  at  which  chey  were 

consequence  of  which  was  that  a 
from  them  in  the  current  year, 
respect  to  the  propriety  of  limit- 
estion  which  they  must  deal  with 
t  be  distinctly  understood  that  no 
commission  under  the  articles  of 
mt  phiced  to  the  reserve  fund — 
so  that  when   they  recommended 

did  so  in  eftect  at  their  own  ex- 
entitled  to  their  10  per  cent,  upon 
interest,  it  was  crmsidered  highly 
was  made,  that  instead  of  having 
t  Exchange  with  difl'erent  values, 
ame  position  as  the  old,  and  there- 
is  paid  up  from  the  1st  of  January, 
5d  uix)n  them.  Such  a  proceeding 
•oprietors  of  the  new  shares,  the 
jught  a  new  share  at  £1.  ba.  pre- 
•ticle  which  was  now  worth  £3 ; 
itions  of  shares,  one  of  which  did 
ear,  they  would  not  have  been  in 
8  therefore  legitimate  interest  ac- 
ly  was  astonished  by  the  ingenious 
ijred  that  because  they  were  able 

a  capital  of  £375,000,  they  were 
17i  upon  a  capital  of  £760,000. 
Qious,  but  if  they  tested  it  by  the 
ince,  they  would  soon  see  what  it 


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362       General  Credit  and  Finance  Company  of  London, 

was  worth.  Public  opinion  on  this  question  was  the  best  test, 
the  time  alluded  to,  the  total  amount  of  premium  which  tiie  pi 
considered  the  shares  of  this  company  were  worth,  was,  at  3  prem.  i 
125,000  shares,  £375,  but  now  the  value  of  the  premium  set  by  the  pi 
on  its  shares,  was  £750,000,  so  he  was  quite  at  a  loss  to  see  how  they  c 
be  in  a  worse  position  now  than  then.  He  expressed  himself  oppoM 
half-yearly  meetings  in  a  company  of  this  description,  because  it  was 
like  a  bank  where  the  transactions  consisted  simply  of  discounting, 
where  the  accounts  could  be  made  up  with  perfect  ease  and  accuracy  e 
half-year.  In  their  case  they  were  constantly  involved  in  large  and  crj 
operations — such  as  foreign  concession  loans,  and  so  on— which  took  i 
time  to  mature,  and  the  results  of  which  could  be  only  anticipated.  ' 
the  case  of  the  Soci^t^  G^ndrale,  for  example,  in  what  way  could 
have  been  brought  before  them  at  a  half-yearly  meeting  ?  Either 
would  have  to  be  very  reserved  in  their  communications,  or  they  W( 
as  was  more  probable,  indulge  in  anticipations  that  might  not  be  real 
and  thus  act  upon  a  puffing  system,  to  which  he  was  entirely  opposed, 
course  it  was  in  the  power  of  the  shareholders  to  alter  the  artides  of  \ 
ciation  by  holding  two  special  meetings,  and  to  hold  half-yearly  meei 
in  opposition  to  the  views  of  the  board,  and  then  of  course  the  I] 
would  have  to  consider  its  own  position  in  relation  to  the  proprietors 
was  his  decided  opinion,  and  that  of  the  board,  that  the  present  sy 
was  better  for  the  permanent  interest  of  the  company.  The  onW  ( 
point  was  the  Venezuelan  loan.  That  loan  was  started  by  the  Gei 
Credit  Company  on  commission  at  a  fair  lisk.  The  public  must  ui 
stand  that  when  loans  were  offered  at  a  low  price,  and  at  10  or  11  per 
interest,  they  could  not  expect  to  invest  their  money  in  such  secui 
with  the  same  amount  of  certainty  as  if  they  were  investing  them  in 
Three  per  cent.  Consols.  The  question  was  whether  the  high  raj 
interest  compensated  for  the  risk,  and  the  only  duty  of  the  General  C 
Company  in  this  case  had  been  to  see  that  the  statements  put  forth  ii 
prospectus  were  bond  fide.  They  found  them  to  be  so,  and  liithertc 
Venezuelan  government  had  acted  upon  them ;  therefore,  so  far  ai 
General  Cremt  was  concerned,  there  had  been  no  misleading  of  the  pi 
What  they  did  was  to  send  an  agent  out  to  Venezuela,  who  asoert^ 
that  every  statement  was  fully  certified  before  it  was  accepted. 
Venezuelan  government  had  acted  with  perfect  good  faith  in  regard  U 
contract  entered  into,  and  had  remitted,  and  were  in  course  of  remit 
the  customs'  duties  to  meet  the  loan.  That  being  the  case,  the  Gei 
Credit  Company  was  free  from  responsibility  in  the  matter,  and  the  pi 
invested  their  money  at  10  or  11  per  cent,  with  their  eyes  open, 
company  had  in  respect  to  this  loan  done  the  business  of  a  commli 
agent,  and  of  course  it  was  not  for  them  to  guarantee  the  holders  oi 
loan  from  wars  and  revolutions  in  South  America.  All  that  he  coulil 
was  that  the  Venezuelan  government  had  hitherto  carried  out  the  arra 
ments  made  for  meeting  the  loan  in  perfect  good  faith. 

A  Pifoprietor  reminded  the  chairman  that  he  had  inquired  whetbi 
the  event  of  this  company  bringing  out  others,  the  shares  could  so 
allotted  pro  raid  among  the  proprietors. 

The  Chairman  said  that  he  was  glad  that  the  hon.  proprietor  ha^ 
minded  him  of  that  question.  The  General  Credit  Company  \iaA  w^\ 
some  time  past  brought  out  any  companies.  When  they  did  bring 
any  the  board  would  be  happy  to  enter  into  an  arrangement  with  any  Ii 
number  of  the  shareholders  that  they  should  subscribe  the  whole  of 


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Emtem  Banking  Company. 


363 


or  bind  themsalvefi  to  accept  t.be  ah  area  allotted 
etter  or  vrorm.  As  long  nd  that  was  not  the  caa«, 
th  bii«iiie8«  must  know  tkat,  if  the  shareholders 
tulat'e  upoa  getting,  a^  oertain  number  of  shares 
ru  into  the  market  when  they  were  at  a  x-reuiium, 
t  the  possibility  of  bringiiig  out  any  company,  bB- 
B  9€naes  would  take  the  reaponsibility  of  iasuing 
len  a  large  number  were  in  the  hanci  of  parties 
ly  brought  in  to  swamp  the  market.  It  was  tried 
Ill's  Bay  aharea,  with  what  result  they  kaew,  and 
Credit  Company  were    not  going  to  repeat  tke 

lueatnoD, 

hat  the  company  did  not  itself  hold  any  of  the 

put  and  carried  unanimoiisly,  and  tho  auditors, 
i  Co.,  having  been  re- elected,  iMi  the  motion  of  Mr, 
r.  Mark  Philli|>Sy  a  cordial  vote  of  thanks  to  the 
x)n  eluded  the  proceedings. 


ASTERK  BANKING  COMPANY. 

ral  m^>eting  of  prm^rietors  was  held  on  the  6th 

1  Tavern  ;  51r.  A.  Laurie  in  the  chair. 

and  balance-sheet  were  reatl  by  the  Secretary  ae 

much  pleasure  in  presenting  to  the  shareholder& 
jr  with  a  statement  of  accounts  to  the  Slat  Deccm- 
ation  of  the  bank  the  buainesa  of  Meears,  Mangles 
— established  in  1836,  and  carried  on  at  Guildford 
I  taken  as  a  nucleus,  and  shortly  afterwards  the 
less  of  Messrs.  Burgees  and  Can  ham,  the  Hamsgate 
hese  purchases  has  proved  highly  SAtiafactory. 
id  tliree  agencies  have  since  been  opened^  making 
ivhere  the  baiik  b  now  carrying  on  business.  By 
t  will  lie  seen  that  the  gross  proUt  up  t*:*  the  31  nt 
4,117.  13fl.  8<f.  After  deducting  interest  paid  to 
tjd  current  accounts,  cuiTent  exjjenses,  rebate  on 
duo,  and  provitling  for  a  loss  of  £21G.  5*,  Id,  in 
5t>  tlierM  reiTiains  a  net  profit  uf  £4,845.  Od,  3t/. 
d  tb<  of  a  dividend  at  the  rate  of  £6  i>er 

I  iiK  on  the  paid-up  capita,  which  will 

;  that  Xo^u  153,  bt<  written  off  the  prelimiiiiiry 
off  the  [>ur chase  of  the  old  banks,  being  at  the 
mnum— and  that  the  sum  of  £500  be  appropriated 
will  leftve  £470,  1V^»,  lid.,  together  with  rebate 
^'''>.    8*,    lid.,    making    the    diun    of 

1  to  new  profit  and  losi*  account. 
:  a^fiociation  the  directors  all  retire, 

re-election.  The  audi  torn,  Charles 
„-,,  Esq.j  racate  their  offices,  and  being 


cent 
civrri 


:]64 


SotUh  Eastern  Banking  Company. 


eligible,  offer  theuiselyefl  for  re-electiou.    The  dividend  will  be 
on  and  after  the  7th  inst. 

<<  Balance  Sheet.— Dr. :  To  capital,  viz.,  10,000  shares  of  £25  ea 
which  £10  per  share  have  been  called  up,  £100,000;  less  out 
calls,  £4,635 ;  amount  due  to  customers  on  current  and  deposit  i 
£279,367.  14s.  hd. ;  grops  profit  up  to  Dec.  31, 1864,  carried  to  p 
lr)S8  account,  £14,117.  13s.  %d. ;  total,  £388,850.  8s.  Id.— Cr. :  B; 
liranches.  City  Bank,  and  call,  £66,382.  Os.  9(2. ;  bills  discoonte 
and  other  securities,  £274,384.  14s.  6(2. ;  sundry  stamps,  £432. 
preliminary  expenses,  £7,354.  17s.  10(2.;  purchase  of  old 
£22,258.  3s.  4d. ;  leaseholds  of  bank  premises,  fittings,  safes,  fumii 
at  head  office  and  branches,  £7,461.  12^.  2<i. ;  cost  of  establii 
liranches  and  three  agencies,  including  solicitor's  charges,  trave 
Ijenues,  i&c,  £2,334.  13s.  9d. ;  interest  on  current  and  deposit  i 
£2,491.  16s.  2d. ;  salaries  and  other  expenses  at  head  office  and  I 
£5,750.  2s.  4(2. ;  total,  £388,850.  8s.  1(2. 

*'  Profit  and  Loss  Account. — To  interest  on  current  and  deposit  i 
£2,491. 16s.  2c2. ;  current  expenses,  including  rent,  rates,  salaries,  si 
i^c,  £5,075.  10s.  7(2. ;  loss  of  notes  and  driSts  in  transit  through 
£216.  5s.  1(2. ;  directors'  remimeration  for  1864,  £458.  6s.  8d. ;  r 
bills  discoimted,  £1,030.  8s.  11(2.  Net  profit : — Amount  written  < 
minary  expenses,  at  the  rate  of  10  per  cent,  per  annum,  £3( 
amount  written  off  purchase  of  old  banks,  at  the  rate  of  10  per  < 
annum,  £1,112.  18s. ;  dividend  at  6  per  cent.,  £2,387. 13s.  4(2. ; 
carried  to  reserve  fund,  £500 ;  amount  carried  forward  to  profit 
new  account,  £476. 19s.  11(2. ;  total,  £14,117. 13s.  8(2. ;  by  gross  p 
the  half-year,  brought  down,  £14,117.  13s.  8(2. ;  total  £14,117.  15 

The  Chairman  said  that  the  report  gave  all  the  information  u 
but  he  should  be  happy  to  answer  any  question  that  might  be  put 
was  one  remark  he  wished  to  make  in  reference  to  the  £500  plao 
reserve  fund.  That  sum  might  appear  small,  but  there  was  a  clav 
articles  of  association  which  stated  that  the  directors  should,  be 
recommended  a  dividend,  place  a  sum  to  the  reserve ;  and  to  com 
all  legal  requirements  they  had  placed  £500  to  that  fund,  which  tl 
Boon  to  increase  to  a  much  larger  amount.  In  conclusion,  he  m< 
the  report  be  adopted. 

Mr.  Bradshaw  seconded  the  motion. 

A  Shareholder  inquired  whether  the  £216.  5s.  1(2.  lost  in  transit 
the  post  had  been  forwarded  in  notes  or  cheques,  and  whether  tl 
Si  ad  been  registered. 

The  Chairman — It  was  contained  in  two  parcels  forwarded 
same  branch.     It  consisted  of  notes  and  cheques.     The  nottas  h 
cashed,  and  the  cheques  which  have  not  been  presented  have  been  ( 
The  parcels  were  not  registered,  and  in  this  the  manager  disob 
regulations  of  the  bank,  for  which  he  had  been  reprimanded. 

In  answer  to  other  questions, 

The  Chairman  stated  that  the  manager  of  the  branch  in  questi< 
very  zealous  servant,  and  as  it  might  damp  his  energies  to  mei 
name,  he  hoped  he  should  not  be  pressed  to  do  so.  (Hear.)  1 
had  no  bad  debts  to  provide  for. 

Mr.  Sharp  complained  that  a  sufficient  sum  was  not  set  apart 
meeting  the  preliminary  expenses  and  the  purchase  money  foi 
banks,   and  moved  that  the  dividend  be  at  the  rate  of  5  insti 


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B  balaiice   be  credited   to   the   ptirpoaea  be  bad 

at  the  dilfereucc  would  be  only  ^400,  and  he  did 
lers  wotdd  wkh  Uy  have  their  dividend  rti<luced  iu 
lilt  U)  tlie  fund  for  repaying  the  prelindnary  t?aL- 
it*  old  bunks. 

kcing  swtnnded  fell  to  the  ^oimd,  and  the  report, 
rk»,  WH»  put  and  carrie*!  unauiniously. 
ctm^r  the  directors,  ^liu,  under  the  dee<l  of  associa- 
rion  from  Mr.  G.  Taylor, 
i  for  hiii  buaineea  qunlifi- 
laiy  otiiei   juiiit-i^tijck  cf^mpanies,  tmii  urged 
of  his  cither  occnpntioiif,  in  urder  that  be 
lid  til  hiH  diitieB  at  the  South  Eai^tern  IxjanL 
b€»en  suffered  by  8ome  other  banks  bad  all 
^  u*A  looking  sulhdeiitly  after  their  manager, 
that  there  was  no  director  more  regular  in  bis 
than  Captain  Mangles,  whose  aervioeft  were  of  the 
aoern.     (Hear^  hear.) 

ained  that  many  of  the  boards  of  which  he  was  a 
y  nominal   dutiea.     He  hod  retired  from  the  di- 
uj  order  that  bo  might  devote  mt»re  of  his  time  to 
u     (Hear,  hmr,) 
iral  directors  were  then  put  seriatim,  and  their  re* 

dwise  re-elected,  and  twenty  guinefta  each  awarded 

the  chairman  and  directors,  and  a  similar  oompli- 

he  manfiger,  having  been  accorded   and  acknow- 

lis  reply  took  occasion  to  observe  U|>on  the  rapid 

at  the  several  brandies,  adtling  that  from  the  com- 

ul  never  re-diseounted  a  uingle  bill. 

le  special,  and  resoUttiouB  were  propo6e<l  and  car- 

w  in  the  art  idea  empjwering  the  directcirs  to  sail 

V  (the  alteration  bting  nGcessary  in  order 

'f  the  Stock  Exchange),  changing  the 

<  riir  Lu unties  Joint-Stock  Bank  Association,  and 

^ing  the  capitid  of  the  04:jmpiiny,  by  the  iamiG  of 

'      Tiy  amount  not  exceeding  £1,0(K),(K,HJ. 

«» 
.tt  .1  that  the  now  shares  would  iu  aU  probability 
,  which  would  go  to  the  augmeutatiou  of  the  reserye 

he  c^iairmftii  concluded  the  proceediiigs. 


!X  BAKKINO  CORPORATION,  UMITBD. 

ral  meeting  of  the  shareholders  of  this  corporation 
*ebruary>  at  the  Londcai  Tavern  ;  G.  F.  Holroyd, 

ras  read>  stated  that  the  directors  recommend  the 
1  at  the  r»t4»  of  5  per  cont,  per  iUinum,  which  will 
ieairing  a  disposay^  balauge  of  ii^TTG.  Os  8<i. 


366 


Provincial  Banking  Carporation. 


The  Ohainnai],  in  moying  the  adoption  of  the  report,  Baid,  as  ayei 

time  had  elapsed  since  they  met  them  there,  it  would  not  be  neoea 

him  to  address  them  at  any  great  length.    The  most  important  u 

the  1x>ard  since  they  had  last  the  pleasure  of  meetii^g  them  had  t 

amalgamation  with  the  Bank  of  Wales*  (Hear,  heftr.)     The  booi 

that  matter  the  most  careful  consideration.     They  went  fully  i 

business  and  prosperity  of  that  bank ;  they  took  eepecial  care  to 

themselves  of  the  prospects  of  the  business  that  they  would  be  li 

obtain  in  that  way.     They  found  that  these  were  very  good,  and 

Bame  time  they  found  the  bank  itself  was  not  able  to  dijvelop  the 

the  want  of  sufficient  capital.     On  the  other  hand,  this  oorporatio 

very  large  amount  of  money  in  their  hands,  arising  from  the  depa 

acccHunts  of  customers,  which  they  could  not  employ  profitably 

their  business  was  not  of  such  a  nature  as  to  require  the  employ] 

that  large  amount.     The  shareholders  would  see  by  the  nco<3uiite  t 

excens  of  amoimt  due  to  customers  on  deposit,  current,  and  other  a 

over  that  due  from  customers  and  others  on  current  bills  of  exehan 

was  something  like  £170,000.    That  sum,  therefore,  they  might  s 

lying  idle,  because,  inasmuch  as  the  board  had  no  use  for  it  in  the 

of  their  own  legitimate  business,  they  had  to  place  it  on  deposit  i 

bankers'  at  the  ordinary  price.     They  received  from  it  no  more  tl 

public  received  for  their  deposits,  therefore  no  more  than  tliey  were  ob 

Allow  their  own  customers.  Lookinc  at  all  these  oonsideratioBs,  the  di 

felt  there  was  a  good  opportimity,  through  the  means  of  the  Bank  of 

for  obtaining  the  means  of  disposing  of  their  surplus  cnpital,  and  dii 

of  it  profitably,  in  the  way  of  the  business  of  this  corporation,  and 

this  led  the  board  to  amadgamation  with  the  Bank  of  Wales.     The 

gamation  had  been  carried  out  entirely  on  equal  terms.     The  ati 

the  Bank  of  Wales  had  been  £100  shares,  on  which  £20  had  beei 

The  shares  of  the  Provincial  Banking  Corporation  were  £50  sha 

wMcli  £5  had  been  paid,  so  that  the  shareholders  of  the  Bank  of 

would  receive  two  £60  shares  for  £100.    Upon  those  shares  tliey  w< 

credited  with  £10  as  paid  up,  so  that  if  in  the  course  of  tirno  any  \ 

shares  were  issued  by  the  corporation,  when  a  further  £5  was  call 

shares  of  both  classes  would  merge  into  one.    He  thought  from  v 

had  stated  it  would  be  seen,  and  the  directors  hopeil  and  belie v< 

the  course  they  had  taken  in  adopting  this  amalgam:  it  ion  would 

the  benefit  of  the  corporation,  and  would  meet  witli    their   ap 

As   regarded  the  progress  of  the  bank,  if   they   compaied  the    \ 

balance-sheet  with   that  which  was  submitted   at  tho    la^t   mijuX 

November,  they  would  see  there  was  a  steady  increas*?  i^f  the  prospc 

the  corporation  both  in  the  amount  of  deposits  and  also  in  the  amc 

the  bills  discounted,  ond  so  forth.     That,  he  thought,  would  ahon 

that  tho  business  of  the  branches,  as  carried  out  before  the  amalgai 

with  tlie  Bank  of  Wales,  was  gradually  and  steadily  iinproviag, 

their  hiaX  meeting  the  directors  had  opened  two  now  branches 

KingslaQd  and  the  other  at  the  Edgware  Road.     Th<^y  were  indi 

open  those  branches  by  a  requisition  signed  by  a  largti  number  of  u 

cial  and  respectable  men  of  business  in  those  several  localities  ani 

had  every  reason  to  believe  these  branches  would  be  likoly  to  provi 

suocesaful.    In  looking  at  the  net  profit,  it  would  not  do  without  an 

nation  to  take  it  in  any  way  as  a  criterion  of  what  it  would  be  in  i 

although  they  actually  commenced  in  July,  they  had  at  that  time 


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niKitjl  Banking  Corporation, 


367 


The  East  of  England  Bank  was  not  taken  orer 
and  the  bnsinesfi  could  not  be  aaid  to  haTe  oom- 

Angufit,  BO  that  their  working  did  not  extend  over  a 
Ch&the  other  hand^  from  the  r«a«ons  he  stated,  from 
»nej  on  hand,  practically  unemployed,  the  profits 
\  if  they  had  had  a  field  suffioientiy  large  to  employ 
jit  place,  the  expenaes  wore  large :  they  had  taken 
land  Bank  ;  it  woa  neoeBBary  tu  take  oTer  their 
By  were  giving  their  best  exertions  to  the  reduction 
^"ha^i  attcoeeded  in  reducing  them,  and  they  hoped 
From  what  he  saidi  they  would  see  the  corporaSon 
jood  prospect  of  becoming  a  sound  and  Buooeeaful 
,ear.)  It  only  remained  for  him,  therefore,  before 
of  the  report,  that  he  Bhoold  state,  that  as  thi?  waa 
ing  of  the  proprietor*,  it  was  their  (the  directors*) 
f  trust  they  had  hitherto  reposed  in  them,  and  at 
r  n  renewal  of  their  confidence.  He  ooiild  only  Ray 
id  that  confidence  to  them  for  the  future,  he 
If  and  his  colleagues  promise  that  they  would 
joa  to  the  shareholders'  interests,  and  they  would 
old  bo  at  all  times  informed  of  the  real  state  of  the 

loss  ahould  occur,  which  he  did  not  think  likely, 
iocret  from  them.    He  begged  to  move  the  odoptioa 

1  the  motion. 

what  amount  had  been  depended  in  opening  the 
[e  did  not  think  that  the  dosa  of  people  living  in 
ras  a  likely  ciass  to  benefit  a  corporation  of  this 

r  complained  of  the  meagre  appearance  of  the  offioe 

ited  out  that  the  onrreut  expenses  of  branches  were 

BB  of  establishing  the  bauk|  and  remarked  that  but 

ng  up  the  acoEJunt  they  might  not  have  heanl  4»f  the 

malgiimatioii,  he  beliuved  that  the  Bank  of  Wales 

the  Provincial  Bank  the  best  nf  the  har^^nin. 

fmg  to  various  questions,  stated  th  een  the 

not  to  incur,  in  establishing  tho  I\  l>ranch, 

u  was  absolutely  necessary,  and,  tliertiiiHe,  they  had 

or  Mx  months  at  a  small  rent.     (Hear,  hear.)     That 

red  as  yet  in  rospoct  of  that  branch,  and  there 

h^Tmir  of  a  branch  being  opened  there,  tliat  if 

I  tie  other  would  have  been 

iiersi  was  largo  na  crjmpared 

iLal  uiieiii ployed.     The 

have  to  bo  ]jaid,  for 

i:  '"'■     -   --  '     --hi-s, 

d  of  y*, 

...  ..   uU 

un  aiixaoimt  in 
,4,^  1 1 tineas  could 

ea.  t  not  in  any 

1  of  tu.    .»,»», ....  .:    u  of  n  CJkllt  he 


Digitil 


368 


English  and  Foreign  Credit  Company. 


stated  that  at  the  last  meeting  the  directors  had  not  had  an  opportunity 
testing  the  business  which  they  had  taken  over  in  the  East  of  Engla 
Bank,  but  they  had  since  found  that  they  had  a  large  sum  imemploy 
and  therefore  they  did  not  think  it  advisable  at  present  to  make  a  ci 
Of  course  they  must  be  guided  in  making  calls  by  the  requirements  of  i 
bank,  and  by  whether  the  money  could  be  usefully  and  profitably  employ 
(Hear,  hear.)  No  doubt  as  the  business  developed  a  call  would  be  neo 
sary.  The  working  capital  of  the  united  banks  amounted  at  present 
from  £85,000  to  £^,000,  and  the  large  amount  of  the  deposits  showed  1 
confidence  of  the  public  in  the  concern.  There  was  no  truth  whatever 
the  statement  that  an  amalgamation  was  contemplated  with  the  So\ 
Eastern  Bank. 

A  Shareholder  having  expressed  an  opinion  that  their  paid-up  capi 
was  exceedingly  small  for  a  bank  with  twenty-nine  branches,  and  thai 
would  have  been  better  had  the  directors  adhered  to  their  original  int< 
tion  of  making  a  call. 

Mr.  Michell  observed  that  the  very  essence  of  successful  banking  ^ 
to  trade  with  as  little  money  as  they  could,  because  it  was  obvious  tl 
the  smaller  the  capital  the  dividend  had  to  be  paid  upon,  the  larger  woi 
the  dividend  be.  And  with  regard  to  the  security  of  the  public,  tl 
rested  not  so  much  upon  the  paid-up  capital  as  upon  the  capitid  uncalL 
(Hear,  hear.)  This  company  had  £1,300,000  of  uncalled  capital,  and 
was  upon  that  that  they  claimed  public  confidence,  and  that  they  wo\: 
be  able  successfully  to  carry  on  the  operations  of  the  corporation. 

The  motion  was  then  agreed  to ;  the  dividend  at  the  rate  of  6  per  oei 
per  annum  was  declared ;  and  the  directors  were  re-elected,  £500  bei 
voted  as  remuneration  for  their  .past  services. 

Mr.  Galsworthy  drew  attention  to  a  clause  in  the  articles  of  associati 
by  which  a  person  described  as  the  promoter  of  the  company  was  to  i 
ceive  not  only  £5,000,  but  5  per  cent,  upon  future  issue  of  i^ares ;  a] 
urged  the  directors  to  exercise  their  ingenuity  to  get  rid,  if  possible, 
the  objectionable  clause  altogether. 

The  Chairman  said  the  directors  were  no  parties  to  the  articles,  as  th 
were  registered  before  the  board  was  formed,  but  they  were  anxious  to  ^ 
rid  of  the  clause  referred  to,  and  would  do  their  best  to  accomplish  tl 
object. 

The  auditors,  Messrs.  Cooper  and  Smallfield,  were  reappointed,  aj 
a  vote  of  thanks  accorded  to  them  for  their  audit  of  the  half-yeai 
accounts. 

Complimentary  votes  were  also  passed  to  the  directors,  and  to  tl 
managers  and  other  ofiicers  of  the  corporation,  and  the  meeting  thi 
separated. 


ENGLISH  AND  FOREIGN  CREDIT  COMPANY,  LIMITED. 

Thb  first  general  Ineetinff  of  this  company  was  held  on  the  6th  Febnuu 

at  the  London  Tavern,  mx,  George  Sheward  in  the  chair. 

The  following  report  and  statement  of  accounts  were  read : — 

"  The  directors  of  the  English  and  Foreign  Credit  Company,  Limite 

have  much  pleasure  in  meeting  the  shareholders  and  in  laying  befo] 

them  the  result  of  the  Companps  operations  from  the  commencement  < 

business  until  31st  December,  1864,  a  period  of  a  few  days  over  si 

^months.  After  allowance  being  made  for  the  preliminary  expenses,  and  all 


Digitized  by  VjOOQ IC 


ujlish  and  Foreitjn  Credit  Company, 


369 


all  current  liabilitiea,  and  for  rebate  (£556.  17«.  lOrf.) 
ons,  there  remains  a  balance  of  £5,830.  Os.  7d.,  which 
le  to  employ  in  the  payment  of  a  dividend  of  5s.  per 
sorb  £3,5o3.  5.^.,  and  to  carry  the  balance,  £2,282.  15s. 
[rear  18(35,  showing,  with  rebate,  £2,839. 13s.  bd,  at  the 
Qts.  Although  by  the  articles  of  association  one-third 
5  should  retire,  yet  as  this  is  the  first  opportunity  of 
tuents,  they  place  the  whole  of  their  seats  at  the  dis- 
bolders,  but  offer  themselves  for  re-election.  The 
r  and  W.  H.  Notman,  Esqrs.,  likewise  present  them- 


Balance-sheetf  Blst  December,  1864. 
13  shares  at  £5  £71,065;   less  arrears 
r  sums  due  on  current  accounts,  and  all 


er   annexed  statement :— Gross   profits 
less  disbursements  £4,106.  lOs.  6d.     ... 


nts,  securities,  &c. 


fit  and  Loss  Account,  December  31,  1864. 

ilent,    advertising,    stationery,  salaries, 

ices  and  all  charges  

s — Advertising,    registration,  solicilors* 
rges  connected  with  the  establishment  of 


ission,  interest,  &c.,  £10,499.  8<.   llrf.  ; 
w  account  £556.  17*.  lOd.  


£69,015     0    0 

63,058    8     5 
656  17  10 


5,836 

0    7 

£138,466 

6  10 

£6,113 

3 

132,349 

11     8 

14     4 

0  10 

£138,466 

6  10 

£2,258     6    7 


1,848     3 
5,836     0 

11 

7 

£9,942  11 

1 

£9,942  11 

1 

£9,942  11 

1 

£5,836     0 

7 

ion  of  Balance  at  Credit  of  Profit  and  Loss  3lst  December^ 

1864. 
ihare  on  14,213  shares,  being  at  the  rate 

er  annum £3,553     6    0 

w  profit  and  loss,  1865     2,282  15    7 

£5,836    0    7 


29 


Digitized  by 


Google 


870              London  Mercantile  Discount  Company, 
Balance       £5,83i 


Balance  at  credit  of  new  profit  and  loss,  1865 


£5,83 

£2,28 


The  Chairman  said  he  had  little  to  add  to  the  report,  but  that  t 
gress  they  had  made  was  very  satisfactory.  When  they  made  the  1 
they  had  entered  into  engagements  a  little  beyond  their  streng 
there  were  three  courses  open — amalgamation,  which  was  disadvan 
to  any  company  when  under  difficulties,  as  it  frequently  involved  a 
interest,  and  even  of  part  of  their  capital ;  the  next  expedient  i 
renewal  of  the  securities,  and  the  directors  thought  it  better  to  ] 
money  in  the  pockets  of  the  shareholders  than  any  one  else's  ;  i 
last  course  was  liquidation,  and  that  could  not  be  done  without 
The  directors,  therefore,  consulted  some  of  the  largest  shareholde 
agreed  with  the  directors  that  the  most  advisable  course  would  be  i 
a  call,  and  so  divide  the  profits  amongst  the  shareholders.  Som< 
holders  were  no  doubt  dissatisfied  with  the  market  price  of  the 
They  must  recollect  that  to  the  men  who  bought  these  shares  as  an 
ment  the  market  price  was  a  matter  of  no  importance ;  he  rather 
to  the  dividends.  As  to  amalgamation,  they  would  be  willing  t< 
gamate  if  it  was  with  such  a  company  as  clearly  to  improve  their  p 
but  this  company  was  not  being  hawked  on  the  market  for  that  \ 
He  moved  that  the  report  be  adopted. 

The  motion  was  seconded. 

Mr.  Hart  said  the  thanks  of  the  meeting  were  pre-eminently  du< 
directors  for  the  manner  in  which  they  had  conducted  the  affaire 
concern,  and  he  had  the  fullest  confidence  that  they  would  have  a  s 
tory  future. 

After  some  conversation  the  report  was  adopted. 

The  following  gentlemen  were  elected  directors  for  the  ensuing  i 
Messrs.  G.  Sheward,  Joseph  Bray,  James  Hendrey,  Charles  E.  JM 
Forrester,  R.  B.  OiJseley,  Harrison,  J.  Stenhouse,  and  C.  B.  Town 

The  auditors  were  re-elected,  and  awarded  £25  each  for  their 
services,  and  the  meeting  terminated  with  a  vote  of  thanks  to  th< 
man  and  board  of  directors. 


LONDON  MERCANTILE  DISCOUNT  COMPANY. 

The  first  ordinary  general  meeting  of  this  company  took  place  on 
February,  at  the  London  Tavern,  Bishopsgate  Street ;  Mr.  Georg 
mingham  in  the  chair. 

The  report  (which  comprehended  only  ten  months'  working,  tl 
pany  having  commenced  busineas  on  the  1st  of  March)  stated! 
shareholders  would  observe  that  "  overdue  bills"  were  taken  as  a  s 
item  from  "  bills  discoimted,"  and  after  a  most  careful  examinatioi 
former,  made  by  a  committee  of  the  directors,  assisted  by  the  mi 
directors,  they  had  been  estimated  at  an  amount  under,  rather  tha 
the  sum  which  they  might  reasonably  be  expected  to  realise.  Dui 
first  six  months  of  the  company's  operations  a  profit  was  made  wh 
encouraging  to  the  directors ;  but  the  monetary  embarrassmente 
last  half-year,  and  the  numerous  commercial  failures  which  hac 


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ondon  Mercantile  Discount  Company,  371 

aflfected  the  London  Mercantile  Discount  Company,  in 
lany  other  establishments  of  a  similar  character.  The 
Drs,  acting  with  a  prudence  which  the  board  could  not  but 
jd  their  operations  during  the  late  commercial  crisis  ;  and 
•ption  of  this  course  necessarily  lessened  the  amount  of 
night  otherwise  have  been  done,  the  directors  feel  con- 
out  such  exercise  of  caution  the  losses  might  have  been 
1.  The  directors  regretted  having  in  their  first  year  to 
m  for  losses,  but  bearing  in  mind  the  very  exceptional 
past  half-year,  the  commercial  crisis  which  had  been  gone 
I  frequent  fluctuations  of  the  value  of  money,  they  thought 
ratulate  the  shareholders  that  the  loss  was  not  more,  and 
g  allowance  for  bad  and  doubtful  debts  the  balance  carried 
ixt  year's  account  was  only  £2,978.  VJs.  bd.  The  directors 
all  confidence  in  the  future  working  of  the  company  :  there 
■  profitable  business  doing ;  and  from  the  valuable  con- 
3d  by  the  company,  this  was  capable  of  being  greatly 
employment  of  additional  capital ;  they  therefore  fully 
L  they  next  met  their  shareholders  to  present  a  much  more 
ment. 

,  in  moving  that  the  report  be  adopted,  observed  that  the 
uch  pleased  to  meet  the  shareholders  on  this  occasion,  and 
lem  regarding  the  position  and  prospects  of  the  company, 
d  that  they  had  sacrificed  their  capital,  and  that  that  result 
[  at  by  reason  of  their  having  embarked  in  undertakings 
d  abnormal  character.  He  was  anxious  to  take  the  present 
ontradicting  that  statement,  and  to  assure  those  who  felt 
)  subject  that  the  loss  they  had  sustained  arose  entirely 
id  trepidation  which  seized  the  public  mind  last  year  in 
ney  market.  So  great  was  the  feeling  of  doubt  and  sus- 
it  the  metropolis  that  it  waa  not  to  be  wondered  at  that  a 
n  like  this  shoidd  have  suftered  from  the  causes  which 
Ider  ones.  They  had,  however,  benefited  much  by  the 
•udence  of  their  managing  directors,  Messrs.  Wormsley  and 
.ness  they  had  purchased  on  advantageous  terms,  the  high 
that  firm  being  well  known  in  the  city  of  London.  The 
w  given  the  shareholders  a  fair  and  intelligible  balance- 
nest  exposition  of  their  affairs ;  and  that  was  all  that  they 
:pect  in  a  document  of  this  nature.  The  managing  direc- 
at  they  had  not  a  more  prosperous  balance-sheet  to  present 
Y  were  fully  aware  of  the  interests  which  operated  against 
regard  to  the  loss  they  had  sustained,  he  submitted  that 
ill.  Supposing,  however,  it  had  been  much  larger,  the 
lot  have  been  alarmed  or  intimidated,  because  they  knew 
sticity  in  the  company  wliich  would  secure  them  against 
of  ill  luck.  The  directors  not  only  had  made  the  arrange- 
uded  to  with  Messrs.  Wormsley  and  Burt,  but  they  had 
ae  business  of  the  British  Reversionary  Company,  which, 
circumstances,  would  have  cost  the  sliareholders  a  great 
money  to  procure ;  and  a  great  portion  of  their  capital 
xpended.  In  the  future  they  would  all  have  their  fair 
►sperity  which  it  was  hoped  that  good  times  might  bring ; 
,mestly  hoi>ed  that  when  they  next  assembled  they  should 


Digitized  by  VjOOQ).C 


372 


Mercantile  and  Exchange  Bank. 


be  able  to  meet  their  co-shareholders  with  more  smiling  faces  anc 
etieouraging  cheer  than  at  the  present  moment. 

A  long  £8cas8ion  ensued,  in  the  course  of  which  certain  of  th 
holders  took  exception  to  the  policy  pursued  by  the  directors  in 
cba.se  of  the  business  of  Messrs.  Wormsley  and  Burt,  and  of  khi 
British  Reversionary  Company, the  amount  described  in  the  balai 
as  Imving  been  paid  for  those  businesses  being  £26,000. 

The  Chairman  explained  that  the  directors  had  acted  under  circui 
which  they  felt  would  be  for  the  ultimate  advantage  of  the  compa 
as  rcj^arded  Messrs.  Wormsley  and  Burt,  the  arrangement  with  t 
wan  made  upon  the  understanding  that  in  the  event  of  the  transac 
reali»iug  the  expectations  of  all  parties  a  portion  of  the  purchas 
Bhoiilil  be  returned,  and  Messrs  Wormsley  and  Burt  had  accordi 
fund  Of  1  upwards  of  £11,000;  so  that  the  company  was,  in  fact,  pbi 
comnAratively  easy  position. 

Au  amendment  was  then  moved  by  Mr.  Addison,  and  seco] 
Mr^  Zuccani,  to  the  effect  that  the  report  be  not  received,  and  thai 
wiittee  be  appointed  to  inquire  into  the  affairs  of  the  company. 

V]Kin  this  a  further  discussion  took  place  :  and  it  was  contended,  i 
DthtT  things,  that  the  board  of  directors  required  stronger  assistai 
gentloraen  connected  with  the  mercantile  interests  than  they  at 
enjoyed.  The  directors  having  expressed  their  perfect  willingness 
from  their  position  if  requested  to  do  so,  or  to  strengthen  their  r 
iti  any  manner  that  might  appear  most  expedient,  the  amendment  i 
jiKitLiy  withdrawn,  and  the  report  was  received  and  adopted.  The 
tlir*x  tors* and  auditors  were  then  re-elected. 

A  vote  of  thanks  was  passed  to  Messrs.  Wormsley  and  Burt  i 
lint i ring  attention  to  the  interests  of  the  company,  and  to  the  cl 
for  the  satisfactory  manner  in  which  he  had  discharged  the  dutie 
day. 

A  question  was  raised  as  to  whether  the  directors  should  be  remn 
for  thi^r  services,  but  it  was  agreed  that  this  point  should  be  defe 
the  present. 

Tlia  meeting  was  then  made  special,  for  the  purpose  of  making 
practical  alterations  in  the  articles  of  association,  including  the  pa 
a  resolntion  that  it  is  advisable  that  each  share  of  £50  with  £ 
thereon,  shall  be  divided  into  two  shares  of  £25  each,  with  £5  paid 
Bhar^^  and  that  the  board  be  requested  to  take  the  requisite  steps 
puriioBe,  under  article  9  of  the  articles  of  association.  Kesolutions 
thefie  objects  in  view  were  agreed  to,  and  the  business  terminated. 


MERCANTILE  AND  EXCHANGE  BANK. 

The  second  annual  meeting  of  the  shareholders  of  this  bank  was  1 
the  8tb  February,  at  the  new  oflaces,  Castle-street,  Liverpool ;  M 
Forwood  in  the  chair.  Among  the  other  gentlemen  present  x\  <  re 
K.  W.  Ronald,  Francis  Boult,  Arnold  Baruchson,  Joseph  Kir  then, 
P.  Bowring,  Wm.  Lucas  Merry,  John  T.  Lawrence,  and  Charles  Sa 
directors ;  Geo.  M.  Brown,  general  manager ;  William  Brown ^  in; 
(ilasgow ;  George  Haigh,  solicitor  to  the  company  ;  and  H.  BsointT,! 
to  the  oompany ;  and  amongst  other  shareholders  the  following  :— ^ 
Lionel  K.  Ronald,  John  Bigham,  A.  P.  MacEwen,  R.  S.  Deaiie,  J.  8 
Wm.  M'Gill, Thomas  Carey,  J.  Smethurst,  J.  W.  S.  May,  John  Gj 


Digiti 


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Mercaniile  and  Exchange  Bank,  373 

.  H.  Syeni,  R.  Nicholson,  Jaines  Marshall,  T.  H.  Boweu, 
,  J.  A.  Hall,  A.  C.  Browu,  Henry  Thompson,  William 
1  Kendall,  Thos.  Poole,  R.  H.  Coddington,  T.  S.  Todd, 
be,  G.  E.  Taunton,  Geo.  Chamberlain,  Geo.  M'Corquodale, 
lett  Joseph,  J.  H.  Yates,  W.  T.  Roper,  R.  Hemingway, 
.  Smythe,  John  Curtis,  Wm.  Hill,  G.  K  Black,  Edward 
.m,  Andrew  Pixtou,  C.  F.  Sise,  Edward  Young,  John 
rVhite,  Dr.  Edwards,  Wm.  Elam,  H.  F.  Fenton,  Thomaa 
aypule,  Ronald  Bridgett,  Thomas  Callan,  Thos.  Holgate, 
a  Satterhcld,  John  Palk  Fox,  Wm.  Wardle,  Hy.  Dobson, 
Holmes,  G.  H.  Wilkinson,  Hy.  Peploe  Forwood,  Robert 
aner,  A.  R.  Strickland,  T.  ISinks,  T.  Binks,  jun.,  J.  Gates, 
r.hu  King,  P.  H.  Holzl)erg,  W^  L.  Bankes,  H.  Hyatt,  John 
erton,  J.  M.  Wilson,  Edward  Burton,  Henry  Lovatt,  and 

said  that  before  proceeding  to  the  most  important  busi- 
he  would  just  mention  to  them  that  the  directors  had 
the  press  to  that  meeting.  They  were  aware  that  some 
of  a  similar  kind,  considering  that  their  annual  meet- 
igs  of  the  shareholders  who  were  partners  in  a  common 
did  not  think  it  necessary  to  have  reporters  present, 
isactions  were  between  the  shareholders  who  were  sum- 
the  meetings  and  the  customers  of  the  bank  who  had 
The  directors  of  that  company,  however,  had  never  de- 
determination  to  have  the  press  present.  He  thought  it 
ry  measure,  because  they  knew  that  on  the  wings  of  the 
1  the  report  of  that  meeting  would  be  carried  to  the  most 
3f  the  country,  and  might  be  rea^l  in  every  commercial 
kingdom :  and  he  must  say  of  the  press  generally  in 
might  be  an  exception — that  they  were  at  all  times  ready 
►urage  every  local  enterprise,  and  to  promote  the  beat 
particular  institutions  of  which  that  company  formed 

of  the  Chairman,  Mr.  Brown  read  the  notice  convening 
5  proceedings  of  the  previous  general  meeting  of  the 
ng  been  confirmed,  and  the  seal  of  the  compivny  affixed 
proprietors,  the  following  report  of  the  directors  was 
nt  of  accounts  being  taken  as  read  : — 
beg  to  annex  a  balance-sheet  of  the  bank's  operations  for 
ing  31st  December,  1864.  The  period  over  which  this 
las  been  marked  by  an  intense  monetary  pressure,  and 
the  value  of  the  great  staple  articles  of  import,  so  rapid 
occasion  numerous  meravntile  failures  here,  in  London, 
Several  of  the  customers,  suffering  heavUy  from  these 
pon  the  bank  considerable  loss,  which  was  increased  by 
Lsactions  of  the  late  London  manager,  and  further  aggra- 
de at  a  period  when  financial  pressure  was  most  intense, 
iden  and  unexpected  difficulties  in  the  way  of  the  bank's 
ery  harassing  and  trying  character.  Happily  these  diffi- 
surmounted,  and  that  without  resorting  to  the  proprie- 
diiring  the  crisis.  The  gross  earnings  of  the  bank  for 
B  £35^08.  158.  9(i.,  showing  a  satisfactory  increase.  On 
le  directors  regret  that,  from  the  causes  already  referred 


Digitized  by 


yGoogle 


374 


Mercantile  and  Exchange  Bank. 


to,  the  bad  debts  have  exceeded  the  amount  of  the  net  Drofits,  as  ^ 
setm  by  the  details  in  the  balance-sheet ;  and  after  consiaering  witl 
professional  auditor,  Mr.  H.  W.  Banner,  the  position  of  some  ao 
stili  more  or  less  doubtful,  they  think  that  the  sum  of  £S0,000,  ente 
the  debit  of  profit  and  loss,  may  possibly  be  required  to  provide  i 
further  deficiency.  With  the  valuable  business  of  the  bank,  howe^ 
iieeils  only  the  continued  active  co-operation  of  the  influential  body 
Hhareholders  and  constituents  to  ensure  its  future  prosperity.  The  ar 
ipi'uts  with  the  London  Bank  of  Scotland,  although  not  yet  complet< 
j>rofpe8sing  to  an  early  adjustment.  Agreeably  with  the  articles  of 
fiction,  the  directors  retiring  are  Mr.  W.  L.  Merry,  Mr.  Baruchso 
Mr.  Ronald,  who  being  eligible,  offer  themselves  for  re-election,  'h 
South  all,  having  left  Liverpool,  has  resigned  his  office  as  director, 
i^h^reholders  wul  have  to  elect  auditors  for  the  ensuing  year,  and  y 
anked  to  appoint  H.  W.  Banner,  Mr.  George  M^CorquodaJe,  and  Mr 
Hickie  (of  the  firm  of  Hickie,  Borman  and  Co.,  London),  the  last-: 
gentleman  in  place  of  Mr.  Charles  Sidgreaves,  who  has  resigned  that  c 


Dr. 


Liabilities  and  Assets^  Sift  December^  1864. 


Capital  account— £10on  20,000  shares, first  is8ue,£200,000;  £10 
nri  20,000  shares,  second  issue,  £200,000— £400.000  ;  less 
cnlls  unpaid  £2,817.  10«.— £397,182.  10«. ;  £2.  10«.  on 
1»380  shares  (taken  up  of  the  proportion  of  the  40,000 
iihares  created  by  resolutions  of  meetings  of  5th  and  22nd 
July,  1864)  £3,450 

Amount  due  on  current,  deposit,  and  other  accoants 

,t  If  acceptances  of  the  bank 

llebfite  account      ,*, 


£400,632 

.     1,369,952 

.       428,614 

3,604 

£2,202,803 


Or. 

Casl)  at  head  office  and  branches,  at  Bank  of  England  and  at 
call       

Bilifi  of  exchange,  current  and  on  hand,  loans  to  customers, 
and  other  securities 

New  hank  premises,  fittings  and  furniture  at  liverpool,  Lon- 
don, and  Glasgow,  stamps,  &c.       ...  

Balance  of  profit  and  loss 


£117,698 

2,009,468 

44,299 
31,837 

£2,202,803 


Prqfit  and  Loss  Account  for  the  Half-year  ending  Zlst  December,  18( 

Dr. 
Current  expenses — Cost  of  management,  directors*  fees,  rent, 

&c.,  at  the  head  office  and  branches  

Rebitc  on  bills  not  due,  at  6  per  cent *. 

Written  off  for  bad  and  doubtful  debts \\\ 

Contingencies  yet  to  mature,  as  per  report,  estimated  at     .'.! 


Balanca 


£12,960 

8,604 

88,483 

30,000 


£135,047 
£31,337 


Digiti 


ized  by  Google 


Mercantile  and  Exchange  Bank,  375 


t  of  profit  and  loss  account,  30th  June,  1864  £5  19  3 
68,595  11  4 

t  December,  1864        35,108  15  9 

•••         •••         •••         •!•         ..»         .••         ..•  31,337  13  5 


£135,047  19 

9 

Reserve  Fund  Account. 
•ed  to  profit  and  loss  account 

...       £68,595  11 

4 

£68,595  11 

4 

ne,  1864 

from  I^ondon  bank  of  Scotland 
i  on  new  shares           

...       £43,890  11 

21,945     0 

2,760     0 

4 
0 
0 

£68,595  11 

6 

1  then  said  it  was  his  business  to  move  that  the  report  just 
rith  the  statement  of  accounts,  be  confirmed  and  adopted. 
^  so  he  thought  he  need  scarcely  assure  the  shareholders 
wras  a  painful  duty  which  the  directors  had  in  hand  to 
m  any  report  which  did  not  show  a  profitable  working  of 
'  the  period  it  embraced,  but  rather  the  reverse.  It  was 
more  unsatisfactory  to  the  shareholders  than  it  was  to 
jtors.  The  wish  and  desire  and  anxiety  of  the  directors 
se  for  the  shareholders  and  for  themselves  a  profit  which 
in  successful  in  doing  for  the  last  half-year,  and  it  was  to 

great  regret.  In  starting  a  new  bank  the  directors,  in 
1  other  parties,  had  had  something  to  learn,  and  they  had 
!e.  The  trade  had  not  been  so  satisfactory  as  could  have 
he  report  embraced  the  transactions  of  the  bank  from  the 
md  they  would  be  aware  that  their  next  balance-sheet 
annual  meeting,  and  would  close  up  to  the  Slst  December, 
lought  that  it  was  correct  that  they  should  consider  the 
nk  in  reference  to  the  whole  of  the  work  of  the  past  year — 
)rking  of  the  half-year  embraced  in  that  report,  then  at 
ng  of   1864.    Looking  at  it  in  that  point  of  view,  they 

that  on  the  19th  August  they  met  them  with  a  statement 
of  the  half-year  ending  30th  June  was  £1G,7T2.  He  told 
calculating  on  the  profits  which  that  bank  had  earned, 
ik  of  Scotland  had  to  pay  them  a  bonus  for  a  certain 
of  £40,000.  Another  contingency  arose  from  the  amalga- 
tve  them  another  £10,000  on  their  premiums,  so  that  the 

to  £50,000.  That  bonus  was  distributed  among  the 
the  20th  of  August,  when  the  shareholders  had  divided 
e  profits  of  that  half-year,  the  £16,072  and  the  £50,000 
he  Scotland  bank.    At  that  time  the  directors  were  also 

off  the  whole  of  the  preliminary  expenses  left  in  the 
ng  to  £3,745,  so  that  in  fact  the  amount  of  £70,000  had 
;he  bank.  They  then  came  to  the  position  of  aftairs  for 
r,  and  they  found  that  the  gross  earnings  of  the  bank  up 
aber  were  £35,108.  15s.  9(i.  If  they  deducted  the  expenses, 
to  £12,960,  and  the  rebate  on  bills  not  due,  at  6  per  cent.. 


Digitized  by  VjOOQIC 


376 


Mercantile  and  Exchange  Bank. 


£3,604,  they  would  see  that  the  annual  working  of  the  bank  for  the  half 
year,  after  deducting  all  the  debts,  was  £18,544.  The  net  earning 
amounted  to  £85,216.  They  had  to  set  against  that  for  the  preeeDt  half 
year  an  amount  of  bad  debts,  according  to  the  balance-sheet,  aniountini 
to  £88,000.  So  that  the  bad  debts  written  off  rather  exceeded  the  amoun 
of  profit.  Proceeding  through  the  report  just  read,  he  had  to  make  a  ie^ 
observations  on  it  as  well  as  on  the  balance-sheet.  The  directors  statec 
that  the  period  over  which  the  report  extended  had  been  marked  by  ai 
intense  monetary  pressure.  Every  one  knew  that  that  pressure  had  beei 
a  very  severe  one.  It  had  been  more  than  usually  severe.  The  averagi 
rate  of  the  Bank  of  England  for  the  last  year  was  equal  to  7^  per  cent, 
and  for  the  half-year  over  which  their  trading  had  not  been  quite  st 
prosperous  as  they  could  have  wished,  the  average  rate  had  been  ver] 
nearly  within  a  fraction  of  "8  per  cent.  When  they  started  that  bank  ii 
1863  the  average  rate  for  that  year  was  only  4|,  and  during  the  year  o 
crisis,  1857,  which  brought  down  many  commercial  houses,  and  causec 
great  disaster  in  the  country,  the  average  rate  of  interest  was  only  7  pe^ 
cent.,  so  that  they  had  had  a  higher  rate  of  interest  for  the  last  hiJf-yea: 
than  during  that  pleriod  of  most  severe  pressure.  They  were  aware  thai 
it  had  been  stated  from  that  chair  that  the  directors  of  that  bank  did  noi 
suppose  that  a  high  rate  of  interest  wa£  conducive  to  the  progress  of  loca 
banks.  In  that  respect  they  differed  from  the  London  banks,  where  the} 
got  very  large  deposits  at  low  rates,  and  therefore  the  high  rate  of  interest 
at  which  they  lent  out  their  money  was  very  good  for  the  purpose  of  divi- 
dends. But  high  rates  of  interest  in  local  banks,  where  enterprise  waf 
strong,  gradually  diminished  the  means  of  their  customers,  for  taking 
6  per  cent,  as  the  normal  rate,  they  would  have  in  addition  to  that  3  pei 
cent.,  which  would  be  a  very  serious  reduction  from  the  profits  of  every 
man  who  traded  in  that  country.  Then  the  pressure  had  been  particu- 
larly oppressive  in  those  directions  where  they  had  opened  up  their  bank- 
ing operations.  It  had  affected  most  peculiarly  the  produce  market.  To 
that  they  had  made  special  reference,  and  they  thought  in  regard  to  Liver- 
pool, London,  and  Glasgow,  it  would  be  obvious  to  every  man  who  had 
been  in  trade  that  the  produce  markets  there  had  been  most  seriously 
affected  by  the  pre?=sure.  Take,  for  instance,  one  article  in  which  the  cus- 
tomers of  that  bank  had  had  considerable  dealings— sugar.  On  the  15tfa 
June  the  average  price  of  two  particular  classes  of  sugar— Manilla  and 
Brazil— was  2Ss.  6d. ;  on  the  15th  October  it  had  fallen  from  28^.  6d.,  afl 
the  medium  price,  down  to  18^.  6d.,  or  a  loss  of  lO^.  per  ton.  The  stock 
in  Liverpool  in  October  was  15,000  tons,  the  stock  in  the  country  being  no 
less  than  226,000  tons.  They  must  be  aware  how  seriously  that  would 
have  affected  all  importations  of  sugar.  Then,  again,  let  them  take  three 
descriptions  of  cotton — Bengal,  China,  and  American.  On  the  15th  July 
it  was  22(2. ;  on  the  15th  October  it  was  only  14^(i.,  or  an  average  decline 
of  7f  (2.  per  lb.  Egyptian  cotton,  which  was  also  dealt  in  by  some  of  iheir 
customers,  declined  in  the  same  period  from  29(i.  to  18d.  a  lb.  The  stock 
in  Liverpool  at  the  time  was  112,000  bales.  Again,  let  them  take  the 
price  of  crain  in  October,  1863,  and  October,  1864.  They  would  find 
there  had  been  a  decline  of  from  10a.  to  lis.  They  all  knew  the  im- 
mense value  of  the  grain  trade,  and  the  immense  stock  that  was  held 
to  their  account,  and  they  could  therefore  judge  how  far  trading  in 
that  article  miffht  have  been  unsatisfactory.  Without  going  further 
into    details,    &ey    would   all  see    it    had    been    a    very  ezc  -'-'^'"' 


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Mercantile  and  Exchange  Bank,  377 

J  parties    who    traded   in   LiverjKX)!   and   the   seaports.  , 

y  much  pain   and    reluctance  that  the  directors  had  to  ' 

ortunate  death,  and  the  cause  of  it,  of  their  Loudon 
V'illiams  committed  suicide  on  the  18th  of  Octo])er,  and  i 

.  please  to  refer  to  the  state  of  the  money  market  on  that  \ 

Duld  see  that  previous  to  that  tiuje  the  intense  monetaiy  ', 

jduced  a  revulsion  in  all  produce,  and  that  though  the  r 

per  cent.,  it  was  very  difficult  for  commercial  men  to  keep  ; 

It  did  not  therefore  need  any  extraneous  difficulties  to  ' 

unfortunately  at  that  time  they  had  to  meet  the  extra 
le  suicide  of  their  London  manager.     To  tell  them  of  the  [ 

jrsonal  trials  of  each  of  the  directors  to  carry  the  ban  k 
occasion — to  tell  them  what  ellect  that  suicide  had  on  all 
credit  which  with  great  effort  they  had  opened  up  on  the  ' 

1  them  how  that  event  was  made  use  of  by  parties  inimicjd 
I  that  bank — to  tell  them  how  the  channels  of  traffic  were 
on  the  Cf^tinent,  but  at  home — to  tell  them  how  it  aifected 
era  and  shareholders,  he  should  have  to  go  through  a  | 

Lild  elicit  for  the  directors  eveiy  sympathy  at  their  hands, 
al  was  a  severe  one.  The  removal  instantly  on  the  an- 
hat  suicide  of  the  valuable  business  which  they  were 
n  London  and  Glasgow  wjis  a  matter  which  he  need  not 
it  was  very  rapid.  The  removal  of  their  deposit  account 
er  difficulties  which  the  directors  had  to  imdergo.  He 
3n  deposit  account  just  within  a  month  of  that  time  was 
X  cent.,  and  on  the  current  balance  of  50  per  cent.  It 
1  difficulties  as  those  that  the  directors  had  to  bring  that  I 

resorted  to  making  a  call  upon  them,  the  directors  would  ■ 

sir  pressure;  and  the  question  was,  whether  they  should 
ir  own.     They  were  happy  to  say  that  they  had  brought  i 

lirough  all  those  difficulties,  and  they  hoped  they  were 
r  for  that  period  of  prosperity  which,  with  the  assistance 
;rs,  he  was  sure  they  would  yet  attain.  (Applause.)  There 
dded  another  difficulty,  about  which  they  would  want 
ley  were  perfectly  aware  that  the  directors  had  made 
amalgamate  their  bank  with  the  London  Bank  of  Scot- 
lave  been  expected  that  as  they  had  paid  their  bonus,  and 
not  against  the  reserve  fund,  the  directors  would  have 
irticularly   after  the  last  half-yearly  meeting,  to  have 

arrangements.  But  the  suicide  of  their  manager 
Lculty,  and  the  directors  of  the  London  Bank  of  Scot- 
3efore  completing  that  arrangement.  The  result  was, 
little  controversy  and  some  little  contesting  of  their 
the  directors  of   the   Mercantile    and    Exchange   Bank  \ 

he  satisfaction  of  the  London  Bank  of  Scotland,  that 
anager  should  himself  go  over  the  London  accounts  of 

also  the  Liverpool  accounts  and  the  Glasgow  ac- 
inuer  he  chose,  and  satisfy  himself  as  to  the  position  of 
,  showed,  at  all  events,  the  opinion  which  the  directors 
eir  trading.  He  was  happy  to  say  that  after  the  audit 
if  he  might  so  call  it,  carried  out  by  gentlemen  who  were 
iterests  of  their  shareholders  that  thoy  should  not  enter 
Q  to  which  any  risk  might  be  attached,  they  had  come  to 
I  to  carry  out  that  amalgamation  as  speedily  as  possible. 


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Mercantile  and  Exchange  Bank. 


That  muiit  be  Batisfactory  to  the  shareholders.  It  would  also  bI 
another  of  the  difficulties  that  circumstance  had  thrown  in  their  ^ 
was  happy  to  say  to  them  that,  although  he  had  occasion  just  noi 
to  the  removal  of  deposit  and  current  accounts,  the  confidence  in 
was  happily  returning ;  that  the  number  of  their  accounts  was  in 
that  in  one  item  alone  they  had  a  very  large  increase  from  Not 
June ;  the  amount  of  one  of  those  items  was  just  double  in  Jam 
it  was  in  November.  They  were  also  continually  adding  valuable 
to  their  bank,  so  that  by  the  energy  of  the  directors  and  their  c 
in  the  bank  they  were  brin^g  back  that  confidence  wl 
rudely  shaken.  It  might  be  well  for  him  to  say,  because  the 
had  been  asked  within  the  last  few  days,  that  with  regard  to  the 
of  Mr.  Williams  to  the  post  of  London  manager,  he  was  a  perfect 
before  his  appointment,  both  to  the  directors  in  Liverpool  and 
London.  They  advertised  for  a  manager  in  London  before  his  app 
and  they  had  many  applications,  but  Mr.  Williams  was  selected, 
self  made  personal  inquiries  in  conjunction  with  their  Liverpool 
about  him  at  other  banks  where  he  had  served  for  many  years,  anc 
a  good  character  for  him  as  to  his  capabilities  and  his  capa 
managing  the  bank,  and  it  was  upon  the  strength  of  that  th 
placed  over  the  bank  in  London.  He  might  say  that  the  London 
were  continually  informing  them  that  they  believed  Mr.  WUliai 
very  eflicient  man,  that  he  was  very  zealous  in  his  duties,  and  th 
prepared,  at  great  personal  sacrifice,  to  meet  every  requirement, 
diately  their  London  colleagues  heard  of  Mr.  Williams's  death,  t 
municated  with  them  by  telegrram,  to  the  effect  that  upon  an  inv( 
of  the  accounts  and  securities,  they  believed  the  affairs  of  the  b 
not  seriously  affected  by  his  death.  That  their  London  directors 
attention  to  the  business  of  the  bank  they  fully  believed.  Th< 
that  communication  was  made  known  on  the  Stock  Exchange  on 
October,  and  the  London  directors  believed^  until  circumstances 
that  such  would  be  the  position  of  affairs.  Unfortunately  it  dj 
that,  although  he  had  not  actually  taken  the  monev  of  the  bank  < 
till,  yet  by  a  system  of  adroit  bookkeeping,  he  had  disguised  severa] 
by  means  of  his  entries,  which  when  they  came  to  be  sifted  and  i 
did  not  represent  the  facts,  and  did  not,  in  some  cases,  represent 
viduals  mentioned.  (Hear.)  But  there  was  no  possibility  of 
that  at  the  time.  They  traced  their  heaviest  loss  to  that  circu 
their  London  directors  told  them  that  not  one-third  of  the  Lone 
could  be  ascribed  to  the  ordinary  trading  ;  the  rest  must  be  trao 
most  improper  transactions  of  the  late  London  manager.  Howe 
were  happy  to  say  that  they  now  knew  the  worst  of  the  matter. 
A  Shareholder — What's  the  amount  ?  (Hear.) 
The  Chairman — The  amount  to  be  wiped  off  for  bad  debts  wi 
a  fraction  of  £50,000,  not  more  than  a  third  of  which  the  Lond 
tors  said  was  attributable  to  the  ordinary  trading  business  of  \ 
the  remainder  being  attributable  to  the  late  London  manager, 
very  diflBcult,  no  doubt,  for  the  London  board  to  say  precisely  i 
been  the  sum,  but  in  judging  of  that  they  must  remember  that  tl 
the  loss(«  on  account,  as  the  directors  said,  of  the  difficulties  co 
on  the  rate  of  interest  they  had  to  pay  arising  from  the  same 
stance.    The  £18,000  profits  would  probably  have  been  largely  bv 

their  trading 

A  Shareholder — Was  there  no  security  with  the  manager  7 


Digiti 


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Mercantile  and  Exchange  Sank, 


S79 


— ^We  hmd  fteourities,  for  which,  of  oourw?,  the  auretiea  are 
ft  oertain  Becurity  which  was  oonsidertsd  by  the  directors 
siiffideiit  for  the  manager  to  give.    We  hare  that  to  oomo 

■ — ^Have  those  securities  been  realised  as  agaioat  this 
he  London  loss  was  £50,U0O,  do  you  hold  any  secnri- 
amoimt,  or  hare  they  been  realiaed ;  or  is  it  an  absolute 

, — It  is  an  absolute  loes,  written  off  in  the  account  of 
lebts. 

—That  is,  induded  in  the  £88,000  of  bad  debts. 

— ^Yes,     He  did  not  know  that  he  need  trouble  them  witli 

•vations  on  the   report,  nor  had  he  very  much  t<.)  say  iu 

)alance-sbcet,  but  he  thought  it  was  due  to  the  share- 

-lanatiou  should  be  made  by  him.     For  instaiioe,  it 

should  explain  the  large  item  of  £12,960,  ll^t.  7d. 

X  i^itiTeuce  to  that  item  he  had  first  of  all  to  state  that  it 

t  of  maDagement,  and  all  expenses  of  thj^t  description, 

mtf  and  charges  connected  with  the  London  branch  and 

ich,  aa  well  as  tho  heiid  crffices  and  some  snjuU  expenses 

heir  foreign  agencies.     So  that  these  were  the  expenses 

banlot.     He  need  not  go  through  the  whole  of  the  items 

ire.  but  he  might  say  that  it  embraced  an  increase  in  the 

-r  the  last  half-year  amounted  to  £448*     That  siim 

t  was  very  moderate,  although    it  largely  swelled 

rerious  half-year.     The  law  costs  for  the  previous 

Tlten  there  was  an  item  of  £270   for  travelling 

'     ^*  for  the  auditing,  which  had  been  most 

.1  crease  iu  that  item  of  £12,<X)0  arose  from 

js,     in  tiiu  previous  half-year  the  amoimt  debited  to  rent 

le    preaent  half-year  the  amoxmt  of  rent  amd  taxes  was 

A  upon  the  three  branches.     It  aroeo  from  this  circuni- 

\d  debited  the  bank  with  an  amount  fjf  rent  for  the  bank 

In  the  opinion  of  the  surveyor  it  would  let  for  in  the  ordi- 

!nt8.  That  would  be  the  course  they  should  follow  in  future. 

let!  the  amount  of  charges,  there  wiis  a  set-off  in  that  respect. 

le  prviffit^  of  the  bank  an  interest  of  5  per  cent,  on  the  cost  of 

It  would   be  satisfactory  to  them   to   know  that 

vcmi^^es  at  5  per  cent.,  and  putting  the  rent  of  the 

...  ...t^  there  would  be  a  profit  to  the  bank  of  £1,100  at 

,    year ;    and  that  item    uf    rent   would   be  still  further 

*^x  ]^^^l  let  somy  othtT  portions  of  the  premises,  for  which 

a  good  rent.     The  salaries  for  the  three  branches 

tiT  be  must  not  forget  the  branch  office  in  Biuy 

item  for  stationery  and  advertking,  amounting 

I  jee  were  set  down  at  £1,000,  and  he  could  only 

.i  and  his  oolleagiu^s,  that  if   the  shareholdera 

too  irr i\at  for  the  trouble  they  had  had,  they 

lause.)     He  did  not  know  that  there 

icet  that  recinired  to  be  l»rought  under 

liu  WiiJie^l  to  correct   some  ideas   that  were  pre- 

.  their  opening  a  forcdgn   exchange  business — that 

liangu;  mid,  in  fact,  that  it  brought  them  into 

:  irith    rkalcrs  of  exohungo    in  London.     That 


380 


Mercantile  aiul  Exchange  Bank. 


was  a  very  wrong  Dotion.  The  object  of  their  foreign  agency 
enable  parties  to  obtain  the  same  facilities  for  buying  and  sellL 
continental  bills  as  they  could  get  in  London.  (Hear,  hear.) 
been  a  source  of  profit  to  them  to  a  large  extent,  and  no  source 
He  should  be  very  sor^r  indeed  if  it  went  abroad  that  their  ( 
were  resorting  to  novel  measures  for  the  purpose  of  making  a  t 
tliem.  That  bank  was  now  in  connection  with  some  of  the  bei 
in  Europe ;  they  received  information  every  day  which  they  had 
at  considerable  cost  and  pains,  and  would  prove  very  protitabh 
shareholders.  (Hear.)  They  had  proceeded  with  their  New  Yo 
ness  with  every  care  and  precaution.  It  had  been  worked  pre 
there  had  been  one  or  two  bad  bills  in  connection  with  it,  but  th 
from  bad  produce.  They  were  included  in  the  £88,000  placec 
debit.  After  bearing  his  testimony  to  the  efficient  manner  in  w 
Glasgow  managers  did  their  duty,  the  chairman  said  he  believed 
remained  very  much  with  the  shareholders  to  do  their  part  in  j 
the  bank  to  attain  that  p4isition  they  all  desired  and  expected  i 
have  reached.  After  explaining  that  the  directors  thought  it 
place  on  the  debit  side  a  sum  of  £30,000  to  meet  contingencies, 
eluded  by  complimenting  the  directors  and  the  auditors  on  t 
excellent  manner  in  which  they  had  discharged  their  duties. 

A  Shareholder  asked  whether  a  continuous  audit  was  made,  or  a  p 
audit. 

The  Chairman  replied  that  it  was  a  continuous  audit,  in  the 
which  a  bank  account  could  be  so  audited. 

Mr.  Roland,  a  director,  having  seconded  the  adoption  of  the  re 
accounts, 

Mr.  Binks  (Birkenhead)  asked  whether  the  £30,000  was  the  ol 
of  one  individual  account  or  several  accounts. 

The  Chairman  replied  upon  the  whole  accounts  of  the  three  bai 

i'ustice  to  Glasgow  he  thought  he  should  say  that  he  did  not  th 
lad  to  put  down  a  single  contingency. 

Mr.  Binks  said  it  appeared  to  him  to  be  somewhat  similar  to  oi 
accounts  of  the  Alliance  Bank,  and  it  would  be  satisfactory  to  kn 
the  prospects  of  the  shareholders  might  be  in  that  account. 

The  Chairman. — I  think  we  have  twenty  or  thirty  accounts,  aoi 
and  some  small. 

A  Shareholder. — How  often  do  the  London  board  of  directors  n 
what  guarantee  have  we  that  the  things  which  have  happened 
occur  again  ?  Who  is  responsible  in  London  for  the  conduct  of  \ 
there  now? 

Dr.  Smythe. — How  is  the  loss  of  the  reserve  to  be  mi 
(Laughter.) 

The  Chairman  said  the  London  board  was  presided  over  \ 
directors,  who  were  all  of  them  daily  attendants.  Then  they  ha 
manager  acting  under  them  pro  Urn,  in  the  interests  of  that  ba 
soon  as  the  arrangements  of  the  London  Bank  of  Scotland  were  < 
they  should  have  to  appoint  an  agent  to  the  London  office.  Wit] 
to  the  reserve  fund,  they  hoped  to  make  it  up  by  the  profits.    (La 

Dr.  Smythe. — That's  a  pathetical  remark. 

Mr.  Bigham  believed  the  bank  to  be  in  a  perfectly  sound  st 
ready  to  go  on  and  prosper.  Still  there  was  a  great  deal  to  regre 
past,  and  much  to  blame.    He  thought  the  d^  of  association 


Digiti 


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Mercarifile  and  Eu.rhange  Bank.  381 

a  way  as  to  prove  acceptable  to  the  shareholders,  and 
hat  the  lawyers  who  drew  it  up  would  say  that  it  oon- 
j  wliich  ought  to  be  erased,  and  many  which  ought  to 
hoped  the  directors  would  make  the  deed  more  in 
)  deeds  of  old  companies  in  that  town.  In  no  deed  of 
nd  provijicial  banks  would  they  find  such  clauses  as 
he  deeds  of  tlie  new  companies.  One  of  the  clauses  in 
le  effect  that  the  directors  should  be  entitled  to  take  a 
y,  £4,000  per  annum — for  remuneration  without  asking 
shareholders.  He  was  sure  that  that  was  not  a  good 
.  (Hear,  hear.)  It  would  be  more  pleasant  to  the 
e  thfin  to  allow  the  directors  to  take.  It  would  not 
tiave  that  clause  altere<l,  and  there  were  others  of  a 
hat  could  be  reviseti.  He  did  not  see  any  reason  to 
ount  taken  by  the  directors  as  remuneration  for  the 
he  would  put  it  to  them  whether,  under  the  present 
would  be  politic  for  them  to  take  it.  He  wished  to 
iondon  directors  had  retained  their  share  of  the  £4,000, 
ere  prepared  to  make  the  same  olier  the  Liverpool 

Their  fees  are  not  included  in  the  £1,000. 
it  was  a  matter  of  taste  on  their  part,  but  he  thought 
politic  for  them  to  take  any  remuneration.  He  com- 
the  past  six  months  some  persons  connected  with  the 
iring  "  the  shares  on  the  Stock  Exchange.  So  long  as 
ition  behind  the  scenes,  and  msule  use  of  it  in  dis- 
le  b;uik  could  not  prosi)er.  He  thought  the  prospects 
8  good  as  any  in  the  town,  and  that  under  the  prudent 
^ement  of  their  chairmam  they  should  attain  that  posi- 
spired  after. 

k-anted  to  know  how  much  of  the  £2,009,468.  8*.  lid., 
exchange,  current  and  on  hand,  loans  to  customers,  and 
^ht  be  unnegotiable  securities. 

lat  in  the  reserve  fund  account  there  was  credited  the 
received  from  the  London  Bank  of  Scotland;  and  from 
report  he  saw  that  the  amalgamation  had  not  taken 
le  profit  and  loss  on  the  capitid  account  were  really  set 
D  that  had  been  lost  to  the  capital,  and  £21,000  which 
ti  the  reserved  fund  account. 

id  that  perhaps  it  would  be  saving  time  if  he  said  that 
0  to  the  reser\'^e  fund  from  the  London  Bank  of  Scot- 
red  from  that  bank,  and  whatever  might  be  their  posi- 
inount  of  reserve  fund  which  they  had  from  that  bank 
•eement  to  which  they  had  consented.  They  believed 
nk  of  Scotland  would  cany  out  the  amalgamation,  but 
not  the  money  was  in  their  hands, 
jase  the  amalgamation  does  not  take  place  that  money 
paid  back  again  ? 

L,  does  it  not  make  that  £31,000  into  £52,000  ? 
eplied   in    the  negative.       They  had  that  money  iu 
itors  had  rightly  placed  it  to  their  credit.     These  were 
would  ask  the  shareholders  in  their  own  interest  to 
They  had  no  reason  to  suppose  that  the  amalgama- 


Digitized  by  VjOOQlC 


382 


Liverpool  Financial  Association. 


tion  would  go  off.    The  bank  had  placed  in  their  hands  8e< 
amount  of  £71,000. 

Mr.  Kendall  asked  the  chairman  whether  the  directors  hac 
to  suppose  that  they  had  realised  the  extent  of  the  losses  oa 
Williams. 

Mr.  Bigham  wished  to  Icnow  if  the  directors  had  any  intenti< 
a  call.  (Hear.) 

Mr.  Thomson  pointed  out  the  desirability  of  that  bank  hav 
the  London  clearing-house. 

Mr.  M'Quean  said  that  although  he  came  to  the  meeting  wi 
pleasure  and  pain,  he  should,  after  the  veiy  lucid  statement  of  t! 
leave  the  room  with  feelings  of  great  satisfaction. 

The  Chairman,  in  reply  to  Mr.  Bigham,  said  the  alteration 
of  association  could  not  be  effected  without  some  difficulty,  ^ 
to  the  remuneration,  he  would  prefer  that  the  shareholders  i 
exactly  what  charge  was  made  by  the  directors,  so  that  they  c 
their  minds  upon  it.  In  answer  to  Mr.  Moss  he  said  there  wf 
gotiable  bills  in  the  £2,009,468.  He  believed  the  directoi 
utmost  of  the  losses  caused  by  Mr.  Williams.  With  regard  to 
of  a  call,  no  such  subject  had  been  before  the  board  at  all.  W 
to  the  suggestion  maae  by  Mr.  Thomson,  he  said  the  board  w^ 
glad  if  they  could  make  any  arrangements  by  which  they  coiil< 
to  the  London  clearing-house. 

The  report  and  statement  of  accounts  were  then  carried  ai 
tions. 

Mr.  Nicholson,  in  proposing  the  re-election  of  Mr.  W.  Jj. 
Baruchson,  and  Mr.  Bonald,  to  the  board  of  directors,  said 
were  any  persons  connected  with  the  bank  who  were  '^  bears ' 
they  were  got  rid  of  them  the  better. 

Mr.  Baruchson  said  that  since  June  last  he  held  100  shari 
100  at  10 1,  and  he  had  never  sold  them,  neither  did  he  intend  i 
he  could  get  the  same  amount  of  premium. 

The  Chairman  assured  the  shareholders  that  the  practice  to 
sion  had  been  made  b^  Mr.  Nicholson  and  Mr.  Bigham  was 
the  board,  and  they  should  most  rigorously  deal  with  the  cas< 
come  under  their  notice. 

The  motion  was  then  carried,  and  Messrs.  Banner,  M'Oor< 
Hickie  having  been  appointed  auditors,  votes  of  thanks  were 
the  chairman  and  board  of  directors,  and  to  the  auditors  an 
and  the  proceedings  terminated. 


LIVERPOOL  FINANCDLL  ASSOCIATION. 

The  first  general  meeting  of  this  association  was  held  on  the  9i 
in  the  rooms  of  the  Law  Association,  Cook  Street ;  WiUiam  T 
Esq.,  chairman,  presiding.     There  was  a  large  attendance  of  m 

The  Chairman  said  they  could  not  call  that  the  annual  nie( 
association,  because  it  was  not  twelve  months  in  existence ;  bi 
the  first  general  meeting  of  the  proprietors,  he  begged  to 
pleasure,  and  he  had  no  doubt  that  of  the  other  directors^  at  : 
shareholders  personally  for  the  first  time. 

Mr.  P.  B.  M'Quie  having  read  the  notice  calling  the  meeting 
the  report  of  the  directors  as  follows  : — 


Digiti 


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hiterpool  Financial  Association* 


383 


f  the  LiTerpool  Fbuincml  Association,  limited,  in  pre- 
df-yearly  balance-sheet,  ooogratmlatG  Uieir  pihareliolderfi 
lich  has  ati^ided  the  opemtionfi  of  the  oompany  fn>tn 
of  its  business  to  the  dXsi  of  December,  1864.  Ihtnng 
ve  steadily  kept  in  view  the  objects  for  wliich  the  com- 
d,  aa  set  forth  in  the  prospectus,  and  have  to  report 
eral  large  blocks  of  freehold  and  leasehold  property,  in 
ing  localities  in  the  town,  which  will  eventually  prove 
rable  profit,  and  even  now  yield  a  fair  return  in  their 
I  oonditioD,  The  directora  have  every  reason  to  believe 
le  properties  purchased  may  be  fairly  estimated,  in  the 
ount  considerably  greater  than  that  paid  for  them,  and 
a  large  but  not  divisible  profit  has  accrued  to  the 
rto  the  only  aoiirco  of  profit  has  been  from  the  tempc»- 
the  paid-up  capital.  Some  of  the  properties  purchaded 
ill  cash ;  and  advantageoua  terma  have  been  secured 
that  the  completion  of  the  purchase  shall  extend  over 
nd  the  pnrchaae>money  remain  at  a  low  rate  of  interu^t. 
Miheet,  therefore,  affords  no  complete  indication  of  the 
association,  which  time  and  opportunity  can  alone 
liroctora  have  pleasure  in  announcing  that  They  believe 
iold  to  be  in  every  way  sound*  Hereafter  it  may  be 
^end  the  operatious  of  the  association  without  having 
nd  the  tUrectors  are  preparetl  to  receive  deposits  for 
es  of  interest  to  be  agreed  upon,  and  to  issue  deben- 
ly  ooupoxia  attached,  oonstitutiug  a  first  charge  upon 
»ompany.  It  will  be  seeu  by  the  accounts  sent  here- 
ost  economy,  oonsisterit  with  judicious  management, 
in  the  administration  of  the  company's  affairs :  and 
<  f  the  o.>mpany  have  not  been  extended  by  means  of 
s  of  a  similar  character,  which  in  time  of  pnnic 
rital  til  financial  and  other  monetary  institutions, 
protit  and  loss  account,  and  securities  have  been  sub- 
uy  of  the  auditors,  and  their  certificate  and  rqiort  are 
aymc^t  uf  current  expenses,  rent,  salaries,  directors' 
v*  off  n  fair  proportion  ci  the  preliminary  ex]ieii«c«, 
5,426.  6j.  3^.  at  the  creiUt  of  profit  and  loaa 
-tvrs  recommoid  a  return  to  the  shareholders 
Ircii  uf  income-tax,  bemg  an  amount  equal  to  5  per 
u  the  paid  up  ctiViitjvl  of  the  company  for  thti  Invlf* 
^  '     '  '  a   balance  of  £893.  2«.  2d., 

transferred  to  tho  creiUt  of 
md  (as  providetl   by  article 
1  (to  be  dealt  with  at  a  future 
I  in-  ■  111  ■  M iL .^  ;u y  Messrs.  Ajuold Barucht*on  aud 
ble  for  re*^lecti<>n." 


)ecej 
I  of 


i^ih€€tt  made  up  to  December  3lff,  1664. 
xnrraACi, 


capiul»  25,000  shares  of  1*20 

.  .   ,VM  shfl-rcs  have  hccn  issued, 

n  share  has  Xmsti  called  np 


£06,796    0    0 


Digitiz| 


:I84 


Liverpool  Financial  Association. 


Deduct  arrears  of  call  on  Slst  December,  1864  on  account  of 
Ist  call  £165;  on  account  of  2nd  call  due  21st  January, 
18o5,  £29,079  ;  calls  on  25  shares,  Nos.  16,483  to  16,512, 
forfeited  by  resolution  of  the  board  dated  3rd  November 
£87.  10* 


Creditors — For  balance  owing  in  respect  of  properties  pur- 
chased ...         ...        •>•        ••>        •••         ••>        •••        ••> 

Shareholders — For  calls  in  advance  with  interest  to  date     ... 

Sandries— For  rates,  taxes,  and  sundry  accounts        

Unclaimed  allotment  deposit       

Reserved  fund— Amount  transferred  to  credit  of  this  fund  as 
provided  by  article  No.  24 

Ck)ntingent  fund — Amount  transferred  to  credit  of  this  fund 
to  meet  dentin gancies  

ProBt  and  loss  account — Balance  available  for  dividend 

Kebate  of  interest  on  carrent  loans      


29,; 

69,^ 

67,; 
1.' 


2.i 


£142,j 


Cr. 

Property  and  assets— Freehold  estates 
Leasehold  estates 


£76,( 
6,5 


Office  furniture  and  fixtures        

Debtors — For  loans  on  various  securities         

Sundries— For  rents,  interest,  &c 

Preliminary  expenses  £1,895.  10«.  6d.;  less  proportion  written 

ofr£379.  2j.  Irf.  

Cash  in  Mercantile  and  Exchange  and  North  and  South  Wales 

Banks 

Disputed  charges 

Cash  in  hands  of  nuinager  


£82,1 

1 

24,5 

( 

1{ 
32,1 


£142,£ 

Frqfit  and  Loss  Account,  for  the  Half-year  ending  the  3  ist  day  qf  Decern 
Dr. 


Current  expenses:  salaries,  directors'  fees,  &c. 
Balance 


£1,0 

3,8 

£4,8 


Proportion  of  preliminary  expenses  written  off  as  per  resola- 
tion  of  the  board,  12th  January,  1865  (one  fifth  of 
£1,895.  10*.  6<i.)        

Transfers  to  credit  of  reserved  fund  account 

Do.  do.         contingent  fund  account 

Balance        


£3 
l: 

r 
2,5; 

£3,8< 


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Liverpool  Financial  Association.  385 

rofitand  loss  account,  31st  December,  18C4 


4,892  12 

7 

£4,892  12 

7 

£3,805    8 

4 

£3.805    8 

4 

2,533    4 
63     6 

1 
7 

£2,469  17 

6 

n  aTailable  for  dividend 


I  moving  the  adoption  of  the  rej>ort,  said  that  financial 
ken  a  very  prominent,  and,  he  believed,  a  high  and 
this  country  within  the  laat  few  years,  and  some  of 
reat  noise  in  the  world.  The  dividend  now  proposed 
perhaps,  a  very  small  thing  in  comparison  with  what 
►ndon  and  other  places.  But  they  felt  this  satisfaction , 
accounts  were  bond  fide  and  genuine,  and  as  sound  as 
aking  that  ever  was  placed  before  any  body  of  share- 
jar,  and  applause.)  The  accounts  were  necessarily 
cause  a  financial  association  had  to  be  conducted  with 
e,  consideration,  and  judgment,  which  was  not  always 
ndertaking  of  a  joint-stock  nature.  Although  there 
jir  transactions,  they  were  necessarily,  to  some  extent, 
I  them  and  the  parties  with  whom  they  dealt.  (Hear 
•,  would  be  happy  to  give  any  explanation  that  might 
report  spoke  of  freehold  property  purchased  by  the 
1  they  considered  they  had  alreatly,  though  it  was  not 
>unt  of  profit  that  miglit  have  gone  to  the  credit  of 

have  been  distributed  in  the  shape  of  dividend  or 
jprietors ;  but  they  were  aware  that  large  blocks  of 
>  be  dealt  with  with  great  judgment  and  great  care, 
iderable  amoimt  of  patience  before  they  could  be  de- 
.  He  might  say  for  their  information  that,  of  two 
erty  which  they  liad  i^rchased,  they  were  not,  in  re- 
n,  out  of  funds  more  than  about  £G,000.  The  re- 
lase-mouey  was  to  be  paid  by  instalments,  and  it  wa.H 

cent,  interest ;  while  they  were  realising  on  that 
bove  £1,000  per  annum  clear  profit.  (Applause.) 
>nsiderably  larger  amount  of  profit  when  they  reno- 
ley  had  declined  ofters,  to  the  extent  of  a  considerable 
»ady  for  it,  and  they  had  parties  now  negotiating  for 

it;  but  at  present  it  was  left  in  statu  quo.  In 
lock  of  freehold  property  which  they  had  purchased, 
dd  have  to  pay  a  large  amount,  he  and  the  other 
xd,  with  one  exception,  had  not  had  a  moment's  un- 
)ne  member  of  the  board  did  take  an  exception  to 
ag  it  an  incubus  upon  the  association,  and  tlie  cause 
g  in  the  Stock  Market  at  a  considerable  discount. 
Micaster-buildings,  in  reference  to  which  it  ha<l  been 

30 


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386 


Liverpool  Financial  Association. 


stated  out  of  doors  that  the  property  might  have  been  had  at  a  mnc 
f^uni  than  was  paid  for  it ;  but  they  made  the  purchaee  after  greai  dc 
ation  and  consideration^  after  looking  all  the  difficulties  in  the 
and  with  their  eyes  open.  There  were,  no  doubt,  some  difficulties 
the  property — ^there  were  some  leases,  and  the  Corporation  wante 
front  of  it ;  but  if  they  had  patience  he  thought  that  before  next  m< 
tliey  would  have  to  congratulate  them  on  something  handsome 
realised  from  that  property.  (Hear,  hear.)  Its  position  would  be  th 
and  most  eligible  in  Liverpool;  and  if  they  did  not  use  it  lor 
own  purposes,  they  would  have  plenty  of  candidates  for  it.  (Hear,  1 
Ab  to  the  price,  he  understood  that  for  property  in  Castle  I 
50  per  cent,  more  had  been  paid  within  the  last  month  than  th^  hai 
fc^  the  Lancaster-buildings,  so  that  he  thought  it  was  not  at  all 
[itirchase.  (Applause.)  .Mother  source  of  profit  to  the  assodatio] 
Tir^t  yet  been  called  into  exercise ;  that  was  the  loans  on  debentures. 
had  beeu  more  like  an  ordinary  loan  asaociation  than  anything  else  i 
They  had  not  pressed  very  hard  upon  the  proprieiors ;  they  had 
their  calls  by  degrees ;  and  when  the  money  market  was  at  a  Ter^ 
raie,  and  thc^  thouc^ht  it  would  not  suit  the  pockets  of  the  shaiehold 
pay  up  a  call^  they  had  had  some  oonsideiation  for  the  majority  ol 
and  did  not  make  the  call.  With  nearly  £100,000  capital  pot  up 
could  look  the  public  in  the  face ;  and  if  they  (tiie  pubuo)  duiae  to 
their  money  to  the  associatian,  and  get  ita  debeni^uraB,  ikey  could 
v^ith  the  satisfaction  that  it  was  a  safe  investment  lor  ihe  pubU 
could  be  turned  to  good  aooount  for  the  shareholders.  (Hear.)  The 
profits  of  the  association  so  far,  amounted  to  something  between  te 
twelve  per  cent.,  but,  of  course,  in  the  formation  of  an  infant  instii 
like  that,  the  expenaea  were  considerably  more  than  they  would  be 
after,  llie  amount  of  £1^800  for  the  promotion  of  tiie  prelimina] 
penses  was  not,  perhaps,  more  than  could  be  expected  for  a  oonoen 
that ;  but  they  had  thought  it  well  to  throw  that  over  five  years. 
articles  of  association  provided  for  a  reserved  fond,  and  also  a  oonti 
fund,  to  which  they  placed  the  balance,  after  deducting  the  divide 
2s.  6d.  per  share,  which  they  proposed  now  to  pay.  They  ooidd  not 
the  reserved  fund  until  it  reached  £50,000 ;  but  the  contingent  fun 
one  upon  which  they  could  operate  at  any  general  meeting.  Ho  oonc 
by  moving  the  adoption  of  the  report  and  accounts. 

JtLr.  C.  T.  Bowring,  vice-president,  in  seconding  the  reaolntionj 
gratulated  the  shareholders  on  the  position  in  which  the  aBsodstioi] 
stood.  The  shareholders  would  be  very  glad  to  leam  what  the  chai 
had  told  them ;  and  the  best  idea  that  he  (Mr.  Bowring)  could  give  < 
confidence  which  the  directors  had  in  the  stability  of  the  conoem  wa 
increasing  interest  which  they  took  in  it.  The  directors  began  wi 
amount  cS  stock  in  their  own  names  of  about  1,750  shares,  and  tiie^ 
hehl  nearly  2,600  shares  amongst  them  (applause),  showing  that 
tliemselves  were  interested  in  the  beneficial  working  of  that  inatituti 
a  far  greater  extent  than  they  were  in  the  first  instance ;  and  that,  in 
of  losing  faith  in  the  oonoem,  they,  as  it  went  oij«  gained  confides 
the  idea  that  it  was  going  to  be  a  very  profitable  aud  excellent  iimtit 
to  this  town,  in  supj^ying  a  want  which  had  been  long  felt  in  Live 
(Applause.)  He  was  not  aware  that  there  was  the  digliteKt  iuteuti< 
the  present  time,  to  increase  the  call  to  any  exterit  whatevar.  Perhj 
might  never  be  increased;  but  all  he  could  say  »t  pveseut  was  tluit  lie 


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>n  the  part  of  the  directors  to  propose  to  the  shareholders 
ho  stock  of  the  association.  Up  to  the  present  time  not  a 
3f  any  kind — ^by  acceptance  or  otherwise — ^liad  been  in^ 
y  the  purchase  of  the  properties  referred  to  by  the  chaiiv 
and  not  a  single  loss  had  been  incurred  in  the  course  of 
transactions  of  the  period  during  which  they  had  been  in 
ir,  hear.)  He  thought  that  must  be  very  satisfactory 
id  at  the  troublous  times  which  they  had  gone  through. 
¥ere  blamed  for  anything  at  all  it  would  be  for  erring  on 
3nce.  The  directors  had  really  and  bond  fide  been  offered 
[)  upon  some  of  their  purchases.  (Applause.)  That  offer 
ken,  because  they  looked  for  better  things  in  the  future, 
ty  remained  as  a  source,  he  hoped,  of  profit  for  future 

sked  what  was  the  original  cost  of  the  property  on  which 
fered  a  profit  of  £5,000. 

L  said    the  property  would  cost  about  £31,000,  but  the 
^  to  the  profit  they  would  realise  upon  it.     They  might 

they  had  some  good  property,  which  would  give  them  a 

ere  long.    The  accounts  as  they  were  made  up  contained 

bond  fide  realised  profit ;  and  they  took  no  credit  for  an- 

f  any  kind. 

shareholder,  the  chairman  stated  that  the  value  of  their 

82,924.  14s.  9d.,  and  £1,686  had  been  paid  for  calls  in 

iterest. 

Lieut.  Colonel  M*Corquodale,  the  chairman  said  there  were 

iid  not  wish  the  particular  property  named  from  which 

,000  a  year,  but  any  shareholder  would  get  the  informa- 

t  the  office. 

s  then  adopted. 

n  of  the  chairman,  seconded  by  Colonel  Mawdsley,  Mr. 

^Ir.  Beloe,  the  retiring  directors,  were  re-elected. 

I  they  had  embarked  in  a  business  which  many  of  them 

[table — that  of  buying  up  old  buildings,  renovating,  and 

and  his  conviction  was  that  the  future  of  this  institution 
[d  prosperity, 
m  also  expressed  his   confidence  in  the  success  of  the 

iquired  whether  it  was  the  feeling  of  the  directors  that  a 

ild  l>e  made  this  year. 

L  said,  if  they  saw  it  would  be  for  the  interest  of  the  afisoci. 

aether  call,  he  would  not  like  the  hands  of  the  directors 

mise  not  to  do  so— (hear,  hear) — ^but  they  had  no  call  in 

,  present. 

lall  said  he  had  resigned  from  the  directorate  simply  be- 

\  sufficient  time  to  attend  to  the  duties  of  that  office,  and 

nt  of  confidence  in  the  institution.      He  believed  it  to  be 

growth  and  great  prosperity.     They  saw  from  its  great 

scope  would  be.  They  saw  elegant  blocks  of  buildings 
rpool — ^Brown's-buildings  and  others.      It  required  reiy 

capital  to  erect  such  buildings,  which  yielded,  he  believed, 
r  cent.  The  object  of  that  association  was  to  enable  men 
,  small  means  to  unite  those  means  together  in  the  acquisi- 

in  commanding  situations,  and  which  could  be  improved 


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388 


Credit  Fomicr  of  Mauritius, 


ot  re-erected,  and  rendered  most  profitable.  (Hear,  hear.)  The  inc 
commerce  of  Liverpool  and  the  increaning  value  of  the  buildings  y 
year,  in  the  vicinity  of  the  Exchange,  rendered  that  town  a  field  in 
they  could  hardly  fail  to  realize  a  great  profit.  The  issue  of  n^ 
ilebentures  would  also  be  of  much  value  to  iJiosewho  deposited  their  : 
mth  the  association,  besides  being  a  means  of  profit  to  the  shareh< 
They  must  not  be  afraid  of  calls  if  they  intended  to  command  publi 
lidence  and  become  a  strong  institution.  (Hear,  hear.)  They  musi 
Etomething  solid  to  back  the  debentures,  if  they  were  to  issue 
(Applause.) 

At  the  request  of  the  meeting  Mr.  Hall  withdrew  his  resignatio: 
iUrector. 

On  the  motion  of  the  chairman,  seconded  by  Mr.  John  Hedley,  \ 
W.  Chalmers  and  Mr.  A.  C.  Boreham  were  appointed  auditors. 

It  having  been  at  this  point  suggested  that  they  had  not  declare 
<lividend. 

The  Chairman  moved,  and  Mr.  Bowring  seconded,  the  declaratio 
dividend  of  2$.  6(2.  per  share,  free  of  income  tax. 

A  vote  of  thanks  having  been  passed  to  Mr.  M'Quie,  secretary, 
Himilar  compliment  having  been  paid  to  the  chairman,  the  m 
Heparated. 

CREDIT  FONCIER  OF  MAURITIUS,  LIMITED. 

Thjb  first  ordinary  meeting  of  the  shareholders  in  this  compai 
held  on  the  (Hh  February,  at  the  London  Tavern ;  Sir  L.  Grant 
chair. 

The  following  report  of  the  directors  was  read  : — 
*^  The  Directors,  in  presenting  their  first  annual  report  and  balance 
to  the  shareholders,  beg  to  state  that  the  meeting  has  been  fixed  fc 
day,  in  conformity  with  the  articles  of  association,  which  prescribe 
the  first  general  meeting  shall  be  held  within  one  year  from  the  re 
tration  of  the  company.'  The  articles  also  prescribe '  that  the  ac 
presented  to  the  meeting  shall  be  made  up  to  the  3l8t  of  Decc 
Owing  to  the  distance  from  Mauritius,  complete  accounts  to  the  1 
December  last  only  have  been  forwarded  by  the  local  board.  A  i 
statement,  however,  has  been  received,  showing  the  payments  to  be 
in  Mauritius  between  the  16th  and  31st  December ;  and,  as  this  stai 
merely  embraces  items  for  further  loans  agreed  for  and  fixed  to  be  ] 
the  borrowers  before  the  end  of  the  year,  and  for  the  salaries  to  en 
i\nd  office  rent  due  at  the  same  period,  there  can  be  no  practical  ob 
to  introducing  these  items  into  the  statement  presented  to  the  m 
This  course  has,  therefore,  been  adopted,  with  a  view  to  conform,  as 
practicable,  to  the  conditions  prescribed  by  the  deed,  and  to  she 
shareholders  the  full  amount  of  transactions  reported  by  the 
board  up  to  the  end  of  the  year.  The  directors  propose  that 
annual  meetings  shall  be  held  in  the  month  of  Marr!i  ui 
so  as  to  allow  sufficient  time  for  the  accounts  to  the  3lBt  I 
her  to  be  received  and  prepared  for  presentation  to  tJio  ui 
It  will  be  in  the  recollection  of  the  shareholders  that  this  oom]>aj 
inooiporated  on  the  10th  February  last ;  it  necessarily  took  suine  i 
organize  the  establishment  in  Mauritius,  and  to  place  fundn  there 
with  to  commence  operations ;  further  delay  was  also  iiie^it^bl 
the  time  required  for  the  investigation  of  title-deeds,  and  tlie   < 


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Credit  FoHvicr  of*  Mauritius.  389 

of  the  properties  offered  as  security  for  loans.  The 
company  in  the  island  consequently  only  commenced  in 
ru]y  last^mbracing,  to  the  end  of  the  year,  a  period  of 
as.  During  that  period  loans  have  been  made,  up  to  the 
t>er,  to  the  aggregate  araoiuit  of  £126,640 ;  in  addition  to 
board  had  grantai,  and  arranged  to  pay,  between  the  15th 
icember,  other  loans  to  the  amoimt  of  ii^4,900 ;  making 
540 ;  from  which,  deducting  the  amoimts  repaid  by  instal- 
ount  of  loans  outstanding  on  the  31st  December  bearing 
0,754.  6s.  By  the  rules  laid  down  for  the  guidance  of  the 
ich  have  been  strictly  carried  out  by  them,  all  loans  are 
t  mortgage  of  real  property,  and  are  restricted  to  one-half 
the  carefully  appraised  value  of  the  property  mortgaged  in 
f.  The  title-deeds  are  carefully  examined  by  the  legal 
company,  and  the  company's  lien  on  the  property  advanced 
cases,  duly  registered  in  the  government  mortgage  regis- 
the  colony,  and  an  official  certificate  of  the  non-existence 
cumbrance  is  required  before  the  money  is  paid.  The  loans 
sen  all  based  upon  the  principle  of  gradual  repayment  by  in- 
ble  half-yearly  in  advance.  Interest  is  also  payable  twice  a 
e.  The  directors  congratulate  the  shareholders  on  having  for 
their  business  in  the  colony,  a  board  c^^nsisting  of  gentlemen 
andingand  great  local  experience,  who  have  zealously  devoted 
their  best  attention  to  the  interests  of  the  company,  and, 
presidency  of  the  Hon.  C.  Antelme,  have  conducted  your 
n  the  most  satisfactory  manner.  The  accounts  now  sub- 
gross  profit,  to  the  31st  December,  of  £9,043.  13«.  3tZ., 
lucting  expenses  of  management  in  London  and  Mauritius, 
ler  current  charges,  and  writing  £500  off  preliminary 
t7.  lOiJ.  7d.y  leaves  an  available  surplus  of  £5,196.  2s,  8d., 
/  a  dividend  of  6s.  a  share,  being  at  the  rate  of  a  little  more 
.  per  annum  upon  the  capital  called  up,  from  the  respective 
ti  the  calls  became  due ;  and  to  leave  the  sum  of  £2,196. 2«.  8ci. 
•  credit  of  new  account.  The  directors  accordingly  propose 
on  of  the  meeting,  to  declare  the  above  dividend.  Appli- 
ich  the  majority  appear  to  be  of  a  very  eligible  character, 
IS  to  the  amount  of  £800,000,  had  been  presented  to  the 
the  date  of  the  last  advices.  This  fact  will  show  the 
iie  ample  field  which  the  company  has  before  it.  The 
idequate  amount  of  debenture  capital  at  a  rate  of  interest 
to  the  ordinary  English  rates,  is  all  that  is  required  to 
d  increasing  dividencls  ;  and  the  rate  of  interest  here  having 
ion  of  unusual  pressure,  become  more  moderate,  there  is  now 
2t  satisfactory  progress  towards  the  attainment  of  this  object. 

BalancC'Sheett  S\st  day  of  December^  1864, 

CAPITAL  JLND  UABILITIE8. 

iraount  authorised  and  issued  10,000  shares  of 
500,000;  amount  called  up  £10  per  share  on 
cs,  paid  up  £99,100  ;  amount  due,  £5  per  share 

2S,  £900 £100,000    0    0 

entures  bearing  interest  at  6  per  cent  £1,270 ; 

e  £50,000  ;  sundry  accounts  £780.  13«.  Id,  ...         52,050  13     7 

-balance  as  per  annexed  account        ...        •••  5,196    2    8 

£157,246  16    8 


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390  Credit  Fancm  qf  Mauritius, 

IiivestxB€ttift— oo  mortgages  at  Maaritios^  upon  whi^  interest 
m  aocraiag  £160,754.  5fk;  lem  amoant  not  yet  paid  OTer 

^,522. 7*.  4d.           ...        -         ...  £14M31 

Caflh— at  iMgikec's  and  In  hand,  London  and  Mauritins         ...  2«706 

OlHce  famitnre  do,           ..*        -  366 

Amount  du«  on  calls 90C 

T6tal  property  and  assets *     £152,19^ 

Preliminary  expenses  £5,551.  1^.  9(1.;  less  amount  written 

off£500  «        5.051 

CoLomissioii  and  brokerage  £2,500 ;  legal  charges  £500  ; 
adirevtiaiBg  expenses  £687.  169.  9(2.;  stationery,  traTelling 
aad  sopdiies  £656.  15*.  Id;  management  charses to  30th 
June^  1864^  according  to  danse  111  of  the  Artides  of 
AasociAtion  £1,206.  9k  lltL 


£157,24 


Profit  tmd  Eott  Amount,  from  SOth  June  to  31st  December,  1864 

E^cpenditnre— London — directors'  fees  £500;  salaries 
£948*  1^.  Sd.;  stationery  &c.  £321.  6#.  4<2.;  rent,  rates, 
taxes,  &c.,  £156.  lOs,;  law  charges  £50  petty    expenses 

£80.  is.  7d. £l,40i 

M3!iritiiis<--sahuieB  £1,144. 5s,  2cL;  statioDery,  &c.  £149.  Ss.  2dl 

rent  £96 ;  petty  chajrges  £34  17s.  3d      1,42 

Commission,.. ..,        ...  26 

ExcbaB|;e «        25 

Proportionof  preliminary  expenses       50 

£3,84 
Balance  5,l9i 

£9,04 

PropoteddiTidettdof  6s.  per  share  on  10,000  shares £3,00< 

Proposed  halance  to  be  carried  to  next  account  2,19< 

£5,19 

Cr.  """ 

Income— London — interest  account  £1,019.  13i.8(f.;  transfer 

fees  £23.  Is,  6(2.;  amount  received  on  shares  forfeited  £90  £l»l3i 
Mauritius — Interest  account    £6,893.  10#.  2d.\  management 

&es  £1,017. 1*  lid. 7,9H 

£9,04^ 

Bftlanoe  brought  down     • £5,19< 

£5,19< 

"  To  anpply  an  omission  in  the  vovking  of  the  axidcleB  of  assocu 
the  eompany,  and  to  fulfil  what  was  always  the  objected  these  art 


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Credit  Fonder  of  Mauritius. 


391 


will  be  proposed  to  the  meetiDg  to  add  to  the  103rd 
rug  worda :  '  Provided  that  no  money  of  the  company 
in  the  purchase  of  shares  of  the  company.'  By  the 
ir  articles  of  association,  the  borrowing  powers  of  the 
d  that  the  aggregate  amount  of  obligations  outstanding 
B  exceed  the  aggregate  amount  investetl)  may  be  exer- 
ount  not  exceeding  four  times  the  subscribed  capital. 
3  are  of  opinion  that  the  restriction  of  this  limit  to  an 
ling  the  subscribed  cax)ital  for  the  time  being  would  be 

improvement  in  the  constitution  of  thLs  company, 
pould  give  to  the  debenture-holder  a  double  security, 
h  an  English  and  a  colonial  security ;  first,  the  security 
up  and^un  paid-up  capital  of  the  company  ;  and  secondly, 
he  properties,  on  the  security  of  which  the  money  bor» 
nvested.  The  directors  will  propose  a  resolution  to 
of  the    articles  of    association    to   the  above     etifect. 

Turquand,  Yoimgs  and  Company,  having,  in  con- 
icles  of  association,  been  appointed  by  the  board  the 
the  company  until  the  first  general  meeting,  it  now 
0  meeting  to  elect  an  auditor  or  audit<.>rB  to  act  until 
general  meeting,  to  be  held  in  1866.  The  board  recom- 
ng  that  the  same  gentlemen  be  re-appointed." 
in  moving  that  the  report  be  received  and  adopted,  said 
had  endeavoured  to  make  both  the  report  and  balance- 
ssible,  so  that  on  reatUng  them  each  shareholder  should 
x)sition  of  the  company's  affairs.  In  drawing  thorn  up 
wiopted  rather  a  shareholder's  tlian  a  manager's  view  of 
shareholders  were,  no  doubfc,  aware  of  the  origin  of  the 
t  it  had  been  brought  out  exactly  one  year  ago,  under  the 
tid  Mortgage  Bank  of  India,  to  do  in  Mauritius  exactly 
on  of  business  which  that  company  transacted  in  India. 
ig  of  the  company  to  which  he  referred,  the  eminent 
lat  he  had  both  bad  and  good  to  communicate  to  the 
that  he  would  speak  of  the  bad  first.  He  (the  chairman) 
r  to  tell  tliis  meeting,  and  would  follow  the  same  course, 
aordinary  monetary  pressure  during  the  past  year,  they 
5ssful  in  the  issue  of  the  debentures  of  the  company  as 
Jy  hoped  to  be  able  to  do,  and  that,  of  course,  had 
•ations  of  a  company  like  theirs,  which  proposed  to  work 
entnre  capital.  He  was  now,  however,  happy  to  say  that 
Qoney  market  was  far  more  encouraging,  and  the  direc- 
king  arrangements  imder  which  they  would,  he  confi- 
ne able  to  place  a  large  amount  of  their  del^entures  in  a 
ad  now  to  come  to  what  had  been  good  in  the  company's 
past  year,  and  in  i^peaking  of  the  poaiticm  and  prospects 
Mauritius,  and  of  the  manner  in  which  they  had  been 
ooxdd  most  sincerely  state  that  their  reception  and  suc- 
had  been  even  more  encouraging  than  any  of  the  direc 
to  hoi)e  when  they  commenced  business.  Their  rules 
the  local  business,  which  had  been  very  carefully  framed 
pon  the  French  model,  were  understood  and  appreciated 
ih  element  being  very  large  in  the  colony),  and  were 
:tly  satisfactory  by  all  the  proprietors  who  had  good 
The  consequence  was  that  the  company  had  had,  from 


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392 


Credit  Fonder  of  Mauritius. 


the  first,  ita  choice  from  amongst  the  best  estates  in  the  island. 
jjosition  then  was  this,  that  without  the  help  of  debentures  they  wei 
to  pay  a  iiuwlerate  dividend,  and  in  proportion  as  they  succeeded  in  p 
their  clebtntures,  so  would  their  dividends  increase.  He  had  no 
they  Would  ^oon  be  able  to  do  so  to  an  extent  that  would  render  th< 
pany  ouo  of  the  great  successes  of  the  day.  All  that  was  required  wi 
the  company's  position,  its  system,  and  its  prospects  should  become 
kuitwn^  an^l  that  capitalists  should  understand  on  what  safe  princip 
buftiiiesB  Wrts  conducted,  and  how  rich  and  extensive  was  its  field  of  ^ 
titmn.  Tiic  manner  in  which  they  conducted  their  business  was  as  fo! 
They  lent  ont  their  money  on  first  mortgage  of  real  property.  ] 
they  did  ao,  however,  they  had  the  property  carefully  appraised,  an< 
did  not  len*  I  a  farthing  in  excess  of  half  the  valuation.  Nay,  more,  8 
receivwl  tht  fii-st  half-yearly  payment  of  interest,  <bc.,  say  6  per  cei 
advance,  t}i(^  margin  of  their  security  was  really  66  per  cent.  They 
most  able  law  officer  in  Monsieur  de  Nanteuil,  a  French  bar 
thoronghly  skilled  in  the  French  law — ^for  the  Code  Napoleon  was  in 
in  MaiiritinB — and  deeply  interested  in  the  success  of  the  company. 
ayHtem  of  re-^datry,  both  of  title  and  encumbrances,  was  so  perfect,  i 
waa  really  ^jifer  to  advance  money  on  mortgage  in  that  colony  than  i 
countr^%  \Mien  a  loan  was  granted,  not  a  farthing  was  paid  unti 
receiveil  the  ctjrtificate  of  the  proper  government  officer,  to  the  effe< 
there  was  jiot  any  prior  charge  on  the  property.  Two  months  after 
notice  was  the  time  allowed  for  the  registration  of  claims  to  person 
might  Lave  claims  ux)on  a  property  which  the  owner  desires  to  morl 
and  if  they  fail  to  do  so  within  that  time,  their  claims  are  barred. 
impt^rtauco  uf  the  island  was  not  very  generally  known.  Many  p 
thought  of  it  only  in  connection  with  the  story  of  Paul  and  Virginis 
the  ccmipany  had  to  do  with  something  more  real  than  that  story. 
sugar  e^tat^'8  on  the  island  were  alone,  at  a  low  valuation, 
^£5,000,000  sterling.  Taking  the  produce  for  1868  (and  there  hat 
many  better  years)  at  121,(>00  tons,  its  value  was  nearly  £2,600,0( 
annum.  Tlio  planters  were  a  most  intelligent  and  enterprising 
of  men.  Of  the  260  sugar  estates  in  the  island,  all,  or  nearly  all  of  whi< 
now  fitted  np  with  improved  machinery,  upwards  of  seventy  are  pn 
with  vacnuni  pans,  capable  of  turning  out  susar  equal  in  quality  to  r 
— ^such  Bugar  as,  owing  to  our  Custom  laws  ^  rag  and  tatter  of  prot 
which  he  h<kped  soon  to  see  torn  o£^,  was  only  too  good,  and  requ 
little  spoiling  for  the  English  marKet.  Still,  owing  to  the  favoi 
geographical  position  of  the  island,  that  excellent  sugar,  imspoilt, 
a  r^dy  and  a  good  market  in  the  ports  in  the  Oriental  hemisphen 
the  121,000  tons  mentioned,  one-half  came  to  this  country,  one- eight 
brought  to  France,  and  the  remaining  three-eighths  wtut  to  Ans 
Bombay,  the  Cape  of  Good  Hope,  and  other  eastern  poii.^.  In  ahci 
geographical  situation  gave  Mauritius,  on  the  one  hand,  an  unll 
supply  of  labour,  and,  on  the  other  hand,  a  creat  and  increasing  n 
at  itP  own  dtxjr.  These  were  the  things  whi<£  he  wished  the  shareb 
to  bear  in  n^ind,  so  that  they  might  make  the  position  of  the  con 
known  to  their  Mends.  With  respect  to  the  item  **  Management  ] 
which  the  shareholders  would  find  on  the  credit  side  of  the*  profit  an 
account,  he  wished  to  explain,  as  he  had  been  told  that  the  nature  o 
item  waD  not  fully  understood,  that  it  was  a  fixed  charge  paid  b 
mortgagor  throughout  the  whole  period  of  the  loan.  Tlie  item  of  inl 
*jf  course,  was  reduced  in  each  case  every  six  monthn,  as  the  princi 


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[exico  (Hid  South  America.  393 

tern  of  "  management  fees  "  remained  the  ! 

should  last  for  thirty  years.     Supposing  ' 

0  be  twenty  years,  this  item  capitaiiseil, 
bhe  value  of  an  annuity  of  £2,000  a  year 
Tease  with  every  new  transaction.  AV'ith 
ire  callsy  he  had  to  state  that  the  directors 
le  course  announced  in  the  original  pro- 
Id  be  called  up,  and  then  that  debentures 

the  directors  had  followed,  and  they  in-  '" 

ho  directors  could  give  no  ple<lge  never  to  J 

1  capital  of  the  company.     The  credit  of  ■    j 
■  of  making  calls,  and  it  was  on  its  credit 

I  thrive.     But   though  he  could  not  be 

tie  subject,  he  could  say  that  the  directors  .  , 

LI,  and  that  they  saw  not  the  least  proba- 

other  call. 

ded  by  a  Shareholder, 

jrtain  inquiries  which  were  addressed  to 

lore  6  per  cent,  interest,  and  that  certainly 

,t  rates  which  would  not  afford  the  com- 

jeated  that  it  would  be  well  to  divide  each 

1,  with  £6  imid  up,  as  they  would  thereby 

Q  their  market  price,  and  thus  facilitate 

ventures. 

iven  expression  to  similar  views,  ■    ' 

:itor,  showed  that  legally  it  was  imjwssible 

Durse,  without  a  formal  dissolution  and 

suggestions  which  had  been  made  should 
jtors. 

ualy  agreed  to. 

the  payment  of  a  dividend  at  the  rate  of 
share,  payable  on  the  16th  February. 
Balfour,  and  was  carried  unanimously, 
special,  when  resolutions  were  passed 
of  issuing  debentiires  to  an  aggi*egate 
lapital  for  the  time  being,  and  preventing 
any's  own  shares.  ♦ 

bed  with  a  vote  of  thanks  to  the  chairman. 


D  AND  SOUTH  AMERICA,  LBIITED.  \ 

ng  of  this  company  waa  held  on  the  14th 

a,  Bishopsgate-street ;  Mr.  J.  Paterson  in  ; 

jailed  in  accordance  with  the  articles  of  ■ 

Inasmuch  as  the  accounts  from  the  branch 

ved  in  time  to  submit  them  to  the  share- 

ro  formd, 

ig  was  called  in  order  to  comply  with  the  J 

Lpany.    The  bank  was  incorporated  about  ' 

ear.      They  had  branches  in  the  United  -^ 

le    mails    were   not   due    till    March,  it  !,:^ 

ihe  meeting  till  that  month,  and  it  would 


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394 


London  Bank  of  Mexico  and  Souih  America. 


be  ako  neoMsary  to  pMB  reaolntioiis  for  holding  tiieir  general  meetings  in 
B£«fckL  or  April.  Although  they  oovdd  not,  on  that  occasioB,  exhils^ 
accountsy^ej  had  them  down  to  November^  and  from  the  sereral  hraDchec 
they  had  infcnrmation  that  the  results  of  their  operattonft  had  been  qnite  m 
Batisfactory  as  they  had  anticipated.  Their  bnsines^^  L  a.  H  u  m  nii  un«  lonbtec 
HDcoess,  and  the  directors  were  perfectly  satisfied  ^\\]\  wliat.  had  bet*!!  doiM 
by  the  brandLes  abroad.  At  their  fcmner  ttectin^  ht'  l>:ul  yentiir€vi  %s 
predict  that  they  wonld  make  10  per  cent,  profit  at  the  ^\am  of  the  year 
He  would  say  nothing  as  to  the  period  np  to  Deceiaher,  wbicti  wonld  shon 
a  profit  considerably  over  10  per  cent.  Tliis  was  sa  tiBfactr^ry  for  an  aYengn 
period  of  eight  months  only.  They  had  been  sacceBsf  tiI  in  Limji^  'm  Pern,  anc 
the  manager  had  not  opened  the  branch  in  Mexico  till  the  tnontli  d 
August,  and  then  there  were  really  bat  two  months'  ttptTatirmw.  Thej 
hnd  made  gross  profits  to  the  extent  of  05,000,  uud  few  banks,  Ito  cmdi 
Ten  tore  to  say,  had  done  so  much  in  the  same  peri<^1 ;  but  a  conBiderabli 
rebate  had  to  be  made.  Thus,  in  Columbia,  the  rebate  would  be  to  thi 
extent  of  half  the  bills ;  and  so  in  the  case  of  Mtidco,  from  the  1st  o 
August  there  would  be  a  considerable  rebate,  bnt  the  ilividend,  he  wik 
satisfied,  would  reach  10  per  cent.,  besides  canyiBg  a  grjoil  sum  to  tlw 
reserve  fund.  Now,  it  might  be  interesting  to  tbi*  shareholdeni  to  kii»«f 
what  the  total  amount  of  rebate  would  be.  It  wmild  be  fx^mething  liki 
£8,000,  which  would  come  into  the  inresent  half-year.  It  wrmld  dao  h\ 
interesting  to  the  shareholders  to  know  that  all  their  man^i^r;!  had  g^m 
BatiB&Miiion.  (Hear.)  At  the  last  meeting  he  liad  mtiirmted  the  fact  o 
tbo  opening  of  the  branch  at  CaUao.  Their  heait  nmniiger  at  Peru  hat 
informed  the  board  that  his  predecessor  had  done  nothing  which  ho  dii 
not  consider  to  be  satisfactory,  he  had  entered  into  no  transfR^tinn  to  whid 
exception  could  be  taken.  (Hear.)  And  when  they  took  into  couaiderm 
tion  the  peculiar  state  of  that  coimtry,  in  conae<ineiice  of  the  misuneWr 
standing  with  Spain,  he  thought  the  merit  of  their  mantigers  wwi  th( 
greater.  In  Coliunbia  and  Bogota  they  had  been  well  received.  Thei 
had,  in  the  United  States  of  Gohunbta,  the  right  of  isAne,  rmd  the  go^reni 
ment  had  received  them  in  the  most  favourable  manner ;  and  the  peoph 
Bought  for  their  notes  in  preference  to  silver.  The  business  which  wil 
0£>emng  up  in  Bogota  was  a  most  satisfactory  one^  and  the  exchadngi 
business  would  be  ^  a  very  extensive  character  in  PLni.  He  then  w 
to  Mexico,  where  everything  was  progressing.  W  hen  the  board  laoA  i 
the  fthareholdersy  they  asked  for  powers  to  put  the  bnnk  in  Ruch  a  [ 
BiA  to  enable  them  to  obtain  a  concession,  bat  it  liatl  since  gcjuo  into  tiM 
hands  ol  Frendimien ;  but  the  bank  was  in  periett  hamiony  with  the  (iu< 
referred  to,  and  under  such  auspices  the  bank  could  not  but  be  benefited 
The  profits  to  be  gained  in  the  Mexican  field  were  larger  than  tlie  othe: 
branches;  and  they  could  do  much  more  with  alar^or  capital  (hear,  hear) 
but  the  board,  acting  on  what  they  braved  to  bo  the  feeling  of  the  graa 
body  of  proprietors,  preferred  going  on  safely  and  nlowly  for  the  prtocnl 
leaving  to  a  future  time  tooonaider  this  impcxtant  element.  In  conduaioti 
the  hon.  gentleman  mftrnd  thai  this  manting  be  adjourned  till  iha  14%1 
March  next,  at  tiie  same  place  and  hour. — Carried. 

The  meeting  was  then  made  an  extraordinary  one,  and,  in  oonforniitj 
with  the  advOTtiseineBi,  resohitioiia  were  earned  increaf^iug  the  qnaliica^ 
tions  of  dureotors  from  20  shares  to  60  shares,  and  for  altering  the  ilay  i»i 
holding  th«  general  meeting  to  the  second  wedc  in  April. 

The  proc^dingB  closed  with  a  vote  of  thanks  to  the  ehairman  am 
directors. 


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395 
;le  city  and  district  bank. 

Lnniial  general  meeting  of  this  company  was  held 
,  Mr.  G^rge  Relph  in  the  chair,  when  the  follow- 
3torH  waa  submitted  to  the  shareholders,  and  imani- 

8  now  laid  before  the  meeting  show  the  net  business 
^ear  ending  30th  June  to  amount  to  £7,423.  ISs.  7d.y 
25.  12s.  per  cent,  per  annum  ;  and  for  the  half-year 
',  1864,  £8,772.  18s.  3rf.,  being  at  the  rate  of  £30.  5s. 
and  making  on  the  whole  year  £16,196.  16s.  lOd.,  or 
s.  Qd.  per  cent,  per  annum  on  the  paid-up  capital. 
5nt.  having  been  paid  for  the  half-year  ending  30th 
)r8  recommend  a  dividend  of  9  per  cent,  to  be  declared 
tig  31st  December  last,  making  in  all  18  per  cent,  for 
nformity  with  the  resolution  of  the  general  meeting 
on  the  11th  day  of  February,  1862,  authorising  the 
Dtee  fund  to  £30,000,  your  directors  have  added  a 
[)  to  that  fimd,  which  now  stands  at  £28,000.  The 
ebts  reported  and  estimated  at  £750  at  the  last  annual  ^ 

icertained  to  amount  to  £881.  19s.  (yd.  This  sum 
tional  bad  debt  of  £59.  10s.  lid.  incurred  at  Carlisle 
ritten  off  the  auxiliary  fund.  After  these  payments 
re  will  remain  a  balance  of  £2,453. 168.  lid.  in  the 
3t  to  a  half-year's  income  tax.  Towards  the  close  of 
5  concluded  to  establish  branches  at  Workington  and 
ment  the  resources  of  the  bank  by  a  further  issue  of 
happy  to  state  that  this  arrangement  has  met  the 
holders,  from  the  fact  that  a  considerable  portion  of 
m  taken  up  by  them,  and  the  directors  purpose  dis-  t 

bed  shares  to  parties  whose  position  and  influence  are 
interests  of  the  bank.  It  is  with  deep  regret  the 
de  to  the  death  of  Mr.  Allison,  the  recently  appointed 
anch  at  Workington.  His  business  habits,  local 
igh  esteem  in  which  he  was  held,  eminently  qualified 
rhe  directors  have  engaged  Mr.  David  Tweddle,  of 
successor.     Mr.  Joseph  Huddlest<m  Wood  has  been  ' 

e  Maryport  branch.     Mr.  John  Vvakefield,  honorary  , 

)rge  Relph,  Thomas  Clarke,  and  Tliomas  Gibbons, 
tire  from  office  in  accordance  with  the  eighth  clause 
aent,  but  are  eligible  for  re-election."  i 

auditors  (Messrs.  George  Bewley,  Joseph  Bendle,  and 
ling  the  balance-sheets,  was  also  read  and  axlopted. 
r  cent,  was  declared  for  the  half-year,  payable  (free 
3  23rd  instant. 

,d  was  re-elected  honorary  director;  Messrs.  George 
ke,  and  Thomas  Gibbons  were  re-elected  ordinary 

lemen  were  appointed  auditors  for  the  ensuing  year,  »- 

swley,  Carlisle ;  Mr.  Pattinson  Dalton,  Cummersdale ;  f 

rry  Bozmell,  Carlisle.  i 

meeting  were  awarded  to  the  cfirectors,  Mr.  Fajrrar,  \ 

i  other  officers  of  the  bank.  * 

bract  of  the  balauoe-sheet  of  the  company.  \ 


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396  ,, 


■'■''-^forlT^f.,^^ 


.*pitaI«ock  ...  "AB,i,„,„ 

V,'"'{»°'eeft^'*»*"^««>unt,a„^-      -      ...      ... 

^'f^«>yfiu,<j         -      -..       ...       *'^"'««lllMiOB 


^'■-  ''Hour  AND  i-g, 

"mr,„,«,f„^J'"  December.  186,-      -      ...      :;;      - 
"<-bte,vritten  off      -      -       ...      -      -      ...      .•" 

^"'--.oan^ia^  >;;„,••.     ...     Z    ,;;     ..     ::; 

,^«  P.S;J»."7  fnnd  on  loth  v,u 

>  31«  J>eclii"''i  '»"  February,,  igg^ 

•••  ,,,  ^  ■*•  *••  ^__  "*  ••• 


itized  by  Google 


Digitiz 


ikiiig  Compani/. 


307 


rhe  net  profits  for  the  year  ending  the 
)ad  debts,  allowing  for  the  rebate  of 
paying  ail  current  expenses,  amount 
>alance  of  £1,702.  15s.  6d.  brought 
1  an  available  total  of  £^8,857. 2s.  lOd. 
for  the  dividend  and  bonus  paid  in 
your  directors  appropriated  on  the 
udley  bad  debt  accoimt,  and  you  are 
3nd  of  lOs,  and  a  bonus  of  10a.  per 
ch  next,  which  will  absorb  £26,196,. 
E10,661.  2s.  lOd.  to  the  current  year. 
3ed  amount  will  be  required  for  the 
jnt  year,  and  having  regard  to  the 
directors  feel  sure  that  the  proprie- 
carry  forward  a  large  amount  than 
ares  by  paying  an  additional  bonus. 


rard  ... 


June  £12,000  ;  divi- 
r  £20,000 ;  diWdcnd 
:26,125         


£1.702  15     5 
67,154     7     5 

68,857     2  10 

58,196     0     0 
£10,601     2  10 


ew  shares,  your  directors  have  to 
diares  reserved  for  the  proprietors 

the  remaining  5,000  shares,  1,894 
ing  3,106  to  be  disposed  of  as  occa- 

special  meeting  in  June  last.  It  is 
ctors  announce  the  appointment  of 
gr  at  Birmingham,  which  they  feel 
i  working  of  the  concern,  and  tliey 
:h  at  Wednesbury  was  opened  on  the 
f  Mr.  J.  B.  Hargreave,  late  civshier 
son  to  anticipate  profitable  results 
lat  the  board  announce  the  retire- 
g  health,  of  their  esteemed  colleague, 
ted  with  the  company  from  its  com- 
lat  he  retained  his  seat  at  the  board 
lembers.  The  vacancy  thus  caused 
Alph  Heaton,  Esq.  The  proprietors 
asrs.  F.  I.  Welch,  S.  W.  Lucas,  and 
b-committee,  to  attend  at  the  bank 
3  advice  and  assistance  in  the  ad- 
t>er  of  shareholders  on  the  register 
tik  £268,940;  and  the  reserve  fimd 

I  passed  unanimously : — 

pted;  and  that  the  same  be  printed, 

eting,  and  a  copy  sent  to  each  pro- 


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398  Oriental  Fimmcial  CorparaUcn. 

^  Thai  a  hidf -yearly  diyideiid  of  10s,  and  a  Ixwiis  of  lOt. 

ihe  old  shares,  and  a  proportionate  amoant  aooordiiig  to  tb 
on  the  A0W  sharea,  be  now  declared,  payaHe  without  dodnot: 
1st  day  of  March  next,  and  that  the  transfer  mentioDed  in  th< 
approred. 

^  Messrs.  Edwin  Laandy  and  WilUam  Henry  Reeoe  having 
the  lists  sent  in  by  the  proprietors,  and  haTing  oectified  that  t£ 
gentlemen  have  the  greatest  number  of  votes,  they  are  doGtazed 
elected  to  the  office  ai  directors  for  the  ensoing  year : — ^Willtas 
George  Bichaidd  Elkingioo,  Sampson  Lloyd  Foster,  Balph  Hea 
Taylor  Horton,  Samuel  Wilfred  Luoas,  John  Brearley  Paj 
Pemberton,  John  Poncia,  Henry  Van  Wart,  James  Watson,  an( 
Isaac  Weldi. 

^  That  the  thanks  of  this  meeting  be  presoncted  to  the  in 
their  valuable  services. 

^^  That  the  best  thanks  of  this  meeting  are  due  and  are  1 
sented  to  the  directors  for  their  valuable  services,  and  that 
£2,000  per  annum  be  placed  at  their  disposal  for  the  future. 

"That  the  best  thanks  of  the  proprietors  are  hereby  p 
Frederick  Isaac  Welch,  J.  B.  Payn,  and  S.  W.  Lucas,  Esquire 
valuable  services  as  consulting  directors. 

"  That  the  best  thanks  of  this  meeting  be  presented  to  tj 
Mr.  W.  H.  Beaumont,  and  the  other  officers  of  the  company 
attention  to  the  interests  of  the  bank. 

'^  That  the  best  thanks  of  this  meeting  be  presented  to  Fred 
Welch,  Esq.,  for  his  able  conduct  in  the  chair." 

The  proceedings  then  terminated. 


,  ORIENTAL  PINANCLLL  CORPORATION,  LTMTT 

As  extraordinary  general  meeting  of  the  members  c^  this  ooip 

held  at  the  London  Tavern  on  the  15th  February,  for  the  purj 

farming  certain  resolutions  which  were  passed  at  an  eztraordis 

meeting  of  the  members  on  the  27th  January,  having  for  i 

certain  alterations  in  various  clauses  of  the  articles  of  assoc 

adding  the  following  words  to  the  50th  article  : — "  The  directoi 

time  to  time,  for  the  purposes  of  the  corporation,  borrow  on  be 

I  corporation  from  any  of  the  directors  or  memb^uB,  or  any  othc 

i  company,  such  sums  as  they  may  require  upon  mortgiM^e  of  t 

,  of  the  corporation,  or  upon  bonds^  or  otherwise."    Mr,  W.  C.  I 

I  pied  the  cnair,  and  after  the  usual  preliminaries, 

\  The  Chairman  said  that  the  object  of  the  meeting  was  to  c 

I  tain  resolutions  which  were  passed  at  the  meeting  of  the  27th  J 

I  suggested  that  they  should  confine  themselves  to  the  business  c 

i  ing  at  first,  and  then,  as  some  rumours  had  been  spread  a 

|;  regard  to  the  position  of  the  company,  he  would  most  wiUin 

I  statement  upon  that  subject.    He  moved  the  confirmation  of 

lutions. 

The  motion  was  seconded  by  Mr.  Carew,  and  a  long  and  dea 

cussion  ensued  as  to  the  course  of  proceeding  which  should  be  a 

Major  King  said  that  he  had  proposed  tobring  fcrward  two  i 

one  of  which  he  was  informed  would  meet  the  views  ci  th< 

directors. 


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Oriental  Financial  Corporation.  399 

'man  said  that  the  course  for  them  to  pursue  was  to  confirm 

>ns  or  negative  the  coufirmatioD.     It  would  not  be  legal  to 

rd  any  other  resolution  than  for  the  objects  for  which  the 

[  been  called*  ; 

swan  oould  not  see  that  the  passing  of  the  resolutions  would 

position  of  the  shareholders  in  any  respect.  Although  the 
\  must  regret  the  unfortunate  position  of  the  corj)oration,  still 
that  they  would  be  throwing  a  barrier  in  the  way  of  the 
[iproving  the  position  of  the  property  of  the  company.  He 
lat  they  should  pass  the  resolutions  and  hear  the  statement 
lairman  had  voliuiteered  to  make,  and  then  take  what  steps 
I  expedient  upon  that  statement  by  calling  a  sjiecial  meeting 
holders  or  otherwise. 

tor  thought  they  had  a  weak  board,  and  needed  an  addition  of 
lie  element.     They  should  as  soon  as  posf^ible  effect  an  amal-  \ 

th  some  other  company.  i'- 

itions  were  then  conlirmed. 

man  then  said  he  would  not  occupy  much  of  their  time,  but 
Lt  was  necessary  to  say  a  few  words,  as  within  the  last  two  or 
since  the  last  meeting  there  had  been  a  great  amount  of  fear 
osion — amounting  almost  to  a  panic — with  regard  to  the  con-  ' 

is  company.  The  result  had  been  that  tlie  shares  had  gone 
materially,  numerous  letters  had  been  written,  and  rumours 
read  abroad.  That,  no  doubt,  was  to  be  attributed  in  a  great 
e  retirement  of  Mr.  Crawford  from  the  board.  He  did  not 
ito  the  particulars  of  that  gentleman's  retirement,  but  it  was 
importance  which  some  attached  to  it.  It  had  involved  the 
isiderable  difficulties,  as  he  (Mr.  Crawford)  had  retired  after 

were  made  up,  and  just  upon  the  eve  of  a  general  meeting, 
tunts  had  not  been  at  ail  aflfected  by  it.  They  were  as  straight- 
bey  could  be,  and  the  securities  were  all  sound.  The  money 
Ivanced  upon  good  collateral  security,  which  was  not  like  the 
Y  of  lending  money  on  Consols  or  bills  ;  their  securities  oould 
Jed  at  once,  it  required  time.  He  was  glad  to  say  that  the 
securities  held  by  the  corporation  was  improving  rather  than 
(Hear.)  There  was  a  proposition  for  an  amalgamation  between 
other  company,  but  he  did  not  know  whether  it  would  be 

A  committee  had  been  appointed  to  look  into  the  accounts 
ire  of  the  securities,  as  it  was  not  the  intention  of  the  board 
tte  with  a  company  whose  securities  were  worthless, 
wan  expressed  himself  dissatisfied  with  the  balance-sheet,  and 
3  directors  ought  not  to  make  any  further  calls.     At  the  same  ,, 

led  to  assist  the  board  in  bringing  about  an  improvement  in 
bheir  affairs,  which  was  much  needed,  when  he  told  them  that 
by  was  depreciated  80  per  cent.  : 

jy,  a  director,  said  that  he  did  not  think  that  at  present  there  | 

^  necessity  for  making  that  call  which  the  shareholders  appeared  \ 

The  directors  liad  tried  to  conduct  the  business  of  the  com-  • 

ir  general  good,  and  when  it  was  foimd  necessary  to  make  a  !« 

lie  that  business  to  be  carried  on  or  enlarged,  the  directors 
»e  to  make  it.     As  to  the  retirement  of  Mr.  Crawford  from  the  ^ 

#ysney  went  into  a  long  statement  showing  that  he  was  a  great  t: 

r.  Crawford's,  and  regretted  his  resignation.      He  gave  his       '  • . 

le  accoxints  which  were  passed,  and  then  he  received  a  letter 


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Ottoman  Financial  Association. 


from  Mr.  Crawford,  stating  that  he  did  not  think  that  a  diTi< 
be  declared,  considering  the  class  of  the  securites  held  by  tl 
He  (Mr.  Lysney)  said  that  if  the  company  was  in  danger  he 
leave  it ;  but  he  knew  it  was  not  in  danger ;  for  all  the  adyano 
been  made  had  been  backed  by  good  collateral  securities,  in  s 
three  times  the  amount  of  the  aydranoe.  He  thought  they  sb 
a  dividend,  unless  they  had  a  great  loss  come  on  them.  Hi 
tiiat  Mr.  Crawford  would  rejoin  the  board,  but  he  had  since 
Mr.  Crawford  had  sold  his  shares,  and,  what  was  worse,  ha 
which  he  (Mr.  Lysney)  considered  most  improper — he  had 
things  which  he  had  heard  in  the  board-room.  He  (Mr.  1 
written  to  Mr.  Crawford,  and  hoped  he  should  hare  a  sat 

eanation.  The  consequence  was  that  the  board  had  been  < 
tters,  and  two  shareholders  being  delegated  by  themselvc 
others,  had  called  upon  the  officials  to  produce  the  securitie 
had  been  declined,  but  after  a  long  conversation  he  believ 
gentlemen  went  away  very  well  satisfied.  He  had  to  suigg< 
should  divide  the  £60  shares,  upon  which  £10  had  been  p 
shares  of  £25  each,  that  would  give  only  £5  paid  upon  eac 
not  increase  the  responsibility.  He  thought  that  the 
amalgamate  with  some  other  company;  but  they  shoulc 
with  his  consent,  except  with  a  company  which  was  respe 
direction.  They  would  amalgamate  if  they  could  find  such 
it  would  be  the  best  thing  for  this  corporation,  as  they  ooi] 
out  their  business  without  a  large  addition  of  capital.  He  al 
that  they  should  open  a  register  in  India,  which  would  be  of 
advantage  when  the  shares  were  affected  in  England.  In 
many  things  could  be  done  for  the  good  of  the  corporation  i 
holders  worked  with  the  directors,  as  the  welfare  of  the 
much  affected  by  the  expressions  of  the  shareholders,  which 
ciated  their  property  than  any  other  cause. 

Some  discussion  then  ensued,  in  which  the  majority  of  the 
expressed  their  satisfaction  at  the  explanations  of  the  board 
that  the  suggestions  thrown  out  by  the  chairman  and  dired 
amalgamation  and  the  making  of  calls  only  when  absolut< 
for  the  interests  of  the  company,  would  be  carried  into  effect. 

Mr.  Powell  congratulated  the  meeting  upon  the  conciliator 
had  been  adopted,  and  sincerely  trusted  that  a  speedy  amalgai 
be  effected  with  some  other  company,  as  a  capital  of  £10,0 
be  worked  almost  with  as  low  a  statF  as  a  capital  of  £100,000 

The  Chairman  briefly  replied  to  the  observations  whic 
made,  and  promised  that  they  should  receive  due  consider 
hands  of  the  board.  He  trusted  they  would  get  on  prosj 
more  amicably  after  the  explanations  which  had  been  giv 
hear). 

Thanks  were  voted  to  the  Chairman,  and  the  meeting  sepai 


OTTOMAK  FINANCIAL  ASSOCIATION. 
The  first  ordinary  general  meeting  of  the  proprietors  of  t 
was  held  pro  formd,  on  the  35th  February;  Mr.  G.  P.  K 
chair. 


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explained  that  the  accounts  had  only  arrived  from 
L  the  day  preceding  the  meeting,  and  the  directors 
able  to  place  them  in  the  hanck  of  the  proprietors 
he  therefore  proposed  it  should  be  adjourned  till  the 

f  conversation  ensued  as  to  whether  questions  should 
wrered  at  this  meeting  or  not,  which  resulted  in  the 
ment  till  the  28th,  being  moved  by  Mr.  Sirrell,  seconded 
md  carried. 


lONTRACT  CORPORATION,  LIMITED. 

y  general  meeting  of  the  members  of  this  corporation 
London  Tavern,  on  the  IGth  February ;  Mr.  Joseph 
air. 

[r.  J.  C.  Handheld  having  read  the  advertisement  con- 
,  read  the  following  report ; — 

lierewith  submitted  show  that  the  balance  of  profits 
6a.,  after  allowing  rebate  of  interest  upon  bills  not  yet 
i  propose  that  a  dividend  be  declared  at  the  rate  of  HIO 
I,  free  of  income  tax,  which  will  absorb  £3,000,  and,  with 
mmer,  make  the  dividend  for  the  year  il2j  jxjr  cent, 
e  of  the  money  market  during  the  autumn  montlis 
rs  to  exercise  the  greatest  caution,  and  indeed  to  refrain 
dertakings  requiring  an  immediate  and  large  outlay, 
m  to  Wiiit  for  a  more  favourable  season  before  embark- 
1  of  moment.  The  result  of  the  proceedings  of  the  half- 
nccessarily  small,  but  the  directors  believe  that  the 
best  served  the  interests  of  the  shareholders,  and  will 
►proval.  An  opportunity  now  ofl'ers  for  largely  and 
g  the  special  business  for  which  the  corporation  was 
The  directors  have  the  gratification  to  aimounce  that 
the  co-operation  of  the  well- known  firm  of  Messrs. 
id.  This  arrangement,  which  has  received  the  direc- 
5onsideration,  and  has  been  made  subject  to  the  approval 
,  wants  only  their  confirmation  to  enable  the  coq>ora- 
tnuience  extensive  operations,  from  which  satisfactory 
ected.  Resolutions  in  reference  thereto  will  be  sub- 
aordinary  meeting,  to  be  held  immetliately  after  the 
as  been  concluded. '' 

Balance-sheet,  December  Slstt  1864. 

DEBTS  AND  LIABILITIES. 

per  Share,  £60,000  ;.  amounts  received  in 

£1,776       £61,776  0  0 

;  interest,  new  account,  for  rebate  on  bills 

lOj.  4d 5,583  10  4 

s,  deposits,  &c 118,398  10  6 

loss  account          6;043  6  0 


£190,801     6  10  I? 


31 


ii 


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The  Contract  Corporation, 


Lease  of  premises       .••      •••      « 

Furniture  and  fittings  

Preliminaiy  expenses,  £3,138.  195.  Ad. ;  less  moiety  chared  to 

profit  and  loss,  £1,569.  195.  Ad,\  £1,569 ...  \ 

AdvanceSy&c, *,       ...       IS 

Cash  in  hand  and  in  bank 


£l9i 


Prqftt  and  Loss  Account,  December  Slst.  1364, 
Cnrrrent  expenses  lor  year  ending  December  31st,  1864,  includ- 
ing rent,  salaries,  directors*  fees,  office  and  general  charges, 

&c 

Habate  on  bills  receiyable  carried  to  interest  new  account 
Moiety  of  preliminary  expenses  written  off  this  year 

Diyidend  declared  on  26tli  July,  1864  „ 

Amount  carried  to  reserve  fund 

Balance  carried  down 


Gross  amount  of  profit  for  year  ending  December  31st,  1864 
Balance  brought  down ...      


£2 

"££ 

£2 


The  Chairman,  in  moving  the  adoption  of  the  report  j  KtiiJ  thi 
for  itself,  but  as  some  letters  had  been  receiTed  by  the  hoaxd^ 
dissatisfaction  at  the  reduction  of  the  diTidend  this  h^ilf -year,  a 
of  explanation  might  be  satisfactory.  He  called  the  attention  ol 
holders  to  the  fact  that  besides  paying  12^  per  cent.  f<  >r  the  jea 
a  reserve  fnnd  of  £4,500,  which  was  equal  on  the  paid-up  capitt 
cent,  more,  thus  making  the  profits  20  i)er  cent.  They  hail  also 
mind  that  up  to  the  present  their  expenses  had  nc  ce&Raril  j 
compared  with  the  amount  of  business  they  had  done.  They  h 
on  the  undertaking  new  to  the  work,  and  the  past  year  might  be 
a  year  of  apprenticeship.  An  amount  of  business  had  bt!€u  broi 
them  which  was  almost  appalling  for  its  vastnesa,  imd  such 
poration  with  so  small  an  amount  of  capital  paid  up  as  they 
not  entertain  except  to  a  very  small  degree.  They  hatl  thei 
fined  their  business  very  much  to  financial  matters  counected 
tracts,  and  it  was  from  those  oj^erationa  that  the  profits  of  th 
tion  had  accrued.  With  the  experience  they  now  had  tbey  p 
extend  their  operations  in  the  direction  of  the  purpose:^  for  whicl 
pany  was  originally  formed,  and  with  that  view  they  had  vamh 
ments,  which  would  be  submitted  to  the  proprietors  for  their 
with  Messrs.  Watson  and  Overend,  from  which  tlrey  anticii 
satisfactory  results.  In  order  to  carry  out  the  arra&gemeut  a  < 
of  directors  had  been  appointed  to  inquire  into  the  nature  of  tb 
of  Messrs.  Watson  and  Overend,  of  which  Captain  Jervis  wa» 
man,  and  that  gentleman  would  explain  to  them  the  mode  in  wb 
proposed  to  carry  the  arrangement  into  eflfect.  They  f  haught  it 
directors  of  what  they  believed  would  become  a  very  important 


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d  Corporation.  4(33 

I  sanction  of  the  sharehohiers  upon  such 
hey  now  proposed  to  take  up,  and  there- 
le  report,  he  would  call  upon  Captain 
3r  to  enable  him  to  state  what  was  pro- 

ig  the  motion,  aaid  that  he  had  taken 
e  arrangement  they  had  made  they  did 
ion,  any  of  the  actual  contracts  which 
nhand,  but  had  secured  tlieir  hearty 

all  future  business.  Consequently 
in  the  shape  of  bad  or  doubtful  con- 
nly  believed,  two  of  the  best  men  in 
ness  for  the  transaction  of  which  the 
lie  exceptions  to  which  he  alluded  were 
iilway,  and  two  other  smaU  railways 

had  considered  most  seriously  what 
[1  their  business,  and  they  had  come  to 
►  the  present  paid-up  capital,  further 
r   share,  extencUug  over  a  jjeriod   of 

would  give  them  a  sufficient  capital 
ibhc  works.  So  far  they  hi»d  f>perated 
me  their  serious  duty  to  consider  what 
tors  had  therefore  turned  their  atten- 

justified  in  the  steps  they  had  taken 
ty  approval  of  the  shareholders.  The 
I  in  the  matter,  and  had  stated  that 
e  their  arnin;^'emeuts  without  consult- 
.  felt  that  they  would  much  rather 
ith  the  shareholders,  and,  with  that 
sm.     (Cheers.) 

the  item  in  the  accounts  of  amounts 
,398  represented   money  which  they 

pay, 
ks  money  due  on  deposits  for  fixed 

the  item  on  the  other  side  of  the 

3any  had  not  made  a  single  bad  debt. 

it  the  nature  of  the  business  was  on 
mting  to  something  like  40  per  cent., 

Lfraid  that  if  they  entere<l  into  any 
transacted  they  would  shortly  have 
say  was  that  it  was  of  a  most  satis- 


ises  had  been  heavy  in  consequence  of 
doing  little  business,  from  the  causes 
in  connected  with  business  for  thirty 
mself,  he  had  never  done  so  much 
this  corporation*  Of  course,  as  the 
Id  greatly  lessen  projwrtionately,  but 
ed  charges,  which  they  had  to  pay 
'.     With  respect  to  the  payment  for 


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TJw  Contract  Corporation. 


Mu«sr8.  Watson  and  Overend'a  business,  that  was  to  be  settled 
tratifjn,  and  every  care  had  been  taken  to  protect  the  interest 
corfKjration.  The  balance  of  £5,043  was  carried  forward  to  t 
accumit  in  preference  to  being  carried  to  the  reserve  fund,  bea 
amrnmt  carried  to  that  fund  (£4,500)  was  equal  to  7i  per  ceni 
capital,  which  was  considered  quite  sufficient.  (Hear,  hear.)  The 
bavi'  divided  considerably  more,  but  they  considered  that  it  waii  pj 
at  til e  present  moment  to  carry  forward  a  considerable  balance. 

A  Shareholder  thought  the  course  adopted  by  the  directors  b 
aod  prudent.  He  wished  to  ask  whether  the  directors  had  taken 
amfnuit  as  their  remuneration  which  they  were  empowered  to  d 
articles  of  association. 

The  Chairman  said  that  they  had  not.  He  explained  that  the  < 
werL!  twelve  in  number,  and  that  they  were  to  be  remimerated  b; 
aiitu  and  a  per  centage,  namely,  £4,000  a  year,  and  5  per  cent 
3ur] ilu»,  after  5  per  cent,  had  been  paid  to  the  shareholders.  1 
taki^a  the  £4,000,  but  not  the  per  centage. 

Mr.  Hodgson  was  clad  to  hear  the  statement  of  Captain  Jervia 
believed  the  whole  of  their  advances  had  been  made  on  good  and  f 
securities,  and  asked  whether  the  securities  in  question  had  been  e 
by  the  auditors. 

Mr.  C.  J.  H.  Allen,  an  auditor,  replied  in  the  affirmative. 

The  report  was  then  unanimously  adopted,  and  a  dividend  at 
of  in  per  cent,  per  annum,  free  of  income  tax,  declared. 

Oil  the  motion  of  Mr.  E.  Makins,  seconded  by  Mr.  Bicketts,  th 
aiiilitors,  Mr.  C.  J.  H.  Allen  and  Messrs.  Deliotte,  Greenwood,  an 
were  re-elected. 

Tlib  closed  the  business  of  the  ordinary  general  meeting,  which 
itself  into  an  extraordinary  general  meeting. 

Captain  Jervis  moved  that  the  agreement  which  was  ente 
between  the  corporation  and  Messrs.  Watson  and  Overend  on  th 
February,  for  the  acqtdsition  by  the  corporation  of  Messrs.  Wa 
Co.*B  business,  be  confirmed. 

Mr.  Alderman  Dakin  seconded  the  resolution.  Tlie  committee 
tors  hwdi  gone  most  carefully  into  the  matter,  deeming  it  of  the 
portanoe  to  the  interest  of  the  company.  The  board  had  felt,  du 
preceding  year,  the  want  of  some  competent  and  efficient  advise 
was  a  matter  of  the  greatest  gratification  to  obtain  the  co-opera 
BssiBtance  of  such  eminent  men  as  Messrs.  Watson  and  Overend, 
bei3n  BO  successful  hitherto  in  everything  they  had  undertaken, 
the  pleasure  of  knowing  those  gentlemen  personally  as  w^ell  as  b^ 
tion^  and  he  was  satisfied  that  the  co-operation  of  two  such  t 
expiTienced  railway  engineers  would  be  of  great  advantage  to  \ 
paiiy.  The  board  having  felt  the  necessity  of  abstainbi^  from 
mto  those  operations  for  which  the  company  was  formed  froni  i\\\ 
efficient  assistance,  the  acquaintance  of  Messrs.  Wat^^^n  and 
promised  great  success  to  it.  They  had  heard  from  Captain  Je: 
that  co-operation  would  be  obtained  without  mixing  up  thin  co] 
wit!i  the  enterprises  which  Messrs.  Watson  and  Qvemul  hatl 
Wiatever  was  taken  over  by  the  company  would  be  fairly  val 
Meears.  Watson  and  Co.  had  put  themselves  entirely  into  the 
the  corporation  to  decide  what  was  the  most  equitable  way  for  a] 
to  carry  out  the  agreement ;  therefore  they  had  every  ai^suranoe  i 
would  pay  no  more  for  the  plant,  <fcc.,  than  their  own  arbitrator 

WOB   just. 


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The  Contract  Corporation*  405 

in  reply  to  a  question,  stated  the  arrangement  did  not 
►f  tlie  Mid-Wales  line. 
Lng  been  put,  was  carrieil  uujmimously. 
ift,  M.P.,  moved  that  the  amended  articles  of  associa- 
\  foT  the  old  articles, 
led  the  motion. 

led  the  attention  of  the  meeting  to  the  fact  that  the 
kkI  gave  power  to  the  board  to  increase  the  capital  of 
y  amount,  without  consulting  the  shareholders, 
jaid  that  he  Wiis  quite  of  opinion  that  such  an  unlimited 
be  placed  in  the  hands  of  the  board  ;  and,  after  a  short 
le  subject,  it  was  agi-eed  that  the  power  of  the  board 
to  the  creation  of  a  capital  of  two  millions  <:>nly  beyond 
f  existing  capital,  thus  leaving  the  same  jx^wer  in  tlie 
l1  as  they  possessed  imder  the  old  articles. 
1  the  attention  of  the  board  to  the  small  amount  of 
npared  with  the  nominal  capital,  and  asked  the  chair- 
nt  the  shares  were  to  be  reduced. 

laid  that  the  application  to  Parliament  was  to  reduce 
shares,  and  it  was  contemplated  to  call  not  exceeding 
uing  18  months  on  the  £100  shares,  making  the  paid-up 
jr  share.  Of  course,  the  calls  on  the  £20  shares  would 
The  whole  matter  woidd,  ho  believed,  be  referred  to  a 
House  of  Commons,  with  a  view  to  the  passing  of  a 

aid  that  several  banks  had  found  it  necessary  to  apply 

1(1  they  had  all  been  referred  to  one  committee. 

ther  question, 

tated  that  by  the  arrangement  made  with  IMessrs.  Wat- 

hey  would  iDecome  large  shareholders,  and   that  such 

be  due  to  them  on  a  valuation  of  the  i^laut  should  be 

hares  In  anticipation  of  calls. 

lat  it  appeared  to  him  that  the  efTect  of  the  reduction 

1  be  that  they  would  be    £20  shares  with  £2.  lO.s.  paid 

mght  the  disproportion  between  the  paid-up  and  the 

)uld  be  too  great.     He  thought  it  would   be  better  if 

.,  or  even  £10  paid-up  on  the  £20  shares. 

aid  that  at  present  the  question  was  before  Parliament, 

ble  to  tell  what  course  would  be  taken  there,  because 

fix  the  shares  at  £25  or  £60. 

sked  whether  in  the  event  of  the  shares  being  reduced 

rs  woidd  be  prepared  to  hold  five  times  the  number 

[qualification  ? 

^cussion  ujjon  this  point  it  was  agreed  that  the  qualifi- 

•s  should  remain  as  it  stood  at   present,  namely,  the 

to  the  nominal  value  of  £5,000. 

5,  subject  to  the  two  alterations  agreed  upon,  were  then 

dial  vote  of  thanks  to  the  chairman  and  directors  for 

■f  they  had  displayed  in  the  management  of  the  concern 

.  of  Mr.  Makins,*  seconded  by  Mr.  H.  Barker,  carried  by 

laving  expressed  his  thanks,  and  those  of  the  board,  for 
lenc«,  the  proceedings  terminated. 


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I 


406 


LEICESTERSHIRB  BANKINQ  COMPANY. 

The  thirty-fifth  annual  general  meeting  of  the  ihareholders  was 
the  Three  Crowns  Hotel,  Leicester,  on  the  8th  Febmary,  Sa 
Baukart,  Esq.,  in  the  chair. 

The  following  report  was  read  : — 

"The  directors  have  pleasure  in  submitting  to  the  proprie" 
balance-sheets  for  the  half-years  ending  the  80th  of  June,  and 
December  last.  After  making  provision  for  bad  and  doubtful  de 
paying  the  income  tax,  the  net  profit  of  the  bank  for  the  past  year  i 
to  £25,231.  7«.  7d.  This  sum,  added  to  £4,440.  17*.  M.,  the  i 
priated  balance  of  the  preceding  year,  makes  a  total  of  £29,67! 
which  amount  is  included  £1,124. 128.^  for  interest  on  the  guarani 
The  directors  paid  a  dividend  of  £1. 10a.  per  share  for  the  half-y 
ing  the  30th  of  June,  amounting  to  £7,500,  and  they  now  reoomm 
the  dividend  for  the  half-year  ending  the  Slst  of  December  last  be 
per  share,  being  10  per  cent,  on  the  paid-up  capital.  After  the  ] 
of  these  dividends,  and  the  appropriation  of  the  interest  on  the  gi 
fund  as  above,  a  balance  of  profit  amounting  to  £13,547. 13a.  will 
out  of  this  amount  the  directors  further  reoonmiend  the  paym 
bonus  of  15a.  per  share,  being  at  the  rate  of  2}  per  cent,  per  annui 
that  £5,000  be  transferred  to  the  guarantee  fund,  and  that  the  ba 
£4,797. 13a.  be  carried  forward  to  the  current  year." 

The  profit  and  loss  account  will  then  stand  thus : — 

Dr. 
Dividend  paid  to  the  Bhareholders  for  the  half-year  ending  the 

30th  of  June,  1864    ...         

Ditto,  ending  31st  of  December,  1864 

Bonos  of  2J  per  cent.        

Interest  on  toe  guarantee  fund 

Amount  transferred  to  the  guarantee  fund       

Balance  to  be  carried  forward     


£25,23 
4,44 


£29,67 


Or. 

Net  profit  for  the  year  1864 
Balance  of  profit  for  1863... 


And  the  guarantee  fund  thus  : — 

Balance,  January  Ist,  1864         

One  year's  interest  at  three  per  cent.     ... 
Amount  transferred  from  this  year's  profits 


'*  At  the  solicitation  of  several  valuable  customers,  the  directo 
for  the  last  three  months  given  a  market-day  attendance  at  S 
cote,  in  connection  with  the  branch  at  Ashby-de-la-Zouch,  from 
place  it  is  five  miles  distant ;  the  accommodation  to  the  locality  ia 
ciated,  and  as  the  mineral  products  of  the  district  and  the  manuf 
are  very  considerable,  the  directors  believe  that  before  long  it  will  1 


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Banking  Company.  407 

lence  of  the  continued  increase  of  the 
Mid  the  branches,  the  directors  deem  it 
er  increased  by  the  sum  of  £50,000,  the 

shareholders,  thus  making  the  i)aid-ui) 
le  directors  therefore  beg  to  inform  the 
on  to  make  a  call  of  £2.  10^.  per  share, 
,nd  a  call  of  £2.  10s.  per  shaie,  payable 

as  to  the  remainder,  the  shareholders 
tt  annual  general  meeting.  The  27th 
settlement  recites :  "  That  two  of  the 
Q  office ;  the  vacancies  to  be  filled  up  at 
ided,  nevertheless,  that  on  all  occasions 
ected,"  It  is  therefore  announced  that 
,  Esquires,  are  the  retiring  directors. 

£150,000    0    0 

43,332  13     0 


£193,332   13     0 


hen  passed  and  adopted  : — 

adopted,  printetl,  and  circulated  among 

f  are  hereby  authorised  to  declare  and 

re  for  the  half-year  ending  the  31st  of 

per  share  paid  to  the  shareholders  for 

me. 

ropriated  to  the  payment  of  a  bon  us  of 

that  the  further  smn  of  £5,000  be  trang- 

L  that  the  residue,  viz.,  £4,797.  13;j.,  be 

-'s  account. 

id   Mr.  John    Howcutt    be    re-elected 

%  be  presented  to  the  directors  for  their 

Beting    be   given    to   Mr.  Kinton,  the 
of  the  establishment,  for  their  efficient 

g  be  given  to  Samuel  S.  Bankart,  Esq., 
t  in  the  chair." 


RN  BANKING  COMPANY. 

shareholders  in  this  company  was  held 

)ndon  Tavern,  imder  the  presidency  of 

rpose  of  confirming  certain  resolutions 

1  meeting  held  on  the  6th  February. 

iise  17  of  the  articles  of  association  be 

snable  the  company  to  comply  with  the 

e.  , 

lat  the  name  of  the  company  be  changed,  ; 

rhe  South  Eastern  Banking  Compiuiy, 

any  shall  be  The  Counties  Joint-btock 


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408 


Oriental  Commercial  Company, 


Thinlly,  "  Thiit  the  directors  be,  and  they  are  hereby  authorised 
crease  tht^  capital  of  the  company  by  the  issue  of  any  new  shares 
each  to  any  annnint  not  exceeding  £1,000,000,  and  that  such  inci 
capital  be  ma^le,  and  issue  of  new  shares  take  place,  at  such  times 
Hiidi  manner  as  the  directors  shall  deem  expedient." 

There  were  not,  owing  to  the  inclemency  of  the  weather,  enough 
hokleis  pri'&ent  to  constitute  a  quorum,  and  those  present  having 
half  an  hour,  the  prescribed  time,  the  meeting  was,  on  the  mo 
Mr.  Alderman  Abbis,  seconded  by  Captain  Mangles,  adjourned  1 
ftpUrmiiig  Friday,  at  lialf-past  twelve,  at  the  office  of  the  company. 

The  iisuiii  ciinipliment  to  the  chairman  closed  the  proceedings. 


ORIENTAL  COMMERCIAL  COMPANY. 

A  SFE^^AL  general  meeting  of  proprietors  was  held  on  the  22ud  Fel 
at  the  Londrtii  Tavern,  Admiral  Bumey  in  the  chair,  for  the  pur] 
aftinning  by  a  npt  tiJic  resolution  the  minutes  adopted  at  a  prelii 
meeting'  liehl  on  the  26th  January,  to  the  effect,  "  Tliat  the  Orienta 
mercial  Company  (Limited)  should  modify  its  constitution  as  expre 
tiiat  of  the  OriLmtal  Commercial  Bank  (Limited).  That  the  capital 
be  iucreiised  iu  i;3,000,000  nominal,  £1,600,000  issued,  and  that 
j^honld  at  once  be  created  to  deliver  against  transfer  of  the  capital 
(tther  Ixwly,  or  ufion  allotment  otherwise  up  to  such  amount.  Tt 
<acti)al  shareholden^  of  this  company  should  receive  one  share  of  i 
for  every  seven  uf  their  present  shares  as  a  bonus,  and  that  the 
should  contmue  to  be  £20  each  nominal,  £7  paid  as  before.  Tl 
present  accounta  *A  the  Oriental  Commercial  Company  (Limited^ 
be  kept  entirely  se^mrate  as  to  profit  and  loss,  and  be  balanced  \ 
course  for  the  benefit  of  this  company.  On  the  motion  as  to  wheth 
capital  of  the  Oriental  Commercial  Company  (Limited)  should 
creased  lui  proixised,  and  the  name  and  powers  of  the  Oriental  Comn 
Biuxk  (Limited)  Hlmtild  be  adopted,  it  is  unanimously  resolved  th 
meetiDjij  hereby  ai>i» roves  and  recommends  that  these  measures  sho 
carried  out,  ami  t hut  the  directors  shoidd  communicate  the  sense  < 
meeting  to  the  whole  proprietary  body,  and  take  such  other  steps 
upon  lus  may  be  re^juiHite  to  give  effect  to  the  propositions  in  questic 
The  CUainuan  explained  tLat  the  object  of  the  meeting  was  f 
purpose  of  giving  the  necessary  authority  for  carrying  out  the  recomn 
tions  imaniinoualy  adopted  at  the  private  meeting  of  shareholders  h 
the  2Gth  ult.  A  vaat  majority  of  the  proprietors  were  tliortnighl; 
vinceil  with  the  tlirectora  of  the  desirability  of  extending  the  capita 
thns  enlarging  the  I^hLs  of  the  company's  operations.  It  liad  been 
Why  <h*n't  you  make  a  call  ?  But  they  started  with  the  idea  of  not  maJ 
call,  and  now  they  had  the  opportunity  of  increasing  the  capital  of  tlu 
pany  without  making  a  call,  and  without  the  difficulty  of  seeking  fo 
capital  \  in  fact,  the  capital  had  sought  them,  and  the  quest ioii 
"vhether  they  should  accept  the  offer  so  made,  and  thus,  by  abiding  ^ 
capital  of  the  company,  vastly  enlarge  the  profits  of  the  proprietors, 
further  capital  wa^  desirable  was  proved  by  the  fact  thiit  they  ha^i 
frequently  compelled  to  refuse  business  from  want  of  mean^.  Some  i 
say,  we  have  always  divided  15  per  cent.,  and  we  are  satisfied  wi 
going  further  ;  but  in  these  times  they  could  not  afford  to  stand  still 


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The  East  of  England  Bank. 


409 


Id  be  sure,  sooner  or  later,  to  find  otlier  companies  start- 
1  with  them,  and  probably  taking  from  their  profits. 
3  satisfied  that  the  step  proposed  was  the  best  that  they 
pt,  and  he  was  confirmed  in  his  opinion  by  the  managers 
st  mercantile  and  banking  companies,  both  in  London 
whom  he  had  consulted,  and  who  assured  him  that  if  the 
carried  this  company  would  very  soon  be  one  of  the  best 
Ion.  Some  persons  might  doubt  the  propriety  of  chang- 
ihat  of  the  Oriental  Bank,  but  the  name  of  Oriental 
any  carried  no  weight  with  it,  and  hundreds  of  people 
nature  of  the  operations  in  which  the  company  was 
;ame  time  he  wished  it  to  be  distinctly  understood  that 
biou  of  giving  up  the  old  business,  or  to  enter  upon  bank- 
he  ordinary  acceptance  of  the  term  ;  but  if  they  had  the 
:hey  would  be  enabled  to  assist  their  friends  abroad  in 
obtain  for  themselves  large  profits  from  transactions 
ient  they  were  practically  shut  out.  He  concluded  by 
n  fonually  adopting  the  minutes. 

L  seconded  the  motion,  and  after  several  shareholders 
aaolves  favourable  to  the  passing  of  the  resolution,  it 
idopted. 
ied  to  the  chairman,  and  the  business  of  the  meeting 


?HE  EAST  OF  ENGLAND  BANK. 

le  shareholders  in  the  above  bank,  held  at  Norwich,  on 
y,  it  was  resolved  to  make  a  further  call  of  £15  i)er 
3  estimated  would  raise  £45,000.     It  was  stated  that 

bring  in  about  £30,000.  The  liquidators  also  informed 
roposition  which  had  been  made  by  the  Rev.  A.  Cooper, 
>rs  (against  whom  proceedings  in  Chancery  had  been 

as  actions  brought  by  individual  shareholders) ,  to  pay 
a  lease  from  his  liability  both  to  the  liquidators  and  the 
Iders.  The  liquidators  having  in  view  the  expenses  of 
eving  that  in  this  particular  instance  the  director  was 
b  than  sinning,  recommended  the  shareholders  to  accept 
),  which,  it  was  explained,  was  exclusive  of  the  liability 
n  respect  to  calls  on  his  shares,  winch  calls,  it  was  esti- 
>unt  to  very  nearly  £10,000  more.  The  shareholders, 
aestion  fully  explained  to  them,  adopted  unanimously 
3n  of  the  liquidators,  and  a  consent  was  signed  to  the 
)roposal  alluded  to.  It  was  stated  that  the  proceedings 
ken  against  the  other  director  would  be  pushed  on  with 
urther  relief  to  the  shareholders  might  be  obtained 
)0S8ible.  A  second  dividend  of  5s.  in  the  pound  will 
iced ;  to  pay  that  dividend  £140,000  will  be  required, 
L  hand  £130,000,  includina:  the  amount  received  on  the 


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410 


UNITY  JOINT  STOCK  MUTUAL  BANKING  ASSOCIATK 

Aix  eztTaordinary  general  meeting  of  the  shareholders  of  this  ooi 
was  held  on  the  14th  February,  at  the  London  Tayem,  to  consider  w 
the  prosecution  of  Terry  and  Burch  should  be  conducted  at  the  btm 
the  shareholders,  and  also  to  c(Misider  the  resolutions  of  the  ah 
of  the  19th  of  January,  1865,  and  the  future  conduct  of  the 
dators.  Mr.  Deputy  Eowen,  the  deputy  chairman  of  the  board  of 
tors,  took  the  chair. — Mr.  Procter  moved  the  first  resolution,  to  th< 
that  the  prosecution  should  be  continued  by  Messrs.  Lewis  and  Lew: 
that  the  expenses  be  paid  out  of  the  funds  in  the  hands  of  the  liqui< 
Mr.  Kench  seconded  the  motion,  which  was  put  and  carried  almost ' 
mously. — Mr.  Lewis  said  that  the  law  costs  in  all  the  prosecutio: 
actions  would,  he  believed,  not  exceed  £500,  of  which  about  £11 
already  been  received  in  fees  from  the  directors,  so  that  the  costs 
provided  for  he  did  not  expect  would  exceed  £350. — Mr.  Suttoi 
moved  a  resolution  censuring  the  three  directors  for  the  course  th< 
pursued,  and  requesting  the  shareholder  liqmdators  not  to  resign, 
hold  themselves  together  as  a  committee  of  vigilance  to  watch  the  pr 
ings  of  the  directors  in  winding  up  the  affairs  of  the  bank. — Mx, 
moved  an  amendment  as  follows :  "  That  the  present  directors  be  req 
to  resign,  and  that  the  liquidators  be  appointed  directors  in  their  j 
— ^Mr.  Newton  seconded  the  amendment. — The  Chairman  said  that 
notice  convening  the  meeting  did  not  include  the  election  of  direct( 
could  not  put  it  to  the  meeting. — Great  dissatisfaction  ensued,  f 
which  the  mover  put  it  to  the  meeting,  and  it  was  carried.  The  cha 
and  directors  then  abruptly  left  the  chair,  and  the  legal  meeting 
amid  expressions  of  great  disapprobation. — Dr.  Cooke  was  then  vote 
the  chair,  when  Mr.  Lewis  entered  into  an  explanation  of  their  1^^ 
tion,  and  suggested  the  following  resolution  : — "  That  if  it  be  necess: 
the  winding-up  of  the  bank,  and  the  prosecution  of  Terry  and  Burcl 
to  the  Court  of  Chancery,  the  present  body  of  liquidators  have  poi 
take  such  steps  as  they  may  be  advised  on  behalf  of  the  genera] 
of  shareholders.'' — ^Mr.  Sherwood  then  formally  moved,  and  Mr.  £ 
seconded  the  resolution,  and  it  was  carried  unanimously. — ^A  \ 
thanks  was  given  to  the  liquidators  for  their  zealous  services,  and  tL 
ceedings  terminated. 


CONTINENTAL  BANK  CORPORATION. 

The  report  of  the  Continental  Bank  Corporation,  submitti^l  to  the 
ing  on  the  27th  of  February,  exhibits  a  considerable  loss  by  the  fail 
constituents  during  the  late  commercial  crisis.  Under  theee  circumc 
the  directors  deem  it  their  duty  to  make  the  shareholders  iwrqwaintei 
the  precise  condition  of  affairs,  to  exhibit  the  whole  loss  IrtcurTed, 
offer  their  suggestions  as  to  tne  best  mode  of  dealing  ^  ith  H.  I 
most  careful  examination  of  the  accounts  at  the  head  ofSce  xud  bra 
the  total  loss  is  found  to  amount  to  £19,500,  and  after  fU  (luetic^ 
from  the  net  balance  of  profits,  £5,090,  and  the  reserved  fiiu  J,  £lfK 
remaining  deficiency  is  £13,409.  This  sum  the  directors  recommend  i 


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Dividends  of  Liverpool  Banks. 


411 


account.  Wliile  regretting  this  result,  the  directors 
ery  hope  to  the  future.  An  excellent  business  has 
ite  of  current  profit,  since  the  last  year's  accounts  were 
1  increased ;  and  a  prospect  has  been  opened  up  of 
\  of  a  most  profitable  nature.  The  amalgamation,  to 
made  in  the  last  report,  not  having  been  carried  out, 
for  the  requirements  of  the  bank,  to  add  to  the  paid- 
n  the  shares  : — "viz.,  £5  on  the  original  shares,  on  the 
nd  £5  on  10th  of  December ;  and  on  the  new  shares, 
,  and  £5  on  2nd  of  January,  18G5.  Those  calls  have 
there  still  remains  £10  to  call  on  the  new  shares  to 
:he  first  issue. 
Jl>ort  of  the  meeting  in  our  next  number.] 


:to]vian  financial  association. 

ttoman  Financial  Association  shows  that  the  business 
n  on  the  Ist  June.  The  Smyrna  branch  was  opened  in 
atantinople  branch  in  September.  The  directors  pro- 
d  year  shall  terminate  on  the  30th  Juno  in  each  year. 
>mmend  that  an  interim  dividend  of  IO5.  per  share  be 
)  be  put  to  reserve  fund,  leaving  a  balance  of  £6,833 
i.  The  directors  feel  that,  notwithstanding  the  recent 
amercial  aftairs,  and  the  opposition  of  competitive 
"  have  good  cause  to  congratulate  the  shareholders 
ch  has  been  hitherto  achieved  by  the  association,  and 
confidence  in  its  future  prosperity, 
leeting  will  be  given  in  our  next.] 


)0L  BANKS.— DmDENDS,  <fec.,  FOR  LAST 
SIX  MONTHS. 


Paid 

Div.and 

Kame. 

Paid-up 

Reserve 

up 

bonus 

Capital. 

Fund, 

per 

percent. 

share. 

per  ami. 

£ 

£ 



842,460 

208,257 

25 

nil. 

pool     

625,000 

251,964 

12* 

10 

•••      •••       • 

350,000 

183,000 

10 

10 

ingc      

120,000 

nil. 

5 

5 

I  Exchange 

869,295 

nil. 

10 

nil. 

•••      ...       •••      ••• 

219,538 

97.530 

10 

10 

3th  Wales       

300,000 

150,000 

10 

20 

n 

267,262 

7,000 

5 

10 

600,000 

82.476 

10 

5 



450,000 

140.481 

15 

10 

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412 


llEASONS  AGAINST  THE  BILL  OF  THE  CHANCELLOE  01 
EXCHEQUER  "  TO  MAKE  PROVISION  FOR  EMiPOWi 
COUNTRY  BANKS  OF  ISSUE  TO  OBTAIN  RELIEF,  &c." 

The  Bank  Act,  1844,  while  confirming  former  Acts  which  emp 
juiut-stock  banks  to  issue  notes,  fixed  the  amount  of  the  issues  of  thei 
LDg  country  banks,  and  prohibited  the  formation  of  any  new  banks  o 
}iut  did  not  relax  the  restriction  of  the  distance  of  65  mUes  within  wL 
existing  joint-stock  banks  of  issue  might  not  carry  on  their  banking  bi 
The  policy  of  Sir  Robert  Peel  in  framing  this  act  was  avowed 
U*  provide  a  practical  security  for  the  Bank  of  England  circi 
and  the  gradual  extinction  of  that  of  private  establishments  foi 
no  security  was  given;  thus  power  was  given  to  the  Bank  t 
[xiimd  with  such  banks  as  were  willing  to  relinquish  their  issuef 
in  the  case  of  bankers  ceasing  to  carry  on  their  banking  busii 
becoming  bankrupt,  the  amoimt  of  their  issues  absolutely  ceased, 
vision  was  further  made  for  increasing  the  amoimt,  the  Bank  o 
land  was  authorised  to  issue  upon  securities,  which  by  this  i 
iixed  at  £14,000,000,  to  an  extent  not  exceeding  two.thir< 
amount  of  private  issues  that  had  li^>sed,  the  profit  on  sudi  adc 
issue  being  paid  by  the  Bank  to  the  government;  imder  this 
the  amount  of  issues  of  the  Bank  has  been  increased  by  £€ 
The  Bill  of  the  Chancellor  of  the  Exchequer  proposes  esse 
Ut  modify  the  provisions  of  these  Acts.  1.  By  removing  i 
strictions  of  six  in  the  number  of  partners  in  banks  of  issi 
1  providing  for  the  continuance  of  issues  that  would  otherwise 
The  j)olicy  of  the  Act  of  1844  was  gradually  to  extinguish  the  imi 
issues  of  private  establishments,  Parliament  always  retaining  the  p 
lietermining  such  issues  without  compensation ;  that  no  banks  of  i 
not  more  than  six  partners  could  imite  with  others  and  retain  thei 
with  an  increase  in  the  number  of  partners,  nor  transfer  their  i 
issue  to  others.  The  operation  of  the  present  Bill  is  to  defeat  the 
ticms  of  the  existing  Act,  and  take  from  Parliament  the  power  ol 
mining  the  right  of  issue,  should  public  policy  require  it,  unless 
X>A>'ment  of  full  compensation  to  the  bank  enjoying  the  right  oi 
Uuder  the  existing  law,  the  issue  of  any  bank,  becoming  banknip 
lutely  ceases,  but  this  Bill  proposes  that  compensation  for  the  irn 
term  of  the  right  of  issue  shall  be  paid  out  of  the  public  revenue's, 
ing  to  the  present  value  of  an  annuity  of  one  per  cent,  on  tlni  s 
iiiAues  of  the  Bank;  and  although  the  Bill  is  silent  as  to  tl 
after  which  such  present  value  is  to  be  computed,  yet  re< 
it  at  three  per  cent,  (the  rate  yielded  by  the  public  funds),  t 
to  the  consolidated  fund  for  every  £100,000  of  issue  for  a  pe 
twenty-four  years  will  be  about  £16.900.  2.  The  present  Bill  proj 
remove  the  restrictions  upon  banks  having  more  than  six  partners 
their  notes  within  sixty-five  miles  from  London.  On  the  faith  if  t 
vision  of  the  existing  law,  other  banks  were  established,  carryini,'  > 
business  mainly  witMn  the  radius  of  sixty-five  miles  from  Londuo, 
(•tily  the  aecurecZ  notes  of  the  Bank  of  England.  The  proposed  b 
without  offering  to  them  any  compensation,  bring  within  the  radius  < 
<  operations  a  new  class  of  competitors,  having  peculiar  privileges  -  ti 
submitted  that  neither  public  policy  nor  convenience  requires  that  th 


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lalian  Loan.  413 

be  violated  to  the  extent  prnpo«e<l,  viz. : 
tew  Joint- Stock  Banks  of  issue  by  the 
issue,  and  the  creation  of  branches  of 
aciius  of  66  miles  from  London  :  The 
vhich  by  the  cessation  of  business,  or 
ing  bank,  wouki  cease  :  Compensation 
iipt  banks  for  the  loss  of  a  privilege, 
J  ceases.  The  withdrawal  for  a  fixed 
3sue  of  country  bank  notes,  and  their 
irliament  now  ]X)sse«se8. 


)LESEX  BANK,  LIMITED, 
IDATION. 

en  issued  : — "  54,  Bishopsgate  Street 
-I  am  instructed  by  the  directors  of 
nited,  to  inform  you  that  they  have 
tiUTi  to  their  shareholders,  in  respect 
B  of  £1  per  share,  and  that  you  may 
^istered  in  your  name  on  application 
the  months  of  March  or  April  next, 
ee  o'clock.  It  will  be  necessary  that 
■tificates  for  examination  a  few  days 
ue  ujDon  them.  The  directors  also 
continuing  their  best  endeavours  to 
bank  with  the  view  of  distributing 
early  as  possible. — I  am.  Sir,  your 
Accountant." 


ALIAN  LOAN. 


ii^t.  State  Domain  Loan  of  £8,000,000, 
3  16th  January.  Tlie  principal  and 
n  Government,  with  special  hyiX)the- 
of  the  law  of  the  Italian  Parliament 
)8criptions  will  be  received  in  London 
Company,  and  by  the  Italian  Laud 
jrt'nerale,  and  in  Lyons  by  the  Credit 
Italy  will  receive  applications  for  the 
des  Pays  Bas  for  Amsterdam,  Messrs. 
3rt,  and  the  Banque  de  Credit  G^nd- 
the  state  domaius  are  estimated  at 
»  bear  interest  at  5  per  cent,  ou  their 
£100  by  fifteen  equal  drawings  in  fif- 
and  payable  1st  of  April,  18G6.  The 
Q  a  period  spreading  from  the  present 
5  per  cent,  being  made  on  the  nominal 
due  let  April,  1865,  will  be  attached 
rice  of  the  bond  to  75,  and  subscribers 
stalments  \mder  discount,  at  the  rate 


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414 


The  New  Italian  Loan. 


of  bIx  per  oent.  per  annum,  on  any  of  the  days  fixed  for  paym 
instalments.  Each  bond  further  carries  with  it  a  free  coupon  de 
representing  its  pro  raid  participation  in  10  per  cent,  of  any  pro 
by  the  sale  of  the  domains  over  their  valuation,  which,  at  the  a^ 
at  which  sales  are  now  making,  may  be  estimated  at  from  £2 
XlOO  bond,  receivable  over  the  fifteen  years.  The  net  price 
bond  is  thus  further  reduced  to  about  74,  at  which  rate  the  inl 
the  advantage  of  the  annual  drawings,  makes  the  investment  e 
rate  of  over  10  per  cent,  per  annmn.  The  brokers  to  the  bi 
Messrs.  James  Capel  and  Co.,  and  Messrs.  Mullens,  Marsha] 
The  annexed  statement  with  respect  to  the  advantages  connects 
operation  has  been  circulated  : — 

"  This  loan  presents  the  following  advantages  to  the  subscri 
issue  at  £74  net  pays — 

1.  £5  a  year  interest  on  £74,  equal  to  £6  15«.  per  cent. 

2.  If  a  subscriber  take  fifteen  bonds,  which  cost  (15  x  ' 

he  gets  one  bond  drawn  each  year  at  £100,  for  whi 
£74 — that  is,  he  gets  his  capital  back  and  £26  bonus  e 
Thus  in  the  first  year  he  has  £1,110  invested,  and  gets 
£75  interest, 
Plus  £26  bonus. 

Or  £101  in  all,  equal  to  9  1-10  per  cent. 
In  the  last  year  he  remains  with  one  bond,  or  £74  invested,  an( 
£5  interest 
Plus  £26  bonus 

Making  £31,  equal  to  42  per  cent. 
The  average,  as  calculated  by  actuaries'  tables,  is  10  3-10  per  o 
whole  fifteen  years  on  the  capital  invested.  That  is,  an  inves 
capital  back  intact  by  instalments  ovey  fifteen  years,  with  i 
cent,  for  its  use,  while  he  remains  out  of  it.  Though  the  re 
subscribers  is  so  high,  the  operation  is  a  very  advantageous  < 
Italian  Government,  as,  instead  of  burdening  its  finances  with  a 
loan,  it  obtains  this  money  by  the  sale  of  state  lands,  which  be 
ilates  the  political  position  of  the  nsw  kingdom  and  adds  to  th 
the  country  by  placing  a  great  mass  of  landed  property  in  pri^ 
The  following  is  the  position  of  Italian  finance.  To  start  cle 
the  Italian  Government  required  £8,000,000  to  meet  the  arrea 
left  by  their  predecessors.  They  have  realised  £5,000,000  by  a 
a  year's  land  tax,  and  £6,000,000  by  this  measure  for  the  sa 
domains.  For  the  future  the  national  debt  of  Italy,  of  all  sorl 
£200,000,000,  and  they  have  extraordinary  resources  in  lands,  < 
and  state  railways,  <Src.,  of  the  estimated  value  of  £80,000,00( 
£15,000,000  to  £20,000,000  may  be  made  immediately  avaiL 
present  Ministry  have  already  made  large  reductions — viz.,  £1 
the  army  and  £500,000  in  the  navy,  and  further  large  econoi 
progress.  With  a  prudent  foreign  policy  their  finances  will  b 
stored  in  three  or  four  years." 


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415 


RIO  DE  JANEIRO  GAS  COMPANY, 
ro  Gas  Company  comes  out  under  satisfactory  aiis- 
capital  is  to  be  £600,000,  in  30,000  shares  of  £20 
a  limited  liability  undei-taking,  and  also  a  "  societe 
rdance  with  the  laws  of  Brazil.  The  deposit  is  to 
n  application  and  £4  on  allotment,  the  remainder 
instalments  : — £5  on  the  28th  of  April,  £5  on  the 
£5  on  the  30th  of  June.  The  company  has  been 
)03e  of  acquiring  two  concessions  granted  by  the  Im- 
>  of  Brazil  for  ligh  ting  Rio  de  Janeiro  with  gas.  Th ese 

the  monopoly  of  supplying  the  city  of  Rio  vith 
>f  25  years  from  the   25th  of  March,  1854.      At  i 

3sible  to  obtain  power  to  transfer  the  concessions,  ^. 

meantime  the  success  of  the  works  has  been  highly 
t  the  Government  have  arranged  that  the  privileges 
I  joint-stock  company.  The  net  profits  for  the  year 
I  £64,500,  and  for  the  year  1864  to  £65,000,  or 
er  cent,  on  the  proposed  purchase-money,  viz., 
r  the  terms  of  the  concession  the  company  will  be  ; 

iuce  into  Rio  de  Janeiro  all   machinery  and  raw  I 

to  the  manufacture  of  gas  free  of  duty.  The  com- 
ption  of  paying  one-half  of  the  purchase-money  in 
?3.  The  profits  will  accrue  to  the  shareholders  as 
ily  next.     It  will  thus  be  noticed  that  subscriber 

pro|)erty  and  an  existing  business,  the  net  profits 
tive  of  anticipated  progressive  increase,  will  yield 
m  exceeding  10  per  cent,  per  annum. 


THE  VARNA  RAILWAY. 

[Xiantile  Credit  Company  have  announced  that  they 

:)frer  30,000  shares  of  the  Varna  Railway  Company. 

I  Rustchuk  to  Varna,  and  possesses  a  concession  of 

he  Turkish  Government.       The    share   capital   is 

00  shares  to  bearer  of  £20  each,  bearing  a  minimum 

snt.  guaranteed  by  the  Turkish  Government.    15,000 

taken,  9,000  of  which  are  under  ofier  in  Turkey, 

terms  of  the  concession.     The  ]nice  of  issue  of  the  < 

h  a  deposit  on  application  of  £1,  and  a  payment  j 

£2.      The  railway  was  commenced  last  June,  and  » 

3  rfbeen  made  in  all  branches  of  the  works.     Fifty 

ks  are  ready  for  laying  the  rails,  and  the  contractors  | 

agements  to  open  tlie    entire    line  in  the  autumn 

Tding    to    the    price    of    issue,   shareholdei-s    will 

mt    per    annum,    and    interest    will    be    allowed  ; 


Digitize(5  by  Google 


41G 


Tlie  Varna  Railtmy. 


at  the  same  rate  on  aU  payments,  and  shareholde: 
HtattHi,  may  pay  up  in  full.  The  shares  will  be  redeemed 
a  thinking  ^nd,  guaranteed  by  the  Turkish  Goyemment,  I 
ilni wings,  to  commence  the  year  after  the  opening  of  the  1 
holder  of  each  share  drawn  and  paid  off  at  £20  will  receive  a 
warrant,  entitling  him  to  participate  in  all  profits  earned  b^ 
way  in  excess  of  the  guaranteed  interest  during  the  remaim 
cciiicession.  The  importance  of  the  traffic  is  well  known,  a 
fonn  the  shortest  and  most  convenient  route  to  and  from 
providing  the  cheapest  and  most  direct  means  of  oomn: 
between  the  Moldo-Wallachian  Principalities  and  the  count] 
Upjier  Danube  and  the  port  of  Varna.  It  is  imderstood 
com  esflion  for  the  coast  Ime  from  Varna  to  Constantinople 
arruuged,  and  that  immediate*  steps  will  be  taken  to  can 
imdortaking,  which  will  increase  the  traffic  and  improve  the 
of  the  Varna  Railway  Company.  The  bay  of  Varna  is  o] 
best  natural  harbours  in  the  Black  Sea,  where  there  is  a  larg< 
tioii  of  grain  and  other  merchandise  at  all  seasons  of  the  yea 
improvements  which  are  to  be  immediately  carried  out,  th( 
of  Varna  will  shortly  become  one  of  the  finest  in  Europe. 


THE  WEST  LONDON  DOCKS  AND  WAREHOUSES  CC 

TiiK  jiromoters  of  the  West  London  Docks  and  Warehouses 
(with  the  river  frontage  at  Batteraea)  require  capital  to  the 
^51  (0^000,  in  25,000  shares  of  £20  each,  of  which  one-third  hi 
been  subscribed.  The  company  has  been  formed  for  the  p 
coiLstructing  h  canal  basin,  with  wharves  and  warehousej 
ing,  in  the  immediate  vicinity  of  the  Victoria  Railway  3 
Battersea.  The  objects  of  the  undertaking  are  two-fold — 
Rupjily  good  wharf  and  warehouse  accommodation  to  thesoutl 
distiict  of  the  Thames  ;  and  secondly,  to  accommodate  the 
the  various  railways  which  converge  to  the  point  at  which  th< 
wiJl  be  situated.  The  construction  of  the  Thames  Embank] 
sweep  away  not  less  than  two  and  a  half  miles  of  wharves, 
consequence,  will  almost  entirely  close  up  the  water  way  totl 
warehouses  lying  along  its  course.  The  railway  companies  "w 
have  access  to  the  wharves  are  the  following  : — The  Great 
the  London  and  North  Western,  the  Great  Northern,  th 
Wflrtem,  the  Ix)ndon  Brighton  and  South  Coast,  the  Lone 
ham  and  Dover,  and  the  Metropolitan.  The  revenue  will  b 
ft-ora  canal  and  dock  dues,  rental  from  wharves  and  wareho 
charges  for  loading  and  unloading.  Responsible  contract 
jigrcHKl  to  pay  7  per  cent,  interest  upon  the  paid-up  capit 
c<]nfitniction,  estimated  at  about  two  years,  and  further  fc 
months  after  the  entire  completion  of  the  works. 


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417 


OF  THE  RATE  OF  DISCOUNT. 
discount  now  stands  at  4  per  cent. 
I  also  4  per  cent.  The  iJank  of 
3,  5  per  cent.  Both  the  accounts 
Bank  of  England  are  improving, 
ven  in  a  much  stronger  position 
osed.  The  bullion  has  rapidly 
)  large  withdrawal  from  this  side, 
contracts  have  been  open  to  take 
Paris  market.     If  this  is  true  it 

England  directors  not  having 
iue  to  the  shippers  for  having 
he  purchase  of  the  arrivals,  and 
metallic  reserve  in  the  vaults  of 
however,  the  Bank  of  England 
^,  and  the  stock  of  bullion  is 
directors  do  not  see  any  breakers 
3  rate  to  4  J  per  cent.  Beyond 
?scend,  because  it  will  be  natural 
In  the  produce  market  will  not 
trill  be  a  turning  point  in  the 
\  Altogether  it  has  been  a  dull 
e  last  two  months,  and  if  the 
mation  we  should  shortly  expect 
est  persons  are  hopeful  respect- 
and  there  is  every  anticipation 
'  joint-stock  projects  are  not  too 
nor  new  loans  will  be  supported 
n  months  since,  and  it  is  satis- 
now  avoid  any  but  what  may  be 


BANK  OFFICIALS. 


their  clerks  a  bonus  of  6  per  cent. 
Bank  of  Scotland  have  granted  a 
unt  of  salary  drawn  for  year  ended 
their  employment  at  the  head  office 


32 


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418 


j  AMALGAMATION  OF  THE  ALLIANCE  AND 

I  CONSOLIDATED  BANKS. 


It  app^uri  that  a  basis  of  arrangement  has  been  fi  greed  upc 
amalgiunation  of  the  Alliance  Bank  with  the  Coiisglidati 
Of  course,  further  n^otiations  will  have  to  be  carried  c 
modification  of  capital  effected,  before  the  united  establish 
be  brought  into  full  operation.  The  possessiuu  of  the  pi 
the  auction  mart,  the  central  situation  for  busincHs,  ia  allej 
one  object  of  the  Consolidated  Bank  in  seeking  to  enter  i 
with  the  Alliance. 

At  the  last  moment  the  negotiations  have  been  broken  oi 


TENDERS  FOR  BILLS  ON  INDIA. 

Tn«  biddings  for  Rs.  30,00,000,  in  bills  on  India,  tix>k  place  at 
of  Eiigknd  on  the  Ist  February.  The  proportion  r  allotted  wer 
cutta,  Rfl.  16,27,000;  to  Bombay,  Rs.  12,00,000;  aud  to  Mi 
2,22,000.  The  minimum  price  was,  as  before,  l^i.  ll^d.  on  Cal 
Ma«lrafi,  and  1«.  11  fd.  on  Bombay.  Tenders  on  Calcutta  and  ] 
Is.  ll^d.  will  receive  about  27  per  cent.,  and  on  Bombay  at 
about  41  per  cent. ;  all  above  these  loioes  in  full.  Further  hk 
Rfl,  30^00,000  took  place  on  the  16th  February.  The  proi>c>rtion 
were— to  Calcutta,  Rs.  16,39,000;  to  Bombay,  lie.  12,00,000 
Mftdrfu^,  Rs.  2,61,000.  The  minimum  price  was,  as  before,  Is. 
Calciitta  and  Madras,  and  Is,  llf d.  on  Bombay.  Tenders  on 
aud  Madras  at  Is.  11  f  d.  will  receive  about  43  per  ceiit.  ;  and  on 
nt  Is.  11  |d.,  about  92  per  cent. ;  above  these  prices  in  fiUl. 


SERIOUS  ACCIDENT  TO  MR.  K  D.  HODOSON,  M 

GitsAT  sympathy  has  been  expressed  in  all  commercial  eirclea  ixi 
within  tbe  last  few  days  in  consequence  of  an  accident  which  has 
to  the  Governor  of  the  Bank  of  England.  It  appears  tliat  Mr. 
was  prcK^eeding  towards  his  residence  in  his  carriage,  when,  tli 
accident,  he  sustained  a  fractiure  of  one  of  his  arms.  CoutinuouB 
have  »iiioe  been  made  at  the  Bank,  and  the  latest  reports  are  1 
progreflidng  favourably,  and  that  he  may  be  expected  to  leave  hi£ 
about  a  week. 


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419 


N  OF  INTEREST  ON  EXCHEQUER  BILLS. 

the  Exchequer  ha?  given  notice  that*  the  interest  on 
ayable  on  and  after  the  11th  of  March  next  will  be 
cent,  per  annum.  "All  holders  of  Exchequer  bills 
March,  1862,  who  intend  to  demand  payment  of  the 
rein  contained  at  tlie  expiration  of  the  third  year  of 
ust  leave  the  said  bills  at  the  Bank  of  England  for 
ter  than  the  8th  of  March  next,  between  the  hours  of 
ment  of  the  said  principal  sums  will  be  made  at  the 
^he  11th  day  of  March  next. 


€atatmnmtwv[^. 


the  Editor  of  the  "  Bankers'  MagaziiieJ' 

BaUaarat,  24th  Dec,  1864. 

BANKING  AT  BALLAARAT. 

return  you  my  thanks  for  your  kindness  in  giving  a 
of  October  last  to  a  previous  letter  of  mine,  wherein 
ur  readers  was  directed  to  the  banking  institutions  on 
» to  the  system  of  business  in  vogue  among  both  English 
i)lishm6nts  there.  Since  my  previous  communication 
B  competition  for  deposits  therein  referred  to,  instead  of 
^ely  increased,  rendering  the  giving  of  extravagantly 
rat  compulsory,  if  each  institution  seeks  to  maintain  its 
ligh  rate  of  interest  allowed,  namely,  from  5  to  7  per 
ged  for  six  months,  brings  to  the  banks  a  constantly 
)f  deposits,  which  are  diverted  from  other  fields  of  in- 
rom  deposits  placed  at  call,  on  which  no  interest  is 
tern  of  allowing  interest  necessitates  an  equally  extrava- 
ut  on  really  first-class  bills  to  be  charged,  which  presses 
and  acts  most  injuriously  to,  the  commercial  classes, 
i  carrying  on  large  businesses.  The  rate  of  discount 
12  per  cent,  for  bills  at  3  months,  and  those  having  a 
light  be  discounted  a  shade  less.  It  is  only  within  the 
the  branch  banks  on  Btillaarat,  have  begun  to  afford 
lation  to  customers  on  any  large  scale.  The  permanent 
pldfields  in  this  locality,  and  the  splendid  farming 
ig  the  town,  together  with  the  various  industries  from 
ished,  are  amply  suflicient  to  justify  the  banks  doing  a 
I  business  in  the  shape  of  disooimting  bills.  In  order  to 
an  extent  the  banks  have  granted  assistance,  we  may 
establishment  with  which  we  are  connected,  has  more 
ered  its  funds  over  a  large  area  of  a  very  diversified 
ihe  last  three  or  four  years.  We  scarcely  think,  dis- 
banks  on  goldfields  of  uncertain  duration,  would  be 
s  the  men  commencing  business  on  new  "  rushes"  are 


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\  420  Communications. 


i 


i 


generally  a  cLass  of  customers  of  an  undesirable  kind.     The 
Ballaarat  endeavour  to  obtain  a  share  of  every  kind  of  busine 
j  eatriblishment  does  not  direct   its  attention  to  a  particular  d< 

I  as  the  London  bankers  are  reported  to  do.  It  is  well  known  that 

is  m Bjoly  supported  by  its  golden  resources.  The  quantity  already 
by  the  mines  of  the  precious  metal  has  acted  a  wonderful  part  in  t 
of  England,  nay,  we  think,  every  country  in  the  world  has  felt  1 
spell  of  the  golden  magician.  The  bsuiks  purchase  almost  i 
quaiititv  of  gold  obtained  in  the  Colony.  Mining  companies  ai 
sought  fori  and  those  obtaining  cold,  offered  the  s&ongest  induce 
the  banks.  It  is  notorious  to  what  an  extent  the  banks  unden 
other,  and  how  disgraceful  are  the  schemes  adopted  to  fet  thi 
in  in  lug  account.  Fair,  manly,  and  honourable  competition  is  ] 
Birable  to  exist  amons  banks ;  but,  the  dealings  prevalent  her 
prcfiume  in  other  inland  districts  of  the  Colony,  will,  and  m 
diet^mt  day,  bring  ruin  and  confusion  to  more  than  one  estal 
^  Tho  account  of  a  mining  company  yielding  a  considerable  qi 
gcJil  is  of  great  value  to  a  bank.  The  hsuak  gets  the  gold  raised 
mine,  its  notes  are  circulated  in  parent  of  wages  among  the 
ahareholders,  as  a  rule,  transact  their  business  with  the  bank  ( 
their  dividends,  or  perchance  obtaining  assistance  for  further  m\ 
It  needs  no  great  stretch  of  fancy  to  see  the  value  of  a  mining 
which  puts  one  or  two  thousand  notes  into  circulation  every  forti 
from  one  to  three  thousand  ounces  of  gold  in  the  same  time,  and 
deposits,  or  increases  discounts  to  equidly  large  amounts.  Were 
of  Ballaarai  to  become  non-auriferous,  the  business  now  doi 
banks  woidd  dearesse  to  such  a  large  extent  as  to  compel  six  of 
to  close. 

During  our  residence  at  Ballaarat,  we  h%rt  often  wondan 
abftenoB  of  a  banker's  association,  as  also  the  want  of  a  banker'i 
The  young  men  employed  in  the  banks  are,  perhaps,  as  well 
aud  as  devoted  to  literary  pursuits  as  any  other  classes  in  the 
nity,  bat,  we  venture  to  say,  there  are  not  very  many  bank  elei 
wdl  read  up  in  books  treating  of  banking  subjects,  and,  indeed 
anxious  they  may  be  to  acquire  knowledge  of  such  studies,  it 
imiMjsaible  to  obtain  works  treating  upon  these  branches.  We  v 
throw  out  a  hint  to  directors  and  diareholders  in  England  the 
of  presentinff  their  officers  in  the  colonies  with  a  smsll  oollectioi 
books  as  could  not  fail  to  be  of  the  utmost  advantage  to  them 
daily  avocations.  Clerks  here  work  well  for  the  interest  of  dis 
prietors ;  banks  have  hitherto  succeeded }  dividend^  large  and 
have  many  a  time  and  oft  been  declared ;  we,  therefore  hope,  i 
lectual  oapadties  of  our  fellow  officers  will  not  be  aUowed  to  | 
want  of  a  few  good  books.  The  bank  managers  in  Ballaan 
renowned  for  their  care  of  those  under  them;  how  sadly  do 
inch  a  man  as  the  late  Mr.  (Hlbart,  whose  dhisf  pleasure  oa 
opening  up  new  regions  of  intellectual  food  for  the  banking 
London. 

I  am, 

Toum  ainoerely, 

Baitk  Qi. 


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421 

€Bi^%  0f  Jfaileb  Jfrrms. 


ESTATE  OF  MESSRS.  LUNHAM  <k  CO. 

meting  of  the  creditors  of  Mr.  James  Lanham,  trading  as 
aham  and  Co.,  was  held  on  the  31st  January,  when  the 
I  the  result  of  their  labours,  showing  a  revised  statement 
abilities  being  now  placed  at  £165,000,  and  the  assets  at 
)8ition  of  9«.  6d.  in  the  pound  was  now  offered,  instead 
er  occasion,  payable  by  instalments  at  one,  three,  five, 
iths.  The  estate  is  to  be  liquidated  under  the  super- 
of  Messrs.  Coleman,  Turquand,  and  Co.*s,  assisted  by  a 
tors. 


rATE  OF  MESSRS.  HILL  <fe  WEGUELTN. 

creditors  of  Messrs.  Hill  and  Weguelin,  who  recently 
m  trade,  took  place  on  the  26th  January,  when  a  state- 
vaA  presented  by  Messrs.  Cooper  Brothers,  accountants, 
liabilities  of  £29,547,  against  assets  of  £22,520.  There 
13,923  on  the  13th  March,  1864.  The  great  loss  had 
to  St.  Petersburg  on  joint  account  with  Messrs.  Hill, 

of  that  city.    The  partnership  drawings  represented 


MERCANTILE  SUSPENSIONS, 
umoimced  during  the  month  of  February  were  the 

£er  <b  Co.,  Mincing  Lane,  colonial  and  drug  brokerik 

&  P.  Cohen,  Mel^urne,  merchants. 

er  <b  Co.,  Melbourne,  merchants. 

wski  <fc  Co.,  Melbourne,  merchant*. 

•owsmith  <fe  Co.,  Bolton,  spinners. 

arr,  Blackburn,  manufacturer. 

Darwen,  manufacturer. 

n  dc  Taylor,  AccringtoDi  manufacturers. 


MONTHLY  CHRONOLOGY, 

e  Directors  of  the  Bank  of  France  reduced  the  titie  of 

tnt. 

announced  of  Messrs.  R.  Baker  &  Co.,  of  Mindng  Lano^ 

rokers* 

n  Australia  report  the  suspension  of  Messrs.  S.  H.  and 

ume,  with  £21,000  liabilities. 

sner  &  Co.,  of  Melbourne,  liabilities  about  £18,000. 

lilowiki  4b  Co.,  also   of  Melbourne,  vith    £25,000 


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422 


Monthly  Chrotwlogy. 


17. — The  Directors  of  the  Bank  of  Holland  reduced  the  rate  oi 
from  4^  to  4  per  cent. 

21, — A  new  Peruvian  Consolidated  Loan,  brought  forward  h; 
Tlir^nmou,  Bonar  <k  Co.  The  nominal  amount  is  £10,000,000  stock 
intcrtsst  at  the  rate  of  5  per  oent.  per  annum.  The  price  of  issue 
every  £100  stock,  the  chief  guarantee  being  upon  guano,  the  p 
the  Chincha  Islands. 

24. ^Suspension  announced  of  Messrs.  P.  Arrowsmith  h  Co., 
of  Bolton,  with  liabilities  extending  to  about  £200,000. 

24.— Failure  of  Mr.  Thomas  Carr,  manufacturer  of  Blackbi 
i:9,000  liabUities. 

24. — Stoppage  of  Mr.  Qarstang,  manufacturer,  of  Darwen,  witli 
lialnlities. 

24.^3ui^nsion  of  Messrs.  Kenyon  and  Taylor^  of  Accringtoi 
factiirers,  with  £5,000  liabilities. 

24.— The  Chancellor  of  the  Exchequer  officially  announced  the  i 
of  interest  on  Exchequer  Bills,  payable  on  and  after  the  lit 
next^  from  4  to  3}  per  cent,  per  annum. 


BANKING  OBITUARY. 

On  the  11th  February,  at  Percy  Place,  Clapham  Road,  Mr.  J 
Wig] it,  of  the  Provincial  Bank  of  Ireland;  youngest  son  of  Mi 
Wiglit,  late  of  the  Colonial  Bank. 

On  the  16th  of  February,  Mr.  G^eorge  Charles  Cox,  many  yean 
at  tJir  Banking  establishment  of  Messrs.  Drummond,  Charing  Cn 

On  the  19th  February,  at  Bnintsfield  Place,  Edinburgh,  Mr. 
Paul,  late  of  the  Commercial  Bank  of  Scotland,  Glasgow,  in  the  i 
of  hb  age. 


BANK  MOVEMENTS. 

Tii«  South  Eastern  Banking  Company  opened  a  brai^ch  at  No.  1< 
Btrei't,  Bristol,  on  the  Ist  February. 


It  is  officially  announced  that  Mr.  John  D.  Carnegie,  of  the 
Bank  J  who  has  had  25  years'  experience  in  that  establishment,  \ 
ifcppoiiited  general  manager  of  the  Metropolitan  and  Provincial  B 
ift  fdsf  >  further  intimated  that  changes  in  the  direction  are  likel] 
pi  iK«,  which  will  bring  names  of  influence  and  parties  practically  ao 
with  btJiking  into  relationship  witii  the  boaro. 


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423 


Pontiarg  ^xddliQtrut, 


REVIEW  FOR  THE  MONTH  OF  FEBRUARY. 

mcial  and  oommercial  affaini  during  the  month  just 
b  been  unsatisfactory.  Although  at  one  period  the 
a  slight  pressure  in  the  money  market  it  has  latterly 
feeling  is,  if  anything,  in  favour  of  lower  rates.  The 
>ank  directors  were  to  reduce  the  quotation  there  would 
«itioo  to  enoourge  ephemeral  enterprise,  and  the  result 
sion  of  capital  from  its  legitimate  channels.  New  loans 
Dies  are  all  very  well  when  the  available  surplus  is 
I  allow  of  money  being  thus  employed.  But  when  we 
i  for  A  restoration  to  trading  activity,  the  absorption 
not  received  with  full  feelings  of  pleasure.  The  Bank 
their  terms  to  4  per  cent,  on  the  9th  of  February,  and 
id  has  since  gone  to  the  same  figure,  so  that  the  principal 
larkets  are  lower  in  their  rates  by  1  per  cent,  than  we 
the  directors  choose  to  sustain  their  quotation  at  6  per 
;  will  arise,  because  it  will  be  imagined  that  the  Court 
and  prudent  policy.  The  rate  for  first-class  paper  out 
sent. ;  six  months'  bills  have  been  negotiated  at  5  and  5i 
igh  there  may  be  a  pressure  in  the  early  da3rB  of  next 
onsequenoe  of  the  accumulation  of  resources,  soon  pass 
ittended  with  the  slightest  difficulty.  On  the  Stock 
i  for  short  loans  have  varied  from  4  to  2}  per  cent. ;  the 
is  about  3  per  cent. 

Ksk  market  has  been  dull  throughout  the  month,  and 
pradually  declining,  and  close  at  a  fall  of  about  |  per 
been  occasionally  slight  improvements,  but  they  have 
jily  sustained.  For  some  days  past  the  Government 
Lrchasing  New  Tliree  per  Cent.  Annuities,  and  has  also 
extensive  purchase  of  Exchequer  Bills ;  but  the  terms 
he  latter  have  not  been  accepted.  The  tone  of  English 
^er,  steady. 

xceptions,  the  dealings  in  foreign  stocks  have  not  been 
eneral  prices  showed  an  improvement,  though  not  to 
[tent.  The  Confederate  Loan  and  Mexican  have  been 
lactuations  in  the  former  being  caused  by  the  contnu 
America;  but,  on  the  whole,  the  latest  prices  were  satis- 


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424  Trade  qf  the  United  Kingdom. 

fa^ry.  In  Mexican  the  decline  has  been  about  1}  per  cent. ;  1 
ofcber  handy  Peruvian  have  improved  3  per  cent,  through  th 
oooflolidation  of  the  debt.    There  haa  beenaome  fluctuation  in  S 

The  market  for  railway  shares  has  experienced  severe  fluctua 
InAtance,  a  panic  has  taken  place  in  Great  Western  and  Metrop(dJ 
classes  were  too  high,  but,  after  receding  5  to  8  per  ceqjL  each, 
iigain  rallied.  The  dividends  may  be  considered  over  now,  and 
i-etrogression  in  prices  was  to  be  expected. 

Bank  shares  have  also  fluctuated  considerably.  The  reports 
respecting  some  banks,  and  the  amalgamation  of  others,  hj 
aliAnges  in  prices.  At  the  last  moment  the  quotations  wi 
Finance  and  Credit  shares  have  been  altogether  well  support 
fair  extent  of  business. 


TRADE  OP  THE  UNITED  KINGDOM. 

Thb  Board  of  Trade  returns  for  the  month,  and  twelve  months 
Silt  of  December,  were  issued  on  the  23rd  February,  but  as  r 
month,  they  do  not  contrast  favourably  with  previous  returns, 
the  year  the  balance  in  favour  of  1864  is  very  considerable, 
balance  on  the  year  is  to  be  attributed  to  the  general  satisfactc 
trade  in  nearly  all  branches,  but  the  falling  off  in  the  month  i 
be  put  chiefly  to  the  transactions  in  cotton  yam  and  cotton  mai 
and  so  long  as  the  war  in  America  continues  these  items  may  I 
to  present  unfavourable  aspects.  The  total  declared  value  of  ei 
for  the  month  of  December  last  was  £12,095,437,  against  £14, 
December,  1863,  and  £10,807,033  in  1862,  which  is  a  decro 
former  period  <A  £2,258,963,  but  on  the  latter  an  increase  of  i 
For  the  year  last  past  the  total  was  £160,436,302,  against  £1 
in  1863,  and  £123,992,264  in  1862,  which  is  an  increase,  as  com] 
the  former  period,  of  £13,833,960,  and,  as  contrasted  with  thi 
£36,444,038.  As  regards  exports,  there  has  been  an  increase  in  1 
ing  articles  : — ^Alkah,amiB  and  ammunition,  coal  and  culm,  mac 
wool ;  but  a  decrease  in  beer  and  ale,  cotton  yam,  cotton  mai 
haberdashery  and  millinery,  hardware  and  cutlery,  linen  yam,  lii 
factures,  metals,  thrown  silk,  silk  manufactures,  spirits,  and  woo! 
faotures.  With  respect  to  imports,  there  haa  been  an  increase 
flaxseed  and  linseed,  tallow,  cocoa,  sugar,  tea,  and  tobacco ;  bu 
in  raw  cotton,  flax  and  hemp,  hides,  leatlier  manufactures,  salt 
Bilk,  wool,  woollen  manufactures,  coffee,  spirits,  and  wine,  in  oe: 
has  been  an  increase  in  the  importation  of  oats  and  Indian  com; 
crease  in  all  other  descriptions.  In  the  case  of  provisions,  an 
shown  in  eggs  and  cheese,  with  a  falling  off  in  bacon  and  hami 
tod  pork,  butter  and  lard.  The  variations  in  the  chief  articles  a 
will  be  found  in  the  subjoined  tables  : — 


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Trade  of  (he  United  Kingdwn. 


425 


Exports. 


...     tons 

1863. 

1864. 

•••           ••• 

527,151 

659,032 

'8     ...           ■■• 

...    yards 

168,859,045 

131,876,650 

•••            ... 

...     lbs. 

7,030,469 

6,146,491 

nillinery  ... 

...  value  £ 

402,767 

326,216 

s    ...        ... 

...   yards 

18,268,975 

17,582,407 

...        ... 

...     lbs. 

3,669,199 

2,507,074 

...        ... 

...     tons 

21,140 

26,928 

...        ... 

••.       ft 

25,600 

25,009 

...        ... 

...    cwts. 

11.235 

11,397 

&c. 

...         n 

69,846 

62,442 



„.  gallons 

626,398 

852,706 

...  value  £ 

112,494 

99,999 

...     lbs. 

36,011 

30,184 

...  gallons 

345,357 

135,992 

••.             ... 

...    yards 

2,110,612 

1,822.571 

3d  yarn     ... 

...    cwts. 

2,421,025 

2,133,734 

IirPORTS. 


... 

...     lbs. 

1863. 

1804. 

296,441 

508,103 

•  •. 

«•» 

•"•       »» 

16,834,649 

8,793.654 

... 

...      qrs. 

1,634,954 

1,053,631 

lour 

... 

...    cwts. 

462,679 

222,076 

•■*       »i 

1,257,569 

1,208,239 

... 

216,875 

166,062 

...       ,, 

171,582 

94,905 

... 

...      lbs. 

763,820 

1,158.149 

res ... 

...    pairs 

812,1  T2 

840,020 

... 

...    cwts. 

197,610 

166,028 

!i. 

... 

*•*       ft 

159,307 

160,991 

ed  ... 

...     qrs, 
...     lbs. 

220,344 

241,272 

850,317 

667,136 

... 

18,321 

5,114 

••• 

309,049 

431,397 

...  gallons 

786,255 

694,887 

... 
... 

... 

...    cwts. 
...       ft 

...     lbs. 

494.760 

302,149 

19,752,639 

916,506 

338,001 

24.865,699 

... 

... 
... 

...       ff 

...  gallons 
...     lbs. 

14,766,011 

1,583,041 

21,924.475 

22,671.243 

1.129,773 

20,039,090 

ires... 

... 

...  value  £ 

148,596 

121,349_ 

33 


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426 


THE  GRAIN  TRADE. 

Tire  same  inactivitj  ^hich  has  for  some  time  prevailed  in  the  gnin  i 
htill  ormtinues.  Tliere  appears  liat  little  diBposition  to  operate,  eio  ,^_ 
ffupply  imiDecliate  wants,  and  as  the  supplies  oontinue  ampile,  particmartjr 
of  home-groiwD  samples^  there  is  nothing  to  cauae  smy  improvemeiit  m 
priott*  Wheat  haa  been  in  quiet  and  steady  demand.  Barley  hia  been 
taken  rather  less  freely,  and  oats  have  h««n  in  mo<lerate  request.  Tlie 
latest  official  ayemgo  prices  were  : — Wheat,  38*,  4<f .  per  qr* ;  barlvy, 
29j.  2d,  \)CT  qr, ;  and  oatfi,  19«.  1^.  per  qr. 

The  Gazette  returns  for  England  and  Wales  have  been  : — 

uui  I  npopoBif 
Week  Wheftt  Weeklj  Biz  Weeks 

Jan.      28  72,610       ...        38    6         ..,        1    0  ,„  41  3 

Fob.        4  83,620      .„        38    4        ...        1     0  „.  40  8 

„       11  6^918       ...        38    4         ...        10  ...  la  4 

„       18  ,,..  67,^*29      ...        38    4        ...        10  .„  40  8 

The  importations  since  the  harvedt  of  1864  have  been : — 

Wlieat.          Other  Grain.  ToIaI. 

Cwta.                 Cwto.  Cwt*, 

Twenty-serenweekB  ended  21at  Jan.         9,920,889  12,925,018  22,845,907 

Fonr  woekB  ended  18th  Feb. 636,732    1,606,584  2,242^16 

10,557,621  14,530,602  25,088,223 
And  the  weekly  aTorsM  have  l>een : — 

Twenty  jteyen  weeks  ended  2lBt  Jan. ...       367,000  470,000  846^ 

Foot  weeks  ended  18th  Feb 159,000  401,000  560,000 

Less    208,000         78,000         286^000 


STATE  OF  TRADE. 

The  state  of  trade  has  not  greatly  changed.  Some  of  the  cotton  speonli- 
Utn  at  Bolton  and  in  the  neigh boiirhoi34J  of  Lancashire  hare  soi^ieBtkd 
through  the  late  fall  in  the  staple.  Man ufactit ring  indnstry,  on  the  oilier 
hand,  however,  is  improving,  and  there  are  prospects  of  an  increved 
spring  and  summer  demand.    Business  in  most  departments  promises  to 

ICViTO. 


SPECIAL  HOTIOE  TO  CORBESFONDENTS. 

Ifs  htv  been  oompf!llod»  roucb  ugainst  our  deslTQ,  to  issoe  this  month  &ii«>thar  &i»Ut 
naiolbara  the  crowd  or  meetingii  to  be  doait  v?jth,  and  Uie  iiitereati&i| nature  of  Uio  prpciodiW 
raiiViilg  it  iiDpofcihIo  to  compre<^  tbein  iu  u  single  number.  The  valuG  of  me  Hiiatrn* 
M^wgint  Ml  •  work  of  refCTOiic^  muat  be  &&  ctouo  for  thus  appealing  Vo  the  indtilgaiM  d 
o«r  Teoden  imd  sabsoribort.    From  Indim  Chkntk,  and  Aoataulk,  w«  have  roouived  l«tttf» 


reqoeatiiig  thaii  there  tnny  be  no  omiatuoti  iu  ihii  reipect,  the  ptogrcas  of  bonldag 
in  libit  ooanttj  bung  watched  with  ^rrat  snxicty. 

BsrenU  eommtmioatiotui  ttaxid  over  for  want  of  qiace. 

r^«,.**w,,..i.,»..-  V.  ii»  jji]eiiiA0  forwwd  oomroanicfttiotmaddroeaad  iiPthe Editor,  Ko.S»9ii#d$ 
Lal  :iDd  orden  aa  uaual  lo  MaaBra.  CSroomtwidc*  and  8cma, 

IiOiidanWatL 


fici 


rlow  &ud  S<aia»  Cmtaaenf  Hall,  1 

j«qi>i.  AiracDOfsa.— It  will  bo  p«rofliTed  tntn  aotioe  a]aQwhtt«»  thiA  ^ 


Bdltor  of  tJbe  Ita,mttrf'  Magafins  ia  ooliflctuig  and  anwiguxg  a  nriea  of  H^i>^i«ir  and 
cio]  Aneodol«8,    Any  cootribtitioiia  ttvan  aabaezihtin  ana  readers  of  the  M^mumm  wfU  N 
tliatUtfallT  reoeired.  partiotilarlr  if  the  mMeet-niaUer  ahalJ  not  havo  tu^rioafily  vaomx^  b> 
print.    NoihiDg  peraonai  or  ofibnaiTv  will  receive  pablict»r. 

The  report  oTuia  AdtlpU  Bank  waa  rooelTed  too  late  ibr  iaaaniont  it  will  bt  poHUM 
aejitmiomih,  '^ 


Digiti 


ized  by  Google 


427 


BAKK  OF  FRANCE. 

DEBTOR. 


February  2. 

February  9. 

February  16. 

February  23. 

T.               C. 

182,600,000    0 

y.           c. 

182.500,000    0 

T.           c. 

182,500,000    0 

r.          c. 
182,600,000    0 

6,994,470  23 

7,007,296  24 

7,013,359    9 

7,016,323  38 

22,105,760  14 

22,105,760  14 

22,105,760  14 

*     22,106,760  14 

4,000,000    0 

4,000.000    0 
605,906,676    0 

4,000,000    0 
801,601,175    0 

4.000,000    0 
785,025,125    0 

6,780,382  76 

6,246,618  64 

6,859,523  42 

6.452,261  88 

86,605.076    8 

115.21:J.S23     1 

28,216.804    0 

3,210,368  76 

86,0«6,a?l  16 

129,309,601  97 

23,730,151     0 

2,574,848  76 

87,010,609  32 

116.517,162    2 

23.478.036    0 

2,301,663  76 

87.432.028  61 

124,657.o23  76 

25.578,311     0 

2,102,003  75 

4,267,876  46 

4,826,873  36 

6.261,360  65 

6.627,212  81 

2,789,441    5 
10,926,989  86 

1,286,066,600  33 

2,780,444    6 
9,897,778  60 

2,789,444    B 
11,968,471  97 

2.789,414    6 
9,101,049  61 

1,287,921,287  81 

1,272,417,136  41 

1,263.387.026  60 

CKEDITOR. 


Fehmary  2.        February  9.       February  16.       February 


».  c. 

818,454,492  94 

2^96,619  84 

322.560,428  27 
828,814,862    0 

13,806,031  66 
4,205,610    0 

14.925.600    0 
9,222,500    0 

28,027,300    0 
17.928,050    0 

523,400    0 
355,850    0 

60,000,000    0 

12,0^\750  14 
36,6iHi,737  91 

100,000,000    0 


8,403,o46    0 

208,008  18 
6,5uO,bl3  60 


l,2S6,0(J5,6UU  33 


339,240,643    4 

M3,664    0 

328,857,706  40 
307,416.199    0 

12,470.931  66 
4,248,210    0 

14.584,100    0 
0,205,400    0 

27,734,900    0 
17.573,760    0 

622,600    0 
631,150    0 

60,000,000    0 

12,OB0.750  14 
30,096,737  91 

100,000,000    0 


8,403,546    0 

221,800    6 
6,754,389  71 


1,287,921,267  81 


».  c. 

361.673,163    4 

7,673,600  67 

299,239,776  99 
305,900,282    0 

12,576,931  65 
3,935,000    0 

14,301,200    0 
8,623,600    0 

27.809,800    0 
16,869,850    0 

520,500    0 
322,150    0 

60,000,000    0 

12,080,750  14 
3O,00ti,737  91 

100,000,000    0 


8,408,695    0 

223,930  66 
2,801,268  66 


1,272,417,135  41 


V.  c. 

871,630,673  10 

607,898    8 

289,959,172  60 
29^1.935,928    0 

12,067,«1  56 
3,395,100    0 

14,102,900    0 
8,30d,900    0 

27,305,900    0 
16,75^1,350    0 

53^4,200    0 
320,550    0 

60,000,000    0 

12,9s0,750  14 
36,050,737  91 

100,000,000    0 


8,408.845    0 

460.016  55 
6,057.375  68 


1,263,387,025  50 


Digiti 


ized  by  Google 


1 


428 

FLUCTUATIONS  IN  ENGLISH  AND  FOEEIGN  STOCl 
RAILWAY  SHARES, 


Price  on 
Jazi.28th. 

night^t. 

Lotrut. 

Enqlish  Funds. 

Consols           

89itoi 

891 

8&i 

Exchequer  Bills        

partoSpm 

8  pm 

4  pm 

FoBBiGN  Stocks. 

Brazilian     * 

_ 

101 

100 

Buenos  Ayres            

_ 

92 

rK)i 

Chilian            

— 

lOli 

lOOi 

Dutch  2i  per  cents 

— 

G3J 

02  g 

Mexican          

28 

28f 

261 

Peruvian  4)  per  cents. 

83 

86i 

Slf 

Russian           



m 

91 

Spanish           

Turkish  6  per  cents. 

m 

91 

48J 
92 

4TI 
91 

Ditto  4  per  cents. 

99 

101 

lOOf 

Railway  Shabss. 

Brighton         •••        •••        ••• 

108i 

110 

103 

Caledonian      

132f 

lU 

131 J 

Great  Eastern            

46i 

4T| 

46 

Great  Northern         

136 

135 

1301 

Great  Western           

82 

83 

72i 

Lancashire  and  Yorkshire    . . . 

117J 

1183 

116| 

London  and  North  Western... 

123 

123i 

119i 

Midland          

139 

139J 

136i 

North  Staffordshire 

80i 

8U 

80 

South  Eastern           

88^ 

831 

mi 

South  Western           

99 

99} 

98| 

York,  Newcastle,  and  Berwick 

114 

116 

lllf 

York  and  North  Midland    ... 

1041 

106 

102| 

East  Indian 

101 

102 

lOOj 

Northern  of  France 

— 

39} 

zn 

CREDIT,  FINANCE  AND  DISCOUNT  OOMPi 


AoBtralian  Mortgage,  Land 

and  Finance  (Lim.) 
Consolidated  Discount  (Urn,) 
Ck)ntract  Corporation  CLini.) 
Credit  Foncier  of  Maoritios 

(Limited)     

Cx^dit  FoDcier  and  Mobilier 

of  England 

Ditto  

DiBCoont  Corporation  (Lim.) 
Bast  India  Fmancial 
Bgrptian  Commercial  and 

!muling       

English  and  Foreign  Credit 
Financial  Corporation 
Financial  Dictcoont  (I  im.)... 
(General  Cre<lit  and  Finance 

of  l^ndon  (Lim.) 

InteniBtional  Financial 


Society  (Lim.) 
International  " 


Contract 


Bhsrc. 

Paid. 

latest 
PricM. 

1 

1 

« 

25 

3 

8 

60 

10 

6 

100 

6 

Si 

60 

10 

... 

20 

6 

9 

20 

8i 

7 

100 

20 

16i 

60 

7i 

6 

20 

4 

^ 

60 

7i 

6 

100 
60 

2 
10 

4 

23 

4 

H 

20 

6 

^ 

60 

10 

al 

Imperial     sud     Meroantile 

Credit  (Lim.) 
International  L^ad  Credit  .„ 
Joint  Stock  IHscoiuiti  fbtm.) 
Land  Cnhlil  of  Ireland 
Land  Secnritiea 
London   Financial  Aaao^a^ 

tion  (Lim.)   ..* 
London  Mt^r^ntUQ  BUi.coaiil 
Kaoritiua  hand.  Credit  anrl 

Agencjr  (Lim.) 
Kationaf  BiAcotint  Co,  (Lim.) 
National  Irinancisl  (Uni.) .'. 
Oriental  FinMiciu-l 
Ottoman  Financial  Awiodii' 

tion  (lim J    ...        

Soci^t^  FiELiindalre  d^Kg^p^'i 

(Lim.J ™ 

Sonth  AfWmn  Monga^  auJ 

InvesLmeut  (lAtti.),4, 
Wazraot  Finan^  {Urn.}    »<. 


Digitized  by  LjOOQIC 


429 


JOINT-STOCK  BANKS. 


Ldfkdoa 


£0 

128 

26 

03 

Sfi 

91 

10 

8 

25 

» 

10 

»* 

0 

7i 

124 

IS 

10 

8 

40 

74 

40 

73 

S6 

Slixd 

£0 

1&3 

(t 

H 

£5 

^4 

7t 

61 

ao 

15xd 

10 

17 

S5 

m 

10 

m 

60 

46 

U5  171 

30  SI 

26  M 

«0  )l$l 


II 

IS 

I? 

4ixd 

m 

14* 
SSI 

If 

n 

s 


IfOndcKH  Bank  of  Mexioo  mod 

Soath  America  (Lixnited) 
London   Baalc    of  SooUaiul 

(Lim,)  - 

London  and  B7»«iliAn  Buxk 
Loadon,  Birmingham  A  Sth. 

StafforrlBhiro  (Umitdd)   „, 
London,  Bnenos  Ayr&i  and 

Bi%'€rr  PlAte,  Llnuted 
Ditto,   New,    issaed    at 

Ifprn ,        „.      tS 

London  Chartered  of  AnffferaUA    HO 
London  und  firranty  Bank   ..     60 

K  a,r. 

Loii  i  ckBank  .., 

Lomif'fi  iV  ri.urii  AfticiinBk, 
l^ondon  find  Boutb.  Weat^m 

CLStoit^i*      

^        '  ..TV»-.r..vi.-l;:  fL.r.i,  ) 


60 


100 
100 


100 
100 


100 
00 


Hotropolitau  and  nvvindal 

Ditto,  New- 
Mid  land  Bank  (Lfmiied)    .«. 
Notional  Bank 

Ditto,  New 
National  of  Liverpool  fljim.) 
National  Pruvinelftl  Bank  of 
En«'ta.nd 

Ditto,  N«w  ♦ 

DItt  i,<lltto  


Npw 
Ncv\ 


Nort 

Oi'iv>' 

Frmnnc'.jiJ    BnnkiTtff    Ccrrpo- 

r.ir*Mn    .  ,,. 

Pru". :  ijf  irulond... 


I 


:^piil. 


lOO 

100 
lOO 


likCorpom* 


and  Delhi 


Ditti 

BOMtli   A, 

South  Eiiiikm  (LLm.) 
Btuud^u-d  uf   BriiLII«U  Atticn 

(Limltod)      

Dltl«'j  ditt-i 

1)0.  New.  twm^il  aL  fl  pm* 
Union  Bank  nf  Australia  .„ 
Union  Bank  of  Iroltind,  Lim. 
Uxiiou  Bauk  of  Luadoa 


100 

K30 
100 
60 

100 

100 

ao 

20 
30 

10 

10 

ao 
ifi 
u 

so 

100 
10 

to 

£0 

2$ 

100 
1011 
100 
26 

im 

GO 


IS 
40 


40 


20 
10 
20 
S6 
10 

20 
10 
20 
90 
20 
10 

42 

12 
12 
20 


26 

10 

10 
3 
26 

10 

26 
2ft 
10 
25 
22 
16 


9\ 

7* 
4£xd 

19 

47 


10  11* 

30  231 

20  74ixd 

W  10| 

16  474 

20  21 1 


2U 
6 
06 

n 

m 

10 

m 

oaxd 

861 
171 

157 

40 
43 


1 
1 

6  0 

26        M 


U 


87 


11 
24 

m 

lU 
62f 


M 


Digitizecfl 


Bank  of  enfflanlf  2Btefelp  3Rttuntd. 

Aoamnt,  parsnant  to  the  Act  7tli  and  etli  of  Victoria,  cap,  32,  for  the  Woeka  ending  aa  folJ 

ISBXTE  DEPARTMENT. 


\SG5. 
Feb,  1. 

Fel».  8, 

Feb,  16.        FA, 

Kotetluned 

Govenunetit  debeatores         .., 

Other seciiritiea  ...        ».       

Ciold  coin  nnil  btillion k. 

Bilrer  bunion       ..-        ,. 

ll»Ol  6,100       11,015,100 
3,634.900  f      3,631,000 
n,734,36S  \    13,771,230 

1 

1U015,100      IMI 
13,7S2.415      18^ 

S9,Sa4,3rt5  '    S»A21.230 

28,481,415  1   fM 

BANKINCf  DEPAETMIiiNT, 


Proprietors*  capital      

H«st 

Public    depoaita    i,tnc1tidln«   Eitchequ^r 

fiavlnvA  iSKtikB.  CnmiQiMintii«rB  of  KaUoUuU 

l>cbt,  nnrl  T>lvUl<'tid  Accoiuit«] 
Other  BepositB     ... 
Be«reu  day  atid  other  biU* 


IHOJ. 

Feb.  1. 


£ 
U,fifi3,000 
9,fil4,:j83 


U,447.0IH 
4e6,42« 


ltH,6!i3,l£7 


IS«5» 
Feb.  8. 


£ 
14,553.000 
3,e08«95d 

13.S14,06$ 
4(K),»50 


8H.fla2,85<> 


1806. 
Feb.  16. 


14,5-^.000 
6.572,^:3 

13.Pe9.Cl59 


39J7^,fNlS  I 


Govemnjent    Secitrities    f including 
Bead  Wetirht  AjanuitiOA) 

Other  Beciirltic* 

Not<»         

Gi^ld  and  Silver  coin 


11,023,211 

18.920,772 

7,S52.3in 

738,869 


11,023.211 

18.787,891 

8.141,375 

740.381 


11,023.211 
l^,^!^.l«i8 
8.4t>7.310  I 
771,4«« 


3!i,52^»l57      3.S>603,»68      3J»,17ei.9fiS 


THE  EXCHANGES. 


Feb.  3. 

Feb.  10. 

Feb.  17. 

1 

ATn«it<?rdam,  hhort 

11    IS 

11     15 

11     ISA 

Ditto      3  months        ...        «» 

11    IS 

11  la^ 

11  m 

n   ii3»| 

Hottordiun,  tlJlto...        , ♦« 

11    Ifl 

11   1-^ 

Antwerp,  ditto     .,, 

IS  m 

S&    fiO 

3&  ao 

BniH*e1a,  ditt4>      ...        ,«        — 

U    fiO 

u   «) 

25    fiO 

Hamburg',  ditto *..        *„ 

19      7i 

13      7i 

13      7| 

PwU.  fthort 

M    90 

2o    3t) 

sa  ao 

PftriA,  3  montba  „.        ..        

25    47( 

U    60 

»    «£ 

Mamnllcs.  ditt.* 

U    HI 

S^    50 

^..f* 

Frankfort,  ditto  ,. 

Vienna.  <litto 

Ufff 

n    rt74 
11    till 

.n 

mi 

Trieste,  ditto 

11    00 

a  tts 

Pefcersburgh,  ditto 

mi 

aot 

304 

Madrid,  ditto 

47 

47 

474 

Cadix,  ditto  

47 

*7L 

L6«(hora,  ditUt     .., 

555    t« 

ss  o 

&  m 

^ 

Milan    ,.        .„    „ 

25    (t!E| 

3iS    «r 

9»   40 

Genoa,  ditto  „*    „, 

2fi    03f 

15    ffil 

S5   40 

Kaple*,  ditto  ..                         

Palermo,  ditto                           

35   Qse 

as  m 

WS   90 

Z5    H2 
25    02} 

29  e£ 

u  m 

Mes&ina.  ditto                           ...        ... 

35    Itt^ 

26    00 

) 

Lisbon  ,.        *« ^ 

Oporto , .*       -^ 

Ml 
Ml 

51} 

&1I 

51 1 

PRTCBg  OF  BULLION. 


Forelim  Gold  la  Bftn  (Staadftid) 
Si  Iver  in  Iliirj*  ( 5  tundtrd) 


PerOis. 


PcrOi. 


FcrO*, 


ir  a.  d. 
a  17   tJ 

0    U    0 
0    0    0 

1     £  *..  d, 

'     3  17    0 

0     0    0 

0    0    0 

£  t.  d, 
;»  17    0 

0    0    0 
0    (f    0 

Digitized  by 

t7  ^S  Victoria,  c,  32/  extracted  from  the  London  Gazette. 
PRIVATE    BANKS. 


lANK. 


j  Author- 
I      ized 
Issue. 

I 


eswadc  Bank  . 


AVERAGE  AMOUNT. 


Jan.  14. 


tlshire  Bank  ... 
-Attwoods&Co. 
rpons  and  Co.... 
and  Co 


enorth  Bank  ... 
lank 


ton  Buzzard  Bk. 
Lloyds  &  Co.  ... 


nk   

fficld  Bank 

Bank 

Lortlock  &  Co. 
ibridgeshireBk. 


;x  Bank  ...„ 
eedy  &  Co, 


ocks  &  Co. 


rs.  Evans  &  Co. 
\i  and  Co 


ire  Bank    

d  Ketford  Bank, 


ik    

-Robins  &  Co. 
-Bower  6c  Co. 
's  Stortford  Bk. 


lardy  and  Co.. 
>on-UuU  Bank 
ScCoantyBank 


bin  Bank 


£ 

11,849 

48,461  i| 

37,22311 
17,182,1 

34,218! 
27,090 

23,6951! 
75,069,1 
15,161 

10,0:8 

48,-77:1 

26,717' 

29,657' 

82,362|i 

43,4571' 

55»»53|' 
36,82911 
38,816!' 

68,27iil 
33,79411 

12,745)1 
3,201  I 

25,744'' 
49,9 » 6 11 

33,671  I 

23,597  I 

3,436! 

25,082 1! 
48.704  j 
49,869! 
12,045 
21,527 
77,154 
9,387 
13,332 

4N304 
27,237 
20,674 
10,657 
77,400 
86,218 
10,664 
48,807 
112,280 
53,392 
69,637 
37,894 
14,202 
6,681 
6,322 
14,524 
30.372 
19,979 
56,59* 
5,778 
38,764 
21,901 


£ 
11,472 

23»>79 
18,436 

3,730 
28,962 
14,650 
21,746 
69, 105 
14,994 

5,811 
21,897 

15,^93 
19,806 

51,723 
25,328 
19,647 
34,623 
28,239 
45,009 
23,569 
12,457 
3,082 
13,724 
41,780 

30,345 

15,821 

3»ioi 

17,389 
31,192 
29,673 

5,149 
15,818 
66,620 

6,547 
10,851 
32,888 
27,670 

6,515 

9,873 
58,342 
83,813 

7,156 

35,935 
88,671 

52,405 

36,577 

21.383 

6,220 

6,015 

4,885 

10,887 

24,791 

19,149 

34,749 

31,951 
30,174 


Jan.  21.   Jan.  28. 


£ 

11,597 
23,867 
18,696 

3,605 
28.857 
14,477 

21,552 

j  68,504 

14,646 

6,434 

22,273 

19,881 

51,419 
26.485 

20,943 
34,347 
28,701 
43.783 
24,045 
1 1*654 
3,506 
14,181 
40,244 

29,545 

15,778 

3»Ji2 

17,065 

3',*95 
28 , 640 

4,950 
16,276 

65,793 

7,009 

10,076 

30,782 

28,  729 

6,740 

10,548 

60,721 

85,278 

6,936 

36,758 

88,040 

53,227 

37,co5 

23,048 

5,977 

5.486 

4,894 
10,545 
23.699 
18,006 

35,350 

5,085 

33,>75 

20,000 


'»,333 
23,570 
19,883 
3.420 
28,487 
13.947 
20,897 

66,545 

14,3»7 

6,328 

21,008 

15,459 
I 9 , 400 

50,349 
25,432 
19,633 
35,326 

27,579 
42,407 
23,541 
11,349 
3,054 
»3,373 
39,229 
28,803 

14, 2CO 

2,954 
17,587 
30,689 
28,408 

5.297 
16,270 
66,243 

6,982 
10, 201 
29,243 

26,745 
6,610 

9,992 
61,957 
84,  505 

6,617 

37,140 

88,028 

52,097 

36,412 

22,750 

5,770 

5,367 

5,3«8 

9,714 

24.673 

18,886 

37,071 

5,»09 

33,039 
I  20,220 


Feb.  4. 


£ 
11,820 

23, H5 
20,059 

3.211 
28,503 
14,092 
19,041 
64,325 
14,256 

6,072 
20, 725 
14,892 
19,718 
52,447 
24,643 
19,321 
35,579 
27,804 
42, 798 
23,658 
11.035 

2,594 
13,425 
39,879 
28,892 
14,084 

3,156 
18,094 
30,796 
28,850 

5,302 
16.356 
65,773 

7,556 
10,591 
29,099 
25,186 

6,654 
10,070 
^4,233 
82,259 

6,462 

36,783 
86,410 

51.367 

37,570 

21,811 

6,423 

5,»85 

5,371 

10,278 

24,142 

20,c68 

35,236 

5,275 

33,747 

20,969 


Digitized  by  VjOOQIC 


432 


WEEKLY   BETURN8   OF    BANKS  OF    ISSUE. 


NAME  OF  B\NK. 


58  Ipswich  &  Keedham  Market  Bank 

59  Kentish  Bank— Mercer  &  Co.  ... 

60  Kington  and  Radnorshire  Bank... 

61  Knaresborough  Old  Bank  

6z  Kendal  Bank    

63  Longtoi  Staffordshire  Bank 

64  Leeds  Bank  

65  Leeds  Union  Bank 

66  Leicester  Bank 

67  Lewes  Old  Bank 

68  Lincoln  Bank  

69  Llandovery  Bank&  LlandiloBank 

70  Loughborough  Bank   

71  Lymington  Bank 

72  Lynn  Regis  and  LincolnshireBank 

73  Lynn  Regis  and  Norfolk  Bank 

74  Macclesfield  Bank 

75  Manningtree  Bank 

76  Merionethshire  Bank 

77  Miners' Bank    

78  Monmouthshire  Agricultural  and 

Commercial  Bank 

70  Monmouth  Old  Bank 

80  Newark  Bank  

81  Newark  and  Sleaford  Bank  .. 
8j  Newbury  Bank 

83  Newmarket  Bank 

84  Norwich  Crown  Bankand  Norfolk 

and  Suffolk  Bank 

85  Norwich  and  Norfolk  Bank  .. 

86  Nottingham  &  Nottinghamsh.Bk. 

87  Navnl  Bank,  Plymouth  ...;.... 

88  NewSarumBk. — Pinckneys^Bros. 

89  Nottingham  Bank    , 

90  Oswestry  Bank     , 

9"  Cxford  Old  Bank 

9»  Cld  Bank,  Tonbridge 

93  Oxfordshire  Witney  Bank 

94  Pease's  Old  Bank,  Hull  

95  Penzance  Bank    , 

96  Pembrokeshire  Bank  

97  Reading  Unnk — SimondsiCo.. 

98  Reading  Bk.— 8tcpheiit,BUndy«cCo. 

99  Richmond  Bank,  Yorkshire    .., 

100  Rochdale  Bank    

101  Royston  Bank 

loi  Rugby  Bank 

103  Rye  Bank ,... 

104  Saffron  Waldon&  North  Essex  Bk! 

105  Salop  Bank  

106  Scarborough  Old  Bank   

107  Shrewsbury  Old  Bank 

108  Sittinsrbourne  and  Milton  Bank  . 

109  Southampton  Town  &  County  Bk 

no  Southwell  Bank 

» 1 1  Southampton  and  Hampshire  Bk. 
H2  Stafford  Old  Bank  

113  Stamford  and  Rutland  Bank 

1 1 4  Shrewsbury  and  Welsh  Pool  Bank 

115  Taunton  Bank 

116  Tariitock  Bank  ''' 


Author- 
ized 
Issue. 


£ 
80,699 

19,895 
26,05c 

II.825 
44,663 
5,624 
53,357 
37,459 
3*»3»^ 
44.836 
100,342 

3»,945 

7,359 

5.038 

42,817 

13,917 

15,760 

7,692 

10,906 

18,688 

29.335 
16,385 
28,788 
51.615 
36,787 
23,098 

49,671 

>05,5i9 

10,866 

27*321 
'5,659 
31.047 
18,471 
34,391 
13.183 
11,852 
48,807 
1 1,405 
12,910 
37.5'9 
43.27 » 
6,889 
5,590 
16.393 
17.250 
29,864 
47.646 
22.338 
24.813 
43,191 
4.789 
18,589 

14,744 
6,770 
14,166 
31.858 
25,336 
29,799 
13,421 


AVERAGE  A 


It, 


55 » 343 
17.461 
16,21? 
io,c35 
39*665 

55*773 

35iO;2 

26,679 

30j  506 

^9,457 

11,799 

7,1*9 

3i374 

30,366 

12,711 

12, 77^   I 

5i7o5 

7.316 

18,844 

30,965 
3,665 
21 p 705 
45iJ37 
13^49* 
17,061 

47,877 
82,555 

7.77* 
23,977 

7,892 
14 1 100 

9,141 
32,172 
10,819 

9,107 
45,931 

9,fc3x 
^0,760 
25, 781 
28,465 

5,626 

1,460 
'0,185 

9i573 
11,087 
22,723 
10, 81*; 
23,088 
34.238 

3»534  I 
ii»c54  ,, 
8,664 
2»44i  , 
13*787 
18,430  I 
20,461  < 
20,739  I 
10,071  ^ 


Digitized  by  LjOOQIC 


:klt  returns  op  banks  o?  issue. 


433 


JJK, 


1 1  Author- 1 
Issue. 


ishire  Bank...! 
itering  Bank..] 
lesbam  Bank..! 

k  

irall    


rickshire  Bank 
somerset  


rd  &AltonBk. 
nk 

erbyshire  Bk. 
tolDshiro  Bank 


R.  &W.  Fryer, 

oik  Bank | 

,&  Suffolk  Bk.; 


£ 

10,026 

13*470 
»i»559 
»3t53i 
10,801 
17,003 
25.136 
17,064 
3o,«;o4 
6,528 
46,158 
14,258 

25*892 
16,461 
37,602 

59,713 
7,602 

87,448 
11,867 
53,060 
13,229 
46,387 


Jan.  14. 


AVER^iGE  AMOUNT. 

Jan.  21.   Jan.  28.  ,  Feb.  4.| 


£ 

6,838 
",505 
IJ,444 
12,704 

5>794 
16,540 

8,287 

5,980 
i8,8h8 

2,584 
39.229 
14,160 
11, 169 
16,422 
35»56i 
37,67c 

4)490 
52,152 
10,303 
42,808 
»ii350 
38,796 


£ 

7,343 
11.303 
10,755 
13.745 

5.838 
16,608 

8.390 

6.368 
19.350 

2,589 
40,236 
14,027 

16,283 
34,041 
37,990 
4.313 
52,936 
10,713 
42,996 
10,723 
38,974 


JOINT  STOCK  BANKS. 


nd 

ompany    

ompany    

king  Company 


il  Banking  Co. 
id  Staffordshire 

Co 

jrbysh.Bk.  Co 
Banking  Co.. 
cksbireBk.Co. 
king  Company 
jr  Banking  Co. 
nd  BankingCo. 
strict  Bank  ... 
mwich  Bk.  Co. 
re  BankingCo. 
itStockBk.Co. 
king  Company 

Bank 

ng  Company... 

3»ny    

I  Banking  Co... 
field  Union  Bk. 


Drapany  

I  ClaroBk.  Co. 

Company  

ing  Company.. 

\j  Banking  Co.. 

and  Warwick 

Co 

ry  Bank 

B  Notts.  Bank... 
tts.  BankingCo. 
Bk.  of  England 
Qg  Company  ... 


12,225 
9.563 

49,292 
9,418 

32,681 

20,084 

60,701 
10,421 
35.395 
2^,734 
16,251 

'44.35- 
25,61c 

19,972 
37,696 
20,093 
26,134 
•55.92c 
1^534 
37.354 
29.333 
13.733 
44-137 
1.503 
28,059 

64.311 
86,060 
51,620 

13,875 
10,215 

35.813 

29,477 

442,37' 

63,939 


10,452 
8,790 

48,023 
9.343 

27.455 


50,75* 
8,556 
32,524 
15.949 
12,525 

102,921 
24,201 
20,152 
31,720 
19,065 
20,730 

134,899 
16,445 
34.764 
28,570 
11,561 
36,870 

1.499 
24,004 

52,929 
58.495 
49,485 

10,870 

8,015 

26,321 

413.114 

,  38.780 


10,739 
8,898 

49.019 

8,931 

28,788 

20, 780 

48,575 
8,785 
32,027 
16,230 
13.990 
103,010 
24,075 
19,741 
32.449 
19,082 
20,367 

136, 5'7 
16,984 
36,271 
28.408 
12,156 
38,556 
'.525 
24,429 
52,561 
59,984 
49.170 

10,701 

8,461 

26,461 

25.613 
411,189 

38,657 
I 


£ 

7,145 
10,475 
11,470 
13.492 

5,658 

15.994 
8,620 
6,320 

18,980 

2,399 
41,162 
14,104 
11,158 

17,082 

34.A51 

37,845 

4,000 

51.846 
10,652 
41,640 
10,634 
38,318 


10,234 
8,839 

49.787 
8,ioS 

29,165 

19,642 

45,4^9 
8,897 
30,397 
15.914 
13,118 

102,375 
24,265 
19,881 
30,841 
18,698 
20,292 

^34,773 
16,534 
34.758 
27,463 
12,2^3 

38,356 

1,495 

24,681 

5».779 
60,760 

48,909 

10,899 

8.525 

25,436 

25,909 

402,025 

37.703 


£ 

6,859 
io,6S8 

*i.925 
13,108 

5.907 

16,677 

8,809 

6,249 

18,239 
2,298 

41,705 
13,986 
11,022 
15,886 
35.492 
37.665 

3,351 
50,896 

9,948 
41,906 
10,255 
39. »55 


10.437 
9,032 

49,663 
8,203 

30,433 

19.156 

45.441 
9.738 
27,261 
14.766 
12,970 
101,110 
24,142 
19,960 

29.173 
18,786 
20, 170 

'36,475 
16,285 

34,339 
27,594 
11,813 
36,695 
1,490 

24.279 
54,650 
60,674 
48,474 

10,890 

7,734 

27,861 

25,178 

395,570 

38,430 


Digiti 


ized  by  Google 


434 


WEEKLY  RETURNS  OF  BANKS   OF    ISSUE. 


KAME  OF  BANK. 


35  Northamptonshire  Union  Bank  ... 

36  Northamptonshire  Banking  Co.  ... 

37  North  and  South  Wales  Bank 

38  Fare's  Leicestershire  Banking  Co... 

39  Saildleworth  Banking  Company  ... 

40  Sheffield  Banking  Company 

41  Stamford,  Spalding  &BostonBk.Co. 

42  Stuckey's  Banking  Company   ... 

43  Shropshire  Banking  Company... 

44  Stourbridge  and  Kidderminster  Bk. 

45  Sheffield  and  Hallamshire  Bank  ... 

46  Sheffield  &RotherhamJt.  Stock  Bk. 

47  Swaledale  and  Wensleydale  Bank.. 

48  Wolverhampton  &  Staffordsh.  Bk 

49  Wakefield  and  Barnsley  Union  Bk. 

50  Whitehaven  Joint  Stock  Bank    ... 

51  Warwick  and  Leamington  Bk.  Co. 

52  West  of  Eng.&S.  Wales  DistrictBk. 
Si  Wilts  &  Dorset  Banking  Company 

54  West  Riding  Union  Banking  Co.... 

55  Whitchurch  and  Ellesmere  Bk.  Co. 

56  Worcester  City  and  County  Bk.Co 

57  York  Union  Banking  Company  ... 

58  York  City  and  County  Banking  Co. 

59  Yorkshire  Banking  Company  ... 


Author- 

AVERAGE  AM 

iced 

iHsne. 

Jan.  14. 

Jan.  21. 

Ja 

£ 

£ 

£ 

84.35^5 

61,852 

*i.475 

63 

26,401 

'9.575 

«9.720 

»S 

1  63,95 » 

57,330 

56,190 

5^ 

59.300 

53,987 

54, 105 

SI 

8,122 

335 

335 

1  35.843 

36,375 

37,207 

3. 

!  55.721 

4^I95 

48,224 

4' 

356,976 

300,922 

302,120 

29. 

47,951 

38,874 

39,^98 

3i 

56,830 

53,596 

55. "9 

5^ 

23,524 

22,098 

23,081 

2, 

52,496 

49*963 

50,076 

5 

1  54,372 

47,570 

48,311      4* 

1  35,378 

30,4C'4 

31,200       2< 

'   14,604 

14,830 

14,806        1^ 

31,916 

22,250 

23,066        2J 

37,124 

26,962 

26,547        2< 

83,535 

80,492 

80,419      7- 

76,162 

73.071 

74,358  ;  7- 

34,029 

35.3>o 

33,817      3C 

7,475 

5.310 

5.064         A 

6,848 

3.H2 

... 

71,240 

70,703 

71,014      7c 

94,695 

90, 107 

90,384  !  8« 

122,532 

120,780 

121,700 

122 

iriiif)  anil  S>totth  Ci'rrulation  Sletut 

Average  Circulation ,  and  Coin  held  by  the  Irish  and  Scotch  Bakki 
weeki  ending  Saturday ^  the  4th  dag  of  February,  i865. 

IRISH   BANKS. 


NAM!  or  BANK. 

Anthorited 
CirenUtioB. 

Artragc  Circulation  darinf  Poar  W( 
eodinf  at  aboTc. 

upwards. 

VaitrJti. 

Tol 

Bank  of  Ireland 

£ 
3,738.428 
927,667 
281,611 
243.440 
311.079 
852,269 

£ 
1,408,475 
377,764 
110,073 
86,805 
'53.322 
547,287 

£ 

1,076,050 

486,161 

265,299 

325,330 
f66,6o6 

i 
2,484 

Hi 
420 

478 
1,113 

Provincial  Bank  of  Ireland 
Belfast  Bank   i 

Northern  Bank  ' 

Ulster  Bank 1 

The  National  Bank 1 

Totals  (Irish  Banks)  ... 

6,354.494 

2,653,726 

3,029,982 

5.7^3i 

s 


Bank  of  Scotland   

Royal  Bank  of  Scotland    ... 

British  Linen  Company 

Commercial  Bk.  of  Scotland 
National  Bank  of  Scotland.. 
Union  Bank  of  Scotland  ... 
Aberdeen  Town  and  Co.  Bk. 
North  of  Scotland  Bk.  Co... 
Clydesdale  Banking  Co.   ... 

City  of  Glasgow  Bank  

CaledonL-in  Banking  Co.  ... 

OentralBankof  Scotland...! 

ToTALU  (Scotch  Banks)...! 


COTGH    BANES. 

300.485 

168,042 

298,664 

466, 

216,451 

189,512 

3J8,129 

507. 

438,024 

162,993 

302,573 

465. 

374.88ci 

185,202 

342,419 

5»7, 

297,024 

161,720 

286,242 

447. 

454,346, 

20^,224 

376,485 

579. 

70,133 

53.582 

74.74» 

::8. 

154. 3>9 

93.«72 

104,215 

»97. 

274, 32« 

>3^5^3 

221,047 

353. 

72,921 

'39.192 

224,442 

3J3, 

53»434 

>9,835 

47, 720 

67, 

42. 93 3 j 

19,346 

32,573 

5»« 

a. 749. 27 '1 

», 528, 323 

2,629,250 

4.»57. 

Digitized  by  LjOOQ  IC 


CIRCULATION  EETURNS, 


435 


WEEKLY  RETURNS   OF  BANKS   OF  ISSUE. 

Tix6d  Imnm,'    Jau.  11.      i     Jan.  21.     ;     Jon.  28,      i      Feb.  1. 
£4,ai2,t86  '£^,091,298  £3,105,176  )£3.058,23}  £3,0+1,9*7 
3,226.357      a,8oo,426      3»8i5/*33  1    a.78^99S      2,749»^9<> 


n  of  fhwe  Banks  for 

£»,074,I5ft 

2,78^,089 


7,439t»43  ,   5.S9'*7Hi   5.9^0.809,!   £.845,1311   S,79h^^^ 

And  M  compared  with  the  month   ending 
rebmarsT  6tb,  1«64,  it  abowa:— 
A  di!crea»e   In  riie  nobM  of   PriTt^ 

BunkA,of,. £180,598 

A  i/<Nrri'(u«  in  the  notes  of  Joint-Stock 

Bftnkft,  of ,        110,427 

Total  iJefTftue,  9*  r*ompared  with  the 
satno  period  or  laet  year        ...        ..    £S41,026 
Til  a  rolkmui^;  is  the  comparative  itftta  of  the 

clrculntiqn  as  re^iurda  the  fixed  i»suea :— 

The   Private   Bonks  are  below  their 
fixed  issues         £1,199*627 

The  Joint-Stock  Banks  ara  btUfto  their 
fixed  i&sttea        433.868 


ofPrirHt© 
9ndin^  as 

Krr«  with  thi*  Rotiima 
th  laat,  it  iihowa : — 
Dt  Private 

£U4,7B3 

olfit-Stook 

50,W9 


tb,.. 


j£i<U,4» 


Totnl  BKurw  their  fixed  iasaea       ,ȣ  1^^70,895 


RISE  &  SCOTCH  RETURNS  TO  FEBRUARY  ♦,  1865. 


ion  of  U16  TriBh  and 


atioii 


!jkA 


at  M '^  •  - 

it  1: 

VI  il- 
ls 11>    . 
ocmi 

Scototi  H'\ 
nntiwith  the  Retonui 
an.  last,  they  show*^    ,    f^^^^i  31^,, 

if  Scotchiiank&  im.iHB 


rUh  Banks  M713,70H 
cotch  Bank*  4,W7./i7fl 


rtheee  banks 

., £i>.S7i»2^ 


The  fixod  i«saes  of  the  Iriah  and  Scotch  Banks 


■ire  giTflU  in  tho  Bunkiu^ 

iwedtotfisne  ..  £BMi.4iai 
,  tiilo wed  to  is8a«     2,ri»,271 


.  allowed  to  i 


£<r,l08,7lKi 

'  icf*  to  be  the 


nth   £116,339 

Bank«    eKI,-lfi.1 
th  Daaka  70,149 


Tl  . 
beii- 

GuM  unrlf^ilveri 
aoldaudSLlvcrl 


lie  «     i;7*l7.f.U» 

1  aUver  held  »fc  tiie 
ika,  dtuin;^  tho  piiAt 

.UBrtnt*L£'i.l32.Sf)0 


£n«,tni 


Toti^l  of  Gold  and  SUver  Coin XIMITAI* 

Befn?  t»  rlrrrrn^^of  £Sk1,023on  the  pnrtof  tho 
Irudl  ■  ncrcirwn  of  £7»<)0<>  rm  th« 

[    hel'i  '  i  ii*!  precoillugiuontii. 


)F  THE  UKITED  lUNGUOM  TO  FEBRUARY  4,  1S65. 
lAte  of  Iho  Note  Clnnihitlou  of  tbo  tjiiil^'d  Kj iii^dom  fnr  the  month  euiUiitf 
0  Month  ofidinic  4th  FeliiTLajy^  oa  oompared  with  tlio  previous  motitJii :— - 


endttiiif  IMi.  1) 

;        Jan.  7. 
£l!»,S31,n7 

Feb-  i. 
£3H,4e7,7fl2 

TnPT€.ifre,     ,    Pccre«M«* 
lli.Tiri    1          — 

-".*-.* -*" 

fi7  oi    1 

1  rtH                ItJJi.OU 

in    ni-inth   r'-nill:: 

'in-"-  1  i.-'^i,   -ua,   Mii&j, 
ol 

'      :           :   iJUa 

i-'cb.   Ist,  irivos   an 
^villl  LUo  Ilctura  far 
ncrettuoS  i.'l  ,Oili8^fl7S 

month  cndltJHr  -ttll 
Uio  prvirtuus  mgjith, 


^ 

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ig?  i8S  :•:.::  i    J   IS  :    18   :   -gf  il'I'S* 

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gSSgaB    iS    i   i   :   i    :   :   18    :   i   ;   i   i  ;   i   :  i   i   : 

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3f¥I  if  i  i  i  i  i  isf  i  i  i  i  i  i  i  :  :  :  : 

^,::oso:-»:5w©»o2):   ;::::::        :::: 

*^          «5         ....^.35  or  06                        g 

=>'ii.siiii?ei^-'ii.iii5ii,s 

aiSa      *5siT|:|8&n     S     5  (Sgg- 

rro-?? 


Waterlow  and  Bone,  Prlntcif,  Cari>cnt«n*  Uall,  London  Wall 
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A.NKEE8'  MAGAZINE, 


APRIL,    1865. 


E  THEORY  OF  BUND  TRADING. 

18  a  colloquial  phrase,  which  may  be  applied  to 
practices,  aiid  to  certain  personal  acts  of  busi- 
)f  which  are  positive,  and  some  negative.  It  is 
iT-day  use,  especially  in  what  are  known  as  hard  i 

who  has  just  passed,  is,  we  are  told,  going  it 
m,  we  are  told,  does  not  know  what  he  is  doing. 
to  know,  is  in  deep  waters  ;  Andrew,  mcssmg  ; 
changing  cheques,  offering  unknown  names  on 
ving  and  buying  right  and  left.  That  it  is  a 
taken  in  a  literal  sense  is  obvious,  from  the  fact 
successful  men  of  business  have  in  reality  been 
f  such  some  curious  things  have  been  told.  IFe 
ks  and  travellers  chiefly  by  the  sense  of  smell. 
I  himself  by  the  perfimie  of  his  clothes.  Tlic 
siness  accepting  the  perfume  as  the  clue  to  the 
itability  of  the  applicant,  proceeded  to  question  : 

ving  manner :  "  Pray,  young  gentleman,  how 
>o  you  know  anything  of  history  ?  How  often 
n  Hampstead  Heath,  and  on  the  top  of  Shooter's 
ate  was  it  for  the  young  gentleman  if  he  had 
les  on  the  top  of  Shooter's  Hill,  times  without  I 

ipstead  Heath,  and  could  recoimt  the  incidents  •. 

3  of  the  Duke  of  Wellington.     The  blind  man  [ 

xliately  concluded  that  he  was  a  proper  young  i 

use,  in  addition  to  bestowing  care  on  his  outward 
lot  unmindful  of  his  health,  nor  of  his  intellec-  5 

Unfortunate  was  it  for  the  young  gentleman  if  i 

his  only  care.     The  blind  man  of  business  at  \ 

dm  with  the  admonition  that  a  fashionable  young  i 

35 


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The  Theory  ((f  Blind  Trading, 


gentleman  is  always  a  dangerous  one,  unless  his  mind  i 
by  pursuits  calculated  to  TnaiuiAin  the  ascendancy  of  hi 
Bense. 

One  of  the  most  striking  and,  at  the  same  time^  o 
most  common  forms  of  blind  trading  is  that  which  pros* 
to  tko  mind,  when  we  reflect  on  a  practice  Bcrupulouslj 
by  all  safe  bankers,  and  seldom  or  ever  thought  of  in  the  i 
walks  of  commerce.  The  safe  banker  has  hm  eyes  opeE 
nu^roly  open,  but  they  are  upon  the  past  and  future,  as  we 
the  present.  With  most  men  of  business  there  is  no  c 
tion  o(  ihe  past,  and  the  fixture  does  not  trouble  the: 
tlio  ritirement  of  acceptances  which  fall  due  on  the 
4tli.  With  most  men  of  business  the  present  is  the  i 
care.  "  Eat,  drink,  and  be  merry,"  and  *^  sufficient  fo 
i*^  the  evil  thereof,"  are  standard  Dusiness  maxims  fron 
to  the  circumference  of  the  six  or  twelve  mile  circle. 
troubles  are  sufficiently  trying  without  possible  pr 
aggravation.  Andrew's  rule  has  been  to  lea%"e  hia  bu 
the  enuuting-house,  and  enjoy  himself  at  home  with  h 
family.  John  is  at  the  Bay  "Tree  at  seven  o'clock  wit 
ScotelL  and  pipe;  Thompson  at  the  opera  with  cousii 
quaintances ;  and  Brown  at  the  Holborn  or  in  the  II 
with  his  young  friends.  So  pass  the  weeks,  months,  n 
If  tl:o  balance  at  the  bank  is  small,  there  must  be  sale 
or  worlt  done,  some  one  drawn  on,  and  the  amount 
And  shoukl  the  balance  at  the  bank  be  Inrge,  prcasin 
men^s  billa  are  paid,  personal  tastes  are  gratified,  and 
may  he,  iira  taken  in  some  new  enterprise.  The  rain< 
Boavfi  abo^c  the  present ;  the  rainy  day  or  tlie  time  of 
as  it  is  more  often  called,  is  put  out  of  sight,  or  at  1g 
thought  of  and  provided  for  in  an  intelligent  and  cone 
manner,  as  a  matter  of  duty,  and  as  a  matter  of  course 
Safe  banking  presents  to  blind  trading  un  invahiabk^ 
lesson  from  which,  however,  it  does  not  profit.  A 
banker  with  £10,000,  £50,000,  or  £100.0(JO  in  exce 
demands  wliich  are  likely  to  be  made  upon  him,  does 
the  supplement  of  the  paper  in  hand  1  o  find  out 
street  oi'  weekly-tenant  tenements  may  be  bought  cher 
a  coal  mine  maybe  secured  for  less  than  its  real  value, 
money  may  bo  advanced  on  debentures  or  on  moi*tgagc 
wliif'k  woukl  be  highly  profitable.  He  never  looks  at 
plemeut  of  the  paper.  He  buys  no  teuemeuts,  se 
coal  mine,  nad  is  proverbially  indifierent  to  the  sedu( 
higli-ratc  debentures  and  mortgage  deeds,     Hi^  rule  i 


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Tlic  Theory  qf  Blhid  Trading.  439 

id  on  readily  convertible  sccijrltles,  or  to  buy  i 

ible  securities.     His  rule  is  to  subordinate  the  I 

iture ;  to  provide  against  all  possible  eventuali- 
wordjs,  he  does  not  trade  to  the  full  extent  of 
ing  so,  he  does  not  spread  all  the  canvas  that  he 
r  weather  gale,  but  holds  his  hand,  but  denies 
continuously  apprehensive  of  reefs,  rocks,  and 
I  a  word,  no  is  a  man  of  moderation,  and  liis 
ong  and  will  long  be  rewarded  by  its  satisfactory 
results.  The  judicious  banker  extends  his  arm 
can  be  readily  drawn  back  again.  lie  is  a  man 
rf  fancies,  ana  before  his  eyes  are  the  whole- 
the  slights,  distrusts,  and  miseries  to  which  H 

ankrupts  are  long  subject,  even  although  they 
md  retrieve  their  character. 
B  going  it  blind,  is  a  well  known  ship-builder. 
5S8  with  a  fair  amount  of  borrowed  capital,  and 
ays  been  full  of  work.     Moreover  ho  has  always  I 

Ighcst  prices  going,  owing  to  his  presumed 
Ige  of  his  business.  And,  to  do  him  justice,  he 
isive  tastes,  but  has  lived  below  and  not  above 
10  world.  Still  he  is  going  it  blind.  Ilis  short- 
summed  up  in  the  single  sentence,  that  he  is 
bankers  and  trusting  to  his  clerks  instead  of 
}elf.  Were  he  to  trust  to  himself  ho  would 
)le  of  his  bankers,  and  be  himself  an  example  to 
would  keep  within  business  bounds,  and  in  doing 
jrhat  he  is  about.  lie  would  be  in  the  position 
I  shortened  sail  and  struck  topmasts  when  the  , 

d  not  like  the  ship  which  is  wholly  unprepared.  i 

''e  the  tempest  instead  of  making  shipwreck. 
10  does  not  know  what  he  is  doing,  and  the 
)r8  of  the  same  kind,  the  points  of  difference 
^  to  be  named.     They  have  no  reserve ;  behind 
no  j)rop  to  withstand    an   approach,   a  mere  } 

ssure.     Like  green  brick  walls  their  only  chanco  |; 

being  undisturbed  until  the  mortar  takes  hold 
'  words,  some  fortuitous  circumstance  has  put  r 

And  it  is  their  misfortune  to  be  in  this  state  i 

ng  time  some  fortuitous  circumstance  should  j 

to  save  them.     To  put  them  in  fimds  to-day,  r 

lem  destitute  to-morrow.     It  is  beyond  them  to  j 

3  right  use  of  means,  of  goods,  of  credit,  is  less  \ 

tiou  of  a  boundless  business  appetite,  and  less  in  f^ 


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The  Theory  of  Blind  Trading. 


disporting  one's  self  in  the  sunshine^  than  in  holding 
head,  and  in  flourishing  when  others  droop  or  become  dy 
The  extent  of  a  business  man's  dealings  is  of  infinit 
importance  to  himself  or  to  his  creditors  than  the  profi 
accrues  from  his  transactions,  whether  those  transact] 
few  or  many. 

But,  it  will  be  replied,  a  banker  and  a  merchant  ca: 
expected  to  act  on  the  same  principles,  and  to  be  i^^ded 
same  rales.  Why  not  ?  The  one  deals  in  money  which 
to  other  people,  and  the  other  deals  in  merchandise  wj 
longs  to  other  people.  Call,  therefore,  the  money  mercl 
and  there  is  no  longer  the  pretence  of  a  distinction  1 
the  two.  Both,  in  truth,  are  traders,  and  the  bankers 
yet,  the  only  ^tematic  and  prudent  traders,  They 
only  class  in  whom  blind  trading  is  the  exception,*  a 
trading  i^  the  rule.  And  it  is  remarkable  that  the  exi 
in  banking  produce  an  amount  and  intensity  of  repi 
when  collapse  occurs,  which  is  unknown  in  the  blackest  i 
of  e  very-day  business  failure,  as  if  the  one  were  more  mi 
or  les8  venial  than  the  other. 

That  blind  trading  multiplies  transsu^tions,  and  safe 
restricts  them,  is  quite  true ;  but,  as  blind  trading  is 
universally  deplored,  its  curtailment  instead  of  bein^ 
would  be  a  sure  economic  gain.    Brown,  Thompson, 
others,  convene  meetings  of  their  creditors,  and,  as 
Thompson,  and  the  others,  may  be  presumed  to  have 
they  ever  had,  while  their  creditors  may  receive    a 
dividend,  or  none    whatever,  to  who&o  hands,  then, 
spoil  be  traced  ?     It  can  positively  be  traced  to  no  man'a 
and  it  is  only  a  convenient  fiction  to  affirm  that  the 
nity  at  large  enjoy  the  advantage  of  buying  cheaiici 
community  at  large,  indeed,  cannot  in  the  nature  of  tt 
benefited  by  the  collapse  incident  to  blind  trading, 
collapso  of  any  kind.     That  safe  trading  would  not  be  cc 
to  the  gmat  body  of  adventurers  is  alno  quite  true,  1 
only  proves  the  desirability  of  the  change.     Blind  tr 
disreputable  to  all  concerned ;  to  those  who  practise  it, 
at  the  best  it  is  a  mere  makeshift  means  of  subsisting 
merchandise  of  others;   and  to  those  who  sanction  it, 
there  is  no  excuse  for  the  toleration  of  such  ti^ine 
presence  of  the  fact   that  safe   bankinn;  is  not   unpri 
although  an  unemployed  and  available  rtserve  is  kept  i 
Neither  would  safe  general  business  prove  in  the  least 
fi table,  were  the  dead  stock  of  the  firm,  the  warehouse, 


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.  by  certificates,   or  exchequer   billd,   in   the 
t-book,  or  in  his  strong  room* 
al  business  on  the  same  footing  as  safe  bank- 
;  are  required.     In  the  first  place,  we  must 

of  blind  trading  from   what  has   been   the 

and  be  as  exacting  with  the  general  trader 
ent  with  the  banker.  In  the  second  place,  in 
Jdnkruptcy  investigations,  the  rule  should  be 
in  the  main  pnidence  consists  in  not  being 
ercy  of  the  discount  rate  of  the  Bank  of  Eng- 
mprudcnce  in  the  main  consists  in  falling  at  the 
lings  of  what  is  loiown  as  the  Bank  screw.  lie 
V  that  to  the  best  of  his  ability  he  has  provided 
I  circumstances,  who  has  not  put  all  his  eggs 
10  has  not  set  his  fortune  upon  a  cast,  should 
from  the  man  who  has  been  blindly  trading. 
,  is  an  honest  man,  worthy  to  be  upheld  and 
he  other  is  not.  By  and  by  the  latter  will  not 
^al  punishment  for  mere  improvidence.  His 
Id,  as  a  substitute,  consist  in  exclusion  from 
prudent  men  of  business.  When  that  has  been 
re  intelligently  distinguished  between  impro- 
jrtune,  there  will  be  some  hope  of  the  reproach 
weighed  on  general  business  being  removed. 

should  then  be  as  safe  as  judicious  banking  is 
as  in  judicious  banking,  it  should  then  be  pro- 
5  would  attend  all  business  undertakings,  rather 

as  at  present  should  attend  them.  At  present 
3  erroneously  and  scandalously  on  the  side  of 


5  OUTLINES  OF  AMERICAN  FINANCE. 

No.  XIV. 
>N  announced,  in  a  message  to  Congress,  that 
the  Treasury  had  directed  the  deposits  of  the 
o  be  removed  from  the  national  bank,  and 
.  state  banks  designated  by  him.  He  then  de- 
ational  bank  in  terms  of  extreme  severity, 
h  attempting  to  influence  the  election  of  the 
ly  means  of  money,  and,  in  violation  of  its 
its  funds  by  formal  resolution  at  the  disposal 


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of  the  President,  to  be  employed  in  sustammg  tl 
power  of  the  bank/'  He  charged  the  directors  with 
ing  trade  by  refusing  to  discount  freely,  though  tl 
unprecedented  amount  of  bullion  in  their  cellars, 
them  of  bribing  the  newspapers  to  attack  the  g 
Finally,  he  declared  that  he  would  have  ''  ordered  a 
against  the  bank  were  it  not  that  the  cliartcr  itsel 
pire  as  soon  as  a  decision  could  probably  bo  obtain^ 
court  of  last  resort."  It  is  evident  that  tho  de^ 
President  was  to  ruin  the  credit  of  the  bimk ;  and 
ordinary  that  it  could  have  sustained  itself  against  lii 
hostility.  To  reproach  it  with  curtailing  its  disc 
the  means  of  granting  them  were  taken  away,  wa 
suit  to  injury :  and  the  English  reader,  unacquaint^ 
under-currents  of  American  politics,  miiat  bo  aston 
conduct  of  the  President,  and  excusable  in  suspect 
is  misrepresented.  But.  the  difficulty  is  solved  by  t 
be  an  axiom  in  the  United  States  that  the  emolumei 
are  regarded  as  the  rightful  spoils  of  the  victorious  j 
first  Bank  of  the  United  States  was  calhxl  into  exist 
Federalists ;  but  when  their  power  declined,  that  hi 
re-chartered.  The  second  bank,  equally  with  the  fii^ 
a  political  and  monetary  organisation,  and  they  whi 
influential  at  electioneering  secured  shares  in  the 
Its  real  founders  remained  in  power  till  1829,  whe 
democrats  became  dominant,  and  selected  Andrew 
their  chief.  We  have  seen  how  he  rewarded  hi 
when  installed  President,  conferring  all  offices  wit 
tronage  on  his  adherents,  in  rewaid  for  their  vot< 
polling  those  who  held  them,  though  their  conduc 
irreproachable.  Now  the  bank  was  the  greatest  oj 
The  friends  of  General  Jackson  were  well  aware  of  i 
utility.  They  had  no  real  intention,  when  first  exci 
prejudice  against  it,  to  supersede  such  an  instil 
national  bamk;  they  merely  desired  to  destroy  tli 
existed,  and  replace  it  by  another  under  tlie  cod 
Jackson  party.  They  felt  it  prudent  to  conceal  th 
their  opponents  would  triumphantly  have  repHcd, 
wiser  to  continue  an  old  and  tried  eetablisliment, 
worked  well,  than  venture  on  a  fresh  experiment 
create  a  new  list  of  stockholders.  But  the  tortno 
the  government  defeated  itself,  for  though  it  had  b 
matter  to  inflame  the  passions  of  the  sovereign  pec 
the  bank,  it  was  beyond  the  power  of  the  agitat< 


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i  them  into  any  channel  wliich  did  not  lead  to 
ictivencss.  Hence  General  Jackson  ultimately 
inst  the  entire  banking  system,  as  so  radically 

to  bo  tolerated  under  any  modifications.     Do-  * 

i[/o  became  his  creed.  ; 

of  the  bank  were  rouscni  to  resistance,  and  a  reso- 
re  on  the  President  was  moved  in  the  Senato  on  I 

aber,  1833,  by  Mr.  Clay,  which,  after  protracted  J 

modified  in  the  following  terms,  and  adopted  on 
1,  1834.     "  That  the  President,  in  the  late  execu-  ; 

;  in  relation  to  the  public  revenue,  has  assumed 
athority  and  power  not  conferred  bv  the  consti-  i- 

I  laws,  in  derogation  of  both.'*     This  vote  was  'j 

o  20,  against  which  the  pugnacious  President 
red  his  protest  on  the  15th  April,  1834.  Ho 
laying  down  the  following  principles  : — 
itive  power,  subject  to  the  qualified  negative  of 
is  vested  in  the  Congress  of  the  United  States, 
e  Senate  and  the  House  of  Representatives.  The 
5r  is  vested  in  the  President,  except  that  in  the 
reaties  and  in  certain  appointments  to  office  he 
the  advice  and  consent  of  the  Senate.  The 
.&  vested  exclusively  in  the  supreme  and   other  , 

nited  States,  except  in  cases  of  impeachment,  for  ^ 

the  executory  power  is  vested  in  the  House  of  ' 

3,  and  that  of  hearing  and  determining  in  the 

each  of  the  three  great  departments  is  inde* 
others  in  its  sphere  of  action." 
3  defence  on  these  clearly  constitutional  distinc- 
Jackson  contended  that  "  the  resolution  of  the 
ly  unauthorised  by  the  constitution.  It  assumes 
ranch  of  the  legislative  department  may,  for  the 
lie  censure,  and  without  view  to  legislation  or 
take  up,  consider,  and  decide  upon  the  official  ; 

jcutive.     The  Senate  can  only  decide  upon  the  ! 

President  when  he  is  impeachcxl,  and  he  can  only  \ 

in  the  House  of  Representatives."  General 
complained  that  the  resolution  was  vague  in  its  ' 

ig  in  the  form  of  a  defined  and  specific  accusa-  1 

iginal  resolution  moved  by  Mr.  Clay  were  these  i 

ismisslng   the   late  Secretary   of    the  Treasury  ] 

aid  not,  contrary  to  his  own  sense  of  his  own 
he  money  of  the  United  States,  in  deposit  with  [ 

le  United  States  and  its  branches,  in  conformity  \ 


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with  the  President's  opinion ;  and  appointiog  lii^  succ 
eifect  such  remoyal^  which  has  been  done/'     The  kng 
the  resolution  designated  "  the  executive  proceeding  in 
to  the  public  revenue,*'  for  no  other  specificalion  was  sub 
in  tlie  modified  resolution  which  was  carried.     General 
miiintained  his  right  to  dismiss  the  Secrotary  by  virtu 
prerogative,  on  which  point  he  argued  tlms : — -The  P 
uomiuates,  and  by  and  with  the  advico   and  consent 
Senate,  appoints  all  oflBcers  of  the  United  States  whose  j 
ineiits  Lire  not  in  the  constitution  otherwise  provided  f< 
the  pru\4so  that  the  appointment  of  inferior  officers 
vested  in  the  President  alone,  in  the  eoiirti^  of  justice 
heads    of    departments.      The  Senate  neither  nomina 
appoints,  but  merely  checks  the  executive  power  of  s 
incnt.     If  the  Senate  refuse,  the  appointment  cannot  b 
As  to  the  power  of  removing  or  dismisaliijj:  a  functiona: 
subject  was  solemnly  debated  in  the  Congress  of  ITS 
the  organisation  of  the  administrative  departments  wt 
eonsidi  ration,  and  it  was  decided  that  the  President 
from  the  constitution  the  power  of  removal,  so  far  as 
the  depaiiment  for  whose  acts  he  is  responsible. 

General  Jackson  then  pointed  out  that  Cong  re 
never  passed  an  Act  imperatively  directing  that  the 
Jiioney  should  be  kept  in  any  particular  place  or 
l^^roin  the  origin  of  the  government  to  the  year  1^ 
statute  book  was  silent  on  the  subject.  lo  1789  a  t] 
wa.s  appointed  subordinate  to  the  Secretary  of  the  Treasi 
througli  liim  to  the  President.  From  tlie  origin  of  the 
ment  the  Secretary  of  the  Treasury,  acting  tinder  the  sup- 
of  the  I'resident,  designated  the  places  iu  wJiich  the 
money  t^hould  be  kept,  and  specially  direittHi  all  trunflfe 
place  to  place.  This  practice  was  continued  with  th 
acquieseence  of  Congress  from  1789  to  181 G;  and  a 
maijy  banks  were  selected  and  dischai*ged,  and  altt 
portion  of  the  money  was  first  placed  in  tlie  states  bai 
then  in  the  first  Bank  of  the  United  States,  and  upon  \\ 
lution  again  transferred  to  the  states  banks,  no  legislat 
deemed  necessary  by  Congress,  and  all  these  several  op 
were  commenced  and  completed  by  executive  authority 
Act  of  1816,  establishing  the  second  Bank  of  the  United 
directed  the  deposits  of  public  money  to  be  made  in  tin 
and  its  branches,  unless  the  Secretary  of  the  Treasury 
othcrnnne  order  and  direct,  in  which  he  wii«  to  f^ive  liis 
to  Cfingress.     But  this  did  not  alter  his  relations  to  th< 


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toric  Outlines  of  American  Finance.  445 

the  latter  from  his  constitutional  obligation  "  to 
le  laws  be  faithfully  executed/'     The  archiveo 

department  showed  that  the  secretaiy  was  in 
)plying    to    the  President  and    obtaining    his 

sanction  to  the  original  transfer  of  the  public 
)re8ent  Bank  of  the  United  States,  and  carried 
)  effect  in  obedience  to  his  decision.  Had  the 
5  Treasury  been  an  officer  of  tlie  Congress  and 
the  President,  the  same  might  be  said  of  the 
ir  and  of  the  navy,  and  the  Postmaster-General; 
ue,  the  whole  executive  power  would  be  concen- 
aat«.  On  these  grounds  the  President  justified 
ihe  Secretary  for  disobeying  his  orders,  accusing 
ng  the  bank  and  opposing  his  superior.  He 
lis  withdrawal  of  the  deposits,  by  stating  that 
;empted  to  obtain  the  renewal  of  its  charter  by 
Congressional  elections  and  the  general  action  of 

in  the  attempt  using  its  corporate  funds  and 
pting  the  press,  and  tlius  violating  its  charter, 
lis  protest  by  demanding  its  registration  on 
le  Senate,  which  the  Senate  refused. 
5S8  had  been  convened  in  1834,  in  which  govem- 
ied  majority  in  the  House  of  Representatives, 
1  a  minority  in  the  Senate.  On  the  4th  June, 
followed  up  his  first  success  by  moving  the  two 
bions : — 1st.  That  the  reasons  of  the  Secretary  of 
re  unsatisfactory  and  insufficient.  2nd.  Ihat 
he  public  money  ought  to  be  made  In  the  Bank 
States.  The  former  of  these  resolutions  was 
.enate  by  29  to  16 ;  the  latter  by  28  to  16.  In 
jpresentatlves  they  met  with  a  very  difierent 

ordered  to  lie  on  the  table  by  114  to  101.  Thus 
3  of  the  legislature  came  into  direct  conflict, 
)i  Representatives,  determined  to  support  the 
I  the  two  following  resolutions  in  violent  oppo- 
ate : — 1st.  That  the  Bank  of  the  United  States 
e  rechartered ;  carried  by  132  to  82.  2ndly. 
leposits  ought  not  to  be  restored  to  the  Bank  of 
es;  carried  by  118  to  103. 
ilJongressional  contests  were  exasperating  party 

deputations  of  merchants,  mechanics,  and 
the  principal  cities  and  towns,  all  suffering  from 
)f  the  currency,  entirely  caused  by  the  conduct 
mi  against  the  bank,  waited  on  the  President 


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;i^kiiig  measures  of  relief.  They  ref^eived  tlie  curt  an^iwor 
government  could  give  none^  tliut  the  bank  was  the  sole  < 
of  all  the  evils  experienced,  ainl  that  they  who  liad  trach 
iHjrrowed  capital  ought  to  break.  This  reply,  and  tlie  J 
niination  of  the  House  of  Representatives  to  support  the  \ 
i>t'  General  Jackson,  showed  that  the  battle  was  fought  o 
both  sides.  It  was  no  longer  possible  to  act  on  the  ori 
scheme  of  substituting  a  new  bank  for  an  old  one,  and  alth 
a  nominal  victory  remained  with  the  admiuiBtratioD, 
combatants  were  really  defeated,  neither  securing  the  obje< 
which  the  contention  arose.  The  exclusive  privilegea 
Bank  of  the  United  States  were  ubolkhed  with  the  expii 
its  charter.  There  are,  however,  circumstances  connected 
this  controversy  which  merit  record  among  the  wamm 
history,  as  showing  the  paltry  and  malignant  spirit  in  whi' 
was  conducted,  and  how  governments  may  degrade  thems 
when  they  exert  their  power  under  the  imreatrained  infli 
of  passion,  vengeance,  and  party  spirit* 

The  bank  had  a  branch  at  Saviinnah.  It  was  one  oJ 
smallest,  having  a  note  circulation  of  only  500,000  doHars. 
officials  of  the  Customs,  who  rcg^ularly  received  its  not 
payment  of  the  public  dues,  suddenly,  and  without  any  u 
whatever,  presented  a  mass  of  those  notes  to  the  amoui 
380^000  dollars,  demanding  specie,  in  the  hope  that  it  migh 
be  forthcoming.  The  casmers  of  the  Bank  of  the  United  8 
had  for  some  time  entertained  suspicions  of  foul  play 
observing  that  the  notes  of  the  Savannah  branch  had 
extensively  taken  out  of  circulation,  and  they  wisely  rero 
a  sufficiency  of  coin  to  meet  any  concerted  run.  The  att 
was  made  by  the  order  of  government,  and  defeated ;  ai 
proof  that  coin  was  not  wanteid,  it  was  immediately  rctum< 
the  agents  of  the  Customs  as  deposit.  By  such  low 
General  Jackson  sought  to  destroy  the  credit  of  the  bank^  th 
well  aware  that  he  would  aggravate  commercial  distre 
monetary  confidence  was  destroyod.  His  guilt  as  Presideni 
tho  blacker  because  he  knew  perfectly  well  that  the  nat 
institution  held  more  coin  at  its  disposal  than  aU  the  other  \ 
in  the  Union  collectively. 

In  the  matter  of  the  French  indemnity  the  directors  ol 
bank  acted  without  becoming  dig^nity,  though  they  did 
oxoeed  their  legal  rights ;  but  in  di^splaying  their  strenc^h 
were  betrayed  into  a  vengeful  spirit,  of  which  their  most  judi( 
friends  could  not  fail  to  disapprove.  These  arc  the  f 
France  had  xnnde  maritime  aggresaions  on  the  commerce  o\ 


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from  1800  to  1817,  for  which  full  compensation 
nade ;  for  though  there  had  been  an  adjustment 
)f  Louisiana,  the  injuries  since  inflicted  were 
in  indemnity  had   been   claimed.     After  very 

treaty    was    signed    at    Paris   on   tho    14th  j 

f  which  Franco  consented  to  pay  25  millions 
he   United   States   in    six   annual   instalments 

francs  and  66  centimes  each,  the  first 
he  expiration  of  one  year  next  following  the 
bo  convention,  and  the  others  at  successive  inter-  , 

one  year  after  another,  till  the  whole  sum  was 
also  made  reclamations  on  the  United  States.  I 

tie  the  balance,  it  was  agreed  that  tho  sum  of  ' 

s  should  be  credited  to  the  government  of  France 

States  in  six  equal  annual  instalments,  to  be  ^ 

the  instalments  France  had  agreed  to  pay.  This 
Y  ratified,  and  the  ratifications  were  duly  ex- 
city  of  Washington,  on  the  2nd  February,  1832. 

ratifications  reached  Paris  prior  to  the  8th 
rench  Chambers,  however,  refused  to  vote  the 
.  for  the  indemnity.  Never  suspecting  such  a 
emment  of  the  United  States  had  negotiated  a  . 

rst  instalment  through  the  Bank  of  the  United 
10  government  of  France  allowed  to  be  protested.  i 

nk  of  the  United  States  seized  the  dividends  on 
jk  to  cover  the  protested  draft,  also  claiming 

and  interest.  Those  dividends — or  rather  the 
lidate  them — constituted  a  portion  of  the  current 
on  which  the  appropriations  made  by  Congress 
lated.  In  this  proceediQg  the  bank  had  clear 
its  practice  was  sharp,  and  deemed  by  the  pubKc 
the  withdrawal  of  the  deposits.  It  served  as  a 
enemies  to  declare  that  it  sought  to  degrade  the 
>vemment  by  indulging  in  spitefulness ;  and  tho 
rtainly  have  stood  higher  had  it,  in  this  matter,  [ 

provocation  it  had  received.  General  Jackson, 
be  opportunity  of  expressing  his  indignation, 
soon  have  been  expected,' '  he  said,  "tiiat  our 
d  have  seized  on  the  Customs,  or  the  receivers  j 

ices  on  the  moneys  arising  from  the  sales  of  the  | 

under  pretences  of   claims    against  the  United 
;  the  bank  would  have  retained  the  dividends/'  ' 

iisputed  their  legal  claim  on  the  ground  of  its 
itutional  provision  that  "no  money  should  be 


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(lr;n\n  from  the  treasury  but  in  consequence  of  an  a] 
at  ion  by  law.*'  In  conformity  with  that  rule  it  follow 
the  claim  of  the  bank  could  only  be  discharged  by  an 
priation  granted  by  act  of  Congress,  for  which  the  bfi 
never  applied.  In  matter  of  form  perhaps  the  Presid 
right ;  but  substantial  justice  was  on  the  side  of  the  bai 

Another  circumstance  must  here  be  mentioned  as  illu 
the  rancorous  spirit  of  the  disputants.  By  authority  < 
frrcAs  the  bank  was  authorised  to  pay  the  pensions  gn 
the  old  surviving  soldiers  of  the  war  of  independence. 
rendered  that  service  gratuitously,  and  it  was  in  a 
deforce  onerous.  The  annual  sum  received  was  consit 
and  at  the  time  when  the  collision  took  place  the  ba 
500,000  dollars  of  that  specific  appropriation  in  its 
This  the  government  sought  to  remove  from  the  custod; 
bankj  demanding  all  books  and  papers  relating  to  th 
Tlio  bank  replied  that  it  had  been  constituted  deposi 
virtue  of  acts  of  Congress,  and  could  not  and  would  i 
render  either  cash  or  documents  unless  by  the  direct  < 
Congress.  Here  It  clearly  had  law  on  its  side.  Howe 
adversaries  denoxmced  the  directors  for  plundering  the 
Boldiors  of  their  scanty  means  of  subsistence ;  and  the  Pn 
in  an  address  to  Congress  indulged  in  similar  declarat 
hypocritical  as  vinuent.  For  who  really  prevent 
veterans  from  receiving  their  pensions  but  the  oflB 
the  Government,  who  refused  to  draw  cheques  on  the 
which  would  have  been  honoured  immediately  on  preseE 

When  General  Jackson  removed  the  deposits,  he  aff! 
take  the  states  banks  under  his  special  patronage,  and 
lauded  their  conduct.  In  his  message  to  Congress 
December,  1834,  he  said,  "The  states  banks  are  foui 
adequate  to  the  performance  of  all  the  services  which  \ 
quired  of  the  Bank  of  the  United  States,  quite  as  promj: 
with  the  same  cheapness.  They  maintained  themselves  i 
ehargid  all  those  duties,  while  the  Bank  of  the  United 
was  still  powerful,  and  in  the  field  as  an  open  enemy ;  i 
possible  to  conceive  that  they  will  find  greater  dimcu 
their  operations  when  that  enemy  shall  cease  to  exist. 
institutions  have  shown  themselves  competent  to  purchj 
fumkh  domestic  exchange  for  the  convenience  of  ti 
reasonable  rates  ;  and  not  a  doubt  is  entertained  but  tl 
short  period  all  the  wants  of  the  country,  in  bank  aci 
dation  and  in  exchange,  will  be  supplied  as  promptly 
cheaply  as  they  have  heretofore  heen  by  the   Bank 


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phecy  proved  a  most  lamentable 

id  December,  1835,  the  President 
bt  was  whoUy  redeemed,  or  money 
purpose  at  the  call  of  creditors. 
Creasury  at  the  end  of  the  year  of 
jr  all  outstanding  and  unsatisfied 

for,  nearly  11,000,000  surplus  re- 
3Ject  which  Congress  might  desig- 
b  expenditure  of  the  ensuing  year, 
be  received,  from  various  sources, 
1836.  The  sale  of  pubKc  land  in 
,  The  President  recommended  the 
ommissioners  of  Loans  and  of  tlie 
Dutinuance,  by  such  a  law  as  was 
pt  of  the  bills  of  the  Bank  of  the 
recommended  the  appointment  of 
lie  books  and  stocks  of  the  United 
id  to  close  all  connection  with  it 
rhen  its  charter  expired.  Branch 
e  established  in  North  Carolina, 
D  President  confidently  anticipated 
r  would  become  general  in  ordinary 
he  labour  of  the  country.  As  to 
s  which  arose  in  1835,  he  attributed 
gning  its  cause  to  the  monopoly 
He  insisted  that  all  experience 
;  a  fiscal  agent  of  the  Government, 

the  ])olitical  and  moneyed  power 
nk  bills  under  the  value  of  twenty 
ates  banks,  he  contended,  being 
ent,  could  never  become  political 
)  authority  and  no  pretext  to  use 
e  purposes. 


INANCIAL  ANECDOTES. 
No.  IV. 

PLY-LAtp   PLOT. 

'Change  Alley,  was,  on  the  morning  of 
engaged  in  business  when  a  stranger 
ed  the  broker  to  sell  £1G,000  Scrip, 
dchess,  though  of  somewhat  effeminate 


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Banking  and  Financial  Anecdotes. 


manneni  for  a  man.  Mr.  Martin,  however  much  he  might  be  i 
with  the  young  man's  manners,  was  telling  him  that  an  introdu 
was  neoeesaiy,  when,  opportunely  enough,  Mr.  Lyons,  a  memb 
the  Exchange,  happened  to  come  in,  apparently  by  the  it 
accident  "Oh I'*  said  the  young  man,  "here  is  Mr.  Ljronf 
knows  me  well."  Mr.  Lyons  owned  the  soft  impeachment, 
added  that  he  was  only  sorry  that  the  young  man  did  not  en 
him.  Mr.  Martin,  being  satisfied  with  this,  sold  £10,000  out  o 
£16,000.  But,  strangely  enough,  the  seller  did  not  oome  foi 
money,  and,  more  strange  still,  he  had  left  no  address.  The 
day  the  young  man  called  at  Mr.  Maiiin's  private  house,  and,  d< 
less,  much  annoyed  that  the  whole  of  the  stock  had  not  been 
went  away  till  the  whole  sale  could  be  completed.  The  young 
who  left  Mr.  Martin's  house  in  secret  vexation  was,  in  &ct,  i 
young  man  at  all.  She  was  the  sister  of  Lyons,  and  the  mcetii 
Mr.  Martin's  office,  apparently  accidental,  had  been  arranged, 
whole  transaction  was  a  conspiracy — a  forgery.  The  buyer  oi 
Scrip  having  some  suspicion  of  the  genuineness  of  the  docimient 
Martin's  attention  was  called  to  it,  and  the  forgery  was  discovere 
application  to  the  Bank  of  England.  Lyons  was  arrested,  and 
fessed  his  guilt.  The  sister,  who  had  assumed  male  attire  a 
brother's  solicitation,  it  ia  believed  did  so  in  ignorance  of  the  1 
which  he  was  perpetrating. 


HOW  TO  PAY  OFF  THE  NATIONAL  DEBT. 

There  have  been  few  topics  which  have  called  forth  more  crotc 
than  the  national  debt.  An  extraordinary  volume  appeared  on 
subject  in  1798.  It  was  a  goodly  quarto  volume.  There  wa 
elaborate  essay  on  the  evils  of  the  debt,  masses  of  figures  and  pil 
calculations,  and  terrible  prophecies  as  to  the  national  ruin  that 
impending.  And  what  was  the  end  of  all  this — what  the  mor 
the  long  taJe  ?  That  one  day  in  every  week  for  a  long  period  ei 
body  in  the  United  Kingdom  should  save  the  cost  of  his  livic 
provision.  This  amount,  with  corapoimd  interest,  it  was  calcul 
would  soon  pay  off  the  national  debt.  The  writer,  however,  fc 
three  little  things  :  first,  that  it  would  be  necessary  that[all  the  inhi 
ants  of  the  United  Kingdom  should  be  made  acquaiiitr<l  wilh^ 
scheme  ;  secondly,  that  they  should  all  agree  with  it ;  thirdJjt 
they  should  all  act  upon  it. 


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I  BXCfHANGB  AT  THE  COMMENCEMENT  OF  THE 
NINETEENTH   CENTUBY. 

sketch  of  Stock  Excliange  manners  and  cnstoms  at 
the  present  century  may  prove  interesting  : — 
ets  !     India  Stock  for  tlie  opening !  *   Navy  bills ! 
iie  account !     Long  Annuities  ! " 
T  calls  :  "  Chance !  Chance  !  " 
s  not  here,  Sir ;  ho  is  over  at  his  office." 
s  for  August !  Omnium  for  September !  Scrip  for 
it !     Three  per  cent.  Consols  !  " 
f-headed  Mr.    Eye-Tony  whispera  a   friend,  but   is 
cf  are  all  bulls,  by  Jove  !  but  I'll  be  hanged  if  they 
stock.     I'll  go  out  of  town,  and  not  come  among 
jounter." 
Annuities  !  Who  buys  Long  Annuities  1  Tickets  for 

have  you  to  do  in  tickets  for  the  dmwing,  Mr. 

•  of  500,  Sir.'' 

buyer,  Sir,  but  pray  at  what  price?" 

are  a  friend,  Mr.  Point  Royal,  I  shall  give  you  the 

lavo  them  at  14." 

r.  MullxiiTy !  Why,  do  you  think  I  don't  know  what 

3II  as  if  I  was  selling  pins  or  needles,  or  dmwing 

s'  ruffles  ?     They  are  all  sellers  at  13.     I  will  take 

not  otherwise." 

all  luive  them ;  put  them  down  so — for  the  dra^ving, 

-  it,  Tom,  where  did  you  get  that  wig  1 " 

Q  of  a  gim,  it  is  as  good  as  your  mop — India  Stock 

end  !     Have  you  anything  to   do   in   India  Stock 

!    India  Bonds  !     Who   buys  India  Bondy  ?      No 
rketr 


A   NOVEL   FRAUD. 

I  his  "  Chronicles  of  the  Stock  Exchange,"  relates  a 

le  time  of  its  peri>etration,  180G,  was  as  novel  as  it 

Joseph  Elkin  Daniels  was  wcU  known  on  the  Stock 


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I 


452  Banking  and  Financial  AneocMea, 

Exchange  as  a  dealer  in  the  funds.  His  frequent  feraiiE&i 
bined  with  the  trust  which  his  character  had  achieved,  gavi 
a  confidence  in  his  proceedings  of  which  he  proved  utti^rl^ 
The  time  was  an  important  one.  The  continent  was  stnigg 
the  iron  yoke  of  Buonaparte  ;  Austria  was  makiug  tha 
struggle  with  her  enemy  which  ended  at  Austerlitz  ;  ru 
plentiful,  and  the  price  of  stock  varied  greatly,  wlieti  B 
to  the  broker  and  desired  him  to  buy  Omnium  on  ace 
price  was  high,  but  his  request  was  complied  witli, 
continued  to  advance,  and  Daniels  continued  to  bu^ 
the  price  increased  from  10  to  13  premium.  When 
had  completed  his  orders  to  the  amount  of  £30,00 
anxious  for  his  money,  and  applied  for  payment.  Da 
ever,  quieted  him  by  saying  he  was  so  sure  the  price  would  i 
friends  would  lend  him  money  on  the  security  of  the  stcK 
him  to  make  the  most  of  his  speculation,  and  that  be  ^hoi 
hold  the  entire  amount.  The  statement  seemed  ti  fair  oe 
was  believed  to  be  honest,  and  the  broker  handed  h 
Omnium,  for  which  Daniels  gave  him  his  draft  on  Sn 
and  Smith.  The  first  part  of  the  fraudulent  schc  rae  wtv 
Daniels  knew  the  cheque  would  not  be  presented  until  tli 
and  that  he  was  therefore  free  firom  danger  fc<r  a  few 
immediately  took  the  reversion  to  other  brokers,  represcii 
an  urgent  necessity  for  money,  sold  it,  and  having  l>een  ] 
for  the  amount,  immediately  presented  them  to  the  liauk< 
they  were  drawn,  and  received  the  amount  in  ca-^Ii,  H 
to  all  whom  he  knew  or  would  trust  him,  borrowed  m< 
security  of  his  own  cheque — a  common  practice  on  tin*  Skx 
— ^with  remarkable  boldness  ;  remained  in  London  iiiit 
when  he  knew  his  own  draft  would  be  presented  iuid  refus 
le%  laden  alike  with  gold  and  a  guilty  conscience,  Tlu^  I 
of  fi:tiud  was  estimated  at  £50,000.  Telegraphic  notie4?s 
mitted  to  the  principal  ports  of  the  United  Kingilon 
Mayor  dispatched  officers  in  all  directions ;  the  chief  sv 
express  to  various  places  on  the  chance  of  detaining  hiiii 
exertion  was  made  to  bring  him  to  justice.  £2J00,  ^ 
strangely  left  at  his  banker's,  were  attached  ;  £200  was  o1 
appreliension  ;  his .;  lodgings  were  examined,  and  the  pn 
was  seized  by  the  officers  of  justice.     The  search  was  to 


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Vcw  Peruvian  Loan. 


453 


\  was  discovered  in  the  Isle  of  Man.  Here 
e  Manx  laws  protected  the  culprit,  the 
[J  required  to  apprehend  him ;  and,  when 
»'as  the  island  peopled  with  men  like 
raid  of  arresting  him  in  open  day,  took 
ve  tlieir  prisoner.  The  j>roceeds  of  the 
lien  his  departure  wtis  known  the  island 
Lolation  of  a  right  on  which  the  Siifety  of 
lL  Great  excitement  was  caused  by  his 
fter  a  careful  fcgal  consultation  it  was 
e  convicted  of  any  criminal  charge,  and 
ed  the  legal  penalty  of  that  fraud  which 
e  members  of  the  Stock  Exchange. 


SV  PERUVIAN  LOAN, 
n   Five  per    Cent.  Loan    hns    made    its 
es  of  Messrs.  Thomson,   Bonar,  and   Co. 
10,000,000  stock,  bearing  interest  at  the 
num  from  the  1st  day  of  Januaiy,  18 (5  5, 
don  and  Paris.     Although   the  nominal 
lount  required  is  only  al>out  £3,250,000, 
in  the  consolidation  of  the  old  debt,  and 
for  the  convej'sion  and  extinction  of  the 
iil  debt  of  the  countiy.     The  price  of  issue 
and  as  security  for  this  loan,  besides  trans - 
«  pertaining  to  existing  bonds,  the  Govern- 
?,  in  addition  to  all  its  revenues  and  re- 
lano  in  the  Cbincha  Islands  and  elsewhere 
value  the  capital  sum  and  in t*^ rest,  and 
at   all  times,   either  in  Great  Britain  and 
way,  a  sufficient  su[>ply  to  ensure  the  punc- 
and  i-edemption  of  tliis  loan  for  a  p(^riod  of 
►n  the  payment  of  eiich  successive  dividend 
sflect.     The  agents  and  actual  consignees 
at  Britain  and  its  dependencies  declare  in 
ks  of  guano  now  deposited  in  this  cou  Jtry 
)re3ent  market  value,  guarantee  the  punc- 
est   and    the  rtxlemy>tion  fund  to  the  1st 
The  details  of  the  advei-tisemcnt   show 
subscriptions  can    be    received    either  in 
are     very     clearlv     detined,    including 
nding   debt.     It  appears  that  subscribers 

3(5 


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454 


Suspemion  of  Attfeoods,  Bpooner  8f  Co. 


may  at  all  timefi  pay  up  all  undue  cash  instalments  m 
coiuit  of  the  respective  maturities,  at  the  rate  of  5  per 
annum,  and  receive  the  bonds.  The  payments  in  deposits, 
in  cash  or  bonds,  will  be  taken  by  Messrs.  Robarts,  Lubl 
Co-,  the  Consolidated  Bank,  and  lie  Agra  and  Mastermai 
The  brokers  are  Messrs.  Mullens,  Mar^ll,  and  Daniell^ 
Lcwia  H,  Haslewood. 


SUSPENSION  OF  MBSfiRS.  ATTWOODS,  SPOONER  A] 
BANK  AT  BIRMINGHAM. 

At  a  late  hour  on  the  evening  of  Friday,  the  10th  Mar 
rumoured  in  Birmingham  that  the  old-established  bank  o 
A tt woods,  Spooner  and  Co.  of  that  town  had  stopped  payi 
to  tho  great  surprise  of  the  commercial  world  the  fact  was 
aiiiKiunced  in  London  on  the  Saturday  morning.  The  com 
iiuti  tlismay  caused  by  the  announcement  in  Biimingham  we 
indescribable,  as  persons  of  every  class  deposited  their  i 
A  tt  woods',  and  it  was  generally  believed  that  at  least  three-i 
tlio  neighbouring  population  kept  their  accoimts  there.  ] 
nun^ber  of  oases  the  deposits  were  the  hard-earned  saviuj 
most  humble.  Many  of  the  deposits,  too,  had  remained  u 
for  a  generation.  Ladies  and  others  of  the  sex  in  lowei 
were  a  very  numerous  class  of  depositors.  Trust  moneys, 
belongiog  to  different  friendly  benefit  societies,  were  also 
with  tl>e  bank  to  very  large  amounts.  The  accounts  of  n 
manufacturers,  and  others  of  that  class,  were  not  so  nun 
they  w«re  a  few  years  ago,  many  having  been  transferred 
stot'k  Ijanks ;  but  still  there  was  a  sufficient  number  of  such 
with  tlie  firm  to  do  an  immense  amount  of  mischief,  and  t 
venience  which  has  been  felt  since  the  stoppage  has  been  c 
notwithstanding  that  the  most  prompt  assistance  has  boon 
by  the  local  joint-stock  and  other  banks  to  mitigate  the  evil 
11m  surprise  caused  by  this  stoppage  is,  perhaps,  gvph  grei 
it  otherwise  would  have  been  in  consequence  of  itn  liehig 
known  that  active  negotiations  were  on  foot  for  an  anialgiinui 
the  Birmingham  Joint  Stock  Bank,  and  had  so  far  proc*"c«it"i  sati 
that  the  shareholders  of  the  latter  institution  had  bet-n  eiillt}d 
*ind  their  sanction  obtained  to  the  amalgamation^  the  sta 
clejiosits  and  accounts  at  Messrs.  A  tt  woods*  justifying  the  b 
the  uDion  of  the  two  banks  would  be  highly  beneticLal  to  t 
hokh?rB  of  the  joint-stock  company  ;  but  when  the  stntt'  of 
came  to  be  investigated  it  was  discovered  that  the  old  bituk 
only  hopelessly  insolvent,  but  that  it  had  been  s**  for  wj 
Under  these  circumstances  the  negotiations  were  im media tt^l 
ijff,  »w\  at  an   adjourned  meeting  of  the  shareholding  of  ti 


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pension  of  Atttcoods,  Spooner  4'  Co. 


455 


(rhich  a  report  will  be  found  in  another  page)  the 
'  previous  meeting,   sanctioning  the  amalgamation, 

rescinded, 
lessrs.  Attwoodfi  and  Co.  was  established  as  far  back 
father  of  the  late  Mr.  Richard  Spooner,  M.P. ;  but 
latter  gentleman  in  November  hujt,  and  of  Mr.  Att- 
f^ear  previously,  left  Mr.  Henry  Marshall  the  solo 
the  firm,  and  that  gentleman,  the  moment  the  nego- 
imalgamrftion  were  finally  broken  ofl:',  decided  upon 
iv^ith,  and  at  the  termination  of  business  the  same 
L'e  finally  closed,  and  shortly  afterwards  the  following 
I  thereto  : — 

3clings  of  the  deepest  concern  and  distress  we  an- 
ng  to  circumstances  over  which  we  have  no  control, 
to  suspend  payment, 

"Attwoods,  Spooner,  Marshall,  and  Co.    "i 

evening  a  petition  in  bankruptcy  was  filed  on  behalf 
,  with  a  rough  statement  of  the  financial  position  of 
it  appears  from  the  annexed  report  of  a  meeting  of 
Id  on  the  IGth,  tliat  it  is  intended,  if  possible,  to 
:e  under  private  arrangement. 

the  suspension  was  announced,  the  subjoined  circular 
r.  Marshall  :— 

3eling8  of  the  deepest  concern  and  distress  we  an- 
are  oompollod  to  suspend  payment,  and  this  at  the 
after  several  months  of  negotiation,  we  had  confi- 
3  should  obtain  such  assistance  as  would  enable  us  to 
b  our  paiii  in  the  preliminary  agreement  for  the 
til  the  Birmingham  Joint-Stock  Bank.  In  this  hope 
^appointed.  Sums  of  money  to  a  large  amount  were 
the    bank    some    years  since  by  the  family  of  the 

this  circumstance  it  can  be  clearly  shown,  at  the 
failure  is  to  be  attributed.  For  the  last  ten  yeai^s 
been  made  to  redeem  the  loss  thus  occasioned ;  but 
en  partuilly  accomplished.  The  assets  of  the  bank 
till  veiy  considei-able,  and  there  are  real  estates  of 
ging  to  the  bank,  and  but  slightly  encumbered.  We 
suspending  payment  we  shall  be  considered  as  taking 
r  step  to  ensure  a  just  and  equal  distnbutiou  of  our 
'  creditors." 

a  from  the  report  that  Mr,  Whateley,  solicitor  to  the 
ting  of  creditors  gave  a  full  explanation  of  the  fore- 

and  Mr.  Laundy,  the  accountant,  presented  an 
alance-sheet,  showing  a  probable  dividend  of  about 
d. 


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450  SunpemioH  c/  Atticoods,  Spooaer  ^'  Co, 

The  committee  appointed  at  the  meeting  of  ciieditofs  i 
17th,  when  it  was  determined  to  notify  publicly  that  the  cc 
preiiared  to  negotiate  for  the  sale  of  tlie  property  anil  asset 
teuden  will  lie  received  from  any  persons  who  may  >»e « 
parchaidng.  It  is  rumonred  that  more  than  one  of  the  l* 
town  is  prepared  to  tender.  The  matter  is,  however,  sa 
no  means  free  Trom  difficulty,  because  a  certain  amount  o 
is  inevitable. 


A  meeting  of  the  creditors  of  the  bank  was  lield  in  ih 
Assembly-room  on  the  ICth  Mardi.  There  was  a  ven-  en  .wdcd 
in  fact,  many  of  those  interested  were  unable  to  obtain  lulmiad 
Town  Hall  being  otherwise  engaged,  it  ct)uld  not  bt'  liaJ  for  tii 

Mr.  J.  W.  Whateley  and  Mr.  W.  S.  Allen,  the  sulieitors  to  lA 
entered  the  room,  accompanied  by  Mr.  Laundy, thdr  atcciunti 
time  there  were  present  the  managers  of  the  priuei|al  banks 
many  bank  directors,  and  most  of  the  principal  crtftlitora  of  I 
Co.  Mr.  C.  F.  Kemp  (Kemp,  Canan,  Ford  and  Co.,  accountai 
street)  r^resented  some  of  the  London  creditors. 

The  Mayor  (Mr.  Henry  Wiggin)  was  called  upon  to  p 
Worship,  who  was  received  wifli  much  applani*e,  ?iiud, — *'j 
invited  to  preside  over  this  meeting,  and  altlionf^h  I  Uavi 
personal  interest  in  the  very  painful  business  that  luii*  called  3 
still  if  it  is  the  wish  of  my  feUow-townsmen  that  I  ^lunilii  oeci 
I  shall  feel  very  great  pleasure  in  doing  so.  (Hear.)  Hail  this 
one  of  an  ordinary  kind,  merely  afieci^g  business  men,  I  ahoi 
have  dedinod  to  come  here  to-day ;  but  unfortunaUly,  the  ev 
taken  place  really  amoimts  to  a  great  public  calauiity.  (Hca 
is  a  blow  the  severity  of  which  can  hardly  be  exprcssod,  an 
upon  the  industry  of  this  town  and  the  neighbouriug  diatrid 
and  Wolverhampton  like  a  withering  blight.  (Hear,  huir.)  I 
classes  are  sufferers  by  it.  The  creditors  include  not  only  biisij 
a  vast  number  of  other  persons  who  are  not  nearly  !^)  able  to 
own  interests ;  and  I  have  learned  with  deep  regret  that  m 
societies  and  other  institutions  connected  with  tlie  uvaking  d 
heavy  losers  by  this  failure.  Considering  these  circumstai] 
influence  which  such  a  disaster  must  indirectly  exert  upon  a 
of  persons  who  are  not  directly  concerned,  I  believe  I  am  oiily 
duty,  holding  the  office  I  do,  by  complying  with  tlse  request  I 
take  the  chair  at  this  meeting,  and  I  shaU  be  exccediDgly  p] 
little  assistance  I  can  render  in  this  way  should  ^^rove  to  be 
the  painful  circumstances  in  which  so  many  of  tlik;  persons 
are  imfortunately  placed.  (Hoar,  hear.)  Before  I  sit  diwu 
well,  perhaps,  were  I  to  explain  the  order  of  bu&iiiesfl,  (Hear 
been  called  together  by  the  solicitors  acting  on  btdialf  uf  Mej 
and  Attwoods,  and  they  will,  I  understand,  lay  Itefoie  you  a  ft 
of  the  liabilities  of  the  bank,  and  an  estimate  of  the  assets 
meet  those  liabilities.  When  that  has  been  dono,  1  ^liall  be 
from  any  creditors  any  suggestions  thoy  may  wi^li  to  ntler  a 
mode  of  dealing  with  the  estate.  It  is,  I  believe,  i  Mnipewut  I 
ing  to  decide,  or,  at  all  events,  it  is  ci»nipetent  for  tin:  crcditi 


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uspension  of  AUiioods,  Spooner  8f  Co.  457 

ite  shall  go  through  the  Bankruptcy  Court,  or  be  wound 
Tangenient.  On  thirt  point  it  is  not  for  ino  to  express  an 
El  matter  entirely  for  your  own  consideration.  But  I, 
3  allowed  to  say,  spciikiug  from  soino  exi>orience  as  a  busi- 
f  I  were  directly  concerned,  I  should  prefer  any  reasonable 
[iuient  rather  thiui  the  Bankruptcy  Court.  Some  of  us, 
iuow  that  estates  which  look  promising  at  the  beginning 
y  much  reduced  in  their  passage  through  bankruptcy,  but 
long  time  in  being  wound  up,  and,  in  a  cjuse  like  this,  in- 
ids  of  i>ersons,  it  appears  to  mo  that  everything  depends 
de  in  realising  the  jisf«ets,  and  dividing  them  among  tlie 
might  take  that  liberty,  I  should  say  that  you  would  d(» 
•  an  agreement  as  early  as  ix.'ssiblo  juj  to  the  manner*  in 
shall  be  dealt  with ;  and  if  you  can  see  any  way  in  wliich  the 
an  be  (piickly  and  inexpensively  divided,  1  tliink  you  will  do 
it.  It  has  been  rumoured — and  no  doubt  most  of  you 
hat  oilers  will  bo  made  to  tako  the  management  of  the 
elicve  the  creditors  of  all  further  trouble  and  anxiety  by 
thout  delay,  a  comjx^sition  on  the  amount  of  the  debts  duo 
r,  hear.)  If  those  offers  should  bo  made  on  what  you  con- 
ly  liberal  scale,  then  I  must  honestly  say  that  I  believe 
[)ll  worth  your  most  serious  consideration.  I  merely  throw 
on,  without  the  least  desire  to  dictate  to  you,  or  even  to 
►n  you  as  an  adviser.  Before  sitting  down  I  cannot  refrain 
anking  the  banks  of  the  tf)wn,  both  public  and  private,  for 
admirable  manner  in  which  they  stepped  forward  to  give 
xlation  to  the  creditors  of  Messrs.  Spooner  and  Attwoods, 
ig  so  they  greatly  mitigated  the  severity  of  the  blow,  and 
ght  otherwise  have  been  a  much  more  serious  disaster." 

lateley,  as  solicitor  to  Attwoods  and  Co.,  in  responding  to 
layer,  said  he  must  in  the  first  instance  crave  their  indul- 
rso  of  the  observations  ho  should  have  to  make,  because 
m  most  sincerely)  ho  never  felt  more  anxiety  or  more  dis- 
ho  sufferers,  than  he  did  at  the  present  moment.  It  IkkI 
to  be  asked  to  make  that  statement  because  Mr.  Marshall, 
ing  partner  of  the  firm  of  Messrs.  Attwoods,  Sjwoner, 
!o.,wivs  really  so  beaten  down  by  the  misfortune  which  had 
that  it  was  totally  impossible  he  could  make  any  state- 
before  them  that  day.  He  was  confined  to  his  own  house, 
receiving  every  attention.  He  (Mr.  Whateley)  was  com- 
L  in  the  strongest  terms  to  express  the  great  sympathy 
felt  at  the  calamity  that  had  fallen  upon  them,  and  ho 
could  a.ssure  them  that  nobody  deplored  the  calamity  more 
.  Marshall  did.  (Hear,  hear.)  He  thought  the  best  thing 
-he  short  statement  he  proposed  to  make  was  to  show  them 
bate  of  tlie  bank,  and  the  arrangements  at  the  time  the 
IV  come  to  an  end  commenceil.  The  partnership  of 
irshalls  with  Spooner  and  Attwoods  began  on  the  Ist  of 
and  was  brought  about  in  consequence  of  Mr.  Richard 
it  his  duty  very  strongly  to  remonstrate— ay,  to  insist 
;e  Attwood  putting  things  in  a  better  state  than  they  were, 
close  investigation  of  the  accounts  of  Mr.  Attwood  was 
was  found  the  position  in  which  he  was  j>laced.    He  sue* 


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458 


Siispi'/mon  of  AtttcoodSf  Spooner  8f  C0. 


cmaXwl  hm  fiitEi€r,  Mr.  Matthias  Attwood,  who  died  on  th6 
Nov«mlx?r>  1830,  aatl  who  by  his  will  left  (George  Attwood  1 
legiit.ee  ;aid  iIcvislh)  <»f  all  lus  estates,  which  were  very  ood 
and  \'ery  valuable.  Mr.  Qeorge  Attwood  at  that  time  was 
on ^03  most  manufacturers  were  aware,  several  concerns  of  con 
L^xtcut.  There  waA  a  colliery  at  Haughan,  rolling  mills  in  Birs 
A  in^M•t  niauufiictciry  in  Birmingham,  also  tube  works  in  Fi 
Rcnifti.  Mr.  Attwood  liad  for  some  time  been  feeding  these  ooncc 
mimey  fruru  the  bank.  This,  it  was  determined,  shoidd  be  stoppe 
for  as  [)ri«)Aible  thut  wa»  done ;  but  it  was  found  that  Mr.  Attwo 
waji  very  hirge,  and  na  his  health  was  breaking  up,  Mr.  Spoon 
uiiniHl  that  ho  i^hould  make  over  the  estates  he  held,  in  part  liqui 
the  debt  owing  to  tlie  bnuk.  He  (Mr.  Whateley)  was  sorry  to  s 
in  part  bcniidatjou  only.  He  was  there  to  tell  them  everything,  a 
oonceAl  nothing,  and  bo  pledged  himself  to  the  accuracy  of  ev< 
meut  hi)  made.  At  the  latter  end  of  .1853  it  was  found  that  Mr.  I 
dobt  amounted  to  £450,000.  He  was  xmable  to  pay  that  off;  ace 
an  arrangement  was  nuide  that  the  bank  should  take  the  esta 
valuatiun,  and  that  the  lunoimt  of  the  valuation  should  be  appli* 
re^iuction  of  the  debt.  The  estates  were  taken  at  £167,000,  ^ 
applied  aa  he  liad  stated.  Those  estates  were  now  in  possessic 
bank,  and  they  would  be  sold  imder  the  bankruptcy, unless,  as  he 
hoped,  tho  anticipations  of  the  Mayor  might  be  realised — tiiat  be 
separated  a  resolution  was  passed  to  wind  up  the  estate  by  private 
meut.  (Hear.)  That  would  be  the  best,  and  indeed  the  only  way 
ing  a  proper  realisation .  (Applause.)  He  had  said  that  Mr.  Geo. 
became  residuary  legatee  tmder  his  father's  will ;  in  that  instru 
father,  Matthiaa  AttwcMxl,  made  a  declaration  of  his  wish  that  his 
should  not  be  losers  by  any  sums  of  money  drawn  out  of  the 
Loudon  or  Birmiujjh&rn  by  his  sous,  and  he  directed  that  such  t 
IMud  off  out  of  biH  private  estate  by  his  executor,  Mr.  (Jeorge 
That  waH  done,  aud  the  transaction  increased  the  debt  now  owin 
bank  by  Mr.  George  Attwood's  estate.  What  the  value  of  Mr. 
Attwood*s  property  wa«  he  was  not  in  a  position  to  say,  for  he  r 
the  accounts,  nor,  be  believed,  anybody  else.  (Hear.)  After  the 
tiou  to  which  he  had  referred,  there  remained  a  sum  of  £250,000 
George  Attwood  to  the  bank ;  that  was  in  the  month  of  March,  1£ 
bank  took  care  to  get  bold  of  every  acre  of  land  belonging  t 
Attwo(xl,  alfio  of  all  his  ptock  ;  in  fact,  of  everything  he  was  pos 
wfi^  stripped,  in  re«titntion,  as  far  as  possible,  of  the  debt  which 
Ho  was  made  to  give  up  aU  the  share  of  the  profits  of  the  bankj 
to  h6  allowed  £1.IMX>  a  year.  This  took  place  early  in  1864, 
George  Attwood  lived  only  a  week  or  ten  days  afSber  the  est 
vested  in  the  bank.  That  being  the  state  of  oMnivB,  the  two  Mr.  I 
were  invited  to  join  in  the  bank  because  of  their  knowledge, 
habit?,  and  long  connection  with  the  concern,  in  order  that  if  \iq 
conjunetion  witii  Mr.  Spooner,  they  might  bring  matters  straig 
Messrs.  Marnli^dl  IahA  the  modest  sum  of  £750  a  year  each, 
^5poone^  ^tl/XH*;  ail  thr  surplus  went  to  reduce  the  debt,  Mr, 
hiu\  bcicn,  as  ho  bad  Baid,  in  the  habit  for  years  of  drawing  from 
whatever  mmis  of  moiiuy  he  wanted  for  the  purfK^Ro  of  eifcrryinj 
trwks  in  which  he  wa:i  Migaged.  That  was  one  way  in  which  bin 
besBi  created ;  another  mode  by  which  it  was  incrtsased  was  the  p 
the  tratU?meii  who  had  had  engagements  with  those  hrms^  but  the  t 


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(spemim  of  AtUcoods,  Spooner  Sf  Co. 


459 


to  close  every  one  of  those  ooncems,  and  to  stop  any  more 
of  the  bank  for  carrying  them  on.  From  that  time,  all 
ained  from  tlie  different  estates  and  other  sources  was 
[nidation  of  the  debt.  Mr.  Laundy  had  prepared  a  state- 
•unts,  which  he  would  read.  He  (Mr.  Whateley)  could 
ous  duty  had  been  to  do  the  bevst  for  the  creditors,  and  in 
which  had  taken  place  the  conduct  of  the  Joint-Stock 
mexceptionable.     (Applause.) 

le  accountant,  then  read  the  following  approximate  state- 
lated  March  10  :— 


LliiBUJTIfiS. 

^8  and  interest     

t  accounts,  £271,136  ;  deduct  bills  held  for 

vanced  on,  £50,090      

n       

;.,  to  bo  paid  in  full      

Total 


£718,973  19  0 

221,136    0  0 

19,370     0  0 

1,000     0.  0 

£960,479   19  0 


1,123.  12s.  2d.]  balance  at  Barclay's,  the 
land,     and    due    from    country    bankers, 

in  hand,  £106,588.  4*.  4d.;  iess  bills  held 
t  advanced  on,  estimated  £50,000 

considered  good 

considered  doubtful,  estimated  to  produce 

>njpanies     

hold  properties,  valued  at  £218,248  }  deduct 


Total    ... 


£76,388  3  10 

56,588  4  4 

234,825  0  0 

46,069  11  1 

4,203  10  0 

200,248  0  0 

£618,412  9  3 


us  shown  was  £342,000;  the  estimates  and  figures  had, 
lown  as  near  the  mark  as  possible,  and  the  rough  figures, 
3  imder  both  heads,  showed  12s.  in  the  pound, 
in  reference  to  the  foregoing  statement,  said  he  was  quite 
his  personal  knowledge  of  the  accounts,  from  having 
med  as  to  them  during  the  recent  negotiation,  the 
to  them  by  Mr.  Lamidy  was  perfectly  correct.  The 
asideration  was  in  what  way  the  affairs  of  the  bank  should 
[e  should  take  the  liberty  of  asking  the  Mayor  as  a  friend 
Lend  of  all,  and  had  been  a  true  one  in  the  matter  of  this 
d  have  the  kindness  to  move  the  resolution. 
ent^l,and  moved  the  following  : —  / 

pinion  of  this  meeting  the  affairs  of  the  bank  ought  to  be 
control  of  the  Court  of  Bankruptcy,  and  to  be  wound  up 
rangement ;  and  that,  accordingly,  a  committee  be  now 
rtain  and  consider  the  position  of  the  bank,  with  the  view 
earliest  possible  distribution  of  the  assets  among  the 
ich  committeo  have  power  to  negotiate  with  any  parties 


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400  Suspension  of  Atiwoodsj  Spooner  8f  Co. 

T\lio  may  be  willing  to  provide  funds  for  an  immediate  dividend, 
purchasers  ot  the  assets  of  the  bank  or  otherwise ;  also,  to  select  a 
meiKl  BTiiuible  assignees,  upon  whom  ultimately  will  devolve  the 
up  of  the  L'i^tate  in  any  mode  that  may  be  determined  upon,  and 
to  an  adjourned  meeting  of  the  creditors,  to  be  held  this  day  w< 
comtiiittt'i}  to  consist  of  the  Mayor,  Mr.  Jeremiah  Mathews,  I! 
DixoD,  Mr.  George  Turner,  Mr.  John  Oough,  Mr.  P.  W.BenneW 
JoJiii  HiigheB." 

^  Tim  Kev.  Dr.  Miller,  in  seconding  the  resolution,  spoke  of 

msiiiner  in  which  the  working-classes  bad  behaved  under  the  in 
this  calamity,  though  they  were  very  great  sufferers.  There  cc 
better  guarantee  that  this  estate  would  be  wound  up  as  well 
poHsihie  for  it  to  be  than  that  their  beloved  and  honoured  friend 
W  els  i mi  ail  Wiateley  was  concerned  in  it.  (Great  applause.)  Lool 
niaguitudo  of  the  interests  at  stake,  he  rejoiced  to  see  their 
frieml  pr-^seut  on  that  occasion  ;  it  was  a  guarantee  that  nothi 
hanii  m  dishynourable  would  take  place.  (Applause.)  Dr.  Mill 
tribute  of  respect  to  the  memory  of  the  late  Mr.  Spooner,  wh 
would  J  he  felt  sure,  come  out  unsullied  from  the  investigatioi 
take  place  ;  and  as  for  the  two  sons  of  that  gentleman,  he  had 
for  ft  t  at  in  u  that  they  had  not  received  one  sixpence  from  thei 
oHtattv     (Hear.) 

Mr,  John  Suckling  supported  the  resolution,  but  declared  th 
opinion,  it  was  a  grievous  mistake  that  the  bank  had  not  beei 
years  agt>,  when  there  was  a  deficiency  discovered  of  nearly 
He  ikho  complained  of  moneys  having  been  received  up  to 
though  a  petition  in  bankruptcy  was  filed  by  Mr.  Marshall  at 
live  i/clock.  Mr.  Suckling  suggested  the  addition  of  two  other 
to  the  committee — viz  ,  Mr.  J.  R.  Allen  and  Mr.  John  Shackel. 

Thi*  wrt.H  assented  to.  and  the  name  of  Dr.  Miller  having  been  i 
re«tduti(»n  was  carried  unanimously. 

The  Mayor  next  moved  the  following  resolution  : — 
'^  That  to  E^ecure  the  appointment  of  fit  persons  as  trustees  thii 
reconiuieudi  creditors  to  prove  their  debts,  and  to  give  powers  oi 
to  irote  upou  the  trusteeship  uuder  such  arrangements  as  the  c 
may  sauetioji  and  announce  by  public  advertisement" 

Mr.  Alderman  Turner  seconded  the  resolution,  whieli  was  abo  i 
3Ir.  Miebael  Maher  asked  the  chairman  what  interpretation  he 
the  word  ''  negotiate "   in  the  resolution,   and  what  power   t 
conferroil  upon  the  committee.     (Hear,  hear.) 

The  Mayor  said  the  committee  would  report  any  proi>oftal  tli 
think  lit  to  make,  such  proposal  to  be  sanctioB*xl  or  rejucto 
a^ljoTirned  meeting  of  creditors. 

Mr.  Whateley  moved  a  vote  of   thanks  to  the  Mayor  for  tin 

jiatience,  and  kindness  displayed  by  him  in  presiding.     In  doiiijj 

Whateky  said  he  was  quite  sure  they  would  never  rej>ent  the  \\n 

resolution  tliey  had  passed  in  reference  to  this  important  businesi 

Tht2  vote  was  carried  by  acclamation. 

[Ou  the  23rd  March  the  adjourned  meeting  wafi  held,  the  Ma} 
chair,  when  Dr.  Miller  briefly  stated  the  course  the  committee  were  ] 
but  it  waa  impossible  in  one  week  to  get  through  the  wi»rk  they  1: 
and  therefore  proposed  a  further  adjournment  to  the  30th  Mart 
was  at  once  agreed  to,  and  the  proceedings  terminated.] 


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461 


^'tcjal  ISisccKunn. 


DS  BANKING  COMPANY,  EX  PARTE   BARRETT. 

iglit  before  Vice- Chancellor  Kiudersley  in  the  Court  of 
Uh  March. 

he  court  on  adjourned  HunimonseJ?  from  chambers,  the 
jther  Mr.  Barrett  was  properly  placed  on  the  list  of  con- 
jct  of  22  new  shares  in  the  company.  The  capital  of  the 
red,  consisted  of  £1,000,000  in  10,000  shares  of  £100 
50  were  taken,  and  the  remainder  were  reserved.  In 
tors  determined  to  issue  the  remainini^  2,050  shares  at 
I  only  £15  a  share  was  paid  on  the  original  shares,  the 
ares  was  practically  at  £15  premium.  Tlie  new  shares 
1  tlie  proportion  of  one  new  share  to  every  live  old  shares, 

hiwl  55  old  shares  he  wtis  consequently  entitled  to  take 
e  applied  for  25,  but  only  22  were  allotted  to  him,  .ind 
hem.  On  the  19tli  of  September  following  the  bank 
and  in  October  an  order  was  made  for  winding  it  up, 
A  since  been  placed  on  the  list  of  contributories,  not 
is  56  original  shares,  but  in  respect  of  the  22  new  shares 
id  to  take.  Ho,  however,  disputed  his  liability  in  ro- 
'  shares,  on  the  groimd  that  he  had  been  induced  to  take 
Bpresentation.  In  February,  18G4,  the  directors  pub- 
which  they  stated  that  the  profit  on  the  preceding  year 
^Ir.  Barrett  alleged  that  he  was  induced  to  take  the 
cit  belief  that  the  stiitements  in  the  report  were  true, 

false,  inaf*much  as  debts  to  the  amount  of  upwards  of 
returned  as  good  which  ought  to  have  been  returnetl  as 
b  was  false  in  other  respects.  Anotlier  ground  on  which 
as  that  the  contract,  if  any,  to  take  the  shares  was  a 
:e  the  shares  that  were  to  be  in  force  at  that  time,  but 
I  come  into  force  on  the  ]st  of  October  following,  until 
s  not  to  participate  in  profit  in  respect  of  them,  and 
;  to  be  liable  for  loss. 

^r.  Kekewich  appeared  for  the  official  liquidator  ;  Mr. 
Lckens  for  Mr.  Barrett. 

3llor  said  ho  saw  nothing  in  the  circumstances  to  induce 
I  concliusion  that  the  contrjict  was  not  in  jmcsentif  but 
r  did  he  think,  according  to  the  cases  cited,  that  there 
epresentation  to  Mr.  Barrett,  as,  if  it  were  misrepresent- 
resentation  from  the  company  to  Mr.  Barrett  as  a  mem- 
y.  He  was  of  opinion  that  Mr.  Barrett  was  rightly 
>f  contributories,  but  as  it  was  a  proper  question  to  bring 
e  must  have  his  costs  out  of  the  estate, 
the  course  of  the  argument  that  the  decision  in  this  caso 
t  of  a  great  many  other  shareholders  who  had  taken 
ar  circumstances. 


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462 


Imports  of  Joint-Storh  ^aiih^. 


BANK  OF  ENGLAND. 

A  UKNERAL  court  of  the  Governor  and  Company  of  the  Biiuk  of 
warf  held  on  the  16th  March  at  the  board-room,  to  ooBsiiicr  the 
Mr.  Henry  Lancelot  Holland,  the  deputy- governor,  in  thu  chair. 

The  Deputy- Governor,  after  expressing  regret  at  tho  absen 
govtnior,  who  had  recently  sustained  a  very  severe  accide 
renckTcd  his  attendance  impossible,  added  that  altlwugh  ho  eou 
prL'Hcut  to  hear  the  verification  of  what  he  had  addrensed  to  th 
iant  uGcasionjVet  he  was  with  them  in  heart  and  feeling  for  the  ii 
t h  0  b  Eink.  (Hear,  hear) .  He  begged  to  acquaint  the  ton rt  that  t  h 
f)f  tlio  half-yearly  meetings  appointed  by  the  bye-laws  for  the  dec: 
divi<lend.  The  net  profits  for  the  half-year,  eliding  on  the 
February,  were  £807,317. 13«.  2d.,  making  the  amount  of  the  re 
day  £3,830,084.  7«.  lOd. ;  and  after  provi<5ng  for  a  dividend  ai 
of  5i  per  cent.,  the  rest  would  be  £3,029,669. 7a.  lOd.  Tht?  tlire© 
foro  proposed,  if  the  shareholders  approved  of  it,  for  this  h 
dividend  of  6J  per  cent.,  payable  on  the  6th  of  April,  without  a 
tion  on  account  of  income-tax.  That  was  the  question  t  hey^had 
to  the  court  of  proprietors. 

The  report  was  unanimously  adopted,  and  the  court  were  in£( 
diviilend  warrants  would  be  ready  to  be  delivered  sdU  paid  on 
the  <3th  of  April. 

Mt.  Clarke  proposed  a  vote  of  thanks  to  the  governor,  deputy, 
and  tho  directors. 

Mr.  Poole  complained  that  a  loan  had  been  made  to  the  Spanii 
niuiit  by  some  of  the  directors  of  the  Bank  of  Euglimd,  ai 
fjenerally  believed  in  Spain  the  advance  had  been  made  by  th 
England  itself. 

Mr.  Alderman  Salomons  objected  to  vague  chargers  of  this  d 
being  made  without  notice  being  given.  He  IxTe  testimo 
admirable  way  in  which  the  governor  and  court  of  dircd^ors  hadl 
the  affairs  of  the  Bank  during  the  last  half-year.  II  the  Bank  o 
were  well  managed,  as  it  had  been,  they  never  coultl  have  a  cnus 
great  safety  of  the  commercial  and  monetary  intercsls  was  the  p 
the  governors  and  directors  of  the  Bank,  and  the  example  they 
a  recent  crisis  was  highly  beneficial.  (Hear,  hear.) 

Mr.  J.  Higham  objected  to  individual  directors  of  the  Bank  o 
a^lvaacing  loans  to  a  defaulting  government.  Buch,  a  cour» 
denined  by  the  majority  of  the  monetary  and  commercial  world, 
directors  ought  not  to  remain  connected  with  the  Bank. 

The  Deputy-Ohairman  had  no  hesitation  in  saying  that  th« 
England  1:^  nothing  to  do  with  the  loan  referred  to. 

Thanks  were  then  voted  to  the  governor  and  the  comt  of  dire 
the  business  concluded. 


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463 


HE  ADELPHI  BANK,  LIMITED. 

f-yearly  meetiug  of  the  sharelioldors  oi  tiw  Adelphi 
s  held  at  tbc  Clareudon  H«x^nis,  Suutli  John  Btreei^ 
'4tli  January,  Mi*.  \V.  R.  Camidge  in  iko  cltair;  a  large 
Iders  being  present, 

id — **  Gtnitlcmen,  we  Lavo  genei'JiHy  oouunenced  by  read- 
jnt  calling  the  meeting ;  that  I  pre.Hiuiit3  yon  \sill  dis- 
;  next  pLico,  the  manager  l^as  generally  read  tlie  reports 
b  haH  been  aoggeeted  to  me  that,  iiia^niucti  as  ewry  sbai-e- 
4  the  report  la  Ms  poflseesiou,  it  i:i  uxmectsBsary  to  go 
oi  it-  Tliat  is,  of  course,  loft  with  you ;  if  you  thiidc 
iiiager  will  read  it  as  hitherto/* 

of  Mr.  Samuel  Brown,  of  Lt»ndon,  seconded  by  Mr. 
that  the  following  report  and  statement  of  accounts 

ircctors  much  fiati^action  that  they  are  able  to  present 

■unts  which  ao  olearly  evinces  the  continued  proBpcrity 

acoompauying  balanoo-shoet  haft  xmdergone  a  strict 

coniniitttje  of  three  members  of  the  board;  and  the 

igbly  fiatisfied  that  every  asset  now  upon  the  books  may 

7  rirtka)  be  tnkcn  as  gixKl.    A  dividend  hm  been  dedu-ed 

ar  at  the  rat*  t>f  10  per  cent,  per  annum  (clear  of  in- 

ill  be  payable  r»n  and  tiitor  the  25th  January.     The  re- 

idn  at  £4r»^fjO0,  having  been  increased  by  £15,000,  the 

iho  new  ahareSjand  £1,500  from  the  profits  of  the 

ion  to  wluch  (autl  after  writing  off  all  known  bad 

itiJV.  18j.  U.  has  been  carried  forward  in  favour  of 

Jar.     In  consequence  of   the  new  issue  of  Bhare»,  the 

Iders  has  been  more  than  donble^i,  and  the  flirectors 

to  the  entire  proprietary,  for  tho  exercise  of  their  in- 

'  -"'I  extending  the  ooimetiionB  of  the  bank.     "Ehtring 

rs  were  fully  alive  to  the  extraordinary  riKks  that 

iiijh  rates  which  ruled  in  the  money  market,  oud 

.  '     -     -!   the  eommimity  ;  ^md  they  would  not  be  in- 

L;.vu.-,wiir^nu  of  a  merely  speculative  nature,  which  ti»ey 

:  than  likely  to  result  in  ombarrn«8ment,  if  not  ulti- 


'^Jccotmts^frmn  June  ^th  t&  Ikcem^'  'Mgt,  leiN. 

LU.IIILITiBA, 


HIM.   it  £10  each,  J&-I2,930i  on 

.  .._li,  i.tu,uLHi;  making  £B&Jr2(}    1.-^ 

«M  «**  ••♦  *■«  p»» 

L  on  current  and  other  account  - 

kit  report,  £iiO,000 ;  prcttiinnis  o[i  6,Ui>'> 

aadi,  £l5t</D0  J  amount  adrlcil  th?s  hnll- 

oow  dnr.%  and  diTidends  un|);iM 
riod  forward  to  neatt  half-jTa  r 


£360,220 

0 

a 

4:85,554 

0 

0 

ltj4,l6S 

15 

«v 

v;  '.Mfi 

1.) 

n 

,  .-  i 

ir» 

H 

ll4 

18 

I 

X3W,b'Jlh 

d 

a 

464 


Adelphi  Bank. 


Cr. 


A&&1VT8. 


^^ 


CY. 
Bills  discounted,  promissory  notes,  &c. 

Bank  premises,  &c.,  &c 

Cash  on  hand  and  at  call 


rBOFIT   AND  U>^  ACCOUNT. 

hr. 

General  expense?,  including  salaries,  stalioticrr,  dircotorft' 
remuneration,  law  expenses,  allowances  Ibr  b.ul  and  doubt- 
ful debts,  &c - 

Interest  on  deposit^!,  &c.  ... , 

Dividend  now  due *. 

Amount  added  to  reserve  fund ,, 

Balance  carried  forward  to  next  half-yc  ur  , .«. 


Cr. 
Balance  brought  from  previous  half-year    ,.♦ 
Collected  on  account  of  amounts  prcvioiialy  decUred  bad 
Proets 


The  Chairman — "  I  think  you  will  agrco  Tsrith  mo  tliat,  coi 
commercial  crisis  through  which  we  have  jta^neJ  during  the  las 
the  report  is  a  very  favourable  one.  In  ItKikiiig  tiver  it  yuu  ^ 
that  it  presents  an  increase  in  nearly  every  particular.  There 
crease  in  the  subscribed  capital,  a  large  in  ereaao  in  tlie  pjud-up  < 
large  increase  in  the  reserve  fund ;  and  diunug  th<j  1  awt  six  muu 
ber  of  shareholders  in  the  bank  has  Ix^u  inure  tlian  doublc^L 
I  think  these  particulars  are  grounds  fnr  mutual  j^^ratulatiou 
gratulate  the  shareholders  on  such  a  result.  1  du  nut  think  it 
this  time  to  go  through  the  report  item  by  item,  because 
precious.  I  may  say  a  word  or  two,  however,  aa  ti>  the  repoi 
how  it  has  been  got  up.  There  have  bt*en  remarks  made,  . 
some  persons,  that  a  balance-sheet  like  this  Bhouhi  be  audited 
— some  auditor  or  auditors  independently  of  the  lx»ard.  Now 
for  all,  to  say,  on  behalf  of  myself  and  the  directors,  that  tl 
the  slightest  objection  to  an  auditor  or  auditors  being  apix>int 
as  they  are  not  afraid  of  the  strictest  investigation  uxto  the  a£ 
bank  ;  but  the  appointment  of  an  auditor,  as  you  very  well  ki 
with  the  shareholders,  and  not  with  the  board  of  directors, 
directors  have  done  what  the  articles  of  jLs.sociatJon  compel  tl 
fact ;  that  is,  to  appoint  a  committee  of  themselves  to  in^ 
accounts  and  examine  the  securities.  That  committee  has  bet 
as  you  are  informed  in  the  address  aJinexe^i  to  this  report,  aj 
done  their  duty,  I  can  say,  to  the  utmost.  It  is,  however,  U 
holders  to  take  action  in  reference  to  the  aurliting  of  the  aocmu 
be  thought  advisable  at  this  meeting  tj  ap]K>iut  an  auditor 
the  directors  will  not  offer  the  slightest  o\)jfK;tion  to  that  com 
said  this  much  about  the  audit,  I  will  tell  you  really  what  hi 


1 

1 


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AdcJjihi  Bank.  465 

o  committees  appointed  inBtejul  of  one, as  stated  here.  One 
a  very  pleasant  name, "  the  bad  debt  committee."  (Laugh- 
i  member  of  both  these  committees,  and  can  spcjik  with 
at  they  have  done.  The  committee  called  tlio  bad  debt 
rough  the  whole  of  the  accounts  one  by  one,  calling  over 
for  information  from  the  ofticials  of  the  bank,  and,  after 
had  to  say  about  each  account,  the  committee  declared 
be  gocxl  or  batl ;  and  I  can  say,  having  gone  over 
myself,  that  where  any  account  ai)ix)i\rod  to  be  bad,  it 
•fl*  as  ba^l,  and  has  not  been  taken  as  an  asset  of  the 
here  are  accounts  which  are  somewhat  dubious  as  totlie 
ome  of  these  have  been  written  off,  and  I  believe  that 
at  are  on  the  books  are  really  good  accounts,  subject  (as 
]o  the  ordinary  risks  of  business  ;  and,  of  course,  when 
stock  in  his  own  affairs,  when  he  takes  a  lot  of  debts  as 
ry  well  that  there  may  be  risks,  and  that  some  of  them, 
by  him,  may  turn  out  to  be  ba<l.  We  have  written  off, 
considered  bad  as  bad  ;  and  I  believe  every  accoiuit  on 
sed  in  the  report,  is  a  good  account  at  this  time.  That 
lebt  committee  did.  (Hear,  hear.)  As  to  the  other 
5Cond  committee,  called  the  *  audit  committee' — they 
le  securities  of  the  bank  as  well  as  the  accounts,  and 
Ivantage  of  being  on  the  former  committee,  I  was  pre- 
lers — Mr.  Glover  and  Mr.  Fisk — to  go  into  the  secu- 
,  and  we  did  so.  Every  bill  that  has  been  discounted 
[ussed  through  our  fingers,  and  every  security  deposited 
been  examined  and  compared  with  the  books,  so 
on  looking  at  the  totals  in  the  balance-sheet, 
the  books,  and  looking  at  the  bills  Avhich  had 
that  they  all  agreed  with  the  results  you  find 
7e  also  looked  at  some  bills  that  were  called  *past 
Tal  of  these  were  written  off  as  bad,  and  have 
and,  therefore,  have  not  been  taken  as  good  in  the 
Having  done  this,  I  can  B-peiik  with  confidence  about 
am  convinced  that  if  wo  had  a  dozen  auditors,  however 
night  have  been,  they  would  not  have  made  a  stricter 
these  committees  have  made  into  the  affjiirs  of  the  bank* 
me  has  gone  so  far  that  I  scarcely  know  what  particular 
Something  has  been  said,  and  especially  by  the  new 
ference  to  our  not  being  quoted  in  the  list  of  the  Stock 
some  it  has  been  thought  that  there  was  sometlung  in- 
our  constitution.  That,  however,  I  am  glad  to  say,  is 
reason  of  our  not  being  quoted  on  the  Stock  Exchange 
re<lucing  the  amount  of  our  shares  from  £100  to  £20. 
sily  engaged  in  completing  that  arrangement,  a  new  rule 
^tock  Exchange  afl'ecting  all  new  companies.  We  were 
)r  we  did  not  know  what  the  Stock  Exchange  were  doing, 
this,  that  in  all  new  companies  the  Committee  of  the 
squires  that  10  per  cent,  of  the  nominal  capital  shall  be 
[>ne-half  of  the  shares  shall  be  subscribed  for.  Now,  if 
id  the  amount  of  our  shares  from  £100  to  £20,  there 
lo  diflSculty  whatever,  because  we  should  have  fulfilled 
■eference  to  the  amount  of  capital,  and  more  than  fulfilled 
eference  to  tlie  number  of  shares.    I  do  not  affect  to  say 


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466  Adelphi  Banh 

that  it  is  not  an  advantage  to  be  quoted  on  the  Stock  Excha 
if  I  said  8o,  I  should  most  probably  be  oontradicted  by 
of  the  London  Stock  Exchange  whom  I  see  present.  I 
Brown.)  I  do  not  affect  to  say  that  it  is  not  impo 
do  say  that  the  loss  we  have  apparently  sustained  b; 
quoted  on  the  Stock  Exchange  is  more  than  counterbab 
limiting  of  the  liability  of  every  shareholder  from  £100  i 
plause.)  I  will  say,  moreover,  that,  in  some  respects,  it  hai 
fortunate  for  us  that  we  have  not  been  in  the  Stock  Exchani 
last  six  months,  for  the  fluctuations  in  the  price  of  the  8har< 
banks  has  been  very  great,  and  that  of  course  has  been  mac 
has  affected  in  some  degree  the  interests  of  those  banks 
shares  have  not  depreciated  in  their  premiums  in  anyth 
degree  that  those  of  some  of  the  banks  have  done  that  liav< 
in  the  Stock  Exchange.  The  shares,  at  present,  are  selli 
fair  premium,  and  I  have  no  doubt,  after  this  report  gets  ox 
meroal  world,  the  shares  will  be  worth  still  more  than  at  pr 
hear.)  Having  ventured  to  make  these  few  statements,  I  w 
you  longer  than  to  say  that  this  bank  has  been  progressii 
factor ily  during  the  last  six  months.  In  current  accouni 
court  to  have,  and  we  should  be  glad  if  the  shareholders  ^ 
mend  their  friends  to  bank  with  us — ^the  number  of  curreni 
increased  during  the  last  six  months  from  375  to  462,  beiD 
in  current  accounts  of  77.  (Applause.)  Qi  course  it  is  ] 
picture  accurately  the  future  of  the  bank,  but  wo  may,  I  tl 
history  in  the  past  as  an  earnest  of  the  future,  and  I  fir 
believe,  if  its  affairs  continue  to  be  faithfully  administered,  t 
will  be  one  of  prosperity  and  continued  progress.  (Appl 
these  remarks  I  beg  to  move  the  adoption  of  the  report. 
•Mr.  Anthony  Fisk,  deputy-chairman,  seconded  the  motioi 
Mr.  Samuel  Brown  said — "  This  is  the  first  time  I  have  h 
tunity  of  attending  one  of  your  meetings,  and  that  it  shoul< 
and  full  gives  me  great  pleasure  as  it  must  do  you.  Bui 
attended  this  meeting  at  some  cost  to  myself,  and  having 
purpose,  I  do  not  tliink  I  should  be  doing  my  duty  to  the  sha 
even  to  yourself,  if  I  were  to  let  this  report  pass  without  so 
ments.  When  tnis  report  reached  me,  I  did  not  deem  it  to 
tory  one,  and  I  have  a  few  reasons  for  making  that  observati 
us,  and  you  have  elaborated  that  remark  in  your  speech  i 
holders,  that  the  accompanjring  balance-sheet  has  under^ 
examination,  and  soon,  and  you  have  explained  how  tl 
tion  has  taken  place.  Nevertheless  I  deem  it  my  duty 
holder,  to  ask  the  other  shareholders  if  they  do  i 
it  desirable  that  independent  auditors  should  be  app 
the  view  of  testing  the  figiures  of  that  balance- sheet.  Yon 
very  correctly  before  this  meeting,  that,  with  yourselves 
yourselves,  the  utmost  care  is  taken  that  the  results  shal 
depicted  before  they  are  stated  to  the  shareholders ;  and  wit 
no  fault,  neither  do  I  say,  nor  think,  nor  dream,  that  then 
wrong.  You  vouch  for  it  yourself,  and  the  investigation  made 
described  it  by  yourselves,  is  of  far  greater  value  than  an  inv 
independent  auditors  ;  but  I  put  this  question  to  you,  whethc 
place  us  on  a  par  with  similar  institutions,  it  is  not  desirab 
after  all  this  care  which  you  have  taken  with  respect  to  ih^ 


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AdelphiBauL  467 

anditorft  independently  of  the  Board  ?  That  ia  for  the 
r.     You  have  given  your  reasons  why  you  tliiuk  there 

this,  and  I  will  at  once  bow  to  their  decision  if  the 
ame  opinion.  All  I  say  is,  that  it  is  not  in  accordance 
of  similar  institutions.  I  next  como  to  what  is  far 
he  figiires  themselves.  You  tell  us  that  your  reserve 
500;  that  it  has  been  increased  at  this  juncture  by 
iiiums  on  5,000  shares  at  £3  per  share ;  and  that  you 

0  that  large  amoimt  £1,500  of  your  eanaings  diuing 
bs,  only  carrying  forward  aa  the  current  balance  for 
ings  £700.  Now,  turning  to  tlio  balanc^^-slieet,  I  see 
:  di^-idend  now  due  at  10  per  cent,  and  the  dividends  un- 
>00.  I  put  your  own  figures  together,  and  I  find  that 
spective  of  the  £15,000  which  has  been  naturally  trans- 
ve  fund  as  premiiun  upon  tlio  shares  issued,  have  been 
'ou  have  adverted  to  the  recent  crisis,  aud  I  have  no  doubt 
mmercial  world  know  that  the  crisis  througli  which 
old,  have   passed  during  the   last  six   montlis,  more 

a   panic    tlian    even    the    oldest    rii    the    room   can 

place   before,  though  that  panic  was  certainly  tided 

sir,  taking  these  figures,  and  taking  the  facts  which  we 

ard  to  new  banks  and  their  peculiar  position ;  taking 

,  the  state  of  commercial  crodit,  and  the  rate  of  discount, 

1  period  for  any  banking  iustitution  to  pass  through, 
hrough  it  in  a  manner  for  which  I  think  the  highest 
credit  is  due  to  you.  (Cheers.)  There  cannot  bo  the 
)ut  that.  But,  sir,  I  do  say  this,  tliat  although  that 
led  to  have  passed,  yet  to  a<ld  £1,500,  in  a/ldition  to 
eserve  fimd,  leaves  yourselves  in  a  position  unequal  for 
rthcoming  events.  You  do  not  know  what  may  arise, 
using  through  a  period  of  very  high  rates  of  interest, 
know  that  you  will  get  any  more  than  5  or  5^  or  G  ]xn* 
isuing  six  months,  and  tliat  of  course  will  not  i^roduco 
dend.  You  may  also  have  bad  debts  which  you  do  not 
)a<l  debt  which  you  <lo  not  look  for  of  £3,000  or  £4,0(X) 
re  dividend  on  the  hea<l,  and  you  may  only  bo  able  to 
hercfore,  I  ask  you  wliether  it  would  not  be  more  com- 
own  p<^>sition,  and  with  the  proper  ninnagement  of  this 
for  the  future  interests  oi  the  sliareholders,  instond  of 
X)  to  the  reserve  fund,  that  you  should  hold  it  over  as  a 
?by  better  secure  the  future  dividends  of  your  share- 
;ard  to  the  dividend  of  10  per  cent.,  it  seems  to  me  that 
interfere  with  that ;  because,  according  to  our  articles  of 
ireholder  can  ask  for  a  higher  dividend  than  at  the  rate 
'on  have  chosen  to  give  a  dividend  at  that  rate  ;  but  I 
r  to  nmk©  your  own  position  more  stable  during  the 
IS,  whether  it  would  not  be  bettor  that  the  sharehohlers 
this  question,  and  hold  over  the  £1,500  as  a  current 
iew  to  future  advantage.  There  is  only  one  other  matter 
10  to  mention,  though  I  do  not  want  to  do  it  at  the  cost  of 

There  is  a  meeting  now  being  held  in  London  of  a  bank 
r  own,  the  proprietors  of  which  must  have  been  wofully 
o  have  veiy  much  to  call  u^xm  their  directors  to  answer 
\^  isj  held  to-day,  and,  while  I  do  not  wish  to  sit  in  con-  ^ 


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Adelphi  Bank. 


demation  of  those  persons  who  may  have  done  wrong,  I-  asl 
holders  here  to  be  by  all  means  guarded  against  such  proceed! 
hear.)  We  have  to  thank  you  for  the  past.  The  past  liistory 
banking  institution  is  better  known  to  you  than  perhaps  to  m] 
I  have  taken  very  considerable  interest  in  its  formation,  and 
progress  with  the  greatest  care ;  and  I  can  vouch  for  the  accur 
word  that  you  have  spoken.  I  say,  then,  keep  on  your  guard  as  y< 
hitherto,  and  you  will  make  yourselves  a  greater  name  than  tl 
their  kite  and  fall  down.  (Hear,  hear.)  Continue  the  same  i 
policy,  and  you  will  be  a  great  success.  (Cheers.)  I  say  thif 
feel  that  I  must  say  something  to  undo  what  otherwise  might  b 
a  reflection  upon  you.  I  do  not  want  to  reflect  upon  you ;  1 
you  fairly  to  consider  the  suggestions  I  have  made  for  your  o^ 
the  sake  of  your  shareholders.  I  do  Dot  know  whether  it  is  c< 
me  to  move  any  resolution  on  the  subject. 

The  Chairman — We  are  very  much  obliged  to  Mr.  BrowB 
for  any  suggestions  that  he  may  make ;  and  his  coming  all  t 
London  to  attend  this  meeting  evinces,  I  think,  the  interest 
the  affairs  of  the  bank.  With  regard  to  the  first  point  lie  has  mei 
with  reference  to  the  audit,  I  think  I  made  our  position  suflii 
to  you  in  what  I  stated  about  the  auditors.  If  it  is  the  will  of 
to  appoint  auditors  for  the  future,  it  is  in  the  hands  of  the  s 
and  the  directors  do  not  object  to  it.  With  reference  to  Mr. 
marks  as  to  the  balance,  it  seems  to  me  that  he  is  almost  mi 
tinction  without  a  diflerence.  The  £2,200  has  been  divided 
reserve  fund  and  the  balance  to  be  carried  forward  for  the  currei 
but  both  the  amounts,  no  matter  whether  it  is  the  reserve  fund  oi 
carried  forward,  are  available  to  meet  any  contingency.  (Hear, ! 
minds  me  of  a}>erson  being  very  particidar  in  reference  to  the  vj 
bers  of  his  cash-box,  as  to  putting  silver  into  one,  gold  in  the  oth( 
forgetting  that  all  the  chambers  are  equally  available  for  ( 
(Laughter.)  I  imagine,  too,  that  this  amount,  being  placed  to 
fund,  in  reality  puts  us  in  a  better  pasition  than  if  it  stood  in  t 
of  a  balance  carried  forward.    I  think  the  managers  and  direc 

no  less  careful,  but  perliaps  more  so,  by  having  a  small  hsXi 

forward  than  if  they  had  a  large  one.     (Hear,  hear.) 
Mr.  Fisk — I  think  that  the  amount  added  to  the  reserve  1 

held  decidedly  more  sacred. 

The  Chairman  remarked,  in  further  allusion  to  Mr.   Browi 

valued  suggestions  from   London  very  much,  although    all 

London  were  not  very  popular  just  now.     (Hear,  hear,  and  lai 
Mr.  Brown  said  he  liad  no  wish  to  press  the  matter  further 

thought  the  plan  adopted  in  the  accounts  was  the  best. 
The  motion  for  the  adoption  of  the  report  was  tlien  put 

unanimously. 
The  Chairman — We  now  proceed,  genUemon,  to  elect  four 

place  of  those  retiring. 

The  following  were  the  names  of  candidates : — Mr.  John  Da 

man ;  Mr.  Joseph  Hickey,  boot  and  shoe  maker ;   Mr.  WiU 

¥nright,  wine  and  spirit  merchant ;  Mr.  William  Pennington 

owner;    Mr.    William    Litherland,    cliina    merchant;    Mr. 

Williams,  cotton  broker. 

The  voting  papers  were  then   collected,  and  Mr.  Henry  d 

Mr.  Samuel  Brown  appointed  scrutineers. 


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AiUlphi  Bank.  469 

s  retired  to  examine  the  papers,  and  in  about  half-an- 
rhen  the  chairman  announced  tlie  result  as  follows : — 
^,121  votes  ;  W.  Litherland,  2,118  vot-es  ;  W.  Pennington, 
m.  Wainwright,  2,001  votes ;  J.  Davies,  299  votes ;  J. 

ms,  Litherland,  Pennington,  and  Wainwright,  were  then 

cted.     (Cheers.) 

— That  will  terminate  the  business  of  the  meeting,  gen- 

:)mething  else  remains  to  be  said  by  any  other  share- 

ing  papers  will  now  be  burned. 

les — I  think  we  have  a  duty  to  perform  to  the  chairman 

Qer  in  which  the  alTairs  of  the  bank  have  been  brought 

The  large  attendance  which  we  see  on  this  occasion  I 
interest  which  is  manifested  in  the  concern.  I  wish,  sir, 
5S  upon  every  shareholder  the  necessity  of  getting  parties 
x)uuts  at  the  bank.  (Hear,  hear.)  By  that  means  we 
mately  get  not  only  a  10  per  cent,  dividend,  but  the 
s  which  other  people  enjoy.  I  beg  to  propose  n  vote  of 
rthy  chairman  not  only  for  his  able  conduct  to-day,  but 
laa  bestowed  upon  the  interests  of  the  bank  during  the 
ers.) 

:own — It  may  be  a  liberty  for  me  to  take,  but  perchance 
h  you  on  future  occasions,  or  at  all  events  for  some  time, 
I,  therefore,  to  avail  myself  of  the  opportunity  to  second 
With  no  feeling  but  that  which  the  hon.  proprietor  has 
ace  to  did  I  make  the  remarks  which  I  have  oifered  to- 
ho  mo<le  in  which  our  affairs  have  been  conducted.  I 
immense  interest  in  your  success,  and  it  give.s  me  great 
you  should  not  only  continue  to  devote  your  energies  to 

of  our  affairs,  but  that  you  have  been  hitlierto  so 
1st  you  will  remain  where  you  are,  with  equal  and  con- 
(Cheers.) 

e  manager,  having  put  the  resolution  to  the  meeting,  it 
imously  and  with  loud  applause. 

— Gentlemen,  I  feel  very  much  obliged  to  you  for  the 
lave  paid  me  in  pfissing  this  vote  of  thanks.  I  only  feel 
my  duty  in  ccmnection  with  this  bank,  and  so  long  as  I 
the  position  I  do,  I  shall  be  unremitting  in  my  attention 
r  the  future. 

proposed  a  vote  of  thanks  to  the  directors,  remarking  that 
,vere  not  influenced  by  the  small  pecuniary  remuneration 
"their  duties  were  of  a  very  onerous  description, 
onded  the  motion. 

in  putting  the  motion,  said,  I  am  glad  that  this  proposi- 
dc,  because  I  think  it  is  due  to  my  colleagues  tliat  they 
tHanks  of  the  shareholders  more  than  myself.     I  have 
putting  the  resolution, 
having  been  carried  unfinimously, 

1,  on  behalf  of  the  directors,  bogged  to  express  their 
inner  in  wliich  tlieir  exertions  had  been  acknowledged. 
J  that  he  believed  they  had  all  assisted  to  the  utmost  of 
rry  out  the.  business  of  the  bank  efUciently,  and  he  trusted 
Inch  had  that  day  been  submit  ted  and  agreed  to  was 

;]7 


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470 


Britiih  Guiana  Bank. 


proof  that  tliey  ha<l  not  worked  in  vain.     (Cheers.)     On  boh&lf 
and  hiB  co- directors,  he  begged  to  thank  the  meetiiig.     (Heajr^  h 

Mr.  J.  B.  Hughes — ^At  the  risk  of  being  thnught  tedin«s,  I  wo 
that  we  are  bound  to  pass  a  vote  of  thanks  to  our  worthy  mana 
very  able  inamier  in  which  he  has  conducted  the  atfAirs  ot  the 
(Loud  applaiifle.)  I  belieye  it  is  to  him,  ami  to  his  father  wl 
liim,  that  we  owo  the  existence  of  this  bauk;  and  I  think  i 
wrong  in  a  meeting  of  shareholders  if  we  were  to  pass  over  su 
ant  services  as  tliey  have  rendered.  I  tht^efore  beg  leave  if 
cordial  vote  of  thanks  to  our  manager  for  the  way  in  which  1 
ducted  OUT  affaira. 

Mr.  Hill  seccmded  the  motion,  and  it  waR  supported  by  Mr. 

The  Chairman — "No  one  can  have  a  higher  opinion  of  the  mr 
I  have.  I  know  how  he  has  worked  early  ;ind  late  for  the  inte 
bank.  I  know  sotne  bank  maoagers  who  would  not  have  dev 
the  time  that  he  has  done  to  the  interests  of  tide  bank.  I  knoin 
timea  he  has  been  at  the  bank  until  very  near  midnight  dur 
six  months.  (Hear,  hear.)  I  may  also  say  that  lie  is  assisted 
very  efticieut  officers,  some  of  whom,  I  see,  have  wound  thei 
the  room  to  have  a  look  at  the  shareholders.  Those  wh<*  apj 
vote  of  thauka  to  the  manager,  please  signify  it. 

The  vote  was  then  carried  by  acclamation. 

Mr.  Ellimm,  in  reply,  then  said — I  am  much  obliged  to  you,  aii 
meeting  for  th«  expression  of  kindness  and  gocKlwill  to  whic] 
given  utterance  with  reference  to  myself.  I  take  thi<^  eipressiot 
idso,  the  staft'  with  which  I  have  been  associated  in  carrying  oi 
of  the  bank  nj)  to  this  moment.  I  can  assure  the  shareholders 
there  attendance  Jiere  to-day  in  such  numbers  as  being  the  gi 
plimeiit  that  can  be  paid  to  myself  and  to  tlie  directors,  and  all 
mediately  connected  with  the  administration  of  the  affairs  oj 
I  hope  that  at  our  future  meetings  we  shall  have  a  sinular  interest 
and  that  the  advice  of  Mr.  Hughes  to  the  sharehalders,  to  hrii 
buRiness  to  the  bank,  will  be  followed ;  and  that  wo  shall  havo  c 
things  to  announce  to  you  as  each  succeeding  report  i»  issued. 

Thf  meeting  then  separated. 


BRITISH  GUIANA  BANK. 

The  fifty>sixth  half-yearly  general  meeting  of  the  propriet 
corporation  was  held  at  Georgetown,  on  the  26th  January  ;  Mr 
Garuett  in  the  chair. 

The  Chairman  read  the  advertisement  convening  thtyueetin| 
giving  notice  of  the  retirement  of  five  d3re<iors,  whose  places 
nlled  by  an  election  at  this  meeting : — ^**  Pursuant  to  the  provifl 
charter  of  in  cor  ]xj  ration,  five  directors  of  the  bank,  vix.,  M( 
Hackey,  J.  H.  King,H.  E.Dav.son,  Alexander  Gamett^  and  Wtu. 
go  out  of  office  by  rotation  at  the  ensuing  general  meeting  of 
tm  the  2Cth  insttint.  These  gentlemen  are  re- eligible.  A  \is 
holders  quaHfied  to  be  elected  directors  can  be  seen  at  the  bi 
the  branch  in  N*  w  Amsterdam." 

The  folluwing  report  was  then  read  :— 


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itish  Guiana  J5anl\  47J 

'■  affairt  of  the  Bank  on  the  3lst  December. 


tra 


3f  lodgments,  including  interest 


200,000    0 

626,145  79 

298,800     0 

7,681  6S 

91,748  GO 

62,150,956  07 


?n  bills  discounted,  bonds,  other 
nd  in  the  hands  of  agents 
n  Turkish  4  per  cents,  guaran- 
;,  196,000;  in  Bank  of  England 

,  &c 


$1,922,800  18 


200,000     0 
28,155  89 

$2,150,956  07 


le  foregoing  statement  oonaiHts  of — the  Biir- 
profita  for  the  half-year  ending  the  Slst  De- 
The  amount  of  profits  enables  the  directors  to 

a  dividend  at  the  usual  rate  of  eight  per  cent, 
year  :  this  will  require  a  sum  of  g37,OGO  80, 
ided  to  the  surplus  fund ;  and  they  further 
ietors,  from  the  accumulated  surplus  profits, 
their  paid-up  capital,  making,  with  the  divi- 
d  return  for  the  year  of  ten.  per  cent.  The 
;he  officers  of  the  bank  a  bonus  of  ten  i>er  cent, 
which  they  have  no  doubt  will  meet  with  the 
iholdors.     After  providing  for  these  payments, 

profits  over  and  above  tlie  reserve  fund  of 
328  60,  being  5^6,394  57  more  than  at  the  cor- 

chairman,  seconded  by  Mr.  J.  H.  King,  and 
>f  the  directors  be  received  and  adopted." 
vies,  seconded  by  Mr.  David  V^yfhuis,  and  re- 
ded by  the  court  of  direct<3rs,  a  dividend  bo 
r  the  half-year  ending  31st  December,  1804, 
two  per  cent,  on  their  capital  stock  be  paid  to 
^cumulated  surplus  profits." 
iham,  seconded  by  Mr.  H.  T.  Garnett,  and  re- 
le  report  bo  laid  before  His  Excellency  the 
ecdinga  of  the  meeting  be  printed  for  circula- 

,  seconded  by  Mr.  Vi.  B.  Pollard,  jun.,  and 

of  the  meeting  bo  tendered  to  the  chairman 

ces." 

econded  by  Mr.  B.  V.  Abraham,  and  resolved, 

>eting  be  tendered  to  the  President  and  Coro- 

r  the  use  of  the  rooms/* 


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■*! 


472  Bihton  Dktiict  Banking  Compamj, 

The  meeting  then  proceeded  to  the  election  of  five  dir^jctc 
Abraham  and  Knowles  being  requested  to  act  as  Bcnitiueera,  a 
rejiort  tlie  following  gentlemen  were  declared  elected,  viz 
AlexaniU  r  Gamett,  J.  H.  King,  H.  K.  Davson,  T.  H,  Vi 
W.  MacAulay. 

Tlir  thanks  of  the  meeting  were  voted  to  the  chairjnan,  and ' 
vf'A'^  then  cloaeil. 


BILSTON  DISTRICT  BANKING  COMPANY, 

The  twenty-eighth  annual  meeting  of  this  company  w  aa  held 
haiiiptun,  on  the  7th  February,  Mr.  W.  H.  Sparrow  in  the  ehai 
fijllowiu^  report  was  read  and  adopted : — 

''Yonr  directors  have  audited  the  accounts  of  the  bank 
Dcceinl>er  last,  and  they  have  pleasure  in  submitting  the  an 
nient : — 

UABn^mBs. 

Paid-up  capital  at  last  report,  £30,000;  guarantee  ftind  capi- 
talised, £30,000 i 

GimTjUi tee  fund    ...     ...     ... 

Depoii^itB,  credit  accounts,  notes  and  bills,  rebate  interest, 
lncf>mQ  tax,  &c ...     ...         ! 

Fropoaed  dividend  and  bonus .,. 


Government  securities,  debentures,  and  guaranteed  stock 

Bank  premises  and  furniture ... 

Billti  di«i{jounted,  loans  to  customers,  and  other  securities 
Canh  .„ ,     


PROFIT. 

Dhrlted  and  bonus  paid  1st  September,  1864 ... 

BrapQtdd  diridend  and  bonus         ... 

Sttrplun,  to  carry  to  guarantee  fand      , 

Mel  pnifit  after  providing  for  all  bad  and  doubtful  dcb^»,  rebate 
mte rest  upon  undue  bills,  and  income-tax ...  ^ 

GUA.KANTEB  FDND. 

Amount  of  this  fund  at  last  report,  £30,590.  18«.  lOf/. ;    Icss^ 

capitalised,  £30,000 ...     ... 

Interest  at  3  per  cent 

Burphm  profit      

PrcHent  ganrantco  fnnd 

"  W.  11.  Sparrow  and  Samuel  Loveritlge,  Esqrs.,  retire  frt^ii 
and  are  qualified  to  be  re-elected." 


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473 


JIRMLNGHAM  BANKING  COMPANY. 

1   annual  general   nieotiDg   was  held    at    the   Assembly 

I  Buildings,  Birmingham,  on  the  1 5th  February ;  Frederick 
»ne  of  the  directors,  in  the  chair. 

report  was  presented  : — 

B  of  the  Birmingham  Banking  Company  have  the  pleasure 
s  their  thirty-fifth  annual  report,  which  they  believe  the 
ot  but  consider  to  be  a  satisfactory  one,  as  they  are  again 
that  the  business  returns  of  the  bank  have  largely  in- 
profits  realised  during  the  past  twelve  months  very  far 
ny  previous  year.  The  net  profits  for  the  year  ending  the 
ist,  after  writing  off  bad  debts,  allowing  for  the  rebate  of 
Qot  yet  matured,  and  paying  all  current  expenses,  amounted 
d.,  which,  with  the  balance  of  £1,702. 16a.  6d.  brought  for- 
revioiLS  year,  makes  an  available  total  of  £68,857.  ^a,  lOd, 
£20,000  were  taken  for  the  dividend  and  bonus  paid  in 
and  £12,000  which  your  directors  appropriated,  on  the 

II  liquidation  of  the  Dudley  bad-debt  account,  and  you  are 
led  to  declare  a  dividend  of  10s.  and  a  bonus  of  10a.  per 
on  the  1st  day  of  March,  which  will  absorb  £26,196, 
n'ard  the  balance  of  £10,661.  2a.  lOd.  to  the  current  year, 
i  that  a  largely  increased  amount  will  be  required  for  the 
Qus  during  the  current  year,  and  having  regard  to  the  por- 
i  of  investors,  the  directors  feel  sure  that  the  proprietors 
*  wiser  course  to  carry  forward  a  large  amount  than  to 
ket  value  of  the  shares  by  paying  an  additional  bonus, 
rill  then  be  as  follows  : — 


idcd  profits  brought  forward  ... 


>  Dudley  branch  on  GOth  June,  £12,000; 
I  bonus  paid  Ist  September,  £20,000  ;  ditto 
le  l8t  March,  1865,  £26,196     


£1,702  15  5 

67,154     7  ft 

63,857     2  10 

58,196    0  0 

£10,661     2  10 


lice  to  the  issue  of  new  shares,  your  directors  have  to  re- 
lolo  of  the  5,000  shares  reservecl  for  the  proprietors  were 
em,  and  that  of  the  remaining  5,000  shares  1,894  have 
>ualy  placed,  leaving  3,106  to  be  disposed  of  as  occasion 
authorisetl  by  the  special  meeting  in  June  last.  It  is  with 
on  that  the  directors  announce  the  appointment  of  Mr. 
aw  as  Bub-manager  at  Birmingham,  wliich  they  feel  sure 
advantage  to  the  working  of  the  concern  ;  and  they  have 
rou  that  the  branch  at  Wednesbury  was  opened  on  the  1st 
,he  management  of  Mr.  J.  B.  Hargreave,  late  cashier  at  the 
they  have  reason  to  anticipate  profitable  results  therefrom, 
it  regret  that  the  board  annoimce  the  retirement,  through 
and  failing  health,  of  their  esteemed  colleague  Joseph 
who  was  connected  with  the  company  from  its  commence- 


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I 


474  Birmingham  Banking  Company. 

ment,  and  for  the  long  period  that  he  retained  Lis  seat  at  the  "board 
of  itft  moet  zealous  and  useful  mem  burs.  The  vacancy  thus  causet 
beeij  filled  up  by  the  election  of  Ralph  Hoatou  j  Esq.  The  proprietori 
learn  with  satisfaction  that  Messi-s.  F.  I.  Welch,  S.  W.  Lucas, 
J,  B.  Payn  have  been  appointed  a  sub- committee,  to  attend  at  the  t 
and  jj^Te  the  benefit  of  their  valuable  ail  vice  and  asBistance  in  the  adiii 
trati«iU  of  its  affairs.  The  niunber  nf  sliEireholders  on  the  regist 
64a ;  the  paid-up  capital  of  the  bank,  £*208,OlU ;  and  the  reserve  i 
£187,880.'^ 

In  moving  the  adoption  of  the  report ,  tlie  Chairman  said  he  vi 
witli  great  pleasure  the  increased  buaiue)^^  and  profits  of  the  bank ;  ai 
considered  it  owing  in  a  great  measure  to  thtir  judicious  creation  of 
slian^fl  in  July  last.  The  bank  had  not  increa^ied  their  capital  for  a  qu 
nf  a  century,  and  having  done  so  on  the  suggestion  oi  their  nianogei 
result  had  been  most  beneficial ;  it  ha^l  brought  them  a  large  atnou 
business  and  new  customers,  and  would  ci^jntinuo  Ui  do  f^till  more,  as,  th 
the  i?*sue  to  the  proprietary  were  all  taken  up  by  them,  there  was  a 
siilurahle  number  of  shares  still  retained  tr>  be  U'^ctl  as  they  con«ic 
most  conducive  to  the  interest  of  the  baiik.  Tlic  higk  rate  of  roonc 
uour»e,  had  had  much  to  do  with  their  larj^a^  proHt,  hut  the  husincts.* 
BO  materially  increased  over  all  other  years  by  the  jjereonal  exertio 
tlie  ^Urectors  and  manager  to  bring  good  accj;>unti4  to  their  bank;  ai 
said,  if  the  shareholders,  who  were  a  large  l>ody,  and  the  directs 
RniidL  one,  would  aid  them  in  the  same  way,  then  their  interests  wou 
largely  advanced,  and  a  highly  profitable  future  be  in  store  for  thtj  b^ 
and  he  called  on  them  to  aid  their  own  interests  in  these  days  of  oo: 
tititm. 

The  resolution  was  seconded  by  H.  Van  Waii,  Esq. 

Mr.  Broughall,  of  Wolverhampton,  congratulated  the  directors  and 
prietors  on  the  satisfactory  result  of  t\m  year's  operations,  and  flfiid 
mncli  praise  could  not  be  given  to  the  directors  and  managers.  He 
hope4  that,  with  so  large  a  guarantee  fund,  a  portion  would  bave 
capitalized,  but  he  left  the  matter  with  great  confidence  in  the  ban 
the  Ixiard. 

Tiie  second  resolution,  relating  to  the  dividend,  was  moved  by 
chairman,  and  seconded  by  Mr.  Luca?. 

Mr.  John  Aston,  in  moving  a  vote  of  tliaukR  t^  the  ilirectors,  spo] 
their  good  services  rendered  in  a  time  of  diificnlty,  and  added,  as  a  rid 
his  resolution,  "  That  the  sum  of  £2,00 J  ho  placoil  at  the  thsiixwal  of 
directors  for  the  future." 

This  was  carried  unanimously,  after  having  been  seoondod  by  J 
WfKHlhill,  Esq. 

Mr.  James  Watson,  in  moving  "Thrvt  tho  best  thnnks  of  this  mci 
ho  given  to  F.  I.  Welch,  J.  B.  Payn,  niii  S,  W.  Lnciw,  Estjrs.,  for 
valuable  services,"  spoke  highly  of  thu  «ervJce8  rendertjii  by  those  gc 
men,  and  in  reverting  to  the  fact  of  Mr.  Gibhins*s  retirement  fron 
lioard,  stated  that  Mr.  Gibbins's  gooil  ^dahes  were  with  the  bank,  ii 
he  coiiiidered  a  most  prosperous  concern. 

Mr.  Payn,  in  responding  as  the  juninr  member  of  the  sub-coram; 
spoke  of  the  necessity  for  such  a  committee  in  all  large  ooncems,  and  i 
cially  in  one  where  the  manager,  although  of  great  ability  and  ample  k 
letigo,  was  a  young  man.  He  detailed  the  rtault  *^t  a  conversation  he 
had  with  Mr.  GibbinB,  in  which  that  gentleman  snid  that  bo  intend' 
dispuflo  <if  his  interest  in  the  bank,  as  his  children  were  all  ijifaati. 


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Birminfjham  Banking  Compan)/.  475 

aaid  that  the  Birminghara  Banking  Company  was  one  of 
i  in  the  kingdom. 

was  declared  as  recommended.  Tlie  directors  were  re- 
dial  vote  of  thanks  was  passed  to  Mr.  W.  H.  Beaumont, 
ose  high  efliciency  and  devotion  to  tlie  interests  of  the 
irmly  eulogised  by  Mr.  Welch  and  other  members  of  the 

b,  in  acknowledging  the  compliment,  said,  I  am  sure, 
st  have  been  with  very  great  satisfaction  that  you  have 

reix)rt  that  the  bad-debt  account  at  Dudley,  caused 
Mr.  Blackwell,  is  done  away  with.  You  will  remember, 
)ur  chairman,  at  the  last  annual  meeting,  told  you  that 
I  not  promise  you  a  return  to  the  old  dividend  and  bonus 
3d  that  in  1866  it  would  be  reverted  to  ;  and  yet  within 
it  time  you  were  informed  that  the  old  dividend  of  10s. 

a  share  would  be  paid  in  September  last.  This  satiafac- 
igs  was  caused  by  some  securities  we  had  having  been 
r  than  was  anticipated,  and  to  the  profits  made  during  the 
>f  the  year,  which  enabled  tlie  board  to  transfer  £12,000 
me,  in  full  liquidation  of  the  bad-debt  account  at  Dudley, 
le  that  if  the  spurt  in  the  iron  trade  had  continued,  and 
[et  remained  in  a  quiescent  state,  that  the  remaining 
Lave  been  disposed  of  without  requiring  the  appropria- 
)0.  It  Wius  in  February'",  1861,  that  the  proprietors  first 
bonus  would  have  to  be  reduced,  and  at  that  time  my 
her  frequently  said  that  it  would  take  ten  years  to  put 
int  straight.  Ls  it  not  an  evidence,  gentlemen,  of  the 
ivifying  power  of  your  great  company  that  within  four  years 
Hinged,  and  does  it  not  argue  well  for  the  future  of  the 
ause.)  bo  much  for  the  past ;  now  with  respect  to  the 
felt  so  certain  that  your  bank  can  hold  its  own  as  now. 
he  returns  amounts  to  upwards  of  £3,000,000  for  the  past 
rease  of  profits  you  see  in  the  report.  The  amount  of 
y  was  never  so  large  as  it  is  now,  and  the  fact  of  the  de- 
\  undergone  any  decrease,  but  an  contraire^  sliows  a  great 
3  confidence,  especially  when  we  take  into  account  the 
oney  has  ruled  at  during  the  year,  and  the  temptations 
st  have  had  to  invast  in  speculative  undertakings  for  the 
ig  a  large  rate  of  interest.  It  is  also  a  cause  of  much 
lat  the  great  commercial  disasters  which  occurred  during 
►nths  of  tlie  year  have  hitherto  had  so  little  efiect  on  this 
ighara  in,  par  excellence,  the  town  in  England  where  per- 
ly,  in  a  series  of  years,  be  carried  on  with  less  chance  of 
lor  town.  No  great  fall  in  cotton  or  other  produce  can  pos- 
ect  the  prosperity  of  this  town  as  it  can  those  of  the  other 
>  great  was  the  public  distrust,  especially  in  London,  that 
onsiderable  financial  exx>erience  told  me  that  the  pressure 
ag  the  month  of  October  was  more  severe  than  at  any 
e  criHis  of  1867.  I  am  quite  sure  of  this,  gentlemen,  that 
idently  managed,  must  prosper,  and  I  see  no  reason  why, 
inding  town  like  this,  we  should  not  present  yon  with  a 
■y  report  each  succeeding  year.  (Ai^platise.)  Perhai)S 
:8  will  allow  me  to  state  the  satisfaction  I  personally  feel 
I  of  a  sub-manager  has  fallen  on  my  excellent  friend,  Mr* 


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476  Dt'Coii  and  CormcaU  Bn  it  king  Company. 

Shaw,  aud  which,  I  at  A  quite  sure,  will  he  of  gioat  advantage  to  the  o 
tern.  Mr-  Shaw's  lutimate  knowledge!  of  the  wholu  of  tht3  acctmatB  i 
eiialAe  him  tu  keep  a  watchful  eye  ou  auy  acctmntb  that  may  require ej 
vigilauce.  In  fact,  tht  very  day  after  his  ajipuiutmeut  I  found  himnht 
lutterrt  to  i<umtj  uf  ^mr  frienda  whose  accouut'i  rt^tjtdred  a  little  more  putt 
iuUr  t^hape.  A  jj^reat  deal  has  been  said,  geutltiueii,  with  reference  ti*  t 
iibjectioiiEihle  practicfi  of  bankers  giving  tlieir  acceptances  far  a  ctnaii 
suai,  <pr,  in  other  \v,>iib,  lending  their  n.unes  instu^id  ttf  tiicir  cash; 
the  chairnKin  iff  an  important  joint-,stock  hank  in  tliis  towu  took  s< 
ei'edit  tn  lii-^  Ij.uik  for  not  adopting  thti  .system.  1  can  also  aay  that  ^^^ 
nut  <lo  s^j,  :ind  have  not  a  liability  of  aHshilling  on  acceptance,  and  1 1 
say,  en  l>i'h;ilf  of  siU  the  other  banks  here,  that  there  is  not  one  whowc 
c'.*untea«uico  such  a  pernicious  system.  T  can  eiisdy  uuderwtand  that  m 
biuikd  must  of  neeyssity  give  their  ackeptEUices  when  drawn  u[»on  by  tl 
foreign  cttrrt^pondenta  ;  but  that  is  a  very  differ€nt  thing  fiom  the  mod 
raising  the  wind  m  much  adopted  during  the  piist  year.  (Hear.)  I  am  s 
that  if  tlie  hanks  in  this  town  conduct  themhelves  with  the  same  hoD< 
able  feeling  that  hua  characterised  tlieir  Vjusinesa  relations  for  i>o  U) 
years,  and  not  hring  banking  to  the  level  of  huckstering — (hear)— th< 
great  career  uf  |>roaperity  is  in  store  for  all  of  ns,  and  that  c«ii:h  puccot^ 
year  we  shall  nhow  to  our  respective  shareholderB  evidence  of  au  incr 
ing  and  prospective  prosperity.     (Much  applaUBe.) 

A  Tote  of  thanks  to  the  chairman  of  the  day  coududod  the  buaines 
the  meeting* 


BEVOK  AND  CORNWALL  BANKIKG  COl^IPANY. 

The  thirty-third  iuinu;d  meeting  of  this  company  VfOR  held  at  tho  B 
Plymuutlijon  the  17  th  February;  JtiJieph  Collier  Cook  worthy,  Esq.,  J 
in  the  d mi r. 

The  follomug  rci>ort  was  read ; — 

**  The  diretitora  of  the  Devon  aud  Cornwall  Banking  Company 
nuich  ple.Lsure  in  meeting  the  shareholders  on  the  return  of  thepi 
apjHiinted  for  makings  their  annual  report  of  the  result  of  tlieir  tranRacI 
for  the  paht  year.  The  company  at  present  cx^nftists  of  SI 7  ftliarelml 
holding  4,fXK>  whares.  Tho  past  year  haw  been  distlngideilieti  from  sei 
former  yearn  hy  a  larger  amount  of  ])rotit  than  usnal,  sirisiug  chieiy 
tho  high  vidue  of  mouey.  At  the  end  cd  tho  tirHt  half-yeai-  the  dire 
were  einibl«d  to  add  to  the  capital  i>f  the  wnniumy  the  sum  of  £4 
being  at  tho  rate  of  £1  per  share,  upon  which  sum  it  will  be  proposed 
a  dividend  at  the  rate  of  12^  per  cent,  per  annum  shall  bo  i>aid  fo 
past  half-year,  in  accordance  with  a  resolution  <  ^f  the  shareholder? 
meeting  hehl  on  the  12bh  day  of  February,  1858.  The  accumulating 
having  reached  the  sum  of  £8,955.  lU,  Ifl,  during  the  past  half-year, 
tho  a[>propriation  of  profits  at  the  close  of  the  year,  the  sum  of  .i^* 
will  be  further  ad<led,  making  an  a«iditir>nal  capital  of  £12,000  throngl 
yciir,  and  which  an  in,  at  the  rate  of  £3  jxt  share,  will  hereafter  partic 
in  the  u.^ual  annual  dividend.  The  paid-up  capitid  of  the  companv 
therefc>re  stand  thtiH  at  the  close  of  the  year  : — 4,(XI0  shares  un  whicli 
per  share  has  been  paid,  say  £112,000  ;  guarantee  fund,  £60,000;  b»J 
of  accumulating  fund  for  further  appropriation,  £055.  ILv.  hi 
directors  have  visited  and  carefully  examined  the  bank  in  all  it«  hrm 


Digitized  by  VjOOQ IC 


'oniivall  Banking  Cmnpiiny. 


^11 


itiou  botli  safe  and  prosperous.  The  year 
year  of  prulit,  tho  directors  liavo  thought  it 
;rks  should  participate  in  some  degree  in  the 
they  have  appropriated  a  sum  of  10  per  cent. 
•  gratuities.  Tlie  profits  of  the  bank  during 
unce  for  bad  debts  and  the  other  approi)riation8 
e  directors  to  recommend  that  a  dividend  of 
I  for  tho  last  half-year  on  tho  capital  of  the 
dividend  of  £1.  lis.  3(/.  j)aid  in  the  former 
th  the  wish  of  the  shareholders  expressed  at 
ors  have  devised  a  scheme  for  retiring  allow- 
3r3  and  clerks  of  the  bank,  and  they  submit 
id  regidations  for  its  government,  to  the  c^^n- 
The  shareholders  will  hear  with  regret  that 
oeral  manager,  after  thirty-three  years  of 
e,  desires  to  withdraw  from  tho  cares  and 
lirectors  proix)se  to  offer  him,  when  that  time 
tat  at  their  board  (under  article  12  of  deed  of 
Lng  i)ension  as,  if  not  equal  to  his  deserts,  will 
,  and  (they  are  happy  to  learn)  will  content 


)cr,lS03,  £100,000;  added  from 
,   1801,  £4,000,  ditto,  December 

itercst,  nott'S,  &c. 

,  1803,  £2,*2;'.5.  A6.  Id.  ;  'added  to 
i.,  JS12,9;jo.  11  J.  \d.  ;  transferred 
864,  £4,000  ;  Ditto  ditto  Decem- 


£112,0(X)    0     0 

1,276,386     5  11 

60,000     0     0 


955  11     1 
£1,449,341   17     0 


cnt  accounts,  hills  of  exchange. 

Id,  at  Plymouth  and  the  branches  £1,440,341  17  0 


£1,449,341  17     0 


DFIT  AND  LOSS   AC(  CUNT. 
PAIU. 

;a  of  establishment,  appropriated 
,  1861,  £0,250  ;  reserved  for  divi- 


liECBlVKD. 


count 


£70,590  18    0 


12,750 

10,720 

0 
0 

0 
6 

£94,061 

4 

6 

£94,061 

4 

6 

£94,061 

4 

6 

Digiti 


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478  CotUimntal  Bank  CorporaHtm, 

The  following  resolution  was  passed  : — **  Resolved,  tliat  a  diyiden 
£1. 12s.  6rf.  per  share  be  paid  to  the  proprietors,  in  additi*  m  to  the  di  vi 
of  £1.  lis.  3d.  paid  on  the  Ist  of  September  last,  being  at  the  m 
13  J  per  cent,  per  annum  on  the  paid-up  capital,  as  the  proportion  of  ] 
to  be  divided,  agreeably  to  the  recommendation  of  me  board  of  c 
tors." 


CONTINENTAL  BANK  CORPORATION. 

Thb  third  half-yearly  ordinary  meeting  of  shareholdeis  was  held  oi 
27th  February,  at  the  London  Tavern ;  Mr.  W.  W.  CiLigill,  ^I.P.,  ii 
chair. 
The  following  directors'  report  was  taken  as  read : — 
'*  The  report  and  balanoe-^eet,  which  the  directors  iinw  Hubmit  t 
proprietors,  for  the  half-year  ending  Slst  December  Ltst,  are  not  tu 
they  would  have  wished  to  present  on  this  oocasiou.  I'ulike  the  r 
for  the  first  six  months  of  1864,  which  showed  a  most  satisfactory  r 
the  present  accounts  exhibit  a  considerable  loss,  by  thv  fjuhue  of  o 
tuents  during  the  late  commercial  crisis.  Under  thcsi-  circunistiuiec 
directors  deem  it  their  duty  to  make  the  shareholder  aLN^iiiiiuted  wit 
precise  condition  of  affairs,  to  exhibit  the  whole  loss  incurvtxl,  and  t€ 
their  suggestions  as  to  the  best  mode  of  dealing  with  it.  After  a 
careful  examination  of  the  accounts  at  the  head  ofiicti  aud  bnuiohe 
total  loss  is  found  to  amount  to  £19,500 ;  and,  after  ileiitieting  ther< 
the  net  balance  of  profits,  £5,090.  Is.  6<i.,  and  the  reserveil  fund,  £ 
the  remaining  deficiency  is  £13,409.  I85.  6d.  This  sum  the  direolo 
conunend  should  be  written  off  capital  account.  Wliile  regrettuis 
result,  the  directors  look  forward  with  every  hope  to  the  future.  A 
cellent  business  has  been  obtained,  the  rate  of  curreui  profits  mu 
last  year's  accounts  were  closed  has  very  much  increase^l,  and  a  pn 
has  been  opened  up  of  extended  connections  of  a  most  profitable  o 
The  amalgamation  to  which  reference  was  made  in  the  liyit  repot 
having  been  carried  out,  it  became  necessary,  for  the  rcquiremout^  < 
hank,  to  add  to  the  paid-up  capital  by  calls  on  the  shares,  viz. : — 
the  original  shares  on  10th  September,  and  £5  on  lutlt  December 
on  the  new  shares,  £6  on  1st  October,  and  £5  on  2nd  January, 
These  calls  have  been  fairly  met,  and  there  still  reinaiiis  £10  to  c 
the  new  shares,  to  make  them  equal  to  the  first  issue.  The  directon 
enabled  to  make  a  judicious  purchase  of  a  freehold  sit<*  fnr  a  pera 
office,  in  Clement's  Lane,  Lombard  Street,  and  they  have  .^ince  coati 
for  building  suitable  premises  at  a  very  moderate  ci^st,  which  the] 
will  be  ready  for  occupation  in  the  course  of  the  pre^eut  year.  T 
rectors  retire  from  office  on  this  occasion,  namely,  Mesan^.  William  > 
Maxwell  and  Robert  Alfred  Routh,  who,  being  eligible,  offer  tlieui 
for  re-election ;  and  Messrs.  Alexander  Robertson  and  £dw»rd  Cb< 
the  auditors,  who  retire  in  accordance  with  the  articles  of  ;i^M4>ciatii>n 
also  intimated  their  readiness  to  offer  themselves  for  ro-ap]x>intment 


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Continental  Bank  Corporation. 


479 


Balance-sheet,  December  ^Xst,  1864. 

LIABILITIES. 

First  issue,  £125,000;  2  instalments,  second 
0,  making  £175,000  ;  less  arrears — first  issue, 
md,  £2,585— £8,950,  making  £1GG,050;  3rd 
I  second  issue— payments  in  advance,  £1,000 

r  accounts  

domiciled  

and  loss,  after  deducting  all  charges,  rebate 
c.  


nd  fittings  

nses  and  cost  of  establishing  London  office, 

\  at  Marseilles  and  Paris         

ite  in  Clement's  Lane... 


3'ROFIT  AND   LOaS. 

)rward ,        


of  profit  and  lobS 


£167.050 
147,989 
282,821 

5,000 
1,000 


£603,950 

6 

5 

£27,5S8 

88,835 

404,551 

1,265 

6,477 
15,222 

14 

1 

0 

11 

4 
12 

4 

1 

10 

10 

6 
10 

£603,950 

5 

5 

£5,000 

1 

6 

£5,090 

1 

6 

£5,090 

1 

6 

£5,090 

1 

6 

1  remarked  that  wlicu  they  met  iu  July  last  the  aspect  of 
xlingly  encouraging  ;  whereas  now  they  had  to  present  the 
'  the  past  six  months  which  were  disclosed  in  the  report, 
nothing  to  say  in  extenuation,  except  that  many  other 
18  young  as  themselves  had  been  equally  imfortunatc,  and 

establishments  better  able  to  bear  them  had  experienced 
g  U)  their  greater  means  and  stronger  position,  without 
ag  their  dividends.  The  position  in  which  the  Continental 
placed  during  the  past  six  mouths  was  peculiar.  Their  buai- 
d  to  foreign  transactions,  carried  on  sometimes  on  their  own 
netimes  on  joint  account  with  correspondents  in  different 

The  amount  of  money  employed  under  the  head  of  "  current 
ntg,"  was  £147,089,  and  of  "  bills  payable  and  domiciled,'' 
he  other  side  were  bills  receivable,  £88,835,  and  current  ac- 
L.  Now,  a  very  large  amonnt  of  these  items  on  both  sides  were 
tiat  was,  entries  made  to  show  transactions  which  were  not 
isactions.     (A  uhareholder  asked  for  explanation.)     One 


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I     •  ^ 


480 


Continental  Bank  Corporation, 


illustration  would  auBwer  for  the  whole.  Take  the  case  of  a.  bill 
When  the  correspondent  abroad  wrote  that  he  li^iil  diirnicilod  ; 
able  at  the  Continental  Bank,  it  was  placed  to  the  debit  of  tlie 
was  not  an  absolute  liability,  but  a  possible  liability,  and  the  c 
to  put  it  down  to  the  party  on  the  one  side,  anil  to  "  bills  domi 
the  other.  Now,  the  difficulty  which  they,  in  commnii  with 
lustitutions,  experienced  in  carrying  on  buHimstj  with  foreign 
this,  that  when  anything  occurreil  which  shorteiiLii  credit  in  I 
Khook  individual  credit,  oorresiX)ndents  abroad  were  very  chary 
ing  their  operations.  Correspondence  and  drawingH  were  lii 
transactions  were  carried  on  with  banks  such  iws  theirs  on  the 
the  market  would  allow.  The  consequence  was  that,  in  periods 
tary  pressure,  very  few  bills  from  correspondents  were-  sent  to  t! 
and  such  bills  as  were  sent  had  to  be  done  at  a  rate  which  rathe 
the  position  of  the  bank  with  the  correspomlents.  The  exposu 
case  of  the  Messrs.  Gladstone,  a  member  of  wIidsc  firm  was  for 
a  member  of  the  Continental  Bank  board,  gave  ria«  tu  an  iinpr< 
the  bank  was  so  mixed  up  with  that  firm  that  serioiLM  losses  i 
from  the  connection  ;  and  this  operated  doubly  tti  tlieir  prejudice] 
ing  their  credit  on  the  one  hand,  and  preventing  business  comii 
oa  the  other.  During  the  months  of  Septeniberj  U€tol>er,  Novf 
part  of  December,  it  was  only  by  the  personal  uxertiouj;  of  th( 
that  they  were  enabled  to  stem  the  torrent.  Last  year  an  am? 
with  another  bank  was  thought  of,  but  the  negotiations  went 
board  was  not  unanimous  in  favour  of  it,  and  tliere  was  no 
regret  that  it  had  not  been  carried  out.  But  that  was  a  reason 
had  been  obliged  to  make  a  call  at  a  time  which  must  hare  inooi 
many  of  the  shareholders,  and  probably  had  not  at  the  moment 
improve  the  position  of  the  bank.  He  was  happy,  however^  t 
the  shareholders  had  liberally  responded  to  tliat  e:dlj  ilius  cvin 
dence  in  the  oonoem  and  in  the  direction,  and  that  uotwithHt: 
the  evil  reports  that  were  in  circulation,  their  bankers — the  Li 
County, and  Messrs.  Barclays — stood  by  them,  and  were  their  be 
(Hear,  hear.)  He  was  happy  to  say  that  the  operations  of  the  1 
Kovember  and  December  had  been  upon  a  largely  extendeHl  sealt 
foreign  correspondences  had  been  re-openetl,  and  the  profitabl 
they  were  now  doing  justified  the  directors  in  belteviug  that  a  1 
future  was  before  them.  In  reply  to  letters  revived  f rum  &b« 
holders  offering  various  suggestions,  he  begged  to  my  that  if  5ui 
posals  for  amalgamating  with  other  banks  wis  re  made,  they  won 
considered  and  submitted  to  the  shareholders ;  but  it  was  no 
to  go  to  other  institutions  and  solicit  them  to  take  them  o\ 
in  answer  to  a  letter  which  complained  of  tUe  pur€h;ise  of  a  t$ 
offices  of  the  bank,  ho  added  that  the  site  ai^ipiiri^^d  in  dome 
would  afford  them  an  opportunity  of  obtaining  Hnitablo  offices  at 
rate  than  they  could  rent  them,  or  if  they  did  not  choose  to 
the  ground  might  be  resold  at  a  handsome  prodt.  After  aou 
remarks,  he  moved  the  adoption  of  the  report, 

A  Shareholder — Do  you  expect  that  there  wiU  be  any  rotiiri 
e;<itates  of  the  defaulting  debtors,  reducing  the  atnonnt  of  the  Urn 

The  Chairman — Since  we  made  up  the  accounts  we  have  receiv 
tnunication  from  one  of  the  branches,  stating  tliat  the  amount  ^ 
dt»wn  in  their  case  was  excessive,  and  that  some  arrang^nenttt 
made  which  would  reduce  it  from  25  to  30  per  cent. 


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Ottoman  Financial  Association,  .481 

luestions  in  reference  to  tlie  loss  sustained  tli rough  Mr. 
other  subjects, 

Q  replied  that  they  had  no  direct  transactions,  he  was  happy 
r.  Gladstone,  the  bills  they  held  with  that  person's  name 
ig  bills  remitted  from  abroad,  having  upon  them,  as  they 
1,  excellent  names  in  atldition.  One  of  the  parties  had 
her  who  had  not,  seemed  inclined  to  litigate  his  liability  on 
Lch  amonnted  to  half  of  the  total  loss  the  baiik  had  sus- 
irse,  against  this  they  t<M)k  jwssession  of  the  shares  which 
ladstoue's  name.  The  calls  in  arrear  were  not  large.  The 
was  on  the  last  call  upon  the  old  shares,  which  was  only 

10th  of  December,  and  a  considerable  fportion  of  the 
a  pai«l  since  the  31st  of  December,  the  date  to  which  the 
nade  up.  The  arrear  on  the  second  issue  was  only  £2,285. 
ihe  retirement  of  Mr.  VVtade  (aljout  which  a  question  had 
m  whom  a  more  valuable  colleague  he  had  never  sat  beside ; 
1  the  only  reason  why  he  resigned  was  that  lie  found  the 
1  for  him.  Mr.  Maxwell,  so  far  .as  he  knew,  intended  to 
mtinuo  to  give  them  his  voiy  efficient  assistance.  Mr. 
►d  also  retired  from  the  direction,  had  rarely  attended  the 
3  b<;)ard,  and  had  become  disjpialilied. 

>n  adopting  the  report  was  seconded  by  Mr.  Maxwell,  and 
oualy. 

\  retiring  by  rotation  were  re-elected. 

,  in  returning  thanks,  intimated  that  as  many  shareholders 
.  Provincial  had  joined  this  concern  in  consequence  of  his 
s  names  being  on  the  direction,  ho  should  always  consider 
,o  his  l)est  to  promote  the  interests  of  the  Continental.  lie 
in  it  the  elements  of  success,  and  that  a  very  different  re- 
presented at  the  meeting  in  July  next, 
were  also  re-elected,  and  20  guineas  a  year  awarded  to  them 
es. 

ho  seconded  the  motion,  explained  that  ho  had  retired  from 
ith  regi*et,  but  he  ha<l  done  so  only  because  having  much 
to  attend  to  he  found  his  duties  as  a  director  of  the  Con- 
were  telling  seriously  upon  his  health. 

was  next  passed,  authorising  the  directors  to  reduce  the 
of  the  shares,  the  foreign  c<jrrespondents  urging  that  it  was 
oad  that  £100  a  share  was  too  high  an  amount, 
was  then  made  special,  and  a  resolution  was  proposed  and 
ising  the  board  to  extend  the  capital  from  £1,000,000  to 
order  to  enable  them,  if  tlie  offer  should  be  made,  to  effect 
on  with  some  other  banking  company.  It  was  stated  that 
the  kind  was  at  present  under  consideration,  and  that  the 
lid  certainly  not  be  issued  below  par. 
banks  to  the  chairman  and  directors  concluded  the  pro- 


MAN  FINANCIAL  ASSOCIATION,  LIMITED. 

y  general  meeting  of  the  members  of  ^^^'^^^^^^'^''''^^''l:'^^ 
convened  for  thl   15th,  but  w^vs  then  adjourned  in  conae- 


Digitized  by'GoOgle 


482 


Ottoman  Financial  AsiodoHon, 


qtience  of  the  delay  in  the  receipt  of  the  accountii,  vim  held  on 
Febni^iry,  at  the  London  Tavern  ;  Mr.  G.  P.  Kitson  in  the  chaii 

The  Secretary  (Bir.  J.  W.  Lambert  Smith)  having  read  the  i 
veiling  the  meeting,  read  the  following  report : — 

'^The  directors  have  the  pleasure  to  submit  to  the  share 
balance -t^heet  and  statement  of  accounts,  duly  audited,  to  the 
c&mhcTj  1864.  The  business  of  the  association  commenced  in  1 
tho  In!  June.  The  Smyrna  branch  was  opened  in  August,  and 
ataDtitiople  branch  in  September.  The  directors  propose  that 
eiiil  ytar  shall  terminate  on  the  30th  June  in  eadi  year.  [ 
furtii»!i,  for  the  information  of  the  shareholders,  accounts  anc 
sheet  to  the  31st  December  last,  and  they  recommend  that  a 
diviilend  of  10«.  per  share  be  paid,  that  £2,000  be  put  to  re8< 
leaving  a  balance  of  £6,833.  la,  6d,  to  be  carried  forward.  The 
feol  that,  notwithstanding  the  recent  critical  state  of  commerc 
and  tl)e  opposition  of  comi>etitive  establishments,  they  have  g 
to  congratulate  the  shareholders  upon  the  success  which  has  bee 
achieTtid  by  the  association,  and  they  have  the  fullest  confidei 
futuro  jiTosperity.  Mr.  Mavrogordato,  director-general  of  the  < 
nople  ;mJ  ministration,  has  arrived  in  Eugland  to  represent  1 
holders  i>f  Constantinople  at  the  general  meeting,  to  confer 
Loiidi>ti  board  as  to  the  organization  of  new  branches  and  aj 
TurlcL'Y,  and  to  devise  measures  for  the  future  extension  of  c 
The  Auditors  appointed  by  the  board,  pursuant  to  the  articlei 
James  Cooper  (of  the  firm  of  Messrs.  Johnstone,  Cooper,  "W 
EvatiR)  and  Mr.  Edwin  H.  Galsworthy.  These  gentlemen  r< 
being  eligible,  offer  themselves  for  re-election." 


Balance-sheet,  3\st  December,' \S64. 


Dr. 

Cnpitfll  cnlled  up,  viz, : — London  £10  per  share  on  10,000 
flharcs,  £100,000 ;  less  arrears,  £650— £99,350  ;  Constan- 
rliiople,  £10  per  share  on  4,675  shares,  £46,750;  less 
nrraars,  £3,567 — £43,183  ;  Smyrna,  £5  per  share  on  2,045 
Khnrcs,  £10,225  ;  less  arrears,  £350 — £9,875         

SundT3'  creditors  on  bills  payable,  current  deposits,  and  other 
actiaunts 

Profit  and  loss  account,  as  per  annexed  statement       


£152 

40C 
23 


£581 


Cash  in  band  at  bankers'  and  on  deposit  in  London  and 
branches  

Hills  receivable       

Investments  and  loans       , 

Office  ftirtiiture  in  London  and  Turkey 

Prelijnlriary  expenses  : — In  London,  £7,414. 10«.  Id. ;  opening 
branches  in  the  Ottoman  Empire,  £2,179.  9*.  Qd 


£82 
92 


£531 


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ia»  Fiiiancial  Association, 

ROFIT  Ain>  LOSS  ACCOUKT. 

g  salaries,   Dircctorg*  feci,   Bta« 
,  rent  la  London  and  at  branches, 

sliaro         

onnt,  suliject  to  an   amount  for 
00 


|83 


£G,007  12     1 

*   8,300     0     0 

2,000     0     0 


6,833     1 

C 

£'23.200  13 

f 

£23,200  13 

7 

£23,200  13 

7 

ing  its  adoption,  said  that  he  hoped  the  result 
111  dispel  the  dissatisfaction  which  had  been 
of  the  shareholders.  The  board  i)roposed  to 
lend  upon  this  occasion,  in  consequeuoo  of  the 
lort  a  time  in  o])eration  previous  to  the  Slat 
efore  proposed  tliat  tlie  liuancial  year  should 
une  next.  It  was  obvious  that  they  could  only 
le  current  half-year  upon  tlie  business  initiatefl 
le  thought  from  the  character  of  the  business 
n  the  commencement  of  the  association  they 
statement  than  was  ever  shown  in  the  accounts 
J  had  had  to  contend,  not  only  with  the  difli- 
^  the  recent  commercial  crisis,  but  the  opposition 
i;  required  the  most  strenuous  efforts  on  the  part 
id  maintain  the  character  of  the  institution  in 
occasioned  them  no  small  anxiety.  Happily  they 
5sed  through  the  ordeal  miscathed — (cheers) — 
Rs ;  and  their  credit  had  been  established  not- 
ty  might  have  said  to  the  contrary,  and  not  only 
;d  in  placing  the  new  issue  of  shares  in  Turkey, 
lad  nothing  to  conceal,  and  lie  was  quite  ready 
I  the  information  he  could  without  prejudicing 

had  business  transactions  with  the  company, 
a  great  deal  of  dissatisfaction  should  have  been 
;  the  board,  because  he  had  been  made  aware  of 

had  been  taken  to  excite  distrust  and  anxiety 
ciders,  but  the  board  really  ccmrted  publicity 
lad  been  said  that  they  had  behaved  with  great 
the  capital  in  various  channels,  such  as  loans  Ut 
s  to  ccmtractors  and  others,  as  if  there  had  been 

the  directors  to  ruin  the  concern.  Those  were 
Id  be  substantiated,  but  as  they  were  really  very 
ue  nothing  but  senseless  clamour.  They  had 
'.  the  most  respectable  and  responsible  persons — 
ired,  and  one  which  would  prove  highly  remun- 
the  last  meeting  that  they  were  prohibited  from 

the  company  anywhere  than  in  the  Ottoman 


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484  Ottoman  Financial  As;soeiation. 

empire;  but  the  articles  of  association  really  g.ive  thi 
business  elsewhere,  and  finding  that  there  were  di^eultit 
establishing  branches  in  Turkey,  which  difficultie.^  were  not 
to  the  shareholders,  they  did  not  consider  as  Dien  of  b 
ought  to  let  the  shareholders'  money  lie  idle  if  they  coidd 
remunerative  business  in  England  pending  Ww  ennipletiou 
in  Turkey.  Those  branches  being  now  eoinplete<],  the 
opinion  that  they  ought  to  confine  their  oi>e rations  to  Tu 
Their  capital  at  present  was  small,  and  their  busiiie^«<  w:ib 
would  absorb  the  whole  of  their  means ;  tiiercfore  it  was 
of  the  board,  except  in  very  special  casep,  to  lUvert  the 
purposes  for  which  it  was  originally  subserilK'jJ.  (Cheer 
a  very  unpleasant  duty  to  perform,  namely,  in  cnnnntmt  oi 
a  member  of  the  board,  which  he  could  cmly  stiginatis 
and  as  haviug  no  parallel  in  the  annals  of  public  cod 
where  a  director  for  his  own  private  purprjses  lifis  atton 
the  association  with  which  he  was  connected  ("  Hea 
no,"  and  interruption.) 

Mr.  Failey  (the  director  referred  to)  rostJ  in  inucli  excit 
that  he  could  not  allow  the  chairman  to  make  ^tatmnei 
character  and  honour  without  giving  him  the  flattej^t  cout 
The  Chairman  repeated  that  he  knew  of  no  parallel  to 
a  director  had  endeavoured  to  destroy  tlie  cretlit  and  i 
association,  and  to  damage  the  property  oi  the  sharehol 
"  No,  no,"  "  Yes,  yes,"  cheers  and  counter  cheers.)  Ha 
using  strong  language  because  Mr.  Farley  liad  in  a  jmni 
him  and  just  published  calumniated  and  <  [efLiined  hiw 
although  he  had  signed  a  declaration  of  secree\',  he  liad  vie 
lishing  the  private  correspondence  of  the  association.  (G 
Any  gentleman  who  could  be  guilty  of  such  e^jiiduct  tlid  n 
at  that  board,  and  while  he  did,  the  scandal  u  «mld  stick  tc 
vent  theni  from  being  an  association  which  eould  do  an 
concluded  by  moving  the  ailoption  of  the  report. 

Mr.  Holroyd  seconded  the  motion.  He  thoiiglit  it  du© 
his  colleagues  to  make  a  few  remarks  upon  a  circular  addn 
the  shareholders,  but  not  to  all.  The  pamphlet  Jlr.  Farley 
displayed  the  basest  ingratitude,  as  well  as  the  groHsest  m 
which  he  had  revealed  the  financial  transactii>usof  geutlem 
do  business  with  the  association,  in  a  manner  tMiciilated  i€k  i 
and  cries  of  "No,  no.")  There  was  no  m.m  in  the  r* 
justify  the  betrayal  of  the  secrets  of  others  wiio  eame  to  tl: 
relying  on  their  honour,  for  the  purpose  of  t  nteriiig  into 
actions.  (Cheers.)  What  people  would  do  biLsint^SK  w\\X 
private  affairs  were  to  bo  the  subjects  of  public  iliKcusaion,  \\ 
was  to  be  questioned  in  print,  and  that  print  i-ireulaied 
country  ?  It  would  be  the  destruction  of  any  tinancial  s 
garded  the  business  the  directors  had  done,  thty  hail  given  1 
tion  to  it ;  they  were  very  large  shareholders,  and  ditl  tht 
he  would  sit  at  the  board,  having  the  large  stalie  in  the  cor 
had,  if  such  transactions  were  to  be  entered  into  as  Mr 
lead  them  to  believe  had  been  ?  He  consider* . I  the  pAiupl 
a  calumnious  attack.  (Cheers,  and  cries  of  ''  No,  uo,"  n 
fusion  and  uproar.)  He  hoped  the  sharehoUh-rs  ^vi  add  sup 
and  that  Mr.  Farley  would  be  expelled  from  the  di 
newed  up  oar.) 


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toman  Financial  Association,  485 

?tt^l  to  see  discord  reigning  among  the  members 
ninded  them  that  a  house  divided  against  itself 
bad  looked  through  the  articles  of  association,  and 
[  do  business  elsewhere,  and  they  had  the  word  of 
)  business  they  had  done  had  been  profitable,  and 
that  now  the  branches  in  Turkey  were  complete 
fine  their  operations  to   Turkish  finance.     (Hear, 

ed  the  strong  expressions  that  had  been  used  by 
Holroyd.  He  was  of  opinion  that  the  intention  of 
ion  was  that  their  business  should  be  restricted  to 
finance,  and  that  the  board  was  wrong  in  engaging 
?rence  to  the  Gellivara  Company  and  the  Mold  and 
which  some  members  of  the  board  were  directors, 
lad  been  exceedingly  indiscreet  in  embarking  in  such 

kI  out  that  directors  were  generally  chosen  from 
V.  mainly  on  account  of  their  connexions  and  the 
d  of  bringing  business  to  the  company.     (Cheers.) 
that  the  question  was  whether  the  business  thus 
actory  character. 

it  he  subscribed  for  his  shares  on  the  strength  of 
)ro8pectus,  and  he  wished  to  ask  one  or  two  j^lain 
lether  a  certain  advance  was  made  to  an  American 
unt  of  security  was  received  in  return,  whether  the 
been  dishonoured  or  renewed,  and  what  amount  had 
isbursement  in  connection  with  the  advance  to  the 

led  that  not  a  shilling  advance  was  made  to  any 
hat  the  securities  taken  by  this  company  were  such 
e  first  financial  associations  in  London ;  not  one 
t  by  way  of  disbursements,  and,  in  fact,  for  every 
»mpany  had  made  a  penny.  No  acceptances  had 
I  he  would  say,  although  he  protested  against  men- 
5  first  banks  and  bankers  in  London  had  undertaken 
'  the  acceptances.     (Cheers.) 

dered  the  explanation  highly  satisfactory,  and  asked 
ns  in  question  had  been  profitable. 
dd  in  the  aftirmative. 
m  from  Mr.  Way, 

that  with  respect  to  the  £5  paid-up  shares  in  Smyrna, 
eive  a  pro  raid  dividend,  but  that  as  a  matter  of 
pie  shares  had  been  put  on  the  same  footing  as  the 
gh  they  had  been  taken  up  later  than  the  English 
1  up  at  par,  when  they  were  in  fact  at  3  or  4  discount 

d  that  it  would  be  more  satisfactory  if  some  of  the 
trley's  pamphlet  were  answered,  and  that  as  Mr. 
jctor-general  of  the  Constantinoi)olitan  a<:lniinistra- 
many  of  his  letters  had  been  published,  he  might 
s  own  part;,  he  concurred  in  the  opinion  of  those 
dered  that  the  operation  of  this  agreement  ought  to 
Htoinan  finance ;  and  he  must  express  his  astonish- 
iluded  to  were  opened  according  to  the  pamphlet, 

3S 


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48ti 


Ottoman  Financial  Association, 


at  the  time  when  letter  after  letter  was  being  writton  by  Mr.  Ma 
niiking  for  capital  to  be  employed  in  Turkey.     He  urged  the 
tliey  were  satisfied  with  the  statements  of  Mr.  Slavrogonla 
explanation  of  the  chairmaD,  to  continue  to  rep*iae  eciufidunoc  in 

Sir.  Farley  asserted  that  every  word  of  the  letter  ho  hiwl  -w 
tniu.  He  was  was  not  the  only  one  who  had  proteiHtud  against 
the  executive  committee;  for  his  colleague,  Mr.  Neil),  ba^l  alsc 
He  repeated  that  the  branch  at  Smyrna  was  organ i Med  beforo  t 
tion  of  which  he  complained  took  place.  The  branch  at  Smyi 
be  based  on  a  capital  of  £25,000,  £10,000  of  wliicli  waa  sent  iw 
tlie  remainder  was  to  be  sent  the  following  mail^  but  it  was  uot 
lucked  up  in  the  Continental  Bank.  (Hear,  hear,)  He  proct^x] 
iii  Constantinople  to  organise  the  branch  tberu.  I'he  organ i 
completed  by  the  6th  of  July.  He  telegraphed  the  fmi  on  tl 
ou  the  day  after  the  credit  was  given  to  the  GeUlvara  Com  pan 
licMr,"  cheers,  and  confusion) — and  on  the  13tli  of  Augunt,  tb 
£50,000  was  given  to  the  International  Cod  tract  Compaity^  and 
liuty  to  tell  them  that  though  that  credit  w^is  due  on  the  1 
iiLonth,  the  acceptances  remained  unpaid.  (Gre^t  uproar  in  tl 
vvbLch  the  chairman  rose  and  accused  the  hon.  director  of  pen 
facts.) 

Mr.  Farley  could  only  tell  them  that  Mr.  NeiU  placed  Ms  pre 
Itouks  of  the  board.     (Confusion.) 

Mr.  Holroyd — This  oomes  of  Mr.  Farley's  violating  his  dec 
secresy. 

Mr.  Farley  denied  it  entirely,  and  said  that  if  his  declaratioi 
was  to  prevent  him  referring  to  such  improper  practices  as  tbat- 
trustee  for  the  shareholders — ^it  was  neither  more  nor  leas  thim  i 
compact.    He  appealed  to  Mr.  Neill. 

I^.  Neill  stated  that  he  had  disagreed  with  the  majority  of  t 
reference  to  giving  that  particular  credit,  and  bail  plaeed  a  \tTo 
books,  but  he  did  not  think  that,  because  he  was  out- voted,  he^ 
in  violating  the  declaration  of  secresy.  He  tbtrngbt  with  other 
business  ought  to  be  confined  as  much  as  poesible  to  Ottoman  £ 
lie  believed  the  transaction  in  question  a  xnirfectly  safe  oi 
guaranteed  by  a  very  powerful  company,  and  ibey  ba^l  a  com 
before  the  bills  reached  maturity,  to  the  effect  that  the  arran^ei 
not  quite  mature  for  the  railway  concession  for  wbieb  the  credil 
and  that  the  Austrian  minister  wished  to  hold  the  »6cunties  ovt 
ia  the  position  they  stood,  without  presenting  tbe  bills.  It  wn 
their  board  that  they  would  not  be  prejudiced,  but  have  p 
Bame  securities,  and  there  was  no  ground  whatever  for  insini 
the  acceptances  were  held  over  for  tSieir  oonvemieDoe.  They  we: 
fiimply  at  the  instance  of  the  Austrian  minister,  because  the  con 
notyet  been  made. 

Tne  Chairman  added  that  not  a  single  shilling  of  the  capital 
pany  had  been  locked  up  or  diverted.     True,  they  had  given  a 
it  was  a  simple  security  lodged  with  the  Austrian  miidgter  as  t 
for  a  concession  which  had  been  signed  by  the  Emperor,  but 
parsed  the  Keichsrath.     The  acceptances  were  not  a  uegotiab 
but  a  guarantee  in  the  portfolio  of  the  Austrian  minister. 

Mr.  Mavrogordato  then  addressed  the  meeting  in  French,  hi 
being  translated  by  Mr.  Sarell.  He  expressed  hia  aatonishmej 
private  letters  should  have  been  publiBhed  by  Mr.  Farley  ^ 


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lan  Financial  Asfiociation,  487 

part,  and  spoke  of  tlie  extracts  printed  in  tho 
Lgmeuts.     He  stated  that  Mr.  Farley,  being  the 
■d  with  whom  he  was  acquainted,  he  naturally 
in  being  ajjpointed  director-geuerjd  of  the  Cou- 
ition.     He  pointed  out  to  Mr.  Fiirley  that  a  very 
establishing  itself  in  Turkey,  and  that  it  w{is 
intain  their  influence,  to  enlarge  their  capital  by 
'  shiu-es  in  Tui'key.     The  issue  of  those  shares 
,  unfavourable  circumstances,  at  a  time  when  the 
in  London.     He  was  under  the  impression  that 
lave  done  something  to  improve  them,  but  not- 
i  issue  of  the  shares  was  on  the  point  of  being  com- 
rcumstances,  when  a  great  dej)ression  took  place, 
th  were  going  on  favourable  went  down  4  per  cent., 
\  and  6  per  cent,  discount.  He  wrote  to  Mr.  Farley 
ply  received  a  statement  that  altogether  presented 
»s,that  he  felt  bound  to  take  care  of  the  interests 
•s,  whom  the  Cons  tan  tinopolitan  board  had  in- 
responsibility.     He  regretted  that  as  Mr.  Fai-ley 
t  in  Ids  letters  as  to  preserve  and  publish  them, 
publish  the  statement  he  made  in  his  letter  of 
;tated  that  the  member  of  a  board  who  revealed 
a  society,  deserved  the  greatest  blame.    (Cheers.) 
the  subject  at  Constantinople,  and  his  colleagues 
)  London,  and  to  inquire  into  the  real  cause  of 
een  received  by  tlie  board  most  fraternally,  the 
Jen  given  to  his  inquiries,  and  he  had  thoroughly 
)  state  of  danger  in  which  he  believed  the  com- 
!ly  imaginary.   (Clieers.)    He  was  obliged,  there- 
the  evil,  and  he  found  it  in  the  disunited  state  of 
fid  carrying  out  of  the  business,  he  found  it  was 
i  have  a  competent  manager,  well  acquainted 
Levant,  and  that,  to  remedy  the  evils  occasioned 
ad  taken  place,  it  was  necessary  that  the  board 
In  conclusion,  he  observed  that  it  would  be 

the  society  to  divulge  the  arrangements  now 
>  £6,000  alluded  to  by  j\Ir.  Farley  in  his  pamph- 
convinced  that  no  loss,  or  at  most  a  very  trifling 
lat  transaction.  (Cheers.) 
he  auditors  of  the  company,  next  addressed  the 
e  length,  in  which  he  stated  that  the  very  best 

compsiny  in  respect  to  the  business  they  had 
ent  the  board  were  negotiating  for  such  an  ac- 
ompany  that  it  was  probable  that  their  shares 
it  position  in  a  few  months.  He  pointed  out 
ious  and  taking  the  £4,000  which  the  articles 
them  to  take,  they  hail  only  taken  £1,000. 
.  it  was  in  contemplation  at  this  moment  to 
le  managers  to  manage  their  affiiirs,  and  he  had 
lolders  reposed  a  proper  confidence  in  the  direo- 
ould  exhibit  a  very  diflerent  state  of  things. 

'  and  Tmanimously  adopted. 

quired  of  Mr.  Farley  whether  he  intended  to 


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488     London  J  Birmingham,  and  South  Staffordshir 


^ 


resign,  but  he  replied  that  he  declined  tc>  gr*  into  that  que* 

and  it  was  not  pressed. 

A  dividend  of  lOs.  per  share,  free  of  inoomet'ix,  was  rle 
The  auditors,  Mr.  James  Coojver  (<>f  tlit  tirin  of   JipIi 

Wintle  and  Evans)  and  Mr.  E.  H.  Galsw^trthy,  were  seven 
On  the  motion  of  Mr.  Beyfus,  seoondtnl  by  Mr.  Sarell,  a 

was  passed  to  the  chairman,  who  acknowlotlgetl  the  cmrip 

meeting  separated  after  two  hours'  angry  and  acrimoniuus 


LONDON,  BIRMINGHAM,  AND  SOUTH  STAFFt 

BANK. 

Thb  third  ordinary  meeting  of  the  shart holders  of  tbis  oo 
at  the  head  office,  110,  Cheapside,  ou  tbe  28th  of  Febru 
was  occupied  by  Mr.  John  Bethell. 

The  following  report  and  accounts  were  read  by  Mr. 
secretary  : — 

"  In  submitting  their  third  half-yearly  report  to  the  s! 
directors  regret  that  they  are  unable  t<i  declare  a  divid 
the  long  and  heavy  pressure  on  the  money  market,  ihiriiij^ 
close  of  the  past  year,  although  entailing  cmiqiarativt 
having  indirectly  tended  to  the  lessening  i»f  th«  prutit^  of 
be  seen  ou  reference  to  the  annexed  acrMimtii.  Tbe  balai 
has  been  examined  with  the  utmost  cjiro  by  your  ayditora 
are  professional  accountants  of  known  rcp\itt*,  nbinvft  that 
on  the  half-year  amount  to  £13,146.  13,s  4r^,  wbitb,  adde 
£4,206.  10s.  Id.  brought  forward  from  tbe  bunt  iimUt,  n 
£17,353.  3«.  lid.;  but,  afterpayment  of  all  expeusej',  ^t 
and  making  the  most  ample  allowance  fi>r  id!  d^>i)btful  dt 
actual  deficit  of  £4,874.  10s.  8e/.  Altliouj^h  it  is  believe<l 
any,  of  the  younger  banks  have  passwi  through  the  late 
with  so  small  a  loss,  and  that  the  bu^meBs  of  tbe  bank 
profitable  and  increasing  one  during  tin:  ciuTi^nt  hajfyej 
still  entertaining  the  same  views  as  exprij^sed  at  the  la*i1 
shareholders,  and  having  regard  to  tlie  [i resent  mot9t  uuj 
ciation  of  the  shares  of  the  bank  on  tbe  market,  have 
concluded  a  provisional  agreement  for  the  transfer  of  the 
Euroi^ean  Bank,  Limited,  on  terms  whieh  tliey  reeoni 
advantageous  to  the  shareholders,  and  wbich  will  be  sub  mi 
at  the  extraordinary  general  meeting  c^mveued  for  thii 
legally  to  carry  out  this  arrangement,  it  vv  dl  be  nece^sarj 
be  voluntarily  liquidated,  and  a  resolution  to  this  effect  ■^ 
at  the  said  extraordinary  meeting." 

Balance- sheet t  ^\st  Dectmhtr^  1864. 

LIABILITII  fl. 

Capital  paid  np  on  5,000  shares  at  £22   eac?i,  £110,000;  m 

advance  of  calls,  £237  ;  on  3,524  new  shiires,  £10,572  ; 

less  calls  in  arrears,  £246— £10,326 
Amount    dae     on     customers'      balances,      clepf>s)cs,     &c., 

£1.58,401.  14^.  8(2, ;  liabilities  on  acceptances  ^fthe  bank. 

£48,262.  5*.  7d 


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fi,  Birmingham,  ami  South  Staffordshire  Bank     489 

ASSETS. 

..  £20,828     3  4 

,  loans,  &c 280,938  17  3 

furniture,  fittings,  &C 10,496  18  3 

►enses        10.U88  10  9 

t  and  loss  account          4,874  10  8 


£327,227     0     3 


PROFIT  AND  LOSS  ACCOUNT, 

customers'  balances,  deposits,  &c.     ...         ...         £4,035     9  5 

es,     including     salaries,     rent,   rates,   taxes, 

ics.  &c 6,447  10  9 

il  debts  and  commission  on  issue  of  shares    ...          12,744  14  5 

£22,227  14  7 


amission X13,146  13     4 

:  and  loss  (old  account) 4,206  10    7 

ice-sheet 4,874  10     8 


£22,227   14     7 


in — There  is  one  point  I  wish  to  (lrj\w  your  attention  to, 
1  of  saving  time  and  obtaining  regularity  in  our  proceedings, 
ally,  two  meetings  here  to-day :  the   first  is  the  ordinary 

shareholders  of  this  company,  and  the  second  is  an  extra- 
ing,  called  for  the  purpose  of  considering  whether  it  is 
lot  to  amalgamate  this  bank  with  the  European  Bank, 
ink  the  meeting  will  excuse  me  for  suggesting  it ;  but  it 
sairable  that  at  this,  which  is  only  an  ordinary  meeting, 
dd  confine  their  observations  merely  to  the  matters  of  the 
ss,  and  let  us  postpone  the  question  as  to  whether  it  is 
ier  into  this  amalgamation,  till  the  extraordinary  meeting. 
Well,  gentlemen,  in  moving  the  resolution  which  I  have 
3ly,  that  tlie  report  of  the  directors,  together  with  the 
f  the  company  to  the  31st  of  December,  18G4,  be  received 

come  before  you  with  feelings  of  very  deep  regret  that  the 
cumstancijs  of  the  last  six  months  of  1864,  which  occasioned 

not  only  to  this  bank,  but  to  other  banks,  have  placed  us 
3n  that,  instead  of  being  able  to  pay  a  dividend,  we  have  to 

But,  gentlemen,  I  find,  on  looking  at  the  accounts  of  other 
ave  been  published  since  Christmas,  that  our  losses  are 
great  as  some  of  them.  I  find  that  in  the  Metro j>oli tan 
Bank  they  were  £63,000,  and  these  losses  not  only  absorbed 
profits,  but  also  £40,000  more  out  of  the  reserve  fund.  In 
ank  they  were  £241,000,  which  absorbed  all  their  profits, 
bout  £61,900  out  of  the  reserve  fund.  In  the  Mercantile  and 
:  the  losses  swallowed  up  all  the  profits,  and  £32,0lK)  more, 
that  our  loss  has  left  a  deficit  of  £4,800  odd,  and  it  is  in 

that  that  the  directors  have  considered  the  question  of 
md  have  received  various  overtures  from  diff'erent  quarters ; 
nent  and  provisional  agreement  have  been  entered  into,  and 


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490     London,  Birmitujham,  and  South  Sta^ord^hire 

•will  bo  aubinitted  to  you  at  the  extraordiuary  meeting  whit 
after  this.  As  all  the  questions  relative  U^  that  aiualgaji 
reserved  for  this  extraordinary  meeting,  I  do  not  know  tli 
thing  further  to  add,  except  to  say  tbiit  I  whsdl  he  hapii 
explanation  upon  any  item  which  any  8lu\reholdi^r  may  rerji: 
Mr.  Friedlaudor  complained  that  thi^  loPiKe^  were  really 
appeared  by  the  balance-sheet,  and  said  ho  ctmfiidererl  the  i 
the  bank  had  been  very  bad  throughout.  He  c<>ulil  not  uiid 
liow  the  directors  could  take  their  fees  iu  the  state  the  has 
and  said  tliat  his  own  opinion  was  that  tlio  anml^aniation  \ 
than  winding  up.  (No,  no.)  He  should  certainly  like  to 
directors  had  taken  for  fees. 

The  Chairman — During  the  past  six  montlis  we  have  h 
fees,  nor  had  we  anything  during  the  fir.^t  iierhxl  of  the  e 
baniv.  During  the  first  six  months  of  18G1  we  received  £ 
is  all  wo  have  ever  had  for  our  services.     (Hear,) 

Mr.  Catterall  said  there  was  commission  put  down  for  the 
and  he  would  ask  the  chairman  to  tell  the  ahsiri-liolders  vy. 
been  spent  iu  the  issue  of  these  shares,  and  who  place 
market. 

1  he  Chairman  said  he  had  no  objectitvn  to  toll  the  shai 
transaction  which  had  taken  place.  Tlie  ^^reat  ditliculty 
along  had  been  its  small  capital,  which  rendered  it  ^dmosl 
make  a  profit  which  would  cover  the  exj^-nsic!^,  and  also 
The  directors,  therefore,  tliought  it  advisahht  to  increaat 
they  could.  There  were  78*J  old  shares  whieli  ]iml  not  hrv 
the  directors  also  wished  to  issue  some  new  *ih:ii  t's.  A  gei 
to  take  tlie  whole  of  the  782  old  shares,^  luid  also  to  secure 
should  pay  on  2,000  new  shares,  on  condition  that  he 
]>rokerage  of  £2  per  share.  In  olden  tiiuas  tliat  brokera 
been  thought  a  very  high  one,  but  in  tlie  present  tinu^  it 
cases,  been  far  exceeded.  However,  tlie  residt  was  that  1 
old  shares,  upon  which  he  paid  £17,204,  and  2,<><-Hi  new  ? 
directors  disposed  of  1,500  more,  although  the  auKtunt  at 
upon  these  new  shares  amounted  to  only  £lO,lJ*i(j,  the  full 
been  made.  The  premium  received  on  tlie  seUiug  of  tl 
i!3,573,  and  that  formed  part  of  the  sum  of  £4,200  and  ot 
from  last  account.  The  result  of  these  transaetinnR  was  th 
had  to  pay  commission  upon  the  shares  taken  up  of  £5X^ 
received  by  premium  £3,573  ;  or,  to  take  it  in  another  fo 
paid  for  a  subscribed  capital  of  £94^431.  Witli  rmpecl 
market,  that  was  a  thing  the  directors  h;w.l  ah.ay^  Btreni 
nor  would  they,  under  any  circumstances,  have  lent  them 
proceetUng.     (Hear,  hear.) 

The  Kev.  Mr.  Middleraist  said  that  whilst  hfi  regrettf*^ 
the  hist  meeting  boldly  stated  the  positit»n  of  tlie  hank,  frt: 
referring  to  that  subject  now,  and  he  recommended  the  : 
the  best  thing  tliey  coiUd  do  now,  to  adopt  the  re^xirt.  Ht 
if  not  all,  of  the  directors  had  done  their  work  to  tlie  be^t 
and  certainly  he  should  not  bo  one  to  <leny  thein  fair  rem 
would  seci^nd  the  resolution  for  the  adoption  of  the  rep<»rt 
shjureholders  would,  at  the  extraordinary  meeting,  endeavi 
the  amalLcamation.     (Hear,  hear.) 

Mr.  J.  King  3i>oke  to  the  same  elTect,  and  recomniended  i 


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t,  Birmingham  and  South  Staffordshire  Bank.      491 

tjpoBal  for  amalgamation,  believing  that  waa  the  best  way  of 

their  present  difficulties. 

3n  for  the  adoption  of  the  report  was  then  put  and  carried. 

3n  of  Mr.  Rawlins,  seconded  by  Mr.  J.  King,  the  retiring 

John  Bethell  and  Mr.  J.  O.  Mason,  were  re-elected. 

>n  of  Mr.  Marsden,  seconded  by  Mr.  Catterall,  the  auditors, 

aip  (of  London),  and  Mr.  E.  Laundy  (Birmingham),  were 

r.  Middlemist  said  as  this  concluded  the  business  of  the 

Qg,  he  should  wish,  before  procee<ling  to  the  next  business, 

jial  vote  of  thanks  to  the  manager,  secretary,  and  other 

>ank.     (Hear,  hear.)     He  himself  had  always  received  the 

■f  from  all,  and  he  had  always  found  the  manager  cautious 

8 ;  and  he  certainly  thought  they  ought  not  to  separate 

r  those  gentlemen  a  vote  of  thanks.     (Cheers.) 

mp  seconded  the  motion,  and  said  that  as  auditor  he  oould 

uony  to  the  excellent  manner  in  which  the  officers  had 

r  duties. 

•n  was  carried  unanimously. 

was  then  n^ide  special  for  the  purpose  of  considering  and 

ovisional  agreement  entered  into  between  this  company  and 

Bank,  Limited,  for  the  transfer  to  the  latter  company  of 

this  company,  and  for  the  purpose  of  passing  a  special  reso- 

rinding- up  of  this  company. 

n,  in  introducing  the  subject,  said  that  for  the  past  two  or 

the  directors  had  experienced    considerable    difficulty  in 

business,  owing  to  the  smallness  of  the  capital.  They  very 
dered  the  subject,  and  as  they  did  not  see  any  great  pros- 
xig  the  capital  they  thought  it  would  be  desirable  to  ainal. 
me  other  bank.     Negotiations  had  been  entered  into  with 

and  after  fully  considering  the  subject  the  directors  con- 
I  amalgamation  wliich  they  now  recommended  was  the  best 
\  of  the  shareholders.  The  agreement  had  been  sealed  and 
luropean  Bank,  and  it  only  required  the  consent  of  that 
e  it  binding  on  both  parties, 
it  wifch  respect  to  the  amalgamation  was  then  read  by  the 

principal  point  was  that  the  European  Bank  was  to  allot 
lers  in  this  bank  5,440  shares  of  the  capital  of  the  Euro* 
on  which  £15  had  been  credited  as  paid.  It  was  also 
£6,000  should  be  left  in  the  hantls  of  the  directors  of  the 
igham,  and  South  Staffordshire  Bank,  in  order  to  enable 
nsate  the  officers. 

3  shareholders  objected  to  this  £6,000  being  so  appropriated, 
in  explained  that  some  of  the  officers  had  been  engaged  for 

certain,  and  of  course  a  fair  compensation  must  be  paid 

der  thought  the  best  plan  would  be  to  wind  up  the  affairs 
I  not  amalgamate.  (Loud  cries  of  "  No,  no.")  He  believed 
would  not  cost  so  much  by  60  per  cent,  as  the  amalgama- 

) 

.sion  ensued,  of  which  wo  can  merely  give  a  summary. 

.  Middlemist  P.sked  who  would  take  the  premises  1 

r  replied  tliat  of    coui-so  the  liquidators  would  take  the 


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492    London^  Birmingham,  and  South  Staffordshire  Ba 

Mr.  Hi^^rins  suggested  that  two  shareholders  should  he  appoi 
lu*  joint  liquidators  with  Mr.  Kemp. 

Mr.  Erskine  expressed  his  opinion  that  it  was  illegal  to  reduce 
the  shares.     He  did  not  see  how  they  could  convert,  say  £HOU  ii 

The  Solicitor  said  that  what  the  directors  proposed  tA>  ilo  wa 
legal.  This  was  not  a  conversion  of  shares — that  wntild  be  i 
eight  shares  upon  which  £3  had  been  paid  were  puttogt'tliiT^  im 
European  Bank  gave  the  shareholders  of  this  bank  jL\^  for 
also  stated  that  as  the  meeting  was  for  a  special  objii^ct  no  i 
c^rmld  be  proposed ;  the  resolution  must  either  be  carried  as  i 
rejected. 

Mr.  Schlesinger  could  not  see  that  the  sharehoiJers  wonl 
benefit  from  the  amalgamation,  and  agreed  with  Mr.  Friedhmili 
shareholders  would  be  better  off  if  the  company  was  wound  up. 

Mr.  Kemp  said  that  as  he  had  had  something  to  do  with  tb 
ment,  perhaps  he  might  be  permitted  to  say  a  few  wcirtls.  (l 
When  it  was  found  that  in  consequence  of  the  smallntiss  u£  the 
operations  of  the  bank  had  been  restricted,  efforts  had  l>ocu  uia 
j^boutan  amalgamation,  but  these  had  failed  from  the  ctiormctu 
of  getting  over  little  points.  It  was  comparatively  eaay  to  \ 
broad  principle  of  agreement,  but  when  the  details  cauie  to  bt 
they  would  be  found  excessively  difficult  to  arrange.  He  bimse 
auditor  in  both  bauks,  and  possessing  the  confidence  \A  bf^th  1 
been  the  means  of  arranging  the  terms  of  this  proposal,  and  L 
it  was  the  fairest  which  could  be  drawn  up  under  the  tircumsta 
different  clauses  were  most  carefidly  considered  aud  w(.>ighed. 

A  Shareholder — I  will  ask  whether,  if  the  assets  vjf  the  b 
only  iEl4  per  share,  have  you  any  hesitation  in  pkdcriug  yo 
there  is  no  risk  to  the  Birmingham  shareholders,  or  will  they  han 
else  to  pay  to  the  European  Bank  ? 

Mr.  Kemp  said  there  was  no  risk  whatever,  except  the  possi 
gency  of  having  to  provide  a  small  sum  for  his  own  remunerai 
other  amount  was  not  found  quite  sufficient.  In  joining  th^ 
Bank  the  shareholders  must  bear  in  mind  that  they  were  joinir 
tution  which  was  in  a  good  position — ^which  had  not  only  a  lar; 
and  a  large  subscribed  capital,  but  also  a  reserve  fund  of  betwr 
and  £30,000 ;  and  he  would  put  it  to  any  shareholder  w  bet  her 
tliat  they  should  go  in  and  participate  in  these  advantEigt»  with 
some  equivalent.  By  joining  the  European  Bank  the  BbareL 
t:uned  shares  upon  which  they  could  realise  at  once.  If  the 
wound  up,  as  suggested  by  one  or  two  shareholders,  not  fnily  v 
a  great  expense,  but  all  chance  would  be  destroyed  of  retrievii 
perty,  whereas  in  joining  another  successful  bank  the  sbarebol 
reasonably  hope  to  see  their  property  again  become  valueibki.  \\ 
to  what  had  been  suggested  by  a  shareholder — namely,  timt  t^ 
responsible  persons  should  be  selected  to  assist  him  iu  tbe  liqui 
had  no  objection  whatever  to  such  a  course  being  adopted. 
concluded  by  remarking  that  if  the  arrangement  wsis  carri* 
lielieved  the  shareholders  would  have  great  reason  hereid ter  to  oi 
tliemselves  upon  the  results  which  would  ensue  from  the  amal 
(Cheersj 

The  Rev.  Mr.  Middlemist  and  Mr.  John  King  nlao  expr( 
opinion  that  the  best  course  for  the  meeting  to  adopt  would  be 
the  agreement. 


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Estates  Bank,  493 

then  moved  "  That  the  p^ov^5ional  a«jfreemeiit  which  had 
x)  with  the  European  Bank  be  contirmed/*  which  waa 
)r  Bake,  and  upon  being  put  to  the  meetiug  the  resolution 

— There  is  another  resolution  which  is  necessary  for  the 
dly  of  this  transaction,  and  I  will  therefore  move, "  That 
y  into  efiect  the  agreement  with  the  European  Bank, 
londun  Birmingham  and  South  StafForcLshira  Bank  be 
Arily,  and  that  IVlr.  Charles  F.  Kemp  is  hereby  appointed 
e  paid  such  proper  professional  charges  as  he  is  entitled 

ded  by  Mr.  Rawlins,  and  carried  unanimously. 

n  tlien  ensued  as  to  the  desirability  of  appointing  two 

with  Mr.  Kemp;  and  eventually,  at  the  request  of  the 

mp  selected  two  of  the  shareholders — Mr.  Adams  and  the 

mist — to  assist.     At  the  same  time  it  was  exphuned  that 

le  sole  responsible  legal  liquidator. 

ks  was  then  passed  to  the  chairman,  and  the  proceedings 


ESTATES  BANK. 

and  second  ordinary  general  meeting  of  the  proprietors 
ank,  Limited,  was  held  on  the  1st  Slarch,  at  the  Free- 
Thomas  Hattersley,  Esq.,  the  chairman  of  the  bank, 
occasion.     There  was  a  very  crowded  attendance. 

Homer,  the  general  manager  and  secretary,  read  the 
ited  : — 

X  has  been  one  of  severe  financial  stringency  ;  neverthe- 
3  have  much  pleasure  in  recording  that  the  whole  of  the 
le  bank,  £10<»,000,  was  subscribed  in  a  few  months.     In 
>lutions  adopted  at  two  special  meetings,  the  capital  having 
)  £500,0(X),  a  second  issue  of  £1(K),000,  and  i^art  of  a  third 
0  have  been  applied  for.     There  are  now  upwards  of  2,000 
will  be  seen  that  although  the  bank  is  in  its  infancy,  it  ha.s 
J,318.  12a.  6<i.  on  deposit,  debenture,  and  current  accounts. 
f  the  directors,  the  consulting  actuary,  W.   S.  B.  Wool- 
s  made  a  careful  valuation  of  the  long -period  mortgages 
>auk,  and  he  certities  the  amount  thereof  at  £43,707.    The 
ances  amount  to  £1,405.  14s.  5rf.,  and  have  been  made  on 
i  securities.     This  department  has  only  recently  come  into 
gratifying  fact  that,  whilst  shares  generally  have  been 
)le,  the  bank  has  received  £1,389.  6s.  l\d,  in  premiums, 
c,  shows  that  the  public  are  not  slow  to  appreciate  its 
le  progress  of  the  bank  in  Ireland  has  been  of  a  remarka})le 
uchas  to  convince  the  board  that  the  sister  country  afiords 
or  operations.     The  business  of  the  year  shows  (after  pay- 
.  on  deposit,  debenture,  and  current  accounts)  a  balance  to 
and  loss  account  of  £7,014.  13s.  llrf.,  which  the  directors 
►e  appropriated  in  payment  of  current  expenses,  £20  per 
liminary  expenses,  £1 5  per  cent,  of  amount  paid  for  Alli- 
<)ciety,  and  a  dividend  at  the  rate  of  £7.  10s.  per  cent,  per 
Income-tax)  on  the  paid-up  capital,  leaving  £2,000  of  pro- 


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494 


Estates  Bank. 


fits  to  be  placed  to  a  reserve  fund,  and  £78.  1«.  6<2.  to  ca 
account.*' 

The  Chairman  moved  the  adoption  of  the  report  and  divides 
it  must  not  he  forgotten  that,  while  they  were  a  bank,  they 
lirTiiteil  sense,  but  they  were  a  building  company  on  an  exte 
As  a  building  company  they  embraced  all  the  practical  and  ef 
tiiiuR  of  a  buHding  society  without  its  risks,  and  they  differed  fi 
nary  bank  in  two  important  particulars.  The  first  was, 
(lid  not  discount  bills,  and  the  second  was,  that  they  did 
their  customers  to  overdraw  their  accounts.  So  that  whil 
not  discount  bills,  neither  had  they  the  profit  arising  from  thi 
of  biinking  business,  nor  did  they  realise  the  large  amount  oi 
ovt3rdrawn  accounts.  The  steady  progress  that  was  made  in  th< 
first  issue  of  10,000  shares  was  very  encouraging  to  the  direct 
rapidity  with  which  the  second  issue  was  sold  was  truly  amazii 
fitauding  the  premium  that  was  placed  upon  them,  and  they  h 
but  the  sale  of  the  third  10,000,  which  was  now  in  the  cou 
would  be  equally  gratifying.  There  was  another  department  c 
ness  equally  cheering,  viz.,  the  amount  of  current  accounts,  d( 
debentures,  making  a  total  of  over  £32,000,  whilst  the  paid-up 
under  £21,000.  In  this  respect  the  business  had  only  just 
matters  of  this  kind  it  was  useful  to  inquire  how  they  stood  in  a 
with  their  neighboiurs.  There  was  a  bank  of  great  respectability 
ing  tliAt  had  £260,000  on  deposit  and  current  accounts,  and  it  1 
Bix  branches,  being  an  average  of  £10,000  for  each  branch.  1 
Bank  had  £32,000  in  hand,  on  deposit,  debenture,  and  currei 
which  gave  £16,000  for  each  of  their  offices,  and  was  equal  to 
higher  than  the  other  bank  referred  to.  After  showing  that  c 
of  a  Tim  the  bank  had  nothing  whatever  to  fear,  the  chairman 
on  various  paragraphs  of  the  report.  He  proceeded  to  say 
f ereuce  to  the  debit  side,  you  will  see  that  after  the  whole  of 
ex|icnBds  have  been  paid,  the  interest  on  deposits  and  debentures 
theru  is  a  balance  to  profit  and  loss  account  of  £7,614.  ISs, 
your  directors  intend  to  dispose  of  in  the  following  manner  :— 
exptmaes,  £2,936.  12s,  5d. ;  to  £20  per  cent,  of  preliminar 
£1,500;  to  £15  per  cent,  of  amount  paid  for  Alliance  Build: 
£500 ;  to  profits  reserved,  £2,000 ;  to  dividend  at  £7.  lO^i 
£mOi  to  balance  to  next  account,  £78.  la.  6d.  Through  t 
lihares  in  the  present  year,  at  a  premium,  say  of  10«.  a  share,  o 
Burn  will  be  realised,  which  the  directors  hope  will  enable  ther 
the  remainder  of  the  preliminary  expenses  in  the  nGXt  twel 
which  will  then  leave  the  profits  on  the  business  for  thii*  year  t 
printed  to  dividend  and  current  expenses.  We  hopo  to  be  al 
this  out  during  the  present  year ;  but  in  order  to  do  it  effoctuaU 
to  IB  will  require  the  hearty  support  of  all  the  proprietors  and  tl 
tii  take  up  shares  and  connect  themselves  with  the  batik ,  I  havi 
great  pleasure  in  moving  the  adoption  of  the  report."    (Tioud  a 

^iv.  Job  Oauldwell,  F.K.S.L.,  deputy-chairman, seconded  the 
the  adoption  of  the  report,  and  said  that  he  felt  sure  that  the  v 
proprietors  would  regard  the  progress  of  the  bank  with  1 
satiMfaction. 

The  resolution  having  been  carried,  the  Chair uiaii  state 
diviileiid  would  be  payable  in  London  and  Dublin  to  all  share 
in  arrear  of  calls  on  and  after  the  14th  of  March. 


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European  Bank,  495 

an  moved  the  re-election  of  Job  Caiildwell,  Esq.,  Hubert 
[.,  and  Geo.  Henry  Money,  Esq.,  to  seats  on  the  board, 
laving  been  put  from  the  chair,  was  carrietl  unanimously, 
lan    proposed    the    re-election    of    the     aiiditors,    Walter 
.,  and  W.  Wellen  Smith,  Esq.,  which  was  seconded  by  Wm. 
.,  and  carried  unanimously. 

\m  proposed  the  following  resohition  : — ^*' That  the  thanks 
iors  be  presented  to  the  directors  for  their  services  during 
and  that  400  guineas  be  awarded  them  in  addition  to  the 
ixed  by  the  articles  of  association." 
Benoni  Beal  seconded  the  resolution. 

an  having  been  carried,  the  Chairman  briefly  responded  on 
board. 

n  moved  "  That  the  thanks  of  the  proprietors  be  presented 
board  for  the  care  and  attention  they  have  devoted  to  the 
bank  in  Ireland." 
Dibley  secondetl  the  motion. 
>n  was  put  and  carried  unanimously. 
e  officers  of  the  bank  having  been  given, 
an  proposed  "That  the  proprietors  of  the  Estates  Bank, 
r  that  a  well  digested  Mortgage  Debenture  Bill  would  prove 
cal  utility,  fe^^l  bound  to  resist  those  clauses  in   the  bill 
■y  the  House  of  Commons  by  Lord   Naas,   the    chairman 
Securities   Company,  Limited,     which  would   exclude  the 
and  all  similar  companies  having  shares  of  less  than  £50 
leas  than  one  million  from  the  adoption  of  its  proviHions." 
[.  Money  seconded  the  motion,  and  said  that  Lord  Naas's 
3nly  exclude  the  Estates  Bank  but  also  the  Land  Mortgage 
la,    the    Crddit   Foncier   of    Mauritius,  and   other    great 

m  was  put  and  carried  unanimously. 

te  of  thanks  to  the  chairman  concluded  the  proceedings. 


EUROPEAN  BANK. 


linary  general  meeting  of  the  shareholders  of  this  bank  was 
1  March  at  the  London  Tavern ;  Mr.  C.  B.  Colchester  in 

y  having  reafl  the  notice  convening  the  meeting,  the  follow- 
taken  as  read  : —  \ 

ors  congratulate  the  shareholders  on  the  prosperous  condi-  ; 

)roperty,  the  European  Bank  having  passed  successfully 
Ad  hnancial  crisis.     The  directors  regret  that,  owing  to  the  ' 

id  varied  nature  of  the  accounts,  they  have  found  it  quite 
kwithstanding  their  utmost  exertions,  to  prepare  an  exact  ' 

le  accoimts  in  time  for  the  present  meeting.     But  they  are 
le  to  a<ld  that  the  gross  profits  of  the  bank  since  the  last 
£00,000.       After  deducting   from   that  sum   the   current  .  ^ 

»  on  bills,  making  a  full  allowance  for  bad  and  doubtful  ' 

ing  off  the  projwrtion  of  preliminary  expenses  in  accordance 
as  of  association,  a  net  profit  remains  of  more  than  £1^0,000.  I 

ecommend  that  a  dividend  of  7s.  C(/.  per  share  be  declared, 
,te  of  7  per  cent,  per  amium  (m  the  mean  capital,  which  will 
L  17.-*.  6<^. ;  out  of  the  remainder  the  directors  proiKjse  to 


t 

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496  European  Banh^ 

carry  £10,000  to  the  reBerve  fund,  and  t"he  balances  to  profi 
^  lie  count.     The  directors  have  to  report  satis  faet*>ry  prt>gre8 

*  ments  of  the  bank.     The  various  branches  ;iro  gniuiiig  the 

'  support  of   the  mercantile  communitiei^  uf  tbe  Coiitinent. 

yielded  profitable  results,  with  the  exceptii>n  ^^f  tlmt  at  Pari 

J  have  been  made  in  the  administration  of  tbat  hraucb,and  f 

'  with  a  view  to  its  improvement  are  under  ct^iusitJemtioD, 

'  arrangement  has  been  entered  into  for  tho  trunrtfer  oi  the  1 

'  London,  Birmingham,  and    South    St<itiMrdaldrtj   Bank,   > 

j  directors  consider  advantageous  terms,  and  further  nego 

!  progress  which  will  tend  to  strengthen  the  ix>!*itioii  imd 

'  business  of  the  bank.     The  directors  do  luit  cdutouniiat-e  a 

branches ;  their  attention  will  be  mainl)?  iUreetLHl  to  the  ii 

*  those  at  present  established.  The  rapid  iucrejise  of  the  \ 
\  head  office  has  rendered  an  extension  of  the  premiaeft  i 
{  directors  have,  therefore,  the  pleasure  of  iufu ruling  the  shs 
J  they  have  secured  on  very  reasonable  terms  tlie  IttaKe  i*f  the 
I  now  in  part  occupied  by  the  bank.  Tho  retiring  direct* 
I*  l*helps,  Phillips,  Wehner,  and  Schimmelpt^nninckj  who  are 

election;  the  fir}»t  three oflfer themselves  aceordiugly.  Mr» 
Harding,  of  Bank  Buildings,  and  Mr.  Edward  Haimltc 
Oiange  Alley,  who  are  duly  qualified  share) ioldt<rs,  have  gi^ 
they  intend  to  offer  themselves  as  candidates  for  seats  at  tb 
The  Chairman,  in  moving  the  adoption  of  the  report,  <x\a 

\  last  six  months  wore  months  of  trial,  anxiety,  and  depreesii 

rarely  been  known  in  this  country,  and  thnt  deprttssion  badn 
witli  great  severity  upon  the  mercantile  commmiity,  but  i 

\  upon  young  banks  and  monetary  estabiishmi^iits.      Iude< 

precisely  the  institutions  which  had  suftVii  wl  most  from  the 
credit  for  at  least  three,  or  p>erhaps  four,  month r  had  been  \ 
ated  in  England,  France,  Spain,  Italy,  iiud  Holland*      V 

'  ©very  difficulty  had  combined  to  discourage  and  almost  deat 

^  ing  and  financial  undertakings,  but  notwithKiamling  all  i. 

and  the  various  rumours  which  were  set  afloat  upon  aU  s 
credit  of  young  banks,  this  institution  hnd  managed  to  pa 
period  of  trial  with  perhaps  the  smallest  loss  of  any  estiibli 
kiad  in  London.  (Cheers.)  Under  >ihe  circumst«DC08  it  w 
possible  to  avoid  making  some  losses,  but  thnre  was  not  oi 
the  directors  looked  with  anything  like  ft\ir.  They  weri 
must  naturally  have  occurred  in  the  regular  course  of  btiid 
not  caiised  by  any  operations  of  which  the  ihrectors  could  : 
He  regretted  that  at  the  present  meeting  they  were  unaVjle 

I  the  detailed  accounts  of  the  half-year,  which  had  been  only 

from  their  various  correspondents,  so  that  it  was  impo6sil4 
all  passed  and  audited  in  time  for  the  present  meeting.     Hi 

•  obliged  to  take  the  figures  as  it  were  in  the  rough,  but  at 

i  those  which  had  been  given  in  the  rejnirt  might  be  relies 

feet  confidence,  and  they  would  find  thtit,  tidying  thtsm 

•  narrowest  basis,  a  gross  profit  of  £60,00()  iiad  been  eameil.  ( 
items  which  reduced  that  gross  profit  to  £30,0U0  cim 
lirnt  instance,  of  interest  on  deposits  and  loimn,  amountiiig 

•*  £6,000;   bad  debts  in  Paris,  London,  and  the  branches, 

rather  under  £10,000 ;  and  the  remaining  i!  14,000  was  laad 

J  on  bills  not  yet  due,  the  expenseB  of  management^  and  5 


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European  Bank.  497 

portion  for  the  reduction  of  the  preliminary  expensas,  and 
js.  Ho  thought  that,  inasmuch  as  they  had  no  leas  than 
euts,  the  sharehohlers  wouhl  not  consider  those  charges 
Qe  of  the  shai'eholders  might  think  the  directors  too  con- 
ereuce  to  the  proposal  of  a  7  per  cent,  dividend,  and  that  a 
1  might  he  very  safely  declared.  That  matter,  however, 
well  considered.  Tlie  directors  had  looked  at  the  position 
and  they  had  found  that  those  which  held  a  high  j)08itiou 
ze  of  the  puhlic,  as  proved  by  the  hu*ge  amount  of  deposit 
cx)unts,  were  precisely  those  which  had  set  aside  a  large 
id  they  had  therefore  come  to  the  conclusion  that  until  they 
nd  of  at  least  £50,000  they  had  no  right  to  deal  more  liberally 
funds  placed  at  their  disjwsal.  (Cheers.)  He  was  sure  that 
■8  who  didy  considered  this  matter  would  agree  with  the 
was  of  vital  imi)ortance  to  new  establishments  of  this 
bo  be  too  lavish  in  the  division  of  its  profits.  (Cheers.) 
ed  in  the  report  to  the  somewhat  unsatisfactory  position  of 
ch.  That  branch  certainly  had  not  been  so  successful  as 
it  had  made  some  profit.  The  bulk  of  their  bad  debts 
ice,  but  even  after  paying  off  all  those  bad  debts  there  was 
o  the  good.  It  was  intended  to  make  some  alterations  in 
tt  branch,  and  they  confidently  expected  that  at  the  next 
ould  have  a  much  more  satisfactory  account  to  render  of 
)rs  also  believe  tlie  arrangement  which  they  had  made  with 
e  London,  Birmingham,  and  South  Stafibrdshire  BiUik 
increase  the  capital,  but  bring  a  considerable  accession  of 
bank.  The  confined  state  of  the  premises  had  hitherto 
rawback  to  them,  but  he  was  happy  to  say  that  probably 
thi  they  would  be  in  possession  of  premises  which  would 
transact  with  care  and  comfort  the  large  additional  busi- 
amalgamation  with  the  South  Staffordshire  Bjuik  would 
he  three  gentlemen  who  retired  from  the  directi(m  of  the 
;d  themselves  for  re-election,  and  notice  had  been  given  of 
)f  two  other  qualified  shareholders  to  offer  themselves  for 
le  board  considered  it  their  duty  to  support  gentlemen  who, 
to  pilot  the  ship  through  the  storm,  ought  not  now  to  be 
ey  were  in  comparatively  smooth  water.  With  respect  to 
Q  who  had  offered  themselves  for  that  office,  he  could  only 
was  really  not  any  room  for  them,  the  boaid  being  at  pre- 
Q  enough,  if  not  too  large.  It  had  been  alrea<ly  reduced 
to  fourteen,  and  they  were  at  present  engaged  in  some 
lich,  if  they  should  be  successful  in  carrying  out  (and  he 
at  they  would),  would  necessitate  the  addition  of  two  or 
on  the  board  ;  and,  if  so,  they  would  be  most  happy  to 
them  the  gentlemen  now  brought  forward,  or  any  others 
•eholders  thought  would  be  able  greatly  to  promote  the 
le  bank.  He  would  conclude  by  making  the  formal  motion 
be  adopted,  and  a  dividend  of  Is.  Qd.  per  share  be  declared, 
after  the  16th  March, 
a  seconded  the  motion. 

uired  whether  the  chairman  could  tell  them  when  the 
its  of  the  bank  would  be  ready. 

an  said  that  they  would  be  placed  in  the  hands  of  the 
^  fortnight  or  three  weeks,  and  in  reply  to  further  questions 
the  addition  now  proposed,  the  reserve  fund  would  amount 


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if',  i 

-  *  i  : 


498 


■'  ! 


I 
i 

6 


Merchant  Banking  Cotnpany  of  London. 


to  £33,000.  (Cheers.)  Mr.  Kemp,  one  of  the  auditoni,  had  gc 
to  audit  the  aooounts,  and  those  from  other  branches  had  be 
the  head  office  in  London  to  be  audited.  In  Holland  they  had 
tiye  council,  which,  among  other  duties,  performed  that  of  exi 
Rotterdam  and  Amsterdam  accounts  before  they  were  sent 
audited.  The  accounts  have  been  all  sent  in,  so  that  the  rei 
announced  were  not  matters  of  guess,  but  were  deriyed  fron 
figures.  The  reason  they  were  not  now  in  the  hands  of  the  n 
simply  that  the  board  had  not  as  yet  had  time  to  put  them  into  pi 

A  Shareholder  inquired  what  proportion  of  the  preliminary  e 
remained  unpaid',  and  what  was  the  annual  proportion  of  paym 

The  Chairman  stated  in  reply  that  the  annual  proportion  < 
fixed  by  the  articles  of  association  was  10  per  cent.,  and  that  \ 
remaining  to  be  paid  was  £16,000. 

The  report  was  then  unanimously  adopted. 

The  Chairman  next  proposed  the  election  of  the  three  retirin 

Mr.  Hodges  objected  to  the  proposition  for  the  election  < 
coming  from  the  chair,  and  complained  that  the  position  of  se^ 
gentlemen  on  the  board  was  not  so  good  for  the  interests  of  1 
that  of  some  other  gentlemen  in  the  City,  whose  accession 
great  strength  to  the  company.  He  did  not  say  a  word  against 
directors,  but  he  thought  that  if,  as  the  chairman  had  said,  th< 
too  large  already,  they  ought  not  to  proceed  to  re-elect  them. 

The  Chairman  said  that  the  directors  placed  themselves  < 
hands  of  the  meeting ;  at  the  same  time  he  thought  he  could  ] 
on  the  present  occasion,  than  propose  from  the  chair  the  nan 
gentlemen  who  had  borne  their  fair  share  of  trouble  and  anxiel 
had  contributed  by  their  labours  to  establish  the  bank.  He  sh< 
fore,  propose  their  names  from  tbe  chair,  and  at  the  same  time 
open  to  any  shareholder  to  propose  others. 

Mr.  Michell  then  proposed  the  name  of  Mr.  R.  T.  Harding, 
seconded  by  Mr.  Hodges,  and  loudly  cheered  by  the  meeting. 

The  Chairman  then  proceeded  to  put  the  question  tbit 
retiring  directors  be  re-elected,  when  several  of  the  sharehi 
exception  to  the  form  in  which  the  question  was  put,  and  a  rs 
discussion  ensued  as  to  the  mode  in  which  the  election  should  1 
but  eventually 

Mr.  Femeux  proposed  as  an  amendment  that  upon  the  preao] 
only  one  director  be  elected,  which  was  carried  unanimously. 

The  Chairman  then  put  tiie  names  of  the  retiring  directors  c 
Mr.  Harding  seriatim,  when  the  latter  gentleman  was  elected 
majority. 

A  special  vote  of  thanks  was  then  given  to  the  retiring  direot^ 
the  motion  of  the  chairman,  seconded  by  a  director,  a  vote  of  \ 
given  to  Messrs.  S.  J.  Jitta  and  Schroeder,  the  consultative 
Holland,  for  the  great  services  they  had  rendered  to  the  b 
similar  compliment  was  paid  to  Mr.  BnghtrooU,  the  manager, 
chairman  and  directors,  for  their  attention  to  the  affairs  of  the 
the  proceedings  terminated. 


MERCHANT  BANKING  COMPANY  OF  LONDON,  LD 
Thb  second  ordinary  general  meeting  of  the  shareholders  of  thi 
was  held  on  the  9th  March  at  the  London  Tavern ;  Mr.  J.  Patei 
chair. 


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Icrchant  Banking  Company  of  Lotidon. 


499 


r  report  was  read  : — 

tig  their  first  annual  report,  the  directors  congratulate  the 
on  the  favourable  results  of  the  operations  of  the  company 
December  last.  By  the  statement  of  accounts,  made  up  to 
be  seen  that  the  gross  profits  (including  a  sum  of  £10,000, 
'alue  of  the  company's  premises  over  the  cost  thereof) 
,044.  7s.  3(/.,  and  that  after  the  payment  of  current  ex- 
)ate  of  bills,  and  making  provij<ion  for  bad  and  doubtful 
iiains  an  available  balance  of  £44,556.  7s.  7d.,  which  the 
nend  to  be  appropriated  as  follows  : — £4,666.  13.^.  4d.  to 
1  of  9a.  4:d.  per  share  paid  to  30th  June  last ;  £10,000  to 
I  of  £1  per  share,  being,  together  with  the  above  interim 
rat«  of  about  12  per  cent,  per  annum ;  £10,000  to  the 
algamation  account ;  £10,000  to  reserve  fund ;  £3,750  to 
t,  for  remuneration  to  directors  and  auditors,  and  pay- 
tax  ;  £1,000  to  the  reduction  of  preliminary  expenses ; 
I.  to  be  carried  forward  to  new  account.  It  is  satis- 
rectors  to  show  that  in  the  purchase  of  the  premises  from 
J.  Johnston  and  Co.,  at  £10,000,  they  have  secured  a  very 
•ty,  for  which  they  have  since  been  oflfered  the  Bxim.  of 
10,000  estimated  profit  thereon  has  been  applied  by  them 
amalgamation  account.  As  the  steady  progress  of  the 
]!orapany  indicates  that  an  increase  of  capital  can  be  bene- 
1,  the  directors  have  resolved  upon  the  issue  of  5,000  new 
h  1,800  shares  will  be  appropriated  to  the  late  firm  of 
J.  Johnston  and  Co.,  in  fulfilment  of  an  agreement  with 
rcjsidue  allotted  at  par  to  the  present  shareholders,  in 
roportions  to  their  existing  iuterests.  The  directors 
much  regret,  the  death  of  M.  de  Castro,  one  of  the  original 
'razer,  Esq.,  John  Paterson,  Esq.,  and  Edward  Weston, 
1  the  direction  at  this  meeting,  but,  being  eligible  for  re- 
emselves  accordingly." 


Balanee'sheet,  3\st  December,  1864. 

Ti7.,  £22.  lOs,  per  share  on  10,000  shares, 

s  calls  in  arrear  £1,010       £223,990    0    0 

Qst  credits  and  securitiei,  and  amounts  dao  to 

current  and  deposit  accounts       1,443,228    4     9 

sd  to  profit  and  loss  account,  viz.,  gross  profits 

3d, ;   increased  value  of  premises  £10,000    ...         64,644    7     3 


bankers,  end  at  call 

>ans,  securities,  &c 

uses  ...         ...         .••         ..■         •■•         ••• 

ixtures,  &c 

nises  at  28,  Cannon  street 

tcuunt — ^amount  paid  H.  and  J.  Johnston  8c  Co. 
)f  their  business        


£1,731,862  12 

0 

.     £126,321     4 

1,481,005     2 

3,239  18 

1,296     6 

20,000     0 

:>. 

100,000     0 

8 
3 
5 
8 
0 

0 

£1,731,862  12 

0 

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ized  by  Google 


goo 


Merchant  Banking  Company  of  London, 


PROFIT   AND  LOSS   ACCOUNT. 

From  the  \st  December^  1863,  to  the  Z\st  DceemLert  186 
Dr. 
Gurrkiin  expenses,  and  provision  for  bad  and  doubtful  debts      ...     i 

Kebiite  DTI  IhIIs  discounted  and  not  yet  due    ...     ...     .., 

Amouot  {l«ing  increased  value  of  premises)  transfcntd  to  atnal- 
g.iiiiation  account,  £10,000;  amount  transferred  to  rcscrv'e 
fund,  £10,000;  amount  transferred  to  preliminary  ex|»t?ns;e9, 
1 ,00U  ;  dividends,  viz. : — Interim  dividend  on  paid-up  capital 
of  £  125,000,  to  30th  June  last,  £4,666  13*.  4r/. ;  dividLnd  of 
£  I  per  share,  now  recommended,  £10,000— £14,666  13*.  44.  ; 
iMTHHint  carried  to  suspense  account,  for  remuMcration  to 
direi'ijjrs,  auditors,  and  for  income-tax,  £3,75U  ;  balance 
carried  forward  to  new  account,  £5,139.  145.  Sd *. 


Or. 
Amountofprofitbrought  down,  viz.:— Gross  profits,  £54.644  7*,  3i.j 
increased  value  of  premises,  £10,000,     


The  Chairman,  in  moving  the  adoption  of  the  report,  expreaac 
thi3  reaultft  would  be  considered  in  ^1  respects  sat  L«i factory,  fi 
meeting  they  had  passed  through  ticklish  and  difKiult  times,  wh 
necessary  to  act  with  caution,  and  to  curtail  rather  than  to  e 
tioua.  They  had  in  consequence  felt  compelleil  to  dodine  mi 
profitable  business ;  and  although  they  had  not  altogether  e^ 
fur  which  full  provision  was  made  in  the  accounts — they  wei 
show  a  net  profit  at  the  rate  of  30  per  cent,  on  tlie  avtra^ 
the  paid-up  capital.  At  the  previous  meeting  tbey  had  paic 
dividen<l  at  the  rate  of  10  per  cent. ;  and  it  woiihl  be  recuO^ 
stated  that  the  directors  would  not  have  made  that  interim 
less  they  had  felt  satisfied  that  they  were  making  a  profit  at  1 
per  c«iit.  It  was  gratifying  to  find  that  the  perf(;>niiaijce 
reapect  outrun  the  expectation,  and  he  was  happy  to  a^id  tl 
otht^r  banking  institutions  had  suffered  in  credit  and  charact^ 
period  of  financial  pressure,  not  the  slightest  breath  of  si 
f>een  breathed  against  the  Merchant  Banking  Cuinpatjyj  wh*isi 
as  high  afl  ever.  (Hear,  hear.)  The  directors  had  felt  some 
to  the  apportionment  of  the  profits,  but  he  thought  they  hi 
rigbt  conclusion  in  devoting  £10,000  to  a  further  dividend  of 
(ill  addition  to  the  9s.  4c£.  per  share  paid  in  June  last),  being  ; 
between  11  and  12  per  cent. ;  carrying  £10,000  to  the  reHerve  1 
the  reserve  £15,000  ;  writing  off,  not  one-tenth,  lus  wjia  UBual,  h 
nearly  oiie-third  of  the  preliminary  expenses  ;  i  lacing  the  i 
value  of  the  premises  in  Cannon  Street,  purchased  from  Mesa 
at  the  price  they  originally  cost  them,  or  less  than  half  th«ij  p 
to  the  reduction  of  the  amalgamation  account ;  allotting,  su 
approbation  of  the  shareholders,  £3,750  to  the  suHpeu^  ace 
r enumeration  of  the  directors  and  auditors  and  payment  of 
and  carridng  forward  to  the  credit  of  the  new  account  £5.139. 
might  be  supposed  that  where  the  profits  were  so  large  the  r; 
portinnately  great.  But  it  was  not  so.  The  biiKiuess  of  a  ban 
oon^i^te^l  in  affording  facilities  to  merchants  trailing  in  all 
world,  who,  by  applying  to  the  bank,  could  receivw  ^  credit  ai 


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Agra  and  Masterman^s  Bank.  501 

• 
rer  aDy  goods  they  might  there  purchase,  thtia  avoiding  the 
ding  out  gold,  and  the  charge  for  freight,  insurance,  and 
est.  For  this,  of  course,  a  commission  was  charged,  and 
\  the  bills  of  lading — a  margin  of  26  per  cent,  upon  the 
dl  but  very  exceptional  cases  preserved,  in  order  to  secure 
t  the  possibility  of  loss  by  depreciation  of  value.  In  addi- 
of  lading,  the  policy  of  insurance  was  also  deposited  with 
to  protect  them  in  the  event  of  the  loss  of  the  cargo  by 
There  was  other  business  which  came  to  them  collaterally, 
)peration8,  insurance,  and  brokerage,  connected  with  these 
produced  a  profit  in  the  shape  of  commission.  Likewise 
y  in  Manchester,  sent  out  a  large  cargo  of  manufactured  goods 
iny  other  port,  the  Merchant  Banking  Company  took  a  lien 
allowing  the  merchant  to  draw  at  so  many  days'  sight  from 
dch  the  consignment  was  likely  to  reach  its  destination,  of 
lad  agents  in  all  the  great  trading  i)ort8,  they  had  the  most 
ttion,  as  well  as  of  the  position  and  character  of  the  con- 
ecurity,  therefore,  was  of  the  best  description,  and  really 
ess  risk  than  was  associated  with  ordinary  banking  business. 
[>f  the  bank  were  increased  at  such  a  rate  that  the  directors 
r  capital  might  be  safely  and  profitably  employed,  and  it 
Eis  explained  in  the  report — proposed  to  issue  5,000  new 
which  were,  under  the  terms  of  the  agreement,  to  be  ap- 
e  firm  of  Messrs.  H.  and  J.  Johnston  and  Co.  in  fulfilment 
t  with  them,  and  the  residue  allotted  at  par  to  the  present 
approximate  proportions  to  their  existing  interests,  and 
^pressing  hia  readiness  to  aflford  any  further  information 
Bsired. 

le,  deputy  chairman  of  the  board,  seconded  the  motion, 
d  to  unanimously. 

,  at  the  rate  of  12  per  cent,  per  annum,  was  then  declared, 
Qade  in  ten  days,  this  being  in  addition  to  the  interim 
)d  at  the  last  meeting.  £3,0(X)  was  voted  to  the  suspense 
Quneration  to  directors  and  auditors,  as  suggested  in  the 
mi  an  explaining  that  this  was  equal  to  about  £175  to  each 
hen  it  was  considered  that  they  had  upon  the  board  gentle- 
«rith  trade  and  practically  acquainted  with  the  mercantile 
;he  various  parts  of  the  world  with  which  they  had  business, 
ave  their  b^t  attention  to  the  operations  of  the  bank,  he 
.  too  much. 

directors — Messrs.  L.  Fraser,  J.  Paterson,  and  E.  Weston 
d,  and  votes  of  thanks  to  the  chairman,  board  of  directors, 
the  company  for  their  services  during  the  past  year  oon- 


k  AND  MASTERMAN'S  BANK,  LIMITED. 

t  annual  general  meeting  of  the  shareholders  of  this  bank 

)  London  Tavern  on  the  11th  March,  Mr.  George  Gordon 

the  chair. 

Manager  (Mr.  Mackintosh  Balfour)  read  the  notice  con- 

tiBg,  and  also  the  following  report  of  tlie  directors  : — 

re,  in  Bubmitting  to  the  proprietary  the  audited  accounts 


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502 


Agra  and  MastermarCs  Bank. 


for  the  year  ended  Slat  December  last,  beg  to  report  that,  ai 
ample  provision  for  bad  and  doubtful  debts,  the  available 
:£ 263,120.  8a.  6<i.  Out  of  this  sum  the  directors  have  jtaid  two 
(ii  videndn  at  the  rate  of  10  per  cent,  per  annum  each  on  t  be  nrigi] 
the  bank,  adding  a  bonus  of  £2  per  share  for  the  first  six  luonth 
pec  share  for  the  second  six  months,  thus  making  tlie  ti>tal  «liBt 
t lie  year  20  per  cent.,  free  of  income-tax,  on  the  original  capital  of 
sterling.  The  directors  have  also  paid  a  dividend  at  the  m 
ceut.  per  annum  on  the  new  capital  of  £500,000,  adding  a  bom 
ptT  share,  together  equal  to  20  per  cent,  per  annum,  fre<j  of  ino 
the  half-year  just  ended.  The  balance  of  £16,321,  1  \s,  is  can 
to  credit  of  profit  and  loss  accoimt  for  the  current  year.  1 
h:ive  the  pleasure  to  report  that  the  amalgamation  with  the  p 
of  Messrs.  Maaterman,  Meters,  Mildred,  &  Co.,  has  been  succet 
pbsted,  and  that  the  new  capital  authorised  by  tbo  special 
pTi^b^  at  the  extraordinary  general  meetings  of  the  cuinpauy, 
7tb  and  2lBt  May  last  has  been  subscribed.  Every  arrangemc 
tc»  the  amalgamation  has  been  made,  and  the  Directors,  after  fi 
engagements  into  which  they  entered,  have  been  rible  to  m 
reserved  fund  of  the  bank  to  £500,000,  at  which  they  propose  i 
in  future  stand.  The  sanction  of  the  Board  of  Trade  h.is  been 
tlie  present  designation  of  the  bank,  and  the  direct* trs  hav< 
I'^u'liament  for  an  Act  to  enable  the  bank  to  divide  their  sliarea, 
List  annual  meeting  the  directors  have  opened  a  sub-briutch  of 
IVlellwume.  They  have  also  arranged  for  the  sale,  on  Batiafa- 
ui  the  premises.  No.  27.  Cannon  Street,  and  of  the  builtling  ii( 
by  the  branch  of  the  bank  in  Calcutta.  The  present  auditors  \y 
ff>r  re-election,  in  terms  of  the  deed  of  settlement,  offer  themae 
ingly." 

Bdlanee-sheet,  December  3lst,  1864. 

Dr,  LIABIUTIEB. 

Pit  id-up  capital 

Keserve  fund  ... 

Atiioant  due  by  the  bank  on  customers'  balances,  fixed  deposits^ 

and  note  circulation  in  China       

Ditto  on  acceptances  by  head  office  for  branches  and  country 

banks        ,. 

Ditto  on  exchange  accounts,  letters  of  credit,  circtdar  notes, 

Profit  and  loss 


£1,5^ 

4,8i 
2i 


£n,5< 
Or.  ABSBts. 

Cash  in  hand  and  at  call  4t  head  office  and  branches  ...     £1,94 

G<»vcmment  securities    ...  31 

DiHiCounts,  loans,  credits,  &c.  6,0-J 

Utiier  securities,  including  gold  and  silver  bullion,  bills  pur- 

chased,  &c 

Freehold  premises  in  London,  Edinburgh,  Calcutta,  Bombay, 
Madras,  Agra,  Lahore,  Shanghai,  and  Sydney,  and  l(^fie- 
hold  property  at  the  other  branches     *. 


8,8« 


25 

£17.5( 


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ized  by  Google 


£50^000 
40,000 

0 
0 

0 
0 

50,000 

60,000 

0 
0 

0 
0 

23,399 
23,399 
16,321 

8 

8 

11 

9 
9 
0 

£263,120 

8 

6 

Agra  and  Masterman^a  Bank.  603 

No.  2. 
d  Loss  account t  from  January  1  to  December  31,  1864. 


lend  on  paid-np  capital  at  10  per  cent,  per 

f-year  ended  30th  June  

share      

end  on  old  shares  at  10  per  cent,  per  annum, 

nded  31st  December       ■,      

t  £3  per  share         

end  on  new  shares  at  10  per  cent,  per  annum, 

ided  3l8t  December        

:  £l.  5f.  per  share  .,,       

brward 


t     forward     from     3]Bt    December,     1863, 

d. ;  gross  profits  at  head  office  and  branches, 

^er,  1864  (after  making  provision  for  bad  and 

,£564,612. 14*.,  £575,181.4*.  2(/;  less  interest 

rent  and  deposit  accounts,  £203,672. 15*.  2d.     £371,508     9    0 

3  of  head  office  and  branches,  including  rent, 

axes,  stamps,   salaries,    and    miscellaneous 

108,338    0    6 


Reserved  Fund  Account,  Z\st  December^  1864. 
of  reserved  fund 


December,  1863 
y  as  per  report 


1  said— "I  rise  to  move  the  adoption  of  the  report  that  has 
.  copy  of  which  has  been  in  the  hands  of  the  proprietary 
but  previously  to  doing  so,  I  propose,  as  is  usual  on 
e  present  (when  we  have  the  pleasure  of  seeing  so  many 
ad  shareholders  assembled  together),  to  enter  into  some 
atters  referred  to  in  the  report,  as  well  as  to  offer  a  few 
lich  I  trust  may  prove  interesting  and  acceptable  to  you 
e  administration  of  your  affairs,  which  have  been  under  our 
he  past  year.  In  the  first  place,  I  would  remark  that 
the  thirty. first  annual  general  meeting  of  the  Agra  Bank, 
at  has  been  held  since  it  was  amalgamated  with  another, 

present  designation  of  the  Agra  and  Masterman's  Bank  ; 

that  it  cannot  fail  to  be  highly  gratifying  to  you  to  be 
e  amalgamation  has  been  completed  in  the  most  satisfactory 
;  hear.)    There  must  be,  as  I  dare  say  many  of  you  are 


£263,120 

8 

6 

£500,000 

0 

0 

£500,«00 

0 

0 

£225,000 
275,000 

0 
0 

0 
0 

£600,000 

0 

0 

Digiti 


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504 


Agra  and  Masterman^n  Bank. 


aware,  considerable  difficulty^  in  bringing  two  large  eil 
together  and  into  good  working  order,  even  wbtre  tlie  iK5coiitit 
kept  i)n  the  same  principles ;  but  in  our  caKf  the  fiitticuUy 
in  creased,  from  the  circumstance  of  the  acoounts  <»f  tlie  two  t>; 
been  formerly  conducted  upon  two  different  syntLUis,  which  r* 
necessary  fusion  a  work  of  time  and  of  extraortlinary  labour 
of  HUT  establishment.  Some  estimate  may  be  fnrrae^l  of  thi?  i 
of  oxtra  labour  that  was  thus  imposed  on  our  estriM  wliment,  wl 
ytm  that  it  required  for  months  the  daily  atten^huiee  of  a  largi 
of  our  staff  many^hours  after  the  usual  time  of  lui?iine^3  hef< 
cultiea  were  surmounted,  and  a  correct  and  coraplftu  fusion  uf ' 
accoDiplished — a  result  most  creditable  to  all  c^nutrtied,  anil  o 
ill  the  midst  of  the  late  commercial  crisis,  wliith  of  itself  wju 
cioiit  to  tax  the  best  energies  of  any  banking  or  coiomorcial  esi 
It  is  now,  therefore,  a  very  pleasing  part  of  iny  duty  k^  ex 
how  much  we  owe  to,  and  how  highly  the  boanl  of  dirtwtor 
tbu  great  ability,  zeal,  and  perseverance  dinplaytNi  by  ou 
managers,  and  the  combined  staff  under  their  supt^rvUion  at 
so  much  importance — (hear,  hear) — and  I  fed  very  sure 
gratify  you  to  learn  that  the  directors  have  recognised  «u 
t<*  the  interests  of  the  bank  in  a  liberal  and  BiiU=^tiuiti:d  mani 
hear,)  Having  made  you  acquainted  with  some  nf  thi?  difficul 
to  contend  with  in  consequence  of  oni  amalganiittiun,  I  havii 
greater  pleasujre  in  referring  to  some  of  the  fid  vantages  we  h 
obtained  and  now  enjoy.  We  have  acquired  a  IrLr^^e  increaats  to 
business.  (Hear,  hear.)  Secondly,  we  have  bec^nue  men 
clearing-house,  a  position  which  it  was  abaolutily  necessary 
obtain  to  enable  us  to  carry  on  our  Loiuloa  businefts 
and  with  satisfaction  to  ourselves  and  merea utile  cuatomi 
hear.)  Thirdly,  we  have  become  the  possessiurs  uf  one 
valuable  freehold  properties  in  the  city  of  Ltindon,  (1 
roiirthly,  we  have  moreover  the  benefit  of  the  atldce  and  i 
our  new  colleagues,  the  partners  of  the  late  firm  of  MBA.<;rs. 
Peters,  Mildr^  and  Co.,  not  only  at  our  board,  Imt  daily  i 
parlour,  which  has  greatly  tended  to  keep  tiieir  old  and  va 
Dcxion  together,  notwithstanding  the  numerouB  and  various 
hail  recourse  to  in  these  days  of  hot  banking  competition 
mildest  phrase)  to  induce  customers  to  take  tht-ir  accx:runts  eLu: 
have,  however,  you  will  be  glad  to  hear,  manjit^a'd  t^«  keep  nc 
we  pot,  but  we  have  gained  an  accession  of  valuable  buflinoi*, 
bxi^mess  continues  to  increase  as  it  has  done  since  the  am^algai 
no  reason  why  the  Agra  and  Masterman's  Bank  i^hould  not,  er 
the  oldest  and  greatest  of  its  competitors  in  the  tielil  of  pu 
tiou.     (Hear,  hear.)    Having  now  mentioned  what  may  be  coi 

Eractical  restdts  arising  from  the  amalgamation,  I  must  adc 
ability  incurred  thereupon  has  beem  duioharge^],  and  the  di 
been  enabled  to  increase  the  reserve  fund  to  ^51)0,000  sterlinj 
which,  as  stated  in  the  report,  they  propose  it  Rball  stand.  {. 
You  will  observe  from  the  balance-sheet  that  we  have  taketi 
tunity  to  classify  our  liabilities  or  engagements,  so  as  to  affort 
niation  to  all,  which  the  most  eminent  writers  and  autliorities 
consider  essential.  We  have  given  equally  full  particulars  tm  t 
Atnougst  them  you  will  see  one,  which  I  ba\'e  no  doubt  wi 
usual  ftnnual  inquiry  from  a  ahareholder  (now  present),  an 


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Agra  and  Ma^terman*a  Bank.  505 

n  anticipation.  I  allude  to  Government  securities,  which, 
3  report,  stand  at  £397,280.  (Hear,  hear.)  This  is  largely 
I  amount  of  the  reserve  fund,  before  the  addition  was  made 
e  the  1st  January  last  purchases  have  been  made  which 
it  to  £524,214.  This  I  mention  to  show  how  keenly  alive 
re  to  the  expediency  of  keeping  at  least  the  amount  at 
?erve  fimd  in  Government  securities.     (Hear,  hear.)     The  ' 

liich  I  would  beg  your  attention,  and  ujx)n  which  I  think  ' 

to  congratulate  our  shareholders,  is  the  manner  in  which  * 

has  been  subscribed  during  a  time  when  money  has  been  ' 

dear,  and  when  pressure  has  been  so  severe  on  all  sides.  i 

rhe  number  of  our  shareholders  was  725  last  year,  aud  the  ' 

the  register  is  908,  a  very  satisfactory  proof  of  the  eati- 
I  tlie  bank  is  held  by  the  public.  You  will  appreciate  this 
ir'hen  I  tell  you  that  a  majority  of  the  new  shareholders 
'ho  are  likely  to  benefit  us  as  well  as  themselves  by  join- 
(Hear,  hear.)  I  shall  now  make  a  few  observations  on  the 
bank  during  the  past  year,  and,  considering  the  difticidties 
alluded  to,  the  large  addition  to  our  capital,  and  the 
;tions  which  from  the  depressed  state  of  trade  it 
y  to  impose  on  biLsiness  both  at  home  and  abroad, 
h  has  enabled  us  to  pay  dividends  equal  to  20  per 
1  on  the  whole  capital  of  one  million  and  a  half  ster- 
Ty  forward  a  handsome  sum,  cannot  but  be  considered 
)ry.  (Hear,  hear.)  Notwithstanding  the  restrictions  I 
(and  in  proof  of  them  I  may  mention  that  our  acceptimces 
y  have  been  decreased  by  more  than  one  million  sterling) 
tan  ding  these  restrictions,  and  all  our  caution  and  prudence, 
tation— nay,  it  would  be  untrue — if  we  attempted  to  dia- 
hat  we  have  sufi'ered  losses  by  the  late  failures,  and  heavier 
ere  by  any  means  pleasant ;  but  it  will  be  cheering  to  our 
Luow  that  ample  provision  has  been  made  out  of  the  profits 
only  for  all  the  biid,  but  also  for  the  doubtful  debts,  thus 
losition  safe  and  comfortable,  after  the  effects  of  a  some- 
disastrous  period  in  the  commercial  world.  (Hear,  hear.) 
Bss  learned  from  the  public  press  that  monetary  difiiculties 
China,  which  from  the  very  deprej^sed  state  of  trade  we 
3t,  and  I  have  great  pleasure  in  stating  that  at  the  present 
B  no  reason  to  anticipate  any  loss  frt)m  our  branches  in 
Hear,  hear.)  In  Bombay  there  has  been  excessive  specu- 
on  of  credit,  but  latterly  regular  business  appears  to  have 
elected,  and  public  attention  has  been  directed  to  reclama- 
nancial  companies  and  new  banks — a  triad  which  was 
hat  the  shares  of  all  rose  to  a  very  high  premium  before 
was  reclaimed  from  the  sea,  or  a  single  share  allotted.  I 
I  you  that  we  have  held  entirely  aloof  from  such  business  ,• 

iiid  quietly  await  results  which  a  recent  telegram  leads  us  |. 

lot  far  distant.     This  state  of  things,  as  well  as  the  un-  j 

•e  of  cotton,  led  the  directors  some  time  since  not  only  to 
il  business  in  Bombay,  but  to  limit  the  shipments  of  gold 
for  which  purpose  the  sub-branch  at  Melbourne  was 
Lishcd.  I  tliink  I  have  now  alluded  to  every  point  likely 
3ut  should  I  have  omitted  anything,  or  failed  in  making 
y  clear  on  any  of  the  subjects  I  have  referred  to,  I  shall 


Digitized  by  VJiOOQIC 


506 


Bank  of  Auatralama. 


be  happy  to  supply  any  deficiency  that  may  be  painted  c 
my  ability.  I  now  beg  to  conclude  by  movin^^  that  the  repo 
and  balance-sheet  be  received  and  adopted.     tHenr,  hear/ 

Alderman  Finnis  (deputy -chairman)  lia^l  great  plea^ 
the  proposition.  He  felt  that  after  the  clear  and  lucid  at 
excellent  chairman  he  (Alderman  Finnis)  ueed  only  ref 
and  that  was  the  very  large  increase  of  shareholders, 
those  woidd  bring  new  customers  to  the  bank,  he  tlioiiehl 
say  that  next  year,  instead  of  a  dividend  of  20  per  cent., 
would  receive  25  per  cent.     (Hear,  hear.) 

The  resolution  was  put  and  carried  unanimoualy. 

Upon  the  proposition  of  Captain  J.  G.  JnhDBton,  secon 
Tulloh,  the  retiring  directors  (Major-General  James  ] 
James  Holland^  Mr.  G.  Hay  Donaldson,  and  Alderm; 
unanimously  re-elected. 

Alderman  Finnis,  in  acknowledging  the  vote,  tliariked 
for  their  renewed  mark  of  confidence,  and  a.^ soured  them  tt 
directors  woidd  do  everything  in  their  powor  to  projnote  ' 
th0  bank.     (Hear,  hear.) 

Upon  the  proposition  of  Colonel  W.  MncGeorge^  seoo: 
Marshall,  the  retiring  auditors  (Mr.  J.  H.  Williaii 
Farr,  D.C.L.,  F.R.S.)  were  unanimously  re-elected. 

Upon  the  proposition  of  General  W.  M.  Rumsay,  seoom 
Fawcett,  it  was  unanimously  resolved  that  the  tlianks  of 
be  given  to  the  board  of  directors,  to  the  general  manag 
tosh  Balfour),  to  the  London  manager  (Mr,  W.  Shipmon) 
committee  and  managers  of  the  branches,  fc»r  their  ahle 
manageme^t  of  the  bank's  affairs  for  the  pa^t  >  ear,  and  t 
their  efficient  supervision  of  the  accounts. 

The  vote  was  appropriately  acknowledged  by  Major  M; 

A  vote  of  thanks  to  the  chi^rman  tenmn^tted  the  procoi 


BANK  OF  AUSTRALASU. 


Thb  thirty.first  annual  general  meeting  of  proprietors  ' 
13th  March  at  the  offices  of  the  corporation  in  Threadncc 
Edward  Hamilton  in  the  chair. 

The  report  and  statement  of  accounts  wero  aw  follows  :- 
"  The  directors  have  the  pleasure  of  placing  bufore  tht 
accompanying  statements,  showing  the  results  of  the  o 
bank  for  the  financial  year  ending  the  10th  of  October,  1864 
that  these  results  contrast  favourably  with  tliose  present© 
considering  that  the  business  in  New  Zealand,  where  the  ] 
the  new  capital  was  employed,  was  of  limited  imiouiit  throi 
period  to  which  the  accounts  refer,  the  directors  hope  thj 
ment  will  be  accepted  as  highly  satisfactory.  The  di recto: 
the  retirement  from  the  d&ection  of  two  valiied  oolleagi 
has  resigned  his  seat  owing  to  long-continued  iUceRs,  and 
consequence  of  having  accepted  office  under  goverament 
cies  will  have  to  be  filled  up  this  day,  in  conformity  ii 
settlement.  The  fourth  series  of  new  shares  having  b© 
capital  of  the  corporation  is  now  augment*  d  to  i;i;200,l 
limited  by  the  charter.     The  first  instalment  of  £10  pet 


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Bank  of  Australasia.  507 

bober  last ;  the  second  instalment  will  participate  in  divi-  » 

and  the  third  in  October  next,  after  which  date  dividend       •  , 

the  entire  capital  of  the  corporation,  and  the  distinction 
d  new  shares  will  cease.  The  directors  have  declared  a 
i  shares,  payable  on  the  11th  of  April,  at  the  rate  of  6  j 

muum,  and  a  bonus  at  the  rate  of  8  per  cent,  per  annum, 
come-tax,  being  together  at  the  rate  of  14  per  cent,  per  } 

L6«.  per  share  for  the  half-year.     A  dividend  and  bonus  at  . 

per  cent,  will  be  paid  at  the  same  time  on  the  first  and  j 

xnts  of  £10  each  on  the  new  shares,  amounting  together  to  j  . 

•e.  , 

loss  account  from  October  12, 1863,  to  October  10, 1864  : —  1 

ea  of  management — London,  £11,751.  6s.  9rf, ;    Colonial, 
Zealand,  £78,823.  lOs.  3d. ;    together,  £90,574.  17*. ;  to  , 

•roiit  of  the  year  in  reduction  of  the  cost  of  bank  premises, 
barges,  £98,289  173. ;  to  half-year's  dividend,  April,  1864,  \ 

er  annum,  and  a  bonus  of  8  per  cent.,  being  together  14  per 
m,  or  £2.  16s.  per  share  on  old  capital,  £03,000;  to  ditto 
ncluding  £75,000  new  capital,  £68,250 ;  together,  £131,250  : 
undivided  profit,  Oct.  10,  1864,  £154,065.  2^.  bd.  ;  total, 
5d.  Cr. :  By  balance  of  undivided  profit,  Oct.  12, 1863, 
;  by  profit  from  Oct.  12,  1863,  to  Oct.  10,  1864,  after 
rest  on  deposits,  and  income-tax,  provision  having  been 
id  doubtful  debts,  £242,923.  8s.  bd. ;  total,  £383,604. 19s.  bd, 
lance  Account,  October  10, 1864.—  Dr. :  To  specie,  bullion, 
ankers',  £606,586.  10s.  8d. ;  to  government  securities  and 
).  16s. ;  to  guarantee  fund  investments  as  under,  £200,000  ; 
ild.  Consols  purchased  at  90f,  £87,500;  £25,000  Bank 
i  at  210,  £52,500 ;  £60,CKX)  Geelong  Corporation  Debentures,  « 

the  government  of  Victoria,  at   par,  £60,000;    together,  I' 

bills  receivable,  securities  for  advances,  and  other  assets, 
\8.  bd.\  to  bank  premises — in  Australia  and  London, 
d. ;  in  New  Zealand,  £19,200 ;  together,  £169,546.  3s.  9rf.  ; 
[)8  4s.  lOd.  Cr. :  By  circulation,  £382,774 ;  by  deposits, 
.  lid. ;  by  bills  payable  and  other  liabilities,  £754,093.  3s  6(/.; 
5.,  old,  £900,000;  new,  £250,170;  together,  £1,150,170; 
Lud,  £200,000 ;  by  dividend  and  bonus  due  October  11, 1864, 
rofit  and  loss  account,  for  undivided  balfance,  October  10, 
.  2*.  bd. ;  total,  £6,110,998.  4s.  lOd." 

an  reminded  the  meeting  that  when  he  last  occupied  the 
ct  which  most  prominently  engaged  their  attention  was  the 
tal  from  £900,000  to  £1,200,000  by  the  issue  of  new  shares, 
ion  of  the  business  of  the  bank  to  New  Zealand.     In  the  i 

)n  that  period  and  the  present  that  scheme  had  been  carried 
>  instalments  caUed  up  on  the  new  capital  had  been  paid, 
was  not  payable  until  November  last  it  was  not  included  ."; 

sujcounts,  which  were  made  up  to  the  10th  October.     They  ]i 

I  three  branches  in  New  Zealand  ;  one  in  Auckland,  another  ll 

be  principal  town  in  Otago,  and  the  centre  of  the  gold  I 

he  third  in  Christchurch,  the  capital  of  Canterbury.     It  I 

»e  a  matter  of  surprise  to  the  shareholders,  considering  the  ij 

le  branches  had  been  at  work,  to  find  that  during  the  jxjriod  ^i 

B  accounts  before  them  little  or  no  profit  had  accrued  to  the  i« 

is  new  field  of  its  operations,  but  the  directors  felt  great  j 

v 

if 

;'} 

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508 


Bank  of  Australasia* 


gatiBtaotion  to  report  that  the  charges  in  New  Zealand  hml  hei 

by  the  profits,  and  that  the  out-turning  of  the  ye^r  had  not  bee: 

affected    by  the    temporary  unproductiveiiesa    of    a    large 

their  capital.     There  was  a  difference  betwi^^ni  finding  an  old  bi 

new  capital,  and  occupying  new  ground.     Lu  the  one  ease  the  \ 

be  immediate,  but  in  the  other  it  must  be  the  work  of  tiiue^  patien 

severance.     (Hear,  hear.)     It  was  probable  thai  their  progn 

Zealand  would  be  gradual,  but  there  were  circumatance«  cx)u 

their  business  in  that  colony  which  gave  aiisunuice  that  b«fi>t 

would  obtain  a  good  and  a  safe  position  there.     The  resources  o 

were  great,  and  the  development  of  them  by  immigration  anc 

duction  of  capital  promised  an  extensive  and  profitable  sphere 

operations.    It  was  also  to  be  rememberod  that  they  did  not 

Zealand  as  strangers,  but  that  they  carried  with  them  a  gtXM 

a  high  reputation,  earned  by  the  uniform  career  they  had 

thirty  years  in  the  neighbouring  settlements  of  AuBtraiia.     TL 

for  the  year  ending  October,  1864,  it  would  be  Been,  were  £144. 

£126,650  for  the  year  ending  October,  1863,  the  difference  bei 

few  poimds  of  £18,000,  or  equal  to  2  p«r  cent,  upon  the  old  a 

bank,  which  was  the  only  portion  that  could  be  said  to  li£ 

active  employment,  as  during  that  time  the  prooeeib  oi  all  the 

of  the  new  capital,  as  they  came  in,  had  been  immediately  abs* 

initiation  of   new  business  in  New  Zi:iliuid*      The  improv<^ 

business  in  Australia  was  highly  satisfaet^try,  and  enabled  th 

dividend  of  16  per  cent,  upon  the  old  capital  next  mouth,  am 

October.     This  he  thought  was  matter  of  encouragement   foj 

and  conclusive  evidence  that  the  increa.«H3  of  the  capital  wa 

favourable  moment,  and  not  with  the  view  of  id  fusing  life  in  I 

which  showed  symptoms  of  exhaustion,  but  rather  to  carry 

and  energy  which  had  characterised  the  old  buaiuess  into  a 

of  operations.     Had  the  business  in  Australia  been  less  favo 

results  than  in  former  years  there  might  have  been  8ome  qti 

the  prudence  of  increasing  the  capital,  but  in  the  fact  of  the  enlai 

growing  business  of  the  old  branches  they  had  the  best  poaaiblt 

the  wisdom  of  the  course  the  directors  had  recommended,  and, 

time,  the  best  possible  guarantee  of  ita  probable  Buooess.     ( 

the  improvement,  however  great,  was  not  Bufticient  to  enal 

meet  the   new  claims  which  the  additional  cajiital  had  out 

October  dividend  of  this  year,  assuming  it  to  be  at  the  same 

now  declared,  would  be  found  to  include  the  dividend  paid  • 

instalment  of  the  new  capital  in  October  la^t.     The  total  am* 

the  instalments  of  the  new  capital  would,  by  the  end  of  the  [ 

be  £31,500,  or  equal  to  3}  per  cent,  on  the  old  capital^  whereA 

had  only  increased  by  2  per  cent.    But  they  were  in  pfjssewi 

disturbed  balance  of  over  £14,000,  brought  over  from  the  oooo^ 

last,  which  in  former  years  had  been  reserved  to  meat  ooot 

an    exceptional    character,  and  the  ilirectors  did  not  hesita 

it  in  the    present    instance  to  making  up  the  dividencL     \ 

seen    by  the    accounts  before   them    that  they   were    enab 

pay  both  the    dividends    in    1865  at    the   same   rate  of  1^ 

and  carry  over  a    balance    to    the    next  year  of  £1,800, 

very    favoiurable    statement.      On     the    other    hand^  be 

frankly  to  tell  them  that  considerable  losses  had  l>een  sust: 

bank  in  two  of  the  Australiaii  ooloniea,    A  liberal  estimate  oi 


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Sank  (^  Auttralasia. 


509 


and  ample  provision  was  made  for  them  in  the  reserve* 
5  of  the  losses  he  might  mention  that  the  managers  of  two 
had,  in  direct  contravention  of  orders,  involveil  the  estab- 
Einces  to  customers  of  a  class  which  Mr.  Lowe,  the  other  even- 
ie  of  Commons,  very  aptly  described  as  "  dishonest  adven- 
class  which  recent  experience  in  this  country  had  proved  was 
Qtined  to  the  soil  or  climate  of  the  Australian  colonies, 
lowledge  and  circumspection  which  the  making  of  advances 

indicated  was  wholly  imjustitiable ;  at  the  same  time,  con- 
at  extent  of  country  over  which  the  operations  of  the  bank 
3  difficult  to  secure  that  constant,  close,  and  personal  super- 
le  want  of  which  these  disasters  were  often  incident.     In 

to  obviate  or  control  such  indiscretions  on  the  part  of  the 
ture,  the  board  had  determined  to  organise  a  system  of 
jilaut  inspection.  This  would  entail  some  increase  in  the 
s,  but  which  would  be  of  no  importance  when  compared 
ssts  it  would  protect,  and  the  losses  it  would  doubtless 
jr,  hear.)  It  was  proposed  to  give  Mr.  M* Arthur,  the 
spector  of  the  branches,  the  assistance  of  two  sub-inspectors, 
under  the  direct  orders  of  the  superintendent  in  carrying 
ystem  of  insi^ection.  After  referring  with  regret  to  the 
Ir.  Childers,  M.P.,  in  consequence  of  his  appointment  to  a 
nt  office,  but  who,  when,  as  it  was  possible  he  might  be 
2j,  relieved  from  his  ministerial  duties — (a  laugh) — he  hoped 
ed  again  to  join  the  board — and  of  Mr.  Rasch,  who  left  in 

ill-health,  he  said  that  the  only  two  candidates  to  fill  the 
occasioned  were  Mr.  Cattley,  a  director  of  the  London  and 
ank,  a  gentleman  well  known  in  commercial  circles,  and 
idley  Smith,  of  the  firm  of  Smith,  Payne,  and  Co.,  with 
tralasian  Bank  has  been  long  favourably  connected.     In 
moved  the  adoption  of  the  report, 
arquliar  seconded  the  motion. 
a  question, 
m  added  that  the  losses  in  Australia  were  amply  provided 

balance  was  struck. 

asked  for  some  explanation  of  the  charge  for  the  bank 
mdon  and  Australia.  He  believed  the  City  premises  had 
i  in  value,  though  those  in  Australia  might  be  depreciated, 
know  what  was  the  value  of  the  premises,  both  in  the 
1  London,  and  whether  the  £7,000  a  year  which  was  now 
;  profits  on  account  of  premises  would  be  likely  to  continue. 
m  replied  that  the  premises  in  the  colonies  were  re- valued 
and  that  they  were  worth  the  full  value  put  down  for  them. 
K)  at  which  the  premises  stood  in  the  account,  the  colonial 
sented  all  but  £5,000  which  was  the  sum  at  which  the  City 
tood  in  the  books,  the  rest  having  been  written  off ;  and 
no  doubt,  if  they  were  now  disposed  of,  they  would  produce 

least  £35,000.  The  rent  they  received  for  the  acl joining 
>een  increased  during  the  past  year,  and  was  now  between 

a  year, 
er  inquired  what  was  the  amount  of  the  losses  siistained  in 

an  thought  it  better  not  to  state  that,  but  to  leave  the 
lands  of  the  directors,  with  the  assurance  that  they  were 


Digitized  by  VjOOQIC 


510 


Madrid  Bank. 


amply  provided  for.    When  the  whole  amrmnt  was  defiiiitdy 
and  the  whole  question  was  settled,  the  dirfsctorK  might  thin' 
to  state  the  amount,  but  not  at  preBent.     Tlie  queiitifiii  of  cIL 
managers,  by  whose  indiscretion  the  losiE<^   had    arisen,     hi 
lost  sight  of,  and  one  of  them  had  already  gone, 

Mr.  Serjeant  Gaselee  did  not  think  14  per  cent,  was  a 
dividend. 

The  resolution  adopting  the  report  was  put  and  carried  imai 

The  directors  going  out  by  rotation  (tlio  L-bainitnn  and  Mr. 
then  re-elected,  and  Mr.  Cattley  and  Mt.  Martin  K.  Smith  i 
to  fill  the  vacancies  at  the  board,  as  explaiiieil  by  the  chairmar 

A  vote  of  thanks  to  the  chairman  and  direciora  conclud 
ceedingB. 


MADRID  BANK. 


A  MEETIKO  of  the  shareholders  of  the  Mfwirid  Bank,  Limited, 
tlie  13th  March,  at  the  London  Tavern,  in  pursuance  ol  a  cir 
by  the  committee  appointed  by  the  sh art  holders  to  investigal 
of  the  bank.   Mr.  Freebody  took  the  chair. 

The  Chairman  read  the  report  convening  the  meeting,  and  r 
resolutions  passed  at  this  meeting  would  hi-  binding  on  the  sha 
not  on  the  company.  The  report  of  the  committee  waa  read,a] 
of  the  investigation  of  the  accounts  by  Messrs.  Hart  was  refen 
liabilities  of  the  bank  appear  to  amount  t«i  i!*25,843,  to  meet  ^ 
is  cash  at  bankers*  £5,103.  10«.,  and  furniture  £3t>8,  5*.  lOd 
mittee  in  their  report  condemned  the  conduct  of  the  dire  etc  »i 
to  the  unanimous  conclusion  that  the  directors  throughout  t 
reckless  disregard  of  the  interests  of  tht*  shareholders,  tho  m 
negligence  and  want  of  ordinary  prudence  ^md  ft^resight  in  t 
ment  of  the  company's  affairs,  and  wilful  cH»ncealnient  from  th 
of  the  shareholders  of  the  true  but  deplorable  stiite  of  the 
committee  also  recommended  the  sharehtiblcra  to  aup]>urt  the 
taken  by  Mr.  Treheme,  solicitor  on  behalf  of  Mr.  Freeman,  a  i 
for  winding  up  the  aflfairs  of  the  company  in  th©  Court  of  Chai 

The  adoption  of  the  report  was  moved  by  the  Chairman,  a 
by  Mr.  Nutting,  and  carried  unanimously. 

It  was  also  resolved  that  the  expenses  oi  the  committee  inc 
preparation  of  the  report  should  be  paid  out  of  the  funds  of  th 

Mr.  Treheme  stated  that  the  petition  to  wind  up  the  aJTaio 
pany  would  probably  be  heard  on  Saturday  next,  and  moved 
event  of  a  winding-up  order  being  made,  Mr.  Hart  should  ao 
liquidator. 

This  motion  was  also  seconded  and  carried  iinanimoualy. 

It  was  also  resolved  that  the  committee  nliould  watch  the 
the  shareholders  in  any  legal  or  other  proceedings  that  mij 
against  the  directors  for  the  recovery  and  restitution  to  the  5 
of  th^  various  sums  that  might  have  be^n  improperly  ajiplie 
funds  of  the  Madrid  bank ;  and  a  vote  of  tliauke  Ijaving  betm  u 
-passed  to  the  chairman  and  committee  of  investigation,  the 
terminated. 


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511 


BIROTNGHAM  JOINT-STOCK  BANK. 

special  extraordinary  meeting  of  the  shareholders  of  this 
at  the  Excbange  Assembly  Rooms  on  the  14th  March  ;  Mr. 
I  the  chair. 

Dnvening  the  meeting  having  been  read, 
tn  said — "  Gentlemen,  since  our  last  meeting  circumstances 
>f  which  you  are  aware  that  render  it  necessary  to  alter  the 
proceedings  to-day.  The  facts  are  simply  these — an  agree- 
e  with  Messrs.  Attwoods  and  Co.  to  amalgamate  with  the 
nk  provided  the  assets  should  be  furnished  subject  to  the 
3  directors  of  the  Birmingham  Joint-Stock  Bank.  A  list 
submitted  by  Messrs.  Attwoods  and  Co.,  which  was  not 
Che  directors  of  course  were,  as  they  should  be,  anxious  to 
lid  to  enable  Messrs.  Attwoods  to  carry  out  the  arrange- 
•red  the  assets  back  to  them.     An  amended  list  of  assets 

which  I  regret  to  say  we  could  not  accept,  and  the  nego- 
len  broken  off.  Before  moving  the  resolution  which  I  have 
fou,  I  will  only  remark  that  the  rumours  that  have  been 
x)  the  large  amount  which  this  bank  was  to  pay  to  Mes-srs. 
Do.  are  entirely  without  foundation,  the  amount  to  be  paid 
ed  on  a  per  centage  of  the  amoimt  of  the  deposits  from  the 

deposits  and  the  trade  balances  were  to  have  been  made 
3  amount  to  be  paid  to  Messrs.  Attwoods  and  Co. :  it  was 
I.  The  resolution  I  have  to  move  is,  *  that  the  resolutions  of 
iry  meeting  held  on  the  6th  of  February  last,  concerning 
ion  of  this  company  with  the  banking  business  of  Messrs. 
[)ner  and  Co.,  be  rescinded.'  " 
tconded  the  resolution. 

r  wished  to  know  what  the  amount  would  have  come  to  at 
5  proposed. 

m  could  only  say  that  they  were  only  to  pay  for  what  they 
,  and  the  result  would  have  been  an  increase  in  the  dividend 

m  Turner  thought  it  very  indiscreet  at  this  meeting  to  enter 

nation  of  a  proposition  of  this  bank  as  to  their  future  steps 

¥ith  Attwoods'  bank. 

fm  explained  no  question  had  been  asked  on  that  point,  and 

>ose  to  go  into  it  for  the  present. 

in  then  proposed  to  adopt  so  much  of  the  resolutions  of  the 

meeting  as  referred  to  the  increase  of  capital,  as  owing  to 

their  business  consequent  on  the  failure  of  the  Old  Bank  an 

ital  was  necessary. 

m  Turner  and  Mr.  Tindal  suggested  that  the  proper  course 

the  resolutions  altogether,  and  hold  another  meeting  for  the 

capital. 

m  said  this  difficulty  had  now,  for  the  first  time,  presented 
and  he  thought  it  better  now  to  move  that  the  whole  of  the 

rescinded,  and   to  call  the  proprietors   together  again  to 
pital. 

ons  were  then  rescinded. 

an  said  he  would  take  this  opportunity  of  saying,  since  the 
dth   MesHrs.  Attwoods  and  Co.  had  been  broken  off,  they 


Digitized  by 


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! 


512 


London  Bank  of  Mexico  and  South  America* 


-1 


i 


had  received  the  strongest  expressions  of  satisfaction  as  to  the  < 
had  pursued  from  that  firm  itseJf. 

Mr.  Bumaby  moved  a  vote  of  thanks  to  the  directors  and  tl 
(Mr.  Beattie)  for  the  care  they  had  taken  of  the  interests  of  t 
these  negotiations. 

Mr.  Alderman  Turner  seconded  the  motion,  and  said  that 
sagacity  of  their  directors  they  would  have  been  mulct  in  abou 

The  meeting  then  terminated. 


LONDON  BANK  OF  MEXICO  AND  SOUTH  AMEI 

The  adjourned  first  ordinary  general  meeting  of  proprietors  w 
the  14th  March  at  the  London  Tavern ;  Mr.  John  Paterson  in 

The  following  report  of  the  directors  was  taken  as  read  : — 

**  The  directors,  in  presenting  their  first  annual  report,  have  t 
late  the  shareholders  on  the  success  which  has  attended  the  op 
the  bank  from  its  formation,  as  shown  in  the  accompanying  ba 
duly  vouched  for  by  the  auditors.  From  the  statement  of  aooo 
be  seen  that  the  gross  profits,  up  to  the  31st  December  last, 
the  sum  of  £27,315.  8^.,  and  after  payment  of  current  expenses 
ing  forward  to  profit  and  loss  new  account  the  sum  of  £5,B42. 
rebate  of  interest  on  bills  discounted,  but  not  then  due,  there 
balance  of  net  profit  of  £13,405.  10a.  2d.,  which,  with  £52 
balance  of  unappropriated  profit  to  31st  March,  1864,  i 
£13,458.  lOs,  This  sum  the  directors  recommend  should  be  a] 
as  follows :  To  be  written  off  preliminary  expenses,  £1,000  ;  i 
ment  of  a  dividend,  at  the  rate  of  10  per  cent,  per  annum  (Js. 
£6,994  Sa.;  reserve  fund,  £1,000;  remuneration  to  the  dire 
the  formation  of  the  two  companies  in  March,  1863,  to  31st 
1864,  £2,500 ;  leaving  a  balance  of  £1,964.  2$.  to  be  carried 
next  year's  account,  less  amount  required  to  pay  income-tax  an 
fees.  The  accounts  from  the  Bogota  branch  have  only  been  r 
to  the  30th  November  last,  or  within  three  weeks  of  its  esta 
The  directors  have,  therefore,  been  unable  fco  include  the  prol 
branch  in  the  balance-sheet.  The  directors  have  pleasure  in 
more  particularly  to  the  operations  of  the  several  branches : — 

^'  Mexican  Beakch. — This  branch  was  opened  on  the  1st  A 
under  the  superintendence  of  Wm.  Newbold,  Esq.,  whose  enc 
careful  management  has  been  productive  of  the  best  resulti 
directors  are  pleased  to  be  able  to  state  that  the  bank  has  taken 
of  the  first  importance  in  Mexico,  and  has  realised  every  expecl 
had  been  led  to  anticipate. 

**  Lima  and  Callao  Bkanchss. — The  Lima  Branch  was  hs 
by  the  London  and  South  American  Bank,  on  the  amalgamatic 
last,  and  has  progressed  satisfactorily.  The  branch  at  Callao  i 
on  the  21st  November.  With  a  view  to  the  enlarged  operatic 
bank  in  Peru,  the  directors  on  2nd  November  Ust  appoint 
Wallace,  Esq.,  to  be  their  representative  in  that  important  oouj 
reports  and  accounts  from  Mir.  Wallace  give  the  directors  ever) 
believe  that  the  bank  there  will  continue  to  mskke  improved  pro 

"United  States  of  Columbia  Branch. — ^The  directors  k 
satisfaction  in  reminding  the  shareholders  that  in  these  States 
enjoys  special  privileges — Shaving  secured  from  the  Government, 


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tidon  Bank  of  Mexico  and  South  America.  613 

i  very  valuable  concession,  including,  among  other  privi- 
ight  of  issue  of  notes,  to  be  received  as  legal  tender  in  pay- 
38,  taxes,  <fec." 

General  Balance-sheet,  Slst  December,  1864. 

CAPITAL  AND  LIABILITIES. 

int  authorised,  in  20,000  shares  of  £50  each, 
'  to  increase,  £1,000,000.  Shares  issued: — 
5S  of  £50  each,  on  which  £10  per  share  has 

up,  £199,840.  Less  :— Arrears  of  call  of  £o 
le  29th  November  and  29th  December,  1864, 

f'  ... £180,362  10     0 

osits,   bills    payable,    and    other   liabilities, 

5s.  Id, ;  note8  issued  at  Lima,  £10,067.  li.8i.       266,55.5  16    9 

St  on  bills  current       5,842  16     4 

account — Balance  of  profit  to  3 1st  March, 
payment  of  dividend,  £52.  19«.  10c?,;  balance 
n  31st  March  to  Slst  December,  1864,  as  per 
:ount,  £13,405.  10*.  2d 13,458  10    0 


£466,219  13     1 


PROPBBTT  AMD  ASSETS. 

id  at  bankers'      £92,551  15     3 

tu  from  Mexico  and  Lima        12,447  16    6 

258,586     9     5 

current  accounts,  loans,  &c 67,455    9  11 

amount  at  debit  of  this  account          21,800     2  10 

bank  premises,  office  furniture,  &c.  (after  de- 

E)er  cent,  written  oflf  at  branches)       ,  3,241  18    4 


Total  property  and  assets £456,083  12     3 

senses — London  and  South  American   Bank, 
3d, ;  Mexican  Bank,  £3.692.  Us.  Ud.  ',    ex- 
itablishing  branches,  £1,745.  lis,  8d.  ...         10,136    0  10 


£466,219  13     1 


Prqfit  and  Loss  Account  to  Zlst  December,  1864.  j 

;  in  London,  and  branches  at  Mexico,  Lima, 

•••         •••         •••         •••         •••         •••         •••  £8,067  16  i 

Bt  on  bills  current         5,842  16    4  \ 

let  profit 13,405  10    2  ^ 

£27,315    8    0 

m  Itt  April,  1864,  at  London  and  Lima,  and 

igast  at  Mexico £27,315    8    0 

an,  in  moving  its  adoption,  said  that  the  directors  had  ez- 
preaented  the  whole  of  the  accountB  before  this,  but  in  oon- 


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:  { 

•  9 


514 


London  Bank  <^  Mixico  and  South  America. 


'\\ 


■    i 


i-I^-i^D^i 


sequenoe  of  the  mail  not  having  arrived  at  St.  Aniato  when 
for  Europe  left,  they  were  unable  to  include  the  aooounts  fron 
States  of  Columbia.  It  was  estimated,  however,  that  the  pro: 
Bogota  branch  would  be  about  £2,000,  which  would  either  be 
ward  to  the  next  year's  account  or  added  to  the  reserve,  in  adi 
£1,000  mentioned  in  the  report.  The  delay  would,  therefore 
affect  the  present  dividend.  To  avoid  any  inconvenience  « 
delays  of  this  nature,  the  meeting  for  the  future  would,  under 
passed  at  a  previous  meeting,  and  which  woidd  be  submitted  f 
tion  that  day,  be  held  at  a  somewhat  later  period  of  the  y 
was  nothing  in  the  accounts  which  appeared  to  him  to  requir 
planation ;  at  the  same  time  he  should  be  happy  to  answer  ai 
that  might  be  asked  in  reference  to  them.  There  was  one 
capital  account  which  mi^ht  at  first  sight  apx>ear  large,  but  w< 
sidered  small  when  explamed ;  he  alluded  to  the  arrears  of  ca 
The  explanation  was  this  : — The  call  was  due  on  the  29th  ol 
and  the  accoimt  was  made  up  to  the  Slst,  so  that  it  only  gave 
two  days  for  payment,  whereas  it  was  generally  found  that  f 
required  four.  It  was,  however,  satisfactory  to  know  that  wil 
days  £3,000  were  paid,  and  that  the  whole  amotmt  now  outs 
but  a  little  over  £3,000,  £10,000  of  the  £19,000  having  beei 
the  2nd  January.  The  arrears  were  charged  with  interest  a 
10  per  cent.,  so  that  there  was  in  reality  no  loss  to  the  compa 
delay.  The  bank  had  commenced  to  issue  notes  at  lima, 
readily  taken  there,  the  people  preferring  them  to  their  silver, 
brought  and  deposited  with  the  bank  in  exchange.  These  not 
considerable  source  of  profit,  and  they  expected  that  the  issue 
siderably  increase.  The  deposits  up  to  the  present  time  we 
which,  considering  the  short  time  the  bank  had  been  eeta 
regarded  as  very  satisfactory.  The  exchange  operations  bet^ 
and  Mexico  were  very  considerable,  and  produced  a  large  p 
bank.  The  bills  payable  representMl  bills  sold,  and  whidi  w 
by  first-dasB  bills  only,  drawn  upon  the  French  government 
best  houses  in  tx>ndon,  such  as  Baring's,  or  by  other  bills  as  g 
own.  Upon  the  other  side  of  the  account  he  might  mention  that  * 
in  transitu  from  Mexico  and  Lima"  at  the  date  at  whidi  the  bi 
was  made  up  had  since  arrived,  and  had  been  weU  sold,  at  60d,  to 
bills  receivable  represented  bills  bought  against  their  own  bills 
he  had  said,  the  bills  which  the  managers  had  taken  in  exchanj 
of  the  first  class.  Of  the  next  item,  £67,455  balance  due  on 
ooimts,  loans,  <fec.,  a  good  portion  was  represented  by  silver  c 
other  produce,  in  which  always  a  good  margin  was  insisted  nj 
risk.  They  had  laid  down  a  rule  that  no  securities  but  comn 
of  the  best  character  should  be  taken  in  the  first  instance,  bu 
to  the  discretion  of  the  managers  to  strengthen  such  secuntiea 
warrants  or  otherwise,  always  keeping  the  rule  in  view  as  tl 
upon  which  they  were  to  proceed.  In  Mexico  the  system  of  d] 
upon  commercial  biUs  they  had  had  to  introduce,  the  practice 
viously  been  to  obtain  advances  on  produce.  The  managers  bs 
been  successful  in  introducing  the  system  of  advancing  on 
bills,  strengthening  them  by  other  securities.  They  had  not  ] 
the  accounts  of  the  Bogota  branch,  but  to  meet  the  £21,800  wh 
its  debit,  representing  the  amount  which  it  had  drawn  for, 
remittances  and  drafts  on  the  way.  As  to  the  preliminazy  expc 


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yndon  Bank  of  Mexico  and  Sauth  America.  515 

rted  to  as  somewhat  large,  it  must  be  borne  in  mind  that 
tically  two  banks,  the  London  and  South  American,  whose 
[^nses  stood  at  £4,697,  and  the  Mexican,  whose  preliminary 
?n  £3,692,  and  in  addition  there  had  been  £1,745  incurred 
the  branches,  representing  passage  money  and  other  pay- 
Y  before  they  oould  make  a  start.  After  quoting  the  amount 
the  Lima  and  Mexico  branches  up  to  the  28th  of  January, 
«  of  profit  divided  and  carried  forward,  as  shown  in  the  '/ 

dicating  the  satisfactory  and  rapid  progress  the  bank  was 
eluded  by  submitting  the  usual  confirmatory  resolution. 
M.P.  (director),  seconded  the  motion.  ' 

)r  objected  to  the  proposal  in  the  report  to  vote  £2,500  for 
■smuueration. 

n  said  that  would  be  the  subject  of  a  separate  resolution, 
reholder  asked  for  explanations  as  to  the  sixteen  unissued  ) 

L ,000  proposed  to  be  set  aside  to  reserve  he  thought  too  small,  * 

i  debts  being  in  foreign  countries  always  very  great.  The 
sposits,  and  other  liabilities  were  classified  together,  whereas 
1  the  bills  payable  should  be  stated  separately.  He  wished 
kudit  or  check  there  was  on  the  accounts  at  the  several 

r 
•eholder  inquired  as  to  the  principle  on  which  the  directors 
bermining  what  were  preliminary  expenses,  and  what  were 
5.     The  directors' remuneration,  which,  as  suggested,  was  -J 

nly  £1,250  a  year,  he  hoped  soon  to  see  increased.  (Hear, 
.he  whole,  he  regarded  the  report  as  satisfactory,  and  was  ;i 

it  the  position  in  wliich  the  bank  stood  in  the  market, 
►ns  were  put,  whether  there  was  any  check  on  the  securities 
?  whether  there  was  any  intention  of  calling  up  more  than  I 

>er  share   on    the  capital,    it  having  been  stated  in  the  ■ 

no  more  than  £12. 10s.,  or  one  fourth  of  the  capital,  would 
The  shareholder  who  put  this  inquiry  observed  that  if  they 
up  capital  they  would  have  very  little  prospect  of  main-  •! 

Lividend.     The  result  of  the  last  call  was  to  reduce  the  value  i* 

^  per  cent.  While  Mexico  was  in  such  an  unsettled  state  it 
;aJl  up  capital.  i 

n,  replying  generally,  stated  that  all  the  securities  abroad 
)le  key,  one  being  held  by  the  manager,  and  the  other  by 
It  would  be  satisfactory  to  send  over  an  official  auditor 
the  several  branches,  but  that  would  be  too  expensive  ;  it  • 

send  out  an  inspector  over  all  the  branches,  who  would  be  '' 

munication    with    the   directors.     The  security    of    the  "; 

anies  was  required  for  all  the  offices.     The  board  separated  i 

»  from  preliminary  expenses.     Safes,   furniture,   vaults,  . 

led  as  property,  and  10  per  cent,  was  written  off  every  year 
]'he  expense  of  sending  such  things  up  the  country  was  i 

aiinary.  The  directors  considered  the  sum  set  down  for  their  I 

DUld  by  no  means  over  pay  them .  They  did  not  intend  to  work  I 

it,  and  it  was  for  the  shareholders  to  say  whether  they  were  j' 

ed,  and  what  remuneration  they  should  have.  During  the 
bank  had  been  in  operation  they  had,  he  thought,  done  well.  '* 

ould  not  object  to  add  a  little  more  to  the  reserve,  and  to  * 

lend  5  but  they  thought  it  would  be  more  agreeable  to  the  *  J 

tiave  in  this  the  first  year  some  return  for  their  capital,  :l 


Digitized  by  ^iOOQIC 


616 


London  Bank  of  Mexico  and  South  America, 


and  though  he  did  not  anticipate  it,  it  was  necesaary  that  thei 
a  small  reduction  in  the  dividend  on  a  future  oocasion. 
amount  called  up,  he  was  himself  iudividually  against  calli] 
than  the  £12.  lOs.  a  share ;  but  he  could  not  give  any  pL 
subject,  or  promise  that,  if  the  necessity  should  arise  in  the 
the  business  of  the  branches  abroad,  £15  a  share  would  not  I 
But  it  would  be  that  necessity  alone  that  would  induce  then 
further  call. 

A  Shareholder  iuquired  the  reason  that  the  calls  had  be 
rapidly,  and  especiaUy  what  was  the  necessity  for  the  last  call 

The  Chairman  said  the  reason  was  the  necessity  of  pr 
braoches  with  sufficient  capital  to  work  the  business.  Th< 
large  institutions  abroad,  and  £25,000  of  working  ci^ital  for 
no  means  too  large.  They  could  not  have  their  branches  abr 
providing  large  establishments,  and  if  they  had  not  sufficien 
work  them  the  expense  of  those  establishments  would  mater 
the  profits.  With  regard  to  the  depreciation  in  the  market 
shares,  there  had  been  a  depreciation  in  all  property  of  the  ] 
the  last  few  days. 

Mr.  Flux,  the  solicitor  of  the  company,  as  a  shareholder,  re: 
the  value  of  the  shares  in  the  market  depended  in  a  great  mi 
the  confidence  the  shareholders  themselves  exhibited.  Tl 
ought  not  to  be  influenced  by  the  fluctuations  in  the  i 
in  making  the  recent  call  they  had  only  shown  that  the 
the  bank  was  now  progressing  more  rapidly  than  had 
pated,  and  that  more  capital  was  needed  to  carry  it  on.  For 
had  bought  100  additional  shares  recently,  and  although  the  o 
had  fallen  since,  he  meant  to  hold  them  as  an  investment, 
the  time  the  directors  had  been  working  for  the  Company, 
years,  £2,500  for  their  remuneration  was  not  a  farthing  too  m 

A  Shareholder — ^Have  you  made  any  bad  debts,  and  if  i 
amount? 

The  Chairman — We  have  only  one  bill  returned — ^the  an 
£500.  It  is  accepted  by  one  of  the  first  houses  in  the  City, 
Jected  that  there  has  been  some  irregularity  in  the  drawing — 
it  is  a  forgery.  It  is  in  the  lawyer's  hands,  and  he  informs 
shall  recover  the  amount. 

The  report  was  then  put  and  unanimously  adopted. 

A  resolution,  according  £2,500  to  the  directors  for  their  se 
the  end  of  last  December,  was  also  unanimously  carried, 
dividend  of  7s.  per  share,  or  at  the  rate  of  10  per  cent.,  fre 
tax,  payable  on  and  after  the  29th  MarclL  The  auditors  w< 
appointed,  and  £50  voted  for  their  services,  after  which  t 
was  made  special,  and  the  resolution  passed  at  a  previous  me 
the  second  week  in  April  as  the  latest  date  for  holding 
meetings,  and  making  the  qualification  of  directors  50  share 
20,  the  nominal  value  of  the  shares  having  been  reduced  h 
£50,  was  confirmed. 

The  usual  compliment  to  the  chairman  and  directors  oo 
proceedings. 


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617 

ENGLISH  AND  SWEDISH  BANK. 

ary  general  meeting  of  the  shareholders  was  held  at  the 
.,  on  the  14th  March.     The  chair  was  occupied  by  Mr.  John 

mvening  the  meeting  was  read  by  Mr.  W.  H.  Clemow,  the 

J  following  report  and  accounts  were  taken  as  read  : 

a  of  ^e  bank  was  commenced  in  temporary  offices  at  Stock, 
h  of  Februaiy,  and  at  Gothenburg  on  the  24th  of  March 
;  until  the  20th  of  June  tliat  the  branch  at  Stockholm' 
open  its  permanent  premises  and  transact  general  banking 
it  at  Gothenburg  the  permanent  offices  have  only  been 
the  17th  of  January  of  the  present  year.  Their  progress 
impeded  by  the  legal  restrictions  in  Sweden,  proliibiting  a 
aterest  than  6  per  cent.  That  law  has  since  been  repealed, 
low  free  m  Sweden  :  the  new  law  did  not  come  into  opera- 
ember  last.  The  gross  profits  on  the  brink's  operations 
15,901.  13s.  6d.,  which,  after  paying  current  expenses  and 
bate  of  interest  on  bills  not  due,  leaves  a  balance  avail- 
'nation  of  £12,912.  lis.  3d.  Of  this  sum  the  directors 
ropriate  £1,685.  Oj.  6d.  in  reduction  of  preliminary  ex- 
11«.  to  the  payment  of  a  dividend  of  ds.  per  share  free  of 
carrj^g  forward  the  sum  of  £2,224  to  new  account." 

ajice-sheet  from  the  formation  of  the  Company  to  the  3\st 
December^  1864. 

il— 19,519  shares  of  £50  each,  £975,950  ;  capital 

►  19  shares  at  £15  each,  £292,785;  leas  calls  in 

•",       * £292,185 

and  other  accounts         91,281 

346,734 

...         ...         ,„         ,,,         „,         ,,,         ^^^  2  579 

balance  as  per  account *,\*  12,912 


0 
7 
1 

19 
11 


£745,692  19     9 


luteal]      £16,919     0  10 

loans,  &c....         713,060    4     7 

lumiture,   and  other    property,  in   London, 

nd  Gothenburg 9,028  13  11 

°^^           6.685    0    5 


PROFIT  AJn>  LOSS  ACCOUNT.  , 

,  including  rent,  salaries,  directors*  remune- 
n  London,  Stockholm,  and  Gothenburg 

•iation  of  balance,  vie. •  the  reduction'of  pre- 
enses,  £1,685.  Oi.  5d, ;  the  payment  of  divi- 
ner share,  free  of  income-tax,  £8,783.  11*.; 
thereon,  £219.  lis.  94.;  carried  forward  to 
,  £2,224.  8#.  Id. 


£745,692  19  9 


£10,469  2 
2,579  19 


12,912  11  3 
£25,961  13  6 
..£25,961  13  5 


Digitized  by 


<  Google 


518 


^1 


1 

1  ■ 

V?  V^'l'S-.- 


English  and  Swedish  Bank, 


The  Chairman — Qentlemen,  it  becomes  my  duty  to  move  i 
aud  accounts  now  presented  be  received  and  adopted ;  and  i 
this  is  the  first  occasion  the  directors  have  had  the  pleasoj 
their  proprietary,  I  think  it  will  not  be  unfitting  to  give  a  sh 
our  proceedings  since  the  establishment  of  the  bank.  It  is  i 
in  doing  so,  that  I  should  be  in  any  degree  an  apologist  for  t] 
of  esta^ishing  such  a  bank ;  that  point  was  gone  into,  you 
remember,  in  a  prospectus  which  was  written  by  a  party  very 
do  so,  and  which  made  out  pretty  clearly  that  the  trade  of 
very  much  increased,  especially  with  this  country,  whilst 
accommodation  had  not  increased  ir.  proportion.  It  was  tib 
inference  that  there  was  room  for  a  new  bank,  if  prudently  o 
if  it  comprised  those  improvements  which,  we  think,  the  E 
of  banking  has  over  similar  institutions  in  Sweden.  With 
was  the  first  object  of  the  promoters  of  thLs  bank  to  get  t 
gentlemen  of  standing  in  Sweden  to  form  local  committees, 
not  only  give  a  sort  of  sanction  aud  confidence  in  the  town 
and  Gothenburg,  but  also  be  a  committee  of  coimsel  and  : 
managers  who,  as  Englishmen,  would  not  only  be  unacquai 
language,  but  also  strangers  to  the  commercial  community 
have  succeeded ;  the  names  of  the  gentlemen  are  stated  in  tl 
you  are  acquainted  with  them.  The  next  thing  which  cai 
directors  was  the  appointment  of  managers.  This,  I  ma; 
flattering  ourselves,  we  took  a  ffreat  deal  of  pains  about,  as 
important  step.  We  advertised  and  made  inquiries,  and  had 
views  with  candidates,  and  it  ended  in  our  selecting  two  g 
had  had  great  experience  in  the  Ei^glish  system  of  bankin 
Bank  of  England,  and  the  other  in  the  National  Bank  of  IS 
also  sent  out  experienced  accountants,and  the  care  and  attentic 
have  been  repaid  with  success.  (Cheers.)  There  was  a  further 
important  one — to  find  suitable  premises  at  Stockholm  au(j 
1'his  was  no  easy  task,  for  there  was  no  great  choice,  but  eveni 
ceeded  in  selecting  eligible  premises ;  but  we  have  to  regret  i 
which  took  place  before  we  could  take  possession,  owing  to  the  1 
leases,  and  also  to  our  having  to  adapt  them  to  the  requiremeo 
ness.  We  had  also  to  contend  with  the  difficulty  arising  from  th 
interest,  which  was  limited  to  6  per  cent.,  whilst  money  hei 
part  of  the  year,  was  at  7,  8,  and  even  9  per  cent.  Thi 
difficulty  which  stood  in  the  way  of  success  at  the  beginnini 
but  that  has  been  got  over  by  the  repeal  of  the  law.  There  i 
consideration  afiecting  our  business — ^that  every  new  insti 
take  time  to  make  its  way.  It  ia  some  time  before  the  bei 
offers  to  the  community  will  be  appreciated,  and  before  it  de^ 
but  notwithstanding  all  these  difficulties,  I  think  the  direct 
confidence,  congratulate  their  fellow -proprietors  upon  a  vei 
amotmt  of  success.  (Cheers.)  They  propose  to  divide  am 
per  cent.,  or  ratlier  at  the  rate  of  4§  per  cent,  on  the  mon< 
You  will  also  remark  thftt  a  very  considerable  sum  has  be 
for  preliminary  expenses,  whilst  a  still  larger  sum  is  plao 
account.  I  believe  I  have  now  stated  all  that  the  case  requii 
I  would  say,  before  sitting  down,  that  it  was  the  anxious 
directors  (as  no  doubt  it  will  be  yours)  that  the  bank  shoui 
upon  a  firm  and  stable  basis,  and  its  business  conducted  upc 
which  experience  has  shown  to  be  safe ;  and  that  in  this  m 
erect  an  institution  of  lasting  and  stable  prosperity.     (Ch< 


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EntjlUh  and  Sicediah  Bank, 


519 


f  any  proprietor  "wiwhes  for  any  information,  or  asks  any 
all  be  happy  to  answer  him  to  the  best  of  my  ability.  I 
that  the  report  and  accounts  bo  adoi>ted  by  this  meeting. 

drew  attention  to  the  paragraph  in  the  report  in  which  the 

I  they  were  happy  to  iuform  the  shareholders  they  antici- 

rom  the  recent  frdlures.     He  believed  that  the  directors 

rities,  but  at  the  same  time  he  should  like  to  ask  wliether 

rere  safe  and  tangible.     There  was  an  amount  of  between 

50,000.     Was  that  safe  and  secure  \ 

ai :    It  is  a  proper  and  important  question  which  the  pro- 

ed.     I  think  we  may  answer  generally  that  wo  are  fully 

reference  to   one   account,  which   perhax)s   the   proprietor 

at  of  Mr.  J.  Holm — we  believe  we  shall  have  to  return  a 

J,     That  is  the  report  we  got  from  Stockholm,  and  we  are 

eat  extent,  to  see  with  their  eyes. 

quired  whether  the  directors  had  any  intention  at  present 

rther  call. 

tn  replied  that  the  directors  had  no  immediate  intention  of 

but  of  course  they  would  do  so  whenever  the  interest  of  the 

X. 

ere  said  that  he  should  have  much  pleasure  in  seconding 

the  report. 
on  said  that  there  should  have  been  20,000  shares  issued, 
3r  actually  dis^wsed  of  was  iy,519,  and  he  would  like  to 
was. 

dd  that  when  the  shares  were  originally  allotted  the  boards 
nd  Gothenburg  had  not  been  formed,  and  the  directors  were 
serve  a  certain  number  of  shares  to  allot  to  the  gentlemen 
appointed  there.  Some  gentlemen  had  not  taken  up  their 
of  the  shares  reserved,  and  that  was  the  reason  why  they 
lotted.  The  directors  would  have  sold  them,  but  they  were 
ount,  and  it  was  thought  better  to  hold  them  over  for  the 
apposed  now  the  shares  had  better  remain  as  tliey  were 
lold.  (Hear,  liear.) 
3r — I  should  advise  their  not  being  sold,  except  at  par  or 

on  said  he  was  i)erfectly  satisfied  with  the  exi>lanation,and 

ae  had  no  doubt  that  whenever  the  directors  thought  proper 

the  shareholders  would  willingly  meet  it. 

>n  was  carried  unanimously. 

in — I  now  beg  to  move  that  a  dividend  of  93.  per  share 

-tax)  be  paid  to  the  shareholders  out  of  the  net  profits  of 

5  31  st  of  December  last,  and  that  this  dividend  be  payable 

e  21st  day  of  March. 

)n  was  seconded  by  Mr.  Tot  tie,  and  carried  unanimously. 

\  directors,  Mr.  J.  A.  Hankey,  Mr.  W.  Tottie,  and  Mr.  L. 

B  then  unanimously  re.electe<l,  the  chairman  speaking  in 

8  of  the  services  which  Mr.  Tottie  had  rendered  the  bank. 

on  of  the  chairman,  the  auditors,  Messrs.  Cooper  Brothers 

Lad  been  elected  by  the  directors),  were  now  elected  by  the 

nd  their  remuneration  fixed  at  £100  per  annum. 

m  of  Mr.  Hopkinson,  seconded  by  Mr.  Graves,  a  vote  of 

orded  to  the  chairman  and  directors,  and  the  meeting  broka 


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620 


Sydney  City  Bank, 


BANK  OF  QUEENSLAND,  LIMITED. 

Ak  extraordinary  general  meeting  of  the  sharehoMers  of  tb 
lield  at  the  offices  of  the  company,  26,  Old  Broad  Stretst,  on  J 
the  chairman,  Sir  Joshua  Kowe,  O.B.,  presiding,  wliou  a  se 
judicious  special  resolutions  proposed  by  the  directoi-s,  renpec' 
ol)jectionable  clauses  in  the  articles  of  associatiou,  were  agi 
passed.  The  changes  are  to  the  following  effect,  Damely,  to 
power  of  increasing  the  capital  of  the  company  from  ilie  direi 
sliareholders ;  to  determine  an  increased  qualificatiuu  of  the  i 
reduce  the  maximum  amoimt  of  directors'  remuneration  frou 
£2,000  per  annum,  and  to  transfer  the  power  of  app.>inting  ai 
the  directors  to  the  shareholders. 

The  Ohairmao,  in  answer  to  an  inquiry,  stated  that  the  bus 
bauk  was  making  satisfactory  progress,  and  he  could  givi 
evidence  of  this  than  by  stating  that  since  last  geiitTal  moeti 
of  about  five  months,  the  deposits  had  increased  upward k  of  I 
and  circulation  of  notes  78  per  cent. 

A  vote  of  thanks  was  passed  to  the  chairman,  and  the  di 
terminated. 


SYDNEY  CITY  BANK, 

The  second  half-yearly  meeting  of  the  City  Bank  (Sydney) 
tlie  banking  house  of  the  company,  Sydney,  on  the  10th  of  Ja 
J,  L.  Montefiore  in  the  chair. 

The  following  report  was  read  : — 

"  The  directors  have  much  satisfaction  in  submitting  to  the 
the  following  report  of  the  business  of  the  bank  for  the  half 
3l3t  December,  1864. 

Gross  profits,  less  interest  and  exchange  paid ...       £ 

Current  expenses,  inclading  fees  to  directors  and  auditor?, 
salaries,  rent,  stationerv,  &c.,  £3,150.  IZs.  \d. ;  5  per  cent, 
of  cost  of  repairs  and  alterations  to  bank  pit  miscs, 
£226.  4i.  2d.;  rebate  on  bilU  discounted  current  at  3]Bt 
December,  1864,  £3,007.  2s.  4d. ;  interest  accrued  on  fixed 
deposits  not  yet  matured,  £2,723.  85.  2d 

Total  of  net  profits •        •••        ,» 

Balance  of  undivided  profits  at  30th  June,  1864 

Showing  a  present  balance  at  credit  of  profit  and  loss  of      ...         i 

Which  sum  the  board  recommend  to  be  appropriated  in  tbo  fol- 
lowing manner,  viz. : — Addition  to  reserve  fund,  being 
1-lOth  of  net  profits,  in  terms  of  the  deed  of  setiNmi^nt, 
£912  3*.  6(i. ;  dividend  for  half-year  at  the  rate  of  B  per 
cent,  per  annum,  £8,000  ;  leaving  a  balance  of  iin  'ivided 
profits  to  be  carried  forward  to  next  half-year,  £834.  L  4  j.        i 

"  It  will  be  perceived,  on  comparing  the  above  statement  vi 
t^e  previous  half-year,  that  the  progress  of  the  b^mk  in  ever 


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Sydney  City  Bank. 


521 


s  fully  realised  the  most  sanguine  expectations.  The  in- 
imber  of  current  accounts  has  been  60  per  cent.,  and  in  the 
1  over  80  per  cent.  In  acknowledging  these  gratifying  re- 
e  due  in  a  great  measure  to  the  energy  of  tlie  manager, 
kctive  supj>ort  of  a  few  of  the  shareholders,  the  directors 
nore  hearty  co-operation  of  all  the  proprietary  in  not  only 
jitors  themselves,  but  in  using  their  influence  with  others, 
s  the  continued  prosperity  of  the  bank  will  be  secured.  The 
be  payable  at  the  banking  house  of  the  company,  on  and 
y,  11th  January." 

Balance-sheet,  ^\st  December^  1864. 


:ion 

ler  liabilities 


nd  furniture        

and  other  debts  due  to  the  bank 


PKOFIT  AND   LOBS  ACCOUNT. 

8 — including  fees  to  directors  and  auditors, 

it,  stationery,  &c.,  &c.  ...  

being  5  per  cent,  of  the  cost  of  repairs  and 

iiscountcd  current  at  3 1st  December,  1864  ... 

on  fixed  deposits  not  yet  matared     

e  half-year  at  the   rate  of  8  per  cent,   per 

-vefund    ... 

rided  profits        


rided  profits  at  30th  June,  1864  

>r   period   ended   Slst   December,   1864,  less 
.  exch  ange  paid  ding  same  period 


Eeserve  Fund, 

nd  doubtful  debts  to  date  written  off  in  accord- 
le  32nd  clause  of  the  2nd  part  of  the  deed  of 


£200,000  0 

34,920  0 

222,753  18 

834  14 

1,400  19 

0 
0 
1 
0 
0 

£459,909  11 

1 

£54,276  10 

4,071  14 

401,561  6 

1 

2 

10 

£459,909  11 

1 

£3.150  13 

226  4 
3,007  2 
2,723  8 

8,000  0 
912  3 
834  14 

1 

2 

4 
2 

0 
6 
0 

£18,854  6 

3 

£625  2 
18,229  2 

11 

4 

£18,854  6 

3 

£11  4 
1,400  19 

6 
0 

£1,412     3    6 


Digitized  by 


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522 


Bank  of  British  Columbia. 


Cr. 


Balance  from  last  half-year  

Amount  from  profit  and  loss,  being  1-lOth  of  net  profits 


The  following  resolutions  were  then  unanimonsly  paKsed  :— 

"  That  the  report  now  read  be  received  and  adopted, 

"  That  the  following  five  gentlemen  be  declared  reelected  s 

of  this  bank,  viz. :  J.  L.  Montefiore,  Esq.,  F.  H.  Dangjir,  Ej^i-j  W 

Esq.,  A.  Thomson,  Esq.,  and  S.  A.  Jo.seph,  Esq. 

"  That  Henry  T.  Fox,  Esq.,  be  elected  an  auditor  ••£  the  banl 
"That  the  cordial  thanks  of  the  meeting  be  prefteutcd  to  th 

find  directors  for  their  valuable  services  to  the  bank  during  thi 

year. 
"  That  the  thanks  of  the  meeting  be  given  to  the  manager  f 

conduct  in  the  management  of  the  bank.'' 


BANK  OF  BRITISH  COLUIVIBIA. 

The  following  is  the  report  of  the  directors  of  the  Bi\iik 
Columbia,  to  be  presented  at  the  general  meeting  to  be  held  at 
Tavern,  on  the  4th  of  April : — 
"  The  directors,  in  submitting  their  report,  have  to  coDgratulat 
liolders  on  the  success  that  has  continued  to  attend  the  transac 
bank.  From  the  accompanying  statement  of  accounts  it  ^\iM  l 
after  paying  current  expenses  and  deducting  rebate  of  interest 
<lue,  the  amount  of  undivided  profit  at  the  conclusion  nf  tin 
ended  Slst  December  last,  was  £18,680.  12s.  Id.,  wliioh  the  di 
^x)se  to  appropriate  as  follows,  viz. : — £8,333.  65.  %d.  in  payraei 
I  lend  at  the  rate  of  10  per  cent,  per  annum  (beinc;  for  wix 
£125,000,  and  for  four  months  on  £62,500,  paid  Isfc  Scjpte 
£7,000  to  be  added  to  reserve  fund,  which  will  bt'  thereby  i 
£13,000  ;  leaving  £3,347.  5«.  5d.  to  be  carried  forward  to  the  ci 
year.  The  directors  who  retire  by  rotation  are  Mr.  Jlackenzi 
nud  Mr.  Anderson,  but,  being  eligible,  they  offer  themselves  for 
The  proprietors  will  have  to  elect  auditors  for  the  ensuing  ye^] 

Statement  of  Liabilities  and  Assets  at  the  London  OJke  and  Bra 

December  t  1864. 

UABILrriES. 

Capital  paid  np £\\ 

Kescrve  Fund         , 

Deposits,  notes  in  circulation,  bills  payable,  and  other  liabilitiea  T, 

Balance  of  profit  and  loss  on  the  31  st  December,  1864          „,  ] 


ASSETS. 

Specie  and  bnllion  in  hand,  and  cash  at  bankers* 
Bank  premises,  furniture,  and  other  property  ... 
Bills    discounted,     bills    receivable,    government 
securities  


aii<l    other 


£4! 


£i 


U 


£4S 


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ilian  Mortgage,  Land  and  Finance  Company.       523 


PBOFIT  AND   LOSS  ACCOUNT. 

Z\st  December,  1864. 

rd  October,  18(i4 

to  reserve  fund 

December,  18G4,  including  rent,  tiixes,  salaries, 
2es,  and  all  other  expenses  at  head   office  and 
••■       •••  ■     •••       *••       «•■       •••       •••       •••       ••• 

;  3l8t  December,  1864 


£5,000 
4,000 


8,432 
18,680 


£36,112  13  1 

iriation,  -viz.,  dividend  at  the  rate  of  10  per  cent, 
being  for  six  months  on  £125,000,  and  for  four 

:<)2,500,  paid  1  St  September  last)     £8,333  6  8 

jplied  in  augmentation  of  res^erve  fund    7,000  0  0 

rried  forward        3,347  5  5 


£18,680  12     I 


6 


;  and  loss  account,  brought  from  30th  Juno,  1864  £11,105  16 

nths  ending  31st  December,  1864,  after  deducting 

erest  on  bills  not  due ...        ...       ..•       25,006  16     7 


£36.112  13     1 

£18,680  12  1 

£18,680  12     1 


[,ALIAN  MORTGAGE,  LAND  AND  FINANCE 
COMPANY,  LIMITED. 

eeting  of  the  shareholders  of  this  company  was  held  on 
h,  at  the  London  Tavern ;    T.  M.  Mackay,  Esq.,  in  the 

J.  Long,  the  secretary,  read  the  notice  convening  the  meet- 
Llowing  report  of  the  directors  was  taken  as  read  : — 
)rs  feel  much  gratification  at  being  able  to  submit  a  state- 
fairs  of  the  company  at  the  expiration  of  the  first  year  of 
and  to  present  prospects  for  the  future  which  must  be 
;he  proprietors.  The  annexed  statement  of  receix)ts  and 
s  an  available  balance  for  dividend  of  £3,0^1.  19s.,  which, 
;  the  interim  dividend  of  £6  per  cent,  paid  to  the  proprietors 
and  writing  otfiiS  per  cent,  from  the  preliminary  expenses, 
further  payment,  making  up  a  dividend  of  £6  per  cent,  for 
the  31st  of  December  hist.  It  is  apparent  that  in  the  case 
whose  field  of   operation  is  so  distant  as  Australasia,  a 


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I 
izedbyCEoOQle 


524      Australian  Mortgage,  Land  and  Finunce  Compattt/. 


lengthened  period  must  necessarily  be  occnpic^I  in  the  estahlbhrne] 
efficient  local  machinery.  On  this  account  tlie  result  of  a  §rs 
working  cannot  be  taken  as  a  fair  criterion  of  it»  ultimatt!  prol 
addition  to  the  special  agency  established  in  Queeus^lan^l,  tlte  d 
have  made  arrangements  for  investing  capit^d  id  New  Zc^'ilaitd, 
now  negotiating  for  commencing  business  in  either  partu  of  the  An 
colonies.  They  have  thus  given  their  attention  ti>  never^l  dint  in 
of  operation,  and  have  opened  up  ground  for  future  businesB.  Tt 
tors  have  also  assisted  in  the  formation  of  tii**  Central  and  ^ 
Queensland  Land  Company,  for  the  purchase  mul  renal  e  ni  land 
colony,  which  will  be  carried  on  in  connectiou  witli  this  cumpjui 
directors  have  to  report  that  they  have  concluded  an  agreement  ^ 
firm  of  Messrs.  R.  Gibbs  and  Co.,  of  London,  and  Mt^ssra.  GibV>s, 
and  Co.,  of  Melbourne  and  G^long,  for  incorporating  with  this  com] 
business  hitherto  carried  on  by  those  firms,  c<>nsiHting  of  !wlvanc< 
curity  of  real  and  leasehold  estate  andstations  in  the  ctilony  i if  V'ictoi 
business  has  produced  for  years  past  a  large  and  ^iife  pro^t  upon  t1i 
employed ;  and  the  directors  are  satisfied  that  the  aiTaiigeuieut 
into  will  have  the  most  important  bearing  upon  the  future  int^res 
company,  and  will  be  productive  of  the  greatest  advantjiges.  M 
Gibbs  and  Co.  receive  payment  for  the  tranaf -r  of  their  buMiii*3e 
in  shares  of  the  company,  thus  affording  every  eanvejit  of  their  co 
in  the  union  of  interests  thus  effected.  Mr.  Richard  Gibks,  fch 
partner,  has  joined  the  board.  A  second  issiui  of  2(}^(H)0  Bharea 
made,  of  which  15,000,  with  £3  credited  as  paid,  will  Im>  re^iuired 
purpose  of  this  arrangement,  and  it  is  proponed  that  tlie  remainij 
should  be  offered  pro  raid  to  the  proprietors. 


Dr. 


Balance-sheet,  December  Zlst,  1364. 


Capital  subscribed  £500,000,  paid       

Debenture -holders  and  other  mvestors 

Bills  payable        , 

Debenture  and  mortgage  interest        „ 

Sundry  creditors 

Rebate  of  interest  

Profit  and  loss  as  per  statement,  £3,631.  19«. ;  less  iiUcrin] 
dividend,  £1,250      ,, 


£60.0' 
53,2: 
35,n< 

9 
2,2; 

2,3i 


£]54,9; 


Cr. 

Cash  at  bankers*,  £969.  17«.  Id. ;  balance  of  petty  cash  in 
hand,  £2.  16*.  9d.  

Cash  at  Queensland,  balance  on  31st  October 

Bills  receivable  ,. 

Investments  in  Queensland  and  elsevrhere 

Sundry  debtors 

Purchases  of  land  in  Queensland        , 

Office  furniture,  London,  £133.  175. 2d, ;  ditto,  ditto,  Quecus- 
land,  £129.  0*.  6d.  

Preliminary  expenses 


9: 

13,2: 

80,&( 

51,a< 

2,3! 

7« 

£154,9S 


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tgage,  Land  and  Finance  Company.  523 

^oss  account  to  3\st  December,  1864. 

3,S16  \S  9 

iland,  to  31st  October 520  19  I 

merest         l,r,:)i  is  3 

2,222  1  2 

8,031  19  0 


association,  &c.. 


£11.<*43     9 

3 

ll.G'.n    12 

37     7 

114  10 

3 
0 
0 

£11.H43     9 

3 

3,031    VJ 
1,2.30     0 

0 

0 

£2.3<<l    19 

0 

i  in  August 


:  The  report,  gentlemen,  which  ia  presented  to  ; 

lape  of  an  outline,  which  I  will  en  <  lea  von  r  to  fill  ^ 

succinctly  and  briefly.     In  the   first  place,  I  \ 

^atnlating  yon  npon  the  Anstralian  Mortgafre,  ' 

ny,  and  I  state  it  not  only  fr«»m  my  own  couvic- 
on  of  all,  that  it  is  not  only  a  sound,  a  whf>le- 
rise,  but  it  is  one  that,  althouiih  launches!  at  a 
citement,  will  stand  the  test  of  time.  (Hear, 
tant  a  8Y)here  of  operations  as  ours  is  we  could 
?cted  to  do  much.  It  is  just  twelve  months  ago 
ZJlark,  went  to  the  colony.  He  did  not  arrive 
and  it  was  summer  iK'fore  he  began  his  opera- 
ve  only  a  record  of  six  months  of  his  operations. 

0  in  Australasia  there  are  none  of  those  execu- 
ey,  at  all  events  of  making  imaginary  wealth, 

1  during  the  liist  year.  I  l>elieve  that  there  they 
ited  conrlition  that  none  of  them  know  what  a 
5tion  if  any  have  seen  a  contractor's  acceptance 

id  I  do  not  tldnk  they  have  enterprise  enough  4 

:he  Feejee  Islands.     The  securities  that  the  com-  ; 

be  divided  into  three  classes ;  first,  the  house 
I  shop  property  in  one  or  two  of  the  principal  | 

5  town.  That  class  of  security  is  in  great  favour,  { 

.n  upon  other  securities,  and  is  much  in  favour  ' 

selves.  The  second  class  of  securities  is  of  the 
streets,  and  although  the  interest  upon  them  is  | 

still  it  is  a  class  of  security  we  should  never  ! 

nature  of  the  property  and  the  fugitive  character  ; 

mes  the  third  class  of  security.  That  I  consider 
colony — I  mean  the  pastoral— the  security  uj^n 
lold    interests    in    the    country.      To   that   we  ' 

attention  very  seriously  when  an  opportune 
essrs.  Gibba,   Ronald  and  Co.,  of  London  and  ; 

en  engaged  in  the  bu8ine<«  upwards  of  fifteen 
niOBt    successful    in     establishing    a   first-class 


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526       Australian  Mortgage,  Land  and  Finance  Cmipanfj. 

business,  offering  us,  for  a  consideration,  that  we  Kliyuld  tiiko  ov 
business.  Now  I  confess  at  the  first  I  had  my  niisifivhign  ftbtmt  tliis 
afraid  there  was  too  much  of  the  commercial  element  in  it  \  but  nfter 
investigated  the  proposal  thoroughly  I  ^m  completely  KatiRlied  t 
securities  were  of  a  tirst-cla/^s  character.  I  Hiiuk  it  it*  but  fair  to  t 
the  process  by  which  I  came  to  this  conviction.  It  is  simply  thi 
probably  well-known  to  many,  but  to  others  it  iw  iint — in  thm  sq 
ijusiness  there  are  runs  situated  100,  200,  or  3U0  mile:^  from  large 
The  supplies  go  up  once  a  year — viz.,  everytUiii^^  that  is  wanteil,  w] 
agent  in  Melbourne  pturchases  on  the  best  term?  litj  eati,  and  simply 
a  commission  on  the  invoice.  Tiiat  gives  a  very  ctim^iderablo!  iMi 
Messrs.  Gibbs,  Ronald  and  Co.  Then,  again,  the  wool  has  to  coi 
again,  and  has  to  be  sold  in  Melbourne  or  Bhi^»pedto  this  country  i 
here.  Therefore,  in  going  into  this  mattt^r  1  saw,  altlioiigh  no 
allying  ourselves  with  a  commercial  imdortAking,  we  wtire  increai 
revenue  from  it  to  a  large  amount,  and  in  tho  saf ef^t  possible  wa 
security  is  and  has  been  of  the  most  ample  kind ;  and  jiiflt  Uy  si 
the  value  of  it,  during  the  fifteen  years  Messrs,  Gibbs  have  been 
business  they  never  made  a  single  loss.  ((71ioers.)  I  therefore 
more  confidence  in  asking  your  support  to-day  to  this  arrangemeu 
I  am  quite  sure  will  be  of  the  greatest  value  to  us  ali  I  am  qi 
whoever  has  the  honour  of  being  situated  in  this  place  ttj-daj; 
months  will  be  able  to  declare  a  dividend  twice  iw  muck  an  we 
to-day,  besides  adding  a  very  considerable  sum  ti*  a  wink iut;  fund.  { 
1  am  glad  to  say  that  Mr.  Aitchison  is  to  proceed  to  the  colony  \ 
this  agreement.  He  himself  is  a  successful  squatter,  and  I  am  qt 
will  ably  represent  our  interests  in  ratifyin^^  tins  cnntrat-t,  Witl 
to  New  Zealand,  we  have  only  hadoue  tranHaction,  but  that  htw  h 
very  satisfactory  kind.  But  that  will  teimitiato  at  the  end  uf  ti 
when  we  propose  to  appropriate  the  capital  wi  employe*!  in  furthe 
business  in  connection  with  Messrs.  Gibbn.  With  regard  to  the 
land  Land  Company,  it  was  found  although  it  might  be  highl 
able  to  invest  in  land  with  a  view  to  itn  re  sale^-buying  in  v 
and  selling  in  retail — it  was  not  likely  to  give  a  good  dividend  to 
company  like  this.  Therefore,  it  was  suggestetl,  a  sraaSl  land  < 
might  with  propriety  be  brought  forward,  and  heuct^  the  formatio 
Central  and  Northern  Queensland  Land  Company,  mider  the  a\u 
the  Australian  Mortgage  Land  and  Finanoe  Company.  It  us 
thing,  and  has  been  in  a  great  degree  successful,  and  we  are  to 
handsomely  for  its  formation.  I  may  mention,  to  give  you  8om< 
the  confidence  Messrs.  Gibbs  have  in  their  business,  they  were  exe 
anxious  the  whole  of  the  purchase-money  8li«ndd  be  in  Bhare^  ;  tli 
modest  enough  to  be  content  with  £15,000,  so  that  at  aome  future 
shall  have  iE6,000  to  divide.  This  we  shall  not  offer  at  prest^nt,  bi 
time  when  the  working  of  the  contract  will  make  them  valuabl 
proprietary.  I  do  not  know,  gentlemen,  thut  I  have  mucli  more  t 
have  sketched  the  outline  of  the  report.  All  I  can  say  ia — ^and  I 
no  egotistical  way — ^that  my  ooUe^igues  have  been  most  devoted 
duties  to  this  company  ;  and  I  shall  now,  witliout  further  detaini 
move  the  first  resolution  ; — "  That  the  directors^  reiMirt  of  the  pro 
of  the  year  1864,  with  the  balance-sheet  and  statement  of  profit 
account,  be  approved  and  adopted,  and  a  dividend  at  the  rate  of  G ; 
per  annum  be  now  declared  for  the  y«av  em  ling  ^Isfc  Docembe 
Before  I  put  this  resolution  1  shall  be  j^^I.mI  tn  rtnuwc^r  any  q< 
(Cheers.) 


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The  Unity  Bank.  527 

on  was  seconded  by  Mr.  Caird,  M.P.,  and  carried  unani- 

was  then  made  special,  and  a  resolution  adopted  confirm- 
on  of  the  directors  for  taking  over  the  business  of  Messrs. 

auditor,  Mr.  Ball,  was  unouimously  re-elected,  and  a  re- 
ed him  of  fifty  guineas  for  his  services  during  the  past  year, 
nks  to  the  chairman  and  directors  then  terminated  the  pro- 


THE  UNITY  BANK. 


s  a  return  just  presented  to  Parliament  of  tlie  correspond- 
the  Secretary  of  State  for  the  Home  Department  and 
Mid  Lewis,  on  behalf  of  persons  interested  in  the  aflairs  of 
^nk,   respecting     the    prosecution  of    Messrs.  Terry    and 

B.  Lewis  (fe  Lewis  to  Sir  George  Grey,  Bart.,  M.P. 

10,  Ely-place,  Holbom,  19th  January,  1865. 
e  requested  by  the  liquidators  of  the  Unity  Bank,  who 
I  it  their  duty,  in  the  interests  of  public  justice,  to  institute 
gainst  one  Joseph  Wakefield  Terry  and  one  Thomas  Burch, 
id  secretary  of  that  Bank,  for  a  series  of  frauds  committed 
I  and  its  shareholders,  to  seek  the  aid  of  the  Treasury  in 
iduct  of  this  case.  The  two  defendants  have  both  been 
he  Lord  Mayor  of  the  City  of  London  to  take  their  trial  at 
riminal  Court ;  and  inasmuch  as  the  expense  necessarily 
L  a  lengthened  inquiry  like  the  present  must  be  wouki 
outlay,  the  liquidators  have  not  funds  at  their  command  to 
jrpose.  They  have,  however,  not  hesitated  to  incur  such 
►enses  as  were  within  their  power  to  bring  to  public  justice 
unts,  who,  they  conceive,  have  committed  great  and  serious 
ongs,  by  which  they  have  laid  themselves  open  to  the 
es  now  preferred  against  them  ;  but  they  are  unable  to 
ses  of  the  foi-thcoming  trial.  We  have,  therefore,  on  their 
ou,  sir,  that  some  direction  or  order  may  be  matle  to  recoup 
^rs  the  taxed  costs  to  which  they  would  then  submit  them- 
il  further  proceedings  may  be  conducted  at  the  expense  of  the 
id  of  this  application  we  may  mention  the  ca«<e  of  the  Royal 
hich  was  a  prosecution  similar  in  every  respect  to  the  present, 
[e  the  taxed  costs  of  the  prosecution  were  paid  by  the  Treasur v 
J  who  conducted  the  same.  We  do  not  apprehend  that  the 
>secution  will  much  exceed  £1,000;  but  many  of  the  share- 
Jnity  Bank  having  been  ruined  by  their  connection  with  it, 
ng  died,  they  are  unable  to  contribute  such  a  sum  of  money, 
!  of  justice  by  the  acquittal  of  the  defendants  were  to  follow. 

trespassing  so  long  upon  your  time, 
We  have,  (fee, 

(Signed)         Lewis  <fe  Lkwts, 
Solicitors  for  the  prosecution  and  the  licpiidators. 

Hon.  Sir  G.  Grey,  Bart., 

ary  of  State  for  the  Home  Department. 


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528  The  Unity  Bank. 

Mr.  T.  G.  Baring,  MP.,  to  Messrs.  Lewis  <fe  Lewii 
Whitehall,  24th  January 

Gentlemen, — I  am  directed  by  Secretary  Sir  George  Grey  to 
ledge  the  receipt  of  your  letter  of  the  19th  instant,  in  which  y< 
on  behalf  of  the  liquidators  of  the  Unity  Bank,  for  the  assistan 
Government  in  the  prosecution  of  the  manager  and  secretary 
Bank  ;  and  I  am  to  inform  you  that  Sir  George  Grey  is  not  awa 
peculiarity  in  this  case  to  call  for  the  special  interference  of  tht 
ment. 

I  am,  <bc. 
(Signed)  T.  G.  BiU 

Messrs.  Lewis,  10,  Ely  Place, 
Holbom. 


Messrs.  Lewis  <fe  Lewis  to  Sir  George  Grey,  Bart.,  M.P, 
10,  Ely-place,  Holbom,  27th  January 
The  Queen  against  Terry  and  Burch. 
SiE, — We  beg  to  acknowledge  the  receipt  of  your  letter  of 
instant,  in  which  you  inform  us  that  you  are  not  aware  of  any  p 
in  this  case  to  call  for  the  special  interference  of  the  Grovemmen 
reply,  we  beg  to  submit  for  your  consideration  the  following  f j 
the  liquidators  have  not  the  funds  to  enable  them  to  continue  thii 
tion,  and  that  if  the  Government  fail  to  render  assistance,  the  d 
will  not  further  be  prosecuted,  and  public  justice  will  thereby  be  \ 
that  the  offence  charged  against  the  defendants  is  not  one  of 
grievance,  affecting  one  inmvidual,  but  is  a  crime  against  the  wb 
ing  and  commercial  community  of  this  country.  We  trust, 
special  reasons,  that  our  application  of  the  19th  instant  will  be 
with.  May  we  respectfully  ask  for  a  reply  by  Monday,  as  the  ii 
the  prosecutors  to  further  prosecute  must,  upon  that  or  the  folio 
be  mentioned  at  the  Central  Criminal  Court  ? 

We  have,  <fec., 
(Signed)  Lewis  <b 

To  the  Bight  Hon.  Sir  G^rge  Grey,  Bart.,  <fec.,  <Sz:c.,  <bc. 


Mr.  T.  G.  Baring,  M.P.,to  Messrs.  Lewis  <b  Lewis. 

Whitehall,  28th  Januar 

Gektlebten, — I  am  directed  by  Secretary  Sir  George  Grey  t^; 

ledge  the  receipt  of  your  letter  of  the  27th  instant,  and  to  iiifonf 

he  sees  no  reason  for  departing  from  the  opinion  already  expresai 

in  the  case  of  The  Queen  v.  Terry  and  Burch. 

1  am^  (fee, 

(Signed)        G.  T.  I 
Meesnt.  Lewis,  10,  Ely  Place, 
Holbom. 


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Bank  A  malgamation. 


529 


srs.  Lewis  <b  Lewis  to  Sir  George  Grey,  Bart.,  M.P. 

10,  Ely  Place,  Holborn,  7th  March,  1865. 
The  Queen  v.  Terry  and  Burch. 
eg  to  inform  you  that  this  prosecution,  which  was  originally 
the  Unity  Bank,  will  not  further  be  prosecuted  by  the  bank, 
)  being  no  funds  which,  according  to  its  charter,  are  applicable 
ose.     We  therefore  respectfully   call  your  attention  to  the 
I  defendants,  charged  with  the  serious  misdemeanour  already 
ir  notice,  will  go  unprosecuted  unless  you  will  give  directions 
r  of  the  Treasury  to  appear  on  behalf  of  the  Crown. 
We  have,  &c. 

(Signed)  Lewis  <fe  Lewis. 

t  Hon.  Sir  George  Grey,  Bart. 


'.  T.  G.  Baring,  M.P.,  to  Messrs.  Lewis  cfc  Lewis. 

Whitehall,  9th  March,  1865. 
, — I  am  directed  by  Secretary  Sir  George  Grey  to  acknow- 
pt  of  your  letter  of  the  7th  instant,  respecting  the  prosecution 
["he  Queen  v.  Terry  and  Burch ;  and  I  am  to  inform  you  that 
>f  State  must  decline  to  interfere  in  the  matter. 

I  am,  &C. 

(Signed)  T.  G.  Baring. 

is,  80,  Ely  Place,  Holborn. 


TENDERS  FOR  BILLS  ON  INDL^. 

)r  30,00,000  rupees  in  bills  on  India  took  place  on  the  1st 

Bank  of   England.     The  proportions  allotted  were: — To 

>,000  rupees  ;  to  Bombay,  12,00,000  rupees  ;  and  to  Madras, 

The  minimum  price  was,  as  before.  Is.  ll^d.  on  Calcutta 

,nd  Is.  lid.  on  Bombay.     Tenders  on  Calcutta  and  Madras 

11  receive  about  17  per  cent.,  and  on  Bombay  at  la.  llld, 

cent. ;    above  these   prices   in  full.     Further  biddings  for 

rupees  took   place  on  the  15th   March.     The   proportions 

o  Calcutta,  17,26,000  rupees ;  to  Bombay,  10,24,000  nipees ; 

us,  2,.5(J,000  rupees.     The   minimum    price  was,  as  before, 

alcutta  and  Madras,  and  Is.  ll^d.  on  Bombay.     Tenders  on 

^ladras  at  Is.  11  |d.  will  receive  about  13  per  cent.,  and  on 

11 1 d  in  full.    Above  these  prices  in  full. 


BANK  AMALGAMATION. 


n  of  the  private  banking  business  of  Messrs.  Call,  Marten, 
ond-street,  by  Messrs.  Herries,  Farquhar,  and  Co.,  of  St. 
mnounced  on  the  8th  of  March.  The  country  business  at 
to  be  carried  on  by  Mr.  Marten  with  a  new  partner,  Mr. 
on  Smith,  and  the  style  of  the  firm  will  henceforth  be  Messrs. 
Marten,  and  Co.  Their  London  agents  are  Messrs.  Smith, 
niths,  Lombard  Street. 


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Commun  icatiom* 


GRATUITIES  TO  BANK  CLERKS. 

3VIessrs.  Sparrow,  Tufnell  and  Co.,  of  the  Bank,  Clielmafordj  hav 
hjindsomely  distributed  to  each  of  their  empioj//,^,  thr<junfhout  thei 
what  hixge  establishments  over  Essex,  a  bonua  of  10  per  oen 
each  salary,  and  in  some  instances  more. 


To  the  Editor  of  the  **  Bankers^  Mtiffozine" 
"TOUTING  FOR  BUSINESS." 

SiE, — ^In  these  days  of  joint-stock  banking,  w«  hear  on  all  side 
great  advantages  the  public  derive  from  the  new  sy^teru,  as  eompa 
those  afforded  by  the  old  private  bankers  ;  and,  doiibtlt-jw,  the  jui 
banks  have  assisted  and  fostered  the  increasiii;,'  tra<le  of  tho  ctmui 
tiitent  to  which  the  resources  of  the  private  bauks  would  have  bcH? 
inadequate. 

Every  system  has  its  faults,  and  there  is  a  practice  unkuown 
times,  but  which  has  been  engrafted  on  joint -stock  hanking,  a 
generally  admitted  to  be  an  abuse,  but  which  n^vertheleas  is  dailj 
more  and  more  into  vogue — I  allude  to  the  habit  of  **  touting  "  for  1 
In  the  present  day,  any  one  who  has,  or  is  likel)  to  have,  a  banking 
in  subjected  to  the  solicitations  of  half  a  dozen  rivid  managers, 
fight  over  him  like  hungry  dogs  over  a  bone.  Of  late  there  have  bee 
amalgamations  and  transfers  of  business  in  the  hanking  world,  aut 
the  clients  of  the  establishments  so  absorbed  will  te^stify  to  the  tnit 
Htatement.  I  fully  ex|xjct, ere  loug,  to  seepoatera  t>ii  the  wiills  am 
that  the  **  West  Middlesex  Bank,  Limited,"  is  j^r^nare*!  t<>  giv*?  ICl 
for  deposits ;  and  "sandwich"  men  competing  with  the  theiitrical  ad 
in  publishing  to  the  world  that  the  "  North  and  South  Folea  Ban 
limited)  is  prepared  to  give  their  customerb  greater  facilities 
other  establishment.  This,  if  not  a  particularly  respectable,  i 
least  be  a  harmless  mode  of  pushing,  but  it  is  uot  so  with  private 
tions  for  business.  It  is  extremely  important  that  a  bank  maoagi 
lie  in  an  independent  position,  and  able  to  treat  with  hl^  ctisi 
equal  terms.  This  he  cannot  do  with  a  person  who  has  ojiened  at 
by  request,  and  he  is  therefore  unable  to  decide  a  question  by  his  j 
alone,  as  he  shoiild  do.  The  customer  is  to  a  C4.^rtaiu  €xtf?ut  the  me 
can  therefore  tender  bills  of  a  doubtful  character,  or  apply  for  a 
iusufficient  banking  security,  well  knowing  tbat  if  there  is  auyd 
hint  that  a  rival  bank  is  more  accommodatiiig  will  have  the  desir 
Then,  again,  the  competition  for  businesB,  and  the  fear  of  I 
account,  frequently  lead  to  the  grant  of  credit  where  it 
undeserved,  and  as  the  bank  is  supposed  to  have  every  opporl 
judging  of  the  solvency  of  an  individtud,  on  the  faith  of  credit  mot 
the  bank-trust  is  placed  by  the  public,  who  often  find  when  too 
they  have  been  misled  and  victimised. 

It  is,  I  believe,  a  fact  that  in  some  joint-etock  banks  either  a  < 

or  a  seat  at  the  board  may  be  purchased  by  so  many  new  aocoimt 

All  this  sort  of  thing  must  be  extremely  dis tasteful  to  gentle 

are  placed  in  the  position  of  managers,  reducing  them,  as  it  does, 

the  standing  of  commercial  travellers.      It  in^  moreorerj  Toiy 


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business  obtained  by  these  practices  is  worth  having,  and  I 
lat  managers  as  a  body  would  be  very  glad  to  get  rid  of  such 
3rk,  that  I  am  induced  to  trouble  you  with  these  remarks  in 
the  question  may  be  taken  up,  jmd  some  honoui'able  arrange- 
etween  banks  and  bankers  by  which  their  respective  clients 
n  unmolested. 

I  am,  Sir, 
Your  obedient  servant, 

J.  D.  F. 
;rd  March,  18G5. 


JN^KERS'  GUAUANTEE  AND  TRUST  FUND. 

will  no  doubt  have  seen  the  prospectus  of  the  "  Bankers' 
d  Trust  Fund."  The  object  of  the  promoters  is  worthy  of 
rt  from  all  bank  officials  and  their  employers ;  but  there  are 
oints  as  to  the  constitution  and  prjictical  workincf  of  the 
L  appear  to  me  (and  may  probably  appear  to  others)  to  re- 
ition.  The  prospectus  gives  the  names  of  five  gentlemen 
»ine  trustees  whenever  the  subscribed  security  shall  amount 
In  the  meantime,  I  would  ask,  how  is  the  association  to  be 
ud  by  whom  are  the  jwlicies  to  be  issued  and  signed  ?  Is 
n  to  be  registered  as  a  public  company,  capable  of  suing  and 
the  name  of  its  registered  public  office  ?  These  points,  Sir, 
are  of  great  importance.  The  guarantee  fund  of  the  Bank 
B  managed,  of  course,  within  that  establishment  itself,  and 
iions  as  to  liability  can  arise  in  case  of  demand  upon  it  in 
f  defalcations.  But  the  relations  of  "  The  Bjmkers'  Guarantee 
nd  Association  "  will  be  external  to  itself,  and  hence  legal 
f  arise  that  will  require  the  intervention  of  a  jury  to  settle. 
IS  have  arisen  occasionally  between  the  guarantee  societies 
cy-holders,  and  Imve  only  been  settled  by  legal  proceedings, 
dc  any  bank  would  accept  a  guarantee  policy  unless  it  wass 
r  there  was  some  person  or  legally  constituted  body  to  sue  in 
,e.  I  beg  to  add  that  I  heartily  wish  the  dissociation  success, 
art  the  foregoing  points  for  information. 
Ir.  Editor,  to  see  a  note  from  yourself  on  the  subject, 
I  remain. 

Your  obedient  servant, 

A  Bank  Manager, 
Who  pays  thirty  pounds  a  year  for  his 
guarantee  premium.         ^ 
1, 1865. 


CHEQUE  TO  BEARER. 

.  draws  a  cheque  upon  his  bankers  payable  to  C.  D.,  or 
.  endorses  the  checiue,  and  makes  it  payable  to  the  order  of 
heque  is  presented  for  payment,  and  the  bankers  say  they 
o  pay  it  because  it  has  not  E.  F.'s  endorsement.  Can  the 
eque  made  payable  to  bearer  make  an  endorsement  payable 


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Estates  of  Failed  Firms. 


to  order  ?    And  if  he  does  so,  are  the  bankers  of  the  drawer  of  the  c 
bound  to  pay  the  instructions  of  the  payee  ? 
February  8th,  1865. 

[We  apprehend  that  the  cheque  having  been  issued  to  "  bearer  " 
affected  by  any  endorsement,  but  remains  payable  to  "  bearer."] 


ENDORSEMENT  OF  CHEQUES. 

Sib, — ^In  your  January  number  reference  is  made  by  one  of  yoi 
respondents  to  your  opinion,  given  in  September  last,  on  cheques  en 
by  procuration.  If  I  mistake  not,  you  formerly  considered  it  unc 
pay  cheques  so  endorsed. 

In  this  month's  Magazine  you  do  not  reply  distinctly  to  the  quest 
a  Banker's  Clerk,  viz. :  "  If  cheques  crossed  to  any  particulai 
require  to  be  endorsed  by  said  bank  ? " 

Your  kind  notice  of  the  above  will  oblige. 

Yours  most  respectfully, 

A  SUBSCBI 

[The  question  of  endorsement  of  cheques  ''per  procuration' 
decided  in  the  case  of  ''  Cuthbertson  v.  Bank  of  England,"  tried 
Court  of  Exchequer,  29th  June,  1860,  and  reported  in  the  **Bi 
Magazine  "  for  that  year,  page  550.  The  law  respecting  crossed  c 
was  settled  by  21  and  22  Vict.,  c.  79,  which  enacts,  inter  alia,  that 
banker  upon  whom  such  cheque  or  draft  shall  be  drawn  shall  not  pc 
cheque  or  draft  to  any  other  than  the  banker  with  whose  name  such 
or  draft  shall  be  so  crossed."  If  the  cheque  be  payable  to  **  ord 
will  require  to  be  endorsed  by  the  payee,  but  such  endorsement  mi 
con^ct  with  the  special  crossing.] 


THE  ESTATE  OF  MR.  T.  S.  BEGBIE. 

A  BCEETiNO  of  the  creditors  of  Mr.  Thomas  Stirling  Begbie,  who  sub 
payment  on  the  13th,  was  held  on  the  24th  March,  at  Uie  offices  of  ] 
Quilter,  Ball,  and  Co.,  under  the  presidency  of  Mr.  Joseph  Hoare,  i 
statement  of  his  affairs  was  submitted,  showing  liabilities  to  the  as 
about  £350,000,  by  far  the  greater  portion  of  which  i^  secured  or 
wise  provided  for.  It  is  estimated  that  under  the  mmi  iinfayoural 
cumstances  the  unsecured  crediton  will  receive  a  dividend  of  at  lei 
in  the  poimd,  and  in  certain  contingencies  the  figures  show  a  large  i 
after  payment  of  all  creditors  in  full.  It  was  unanimously  redolve 
the  estate  be  wound  up  under  the  inspection  of  Mr,  Joseph  Ho: 
Mr.  Peter  Denny. 


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533 

EW  JOINT-STOCK  BANK  AT  BTRIVONGHAM. 
5  &  Co.,  of  Birmingham,  have  resolved  upon  forming  them- 
Dint  stock  bank,  limited.  They  will  also  absorb  the  other 
rate  bank  of  Messrs.  S.  L.  Moilliet  <fe  Co.  In  consequence 
sment  it  is  proi^sed  to  augment  the  nominal  capital  of 
ig  Company  from  ^1,250,000  to  £2,000,000,  and  to  increase 
shares  from  25,000  to  40,000. 


3.  BARNED,  MOZLEY  <fe  Co.,  OF  LIVERPOOL, 
disappearance  of  Mr.  Brandon  Mozley,  who  has  failed 
Ities  on  the  Stock  Exchanges  of  London  and  Liverpool, 
LOurs  were  circulated  with  regard  to  this  firm  in  the  course 
Assistance  was  speedily  procured,  and  the  house  placed 
lity  of  jeopardy.  Mr.  B.  Mozley  was  not  a  partner,  and 
{litest  connection  with  the  bank. 


ALL  FREEHOLD  LAND  AND  DOCKS  COMPANY. 
?'oncier  and  Mobilier  of  England,  and  the  Imperial  Mer- 
^.ssociation,  Limited,  have  introduced  the  Millwall  Freehold 
8  Company,  with  a  capital  of  £510,000,  in  25,500  shares  of 
;he  usual  debenture  powers.  The  deposit  on  application  is 
d  £4  on  allotment,  the  calls  not  to  exceed  £2. 10^.  per  share, 
I  ade  at  intervals  of  less  than  three  months.  The  directors  are 
ble,  and  include  severjil  first-  class  men  of  business.  The  com- 
>rated  for  the  purpose  of  supplying,  under  circumstances 
antageous   to    the    shareholders,  the    great    demand    for 

for  manufactories,  ship-building  yards,  and  graving- 
bhe  port  of  London,  which  the  natural  increase  of  trade, 
the  removal  of  existing  water  frontage  by  the  formation  of 
mbankment  and  other  metropolitjin  improvements,  has 
>ecial  Act  of  Parliament  the  company  has  obtained  a  large 
b  Millwall,  consisting  of  upwards  of  198  acres  of  freehold 

tlie  East  and  West  India  Docks.  This  land  will  be  ren- 
for  the  purjxxses  above  mentioned  by  the  construction 
of  large  docks  or  Vjasins,  with  acc<*^s  for  the  largest  vessels 
Lwall  and  Limehouse  Beaches.  The  deep  water  frontage  thus 
rorks  will  become  immeciiately  valuable  in  the  highest  degree 
kuaries,  manufactories,  ship-building  yards,  and  similar  pur- 
n  the  water  being  always  kept  at  high  level,  the  saving  of 
1  all  operations  of  lighterage,  loading  and  unloading,  which 

without  respect  to  tides,  will  render  this  site  far  more 
md  abutting  on  the  Thames  itself.  The  proposed  works 
e  the  construction  of  public  graving-docks  of  the  largest 
pable  of  receiving  vessels  of  even  greater  size  than  her 
dad  ship  Warrior,  and  of  accommodating  her  Majesty's 
nberland,  now  building  on  the  premises  of  the  Millwall 
The  main  roads  which  traverse  the  site  of  the  proposed 
od  access  to  them,  but  application  is  being  made  to  Par- 
present  session  by  the  Blackwall  Railway  Company  for 
)f  the  Blackwall  and  North  London  Railway  systems,  by 
lilway  communication  will  be  afforded  for  the  whole  of 
rorks,  wharves,  and  decks,  with  the  entire  railway  system 


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THE  REPUCTION  IN  THE  BANK  RATE  OF  Dl 
The  Bank  of  England  rate  of  discount  lias  been  r 
per  cent. ;  the  rate  of  discount  by  the  Bank  of  Fra; 
3^  per  cent.  It  is  quite  evident  that  we  are  ay: 
period  of  cheap  money,  but  whether  it  will  last  r 
seen.*  There  are  sjonptoms,  from  the  growing  rest 
Banks  of  England  and  France,  that  the  tremenduu: 
of  engagements  will  leave  us  with  a  glut  of  mon 
while  this  is  the  case  there  will  be  no  revival  uf 
Bank  of  France  was  expected  last  wetk  to  go  do^ 
cent.,  but  it  appears  that  the  Council  are  waiting 
of  England  directors  to  act  before  they  move.  Th 
in  Threadneedle  Street  are  usually  very  vigilantj  m 
no  doubt,  good  grounds  for  maintaining  the  quotatii 
sent  elevation.  With  this  state  of  tliiags  in  ex 
rather  surprising  that  there  is  not  more  activit 
explanation  is  to  be  found  in  the  circutiihtanue  that 
produce,  cotton,  tea,  sugar,  and  other  staples,  hai 
many  of  our  mercantile  firms  that  they  have  no 
them.  The  speculation  also  carried  forward  in  th< 
securities  has  more  or  less  pinched  the  public^  who 
not  sufiered  a  direct  sacrifice,  have  become  lot^ked 
descriptions  which  they  cannot  realiisOj  and  ap| 
which  will  plague  them  sorely  when  they  fall  due. 
through  the  depreciation  in  produce,  there  will  be 
failures  in  London  and  Liverpool,  and  it  is  also  im 
cotton  crisis  is  not  far  distant,  through  the  nature 
gence  from  America.  We  shall  in  all  probab: 
consequence,  a  further  season  of  depression  ;  hut,  -" 
of  discount  and  a  moderate  demand  for  money, 
enabled  to  pass  through  our  anticipated  difficulties 
ease  than  we  did  in  the  autimin  of  last  year.  The 
the  terms  for  money  accommodation  will  he  a  g 
every  circle.  A  great  number  of  people  had  fixe 
rate  of  the  Bank  for  the  present  at  4  per  cent.,  I 
now  think  the  terms  will  eventually  go  to  3  J  per  c 


THE  AMALGAMATION  OF  THE  ALLIANCE  ANI 
DATED  BANKS. 

The  negotiations  for  amalgamating  tlie  Alliance  am 
Banks  have  been  broken  off.  The  reason  is  said  to  be  u 
culties  which  have  arisen  inespective  of  tht^  bitsiness  of  <^ 
the  committee  on  both  sides  having,  it  is  aaseited,  dcchi 

*  Whilst  this  sheet  is  passing  t'liuugh  the  press,  the  directo 
Enghind  have  lowered  the  rate  to  4  per  cent. 


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led  with  their  investigation  as  far  as  it  had  gone.      It  is 

proposed  armngement  was  not  viewed  as  favourable  to 
sections  of  the  shareholders,  and  that  if  the  directors  had 

tliey  would  in  all  probability  liave  been  negatived  at 
meetings  when  proposed  for  coniimiation.  'it  has  all 
rcoived  that  the  large  capital  to    be   made  })rofitable 

the  way  of  bringing  about  a  satisfactory  agreement,  at 
^at  body  of  the  proprietors  of  the  two  institutions.  The 
lank  will,  therefore,  now  continue  in  its  own  course ; 
link  will  have  to  do  the  same,  and  the  directoi-s  will 
tunity,  if  necessaiy,  of  introducing  fresh  blood  into  the 
der  to  promote  its  future  prosjK^rity. 

^ . 

BRITISH  AND  CALIFORNIAN  BANK. 
he  British  and  Calif orniau  Banking  Company,  Limited, 
\i  the  first  annual  meeting  on  the  3rd  April,  is  as  follows  : 
rs  have  the  pleasure  to  submit  to  the  shareholders  the 
sheet  of  the  bank  to  the  31st  December,  1864,  showincr  at 
►fit  and  loss  account  the  sum  of  £0,231. 17s.  3<f .,  from  which 

the  current  expenses,  amounting  to  £2,362.  7«.,  leaves  an 
e  of  £3,809.  10^-.  3(i.  In  the  report  addressed  to  the  share- 
2th  December  last  the  directors  gave  an  outline  of  their 

0  that  date.  They  have  now  to  state  that  the  branch  in 
)mmenced  business  in  their  own  premises  under  the  man- 
Henry  S.  Babcock,  at  the  end  of  November,  con.sequently 
ig  accounts  only  inclnde  the  result  of  a  few  weeks'  opera- 
ia.  The  paid-up  capital  of  the  bank  on  the  31st  December 
)0,000,  smce  which  time  the  first  ciUl  of  50,0<)()  has  become 
n  well  responded  to.  The  advices  from  San  Francisco, 
svelopment  of  local  and  general  business,  are  satisfactory' 
nents  concluded  with  banks  and  commercial  firms  of  em'i- 
ferent  localities  connected  with  the  trade  of  California, 

importance,  and  have  already  begun  to  bear  profitable 
rectors  now  declare  a  dividend  of  3s.  per  share,  free  of 
d  to  6  per  cent,  per  annum,  payable  to  the  proprietors  on 
h  April,  which  will  absorb  £3,000,  and  leave  £869. 10«.  M. 
»'ard  to  the  credit  of  profit  and  loss  new  account." 

♦ 

'HE  COUNTRY  BANKS  ISSUE  BILL, 
the  material  clause^s  of  Mr.  Gladstone's  Country  Banks 
i  it  has  been  amended  in  committee,  the  discu'ssion  of 
2  place  in  Ai)ril.     The  modifications  effected  are  of 
nt  character,  since   they  point  to  the  extinction  of  all 

1  England  in  IbJo,  and  stipulate  that  on  any  bank  be- 
lt its  right  of  issue  shall,  as  is  the  case  under  the  pre- 
iohitely  forfeited.  By  this  means  the  objection  to  the 
original  form,  that  it  would  tend  to  perpetuate  the 
number  of  privileged  banks  throughout  the  country, 
lerating  the  absorption  of  their  issues  by  the  Bank  of 

to  be  almost  entirely  removed  : — 


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Gauntry  Banks  Issue  Bill. 


"  Til  ere  shall  be  repealed,  so  far  as  respects  any  bankof  issu 
taking  tu  pay  such  percentage  on  its  issue  of  notes  as  is  hei 
mentioiie*!^  any  provision  of  any  Act  whereby  the  number  of 
in  certain  banks  of  issue  is  restricted  to  six,  or  whereby  certai 
of  h^utf  are  prohibited  from  having  a  house  of  business  or  e 
merit  as  bankers  in  London,  or  at  any  place  not  exceeding  s 
milt'8  fn  *Tii  London,  or  whereby  banks  of  issue  are  prohibited  fr 
ing  p;iyal>i€  bank-notes  in  London,  or  at  any  place  not  excee 
dii^taiice  of  sixty- five  miles  from  London. 

*'  Any  bank  of  issue  or  any  number  of  banks  of  issue  may 
to  any  father  bank  of  issue  the  right  of  issue  or  rights  of  isst 
in  it  or  them,  or  any  part  or  parts  thereof,  on  such  last-m 
kink  uTiilcrtaking  to  pay  such  percentage  in  respect  of  its  oy 
and  of  tlie  issue  or  issues  so  transferred. 

**  Any  bank  issuing  notes  in  respect  of  which  such  percc 
pnyiiblt'  may  continue  its  issue  until  the  1st  of  January,  187c 
lon^e).  lu  the  event  of  Parliament  putting  an  end  to  the  is8U< 
rised  by  this  section  at  any  time  before  the  said  1st  of  Janoai 
there  hIiiJI  be  paid  to  any  bank  for  the  time  being  enjoying  1 
to  sucli  issue  full  compensation  for  any  Joss  it  may  sustaii 
de  term  illation  of  that  right  before  such  time  as  aforesaid. 

'*  Eveiy  bank  that  has  accepted  the  conditions  of  this  Act  i 
of  tho  piiyment  of  a  percentage  on  its  issue  of  notes,  shall  pa 
Majesty's  Exchequer  a  sum  of  £\,  5s.  per  cent  per  annun 
av  em^'e  lituount  of  notes  cii*culated  by  that  bank  in  every  hal 

*' Tlie  percentage  payable  under  this  section  shall  be  ii 
licence  tluty  and  stamp  duty  or  composition  for  stamp  duty  i 
of  bank  notes  issued  by  a  privileged  bank,  and  no  licenct 
notes  shall  be  required  by  any  bank  paying  the  same,  and  si 
shall  be  entitled  to  the  same  privileges  in  respect  of  the  issu< 
notes  as  if  it  were  duly  licensed  and  had  duly  paid  stamp 
composition  for  stamp  duty. 

*' If  any  privileged  bank  becomes  bankrupt,  its  righto 
notes  slialL  absolutely  determine. 

"  A  |irivileged  bank,  notwithstanding  it  carries  on  bu 
London  itr  within  sixty-five  miles  thereof  may,  on  obtaining  a ! 
licences  as  required  by  the  9th  of  George  IV.,  cap.  23,  as 
by  the  Bank  Act,  1844,  compound  for  the  issue  on  unstamp 
of  Itf;  promissory  notes  payable  to  order  at  any  period  not  c 
seven  days  after  sight,  and  of  such  bills  of  exchange  as  a 
said  Act  of  the  0th  of  George  IV.  in  that  behalf  mentioned, 
the  J  are  drawn  on  and  made  payable  at  such  bank,  orabranc 
in  L<>ud<m,  Westminster,  or  the  borough  of  Southwark,  an( 
shalt  be  entitled  to  all  powers  and  privileges  exercised  or  en 
it  pi^viously  to  its  becoming  a  privileged  bank." 


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oTi 


FERN  BA:S^K  of  SCOTLAND. 

the  shareholders  in  the  Western  Bank  of  Scotland 
March,  at  St.  Clary's  Hall,  Glasgow,  when  Mr.  R. 
r,  appointed  to  wind  up,  voluntarily,  the  affairs  of 
is  re[.K)rt,  in  which  he  stated  that  during  the  year 
limed  deposits  and  letters  of  cre<lit  had  been  paid, 
i*s  notes  had  been  retired.  Since  the  comujence- 
n,  the  notes  retired  and  burned  by  the  committee 
itecl  to  £1,5<X),440.  5s.,  and  the  total  amount  of 
luring  that  perirxi  was  £6,098,001.  The  £50,000 
former  yeiirs  to  meet  contingent  liabilities,  was  re- 
t,  as  the  claims  brought  against  the  bank  still  form 
Q.  The  money  invested  in  Consols  and  lodged  in 
39,745  ;  but  of  that  amount  there  must  be  kept  in 
B  referred  to — £27,119  for  amount  of  unpaid  returns 
neet  notes  outstan<liiig,  and  £28,127  for  amount  of 
To  provide  fully  for  these  variou.<5  liabilities  required 
would  be  available  for  a  return  to  the  partners  only 
er  rthare.  But  the  reporter  was  decidedly  of  opinion 
should  be  paid  until  the  impr)rtant  litigations  now 
;n  brought  to  a  close,  and  the  full  extent  of  tlie 
itely  ascertained.  The  assets  of  every  kind,  in- 
ted  during  the  year,  amounted  to  al)out  £52,(XK) ; 
ealised  are  valued  at  £102,721.     The  reix/rt  was 


NGLO-EGYPTIAN  BANK. 


nglo-Egyptian  Bank  statea  that  the  provisional 
Lved  from  Alexandria,  shows  an  aggregate  of  triuis 
lassing  through  the  books  of  the  bank  witiiout  a 
;  and  the  account  of  profit  and  loss,  after  making 
»pense  accounts,  shows  that  the  flirectors  are  fully 
iding  an  interim  dividend  of  8;*.  per  share  (l>eing 
ut.  per  annum  on  the  amounts  paid-up),  carrj'ing 
irplus  to  be  brought  into  account  when  the  lirst 
i  financial  year's  working  are  submitted  to  the 
r  or  November  next. 


\ST  OF  ENGLAND  BANK. 


s.  in  the  pound,  payable  at  Norwich,  to  the  creditors 
ad  Bank,  has  been  announced  by  Mr.  James  B. 
leiiry  Tillett,  the  liquidators.  This  bank  Htopi>ed 
I  July  last,  and  a  first  dividend  of  10s.  in  the  pound 


-♦ 


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538 

ALBION  BANK. 

At  the  first  ordinary  general  meeting  of  the  shareholders  of 
Bank,  Limited,  held  on  the  28th  March,  Mr.  T.  Cxva  in  th 
report  was  presented  and  adopted.  The  accounts  allow  a  gr«; 
£6,182,  and,  after  deducting  current  expeiiscft,  interest  on 
current  accounts,  and  rebate  on  bills  not  due,  k'ft  a  uet  liaLin 
Of  this  a  sum  of  £1,110  was  appropriated  to  the  payment  oi 
for  the  half-year  at  the  rate  of  5  per  cent,  per  annuiii,  the  ball 
being  carried  forward  to  the  next  account. 


MERCANTILE  SUSPENSIONS. 


The  following  siuspensions  have  been  announced  during  the  pa 
February. — Messrs.  Rizo,  Son  <fe  Co.,  Lomion,  merchants. 
March. — Messrs.  Attwoods,  Spooner  <fe  Co.,  Biriuinghani, 
Mr.  T.  S.  Begbie,  London,  8hiix)wner  and  nier chant. 
Messrs.  I.  W.  Burstall  <fe  Co.,  Hull,  merchants. 
Mr.  David  Leopold  Lewis,  London,  contractor* 
Messrs.  Andrew  Fachiri  <k  Son,  London,  luerchantf. 
Messrs.  Smith,  Douglas  <fe  Co.,  London,  nieroliants, 
Messrs.  James  Smith  &  Co.,  Liverpool,  merchants* 


MONTHLY  CHRONOLOGY. 


February  25. — ^Failure  of  Messrs.  Rizo,  Son,  dt  Co., 
tiierchants. 

March  2. — The  directors  of  the  Bank  of  England  reduced 
fliscount  from  5  to  4J  per  cent. 

3. — Intelligence  received  of  the  capture  of  Charleston  by 
Federal  Army. 

9. — The  directors  of  the  Bank  of  Franco  retiuced  their  ral 
from  4  to  31  per  cent. 

10. — Stoppage  of  the  bank  of  Messrs.  Atfcwooda,  Spooa^ 
Birmingham,  with  liabilities  stated  to  amount  to  £0d0,47' 
^618,412. 

16. — Suspension  announced  of  Mr.  T.  S.  B«gbie,  shippWT: 
chant,  of  Mansion  Hoiise  Place,  with  liabilities  amouutiug 
At  a  subsequent  meeting  of  creditors  it  was  agreed  that  the 
1)6  wound-up  imder  inspection.  Failure  of  Messrs  J*  W.  Bt 
merchants,  of  Hull,  chiefly  engaged  in  the  Ea^t  India  trad 
lities  estimated  at  between  £250,000  and  £300,000, 

17. — Stoppage  of  Mr.  David  Leopold  Lewis,  of  George  Ya 
Street,  contractor. 

22. — Suspension  of  Messrs.  Fachiri  <fe  Son,  of  Cullum. 
chants,  with  debts  of  about  £100,000. 

23.  The  directors  of  the  Bank  of  Holland  reduced  their 
count  from  4  to  3^  per  cent. 

24. — Stoppage  of  Messrs.  Smith,  Douglas,  ^  Co.,  of  Londo 
Smith  <fe  Co.,  of  Liverpool,  with  debts  amounting  to  about 
£400,000.     Engaged  in  the  East  India  trade, 

30. — The  directors  of  the  Bank  of  England  reduced  the 
to  4  per  cent. 


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BANKING  OBITUARY. 

th  February,  at  373,  City  road,  Mr.  Joseph  Thomas  Frith, 
ank  of  England,  aged  63. 

Hh  February,  at   his   residence,  Lowville,  Dublin,  aged  72, 
lurray,  for  many  years  chief  olhcer  of  the  Provincial  Bank  of 

h  March,  suddenly,  at  his  residence,  3,  Hoxton  square,  aged 
las  Duthwit,  late  principal  of  the  Bank-stock  office,  Bank  of 


BANK    MOVEMENTS. 


3  Barney  is  retiring  from  the  Boston  Branch  of  the  Stamford, 
Boston  bank,  after  sixteen  years  of  very  successful  munageoent, 
ided  by  Mr.  R.  H.  Wcldou,  who  has  been  for  two  years  at  the 
ranch  of  the  same  bank,   and  was  formerly  with  Messrs.  Praed 


?  M.  Usbome,  of  tlie  Corn  Exchange,  has  joined  the  direction  of 
tan  and  Provincial  Bank. 


;  Hewat,  secretary  of  the  Provincial  Bank  of  Ireland,  London, 
nt  upon  the  d<.ath  of  Mr.  Robert  Murray,  been  appointed  chief 
perintendent  of  branches  at  Dublin,  and  Mr.  Alexander  Christie 
iiewat  as  secretary. 

1  McCullough,  manager  at  the  Newry  Branch,  Provincial  Bank 
s  been  appointed  manager  of  the  Dublin  Branch. 


TRADE  OF  THE  UNITED  KINGDOM. 

t  Trade  returns  for  the  first  month  of  the  present  year  were 
7th  March  ;  but  they  do  not  present  any  material  change  a« 
ih  the  month  of  January  last  year,  though  the  results  on  the 
>€  regarded  as  favourable.  The  total  declared  value  of  ex- 
month  last  past  was  £10,489,339  against  £10,413,586  in  the 
4,  and  £8,045,155  in  1803,  which  is  an  increase  as  contrasted 
ner  period  of  only  £75,753,  but  over  the  latter  the  increase  is 
Tie  chief  alterations  in  exports  have  been  an  increase  in  tlie 
kali,  arms  and  ammunition,  beer  and  ale,  cotton  manufac- 
are  and  cutlery,  linen  manufactures,  machinery,  seed  oil, 
wool,  and  woollen  and  worsted  yai-ns.  On  the  other  hand, 
en  a  decrease  in  coals  and  ciilm,  cotton  yarn,  haberdashery 
f,  linen  yarn,  metals,  silk  manufactures,  spirits,  and  woollen 
manufactures.  With  regard  to  imports,  there  has  been  an 
;  in  raw  cc-tton,  raw  silk,  thrown  silk,  woollen  manufactures, 
igar  ;  but  a  falling  ofl'  in  flax  and  hemp, leather  manufactures, 
I  linseed,  tallow,  wool,  coffee,  spirits,  and  wine.  As  respects 
>  has  been  an  increase  in  the  importation  of  oats  and  Indian 


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540 


Trmlc  of  the  United  Kingdom. 


com ;  but  ft  decrease  in  wheatj  barley,  peas.  beemSj  and  wbeat-i 
flour.  Ill  the  case  of  proviHioiiR,  tbere  has  Deeti  an  iocrease  in  s 
butter j  and  eggn ;  witb  a  decliue  in  bacon  and  bafns^  &alt  beef,  cli 
Isufd.  The  annexed  table  will  exbibit  the  ohanges  in  the  Yariotu 
enumerated : — 

Exports. 


Coals  and  calm  ..* tons 

Gorton  manufnctnres yards 

Cott^jn  vHrn        ..«  ...  lb*. 

Haberdai«hery  and  miUincry valuf?  S, 

Linen  mannfacturcB     ..,         ..,         ...    yjirdjs 

Linen  vara lbs. 

Iron,  pig-  .,• tons 

Ditto,  railway »..       „ 

Copper,  unwron^Kt      cwts. 

Ditto,  dhccts,  nailft,  &e.  ...        ♦„       j, 

()il,  Beed  ♦* galionn 

fc?ilk  manufactures         ,„         .„         ...  value  £ 

DittOj  thruwn .,         ,^.      11m, 

spirits,  Ikitiiih gallons 

Woollen  clotb»,  &e. yards 

Woollen  and  worat+^d  yarn      ...         ...      lbs. 


1804. 


568.851 

114,565,058 

4,74.S,f)54 

204,625 

14,5.0,426 

2,738,083 

20.099 

26,836 

0,173 

33,323 

478.043 

llt;,441 

34/292 

398.272 

1.999,746 

l,93a,17t> 


hrrottTS. 


Cocoa 

CoflTce      

Wheat 

W^heftt-mefil  and  flonr 
Ciitton,  raw       „,         •„ 

Flax        

Hemp      „.         ...  .„ 

Ilide^.  tanned,  &c* 
Lentber  manufactnros  ... 

Butter     

Cheege » 

Ftax- seed  and  lingered  ... 

Silk,  raw 

Bilk,  thrown 

Silk  man  It  file  tores 
Spirits     ... 
Sngar^  unrefined 

Tallow 

Tea 

Tobacco  

Wine 

Wool       ...        _        ... 
^nnllcn  njanufncturejt... 


lljs. 

130,715 

VI- 

4.904,956 

qrs. 

2,27^2,179 

CWtg, 

521.074 

ft 

81,(;39 

I, 

1 82.017 

»f 

23,(56 

lbs. 

67,63« 

pairs 

720,73*1 

Ott-ta, 

25  202 

M 

10,807 

qrs. 

40*726 

lbs. 

550.478 

*• 

4,085 

107,251 

gallons 

071,131 

cwti. 

27  V  562 

If 

n:im 

lbs. 

3.327,773 

1* 

1.45t^..467 

gallons 

1.04 

lbs. 

1,97 

vakio  £ 

5  )  J  fu 

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Iflanetarj  | ntellrgenct. 

MONETARY  REVIEW  FOR  MARCH. 

of  financial  and  commercial  affairs  is  not  very  satisfactory. 
3re  is  an  abundance  of  capital,  with  the  expectation  of 
especially  after  the  payment  of  the  dividends,  no 
parent  in  trade,  and  we  are  looking  for  further  failures, 
rincipally  be  in  the  India  and  China  departments,  and 
American  firms  will  in  all  probability  have  to  suspend, 
general  matter  of  complaint  the  last  fortnight  that  discount 
ve  BO  gradually  and  permanently  decreased.  Before  that 
ure  of  Messrs.  Attwoods,  Spooner  and  Co.  had  caused  a 
ncy  for    money,    but  it  soon  passed  away.     The  state  of 

England  account  warrants  a  reduction  from  4^  to  4  per 
le  Bank  of  France,  though  with  a  quotation  now  at  3^ 
1,  it  is  believed,  shortly  descend  to  3  per  cent.*  II 
slieved  that  cheap  money  may  last  for  a  short  period ;  but 
m  war  were  settled,  and  a  drain  of  gold  was  to  set  in  to  New 
lilt  would  be  very  soon  apparent.  The  money  markets  on 
are  daily  becoming  more  easy,  and  if  the  weather  were  to 

would  speedily  be  a  revival  among  the  operators  in  stocks 

for  English  securities  has  not  exhibited  much  strength,  And 
to  be  made  to  invest  in  other  stocks  and  shares.     The  divi- 

the  new  loans  and  new  compauies  are  so  far  in  excess  of  3 

though  there  may  be  a  little  additional  risk,  the  public  take 
Lity  of  the  change  in  the  situation.  The  government  broker 
e  month  has  been  purchasing  Reduced  and  New  3  per  Cents., 

it  is  expected  his  transactions  for  the  present  quarter  will 
nge  Bills  and  India  Bonds  have  not  varied  to  any  extent ; 

still  are  comparatively  low. 

jks  have  not  moved  in  any  great  degree.  Speculation  con- 
3  place  in  Spanish  Passive  and  Spanish  Certificates;  and, 
things,  the  late  advance  has  been  fairly  supported.  Turkish 
y  be  described  as  good ;  a  fresh  financial  operation  is  contem- 
h  this  special  class  will  be  absorbed.  The  adjustment  of  the 
strength  to  prices.  Mexican  is  heavy,  but  it  will  recover, 
;ted  business  will  increase  in  this  description  b^ore  the  close 

ares  have  been  very  good.  The  tendency  is  in  the  right 
there  is  a  greater  disposition  among  the  public  to  purchase, 
ed  that  increased  activity  will  prevail  in  the  course  of  the 
ths  in  this  department,  the  bankers  and  jobbers  having 
eely  themselves.     Foreign  and  Indian  shares  are  also  rather 

ures  and  Credit  and  Finance  shares,  after  being  steady,  have 
The  late  extensive  depression  has  brought  in  buyers,  who 
?  leading  descriptions  and  hold  them  for  higher  prices,  which 
be  obtained  during  the  summer.  We  expect  to  see  much 
or  the  principal  olasses  before  June  next. 

ors  of  the  Bank  of  England  have  at  the  last  moment  lowered  the 
nt. 

V.  42 


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542  Notices  to  CorrespomhnU. 

The  produce  markets  manifest  great  depreHsion.  The 
till  the  spring  is  much  further  advanced  of  rc&Dverj',  and 
considerable  to  place  affairs  in  a  satisfactory  Bituation.  T 
is  extensive ;  tea,  on  the  average,  exhibits  large  losses,  a: 
adverse  margin  is  considerable. 

THE  GRAIN  TRADE, 
The  markets  for  all  descriptions  of  grain  continue  comf 
mate.  At  this  season  business  is  generally  (lull,  farmern  t 
field  operations.  Most  of  the  samples  brought  to  market  h 
condition,  and  the  importations,  particularly  of  wheat,  hav< 
usual  average.  Within  the  last  week  or  tw^o  wheat  hiM 
demand,  and  prices  show  an  advancing  tendency*  G<K*d 
has  been  in  some  request,  at  full  prices.  Oats  in  stea 
rather  dearer.  Beans  and  peas  without  materiiil  alteral 
official  quotations  were : — ^Wheat,  38«.  3d.  per  qr, ;  ba 
per  qr. ;  and  oats,  21«.  4<i.  per  qr. 

The  Gazette  returns  for  England  and  Wales  have  bean 

Week  Wheat.  Weekly 

ending,  Qrs.  aold.  Averaire.  Dtity. 

1866,  *.    d.  M.     d. 

Feb.      25  79,804       ...        38    2        ,„        10 

March    4  87,168      ...        38    6        .,,        1     0 

„       11  69,297       ...        38    4        ...        10 

„       18  70,688      ...        38    3        ...        10 

The  importations  since  the  harvest  of  18G4  have  been  :- 

Wheat,  Other  C 

Cvrt».  C\v^ 

Thirty-one  weeks  ended  18th  Feb.  10,557,621  U,53t) 

Four  weeks  ended  18th  March         ...         663,145    1 ,456 

13,220,766  15,986 
And  the  weekly  averages  have  been : — 

Thirty-one  weeks  ended  18th  Feb.      ...       340,000  469 

Four  weeks  ended  18th  March    159,000  4t)l 

Less    181,000         G8 

^  STATE  OF  TRADE. 

!  Business  has  received  a  check  in  the  prii%'iiicea  throu^ 

failure  at  Birmingham.  The  weather  has  also  provetl  i 
however  the  Sprmg  season  were  to  prove  fine,  there  w 
recovery. 

♦  

NOTICES  TO  COEEESPONDENTS. 

We  have  arranfred  in  ftitnre  to  iggiie  a  donble  number  in  Ftlni:in  nr. 
formerly  in  Mav  and  November.  This  has  been  rendorod  n^ci  ssftry  l  ly 
tho  Meetings  of  tlie  Banks  and  Disconnt  Companies,  which  will  he  nhrn,! 
in  the  pa^^es  of  the  Uotiker^s  ifagaeine.  We  shall  alM>  Rive  the  |.fr<^'u  ct 
Credit  and  Finance  Companies  as  they  are  more  or  ksi?  anatK^intc 
that  our  sul^scribers  and  readers  can  refer  to  them  wiUmnt  diffical 
will  please  forward  ccramunications  addressed  to  the  KdiU^r,  Ncft^ 
scriptions  and  orders  as  iiHiial  to  Messrs.  GrooralnjiTeo  i\rA  i^-anh, 
Messrs.  Waterlow  and  Sons,  Carpenters'  Hall.  Londoi  Wall, 

Bakkikg  ANT)  FiKAwriAj.  Anecdoti  s.— It  will  be  pen'tivtd  fio^o  tioHo 
Editor  of  the  £ankerg'  Magazine  is  collecting  and  arrandny  a  seri^  of  1 
cial  Anecdotes.  Any  conlribntions  from  snbscriberK  and  rradcrB  of  i 
thanlcfnllv  rtreived.  ]>nrti<T.lflr1y  if  the  Knl<ject-matt<?r  ^hall  nut  have  prt 
print.    Nothing  pers^mal  or  offensive  will  receive  pubhtntj. 


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JANK  OF  FRANCE. 

DEBTOR. 


Ch2. 

Iklarch  9. 

March  16. 

March  23. 

0,000    0* 

V.             c. 

182,500,000    0 

F.             C. 

182,500,000    0 

r.           0. 
182,500,000    0 

9,191  80 

7.025,919  37 

7,035,535  22 

7,038,528  72 

5,750  14 

22,106,750  14 

22,105,760  14 

22,105,760  14 

0,000     0 
7,175    0 

4,000.000    0 
773.343,825    0 

4,000,000    0 
777,523,125    0 

4,000,000    0 
774,556,626    0 

2,556  56 

6,762,618  65 

6,011,185  95 

6,656.367  66 

0.379  18 
i,5;H)  62 
1,708    0 
1,401  75 

87,134,668  33 

139,91i5,570  96 

27,i»60,395    0 

1,73S,465  75 

83.837,972  61 

120.017,424  35 

23,>^  10,073    0 

1,5»9,367  75 

10.5.296.675  62 

122,!»07,2S1  83 

25,091, ,ss9     0 

1.11^7,162  75 

7,779  80 

6,716,8ai  76 

7,176,078  82 

7,598,669    0 

9,iU    5 
),l6i)  62 

2,789.444    5 
9,017,153  91 

2,789,441    6 
11,012,890  55 

2,789,441    6 
8,409,M)2  14 

),146  52 

1,269,110,561   92 

1,268,108,447  47 

1,271,348,099  67 

CREDITOR. 

t:h2. 

Karch9. 

March  16. 

March  23. 

c. 

».          c. 

».          c. 

».              0- 

5,854  17 

410.774,986  16 

424,981,230    8 

«5,364,708  40 

8,471  33 

696.436  27 

7,774.886  92 

669,736    7 

2,232  74 
0,.'i^l2    0 

2^.407,467  38 
274,y00,453    0 

2-10,228,184  27 
273,947,474    0 

239,803.986  40 
269,669,271    0 

2,ft31  65 
9,300    0 

15,648,131  55 
8,110,400    0 

15,717,R31  55 
2,871,1^10    0 

16,Ro4,131  65 
2,8<HJ,339    0 

9,500    0 
1,100    0 

13.638,100    0 
8,101,600    0 

13.933,900    0 
8,296,800    0 

14.006,000    0 
8,473,000    0 

4.400    0 
11,300    0 

28,01«J,900    0 
16,8i6,900    0 

28,195,400    0 
16,108,500    0 

28,a32.300    0 
16,529,900    0 

J5,700    0 
>9,2o0    0 

401.300    0 
283,5iO    0 

487,100    0 
286,850    0 

4iM,400    0 
323,650    0 

)O,000    0 

60,000,000    0 

60,000,000    0 

60,000,000    0 

50.7W  14 
>6,737  91 

12,980,750  14 
36,650,737  91 

12,030,750  14 
36,656,737  91 

12,980,750  14 
36,656.737  91 

)0,000    0 

100,000,000    0 

100,000,000    0 

100,000,000    0 

7,776    0 

8,420,483    0 

8,420,483    0 

8,420,483    0 

7,70.->  31 
>^^,'s90  37 

646. a54  M 
8,52o,3ll  »» 

1,269,110,561   92 

e53,r47  29 
6,567,303  31 

829,258  19 
8,933,550    1 

A\l¥i   52 

1,258,10S,447 

71,271,318,009  67 

Digiti 


ized  by  Google 


S44 

FLUCTUATIONS  IN  ENGLISH  AND  FOREIGN  STOC 
RAILWAY  SHARES. 


Price  on 
Feb.  S5th. 

Higfaert. 

Lowest 

Enqlish  Fuvds. 

GonBolB           

88i  to  89| 

894 

88J 

Exchequer  BillB        

StoSpm 

7  pm 

3pm 

FoBsiGK  Stocks. 

Brazilian        •••        •••        ••• 

.i_ 

100 

90 

Buenoe  Ayree            -. 

-  — 

92 

904 

Chilian           



103i 

103 

Dutch  2}  per  cents 

63i 

634 

621 

Mexican          

26} 

27 

261 

PeruYian  4^  per  cents. 

84i 

844 

80 

Russian           

92i 

894 

481 

48f 

474 

Turkish  6  per  cents. 

92J 

944 

911 

Ditto  4  per  cents. 

99i 

984 

Railway  Shasm. 

Brighton         •••        ••«        ••• 

103i 

1064 

1024 

Caledonian      

1314 

132i 

130i 

Great  Eastern            

46* 
131| 

471 

444 

Great  Northern         

132f 

128 

Great  Western           

734 

764 

72| 

Lancashire  and  Yorkshire    ... 

116i 

1171 

114 

London  and  North  Westenii.. 

1204 

121 

116| 

Midland          

1364 
804 

139 

131 

North  Staffordshire 

80f 

76 

South  Eastern           •••        ••» 

86} 

874 

831 

South  Western          

991 

994 

96 

York,  Newcastle^  and  Berwick 

1114 
102 

nil 

106J 

York  and  North  Midland    ... 

102t 

98J 

East  Indian 

100 

1024 

991 

Northern  of  France 

40 

40i 

40 

CREDIT,  FINANCE  AND  DISCOUNT  COMPJ 


Aottnliaa  Mortmre,  Land 

imd  Finance  (Um.) 
CDQB<^idated  Disooant  (Lini*) 
Contnot  Oorponttion  (lim.) 
Crtdit  Fonder  of  Manritias 

(Limited)     

Crfidit  VVmeitr  aad  MoMlier 

of  England 

Ditio  

DiBConni  Cknrporation  (Lim.) 
nmfst  India  Financial 
Xgrptian  Oommeroial  and 

Trading       

Xnglish  and  Foreign  Credit 
Fixtandal  Gorporaoon 
Financial  Dieooont  (Lim.)... 
General  Credit  and  Fiaanoe 

of  London  (Lim.) 

Izttemationfll         Financial 

Society  (Lim.)       , 

Ihtemaaonal  Contract 


P»l&.    la«Ml 
Prteet. 


8 

10 


u 

60 
100 


50       10 


90 

20 

100 

60 

20 
60 
100 
60 


SO 
60 


10 


6  10 

81  8 

20  14i 
74 


4 
10 


! 


? 


Imperial  XercantOe  Credit 
(Lim.) 

International  Land  Qredit ... 

Joint  Stock  Disooant  njaa^ 

Land  Credit  of  Irdaaa 

Laud  SeuuritieB         

London  Financial  Aaaooi^ 
tion(Lim.)  ...       ^. 

London  Mercantile  Diaoooa* 

Manritina  Land,  Credit  and 
Agencv  (Lim.)        

National  IMfloonnt  Co.  (Um^ 

National  Financial  (Um.)  ... 

Oriental  Financial    ^. 

Ottoman  Financial  Associa- 
tion (lim.)   

Bod^ttf  Finanoiaire  d'ISgypla 
(lim.) ^ 

Boath  African  Mortsage  and 
TnTestment  (Llm.| 

Warrant  Finance  (Lim.)    ... 


Digiti 


ized  by  Google 


545 


JOINT-STOCK  BANKS. 


llurc. 

Paid. 

latest 
PncM 

JL 

M 

1 

100 

50 

123xd 

50 

25 

6lxd 

50 

10 

74 

100 

25 

341 

100 

15 

2H 

20 

6 

.a 

£0 

12^ 

fiO 

10 

74 

20 

24 

m 

40 

40 

74 

40 

40 

71 

25 

25 

31 

100 

50 

150 

20 

7 

54 

100 

25 

22 

60 

74 

H 

100 

20 

15 

10 

10 

17 

50 

25 

41 

20 

10 

lOi 

50 

50 

*H 

15        19 
20        32 


26 

53 

60 

118 

25 

42 

20 

... 

25 

38 

25 

38 

25 

... 

4 

m 

25 

19 

15 

114 

5 

6 

5 

4 

20 

20 

15 

12xd 

15 

134xd 

25 

26 

23 

23 

10 

8 

20 

314 

10 

17 

25 
5 

26 
5 

4 

1. 

London 

Share.   Paid    latest 

PricM 


London  Bank  of  Mexico  and 

South  America  (Limitc<l) ' 
London   Bank   of   Scotland 

(Lira.)  

London  and  Bi-azilian  Bank 

London.  Birrainifham  &  Sth, 

Staffordshire  (Limited)   ... 

London,  Buenos  Ajtcs  and 

Kiver  Plate,  Limited 

Ditto,   New,    issued    at 

14  pm 

London  ChartenKl  of  AnstraliA    20 
JyDndon  and  County  Bank  ... 
London,    Hamborg,     Cont. 

Exchansre  (Lim.) 

London  Joint  Stock  Bank  ... 
London  &  South  African  Bk. 
London  and  South  Wcaiem 

(Limite<l)      

Ditio,  ditto.    New 

London  and  Venezuela  (Lim.) 
Txmdon  &  Wostmin-st^r  Bank 
Merchant  Bank  (Limited;  ... 
Mercantile  Exchanere  (Lim.) 
MetropoUtan  and  i*rovincial 

Bank,  Limited        

Ditto,  New  

Midland  Bank  (Limited)  ... 
National  Bank.^        ...        •- 

Ditto,  New  

National  of  Liverpool  (lim.) 
National  Provincial  Bank  of 

England       ..,        

Ditto,  New  

Ditto,  ditto  

New  S<juth  Wales      

New  Zealand  Bank  Corpora- 
lion.  (Limited)        

Ditto,    New    ...        — 

North  Western  

Oriental  Bank 

Do.  New,  issued  at  20  pm. 
Provincia'    Banking   Corpo- 
ration   

Pro^-incial  Bank  of  Ireland- 
Ditto,  New  

Scinde.  Punjaub  and  Delhi 

(limited)      

Ditto,  i88ue<l  at  2  pm.  ... 

South  Auiitralian       

South  Eastern  (Lim.) 
Standard  of  British  Africa 

(Limited)      

Ditto  ditto 

Do.  New,  issued  at  6  pm. 
Union  Bank  of  AnstraUa  ... 
D  nion  Bank  of  Ireland,  Lim. 
Union  Bank  of  Loudon 


10       8ixd 


100 

13 

n 

100 

40 

43 

100 

22 

13 

100 

40 

48 

25 

10 

12 

20 

2) 

24 

50 

20 

m 

100 

19 

24 

60 

15 

^•>} 

20 

20 

211 

100 

20 

204 

100 

u\ 

50 

10 

"ii 

100 

20 

w*^ 

100 

25 

2»ixd 

50 

10 

7* 

100 

30 

18} 

100 

10 

»4 

100 

20 

174 

50 

30 

95 

50 

20 

H4 

100 

10 

17 

100 

43 

157 

20 

12 

... 

20 

12 

44 

30 

20 

43 

10 

1 

14 

10 

1 

20 

5 

"9 

25 

25 

.%^ 

25 

25 

50 

6 

:j 

100 

25 

87 

10 

10 

20 

10 

111 

20 

2 

25 

25 

35 

25 

10 

10 

100 

2.-» 

2*? 

100 

25 

x^^ 

100 

10 

S,r 

25 

25 

53  t 

100 

23 

1».^ 

50 

15 

52 

43 


Digiti 


ized  by  Google 


£ank  of  (Siijjlait^  S^^ckl^  ^e tunig, 

Acootmt,  pursuant  t^j  tlio  Act  7Lh  and  9th  of  Victoria,  cap.  32,  Tor  the  Wockd  and 

l^SUE  DEPART MTNT. 


liOS. 
March  1, 

ISfifl. 

March  IS, 

Kftt«8  iMtiml          

1' 
2a.6fll,30O 

28.560,M0 

28.740,m 

Government  ileljmittires 

Other  seoun lies   ., 

Gold  coin  iwkI  bullion   ,, ., 

Silvpr  buUion       

11,(115,1011  '    ll,015JO<5 
ll,0U.80i>       l;l;fllt»,5&0 

11,016,100 

2H.661,3t¥l  I    28,fie0.5W 

_fS,7«t«i 

Fi  sXKTNXl  DEPARTXtEMT. 


Mrtrch  L    1    Mflrch  8.    '  ilartli  13. 

Proprtatoni' capital      ... 

Beat ,       

PnbUc   dep<Mite   awltaMsm  Bwhe^nwr 

Other  Dopo«it» 

Seven  da^  and  other  Wl9      ...       ». 

£ 

U,56M.00O 
3,sai,ft50 

Ulsa^asi 

*i7»7»5 

li.5fi3.rt<>n 
r.tf77,739 

13,014.702 

U,&33,0W> 
!l,^7,085 

41 

»ft,S4';,i«i 

40,4'Jft,778 

-KXftf*.;s'..' 

Gfjverninent    eecniifeiM    (iiiicludiiiff 
Deail  Weiifht  Ammilice)      ... 

Other  Bwuritiea 

Kotc.1          

Gold  and  SIlTfsr  coin    

1D.803,8W 

8,72«.«1& 

790,OCf 

11.023,211  I    lKn8a,2]l 
l»,828,SaB  '    90.«H,4i8 

M8,017  '         7«l,«83 

a0,845.1tl 

»,429jrj 

«1,<IH.«I 

THE  EXCHANOES. 


ABiatctdvn,  abort 
Ditto     3  mcmtlia 

▲ntwvrp^  ditto    ,., 
BruBBda,  ditto     ... 
Hambarir,  ditto  ... 
Paiia^afaort  ...    ... 

Pwris,  a  moailta  ... 
MauMJllM,  dUto  ... 
Fiankfiiit.  ditto  ... 
T1enna»  ditto 
Tricst«,  ditto.  .  ,,. 
Pctcrwbcrcb,  ditto 
Madrid,  ditto 

Cin3J7.  ditto 

Xietfhorn,  ditto  ... 
Milnn  ...  ,„  ... 
Gcijon,  diLb* ,,,     ... 

Njiplcj*.  ditto , 

Pnlorran,  ditto 
MesMtm,  ditto 

Ziobon  * ,. 

U|H>]to ,. 


Tdmrch  S. 


11 
11 

11 

ss 

as 

13 
3fi 

25 


10 

m 

m 
m 

H 

90 
45 
4S 

11    (in 
11  eo 


Haroti  10, 


ManDh  17, 


85  m 

»    «0 

u  m 
25  m 

flip 


PRICES  OF  BULIIOK, 


illv«r  ta  fiarK  (Btutdaidj 


PerO».  TetChi^ 

£  «*  d.  i    A  A.  a. 

S  17    a  5117    » 

0    0    0  0    0    0 

0  0  0  0  0  a 


Digiti 


ized  by  Google 


PerOt, 
£  t.  d. 

S17  V 
0  5  0 
0    0   0 


reftip  Cirnilatfon  jRetnrns. 

toria,  c.  32;  txtraetedjrom  the  Tmxdos  Guam. 
IVATE    BANKS. 


Author- 
ized 


AVERAGE  AMOUNT. 


Feb.  11. 


I 


Jl 


11,849 
48*461 

37t223 
I7,i8i 
34,ii8 
27,090 

23,695 
75,069 
15,161 
10,028,' 

48»-77|j 
26,717' 
29,657, 
82,361! 

43,457 1 
55,»53;; 
56.829 
38,816  I 

68,271,1 

33,794'' 

12,745  I 

3,101  I 

25,744 1' 
49,9 » 6  ll 
33,671! 
23,597  = 

5,4361 
25,082 
4«.704l 
49.869,; 
12,045! 
21,527;' 
77,154'' 

9,3871 
13,33211 
4»,304i' 
27,137  ii 
20,674;; 
10,657" 
7  7,400 1, 
86,2i8|^ 
10,664  . 
48,807,1 
ii2,28o|; 
53,392  ' 
69,637 
3  7,**  94 
14,202 

6,681 

6.322 
14,524 
30,372 

19.9/9 
56,59' 

5,778 

58,764 
ZI.901 


Feb.  18.      Feb.  2fi.      March  i. 


£ 

ii,4<;o 
23,288 
19,626 

3.118 
28,324 
14,121 

18,975 
62,89^ 

14,247 
6,040 
21,582 
14,865 
19,027 
52,688 

24,513 
19,612 

35,973 
27,178 
40,958 
23,304 
10,282 

2,573 

13,685 

39,837 
27,920 

"3,439 
3,347 
16,593 
30,806 
28,656 
4.993 
15.991  i 
67,263 

7,484 
10,185 
28,504 
24,660 

6,428 
10,097 
64,238 

81,719 

7,043 

36,089 

82,676 

50.907 
37,710 

2i>543 

0,463 

5,028 

5.3»o 

10,289 

23,195 

19,039 

34.431 

5.216 

,  34,215 
'1  20,484 


£ 
11,994 
22,791 
19,661 

27,5»o 
13,461 
18,930 
61,036 
13.975 
5,846 
21,180 
14,034 
18.453 
5C*»589 
24, 100 

19.573  , 
34,006 

26,775  I 
41,615  , 
22,660  • 
10,121 

2,696 
13,637 
38,430 
26,310 
13,141 

3.307 
I7»947 
30,426 
26, 170 

4.5i8 
15.076 
67,617 

7,212 

9,701 
27,760 
24,900 

5 1 944 

9,922 
64,070 
8c, 520 

6,285 
38.157 
80,821 
49.807 
36,527 
20,510 

6,  158 

5.045 
6,183 

9.654 
22,073 
18,189 
33.201 

i;,ooi 
33,662 
19,679 


£ 
11,225 

»2,359 
18,367 
3,3'6 
27.505 
13,310 
17.606 

59.584 

14,067 

6,086 

21.293 
13,619 

'8.574 

50.582 
23,971 
20,573 
35,819 
25.265 
59,170 
22,122 
10,844 

2,543 

12,780 

37,876 

25,669 

12,668 

3.233 

17,331 

29.526 

25.943 

4,807 

14,630 

67,559 

7,143 

9,346 

28,033 

26,011 

5,664 

10,570 

65.312 

84,118 

6, 110 

37,670 

79.3»2 

49»537 

36,131 

20,295 

6,057 

4.984 

5»634 

9.9»5 

22,005 

18,759 
33,5«7 
4.957 
33,»»4 
2o,5«3 


X 

11,157 

22,897 

18,566 

3,470 

27,487 
13,710 
18.593 
59,978 
13.990 

6,503 
21,191 
13,686 
18,034 
50.31+ 
24.177 
21,062 
35.360 
25,335 
39.149 
2*,  494 
»i.540 

2,780 
12,921 
38,414 
26,184 
12,718 

3.152 
17,081 
29,365 
26,375 

4,599 
14,258 
70,027 

7,-00 

9,036 
29.565 
28,849 

5.745 
10, "182 

62,737 

84,508 

6,452 

36,57^ 

78,9^8 

49.737 

36,601 

20,095 

5.918 

5,250 

5.484 

10,197 

22,407 

19,011 

34,009 

5.215 

32.42J^ 

19,620 


Digiti 


ized  by  Google 


548 


WEEKLY    RETUENa    OF    BANKS   OF    ISSUE, 


KA.ME  OF  BANK, 


Anthor- 


ATEEAG 


Feb.  IL  I  Fab,  la 


£ 

54iS53 
15,990 
17,194 
19,405 
42,483 

4i»93 
49,6ix 

66  3>iccsLer  Bnnk , 3^»32^^  (  Hj^^S 


58  Ipswich  &  Ncedhara  Market  Bank 

59  Kentish  Bank— Mercer  &  Co,   .. 

60  Kington  and  lUdnorsbireliank.. 

61  Kuaresborougli  Old  Bank  .., 

62  Kendal  Bank    ...,.,- .-Il  44,^*^3 

63  LongtoT  Statrordsbirc  Bank J      ^^624 

64  LeedsBank  » 1    53.357 

65  l>cd«  Uniun  Bank ..»,.,||  ^7A59 


£ 

80,699 

19,895 

i  6,0  50 


67  LcAvcs  Did  Bank 


44,8  J  6 


68  Lincoln  Btmk ..-.!  100.341 

69  Llimdm ery  Bank &LlandiloBflnk*  32,945 

70  Lough  bo  runj^'h  Bank    ..... -■  7i359 

71  Lyniinje^ton  Bank —I  5i°3^ 

T2  LyiinKes^isandLincolnsliircBauk  42,817 

73  Lynn  Kegisand  Norfolk  Bank  ...  13,917 

74  Macclesfield  Bank    , -"-  15**^0 

75  Manningtrce  Bank  .,„,,....,..*,.-.  7M^ 

76  Merionethshire  Bank   „,.....,  10,906 

77  Miners' Bank    ......,.,...,. .■•■  18,688 

78  Stanmouthsltire  A^^ricultural  and 

Commercial  Bank  ,.,. 29*335 

7Q  Monmotnh  Old  Bank  .,,.....,...-,■  ^^fi^S 

So  Newark  Bank ^^,788 

Si  Nevv'nrk.ind  SKmtord  Bank   ,.,...  B^.^^S 

81  Newbury  Bank 3^r787 

83  Newmarket  Bank„„..,.., ^3,09^ 

84  Norwich  Crown  Bank  and  Norfolk 

and  tjuffolk  Bank  , 49.^?' 

8 <  Norwich  and  Norfolk  Bank   ...„.  105,519 

86  NoHinsjham  &Nottinghamsh.Bk,  10,866 

87  Naval  Bank,  Plymouth   ,, ^7.3*1 

85  NewSarnmBk.— rinGkncy^jBros.  15,659 
89  Kottinghani  Bank    .................  3^047 

go  Oswestry  Bank     *.. , 18,471 

91   Oxford  Old  Bank..... 34i39i 

91  Cld  Bank,  Ton  bridge -  Uf^^j 

93  Oxfordshire  Wiiney  Bank  **♦.-.  ..  11,553 

94  Pease's  Old  Bank,  Hull  ......,*,.-  48,807 

95  PenTiance  Bank     ..„„**......-  iit405 

96  Pembrokeshire  Bank  12,91c 

97  Heading  Unnk^ — Simonds  &Co,.,.  $7t5^9 

98  Beading  l^k.^Sicpheti*.  Bland  jr  ft  Co.  45*17^ 

99  Richmond  Bank,  Yorkshire    ......  6,889 

100  Kochd ale  Bank    „„„„...,.........  5^590 

loi  Boy ston  Bank  ......,.,,*...„,.  1^393 

102  Bngby  Bank *.... 17*25° 

103  Rye  Bank  „„,....  » 29,864 

1 04  SalTron  Waldcn  k  NontiEsjjex  Bk.  4.7.6^6 

105  Salop  Bank -  22,338 

106  Scarborough  Old  Bank 14*813 

to?  Shrewabnry  Old  Bank 43»*9i 

138  Sittinirbonrnc  and  Aliltou  Bank  ,,  4.789 

1 39  Southam  pion  Town  &  County  Bk.  1 8,5^  ? 
lie  SoathwcU  Bank    .., M»744 

111  Soathampton  and  Hampshire  Bk.  6,770 

112  StalFord  Old  Bank  ............**,.*.  14,166 

Hi  Sta  in  fo  rd  an  d  Rutland  Ban  k  ....  *  3 » |8  5  ® 

114  Shrew.sbury  and  Wcl all  Pool  Bank  ^5i33^ 

115  Taunton  Bank.,*... .,.,»..  29i799 

116  Tarinock  Bank *..,i....i.*^  Ui4*\ 

Digitized  by  VjjOOQ I' 


29,050 

85*137 

8,9^8 

7,0^5 

JO, 810 
11,389 

S.957 

4*739 

18,638 

28,9iz 

3ifi79 
20,905 
42,036 

i4»=45 
17,140 

48,385 

79,480 

8,491 

22,£lS 

7i74i 
24,439 

9i^95 
341^76 
10,176 

9,090 
44,061 

8»6i6 

8»8i6 
27,066 
2d, 1^4 

1,657 
10,165 
10,467 
11. '53 
131640 

9t94* 
53,446 
3i»95= 

3*330 
10,502 

8,565 

2,189 
'»*35* 
17 1^75 
19,862 

ao, 185 
9*»5«^ 


£ 

54.  ic< 

15. 4r 

17*35' 

t9i3^: 
43.27- 

5 1^6^ 
5i,i8' 
34,87 
23,00 
38,67 
R4,  62 

8,81 

30,^5 
11,64 
11,3c 

5,76 

4,59 
18,32 


26,8c 

21,  H 

39t?^ 
14,1: 
16,68 

46, 6« 

78,4^ 

7>9^ 

2i,i 

7*5" 
13,0! 

9i2: 

3^,8- 
9i7 
910 

43,5 
8,2 
8,0 

a6,6 

»7,8 

5.4 
1.6 

10, c 
10,4 
10,9 
22,8 
9,2 
23, c 

30,4 

3.- 
9,<5 

8,4 

17.' 
19,1 


WEEKLY    RETURNS   OK    BANKS    OF     ISSUE. 


540 


OF  BAl^^K. 


Author-! 
i2cd  ] 
Issue. 


5ank 

i  Devonshire  Bank ... 
md  Kettering  Bunk., 
and  Cbesbam  Bank..i 
Id  Bank   i 

Cornwall   1 

d  Bank    

Bank    ! 

I  Warwickshire  Bank 
Sank,  Somerset  

Bank  

Bank    

\lresford  &  AltonBk. 

)ld  Bank 

and  Derbyshire  Bk. 
d  Lincolnshiro  Bank 

B  Bank , | 

Id  Bank  

Bk.— H.  &W. Fryer! 

id  Suffolk  Bank 

orfolk,&  Suffolk  Bk. 


£ 

10,026 

13,470  i 

>»,559' 

13,531 

10,801 

17,003 

15,^36 

17,064 

30,504 
6,528 

46,158 
14.258 
25.89* 
1 6,46 1 
37,602 

59,713 
7,602 
87,448 
11,867 
53,06c 
13,2*9 
46,387 

JOINT  STOCK 

morland  

Ling  Company 
iing  Company 
:t  Banking  Company 

ehaven 

mercial  Banking  Co. 
5ter, and  Staffordshire 

ikin(r  Co.    •• 

N.Derbysh.Bk.  Co. 
Inion  Banking  Co.... 
Warwickshire  Bk.  Co. 
>n  Banking  Company 
mcester  Banking  Co. 
iberland  BankingCo. 
nd  District  Bank  ... 
3t  Bromwich  Bk.  Co. 
rbyshire  BankingCo. 
it.  Joint  Stock  Bk.  Co. 
e  Banking  Company 

Stock  Bank 

Banking  Company 

Company   

lercial  Banking  Co... 
ddersfield  Union  Bk. 

ing  Company a 

h  and  Claro  Bk.  Co. 

iking  Company  

Banking  Company... 
Jndsey  Banking  Co.. 
'riors  and  Warwick- 
king  Co.  ..»• 

'enbury  Bank 

nson's  Notts.  Bank... 
id  Notts.  BankingCo. 
incialBk.  of  £ngland 
banking  Company  ... 


AVERAGE  AMOUNT. 


Feb.  11.      Feb.  18.  ^  Feb.  26.     March  4, 


£ 

6,920 
10,400 
11,783 
13,032 

6,469 
16,203 

9,338 

6,450 
18,122 

2,191 
44,016 
14,265 
10,830 
16,087 
34,538 
36,795 

3,250 
51,016 
'9,609 
41,120 
10,186 
39,817 

BANES. 


£ 

£ 

£ 

6,887 

7,079 

7,213 

9»707 

9,610 

8,9*52 

1 1 , 1 60 

1 1 . 340 

11,834 

12,973 

12,928 

13,175 

6,107 

5.625 

5,601 

15.512 

15.016 

15.41^ 

9,105 

8,498 

8,335 

6,246 

6,092 

6,130 

18,030 

18,050 

18,277 

1.893 

2,010 

1.937 

42.244 

4»,794 

42,175 

13.936 

13.939 

14,245 

10,285 

10,332 

9.715 

16,074 

15.263 

16,045 

34,191 

33.214 

32,581 

35.400 

35.964 

35,315 

3.272 

3.227 

3,903 

49.236 

48,373 

48,306 

9,093 

8,606 

8>217 

40,670 

38,824 

38,081 

9,165 

8,725 

9.355 

38.856 

38.456 

38,53* 

12,225 

10,991 

11,815 

12, coo 

9.563 

9,352 

9,562 

9,724 

49,292 

49,588 

50,186 

48.553 

9,418 

8,195 

8,626 

8,726 

32,681 

30,278 

29.682 

30,790 

20,084 

20,001 

20,310 

20,002 

60,701 

44,830 

44.175 

43,388 

10,421 

9,730 

8,877 

8.483 

35.395 

23,850 

24.213 

25.123 

2«,734 

14,491 

14,161 

14.857 

16,251 

12,723 

12,832 

12.591 

•44.352 

ICO, 350 

98,530 

99,288 

25,610 

24.135 

24. 144 

24,210 

19,972 

19,784 

20,001 

19,198 

37,696 

29, 648 

30,084 

29,598 

20,093 

19,121 

18,328 

18,450 

26,134 

22,284 

25»597 

23,513 

»55,920 

137,029 

136,685 

135,490 

18,534 

16,199 

16,472 

16,310 

37.354 

33,187 

34.451 

33,900 

29,333 

28, 305 

28,329 

28,036 

13.733 

11,612 

11,738 

12,152 

44-137 

36.752 

36,518 

36,409 

1.503 

1.471 

1.483 

1.510 

28,059 

24.635 

24,828 

24.725 

64,311 

57,457 

62,598 

63,239 

86,060 

59,840 

57.075 

57,242 

51,620 

49,418 

47,246 

46,655 

13,875 

«i.559 

11.857 

11,162 

10,215 

9.003 

8,752 

8,465 

35.813 

27,155 

24,  609 

24,649 

29,477 

24.539 

23.922 

23.730 

442.371 

395»i45 

392,900 

391.414 

63,939 

39,468 

43.434 

38,386 

11,403 
9.255 

48,171 
8,969 

30, 180 

19,765 

43,449 
9,330 
25,700 
15,284 
12,648 
98,245 
23,402 
19,683 

29.953 
18,800 
22,823 
136,185 
16,136 
33,060 

29,552 
11,766 
36,002 

1.491 
25,010- 
63,784 
55.646 
46,672 

10,733 

8,789 

27,099 

25,121 

397,411 
38,520 


Digiti 


ized  by  Google 


560 


WEB  ELY    RETUftNS   OP    BANKS   OP     tSSUK, 


NAME  OP  BANK. 


I  Author 
ixed 


55  KorthnroptonshiTe  Union  Bank 
36  North amptoii shire  Bunking  Co. 
57  North  and  South  Wales  Bank.    . 
3S  Fare's  Le  ice  sic  rah  ire  Banking  Co.^ 

39  Sndtllewordi  BiUiking  CompuDjr  .*. 

40  Sheftidd  Banking  Company ,., 

41  Statiifgvd,SpnldingScBosLonBk.Co, 
4Z  Stuck<!y'B  Bunking  Company 

43  Shropshire  Banking  Company.,,,., 

44  Stourbridj^c  atid  Kidderminster  Bk 

45  Shcthelrl  mid  H&llamsliirc  Btink  .,, 

46  Sheffield  &  Rothcrham  Jt,  Stock  Bk. 

47  Swidcdalc  and  Wcnslcydak  Bank,. 

48  Wolverhampton  &  Statlbrdsh.  Bk.. 

49  Wakefield  and  Barn  si  cy  Union  Bk. 

50  Wliitclmvcn  Joint  Stot  k  Bank     .., 

51  Warwick  and  LeaminKlon  Bk.  Co. 
SI  West  of  Eiig.&  S. Wales  DistrictBk, 

53  Wilts  &  Dorset  Banking  Company 

54  West  Biding  Union  Banking  Co.,,. 

55  Wliitchnrch  and  Ellesmere  Bk,Ca 

56  Worcester  City  and  Coiinty  Bk.  Co, 

57  York  Union  Bnnkini;  Company  ... 

58  York  City  and  Connty  Banking  Co. 

59  Torkahijre  Bunking  Company  . 


£ 

84,55^ 
z6,4oi 
63,951 
I  59.500 
8,1  zi 
35.843 

I  47,95* 

I  56,830 

23,5-4 

54,372 
35*378, 
1 4,604  i 
31,9161 
37,1^1 
83.535 
76,16a 

54,019' 
7.475 ' 

6,8481 

7i.i4Ci 

94.'595 


AVERAGE  AMODNT. 
Feb.  IL      Fol,  18.      Feb^fi.    1 


22^3* 


£ 

63,38? 
19,468 

5^235 
55-»o5 
335 
34,495 
4fJ.357 

-98,318 
37.940 
52,498 
21,587 
52*787 
44,890 
26.44S 
14,004 
ai,7to 
27,651 
8 1 , 609 
73.  HO 
50i74^ 
4,413 
3.955 
70,094 
87,706 

121,063 


£ 
62,690 
19,741 
49.063 

5».752 
335 
35.905 
45.530 
*9'»875 
34*939 
53,081 
22,185 
5»i»3o 
43»57t 
27,009 
I4f053 
x*,902 

25.73* 

80,906 

74.400 

33.935 

4.506 

4.*  90 
69,078 

86,677 
121, 7«3 


£ 

61.609 
19.758 

49.t4S 

5*.  140 

335 

35*636 

X91. 668 
34,308 
50.835 
21.84^ 
5«.04J 
42,Jtx 

28,C. 

21,61:0 

M.95V 
8i,Jj6 
74.600 
j4,ero  T 

4.^ 
3,t 

69,- 
86. 1 

»2a,:H 


Jfrisf)  aiitr  J>rotrI)  Cirriilation  Beturiis. 

Average  Cireulation,  and  Coin  hcfd  Ly  the  Iiiisn  and  Scotch  Bavks  dur%m§ 
weeks  ending  Saturdnt/^  tfa  Ath  da^  of  March ^  i865. 

IRISH    BANES. 


KAMK  or  BANK. 


Bank  oflrcland 

l^rorincial  Bank  of  Ireland 

BeiraAt  Bank , 

Northern  Bank 

UlgtcrBank .,. 

Tho  National  Bank.,,......,.. 

Totals  (Irish  Banks)   ...i 


CircuUti«». 


£ 

3,738,428 
927,667 
181, 6t] 
243 1 440 
311. 07& 
852,269 


6,354^494 


£ 
1,401,000 
386,852 

Il3,8lt 

95.961 

154.478 
';65.cn 


£        I  £ 

1,054,500   2,455,500 
480,191   t     Sfr7pC4l 
307.654  j     420,4' 
265,730  I      561,4^ 
320,7371     4-      = 
557, teo  |ltt' 


2,716,517    2,985,962  l5»7oi,^?:^  i» 


SCOTC 


Bank  of  Scotland   

Royal  Bank  of  Scotland  .. . ' 
Briti&h  Linen  Company  *,... 
Coramcrciat  Bk.  of  Scotland 
National  Bank  of  Scotland..' 
Union  Bank  of  Scotland  ..,' 
Aberdeen  Town  and  Co.  Bk.l 
North  of  Scotland  Bk.  Co... 
Glydcsdnlo  Banking  C^.   .J 

City  of  Glasgow  Bank  J 

Caledonian  Banking  Co.   , 

Central  Bank  of  Scotland. 

ToTALB  (Scotch  B&nU}, 


300,485 
216,451 
438,024 
374.88c 
297.014 
454.346, 

70,  1331 
»54.3»9 
274. 3»i' 

72,911 

53i434 
2.749t27» 


H    BANKS 

160,864 
179.^40 
160,885 

i8i,940 
161,740 

204,931 

52,13* 

93»395 
113,010 
130,398 

21,306 

23,115 


294* V53  < 
3*-. 538 
292.097 
333.217 

28i,rt5o  ! 

366, 74T 
71.559  1 

99,220  ! 

110,518 

214.689  i 

44.526 

12,580 


455.««7 
45*»9^ 

5l^rt' 


i,494i665  I4.574i4f8  :4. 

Digitized  by  LjOOQIC 


CIRCULATION  RETURNS.  531 

OF  WEEKLY  RETURNS  OP  BANK.S   OP  ISSUE. 


s 

kmks 


Fixed  Issues.  I    Feb.  11. 
£4,212.786  |£j,oi4,348 
3.2i6,357      2,754.»67 


7,439,143!   5.768,515 


Feb.  18. 


^2i»955f40^  £2,918,867 


2,741,988 


5.^98,394 


Feb.  25. 


2,725,860 


5.^44,;27 


March  1. 

£2,929,298 

»,73«»4»o 


5,660,708 


:nilntion  of  these  BankB  for 
rch  lith:— 

„.  £2,954,480 

^    2,738,61)6 


lation  of  Private 
koim  ending  as 

£5.693,(»8 

the  above  with  the  Retarua 
Feb.  4th  hist,  it  shows : — 
tea    of  Private 

£119.679 

I  of  Joint-Stock 

.•       ...         10,483 


)  mouth...       ...    £160.1 


And   as  compared  with  the  month  endiaz 
March  6th,  1864,  it  shows:— 
A  decrease  in  the  notes  of  Private 

Banks,  of £151,133 

A  decrease  in  the  notes  of  Jolnt-Stock 

Banks,  of «        ...       121,16ft 

Total  decrease,  as  compared  with  the 

same  period  of  last  year        £275.389 

The  IbllowiiiR  id  the  comparative  state  of  the 

circulation  as  retrsirds  the  fixed  isrtucs: — 

The   Piivato   Banks   are  below  their 
■      fi:ce<l  issues         £1,268,300 

The  Joint-Stock  Banks  are  below  their 
£xcd  issues        ...       .^       ...       ...      4B7,751 


Total  BELOW  their  fixed  issues 


.  £1,716.067 


OF  IRISH  &  SCOTCH 

■eolation  of  the  Irish  and 
four  werfjs  cndin<x  March 
-her,  erivo  tlie  following  as 
:;irculatiaa  of  these  Banks 
1,  viz. : 

thelriahBanks  £5,702,589 
the  Scotch  Banks  4,i>69,154 


ion  of  these  banks 
£9,7n.743 

Amounte  with  the  Returns 
Ith  Feb.  last,  they  show — 
tionof  Irish  iianks  £11,119 
tionofScotchBanks  8S.422 


.0  month   £90,541 

with  the  month  ending 
show — 

ionof  Irish  Banks  £140,030 
cionof  Bcotch  Banks  72.411 


9  year . 


«...  £212,441 


RETURNS  TO  MARCH  4,  1865. 

The  fixed  issues  of  the  Irish  and  Scotch  Banks 
at  the  present  time  are  given  in  the  Banking 
Almanac,  as  follows : — 

6  Bauksinlreland.allowedto issue...  £6,3.31,494 
12  Banksin  Scotland,  allowed  to  issue     2,749,271 

18  Banks  in  all,  allowed  to  issue   «....  £9.103.765 
The  followincr  apT)ear8,  therefore,  to  be  the 
Comp:u"ativo  htnto  of  the  circulation  :— 
Irish  Bauks  are  below  their  flxed  i5suo     £CnA,90r> 
Scotch  Banks  are  above  theu- fixed  issue  1,319,88;* 

Total  above  the  fixed  issue  £067,978 

The  amounts  of  Gold  and  Silver  hold  at  the 
head  oflices  of  the  several  bauks,  during  the  i)ast 
month,  have  been  as  follows : — 
Gold  and  Silver  held  by  the  Irish  Banks  £2,09^,935 
Goldand  Silver  held  by  the  ScotchBanks  2,'422,738 

Total  of  Gold  and  Silver  Coin £4,521,673 

Being  a  decrcnse  of  £33,565  on  the  part  of  the 
Irish  Banks,  and  an  increase  of  £^7,619  on  tho 

Eart  of  the  Scotch  Banks,  on  the  several  amounts 
eld  by  them  during  the  preceding  month. 


TON  OF  THE  UNITED  KINGDOM  TO  MARCH  4,  1865. 

she  state  of  the  Note  Circulation  of  the  United  Kingdom  for  tho  month  ending 

>r  the  Month  ending  4th  Mkrch,  as  compared  with  tho  previous  month: — 

Feb.  4.        I     March.  4.    I  Increase. 

£20,467,762        £10,»51,941  !  — 

2. 961,  HO  — 

2,738,606  i  — 


mth  ending  Mar.  1) 


8,074,159 
2,788,089  J 


26,3.30,010 
4,157.576 
6,713,708 


25,6t5,027 
4.069,15-4  1 
5,702,689  I 


Decrease. 
615,S21 
119,679 
49,4S3 


684,983 
88,422 
11,119 


£36,201,294        £35.416,770  1  —  £7*1,624 

rf  tho  month  ending  March  5th,  1864,  ^ith  the  month  ending  March  4th,  1866, 
Lhe  Bank  of  England  circulation  of  £105,113,  a  decrease  in  Privuto  Banks  ot 
c  in  Joint- Stock  Bauks  of  £124,156 ;  being  a  total  decrease  in  England  of  £380, 102  : 
jere  is  an  iif create  of  £72,411;  and  in  Ireland  an  increase  of  £110,030.  Thus 
ith  ending  5th  March,  as  compared  with  tho  same  period  last  year,  presents  a 
Q  England,  and  a  decrease  of  £167,961  in  the  United  Kingdom. 
uUion  in  the  Bunk  of  England,  for  the  month  ending  March  Ist,  gives  an 
both  deiiartmonts  of  £14,616,770.  On  a  com]iarison  of  this  -with  tho  Return  for 
b.  1st,  there  appears  to  be  an  increase  of  £^o5.756  j  and  an  increase  of  £839,385 
5  same  period  last  year. 

io  held  by  the  Banks  in  Scotland  and  Ireland  dnrlng  the  month  ending  4th 
73 ;  bcnng  an  increase  of  .€4,06-4  as  compared  with  the  Retura  of  the  previous 
«c  of  £'223,594  as  compared  with  the  corresponding  period  last  year. 


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Vatolow  ua  ftUMi  FiiBten,  CtipcnUn'  Ha]],  London  WftU 
Digitized  by  LjOOQIC 


BANKERS'  MAGAZINE, 

AND 


MAY,    186  5. 


MONEY  AND  PRODUCE. 

re  possess  a  comparative  abundance  of  money  and 
■  discount,  there  has  been  a  continuous  depreciation 
The  markets  for  the  leading  staples,  cotton,  tea, 
cc,  were  scarcely  ever  before  in  such  a  depressed 
i  until  within  the  last  week  no  prospect  of  recovery 
rent.  With  heavy  stocks  and  sinking  prices,  the 
^s  has  been  most  gloomy  indeed,  and  the  failure  of 
as  been  frequently  announced,  and  it  is  highly  pro- 
)  have  not  yet  got  to  tlie  end  of  the  catalogue.  The 
)f  trade  has  been  so  general  through  the  stringency 
er  and  November,  and  the  losses  then  and  since 
have  been  so  enormous,  that  it  has  terminated  in 
f  up  of  houses  which  it  was  supposed  would  be 
ler  the  storm  and  show  a  considerable  surplus. 
I  that  suspended  in  the  autumn  of  last  year,  although 
1  several  of  importance,  wore  in  the  majority  of 
rate  to  those  of  Messrs.  Halliday,  Fox  and  Com- 
\.  Kelson,  Tritton  and  Company,  Messrs.  C.  Joyce 
y,  and  Messrs.  Buchanan,  Hamilton  and  Company, 
•ecently  been  placed  in  liquidation.  Each  of  these 
ts  has  suffered  through  losses  in  produce,  and  not- 
:  since  the  early  part  of  the  year  the  value  of  money 
lining,  they  were  too  much  involved  to  allow  of  an 
on  from  difficulty.  The  panic  in  cotton,  the  forced 
0  realise  what  the  leaf  would  fetch,  the  heavy  drop 
the  large  stock  of  sugar,  have  severally  and  coUec- 
jrfered  with  the  usual  course  of  business,  that  the 
5  is  of  the  disturbance  not  having  extended  further 
cdsed  other  important  firms.  At  the  same  time  that 
V.  44 


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Money  and  Produce. 


these  establislunents  have  been  compelled  to  sueciur 
on  every  hand  of  the  enormous  saeriiices  encountered 
and  in  Egj^it,  India,  and  China,  from  the  stat^  of  t 
in  Mincing  Lane,  and  the  general  indisposition  U 
speculative  activity. 

It  is  true  that  while  these  failures  are  taking  place 
discount  has  become  reduced ;  but  this  reduction  doe; 
a  healthy  position  of  affairs,  because  the  change  has  < 
occasioned  by  the  withdrawal  of  large  amounts  of  pap 
culation,  and  the  partial  cessation  of  transactions  in  i 
of  the  globe.  Notwithstanding  at  present  there  seer 
probable  recurrence  of  heavy  disasters  here,  we  bI 
look  for  them  from  the  East,  and  likewise  from  Ami 
events  that  are  occurring  must  affect  those  specia 
and  entail  responsibilities  of  no  ordinary  characti 
could  see  produce  advance,  a  rise  of  1  per  cent,  in  t 
discount  would  make  little  difference,  for  once  the  tu 
is  gained  we  should  soon  see  all  activity  where  i 
sluggishness  was  formerly  apparent.  It  was  thoug 
intelligence  received  of  the  surrender  of  Lee*s  an 
prospect  of  peace  would  have  speedilj''  inaugurated  c 
of  things,  and  that  in  the  space  of  two  months  we  g 
experienced  a  revival  which  would  have  furnished  g 
of  hope  for  the  future.  Indeed,  sjTnptoms  of  the  lo 
for  change  were  assumed  to  be  visible.  Cotton  ] 
sugar  was  better,  special  kinds  of  tea  fit  for  the 
market  were  higher,  and  Scotch  pig-iron  and  Bai 
become  in  greater  request. 

But  a  check  has  now  been  given  to  this  improvem< 
the  last  advices  from  Washington,  which  record  the  ai 
of  President  Lincoln,  and  the  attempt  upon  the 
Secretary  Seward.  So  extraordinary  a  developm 
progress  of  the  war  feeling  never  could  have  been  a 
it  has  created  a  deep  impression  upon  both  sides  of  tl 
If  the  strong  irritation  thus  likely  to  be  caused  thro 
North  can,  however,  be  allayed,  a  peace  may  yet  I 
which  will  give,  at  least,  temporary,  if  not  perman 
the  late  contending  parties.  Meanwhile,  trade  will 
lust  of  war  and  glory  will  subside,  and  the  current 
and  action  will  once  more  be  directed  to  the  proper 
of  the  resources  of  the  country,  and  the  restoration  o: 
facturing  and  agricultural  capabilities. 

With  a  return  to  material  prosperity  in  America 
be  greater  activity  in  other  countries;  British,  I 
German  productions  will  be  more  largely  exported 


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Money  and  Produce.  655  j 

competitor  as    it  still  must  be   for  cotton,  will  in  \ 

)ts  share  in   the  altered  situation  of  affairs.     The  '" 

lension  is,  that  the  recent  tragic  proceedings  in  the 
lihe  North  may  give  birth  to  some  revolutionary 
and  thus  plunge  the  country  into  deeper  difficulties,  . 

?sult  can  be  averted,  there  is  little  to  fear  concerning  1 

itended  aggression  against  either  France  or  England.  1 

)n  of  a  peace  Minister  to  succeed  the  unfortunate  •' 

,  would  do  much  to  create  confidence  in  London  and  \ 

it  is  fair  to  presume,  from  the  stress  placed  upon 
of  General  Grant  that  the  military  expenditure 
)rthwith  be  largely  reduced,  that  the  authorities  at  \ 

1  incline  to  a  path  of  sound  economy  and  retrench- 

expectation  that  the  councils  of  the  North  will  be 

tly,  with  such  heads  as  Grant  and  Stanton  assisting  ^ 

•esident,  whose  shortcomings  are    xery  much  cen-  ;• 
s  may  be,  should  any  revolutionary  element  become 

briglit  era  before  the  next  four  years  shall  have  • 

'.     Four  years  of  active  hostilities  have  done  much  • 

I  the  country,  sacrifice  its  best  blood  and  treasure,  ' 

on  the  shoulders  of  the  taxpayers  a  debt  cumbrous  j 

b  of  adjustment.     It  will  take  at  least  thrice  that  | 

-e  the  North  or  South  will  be  able  to  place  their  j 

rder,  which  will  prove  one  of  our  best  safeguards  ; 

Lonstrative  exhibitions  either  on  the  frontier  or  in  ; 

3t  show  of  desire  on  the  part  of  the  North  to  lay 
word  and  adopt  the  ploughshare  instead  will  be 
)orted  by  all  Europe ;  and  it  is  the  feeling  that  this  ' 

the  best  and  tlie  wisest  policy,  which  induces  the  i 

hat  the  "Washington  administration  have  so  early 
Qipses  of  their  peace  intentions  and  a  wish  to  resume 
'  occupations  of  a  civilised  life.  With  these  aspira- 
V,  the  new  chief  magistrate  and  his  ministry  may 
3h  beyond  their  expectations  in  achieving  a  popu- 
rill  be  enduring.  But  only,  on  the  other  hand,  let 
rour  to  pursue  a  career  of  bloodshed  and  aggression, 
•rth  will  never  again  acquire  power  or  consideration 
"amily  of  nations. 

ice  of  the  next  fortnight  we  shall  ascertain  what  will 
iominating  tendency  of  the  new  Northern  officials, 
Lgland  and  France  wiU  be  in  a  position  to  shape 
dings  accordingly.  As  it  is,  already  a  better  demand 
up  for  capital  for  use  in  London  and  elsewhere,  and 


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The  Budget  for  1865-66. 


from  the  position  of  the  Bank's  accounts  it  is  not  li 
will  be  any  further  alteration  in  the  rate.  The  arx 
made  by  Mr.  S.  Laing  on  behalf  of  the  General  Credit 
for  the  concession  and  consolidation  of  the  intemi 
Turkey,  will  be  the  next  financial  operation  of  mo 
since  within  the  last  few  days  about  £500,000 
forwarded  to  Constantinople  as  a  part  payment  of  tb 
advance,  this  and  other  drains  upon  the  resouri 
Bank  will  prevent  any  great  increase  in  bullion,  ever 
be  maintained  at  its  existing  elevation. 

The  tone,  too,  of  Mincing  Lane  affairs,  whilst  w 
more  encouraging,  the  public  seeming  to  be  imbc 
notion  that  the  worst  in  America,  with  regard  to  th< 
passed,  and  that  the  death  of  President  Lincoln,  me 
ms  end  has  been,  will  not  occasion  any  further  great 
It  was  to  be  expected  there  would  be  a  panic  : 
securitiis ;  that,  m  reality,  has  occurred,  and  ha 
mounted.  Subsequent  fluctuations  may  take  place 
can  scarcely  be  of  a  serious  nature  unless  an  era  of 
is  introduced.  If  we  can  survive  this  shock,  and  no  d 
results  follow,  we  shall  have  good  average  terms 
greater  buoyancy  in  the  produce  markets,  and  a  legi 
largement  of  general  business.  With  an  increased 
improved  revenue,  and  a  reduction  of  our  loca 
England  will  still  make  progress,  and  be  closely  f 
France. 


:  r  • 


THE  BUDGET  FOR  1865-66. 
The  Chancellor  of  the  Exchequer  has  prox)ouiided  his  Budge 
address  of  two  hours  and  a  half,  explamed  the  manner  in  v 
poses  to  deal  with  his  surplus  of  nearly  £4,000,000.  The  chii 
recommended  in  the  committee  of  ways  and  means  are  a  rec 
in  the  income-tax,  placing  it  at  4(f .  in  the  pound,  a  reduction 
tea  duty,  and  a  modification  of  the  fire  insurance  duty  to  a  uj 
Is.  6d.  A  variety  of  other  small  changes  in  connection  i 
parties  for  vessels,  the  fees  paid  by  conveyancers,  and  mc 
arrangements,  will  also  be  effected :  but  these  are  of  seoon 
ance.  Mr.  Gladstone  went  at  great  length  into  the  questioi 
duty,  and  declined  any  further  concession  associated  with  i 
but  he  will  introduce  a  bill  allowing  inferior  and  middling 
sold  by  weight  instead  of  measure,  if  it  shall  be  consider 
The  balance  of  about  £250,000  which  will  remain  on  his  esti 
year,  he  hopes  will  be  protected  by  the  house  against  the  invi 
who  may  think  they  have  "claims  to  consideration,"  sine 
necessary  to  have  something  in  hand  in  case  any  of  his  calcul 
not  be  fully  borne  out  by  results. 


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O'Ji 


UTLINES  OF  AMERICAN  FINANCE. 

No.  XV. 

.e  Bank  were  completely  triumpliaut,  and 
:ood  an  undisputed  victor  before  Congress 
n  his  journeys  to  Lis  country  seat  in  Ten- 
LLsly  paid  all  his  travelling  expenses  in  gold, 
elucled  admirers  imagined  that  inexhaustible 
etal  would  flow  over  the  whole  American 
there  detained  in  a  variety  of  productive 
artily  despised  that  paper  money  whic^h  had 
ay  their  debts,  reclaim  their  waste  lands, 
s,  spread  their  sails  on  every  sea,  make  con- 
n  industrj',  and  reach  a  state  of  unexampled 
friendly  representative  of  value  which  had 
lly  when  struggling  for  political  independ- 
;  establishment,  had  poured  among  them  a 
Balth  at  which  Europe  had  been  astonished, 
irded.  In  1836,  of  his  own  mere  authority, 
m  of  Congress,  General  Jackson  issued  his 
Circular,  by  which  he  directed  the  col- 
to  reject  all  notes  tendered  in  paj-ment  of 

notliing  but  coin.     The  Distribution^  Act, 
ing  the  public  deposits,  passed  the  Senate 

and  the  House  of  Tvepresentatives  by  lo> 
L  that  the  money  which  might  be  in  the 
st  June,  1837,  reserving  the  sum  of  five 
uld  be  lodged  with  the  several  States  banks, 
heir  resi^ective  representation  in  Congress, 
►uld  by  law  authorise  its  treasurer  or  other 
to  receive  such  deposits.  These  were  to  be 
States  banks  in  quarterly  payments,  com- 
b  January,  1837;  but  the  intention  of  General 

the  haukB  should  hold  the  public  moneys 
nistees,  never  usmg  it  for  banking  purposes. 
:ained  the  conviction  that  the  trust  woidd  be 
ed,  he  was  soon  undeceived,  and  his  friend 
.  Van  Buren,  had  to  bear  the  burden  of  his 

Dular  created  very  general  dissatisfaction,  for 
jed  merchant  felt  that  it  was  a  decree  ot  pro- 
industry.  As  a  protest  against  it,  a  i^ui 
es.  in  tlie  session  of  1836-1837,  designatnig 

45 


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Mnd  limiting  the  funds  receivable  for  the  reven 
United  States,  and  allowing  pajoncnt  in  the  notes 
paying  banks ;  but  it  did  not  become  law,  as  Genei 
kept  it  in  his  desk  till  Congress  was  adjourned,  de 
measure  by  never  affixing  his  signature. 

In  his  eighth  and  last  annual  message,  Gth  Decei 
the  President  was  compelled  to  acknowledge  that  1 
anticipations  had  been  disappointed.  The  (States  b^ 
fidelity  he  had  vauntingly  guaranteed,  proved  imt 
They  very  soon  abused  the  confidence  reposed  in 
pearing  to  sad  disadvantage  when  contrasted  with  1 
bank.  When  the  transfer  of  the  deposits  was  fin 
for  the  evident  though  concealed  purpose  of  maki 
capital,  they  who  had  sufficient  discernment  to  per 
and  the  moral  courage  to  avow  it,  declared  their 
that  the  public  money  would  not  be  forthcoming 
manded  ;  but  the  President  resented  such  suspicion 
nies,  affirming  that  the  States  banks  would  neithe; 
nor  have  the  power  to  divert  the  public  funds  from 
mate  purposes  of  the  government.  He  now  adi 
they  had  misappropriated  those  funds  to  wild  specuJ 
thus  described  their  proceedings  : — "  They  had  pi 
make  loans  on  this  surplus,  and  thus  converted  it  in 
capital."  The  States  banks  did  not  pay  interest  on  tl 
and  cupidity  would  not  suffer  tliem  to  remain  un 
The  national  domains  furnished  a  wide  field  for  recli 
Tiire,  and  in  the  years  1834,  1835,  and  1836,  lands 
chased  from  the  government  to  the  amount  of 
millions  of  dollars,  being  nearly  one-half  of  the  to 
which,  up  to  that  time,  had  been  received  from  1 
since  the  constitution  was  framed.  Many  of  tho  In 
liiid  been  removed  to  tlie  west  of  the  Mississippi,  i 
but  by  agreement.  When  the  Cherokees  crossed  thai 
received  in  perpetual  guarantee  13,554,135  acres  of 
change  for  9,492,160  acres  on  the  cast  side.  In  a< 
United  States  stijjulated  to  pay  them  5,600,000  dol] 
provements  on  the  lands  relinquished,  and  1,600,0 
sistence  and  other  beneficent  purposes.  For  the  I 
to  lands  acquired  since  the  4th  March,  1829, 
116,349,897  acres,  the  United  States  paid  76,560,( 
in  permanent  annuities  and  other  equivalents.  U 
Indians  with  whom  these  contracts  were  made  had 
the  hunter  state  and  become  agricidturists,  the  old 
living  by  their  industry .     This  emigration  of  the  ab( 


t<. 


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^Moric  OiUlmes  of  Atmriean  Fimme.  559 

-  tracts  of  land  for  sale,  and  m  it  was  lertile, 
li  and  flour  were  rising  at  the  time,  speculation 
sers  was  rife.  These  wore  the  chief  borrowers  of  the 
were  induced  to  make  banking  capital  of  the 
i  national  bank  no  longer  restraining  or  regulating 
lues  of  the  country,  the  several  State  legislatures 
numerous  banks,  many  mth  very  inmloquate 
ply  a  supposed  demand  for  hanking  facilities,  and 
usiblc  reason  was  assigned,  as  the  public  lands 
5r  be  thought  on  credit,  but  only  for  ready  money 
1  this  manner  specie  was  diverted  from  the  legiti- 
I  of  trade.  Tlencc  the  enonnous  efflux  of  paper, 
icient  security,  in  i^^arch  of  dividends, 
t  was  not  bkimeless  for  the  consequences  which 
WLod*  It  not  only  winked  at  irregularity,  which 
revenue  from  sales  of  land,  but  encouraged  the 
nmmlation  of  bills  to  justify  General  Jacknon^s 
lat  the  extinction  of  the  national  bank  would 
c  benefit.  Loana,  discounts,  and  the  renewal  of 
tiated.  On  the  lands  surrendered  by  the 
1  even  towns,  sprang  up  as  if  by  magic ; 
law  of  June,  1830,  was  passed,  which  ordered  all 
■9  in  the  treasury,  less  five  millions  of  dollarf^*  on 
ry,  1837,  to  be  \listributed  in  four  equal  instal- 
p^tho  He veral  States,  and  had  time  to  operate,  it 
'  the  deposit  banks  had  in  circulation  some  forty 
Wn  notes  t  lo  in  «i)ecic  on  demnivl. 

..liks  had  been  l  by  tlw  favouritism  of  the 

the  Treasury;    but  his  powers  ceased  with  the 
'^Distribution  Law,     Henceforward  each  State 
are  of  the  public  moncj-s  in  defined  propor- 
■       "         '      I  fore,  had  to  refund,  that  the 
I  it  be  obeyed ;  tliis  they  at  first 
,  but  only  by  exerting  a  ruinous  pres*<iive  on  their 
efus<ing  to  renew  their  bills  at  maturity.     For  a 
i'cd  themselves  by  crushing  theu-  customers  in  tl:e 
^  '  *    "'  '  v  were  the  monetary  centres,  and  as  their 
ied   their   own   strength   was   debilitftU*d, 
ot  payintz:  twenty  shillings  in  the  pound.     They 
to  raise  gold  in  England  on  securities,  through 
a  honses  in  London,  but  those  houses  themselves 
lelmrtd.     Bankruptcy  stalked  over  the  hmd  from 
y  New  Orleans ;  and  the  crowning  monument  ot 
*iw>n*s  financial  statesmanship  wa*^  mdustnal  desc- 


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Historic  Outlines  of  American  Finance. 


lutiou.  But  President  Yan  Buren  Lad  to  reap  the 
his  predecessor  had  sown  and  cultivated,  and  the  dc 
catastrophe  belong  to  the  suceeedmg  administration 
It  is  proper,  however,  here  to  notice  that  Geiter 
on  resigning  office,  published  a  "  Farewell  Address, 
he  admitted  that  a  wild  spirit  of  specidation  had 
"  within  the  last  year  or  two.''  Clearly  this  was  not  i 
to  the  national  bank,  for  it  had  been  rendered  powc 
that  time.  He  also  complained  that  credit  had  beei 
which  the  suppressed  institution  was  equally  guiltlei 
its  judicious  management,  and  that  of  its  twenty-fiv 
credit  had  been  kept  sound,  trade  had  prospered,  1 
flourished,  and  the  public  debt  been  discharged  to  the  \i 
The  contrast  was  most  striking  between  the  state  of 
when  General  Jackson  first  became  President  and  whe 
from  office.  Of  the  abuse  of  credit  and  the  recklessr 
engaged  in  business,  he  spoke  in  these  terms  :  "  We  h 
seen  its  effects  in  the  wild  spirit  of  speculation  in 
lands  and  various  kinds  of  stock,  which,  within  the  '. 
two,  seized  upon  such  a  multitude  of  our  citizens,  and 
to  pervade  all  classes  of  society,  and  to  withdraw  the 
from  the  sober  pursuits  of  honest  industry.*'  This  i 
condemnation  of  the  system  he  had  introduced  and 
by  his  patronage.  lie  then  objected  to  any  large  sui 
treasury  (not  anticipating  there  would  soon  be  a  i 
for  he  observed  that  a  large  surplus  implied  high  ta; 
nishing  the  means  of  corruption  while  it  impovc 
people.  He  also  condemned  high  tariffs  when  imp( 
tect  special  interests.  As  a  rule,  he  advised  that  revt 
be  the  exact  measure  of  taxation,  neither  more  noi 
nounced  national  banks  and  all  moneyed  corporj 
insisted  on  a  purely  metallic  currency. 

This  review  of  General  Jackson's  financial  adn 
ought  not  to  terminate  without  some  brief  notice  of  t 
fate  of  the  national  bank.  When  the  directors  were 
that  the  renewal  of  its  charter  was  hopeless,  they  apj 
State  of  Pennsylvania  for  an  act  of  incorporation, 
granted,  though  at  the  heavy  price  of  nearly  six 
dollars ;  but  its  privileges  were  extended  to  thirtj 
Avhich  long  period  it  was  hoped  that  the  purchase  W( 
remunerative.  If  the  bank  had  not  consented  to  tho 
exacting  terms,  the  act  of  incorporation  would  not 
conceded.  The  fact  was  that  Pennsylvania  had  i 
immense  internal  works,  as  canalisation  and  railwa\ 


k^'-t 


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llifsioric  Outlines  of  American  Finance.  5(U 

igth  was  unequal  to  the  outlay.  Hence  the  State 
ranted  the  charter.  The  act  of  incorporation  was 
1  Act  for  the  suppression  of  tiixes  established  on 
.  immovable  property  to  defraj^  the  cost  of  public 
State,  and  for  other  objects."  "  One  of  those  other 
he  charter  of  the  bank, 
icession,  General  Jackson  and  his  partisans  were 

rage.  The  newspai)er8  in  their  interest  even 
public  to  raze  the  bank  buildings  to  their  founda- 

the  site  with  salt ;  but  these  were  the  ravings  of 
icy.  The  bank  was  established,  and  borrowed  a 
md,  w4th  which  it  paid  off  the  capital  due  to  the 
rnment.  It  established  agencies  in  the  provincial 
Union  which  were  nearly  as  profitable  as  the  old 
ts  notes,  however,  were  no  longer  legal  tender 
3  single  State  of  Pennsylvania.  In  Virginia  a 
;e  occurred.  After  the  3rd  March,  18-36,  when  the 
le  Bank  of  the  United  States  had  expired  through 
I,  some  of  its  notes  were  forged.  The  forger  was 
le  jury  pronounced  the  following  curious  verdict 
here  is  a  law  to  punish."  The  judge  acquitted 
►n  the  ground  that  there  was  no  penal  law  appli- 
case.  This  judicial  decision  was  clearly  dictated 
It,  for  the  charter  of  the  national  bank  allowed  it 
winding  up  its  affairs,  and  therefore  it  was  entitled 
against  forgery  till  1838. 
Juren  succeeded    General    Jackson   in  the  presi- 

He  had  been  Vice-President  with  his  predecessor, 
was  strongly  united  by  personal  friendship  and 
)litical  and  financial  views.  The  truly  illustrious 
the  revolutionary  era  had  now  passed  away,  and 
iral  address  of  the  4th  March,  1837,  Mr.  Van 
>ed  himself  as  being  the  first  President  of  a  new 
oming  to  the  rich  inheritance  of  a  settled  govern- 
f  an  ample  and  unincumbered  revenue.     At  the 

the  year  1836  not  only  was  the  national  debt  of 
:ates  liquidated,  but  there  were  41,723,059  dollars 
•y ;  but  within  two  months  after  Mr.  Van  Buren 
tailed  at  the  "White  House,  nearly  all  the  banks 
1  suspended  payment  in  specie.  The  enormous 
In  land  have  been  noticed.     The  banks  of  New 

made  enormous  advances  to  the  cotton  planters, 
iad  borrowed  largely  in  Europe.  They  were  also 
bted   to  monetary   nouses  in   New  York.       The 


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Historic  Outlines  of  American  Finance. 


American  agency  firms  established  in  London  had  ^ 
various  securities  largo  amounts  of  bullion,  whicl 
transmitted  to  their  correspondents  in  the  several  S 
nearly  three  consecutive  years  this  drain  had  beei 
the  Bank  of  England,  when  tho  alarmed  din 
denly  refused  to  discount  American  paper.  The 
consequence  was  that  tho  American  banks  and 
were  called  upon  to  reimburse  the  advances 
them  by  the  agency  houses  in  England.  It  was 
raneously  with  this  suspension  of  credit  that  Cong 
the  Distribution  Act,  which  entiidy  cliangcd  tho 
debt  and  credit  in  America,  acting  directly  on  all  j 
nal  operations,  and  of  course  indirectly  on  all  forei 
ments.  The  deposit  banks,  hitherto  favoured  by  tl 
of  the  Treasury,  were  warned  that  the  preference 
them  would  cease  on  tho  Ist  January,  1837.  T 
cotton  began  to  fall,  and  tho  Federal  government  hac 
that  it  would  only  receive  specie  or  its  own  specie  di 
deposit  banks  for  customs,  postage,  and  all  oth( 
taxation.  Thus  the  policy  of  General  Jackson  was 
ripened,  and  we  proceed  to  exhibit  its  fi-uits. 

On  the  13th  of  May,  1837,  the  banks  of  New  Yor 
realise  their  claims  on  the  South  and  West,  came  tc 
mous  resolution  to  suspend  specie  payments.  TL 
Kew  Orleans,  finding  it  impossible  to  recover  wh 
advanced  to  the  cotton  planters,  adopted  tho  same 
there  was  no  complicity  of  action  between  the  two 
surrendering  to  a  common  and  imperious  necessity 
ruptcy  hovered  with  blaekcniug  wings  over  the 
industrial  centres  of  tho  Hudson  and  tho  Mississip 
prudence  had  compelled  them  to  succumb,  all  tho  ( 
in  the  United  States  followed  their  example,  luid  pul 
favoured  this  universal  declaration  that  engagemei 
could  not  be  immediately  fulfilled.  In  fact,  it  Avas  ai 
necessity  not  to  be  evaded.  Tho  legislature  of  New 
so  far  as  to  legalise  suspension  for  ono  year,  fori 
banks,  however,  from  declaring  dividends  till  that  te 
pired.  Some  other  States  acted  on  that  precedent, 
not  followed  in  all.  Other  legislatures  excused  or  wi 
suspension  as  an  inevitable  residt,  but  refused  to  gi^ 
sanction.  This  desperate  state  of  things  compeUecl 
Van  Buren  to  call  a  special  session  of  Congress,  wliic 
on  tho  4th  September,  1837,  in  which  he  had  to  an 
suspension  of  the  banks,  and  even  of  those  to  whicli 


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Hidoric  Outlinea  of  American  Finance,  56'i 

been  entnisted ;  but,  wliat  was  still  more  mortifying, . 
eclaro  that  prosperity  had  so  completely  vanished 
isury  was  empty,  and,  as  a  consequence,  that  money 
uTOwed  to  defray  the  public  expenditure.  The 
dollars  were  gone,  and  the  national  debt  had 
paid  off  to  commence  a  new  one.  This  was  a 
itary  on  the  vain-glorious  boasting  of  General 
lis  shallowness  as  a  financier  was  demonstrated. 
iry  of  the  Treasury  had  been  compelled  to  repu- 
►anks  for  whose  solvency  General  Jackson  had 
r  could  he  discover  others  safe  under  the  conditions 
3  Circular  ;  nay  more,  such  was  the  utter  prostration 
it  time  had  to  be  given  to  the  merchants  to  redeem 
tiey  had  given  for  customs  duties.  Such  were  the 
lat  President  Van  Bui*en  was  compelled  to  confess, 
zh.  he  was  expected  to  provide  a  remedy.  In  the 
lage  of  the  4th  September,  1837,  he  thus  explains 

of  the  country  : — 

ommencement  of  the  year  1834  the  banking  capital 
i  States,  including  that  of  the  national  bank  then 
ounted  to  about  200,000,000  of  dollars,  the  bank 
ulation  to  about  95,000,000,  and  the  loans  and  dis- 
j  banks  to  about  320,000,000.  Between  that  time 
>f  January,  1836,  our  banking  capital  was  increased 
L  251,000,000,  our  paper  circulation  to  more  than 
and  the  loans  and  discounts  to  more  than 
To  this  last  increase  are  to  be  added  the  manj'- 
redit  acquired  by  foreign  loans  contracted  by  the 
tates  institutions,  and  by  the  lavish  accommodation 

foreign  dealers  to  our  merchants.  The  conse- 
lis  redundancy  of  credit,  and  the  spirit  of  reckless 
!n  gendered  by  it,  were  a  foreign  debt  contracted  by 
estimated  in  March  last  at  more  than  30,000,000 
extension  to  dealers  in  the  interior  of  our  countrj- 
•  supplies  greatly  beyond  the  wants  of  the  people  ; 
int  of  39  i  millions  in  unproductive  public  lands  in 
35  and  1836,  while  in  the  preceding  year  the  sales 
ed  to  4i  millions ;  the  creation  of  debts  to  an  almost 
Lount  on  real  estate  in  existing  or  anticipated  cities 
q[ually  unproductive,  and  at  prices  not  seen  to  have 

disproportionate  to  their  real  value  ;  the  expendi- 
ense  sums  in  improvements  which  in  many  cases 
poved  to  be  ruinously  unproductive ;  the  diversions 
rsuits  of  much  of  the  labour  that  should  have  been 


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Ilidovic  Outlines  of  American  Finance. 


applied  to  agriculture,  thereby  contributing  to  tbc  ( 
of  large  siuns  in  the  importation  of  grain  from  Eur 
pcnditure  which,  amoimting  in  1834  to  above  250,< 
was  in  the  first  two  quarters  of  the  present  year  i 
more  than  two  millions  of  dollars." 

Such  was  the  financial   and  commercial  exposil 

President,  nor  was  it  in  the  least  coloured,  but  ari 

tnie.     It  was  a  picture  of  desolation  at  which  the  bo 

have  stood  aghast,  and  the  desolation  so  graphical 

was  entirely  owing  to  the  insane  folly  of  supposing  tl 

commodity  could  represent  and  cii'culate  all  other  a 

It  was  ascertained  that  there  had  been  upwards  of 

dred  failures  in  New  York,  involving  many  millions 

In  New  Orleans  the  sums  owing  and  demanded  forme 

gate  of  twenty-seven  millions  of  dollars  in  two  days. 

there  were  one  hmidrcd  and  sixty-eight  failures  in  \ 

A  large  deputation  from  New  York  of  all  classes  o1 

and  distributors  had  waited  on  the  President  to  pi 

possession  of  the  real  facts  of  the  case.     They  compi 

moderate  limits,  the    depreciation  in  the  value  of 

estate  at  forty  millions  of  dollars  ;  affirmed  tliat  a  t 

taken  place  in  local  stocks,  as  railroad  and  canal 

tione,  of  twenty  millions ;  that  merchandize  in  the 

had  fallen  at  least  thirty  pe  r  cent. ;  that  twenty  thousj 

had  been   discliarged   from   emplojnnent ;  that  pai 

seized   an    active,    enterprising,    and   prosperous    c< 

iinally,  that  the  errors  of  rulers  had  i3roduced  more 

than   pestilences   wliich   depopulate   cities    or    con 

wliich  reduce  tliem  to  ashes.     The  New  York  depul 

(hided  tliat  the  Si)ecie  Circular  of  July,  1836,  was  tl 

all  tlic  adversity  experienced,  on  the  very  simple  bui 

ground  tliat  tlie  precious  metal  could  not  be  obtain 

cient  quantities  to  represent  the  enormous  and.  an 

creasing  wealtli  products  that  industry  created.     The 

is  that  iho  theory  of  a  metallic  currency  assumes  th 

ccsnmodity — coined   bullion — can   represent   the  va^ 

other  commodities,  which  is  a  mathematical  absurdil 

is  equivalent  to  affirming:  that  part  is  equal  to  the  wh 

l*resident  Van   Buren,   however,   thought   difierc 

considered  that  distribution  might  bo  unlimited  witl 

instrument  of  distribution — that  industrial  producti 

])rogress   indefinitely  with  a  restricted  currency.     2 

liis  intelligence  must  have  been  aware  that  the  law 

and  demand  was  universal  in  its  action  ;  that  the  rent 


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HUtoric  Outlines  of  American  Finance.  OG-j 

)f  ships,  the  wages  of  labour,  and  the  price  of  corn,  ; 

jU  with  the  scarcity  or  abundance  of  houses,  ships,  1 

'  commodities ;  but  if  we  are  to  infer  his  mental 
from  his  legislation,  he  must  have  concluded  that  \ 

ley  was  an  exception  to  this  law ;  or,  that,  if  it 
,  wise  and  benevolent  statesmanship  was  gratified 
ations  of  a  penniless  population.  It  is  evident 
louses  are  insufficient,  an  additional  number  are 
se  the  materials  of  construction  are  readily  ob- 
w^here  money  is  limited  to  tlie  precious  metals, 
e   of  quantity    is    impossible,  because    the   addi-  ^' 

[naterial  cannot  be    obtained.     When  rent  is   ex-  : 

remedy  is  simple.     More  houses  are  built  till  the  '^ 

Is  the  demnnd,  and  then  rent  falls  ;  but  there  is  no  I 

'  in  regard  to  gold  and  silver  coin ;  consequently, 
ist  have  it,  are  compelled  to  give  more  and  more 
►f  the  products  of  their  labour,  for  a  constantly 
quantity  of  coin.  Such  was  the  state  of  America 
Van  Buren  became  President.  lie  held  that  the 
smment  was  to  take  care  of  itself  and  secure  the 
etallic  taxation,  and  that  it  could  not  be  expected  to 
reference  to  the  monetary  concerns  of  the  people, 
lowever,  that  government  did  so  legislate  when  it 
he  labour  of  the  country  converting  all  its  products  • 

silver  coin  before  taxes  could  be  paid ;   for  that  was  ! 

n  imposed  by  the    Si)ccie   Circular.     Government  ; 

imj^orted  gold  or  silver  bullion,  nor  could  it  detain 
Drted ;  all  it  did  was  to  mint  the  bullion,  fixing  its  * 

ting  on  it  a  moneyed  denomination,  and  when  the 
'  rose  above  the  mint  price,  the  coin  was  exported  as  ' 

ble  metal.  The  Specie  Circular,  however,  demanded 
s  when  government  had  offered  a  premium  for  its 
:  how  was  it  to  be  obtained  ?  By  no  other  means 
ering  the  price  of  commodities,  and  thus  tempting 
>  return  the  coin, — in  other  words,  by  ruining  the 
lasses.  In  this  manner  the  interests  of  the  govern- 
rraycd  in  bitterest  antagonism  against  the  interests  ; 

e,  of  which  truth  the  statement  of  the  New  York 
ras  the  illustration  and  the  commentary. 


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THE  BANKEES'  GUARANTEE  AND  TRUST  FUNT 
In  another  page  will  be  found  a  letter  fix>m  the  secretary  of  tl 
to  which  wc  would  direct  the  attention  of  our  readers.  Ab  ii 
dif>m  are  doubtless  already  aware,  the  fiind  has  been  estafalic 
iho  purpose  of  enabling  the  clerks  and  others  employed  in  the 
kmks  of  Great  Britain  and  Ireland,  by  the  simple  plan  of  gui 
iug  one  another,  to  reserve  to  themselves  the  profits  that  have  1 
accumulated  for  the  benefit  of  the  guarantee  societies.  This 
is  certainly  feasible,  and  calculated  to  effect  a  couaidei-able 
\Tliile  the  auspices  under  which  it  is  brought  forward  augur  favt 
far  its  success.  It  would  appear,  indeed,  that  many  of  the  p; 
private  and  joint-stock  banks  have  already  adopted  it,  and  thi 
the  case  it  can  hardly  fail  to  extend  its  operations  to  the  othe 
ing  establishments  in  the  kingdom. 

The  old  plan  of  requiring  private  security  seems  to  have  fid 
ilkose,  and  whatever  virtue  may  in  former  days  have  been  si 
to  attach  to  it  is  now  known  not  to  exist,  for  it  is  a  well  asce 
fact  that  those  banks  which  insisted  upon  having  private  s 
were  not  less  subject  to  losses  from  the  dishonesty  of  clerli 
those  with  whom  it  was  not  oompuLK)ry.  We  believe  tha 
oi  the  more  modem  banks  will  not  even  accept  private  at 
Aud  the  reason  is,  that  if,  as  experience  proves,  it  does  n 
vent  firaud,  it  is  not  half  so  good  a  security  to  fall  back  u 
the  event  of  dishonesty,  to  say  nothing  of  the  disa^eeabl 
if  enforcing  an  innocent  and  worthy  man  to  make  reparat 
the  dishonest  acts  of  some  scapegrace  of  a  connection  and 
Ijc  of  ruining  him  for  life.  More  than  this,  we  believe  that 
security  is  often  tantamoimt  to  no  security  at  all,  the  person 
iK^ing  frequently  not  worth  as  many  himdreds  as  he  is  a 
for  thousands.  And  even  if  he  is  worth  the  money,  to 
and  to  enforce  payment  would,  in  nearly  exeacy  case,  be 
fully  distressing.  The  objection,  too,  on  the  ground  of  tJ 
ngreeableness  of  the  obligation,  even  to  the  most  honest,  is  no 
i  ait  its  weight,  and  maybe  added  to  the  other  causes  moo 
AvLich  have  tended  to  abolish  the  pitictice. 

We  have  heard  instances  of  young  men  in  no  res})ect  inf< 
character  and  trustworthiness  to  those  appointed  in  their 
declining  situations  which  they  were  most  anxious  to  obtaii 
because  they  could  not  find  the  required  private  securit}%  but  1 
they  either  would  not  put  themselves  under  the  obligation  t< 
friends,  or  would  not  hazard  the  impleasantuess  of  being  reft 
this  or  that  quarter.  Youths  who  would  so  act  are  not  li 
lum  out  the  worse  men,  yet  good  openings  in  life  have  be< 
iigainst  them,  not  because  they  were  less  deserving,  but  mor 
pulouB  and  independent  than  others.  It  is  unpleasant  enc 
grant  a  fieivour  of  this  kind  :  it  is  ten  times  more  disagreeable  to 


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Banher^s  Guarantee  and  Trust  Fund.  567 

?fuse  it  is  a  painful  tiling  ;  and  to  be  rcfased — tbere  is  a 

that  which  has  a  most  enduring  sting. 
r  and  the  receix-ing  of  private  sureties  being  alike  objection- 
lany  reasons,  and  having  been  found  alike  ineffectual  to 
[  inefficient  to  provide  against,  fraud,  recourse  has  been 
i  of  late  years  to  the  guarantee  societies.  It  is  kno'svn 
ncieties  have  made  largo  profits  out  of  the  business,  as 
which  we  may  mention  tL'it  the  shares  of  tlie  Guarantee 
vhich  £3  have  been  paid,  are  now  worth  about  £13  per 
;  that  this  represents  anything  like  the  proportion  of 
I  the  business  brought  to  them  by  bank  clerks  has  cou- 
rhe  fact  we  believe  to  be  that,  although  guai-anteed  at  a 
ban  other  clerks,  they  have  been  paying  largely  for  the 
of  classes  less  honest  than  their  own.  It  is  at  least  be- 
i  that  considerable  profits  have  accrued  fi'om  their  annual 
:1  of  which  they  might  all  along  have  kept  to  themselves 
e  plan  of  organizing  together  for  the  purpose  of  guarantec- 
her. 

\  to  us  that  if  this  plan  is  generally  adopted,  there  will 
Fi  saving  of  "  profit,"  but  very  likely  an  actual  diminution 
Every  clerk  who  is  a  defaulter  to  his  employer  will  like- 

his  fellow  clerks,  and  these  are  they  who  have  the  best 
s  for  preventing  and  detecting  frauds.  So  that,  upon 
1  as  upon  economic  grounds,  we  are  disposed  to  look  upon 
with  favour. 

banks  have,  we  believe,  subscription  fimds  of  their  own 
le  among  other  objects  the  provision  of  a  guarantee  fiind. 
unds  necessarily  require  for  their  suppoi-t  compul^orj^ 
tributious  from  the  whole  staff,  and  the  accunmlation 
erably  in  excess  of  what  is  required  to  nmke  good  the 
occurring  among  the  clerks,  by  flir  the  larger  poi-tion  of 
)  the  lot  of  those  who  spend  a  lifetime,  or  finish  their 
5  bank's  sei-vice.  There  seems  to  us  to  be  gi-eat  force  in 
it,  that  it  is  more  desirable  that  there  should  bo  but  one 
md  for  the  whole  body  of  bankers*  clorkn,  which  would 
lem  their  spcurities  at  the  lowest  possible  cost,  and  to 
would  continue  to  belong  in  the  sei'vice  of  whatever  bank 
be  engaged.  At  present  a  clerk  in  a  bank  that  has  a 
>wn  forfeits  liis  subscription  on  leaving  the  bank,  whereas 
lis  subscription  (and  a  much  smaller  one)  to  a  general 
and,  his  interest  in  it  woidd  continue  as  long  as  he  re - 
►anking  service. 

kers'  Guarantee  and  Tnist  Fund  has  our  best  wishes  for 
111  accomplishment  of  its  very  worthy  purpose,  and  we  hope 
to  hear  that  it  ha*  been  approved  and  adopted  by  the 
od  staffs  of  all  the  banks  in  the  kincjdom. 


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i 
|.^ 

j.  THE  CURRENCY  SYSTEM. 

I  To  the  Editor  of  the  "^rtu/cciV  Magazine.^* 

r  Sir, — Public  attention  has  once  more  been  attracted  to  ( 

•system  by  another  monetary  pressure,  and  it  is  probable  i 
]•  next  year  have  a  parliamentary  inquiiy  into  the  whc 

[j  Expressions  of  dissatisfaction,   loud  and    deep,   resound 

<piai*ters,  and  it  is  the  general  opinion  thiit  tlie  diffici 
'•  ine vittible  arose  from  the  sudden  coUai^so  in  prices  hvst  ai 

'  materially  increased  by  the  high  i*ates  of  interest.     That 

doubt,  principally  arose  from  a  combination  of  causes  over  \ 
little  or  no  control ;  but  it  is  the  opinion  of  many  that  the  Bf 
were  not  justified  in  having  recourse  to  the  extreme  rates 
.so  greatly  to  the  commerciiil  losses  and  embarrassment. 
'  however,   the  Bank  was  merely  actmg  up  to  the  mon 

'  adopted  by  the  legislature  in  184:4,  and  the  true  coui-a 

tiiken  by  those  who  object  to  the  action  is  to  examine 
^soundness  of  the  policy,  and  if  possible  jwint  out  the  e 
exist  in  that  thick  ma«s  of  reasoning  on  which  it  rests. 

The  advociites  of  the  policy  contend  that  tlie  high  rate 
were  produced  by  a  heavy  exceptional  deuiand  for  capit 
they  were  the  means  of  protecting  the  country  from  a 
erisis.  They  have  found  an  exi)onent  of  these  views  in  ^ 
of  Ghusgow.  In  a  pamphlet  recently  published  by  him,  tha 
furnished  the  world  with  the  dat-a  on  which  these  c 
'  grounded, ^and  I  shall  feel  obliged  by  your  permitting  me 

the  utter  incorrectness  of  his  figures,  and    to  call  his  i 
,'  one  or  two  other  little  cn*ors  into  which  he  appcai-s  to 

fallen. 

This  exceptional  expenditure,  we  arc  inlbrmed,  amou: 

*  the  last  two  yeai-s  to  £400,000,000  i>er  annum,  and  we 
that  we  cannot  reasonably  expect  a  return  to  a  normal  s 
until  some  relaxation  has  taken  place  in  the  elements  < 

'  Now,  when  I  mention  that  the  elements  of  pressure  allude 

of — 1,  increased  cost  of  cotton ;  2,  demand  for  limit 
eompanies ;  3,  increa.sed  ordinary  expendituix)  in  E 
France  ;  4,  European  loans ;  5,  American  war  cxpe 
think  it  will  appear  pretty  evident  that  Mr.  Stirling's  pr 
been  completely  falsified  by  facts.  The  pressure  has  nc 
4ippeared  before  any  material  altemtion  lias  taken  pla 
(elements,  but  the  money  market  has  entered  upon  a  plet 
and  instead  of  this  being  attributable  to  any  such  theor 
|,  it  aiises  principally  from  the  general  inactivity  of  ti-ade, 

'  a  great  extent  by  the  check   inflicted  by   the  late  strings 

money  market. 

And  an  examination  of  the  figures  given  by  Mr.   St 

•  confirms  the  suspicion  which  this  fact  creat<?s^  that  he  han 


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The  Citvrcncy  System,  500 

ather  reckless  fussei-tion,  iii  tlie  place  of  facts  ;  and  that,  ^ 

cachings  of  tlie  school  to  which  he  has  pinned  his  ftiith,  * 

in'eil  creating    figures  to    suit  hLs  thesis,  to  conducting  t 

)orioiLs  oi:)ei*ation  of  extracting  the  truth  from  an  exten-  I 

martial  examination  of  facts.  ! 

in    this    estimate    of    £400,000,000    is    the    sum  of  Is 

►0  {IS  the  demand  for  limit<^d  liability  companies.      I  may  \ 

he  cai)ital  of  the  projected  extension  of  old  companies 
tion  of  new  ones  amounted  in    18G3  to  j£  135, 300,000,  i- 

to  £145,000,000.     But  even  if  the  figures  he  gives  had  \ 

on  what  ground  can  they  be  said  to  have  a^isisted  in  I 

ate  of  tliscount  \     Let  Mr.  Stirling  make  the  experiment  '• 

I  pnispectus,  demanding  for  some  great  scheme  not 
0  in  the  couree  of  a  year,  but  any  conceivable  multiple  ;' 

nt  ill  a  single  day,  and  he  will  have  his  eyes  opened  to  J 

demands  of  this  nature  do  not  exactly  operate  in  the 
•  or  to  the  same  extent  as  an  actual  consumption  of 
[I  o])erate.  The  fact  of  the  matter  Ls,  that  of  the 
0  demanded,  or  nither  proposed,  in  18G4,  only 
was  really  paid,  and  only  a  very  small  portion  of  this  J 

Ck\\\  with  tnith  be  said  to  have  affected  the  money 
e  largest  portion  of  it  merely  consisted  of  the  displace- 
i^ate  for  joint-stock  enteiin'ises,  and  the  development  of  I 

companies  which  would  othei'>vise  have  been  made  as.  * 

ate  individuals.     £10,318,333  was  added  to  the  joint-  > 

5  capital  of  the  country;  £-1,213,750  to  financial  and  ' 

panics'  capital.     The  figures  which  Mr.  Stirling  has  so  'i 

ikcn  are  the  offspring  of  that  principle  of  limited  liability, 
lually  consolidating  the  business  operations  of  the  countiy,  \ 

in  my  opinion  more  clearly  indicates  the  nature  of  the 
he  has  undertaken   to  defend,  than  his  infatuation  in  • 

)  persuade  the  public  that  £110,000,000  of  capital  was  » 

litnited  liability  companies  in  each  of  the  last  two  years, 
t  ail  equal  amount  of  reason,  our  new  financier  inoludes^ 
bes,  a  sum  of  £50,000,000  as  increased  ordinaiy  expendi- 
land  and  France.  Having  made  the  discoveiy  that  tht» 
nditure  of  these  countries  increased  £50,000,000  per 
Jen  1852  and  1862,  he  has  not  hesitated  to  assign  this  as 
luses  of  the  doubling  of  the  rate  of  discount  throughout 
iG3-4.  Need  I  say  that  he  might  with  quito  as  much 
ncluded  tlie  heavy  expenditure  of  this  coimtry  in  the  eaily 
eseiit  century,  in  his  estimates.  Does  not  the  simple  fact 
ey  market  has  been  easy  for  lengthened  periods,  since  thii  ^ 

penditure  arose,  prove  that  the  supply  of  capittil  had 
d  itself  to  the  increased  demand  ?  But  not  only  has  the 
aot  been  increased  within  or  just  prior  to  the  rise  in  th<^  ^ 

mt  in  question,  but  it  has  actually  diminished.  ' 


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570  The  Currency  Sydem. 

He  places  £40,000,000  as  tlic  increased  cost  of  cottoi 
value  gf  these  figures  will  be  appi'eciated  when  I  point 
amount  merely  constitutes  the  difference  between  the  cost 
imported  into  this  country  alone,  during  the  periods  1861- 
No  allowance  whatever  is  made  for  the  increased  value  oi 
ni-ticle. 

I  do  not  contend  that  these  things  did  not  to  some  extei 
cause  of  the  rise  in  the  mte,  but  I  protest  against  such 
ments  as  those  made  by  Mr.  Stirling,  being  thrown  into  i 
public  discussion.  The  subject  is  sufficiently  difficult  wit 
additional  theory  being  added  to  the  already  cumbrous  m^ 
author  examined  the  trade  returns  he  might  have  r 
covery  that  the  exportation  of  bullion  to  India  and  the 
increased  from  £10,000,000  in  18G1  to  £23,000,000  i 
would  probably  have  been  very  liable  to  add  the  i 
£23,000,000  to  his  estimates,  but  a  very  slight  knowlc 
would  have  given  him  the  true  explanation  in  the  chan 
taken  plaee  in  our  trade  since  the  commencement  of  t 
war.  He  might  also  have  known  that  the  commercial 
countiy  do  not  object  to  s\ich  a  change  in  the  rate  of  ii 
state  of  the  Exchange  and  of  the  Bank's  reserve  rendei 
sary ;  but  when  they  find  the  Bank  experimenttilizing  at  i 
and  inflicting  losses,  and  creating  confusion  for  the  pur] 
ing  the  flow  of  a  few  hundred  thousands  of  bullion,  they 
liberty  of  questioning  the  soundness  of  the  policy  which 
nificant  an  end  entails  losses  on  them  to  ten  times  the  ai 
when  they  find  that  the  screw  is  put  on  in  obedience  to  s 
is  based  on  the  assumtion  that  drains  of  gold  never  aris^ 
an  excess  of  money,  they  protest  against  being  sacrifice 
which  is  on  the  face  of  it  so  paljmbly  absurd ;  and  dei 
svssuraption  which  is  condemned  by  the  most  eminent  thi 
subject,  be  at  once  fully  exammed  before  it  has  had  tim 
another  panic. 

Lest,  however,  it  should  be  siipposed  that  Mr.  Stirlir 
is  exhausted  in  this  innocent  ]nece  of  statistical  romance, 
point  out  one  or  two  other  points  of  his  production. 

It  would  generally  be  supposed  that  before  a  man  woi] 
the  responsibility  of  advising  a  great  commercial  nation 
application  of  a  policy  which  has  been  condemned  by  sor 
emment  financiers  and  economists,  he  would  at  least  give  a 
gree  of  his  attention  to  the  principal  pointsof  the  question, 
however,  appears  to  consider  this  entirely  unnecessary,  a] 
relying  on  the  dej^th  of  his  gi-eat  statistical  researchej 
professes  the  most  delightful  absence  of  knowledge  on 
Speaking  of  the  rule  formally  adopted  by  the  Court  of 
1827,  of  holding  an  invariable  amount  of  securities,  he 
"  It  is  difficult  to  understand  on  what  scientific  or  eve 


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The  Caryencij  Si/atan.  571 

;  nile  was  founded."     Now,  the  nile  in  qiiestion  wa« 

the  express  olyect  of  caiTying  out  tlic  same  principle  as  , 

Hi  is  intended  to  enforce.     That  Act  did  not  introduce  i 

ciple  or  policy,  but  merely  a  different  method  of  appli- 

1  feet  it  did  not  altogether  do  even  tliis,  as  the  Bank  had  ; 

n-ied  out  the  division  of  departments  since  1844.     The 

:h  the  nUe  of  1827  and  the  Act  of  1844  were  int^^nded 

that  of  making  our  mixed  cuiTcncy  fluctuate  as  a  purely  ■ 

5ncy  would  do.     The  Bank  had  acted  on  this  policy  in  ] 

nd  1839,  but  it  was  contended  that  it  had  not  been  , 

ifically  in  those  cases,  and  it  Wius  even  admitted  that  its  \ 

ation  had  produced  the  panics.    "  The  first  object  of  the  ' 

'  said  8ir  Eobeii)  Peel  in  the  House,  the  6th  May,  1847,  | 

w^hich   I  admit  it  has  failed,  viz.,  to  prevent  by  early  I 

severe  and  sudden  contitiction,  and  the  panic  and  con-  il 

nble  fi-om  it."  '■ 

nee  of  knowledge  on  tliis  impoii^mt  part  of  the  question 

e  be  attributed  Mr.  Stirling's  question — "How,  indeed, 

ing  law,  passed  but  the  other  day,  and  applying  to  Eng- 

ve  caused  con\nilsions,  stretching  far  into  other  times 

^  the  commercial  world  in  their  extent  ]"     It  cannot  be  ' 

inted  out  that  it  is  not  the  mere  Act  of  1844  wliich  is 

ut  the  principle  on  which  that  Act  is  based.     The  con- 

Tcd  to  have  all  anson  eitlier  from  political  events,  or  • 

)t  and  unsound  monetary  arrangements  ;  and  it  has  been  t; 

y  recent  writers  on  this  question  that  the  gi-eat  convul- 

countiy  were  caused  by  the  api)lication  of  the  same  5 

under  the  Act  of  1844  and  on  the  authority  of  the  * 

roduced  the  crises  of  1847  and  1857.       I   now  con-  • 

!Oinj>lete  abandonment  of  this  disastrous  and  unsound  • 

d    advance  that  it  is  not  enough  if  a  monetary  system  ! 

ogether  during  fair  weather.     It  shoiild  as  far  as  possi-  » 

itimcted  as  to  ])e  able  not  only  to  weather  stonns,  but 
to  and  prevent  them,  and  that  at  lejxst  it  should  not  tak(^ 
reating  or  increasing  them.  The  object  of  the  system 
0  attain  its  end  with  as  near  an  approach  to  perfection 
That  end  is  to  conduct  the  vast  operations  of  commerce  : 

;at€st  degree  of  perfectiou.  Instead  of  as  at  present 
nmerce  to  an  untenable  theory,  the  system  ought  to  be 
he  work  it  has  to  perform.  Therefore  prepare  for  all 
ent  demands  for  bullion  to  which  an  enormous  commerce 
producing  machinery  for  the  absorption  of  a  portion  of 
ck  of  bullion  which  is  in  the  chamiels  of  circulation  ;  i 

f  sacrificing  your  commercial  classes  for  the  purpose  of  , 

impact  a  stock  of  gold  tacitly  accumulated  to  meet  do- 
use of  your  reserve,  tide  over  the  demand,  and  by  thus  "^ 

commercial  or  money-making  machine  in  full  workhfg  '• 


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572      The  Bank  of  England  as  it  is,  and  as  it  oug} 

oixler,  depend  upon  it  your  stock  of  gold  will  be  soon 
than  by  throwing  the  machine  in  confusion. 

Mr.  Stirling  defines  the  support  of  public  credit  a.s  tl 
of  rotten  establishments.  This  is  a  rather  common  en 
system  of  credit  is  condemned  because,  like  aU  other  i 
is  liable  and  subject  to  abuse.  On  the  contrary,  publi< 
vast  system  of  credit  on  which  our  enormous  comment 
It  is  the  very  keystone  of  our  commercial  greatness, 
the  greatest  banking  and  financial  institutions  in  the  w 
us  to  conduct  those  gi'eat  industrial  oi)ei*ations  in  all  i>ar 
which  ai-e  silently  but  i*apidly  binding  in  one  commo 
whole  human  race,  and  enabling  the  human  family  t 
greatest  extent  the  inexhaustible  productive  forces  of 
protection  and  i>erfectionof  the  system,  which  collects  U 
and  directs  it  into  this  channel,  becomes  every  day  more : 
the  consequences  of  its  derangement  every  day  more  di 
})anics  which  we'dejilore  and  which  we  are  desirous 
useful  as  experience,  consisted  of  destructions  of  publi 
system  Mr.  Stirling  has  imdertaken  to  defend  has  re})eai 
those  disasters. 

Youra  ^'ery  respe< 
Liverpool,  April,  1865. 


THE  BANK  OF  ENGLAND  AS  IT  IS,  AND  AS  I 

TO  BE. 

jMil  Effingham  Wilson  has  lately  published  a  pam 
"  The  Bank  of  England  as  it  is,  and  as  it  ought  to  be 
John  Sawyer,  author  of  the  **  History  of  Banking,"  i 
gentleman  appears  to  be  at  issue  with  the  Chan 
Exchequer  in  respect  to  his  bill  gi'anting  a  lease  t< 
country  bankers  to  continue  the  circulation  of  their  m 
finite  period.  Since  Mi*.  Gladstone's  first  introduction  o 
he  lias  made  considei-able  alterations  in  it ;  for  instan 
duced  the  period  of  the  lease  for  issuing  notes  by  the  < 
from  25  years  to  10,  and  he  has  altogether  abandoned 
lating  to  the  compensation  to  be  paid  out  of  the  cons 
to  any  banker  to  whom  a  lease  is  granted,  and  who  s^ 
bankrupt,  in  respect  to  hi»> right  of  issue.  The  author 
this  portion  of  the  measure  were  evidently  wiitten  befi 
eel  lor  of  the  Exchequer  consented  to  abandon  the  clau 
pensation,  he  argues,  "  partakes  of  the  grossest  iujustic 
less  tlian  this — a  banker  hopelcKsly  insolvent  has  been 


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^ank  of  Englaml  as  it  is,  a)id  as  it  ought  to  be,      673 

Y  virtue  of  a  lease  granted  by  and  under  the  sanction  or 

ent,  until  lie  finds  himself  so  deeply  involved  as  to  render  , 

5  to  continue   his    banking  operations.      He   h,  there-  J 

)d    a    bankrupt.      The    Chancellor   of   the    Exchequer  * 

pay  the  bankrupt   a  compensation  for  the  loss  of  his  , 

author  fiirther  says  :  "  It  is  impossible  to  predict  how  I 

Y  banks  may  fail  between  tlie  time  the  measure  becomes  i 
ver  does  pass,  and  the  explication  of  the  lease,  but  we 

n  stating  our  belief  that,  in  such  events  happening,  the  f 

will  be  highly  blamable,  if  not  responsible,  for  the  con-  , 

One  remarkable  incident  in  reference  to  this  subject  is,  • 

failure  of  Messi-s.  Attwoodsand  Co.,  of  Birmingham,  not 

rhen  it  did,  it  might  have  had  a  lease  granted  by  Parlia-  ; 

notes,  being  at  the  time  "  hopelessly  insolvent,"     This  • 

I  undoubtedly  cause  the  Chancellor  of  the  Exchequer  to  » 

Q  inquiry  into  the  circumstances  of  the  banks  to  which  j 

0  sell,  for  a  consideration,  the  privilege  of  issuing  notes  ; 
)f  ten  years.  The  author  advocates  the  suppression  of  [ 
the  country  banks,  and  the  substitution  of  the  notes  of 

England  in  their  place  ;  but  we  think  it  would  be  inex- 

)pt  such  a  sweeping  measure  as  that  of  merging  all  the  pro-  \ 

of  issue  into  that  of  the  Bank  of  England.    The  law, as  it  * 

oes  undoubtedly  reserve  to  the  Government  the  power  to 

k  of  England  twelve  months'  notice  of  the  tei-mination  of  « 

as  a  bank  of  issue,  but  it  would  hardly  be  prudent  to  exer-  i 

er.     Mr.  Lawson  proposes  that  a  similar  notice  be  given  » 

ry  bankers,  viz.,  that  from  and  after  such  a  day  their  i» 

issuing  their  own  notes,  or  coining,  as  it  were,  their  own  ' 

1  cease  and  determine;  that  there  should  be  but  one  bank  ' 
he  whole  country,    and  that  bank    to  be  the  Bank  of 

be  manner  of  carrying  out  his  proposal  is  somewhat 
ill  doubtless  startle  not  only  the  authorities  of  the  Bank,  : 

tiose  who  are  opposed  to  its  present  monopoly.  He  says  : 
vemment  repay  the  Bank  of  England  the  £11,000,000 
that  corporation.  To  do  this  would  be  a  very  simple 
Dhe  Government  could  ea.sily  borrow  the  money  and  i)ay 
5uch  an  operation  would  be  no  increase  of  the  national 
Id  simply  be  the  transferring  of  the  debt  due  to  the  Bank 
^ctor  of  the  loan.  The  future  capital  of  tlie  Bank  to  be 
0,  divided  into  500,000  shares  of  £200  each,  of  which  .         \ 

ire,  or  £50,000,000,  would  be  called  up  ;  this  would  be 
bree  times  itti  prasent  capital,  and  would  leave  as  a  secu-  J 

iblic  £50,000,000  of  uncalled-for  stock  to  provide  against  i 

k"    Mr.  Lawson  also  proposes  that  the  Bank  of  England,  i 

)  its  branches  in  this  country,  should  establish  branches  [ 

Bombay,  and  Madras,    which  branches  should  be  the  j 

all  the  Indian  public  revenue,  the  same  as  is  practised  in  \ 

IV.  46  f 


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574       The  Bank  of  England  as  it  is,  and  as  it  ough 

this  country,  and  that  such  branches  should  have  th< 
'  issuing  Bank  of    Enghind  notes  precisely  on  the  samt 

adopted  in  London  and  the  several  country  branches  of 
England  \  that  the  amount  of  such  notes  l>e  £25,000,0( 
at  present  a  Government  paper  money  in  India,  amount! 
*  I  £7,000,000.       This   amount   is  far  below   the   require 

country,  and  it  might  be  largely  extended  without  em 
currency. 

Much  importance  is  undoubtedly  attached  by  the  m 

-  trading  community  to  the  extension  of  a  sound  system  < 

'  ,  rency  throughout  India  ;  but,  as  confidence  is  a  plant  of 

]  I  it  might  be  some  time  before  so  widely  extended  a  popu 

,  *  habituated  to  the  new  order  of  things.     Such  an  issue  c 

!  !  undoubtedly  break  down  the  immense  rates  of  interest  c 

,  \  shi'ofl's,  or  money-lenders,  who  abound  in  almost   all 

'  cities  and  towns  throughout  India,  and  whose  charge  of 

,  ,  per  cent,  per  month,  equal  to  36  per  cent,  per  annum, 

j  paid  for  bills  on  mercantile  houses  in  Calcutta. 

The  Indian  Government  notes  are  issued  through  the  p 
in  the  three  presidencies,  and  are  looked  upon  simply  a 
■  banks  issuing  them  ;    the  world-wide  fame  of  the  Ban 

has  extended  to  our  Indian  possessions,  and  the  people 
be  a  corporation  of  immense  wealth.  The  notes  therefor 
of  England,  if  introduced  into  India  would,  Mr.  La^ 
looked  upon  with  as  much  confidence  as  though  issued  h 
Government,  with  which  the  generality  of  the  people 
aider  it  identified,  and  it  would  be  diflicult  for  any  oi 
them  to  the  conti*ary. 

Mr.  Lawson  recommends  that,  in  addition  to  the  ba 
to  be  rendered  by  the  Bivnk  to  the  commercial  body,  thi 
'  might  be  empowered  to  Issue  a  large  amount  of  debeni 

I  to  accommockte  the  landed  interest   with  loans  on  tl 

landed  estates,  which  security  he  considers  fisu*  exceeds 
of  exchange.  Objections  have  been  made  to  the  Ba 
money  on  land,  as  such  business  is  transacted  by  compan 
formed  with  that  object ;  but  aa  such  advances  would  be 
issue  of  debentures,  they  would  not  interfere  with 
banking  business  of  the  corporation ;  in  fact  the  Bank 
sent  time  occasionally  lend  money,  not,  however,  to  any 
on  the  security  of  mortgages.  Mr.  Lawson's  work  \ 
details  respecting  the  management  of  the  Bank  of  En 
dealings  with  the  Government,  all  of  which  will  be  foiu 
not  only  to  the  public  generally,  but  even  to  those  wh 
is  to  have  daily  transactions  with  the  Bank  of  England 


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o7o 


NANKING  AND  FINANCIAL  ANECDOTES.  ; . 

No.  V.  ! 

A   FORTUNE   MADE  BY   PICKINO   UP  A   PIN. 

t|)on  a  day,"  in  the  year  1 787,  a  boy  hurried  along  the 
Lntiu,  and  stopped  before  one  of  the  handsomest  houses 
Ls  street.  The  boy  was  Jacques  Lafitte  ;  the  hotel  vra^s 
■  the  great  banker  Perregaux.  The  lad  had  not  long 
3  home  in  Bayonne,  and  had  come  to  Paris  to  seek  his 
►eful  and  ardent,  yet  with  very  indefinite  plans.  The 
irough  the  gate  of  the  mansion  ;  he  was  in  one  of  those  ' 

liich  form  bo  pleasant  a  characteristic  of  tlie  best  French  j 

courage  began   to  fiiil  him,  and  he  would  have  gone  [ 

came  had  not  the  conciergey  seeing  his  embarrassment,  \ 

d   kindly.     The  official  guardian  of  the  house  hiving  |* 

him,  "  I  want  to  see  Monsieur  Perregaux,"  «aid  the  lad, 
alk  upstairs,"  said  the  porter ;  and  the  country  lad  as- 
^ificent  flight  of  polished  steps.     The  banker  was  stand-  | 

indow  of  his  room,  reading  a  letter,  and  scarcely  looked 
dience  to  his  "  Entrez^'*  the  lad  come  in.     The  banker^  | 

only  made  aware  of  his  presence  by  the  lad's  hurried  i 

Monsieur  Perregaux  looked  up,  and  saw  a  boy  standing  jf 

at   him  very  anxiously.     The  great  .banker  courteously  j; 

hat  he  wanted.  \ 

d  the  lad,  "  I  have  neither  na  me,  fortune,  nor  station, 
lie  desire  and  the  power  to  work.     Can  you  give  me  a  ^ 

r  office,  if  it  is  but  the  lowest  ]  ** 

your  name,  young  man  ] "  interested  by  the  bright  and 
)untenance  of  the  boy. 

Lafitte." 
i  are  you  1 " 

monsieur.** 
I  a  Parisian  1  '* 

nnieur ;  I  was  bom  in  Bayonne." 
\  your  father  ? " 

carpenter,  monsieur ;  but  he  has  ten  children,  and  I  have  l, 

is  to  try  and  help  him  to  support  them." 
very  praiseworthy,  young  man  ;  but  I  have  no  place  just 
lispoaal.     Another  time,  perhaps." 
retired,  discouraged  and  sorrowful.     He  again  traversed 


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576  Banking  and  Financial  Anecdotes. 

that  magnificent  flight  of  stairs  and  passed  tlie  coui 
downcast  eyes,  he  saw  a  pin  on  the  ground,  and  »too 
up.  The  banker  was  watching  Jiim;  the  lad  cuiighed,  \ 
at  the  window.  The  banker  beckoned  him  to  retura, 
hope  lighted  up  the  lad's  face,  and  he  was  iii  a  moment 
the  presence  of  the  financier. 

"  The  young  man  who  would  pick  up  a  pin  imd  caref 
his  coat  must  have  a  mind  trained  to  economy  and  or 
he. 

"  Monsieur,"  said  the  young  man,  "  you  will  giimt  i 

"  Why  do  you  think  so  1 " 

"  Because  you  have  called  me  back." 

"  You  have  quick  intellect,  order,  and  economy  ;  yott 
a  good  clerk,"  said  the  banker.     "  Go  to  the  bank  ;  1  \ 
and  give  you  work." 

Jacques  Xafitte  was  installed  as  a  jimior  ckrk  Such 
could  not  long  remain  subordinate.  He  Ix^came  \mjoI 
cashier,  then  partner,  then  executor.  Ho  wii^s  ap|X)int 
the  Bank  of  France  in  1809,  and  in  1814  president 
he  had  been  msule  President  of  the  Chamber  of  C< 
judge  of  the  Tribunal  of  Commerce  for  the  department 
for  which  depai'tment  he  was  chosen  representative  in  tl 
Deputies.  He  had  held  high  positions  during  two  rei 
still  maintained  the  respect  of  the  commercial  com  mi 
esteem  of  his  private  Mends,  always  cherishing  with 
memory  of  his  early  benefactor.  On  the  26th  of  Mar 
Jacques  Lafitte,  the  great  banker,  whose  career  illustra 
"  What  great  events  from  little  causes  spring  I"  for  hi 
turned  on  picking  up  a  pin. 


ROTHSCHILD  AND  JOMES   LOTD. 

The  elder  Rothschild,  "  the  pillar  of  the  Exclmnge,"  had 
to  Mr.  Jones  Loyd,  and  carried  this  feeling  so  &.r  as  even, 
wish  to  injure  his  commercial  reputation.  In  1825,  wJiei 
failures  were  taking  place,  Bothschild,  unsolicited,  opened 
Jones  Loyd's  bank,  and  paid  in  notes  to  the  amount  of  £i 
Loyd  was  only  too  pleased  to  have  such  an  ijiiiuential  < 
had  no  suspicion  that  the  great  financier  had  any  arri^i 
the  halcyon  days  were  few^  for  a  week  or  so  afterwa 


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577 


:  for  the  entire  amount  was  presented,  tliis  cheque 
heaviest  that  was  ever  di-awn.  Mr.  Lojd's  clerk 
ur  to  know  if  it  was  to  be  paid.  Mr.  Loyd  then  at 
child's  idea  had  been  that,  in  the  run  that  had  taken 
ally,  some  of  this  money  would  be  used — that  the 
d  not  be  met,  and  that  thus,  at  the  least,  confidence 
k  would  receive  a  very  heavy  blow  and  sore  dis. 
[ioyd  was,  however,  prepared  to  meet  it,  and  the 
ver  the  counter.  Any  ill-feeling  that  Mr.  Roths- 
l  was  at  once  absorbed  in  his  astonishment  and 
)ld  parry  of  the  attack,  and  he  again  offered  his 
•.  But  the  hand  that  parried  one  blow  could 
m,  and  that  on  a  very  sore  place — Mr.  Roths- 
I.     The  offer  was  refused. 


OPTIONAL   NOTES. 

and  financial  crisis  of  1793  showed  in  glaring 
;  effects  of  the  legislation  of  that  day,  which,  by 
)lishment  of  joiut-&tt>ck  banks,  eucourag(jd  the 
B  class  of  small  tradesmen  in  the  country,  passing 
*rs,  but  undesei-ving  the  title.  One  of  the  causes 
>e  found  in  the  reckless  ojxjrationa  of  many  of 
•ticularly  then*  unchecked  issue  of  notes.  There 
x)ut  three  hundred  country  bankers,  who  manu- 
r,  some  of  them  very  liberally,  and  more  than 

what  were  tenned  "optional  notes,"  payable 
lis  or  in  the  country.  These  little  bits  of  paper, 
in  nearly  all  instances  pictorial  representations 
Dot  exist,  came  floating  up  to  London  in  great 
elcome  in  the  shops,  yet  taken  on  the  credit  of  the 
^e  was  resorted  to  on  the  part  of  the  country 
■  paper  into  the  great  circle. 


MARK  8PJEK)T. 

I  in  London  in  1780— if,  indeed,  anybody  or 
been  settled  in  London  at  that  time,  when  th« 
irming  every  one.  He  turned  his  attention  to 
ean.s  and  his  influence  were  alike  small,  and  no 


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Banh'iHij  ami  Fifiancinl  Anectlf^es, 


prosiicretl  ;  govemtueut  loiinji  arul  j^ovemment  lotieriea  al 
him.  Mr-  ^^lark  S])i  ot  ^*n  <"iic  ijcciiBiijn  reedved  a%Lsit  from 
whuoweilbiiii  aiiirgr.suin,  and  wlio  tuM  tlie  f;rc:itcupittiHs 
betome  so— that  luv,  t.lit*  \'iiittii\  wsia  a  niiiit'd  maiL  Tii 
a  bixiki-r,  iim\  he  iufonutHl  Mr.  Sitrot  that  h*^  hnd  done  1 
large  extent  for  a  noMe  earl,  wlii>,  being  dis8at(H!ied  with  th 
qnotution.s  had  t^iken,  had  ivf\Hed  to  payhLs  agent,  Mr. 
U|)oii  Lin^a*d  the  hn»kta not  to  he  nnesi^y  ;  that  the  elami  ^ 
pressed  ;  but  nuidc^  an  arninj^eiueTit  that  the  two  shouhl 
nohlcuuuu  On  bniiiiie*^  thnntxhts  intent  they  aecordii\gl 
earl,  who,  on  ii]>plie;vtion  l»eing  ft>riiially  made,  merely 
cavalier  Htylt',  tbat  it  was  not  eonveuicnt  t-a  Sfttk^  }m 
Sprot,  however,  was  not  to  Ik-  put  otl'  thus,  and  timdy 
ank'ss  tlie  aminmt  w;is  jniid  U^iore  such  and  such  an  1 
day,  lie  w^niii  jHint  his  h>rd?ihip  on  the  Stock  Extdiange  a 
TIh'  threat — for  tliu  carrying'  out  of  which,  Mr.  Hprot'fi  c 
ft  guarantee — vxas  iHeetual,  and  tlie  debt  was  paid  hei 
named. 


FRAltB  BY  A  MEMBER  OP  PARLIAMENT. 
Few  trinkj  which  were  not  far  life  (says  Mr,  Francis*),  ha 
much  interest  In  the  City  aa  that  in  which  Benjam 
member  of  the  vSenate,  a  member  of  the  Stock  Exchang 
fesaeil  felon — stood  at  the  bar  of  tlie  Old  Bailey  on  i 
defniiidii\g  Sir  Thomas  Plomer.  The  bench  Wii«  ci-ow 
rank  and  resjiect^iljility  of  the  City  ;  and  the  mehiiicho] 
of  the  prisoner,  bis  grave  l>earing  and  dejected  counter 
the  iiit4?reat  of  t!ie  spectatoi's  and  befq>oko  the  reinorse  c 
In  1811,  Bir  Thoma^s  Flonier  infonned  his  broker,! 
Walah,  M.P.,  that  liaving  iMinght  an  estate  it  wotild  be 
sell  out  a  lai^  amount  of  sttx^k  to  complete  the  purchaa 
advised  Sir  Thomas  not  to  sell  tlirectly,  as  there  was  e 
of  the  funds  rising  ;  and  the  title  of  the  estate  not  be 
this  advice  wbb  complied  witL  About  the  middle  < 
however,  Mr.  Walsh  changed  his  opinion,  and  jvf>eat« 
Thomas  to  sell  his  stock,  alleging  liia  belief  tbat  the  pri 
Again,  the  broker's  suggestion  was  complied  witb  ;  but  i 
before  the  money  was  recjuired  for   the  estate  it  w^as  reo 

*  €lm»mcki  of  tii«  BtoclL  Exciioage. 


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Failwe  oj  AUtcoods^  Spaomr  Sf  Co. 


57» 


it,  to  prevc^nt  it  from  lying  idle,  exchequer  bills  should 
ith  the  proc*:!<*d8.  Sir  Thomaij  again  consented,  and 
knionnting  to  £2iJ,000  to  Mr.  Wal^h,  who  promised  to 
at  CrOrtlingH*,  the  bajikei's  to  Sir  Thomas,  and  hand 
receipt  In  the  evening,  however,  he  pre^nted  thoir 
it  tor  only  XB^OOO,  and  making  some  excuse  for  not 
I  the  remaining  exohe<]uer  billj*,  promised  to  deliver 
•iillowing  daVi  adding  that^  as  he  had  not  settled  for 
>jiaid  tlie  difference  to  the  aecoiuit  of  ^Sir  Thoiiiii8.  The 
,y  home  called  at  Ids  Imtdiers,  and  found  that,  tliuugh 
exchequer  hills  htul  been  deiMJsited,  the  cheque  of  Mr. 
^IGjOOOliad  not  been  received  in  time  for  ]>re.sentation* 
as,  however^  att^i^'he^l  to  the  transaction  until  next  thijr, 
le  was  refused  payment  Sir  Thomas  wa^i  immediatelj 
n  inquiry  instituted.  It  was  soon  found  that  the  monej 
[y  gained  Inud  boen  disposed  of  in  i>aying  hia  brother 
^Jiig  :8 11,000  American  stock,  and  in  investing 
doubloons.  The  prisoner  was  found  guilty  \  but 
reserved  for  the  judges,  being  interjweted  favouralily, 
ged   from  Newgate,  and  expelled  from  the  House  of 


ILU  RE  OF  ATT  WOODS,  SPOONER  AKD  CO. 

leeting  of  the  croditors  of  tliis  bank  waa  held  in  the  Town* 
mi»  on  the  30th  March ;. the  Mayor  (Mr.  Henry  Wiggiu) 
e  was  a  large  attendance. 

a  opening  the  proceedings,  remarked  that  it  would  be  re- 
the  firfvt  meeting,  which  took  place  that  day  fortnight,  they 
lour  of  electing  him  a  member  of  their  oc^mmittee ;  but  he 
y  that  owing  U>  his  numerous  engagements  he  had  been 
1  ,...,.  i  1^,^^  meetings  of  that  committee.  In  ormseqnence 
ly,  he  was  not  a  cre<Utor,  he  yesterday  sent  in  hia 

Ml   <M^-.  r  IV-   ^ ^^'-i  fn>m  Mr.  Allen  a  letter  r€H|neetiDg 

lit  at  this  I  i  litire  mi^ht  l»e  an  impression  that 

ur   in  wh.i.  i;,       /ice  had  done.     As  that  impression 

he  hfwl  great  pltriiiurc  in  consenting  to  be  present,  and, 

vj  jLii  u'Ui  ijjiu  iJ  iiuetiiig,  he  was  inclined  Ur  believe  that  in 

V  was  in  his  proper  place.     (Hear,  hear.) 

J  over  tlie  meetings  of  the  c^jmmittee, 

had  done, 

!  Ui  of  the  committee,  read  the  foUciwing 

-^ver,  iiius  a  graver  duty,  or  one  involving  deeper 

,  }iivxi  hud  by  a  Birmingham  meeting  upon  iinv  body 

A>wnam4^  than  the  duty  iutmated  to  this  oomjnittee  by  th# 


580  Failure  of  Att woods ^  Spooner  8f  Co. 

,  .                      first  meeting  of  the  creditors  of  Attwoods,  Spooner,  Mar 
The  stoppcoge  of  that  firm  will  form  an  ei)och  of  prominent  a] 

I  '                      portance  in  the  commercial  history  of  the  midland  metroj 

\  I                      barrassing,  and  but  too  probably  in  some  cases  ruinous,  effec 

I  work  themselves  out,  and  must  be  felt  for  years  to  com< 

♦  mittee  believe  that  they  will  not  be  censured  as  having  nai 
;  the  terms  of  their  appointment,  if  they  do  not  present  to  you 

line,  a  history  of  the  bank  from  the  day  on  winch  its  doors  ■? 
!  1701.     Questions  may  arise  in  order  to  a  final  winding  up 

j  wliich  may  oblige  the  assignees  to  go  back  beyond  tlie  dat< 

your  committee  propose  to  start — questions  of  the  liabilities 

•  joint  estates,  affecting  the  liabilities  of  successive  and  varying 
I    ^  of  the  firm  to  successive  creditors.     Those  questions  may  be 

I  justment,  inasmuch  as  not  only  all  the  original  partners  are  d 

.    *  successive  and  varying  partners  who  have  been  members  of 

*j  only,  and  he  of  comparatively  recent  date,  survives.     Tl 

*  f  should  they  arise,  must  be  dealt  with  by  the  assignees  unc 
I    "  legal  advice.     In  their  hfmds  your  committee  leave  them.     Y 

start  from  the  1st  of  January,  1854.     But  in  starting  fr 
.    '  selected  as  being  the  date  from  which  the  last  combinatic 

commences,  your  committee  must  premise  that  the  bank  was 
condition  as  far  back  at  least  as  1836,  the  year'in  which  Mat 
the  father,  died.     He  died  largely  indebted  to  the  bank,  and 

•  tions  that  his  estates  should  be  sold  to  pay  his  debts,  and 
ma^le  to  his  sons  by  the  bank  should  be  charged  to  his  ace 
gards  the  sale  of  the  estates  the  directions  of  the  will  wer< 

•  with.  Instead  of  this  the  debt  to  the  bank  was  largely 
mortgages  to  the  bank  to  a  large  amount.  In  1853  Ric 
insisted  upon  the  transfer  of  the  estates  to  the  bank  ai 
largely  increased  sums  then  owing   by  the  Attwoods.     Y( 

:  think   it  right  to  premise,  further,  that  the  account   of   1 

one  of  the   partners,  who  died  in  1840,  does   not  appear 

overtlrawn.     He  had  for  some  years  a  capital  of  £22,000  w 

to   his   executors.      This   gentleman   had  taken  steps  to  y 

\  Attwood  family  the  necessity  of  paying  off  the  large  fare 

when   his   agent   was    stayed  from  further    proceeilings   b 

announcing  Mr.  Isaac  Spooner's  sudden  death.     In  Janu 

firm   stood   as    follows  : — George   Attw^ood,  Richard    Spo< 

I  Attwood,  George  Marshall,  Henry  Marshall,  Thomas  Aur< 

By  none  of  these  partners  was  capital  brought  into  the  banl 

mittee  have  been  more  than  startled  by  the  discovery  that 

there  no  cajutal  at  this  date,  but  a  deficiency  of  about  £1 

deficiency,  the  main  cause  of  the  ultimate  ruin,  arose  frc 

£235,000  of  this  sum  being  the  balance  of  the  money  dra 

Attwood  family,  after  giving  credit  for  the  value  of  the  ests 

Thomas  Attwood  aud  Richard  Spooner  appear  to  have  joL 

the  Brickfields  estate  with  bank  money  in  1813.     This  esl 

f erred  in   1825  to  Richard  Spooner,  at  the  sum  of  £20,C 

charged  to  him  in  the  bank   bm)ks.      By  the   accumulatic 

beyond  profits,  and  a  payment  of  £4,000  for  enfranchisemen 

increased  to  £27,074.  17s.  lOrf.  in  January,  1854.     Against 

.  bank  held  as  securities  the  deeds  of  the  estate  and  certai] 

:  Mr.  Spooner  paid  interest  at  4  per  cent.,  and  was  debitec 

,  miums  on  the  policies.     The  estate  was  subsequently  conve 

W.  Whateley  upon  trust  for  sale  to  secure  the  bank,  and  is  i 


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681 


lied  at  £20,220.  Of  this  estate  Mr.  Richard  Spooner  received 
'he  creditors  will  clearly  understand  the  position  of  each  of 
)ers  of  the  firm  of  1854,  in  reference  to  the  bank,  from  the 
ttement : — Mr.  George  Attwood  died  in  May,  1854,  having, 
icy  of  Mr.  Spooner,  made  over  all  his  real  and  personal 
8  bank.  His  debt,  after  deducting  tlie  value  of  his  estates, 
I  of   £235,000.     Mr.    George   Marshall   died   in   February, 

brought  in  no  capital,  and  leaving  no  deficiency  on  his 
ount.  Mr.  Thomas  Attwood  died  March  6,  1856 ;  he 
nk  £12,286.  li)s.  3d.  Against  this  there  are  no  securities 
[r.  Thomas  Aurelius  Attwood  died  April  8,  1864,  having 
beyond  the  pro^xn'tion  assigned  to  him  as  a  partner 
Jd.  Against  this  there  are  no  securities  or  assets.  Mr. 
died  November  24,  1864.  The  balance  against  him  was 
2rf.,  reduced  by  estimated  value  of  estates  conveyed  in  trust 
(ley,  for  the  bank,  as  already  stated,  and  by  a  sum  on  his 
at,  to  £3,448.  Mr.  Spooner  had  regularly  applied  his  aimual 
im  assigned  to  him  as  a  partner,  to  tlie  liquidation  of  principal 
n  the  Brickfields  estate  account.  Mr.  Henry  Marsluill  sur- 
ught  no  capital  into  the  bank.  He  appears  in  the  bank  books 
to  the  amount  of  £1,545,  but  for  this  there  is  a  sufficient 
t,  which,  had  the  bank  remained  open  but  two  or  three  days 
have  stood  to  his  credit  and  left  him  clear.  Your  committee 
J  that  the  Messrs.  Marshall  cannot  be  regarded  as  having 
16  position  of  chief  clerk  to  that  of  partner,  at  a  remuneration 
ceeding  the  salaries  of  their  former  position,  from  any  selfish 
^ever  strongly  this  step  must  be  condemned  on  other  grounds, 
elf-aggrandizement  can  be  imputed  to  them ;  nor  did  they 
lil  themselves  of  their  partnership  in  any  way  which  calls  for 
•  committee.  The  arrangement  between  the  six  partners 
been  that  George  Attwood  should  have  an  annuity  of  £1,500 ; 
aer,  £1,000 ;  the  two  Marshalls,  £750  each ;  and  Thomas 
ood,  £500.  On  the  death  of  George  Marshall  the  sum  assigned 
xelius  Attwood  was  increased  to  £750.  Since  Midsummer, 
iving  partners  have  each  taken  credit  for  £1,000  per  annum. 
on  fche  foregoing  figures  and  facts  that  in  1854  the  bank  was 
b  £270,000.  At  the  time  of  the  stoppage  this  deficit  had 
7ard8  of  £340,000.  To  the  growth  of  this  alarming  and 
ency  your  committee  have  naturally  directed  their  close 
I  a  point  foremost  among  those  on  which  the  suffering  creditors 
md  deserve  full  information.     The  causes  are  patent — 1.  The 

of  interest  to  the  bank  by  the  Attwood  withdrawals,  inas- 
states  of  George  Attwood  yielded  but  a  small  interest,  even 
t  at  which  they  were  taken  to.  Richard  S^woner's  debt,  as 
5en  stated,  bore  interest  at  £4  per  cent.,  and  was  regularly 
share  of  the  supposed  profits.  No  bank  could  contend  suc- 
ist  such  family  overdrawing  as  has  been  brought  to  light 
vestigation.  At  the  risk  of  repetition  on  so  grave  a  point  the 
3r  the  following  recapitulation : — 

ttwood  ...        £235,000 

Spooner,  deducting  value  of   estates,  life 

J,  and  credit  ou  private  account     3,448 

Utwood  12,286 

^nreliiid  Attwood      6.769 

£257,493 


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Failure  of  Attwoods,  Bpooner  ^  Co. 


"  2.  The  system  of  overdrawing  by  customers  seems  to  have  I 
in  this  bank  to  too  large  an  extent.  3.  While  it  has  l 
that  the  profits  of  the  bank  ranged  from  £15,<)00  to  £20,00( 
and  that  thus  every  year  the  formidable  deficit  with  which  18 
being  reduced,  the  figures  and  the  fact  are  far  otherwise.  TJ 
of  the  bank  for  the  eleven  years  from  January,  1854,  to  J 
wittiout  any  provision  for  bad  debts,  was  only  £49,019. 
little  more  than  £4,0lK)  a  year ;  of  this  £32,687.  lOs.  has  be 
the  crtidit  of  the  piirtners  and  drawn  out,  £1,400  has  been  \ 
depreciation  of  bank  premises,  leaving  a  balance  of  only  £1^ 
to  meet  the  large  amount  of  bad  debts.  These  bad  debts,  ( 
above  small  amount  of  profit,  swell  the  deficiency  to  upward 
Your  committee  feel  it  to  be  due  to  Mr.  Edwards,  the  casl 
been  in  the  bank  for  nearly  thirty  years),  to  say  that  they 
the  conclusion  that  he  was  entirely  ignorant  of  the  mi 
affairs  until  recent  negotiations  brought  it  to  light.  Your  < 
requested  by  Mr.  Whateley,  the  solicitor  who  carried  t 
arrangement  for  the  partnership  of  1854,  and  the  sale  of  the 
that  he  was  entirely  ignorant  of  the  amount  of  the  debts 
George  Attwood  and  his  family,  and  that  he  was  never  i 
until  after  the  death  of  Mr.  Aurelius  Attwood,  in  April  la 
wliich  time  negotiations  were  commenced  and  carried  on, 
before  the  bank  stopped  payment,  for  amalgamating  it  with 
ham  Joint-Stock  Bank,  Limited.  Your  committee,  lo 
resolution  under  which  they  were  appointed,  gladly  perceiv 
part  of  their  duty  to  bring  in  a  verdict,  nicely  apportioning  i 
moral  guilt  which  attaches,  respectively  or  collectively,  to  t 
this  bank  has  been  thus  brought  to  ruin.  They  dare  not,  h 
their  solemn  duty  to  bring  before  those  who  are  their  fel 
and  who  have  so  largely,  so  patiently,  and  so  generously  coi 
their  unwelcome  task,  the  naked  figures  and  facts  herein  en 
cannot  but  anticipate  that  their  report  will  produce  a  d 
painful  impression,  not  in  Birmingham  only,  but  throughoui 
cial  world.  Nor  can  they  hide  from  themselves  that  the  ant 
fication  for  continuing  the  bank  after  January,  1864,  has  wholl 
There  was  no  accumulation  of  profits  to  justify  the  hoj 
diminishing  the  overwhelming  deficiency ;  while  neither  t 
the  estates  turning  out  to  be  very  valuable,  nor  that  of 
family  coming  to  the  rescue,  was  sufficient  to  encourage  th 
of  the  business.  They  record  this  with  the  deepest  son 
cannot  tamper  with  the  first  principles  of  commercial  i 
disregard  of  which  goes  far  to  anniliilate  confidence,  and  sc 
entails  ruin  upon  innocent  thousands.  For  many  years 
bank  has  attracted  to  itself  a  generation  of  depositors,  wh 
in  its  stability  has  been  all  but  unbounded — a  confidei 
creasing  than  waning  at  Christmas  last.  The  researc 
committee  enable  them  to  affirm  that  for  11  years,  at  any  ra 
vency  was  hopeless.  Thus  much  the  committee  has  been  u] 
hold,  lest  reticence  should  be  regarded  as  acquiescence  or  ap] 
turn  gladly  from  this  most  painful  branch  of  their  duty  1 
efforts  which  they  have  made  to  secure  the  main  end  of  their 
as  large  and  as  prompt  a  dividend  as  possible  for  themse 
fellow-suflerers,  believing  as  they  do,  that  this  is  pre-emine 
which  an  early,  though  small,  dividend  i^  preferable  to  t] 


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Failure  (^  AUwoods^  Spoon er  Sf  Co.  583 

itage.  Your  committee  address  themselves  without  a  day's 
nvestigation  of  the  statement  presented  to  the  creditors  on 

surviving  partner.  The  pressure  u[X)n  the  accountant  and 
f  for  the  proof  of  debt*  and  otlier  duties  which  could  not  be 
precluded  such  a  minute  and  exhaustive  scrutiny  as  would 
them  to  pledge  themselves  for  every  item,  but  they  report 
iving  that  the  statement  is  substantially  correct.  With  regard 
m1  estates  they  have  great  pleasure  in  reporting  that  the  vtdua- 
•eaoock,  made  especially  with  reference  to  the  probabilities  of 
net,  confirms  the  figure  presented  in  the  balance-sheet.  Your 
[it  a  deputation,  consisting  of  the  chairman,  Mr.  John  Gough, 
I  Hughes,  to  London,  to  seek  an  interview  with  Mr.  Wolverley 
•rder  to  place  before  that  gentleman  the  strong  claim  which, 
ived,  the  case  of  the  creditors  had  upon  him.  They  groimded 
lainly  upon  the  facts  that  this  gentleman  is  the  son  of 
woo<l,  the  younger,  and  consequently  grtiudson  of  Matthias 
or  ;  and  that  each  had  in  turn  been  executor  of  his  father's 
esent  disaster  being  mainly  brought  about  by  Mr.  Attwood, 
er,  and  Mr.  George  Attwood  especially,  as  hereinbefore  stated. 
ceivcd  with  great  courtesy  and  listened  to  with  great  patience 
erley  Attwood  and  Mr.  Benjamin  Attwood,  and  the  chair mau 
lied  the  views  of  the  committee  in  a  letter,  of  which  the  fat*: 
py,  left  it  with  those  gentlemen  : —  '  '^ 

«  '  London,  March  21, 1865. 
;  the  first  meeting  of  the  committee  appointed  by  tlie  creditors 
ID.  of  Attwoods,  Sjx>oner,  and  Marshall,  with  the  view  of 
tate  out  of  bankruptcy  and  securing  as  large  and  aji  early  a 
ossible  for  the  sufi'erers,  the  committee  were  unanimously  of 
bbey  could  not  discharge  their  responsible  and  anxious  dutiea 
to  their  own  consciences  or  to  their  constituents  without 
portunity  of  representing  to  yourself,  as  an  eminent  member 
od  family,  the  strong  moral  claim  which,  as  they  respectfully 
sreditors  have  upon  your  favourable  consideration, 
tement  with  which  Mr,  Henry  Marshall  made  the  startling 
it  which  has  spread  panic  and,  in  many  cases,  probable  ruin, 
3irmingham  and  a  widespread  adjacent  district,  distinctly 
isolvency  to  the  withdrawal  of  very  large  sums  by  certain 
the  Attwood  family — those  sums  not  their  own  capital,  but 
t)oth  of  their  richer  and  poorer  customers. 

George  Attwood  upwards  of  i^400,(J()0  were  gratlually  drawn 
vn  specidations ;  by  Mr.  Thomas  Attwood  £10,000. 

fruits  of  these  proceedings,  struggling  tradesmen,  hard<> 
sans,  provident  farmers,  necessitous  widows,  a  long  catalogue 

institutions,  and  of  societies  which  attest  the  provident 
poor, — to  say  nothing  of  suflerers  in  easier  circumstances,  but 
ts  were  for  the  most  part  the  rewards  of  laborious  industry, — 
many  instances  much,  in  not  a  few  cases,  their  all. 
aianguine  hope  that  an  English  merchant  bearing  an  honoured 
dowed  with  wealth  will  not  think  our  application  inequitable 
able,  we  solicit,  in  no  spirit  of  dictation,  still  less  of  menace, 
pealing  to  compassion  only,  such  a  contribution  towards  the 
he  assets  as  may  help  to  mitigate  the  loss  which  presses  so 
very  many. 

>  well  assured  that  should  yon  allow  us  to  announce  to  onr 
on  Thursday  next  your  compliance  with  our  request,  your 


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584  Failure  of  AUicoods^  Spooner  8f  Co. 

act  will  be  hailed  with  grateful  acclamation,  not  only  by 
have  raised  a  statue  to  one  bearing  the  name  of  Attwood,  bi 
the  entire  mercantile  community,  as  an  act  worthy  of  the  1 
of  a  British  merchant ;  and  if  any  other  reward  be'  wani 
found  in  the  blessings  of  many  an  one  who  is  yet  anxiously 
issue  of  this  catastrophe  as  an  issue  involving  the  comfort 
himself  and  family, 

"  *  I  am  unwilling  to  trespass  further  upon  your  patien 
cipate  your  reluctance  by  an  importunity  which  I  have  good 
wholly  needless. 

"  *  The  tone  of  the  proceedings  of  the  meeting  on  Thurs 
inconsiderable  extent  in  your  hands. 

"  *  Believe  me,  sir,  to  remain,  with  much  respect, 

"  *  Your  obedient  ser 
"  '  John  C.  Miller,  D.D., 

«  *  M.  Wolverley  Attwood,  Esq.' 

"  The  reply  of  Mr.  Attwood  was  received  by  the  chairn 
(Wednesday)  morning,  and  is  as  follows  : — 

**  *  London,  Tuesday 

"'Rev.  Sir, — I  have  to  acknowledge  your  letter  of  the  21s 
to  me  on  that  day  by  yourself,  Mr.  Jolm  Gough,  and  Mr.  . 
stating  that  you  came  as  a  deputation  from  the  committer 
the  creditors  of  the  late  firm  of  Attwoods,  Spooner,  and  Ma 
this  letter,  and  the  explanations  given  by  the  deputation, 
that  the  main  object  was  to  learn  whether  I  would  now  cc 
chase  that  portion  of  the  estates  belonging  to  the  bank  whic 
their  susi>ension  of  payment,  and  in  order  to  facilitate  th 
then  in  progress  between  the  late  firm  and  the  Joint- Stoc 
offered  to  purchase  at  a  price  about  £20,000  beyond  the  va 
other  object  was  to  inquire  whether  I  would  make  a  contril 
mitigating  the  losses  which  would  be  felt  so  severely  by  mj 
of  the  smaller  creditors,  and  you  particularly  called  my  att< 
was  represented  in  the  letter  as  a  moral  claim  upon  me,  on 
belonging  to  the  Attwood  family,  I  can  by  no  means  adu 
or  reasonableness  of  any  such  claim  on  me,  entirely  una 
have  always  been,  both  with  the  late  firm  of  Attwoods, 
Marshall,  and  tlie  former  firm  of  Attwoods,  Spooner,  and 
any  question  of  joint  interest  was  concerned.  Mr.  Gough 
tioned  the  assistance  which  I  had  ofiered  in  order  to  faci! 
negotiations  as  affording  a  ground  for  this  appeal  to  me, 
tainly  1  cannot  consider  as  a  sufficient  reason  for  asking  i 
debts  of  others  with  which  1  have  had  nothing  whatever  to 
I  was  somewhat  surprised  at  such  request  being  made, 
regard  that  appeal  as  altogther  unfounded,  I  fully  conciu 
pressions  of  sympathy  for  the  suff'erers  by  this  disastroui 
it  appears,  however,  that  in  the  actual  position  of  affairs  : 
to  the  sale  of  the  estates  can  be  taken  otherwise  than  by 
It  may  be  scarcely  necessary  for  me  to  add  that  if  they  think 
any  communication  to  me  it  will  receive  my  best  attention. 
"  *  1  am,  reverend  sir,  with  much  respect, 

"  *  Your  obedient  servant, 

"*M.  WOLVERLEI 

** '  The  Rev.  Dr.  Miller,  D.D.,  Chairman  of  the  Committe 
of  the  late  firm  of  Attwoods,  Spooner^  and  Marshall.' 


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Failure  of  Atltcoods,  Spooner  Sf  Co. 


S86 


ttee  by  public  adTcrti&einent  earnestly  pressed  upon  custom - 
efer  their  accounts  finally  to  any  other  bank  until  it  was 
Jier  or  no  a  purcliiise  oould  be  found  lutiong  t]io  bankers  of 
IT  ooujmitteo  iDimetliately  a«Jverti>ied  for  tenders  from 
re  every  facility  for  tbo  necessary  inspection  of  the  bank 
3pre«eiitfttiveB  of  auy  finn  deairoua  of  making  a  bond  Jide 
naiiikteo  repcirt  tliat  of  the  tondeni  received  the  one  which 
lOst  beneficitd  to  the  creditors  is  from  the  Bimiingham 
ik,  Liiniteci.  The  tender  is  to  purchase  the  yjroperty  aiid 
^  bank  upon  the  terms  of  paying  the  creditors  ti  dividend 
e  pound,  and  taking  upon  themselves  (the  purchasers)  all 
^es.  The  oommitteey  with  the  approval  of  the  assignee^^ 
commend  that  tluB  tender  be  atlopted  by  the  creditors,  and 
I  accordingly  l>e  passed  by  the  jneefciug  to-day.  Further, 
lavinj^r  been  informed  by  the  directoni  of  the  Joint- Stock 
e  event  of  their  offer  being  approved  at  the  ineeting  of 
,  it  ij8  their  desire  and  intention,  providcAl  the  requisite 
>rdcd.  by  the  assignees,  to  make  immediate  arrangements 
msiness  on  the  premisfs  of  the  late  bank,  the  committee, 
th  a  ret|uest  they  have  already  made  to  the  customers  and 
which  baa  been  extensively  advertised,  deem  it  a  duty 
lace  before  the  customerH  and  deptjisitora  the  claims  of  tho 
sers  of  the  property  imd  assets  of  the  lat<e  bank  to  their 
ideratiou  in  referettoe  to  the  future,  Your  cumruittee  ocm- 
ditors  on  the  choice  of  assignees  nia^le  before  the  registrar 
,  in  acoctrcbnce  with  their  recommendation,  believing,  as 
iise  gentlemen  are  well  qnaliticfl  to  conduct  any  negotia- 
be  necessary,  and  that  in  all  respects  they  will  faithfully 
minister  their  trust  as  to  alleviate  to  the  utmost  the  effects 
\  disaster.  The  proceeding  before  the  registrar  on  Monday 
a  made  public ;  our  committte  need  not  lengthen  their 
ing  them,  they  simply  reotird  that  the  strongly  expressed 
itors  that  every  effort  should  be  made  to  take  the  estate 
cy  baa  thus  far  been  complied  with,  and  that  th©  iasue  uf 
fs  was  entirely  satisfactory.  Your  committee  now  leave 
our  hands  with  at  least  this  satisfaction,  that  they  have 
In  their  investigations,  and  have  kept  back  nothing  which 
r  to  bring  before  you.  The  aasigiiees  lia've  expressed  the 
tjimittee  may  be  continued  for  couaael  and  oo-operatiou  i 
»  in  the  lukmhs  of  the  creditors  now  assembled. — SigiR^d 
\  oommitteei 


"  JoHH  C.  MiLLBU,  D.D.,  Chairman/' 


fucludod  by  moving  that  the  report  he  had  just  read  be 
»pted. 

Dconded  the  resolution,  whidi  was  carried  unanimously. 
1,  ui  nstiitr  iu  move  tlie  next  resolution,  remarked  that  ho 
l>e  necessary  from  him,  because  lio  perceived 

-  tliat  the  resolution  was  one  wliieli  would 
[  iQsitt/ra  geuendly .    The  resolution  which  he  had 

-  hcaitl  the  report  of  the  committee,  is  of 
I  irmingham  Joint-Stock  Bank  to  puxcha«e  tho 


686 


Failure  qf  Atttvoodsy  Spooner  8f  Co, 


property  and  asnets  of  the  late  bank  on  the  terms  of  paying  ai 
of  lis.  3rf.  in  the  pound,  and  to  take  upon  themselves  (the 
coats  and  expenses,  should  be  accepted  by  the  creditors.  (. 
went  onto  say  that  after  the  able  and  elaborate  statement  si 
dition  of  the  bank  and  its  state  of  hopeless  insolvency,  they  ' 
agree  with  him  in  saying  that  the  tender  of  Us.  3<i.  was  as  ni 
reasonably  expected.  (Hear,  hear.)  It  -was  certainly  more  tl 
and  he  thought  he  held  the  same  opinion  as  the  mass  of  credil 
he  had  no  doubt,  thankfully  accept  the  ofier. 

Mr.  J.  R.  Allen  seconded  the  resolution,  which  was  carri< 
and  amid  applause. 

Alderman  Turner  observed  that  he  had  been  appoints 
and  it  was  thouglit  desirable  by  the  committee  that  one  < 
should  move  the  next  resolution.  He  might  add  that  the 
unanimously  in  favour  of  the  resolution,  which  was  as  foil 

"  Tliat  this  meeting  having  been  given  to  imderstand,  fr* 
the  committee,  that  the  continue<l  assistance  of  the  comn 
necting  link  between  the  great  body  of  creditors  and  the  i 
be  acceptable  to  the  latter,  respectfully  requests  and  emp 
mittee  to  continue  in  office  until  they  find  that  their  further 
office  would  not  be  productive  of  good  to  tlie  estate." 

Mr.  J.  Gough  briefly  seconded  the  resolution,  which  waa 
mously. 

Mr.  J.  Suckling  said  he  was  perfectly  gratified  that  sb 
offer  as  that  of  the  Birmingham  Joint-Stock  Bank  had  be< 
it  had  not  been  stated  when  the  dividend  was  proposed  t< 
he  would  be  still  more  gratified  to  learn  that  the  whole 
part  would  be  paid  at  an  early  period.  •  He  begged  to  in 
dividend  was  proposed  to  be  paid. 

Dr.  Miller  said  he  was  most  happy  to  be  able  to  answ 
as  satisfactorily  as  at  present  could  be  done.  Of  course  t 
that  the  bank  had  not  yet  got  possession,  and  before  the  tr; 
pleted  it  was  necessary  that  they  should  bring  the  matt 
shareholders,  and  it  was  also  necessary  that  the  estate  si; 
conveyed  to  them,  when  the  bargain  was  ratified.  He  bel 
that  he  wa.s  correct  in  stating  that  at  the  earliest  moment 
possible  the  legal  ratification  of  the  bargain  would  be  mad« 
paid ;  and,  further,  that  no  unnecessary  delay,  bo  far  as 
were  concerned,  would  take  place.  Although  he  was  as  3 
with  the  company,  he  felt  bound  to  say  that  their  ofl'er  wi 
some  one,  and  he  believed  they  h^  every  right  to 
for  their  own  comfort  and  honour,  they  would  carry  out 
speedily  as  possible. 

Mr.  A.  Bird  said  he  had  been  privately  informed  witl 
immature  bills  of  exchange  upon  which  money  had  not  1 
they  would  be  returned  to  the  creditors.  It  would  be  sal 
creditors  generally  to  hear  an  explanation  on  the  point. 

Dr.  Miller,  in  reply,  said  that  he  was  instructed  on  the  bej 
this  was  a  question  of  law  of  a  somewhat  nice  kind,  and 
desirable  to  go  into  legal  discussions  on  that  occasion.  Th 
and  a  committee  of  their  own  choice,  and  also  able  leg 
he  would  suggest  to  Mr.  Bird  that  thoAe  questions  she 
their  hands. 


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lure  of  the  South  Hants  Banking  Company.        587 

,  in  proposing  a  vote  of  thanks  to  the  mayor  for  his  kind- 
ig  the  chair  at  their  various  meetings,  mentioned  one  or  two 
ters  in  reference  to  the  part  he  had  taken  in  these  proceed- 
aich  he  spoke  in  highly  complimentary  terms  of  the  service.-? 
«n  rendered  by  the  mayor  in  the  matter^  and  concluded  by 
ring  a  vote  of  thanks  to  him. 

iley  briefly  seconded   the  motion,   which  was  carried  amid 
I.     Three  hearty  cheers  were  then  given  for  Dr.  Miller,  at 
rliich  that  gentleman  said  he  was  glad  they  could  cheer  so 
1«.  3c/.  in  the  pound, 
having  briefly  replied,  the  proceedings  were  brought  te  a 


3  OF  THE  SOUTH  HANTS  BANKING  COMPANY, 
moon  of  the  30th  March,  it  was  publicly  announced 
ith  Hants  Banking  Company,  whose  head  offices  were  at 
Grosport,  had  suspended  2)ayment.  The  title  of  the  estab- 
3  the  Portsmouth,  Portsea,  Gosport,  and  South  Hants 
ipany,  but  as  it  had  no  branch  at  Portsmouth,  it  w^as 
ly  known  simply  as  the  South  Hants  Banking  Company, 
nd  liabilities  are  estimated  at  between  £170,000  and 
rid  it  is  feared  that  the  deficit  will  be  between  £G0,000 
,  a  considerable  portion  of  which  is  attributed  to  a  bad 
iboiit  £16,000  said  to  have  been  misappropriated  by  Mr. 
of  the  managing  directors.  The  bank  was  not  under  the 
bility  Act,  and  the  shareholders  number  about  GO,  of 
iderable  portion  are  said  to  be  wealthy.  It  was  sttirted 
issued  Bank  of  England  notes,  Messrs.  Williams,  Deacon 
Lg  the  London  agents.  The  business  of  the  bank  has 
p  by  the  Provincial  Banking  Company,  and  it  is  believed 
ly  all  the  depositors  will  be  paid  in  full. 

of  the  shareholders  of  the  bank  was  held  on  the  4th  April, 

s  Hotel,  Portsea,  to  receive  a  statement  relative  to  the  posi- 

ink. 

1    Starling  Blake,   a  large  shareholder,  was  voted  to  the 

man  entered  into  a  full  and  lucid  explanation  respecting  his 
ith  the  bank,  and  how  the  winding-up  of  the  concern  was 
t.  It  was  proposed  to  close  the  bank  when  it  was  found  that 
sly  insolvent ;  but  he  insisted  that  Messrs.  Williams,  Deacon, 
lid  be  consulted,  in  common  courtesy,  seeing  they  were  in- 
4t  firm  ^0,000.  The  result  of  that  interview  was  their 
He  stated  that  the  depositors  would  receive  every  halfpenny 
y  in  time,  and  congratulated  the  meeting  that  they  were  now 
U — Mesars.  Quilter  and  Ball  being  most  eminent  and  hon- 
The  Provincial  Banking  Corporation  had  purchased  the 
lebaxik  for  iuL^GOO,  aiidhad  not  the  concern  been  closed  aa  it 


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88         Failure  of  the  South  Sants  Banking  Compi 

was,  double  or  treble  that  sum  would  have  been  given.  1 
that  day  was  to  confirm  the  nomination  of  Mr.  Ball  (Quilt 
official  liquidator.  He  asked  them  to  avoid  litigation,  ai 
make  the  best  of  a  bad  job.  He  would  be  one  of  the  prii 
yet  he  rejoiced  that  he  had  the  money  to  pay,  and  tha 
would  not  sutler. 

Mr.  Hoskins,  of  Gosport,  asked  if  a  statement  of  the 
bank  was  not  forthcoming. 

Mr.  Quilter  (of  the  firm  of  Quilter,  Ball,  and  Co.,  acoounta 
in  whose  hands  the  matter  had  been  placed)  said  that 
closed  on  Friday,  and  on  that  day  they  were  exceedingly  a 
poac  of  the  gcxxiwill  of  the  bank  in  the  best  possible  way, 
until  twelve  o'clock  that  they  succeeded  in  making  such  a 
(with  tlie  Provincial  Banking  Corporation)  as  might  produ< 
or  £3,000.  At  the  present  m  ^meat  he  was  not  in  a  posit: 
full  and  complete  report  on  the  various  matters  connected 
but  he  would,  as  far  as  he  was  able,  answer  any  questions 
put  to  him.  From  the  best  information  that  had  been  g 
was  afraid  the  loss  wliich  would  have  to  be  made  good  by  tl 
would  amount  to  a  very  considerable  sum,  but  whether  it  woi 
£60,000,  or  even  £70,000,  he  was  not  at  present  in  a  \ 
Much  would  depend  ui)on  the  realisation  of  a  very  large  d 
bank,  wliich  they  hoped  might  be  realised  almost  in  full ;  o 
certainly  to  the  extent  of  many  shillings  in  the  poimd. 

Mr.  Maroin  asked  what  was  the  amount  of  that  account  1 

Mr.  Quilter  said  about  £40,000. 

Mr.  S.  S.  Long — If  you  are  successful  in  getting  in  thia 
liabilities  of  the  bank  still  be  £50,000  ? 

Mr.  Quilter — Yes  ;  and  if  not,  those  liabilities  will  be  incr 
thing  like  £20,000.  That  is  the  best  approximate  estin 
you. 

A  Shareholder  asked  if  there  had  been  any  auditor  appoi 

Mr.  Quilter  said  he  understood  that  there  had  been.  He 
the  balance-sheets  from  1861  to  1864,  and  he  did  not  observ 
signature  during  that  period  ;  but  up  to  1861,  the  accoimts 
larly  audited  by  Mr.  Lacey,  of  Petersfield. 

Mr.  Biddle  remarked  that  12  per  cent,  was  the  last  divid 
shareholders,  even  though  the  bank  was  then  hopelessly  ins 

Mr.  White,  one  of  the  directors,  said  that  he  had  done  hi 
satisfied  that  the  half-year's  earnings  warranted  them  in  pa 
of  12  per  cent. ;  and  £700  had  been  put  aside  for  bad 
debts. 

From  a  conversation  that  ensued,  it  appeared  that  the  I 
vent  when  the  last  issue  of  new  shares  took  place. 

Mr.  R.  W.  Ford,  solicitor,  inquired  whether  Mr.  Quiltei 
tion  to  lay  before  the  meeting  a  statement  of  the  assets  as  p 
shareholders  at  the  last  half-yearly  meeting,  February  last 

Mr.  Quilter  said  he  had  seen  a  paper  which  he  supposed 
to  be,  a  copy  of  the  balance-sheet  submitted  to  that  meetri 
sorry  to  say  there  were  names  entered  as  being  indebted  to 
certain  fictitious  debits  had  been  placed  there--(crie8  of 
that  he  believed  that  this  balance-sheet  did  not  speak  the  t 

The  Chairman,  in  a  short  speech,  vindicated  the  conduct 
of  Mr.  Smithers,  and  Mr.  Loney,  who  were  directors,  and  ^ 


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Uhe  South  Hants  Banking  Company.         589 

I  the  aff'airs  of  the  bauk  na  be  bimnelf  was,  the  managing 
[r.  Reeves  and  Mr.  Wliit^ ;  but  with  regard  Ui  the 
em  thought  that  if  he  hat^l  pinned  at  all  he  hjid  ainned 

iHT>.trt,  &  director,  said  he  had  a  copy  of  the  balance-Bheot 
Kig  in  Febmaty  last,  from  whii^h  it  appeared  that 
14/1.  8d.  Ho  harl  no  more  jMiwer  to  look  at  the 
iitiemen  who  hfuJ  overdrawn  than  any  shareholder,  nor 
know  of  the  extraordinary  overilraw  until  Chri^titiaa 
H>d  that  there  were  not  less  than  £15,00(1  of  notes  and 

the  time  of  the  failure  of  Koy,  SiKjncer  and  QtK  Mr. 
r>r,  aince  dejwl)  induced  tl*o»e  gentlemen  to  ilraw  crosa 
Vmt  those  billi*  were  never  properly  dated^  antl  they 
aoe  and  locked  up,  and  were  now  lf>st  by  the  statute  of 

emarkecl  that  they  hail  been  entered  a«  assets, 
a&ketl  as  to  the  amount  of  Mr.  Beeves'  defitnency, 
I  thuro  W!^  some  ditficolty  in  extracting  the  truth  from 
:V  laugh.)  They  hful  put  liini  into  the  cnicilile  on  several 
.  besitifJ formation  they  etndd  get  from  him  was  that  he 
)(»f  l>ank  money,  but ''  he  (Mr.  Reevoft)  was  boiuid  tosav 
WTi  Ui  any  directiir  except  himself."  They  had  wneceetled, 
[g  from  hitn  ftome  »ecuritiea,  whieli  would  diminish  the 
t,  although  he  believed  tJmt  the  loss  sustained  through 

amount  to  £14,000.     (Expre8sii»ns  of  surprise,) 
irml  that  he  knew  nothing  of  the  matter  until  the  previoiiB 

It  did  not  apfiear  in  Mr,  Reeves'  current  iiecount,  or  ho 
.  have  known  it.  He  was  petrified  when  he  heard  of  it. 
*aid  there  aiti^iared  U)  have  been  an  acctiunt  b<Mjk  kept 
)ank,  who  wiw  never  able  U>  understand  it.  He  amid 
•coiiuts  tally,  ^«d  after  beiug  there  a  few  years  he  begaii 
lung  WHS  wrong.  He  wtvs  told  to  do  things  in  this  and 
ilid  so ;  but  "  when  I  got  married  (said  the  man)  I  began 
libiUty  and  character  more  tba^j  before,  and  I  began  to 
acter  wan  tfu-nisheil  I  knew  that  there  were  thmgs 
r  but  I  bad  no  iiower  to  interfere."  He  (the  ehairman) 
Von  allow  this  thing  to  go  on  ?  *'  He  replied  that  the 
tiy  Mr.  White,  and  those  books  were  so  kept  that  nobody 

^r  to  the  Provineixd  Banking  Corporation, 
M  iH  riH  to  the  nature  of  their  liability , 

^,,l   -^*That  it  is  desirable  that  the  pro- 

^.iiMuoi  ,^liv>iUd  be  appointed  the  official  liquidator  of  the 

tft  agreed  to,  although  Mr.  Quilter  explained  that  the 

Huch   an    orticer  was  in  the  hands   of    Vice-Chancellor 

would,  however,  no  doubt,  give  effect  to  the   recum- 

incss  liaving  l>eeu  disposed  of,  the  prooecdings  dosed. 


47 


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590 


THE  UNITY  BANK  FHAUDS. 

At  the  Central  Criminal  Court,  on  the  17th  April,  Mr.  J 
Terry,  the  late  manager  of  the  Unity  Joint-Stock  Bank,  i 
Bnrch,  the  secretary  of  that  association,  surrendered  to 
before  Mr.  Justice  Smith,  upon  a  charge  of  having  unla^ 
a  certain  false  balance-sheet  of  the  aft  airs  of  the  Unity  B 
with  intent  to  deceive  the  shareholders  and  the  public  1 
four  days. 

Mr.  Giffard,  Q.C.    (specially  retained),  Mr.   F.   H. 
Montague  Williams  conducted  the  prosecution ;  Serjeant 
ally  retained,  with  Mr.  Sleigh  and  Mr.  Nicholson,  to  de 
and  Serjeant  Ballantine,  also  specijdly  retained,  and  M 
counsel  for  the  other  defendent,  Burch. 

Serjeant  Parry,  when  the  defendants  were  called  upon 
technical  objection,  which  was  overnded. 

Tlie  defendants,  by  the  advice  of  their  counsel,  refuse 
under  the  statute,  a  plea  of  not  guilty  was  entered  for  th 
proceeded. 

Mr.  Giffard,  Q.C,  said  the  investigation  on  which  the 
to  enter  was  one  of  considerable  public  importance.  Stri 
nicality,  the  charge  in  substance  amounted  to  this — thj 
dants  were  guilty  of  fraudulently  manufacturing  a  bal 
purported  to  represent  the  aflairs  of  the  bank  of  which  1 
to  be  in  a  prosperous  condition,  whereas,  in  fact,  the 
time  hopelessly  insolvent,  and  the  defendants  kuew  it 
toward  jiublic  companies  and  joint-stock  undertakings  -^ 
of  late  years  taken  hatl  rendered  private  enterprise  more 
association  of  cai)ital  and  labour,  which  was  a  feature  < 
made  the  conduct  of  banking  associations  and  other  joint 
.  a  subject  of  great  public  interest.  In  proportion,  howeve 
takings  increased  in  number  and  importance,  so  in  j 
would  expect  to  find  that  frauds  which  could  but  arise  in 
of  private  capital  would  be  likely  to  arise  out  of  those 
dustry  and  enterprise,  and  it  was  of  great  importance  ths 
were  induced  to  invest  their  money  in  them  should  be  al 
integrity  of  those  charged  with  the  conduct  of  such  associ 
where  the  persons  intrusted  with  the  management  of 
failed  through  misfortune,  an  ordinary  civil  remedy  mij 
attach ;  but  if  it  should  be  found  that  the  persons  so  in 
guilty  of  a  fraudulent  attempt  to  conceal  the  truth,  ant 
undertaking  which  they  knew  to  be  hopelessly  insolvent 
stitute  a  monstrous  fraud  upon  the  public.  That  was  rei 
of  the  case  against  the  prisoners.  The  Unity  Bank  w 
1st  of  January,  1856.  Its  staff  at  least  was  appointed 
began  to  be  incurred  about  that  time,  but  some  difficul 
with  reference  to  the  grant  of  a  charter,  it  was  not  u 
May  in  that  year  that  the  bank  commenced  business.  ^ 
time  a  manager,  but  no  person  filling  exactly  the  position 
pied  by  the  prisoner  Burch.  The  manager  at  that 
Chambers,  and  for  some  time  the  affairs  of  the  bank  se 
on  in  a  very  unsatisfactory  way.  Large  debts  were  in< 
returns  were  not  satisfactory,  and  in  so  serious  a  state 


'kr 


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The  Unity  Bank  Frauds.  591 

B  bank,  think  its  affairs  to  be  that,  on  the  26th  of  August, 
)  a  letter  pointing  out  its  condition,  and  the  necessity  for 
in  tlie  management,  to  save  it  from  failure.  Tliat  letter, 
Mr.  Alderman  Mechi,  the  chairman  of  the  bank,  was  as 

>ir, — Since  our  last  court-day  I  have  taken  into  consideration 
the  Unity  Bank,  and  my  own  responsibilities  and  duties  in 
rewith.  After  what  has  passed,  and  the  small  share  of  sup- 
\  from  the  chair,  I  do  not  feel  personally  inclined,  nor  do  I 
tage  that  would  arise  from  my  a^in  attending  the  court 
may  imperatively  require  me.  I  desire,  however,  to  put  on 
my  views  as  to  our  present  position,  and  as  to  the  course 
)  be  pursued.  You  are  aware  that  I  have  for  some  time  past 
:>siticm  of  the  bank  with  appreliension.  That  apprehension 
usly  increjwed  by  the  recent  revelations.  The  committee 
ly  instance  has  brought  to  light  larger  losses  and  a  far  more 
m  of  management  tlian  we  were,  any  of  us,  previously  aware 
ination  has  also  elicited  facts  coimected  with  our  losses, 
very  serious  character.  1  have  ventured  to  submit  to  your. 
Ueagues  what  appears  to  me  to  be  our  only  remedy.  But 
Y  colleagues  generally  concurring  with  me  as  to  the  serious 
st  transactions,  I  do  not  find  them  prepared  to  take  the  only 
as  it  seems  to  me,  the  j^roperty  is  likely  to  be  saved  from 
iuch  circumstances  the  grave  question  which  I  have  to  con- 
lat  course  of  proceedingr  I  can  divest  myself  of  any  portion 
esjwnsibility  which  devolves  upon  me,  and  how  far  I  can 
y  duty,  not  only  to  those  who  at  my  instance  have  in- 
>ney  in  the  bank,  but  to  all  proprietors  at  large  who  have 
with  their  confidence  as  a  director.  There  is  no  ordinary 
>rietorR  until  the  month  of  January.  The  circumstances, 
►  serious  that  I  tliink  it  ought  to  be  deliberately  considered 
1  to  await  that  period,  or  give  the  proprietary  an  oppor- 
iering  the  position  of  the  bank.  In  the  balance-sheet  of 
'il,  1857,  our  losses  were  stated  to  have  been  £1,100.  Accord- 
ement  at  the  court  in  July,  they  are  now  upwards  of  £10,000, 
of  nearly  £9,000  in  three  months.  The  customers'  deposits 
not  increase ;  at  the  present  time  they  would  be  less  than 
lonths  since  had  not  several  thousand  pounds  been  paid  in 
call  of  the  Unity  Fire  Company.  Our  paid-up  capital 
been  so  dealt  with  that  we  have  no  more  than  £15,000 — 
e  whole — available  at  the  present  time  for  banking  pur- 
irea,  of  the  value  of  £50  each,  are  at  the  present  time  not 
share  market.  Without  reference  to  the  many  other  grave 
tcts  which  are  known  to  us,  it  appears  to  me  that  the  fore- 
.tions  alone  are  sufficient  to  indicate  the  propriety  of  call- 
tora  together.  I  accordingly  request  that  you  will  have  the 
►mit  this  communication  to  the  court,  and  take  its  deli* 
as  to  the  propriety  of  calling  a  special  meeting  of  the  pro- 
lider  the  position  of  the  bank.  In  the  event  of  any  such 
1  be  prepared  to  state  unreservetUy  my  views  of  the  present 
property,  and  at  the  same  time  to  resign  my  seat  as  a  direc- 
atrary  event,  I  shall,  at  any  rate,  feel  that  I  have  done  my 
f  on  record  my  protest  against  the  present  system  of  manage- 
>pinion  as  to  the  course  which  ought  to  be  taken  in  justice 


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592 


The  Unity  Bank  Frauds. 


Burcli  was  afterwarcJB  appointed  as  a  kind  of  agent  of  the  dii 
act  as  a  check  on  the  manager.  Mr.  Eyre  was,  besides,  v 
satisfied  with  the  then  manager,  Mr.  Chambers,  and  the  la 
Terry,  who  was  appointed  in  his  stead,  afterwards  performec 
manager,  and  Burch  those  of  secretary.  So  the  bank  went 
yearly  balance-sheets  were  prepared  from  time  to  time.  ! 
had  been  incurred,  and  those  were  explained  to  the  shar 
general  meeting ;  £38,000  appeared  as  a  loss  arising  from 
and  various  transactions,  and  in  1860  it  was  considered  t< 
writeoff  that  sum  as  Ust  and  irrecoverable  capital.  The 
were  entirely  of  that  opinion,  and  from  that  time  that  £38,< 
out  of  the  accounts.  That  sum  up  to  that  time  appeared  r 
should  do,  in  the  balance-sheet  as  a  bad  debt.  On  the  30th 
balance-sheet  was  prepared,  though  not  circulated  until  Sepi 
year,  and  that  balance  sheet  formed  the  subject  of  the  prese 
was  as  follows  : — 

Balance-sheet  of  the  Unity  Joint-Stoek  Mutual  Banking  A 
June  30,  1862. 
Dr. 

Capital  account       

Amount  due  on  current  and  other  accounts         

Balance  of  interest  account,  after  payment  of 

interest  to  customers    £3,937  16    0 

Balance  of  profit  and  loss  account, 

as  per  last  report  £4,079  15    6 

Less  dividend  of   12j.  6d.  per 
share  paid  last  half-year      ..«      1,824    7    6 

2,255    8    0 


';    1 


Or. 

Preliminary  expenses,  as  per  last  report     ^ .• 

Investments    in    bank   premises,   induding    the    Brighton 

freehold       •••      •      ••• 

Current  expenses  from  3l8t  of  December,  1861,  to  30th  of 

June,  1862 

Bills  discounted,  loans  to  ctistomers,  &c 

Cash  in  hand 


The  original  capital  of  the  bank  was  ;£dOO,000,  of  whicb 
been  subscribed.  There  had  been  some  further  calls,  and 
which  he  was  now  speaking  £179,196  had  been  paid  up.  ^ 
in  the  balance-sheet  which  would  be  the  principal  subjec 
tion,  were  the  *'  amount  due  on  current  and  other  accoui 
^'  bills  discounted,  loans  to  customers,  &c.,  £207,668 ;"  anc 
£38,715."  A  profit  of  £969  during  the  period  to  which  th 
related  was  shown,  but  that  did  not  appear  on  the  balan 
and  those  four  matters  constituted  the  charges  in  respec 
indictment  had  been  preferred  against  the  prisoners.  T 
have  to  say  whether  the  three  items  to  which  he  had  jus 


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The  Unity  Bank  Frauds  593 

Ise  to  the  knowledge  of  the  prisoners.  The  balance-sheet  was 
th  of  June,  1802.  In  October,  1863,  the  busincvss  of  the  bank 
red  to  the  London  and  Middlesex  Banking  Company.  So 
b  on,  until  it  was  di8a)vered  on  investigation  that  so  far  from 
-sheet  representing  the  true  state  of  the  bank,  upwards  of 
d  not  £159,302,  was  in  fact  the  amount  due  on  current  and 
ts.  The  indebtedness  of  the  bank  was  misrepresented  to  the 
3,000  ;  the  cash  in  hand,  which  was  put  down  at  £;i8,715,  was 
£29,0(X)  odd  ;  and,  what  was  the  most  serious  representation 
Qount  of  bilb  discounted,  loans  to  customers,  <fec  ,  which  con- 
floating  capital  of  the  bank,  and  which  was  put  down  at 
as,  in  fact,  only  about  £16,000.  That  £16,000,  in  truth, 
nly  available  assets  of  the  bank  ;  the  £207,668  was  made  up 
able  extent  of  bills  dishonourecl  in  1860  and  1861,  and  in 
[ne  of  which  the  persons  giving  them  had  afterwards  become 
d  others  had  been  prosecuted  for  forging  the  very  bills  they 
tnd  80  far  from  the  bank  making  a  pro  tit  from  its  trading 
id  from  its  commencement  steadily  lost  out  of  its  capital 
jar.  In  one  case,  where  a  man  named  Frasi  was  convicted  in 
forging  bills  which  the  bank  afterwards  discounted  believing 
enuine,the  prisoner  Terry  actually  gave  evidence  on  the  trial, 
r  that  a  debt  of  nearly  £1,600,  or  the  amount  of  which  the 
jn  defrauded  by  the  forgery  of  Frasi,  was  actually  entered  as 
lie  bank,  and  formed  part  of  the  £207,668.  Again,  a  man 
ard  executed  an  assignment  to  his  creditors.  He  luul  at  that 
>ank  between  £5,000  and  £6,000  of  dishonoured  bills,  most  of 
3en  dishonoured  in  1861.  On  the  31st  of  December,  1861, 
Terry,  without  the  knowledge  or  authority  of  the  directors, 
>lease  on  the  part  of  the  bank.  Of  that  release  there  was  no 
of  the  books  of  the  bank.  On  the  very  day  on  which  that 
cnted  a  loan  for  £066  was  granted  to  Bunyard  by  the  bjink, 
romissory  note  in  the  handwriting  of  Burcli  was  given.  Of 
ere  was  no  entry  in  the  books  of  the  bank,  nor  of  £735 
Bunyard  in  the  previous  October.  The  learned  counsel  pro- 
5r  to  various  other  parties  who  had  accounts  at  the  bank,  the 
ig  by  whom  were  hopelessly  irrecoverable,  and  yet  these 
)  carried  to  the  good  assets  of  the  establishment.  In  trans- 
tmoimt  of  £73  from  the  head  office  to  the  west-end  branch 
sum  of  £73  either  stolen  or  lost,  and  yet  this  £73  figured 
good  assets.  In  point  of  fact  the  item  of  £207,000  set  down 
kj-sheet  of  the  30th  of  June,  1862,  under  the  head  of  "  Bills 
oans  to  customers,  <fec.,"  was  the  most  illusory  thing  in  the 
f  the  truth  were  told  it  ought  to  have  been  inserted  in  the 
BS.  The  tt  cettra  placed  after  it  failed  to  alter  its  aspect,  for 
d  all  doubt  an  absolutely  false  entry.  On  one  occasion  there 
►f  £50  gone  out  of  the  till,  and  that  also  figured  in  the  same 
jry  part  of  the  balance-sheet  there  was  falsehood — falsehood 
bo  be  well  calculated  to  deceive  the  shareholders.  Who  was 
>r  it  ?  If  it  were  true  that  the  directors  were  parties  to  it, 
►e  no  answer  for  the  defendants.  If  the  defendants  said, 
you  prosecute  the  directors,  and  not  us  ?"  that  would  be  no 
;heir  own  fraud.  Then,  if  it  was  said  that  if  the  directors 
^mplices  they  were  grossly  negligent,  with  what  face  could  his 
is  have  the  efirontery  to  state  that  their  clients  were  rogues 


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591  The  Unity  Bank  Frauds. 

and  the  directors  fools,  or  the  latter  would  have  found  tl 
Such  reasoning  as  this  would  he  no  reply  whatever  to  a 
ceedings  which  were  criminal.  The  real  question  for  the  jui 
this — who  were  tlie  persons  guilty  of  dishonesty  ?  And  her 
asked,  what  motive  could  the  defendants  have  to  com  mi 
This,  however,  was  not  a  cogent  inquiry,  for,  if  the  fact  wer< 
they   committed  it,  it  was  not  material  to  find  out  the  mot 

*  there  no  motive  ?  Mr.  Chamhers  had  been  c<^)mpelled  to  i 
J  the  bank  was  not  progressing  satisfactorily.  Terry,  having 
I                      highest  character,  came  in  as  manager  in  his  room,  and  in  t 

*  with  the  assurance,  that  he  would  relieve  the  concern  from  t 
ments  which  had  clouded  its  career  from  its  earliest  date. 

!  motive,  then,  of  maintaining  the  bank,  and  of  securing  to  I 

;  tinuance  of  his  position.      He  was  selected  for  that    positi 

I  number  of  candidates,  and  he  had  exhibited  the  utmost  anxi 

the  appointment.  Besides,  it  was  a  well-known  fact  that  tt 
)  a  bank  possessed  great  facilities  for  obtaining  money  over  s 

salary.  Terry  had  constantly  been  in  the  habit  of  advan 
I  to   people    who   were  hopelessly  insolvent,  and  some  of  tl 

were  made  without  the  knowledge  of  the  directors — a  i 
i  itself  atlbrded  somewhat  of  a  reasonable  surmise  of  the  advanta 

^  reaped  from  the  situation.    So  far  as  Mr.  Alderman  Meclii  was 

had  been  a  loser  by  the  bank  to  the  large  amount  of  £18,000,  { 
J  remained  firmly  by  the  establishment  from  first  to  last.  The  sai] 

applied  more  or  less  to  Mr.  Eyre  and  all  the  other  directors — 

had  been  lieavy  losers.  It  was  not  a  cardinal  point  to  inc 
'  directors  had  not  found  out  the  fraud  which  w:xs  being  comi 

it  was  not  unimportant  to  remember  that  Mr.  Eyre  had  reco 

*  some  agent  should  be  appointed  to  act  as.a  check  upon  the  m? 
j  was  apix)inted  as  that  agent,  and  at  that  time  he  also  bor 
I  character.  It  was  explained  to  him  then  that  he  was  to  hav 
j  Terry,  and  now  the  charge  against  him  was,  that  insteac 
t  Terry  he  had  lulled  the  directors  into  security  by  leading  th 
\                      that  he  was  doing  so,  when  in  point  of  fact  he  was  fraudide 

matters  to  go  on  without  exercising  any  check  or  making  a 

If  this  were  so,  and  if  Burch  knew  what  Terry  was  doing,  t] 

"  both  guilty  of  conspiring  together  to  commit  the  fraud.     \V 

asked  before  the  committee  of  liquidators  whether  the  cook 

counts  was  done  with  the  knowledge  or  by  the  connivance  of 

I  they  distinctly  stated  that  it  was  not.     The  learned  counsel 

'  saying  that  the  questions  for  the  jury  to  determine  were  mos 

^  those  questions  being,  whether  a  balance-sheet  could  be  p 

;',  shareholders  with  the  intention  wilfully  to  deceive  them,  th< 

,'•  having  no  means  of  investigating  the  truth  or  falsehood  of  1 

I  whether  this  mode  of  fraud  was  to  be  submitted  to  with  impu 

;  commercial  city  like  the  metrojx)lis. 

Jl  Mr.  Oswald  Thomas  Howell  was  called  and  examined 

Lewis.  He  said  he  was  a  partner  in  the  firm  of  Walker  an< 
U  that  he  was  the  accountant  for  the  liquidators  in  the  cas< 

^  Bank.  He  produced  the  books  and  referred  to  the  various  ite 

•j  by  the  learned  counsel  for  the  prosecution.     His  evidence  i 

t  purely  of  a  technical  character,  and  it  will  be  unnecessary 

I  detail.     The  ettect  of  it  was  to  show  that  some  of  the  bills 

;,'  balance-sheet  to  represent  assets  were  utterly  worthless, thai 


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The  Unity  Bank  Frauds.  595 

Uised  by  the  bank,  and  tliat  in  one  or  two  cases  where  bills  that 
oounted  turned  out  to  be  forgeries,  and  the  parties  to  them 
secuted,  these  bills  were  still  brought  forward,  and  api>eared  in 
•heet  that  was  tlie  subject  of  inquiry  as  assets  of  the  bank  ; 
the  guilty  knowledge  of  the  defendants,  it  was  proved  that 
entries  in  the  books  of  the  bank  relating  ^  these  instruments 
landwriting  of  one  or  other  of  the  defendants.  It  may  be 
he  final  result  of  the  transactions  of  this  unfortunate  bank 
►e  that  about  £170,(XK)  was  called  up  out  of  a  nominal  capital 
and  that  the  whole  of  this  amoimt  was  lest  with  the  exception 
)or  share,  the  amount  paid  by  the  shareholders  being  £00  per 
sritness,  in  the  course  of  his  evidence,  produced  two  balance- 
uscript,  which  he  stated  were  in  the  handwriting  of  the  def end- 
One  of  the  manuscripts  was  an  exact  copy  of  the  balance- 
bove,  and  the  other  gave  the  same  totals,  but  set  forth  the 
id  the  items  by  which  tJiese  totals  were  made,  and  it  mentioned 
bills  and  loans,  which  did  not  appear  in  the  condensed  balance- 
said  the  past- due  bills  did  not  appear  in  the  balance-sheets 
,  1862.  Witness  also  produced  a  balance-sheet  of  the  west- 
the  bank,  in  which  there  was  an  item  of  £7,900  as  past-due 
201  as  loans  to  customers,  both  of  which  were  included  in 
le  general  balance-sheet  of  £207,000.  In  addition  to  this 
d  in  the  western  branch  accounts  an  entry  of  £50,  being  a 
and  there  also  appeared  to  have  been  a  remittance  lost  in  its 
r,  after  recovering  several  of  the  cheques,  left  a  loss  of  £73 
IS  entered  in  the  books,  and  that  those  amounts,  the  witness 
acludedin  the  £207,000  in  June,  1862.  Witness  produced  a 
lis  dishonoured  prior  to  the  30th  of  June,  1862,  and  did- 
is  to  the  amount  of  £50,000,  which  he  stated  were  included 
insets. 

L  was  further  examined  and  cross-examined  at  very  great 
;gard  to  the  various  items  mentioned  in  the  learned  oounsel^B 
also  as  to  the  state  of  the  overdrawn  accounts  of  various 
id  the  result  showed  that  gross  mismanagement  was  the 
of  the  whole  affair. 

[nation,  the  witness  said  he  only  knew  what  books  were  kept 
.  from  inquiries  he  had  made.     Terry  continued  manager  of 
nd  Middlesex  Bank  as  long  "as  it  lasted. 
1  Judge  asked  what  bad  become  of  the  London  and  Middlesex 

5  said  it  was  being  wound  up. 

kllantine  objected  to  any  evidence  being  given  in  connection 

kdon  and  Middlesex  Bank.     If  it  was  at  all  material,  they 

.tion  to  show  how  the  bank  became  knocked  up.     Alderman 

e  of  the  directors. 

\  Smith  said  he  thought  they  had  quite  enough  to  do  to 

the  affairs  of  the  Unity  without  discussing  those  of  the 
Ididdlesex.  The  word  "  sundries  "  referred  to  dishonoured 
7  could  not  have  been  ascertained  without  examination.     One 

was  cash  £4,414.    It  would  take  a  long  time  to  count  that 
ligns. 
I :  Much  longer  than  it  would  take  to  get  rid  of  it,  I  am 

LUgh.) 

tf  echi  was  then  called  as  a  witness*    He  said :  I  was  governor 


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696 


The  Unity  Bank  Frauds, 


of  the  Unity  Bank  from  1856.  I  remember  the  defendai 
bank.  Mr.  Terry  came  in  as  the  chief  accountant,  and 
cashier,  and  Mr.  Chambers  wjis  manager.  I  knew  nothin 
they  entered  the  bank.  We  took  thum  as  being  the  best 
of  a  hundred  and  fifty  candidates.  When  Mr.  Chambers  r 
I  had  a  conversatioy  with  Mr.  Terry  about  becoming  the 
recommended  him  for  tlie  appointment,  believing  him  to  1 
At  this  time  the  bank  had  sustained  a  variety  of  lo&sea, 
able  to  pay  its  depositors.  It  was  not  in  a  position  to  pay  i 
through  the  losses  that  had  been  sustained  under  the  man 
Chambers.  According  to  the  practice  the  secretary  was  a 
the  board  meetings.  I  had  given  directions  to  both  the 
reference  to  the  preparation  of  the  balance-sheets.  I  re*] 
make  a  true  and  faithful  rep<3rt  of  the  state  of  affairs  of  tl 
the  duty  of  the  manager  and  the  secretary  to  prepare  th< 
from  the  books,  which  the  directors  never  interfered  wit 
were  made  out  they  were  presented  to  the  board,  and  the 
no  alteration  in  them,  or  interfered  with  them  in  any  mar 
ordered  them  to  be  printed.  The  directors  examined  th 
enured  them  to  be  printed.  We  took  no  steps  to  verifj 
relied  entirely  on  the  manager  and  the  secretary  an 
The  whole  of  the  books  were  submitted  to  the  auditors  pric 
sheet  coming  to  the  directors.  As  a  fact,  we  never  test 
sheets  in  any  way  by  the  books.  We  relied  upon  the  audi 
paid  by  the  shareholders,  and  it  was  their  business  to  veri 
The  whole  of  the  books  were  placed  at  their  entire  di 
directors  did  not  interfere  with  them  in  any  way.  Th 
sideredthe  auditors  represented  the  shareholders,  and  tl 
holders  themselves.  One  of  the  auditors,  Mr.  Gould,  w 
merchant,  and  the  other,  Mr.  Hop  wood,  was  an  accountai 
paid,  I  think,  five  and  twenty  guineas  each  for  auditing  th 
we,  of  course,  relied  ujwn  them  to  see  that  the  balance-she 

Mr.  Justice  Smith  observed  that  it  was  rather  remarkal 
circumstances,  that  the  alleged  fraud  was  not  discovered. 

Mr.  Giflard— Our  case  is  that  the  auditors  were  deceive* 

The  learned  Judge  intimated  his  opinion  that  upon  th 
jury  could  hardly  be  expected  to  convict  the  defendam 
charged  with  publishing  a  false  biilance-sheet  with  intent 
it  was  clear  that  the  auditors'  duty  was  to  have  detected  a: 
irregular,  and  that  they  had  every  facility  for  so  doing,  i 
and  papers  were  within  tlieir  control. 

Mr.  Giffard  said  he  felt  the  force  of  his  Lordship's  obsei 
the  part  of  the  Crown,  he  should  readily  attend  to  any  instr 
make  as  to  the  course  he  thought  should  be  taken. 

Mr.  Justice  Smith  said  he  should  not  withdraw  the  case 
but  it  appeared  to  him  that  at  all  events  the  auditors  ougl 
give  some  explanation. 

Mr.  Giflfard  said  that  one  of  these  gentlemen  was  dead 
was  in  this  dilemma,  that  he  must  either  have  been  deceit 
acted  fraudulently. 

The  learned  Judge  said  that  it  was  a  question  for  the  j\ 
they  would  state  whether  they  desired  the  case  to  proceed 

The  Jury  accordingly  conferred  together  for  a  short  tin 
that  they  were  divided  in  opinion. 


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The  Unity  Bank  Frauds.  697  ! 

i  Judge  said  that  if  they  pleased  the  case  should  go  on,  but 
>  liiin  that  unless  the  auditors  were  examined  and  gave  some  * 

they  could  hardly  convict  the  defendants  of  having  conspired 
eceive  the  public.     If  they  had,  they  must  have  intended  to  " 

uditors  as  well.  It  might  have  been  a  very  improper  pro- 
ike  up  such  a  balance-sheet,  but  it  appeared  that  ever  since  • 

been  established  the  balance-sheets  had  been  made  up  in  the  ' 

d  according  to  the  evidence  the  irregularity  might  easily  have 
.     His  Ixjrdship  added  "  that  the  saddle  ought  to  be  put  upon  "' 

\e." 

hen  again  conferred  together  for  a  short  time,  when  they  said 
e  still  divided  in  opinion.  * 

lip  upon  this  said  they  had  better  hear  the  case  out. 
VIechi  was  further  examined  at  considerable  length  with  re- 
arious  accounts.     He  admitted  that  he  had  lost  £18,000  by  ^ 

*  losses  were  £SfiOO  a  year.  j 

amination,  the  Aldennan  said — 

isiness  you  must  rely  upon  your  confidential  servants.  We 
r>me  clerks  ourselves.  I  told  the  shareholders  that  I  had 
le  books,  and  I  considered  that  I  had  by  the  reports  of  the 
fficers ;  but  perhaps  I  ought  to  have  said  that  I  had  looked 
mts.     We  were  informed  every  week  of  all  the  applications  • 

made  for  discount,  the  amount  of  the  discount,  the  amount  of 
»,  and,  as  we  considered,  everything  connected  with  the  busi- 
,nk.     Mr.  Bazin,  my  partner,  had  a  private  account  with  the  , 

lay  have  used  that  account  for  my  own  private  purposes.  It 
,t  a  portion  of  the  money  was  drawn  from  the  west-end  branch 
in's  account  to  be  paid  in  to  the  principal  branch,  to  make  it 
had  a  respectable  balance.  The  same  thing  may  have  been 
Bazin,  so  afi  to  make  both  accounts  look  respectable.  My 
ged  all  this,  and  although  I  did  not  sanction  the  proceeding, 
>f  it. 

dlivntine— Then  the  result  was  that  you  would  both  appear 
ance,  when,  in  point  of  fact,  both  your  accounts  would  be 

VIechi — It  would  make  the  accoimts  look  a  little  better. 

iUantine — Was  it  not  for  the  purpose  of  falsely  representing 

a  bidance,  when,  in  point  of  fact,  you  were  overdrawn  ? 

Mechi— It  had  that  eliect.    It  was  a  very  innocent  transaction. 

lination  Alderman  Mechi  said  that  the  directors  could  not 

,t  all  if  they  had  not  examined  the  particulars  contained  in 

d  it  was  the  only  means  they  had  of  ascertaining  the  position  .* 

They,  of  course,  relied  upon  their  officers  reading  the  items 
ley  were  generally  occupied  from  two  to  four  hours  every  board 
le  directors  would  not  in  any  way  interfere  with  the  auditors, 
tated  them  to  be  correct,  they  would  be  at  once  issued  to  the 
He  made  a  good  many  speeches  to  the  shareholders,  and  at 
nade  them  he  believed  that  everything  he  said  waa  true, 
to  questions  put  by  the  jury.  Alderman  Mechi  said  that  he 
east  idea  that  the  item  of  £207,688  comprised  forged  and  dis- 
la. 

Eyre,  another  of  the  directors,  a  partner  in  the  firm  of  Eyre  \ 

,  solicitors,  of  John  Street,  Bedford  Row,  deposed  that  he  was  i 

rom  the  commencement  of  the  bank.     After  Mr.  Terry  was  : 


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1 


598  The  Unity  Bank  Frauds, 

appointed  manager  of  the  bank  witness  had  some  eon  vers 

relating  to  his  duties,  and  Mr.  Terry  pointed  out  an  irregu 

been  committed  by  Mr.  Chambers  in  placing  a  loan  of  ^1,< 

named  Gregory  in  the  cash  article  book,  when  that  pers 

■  country.     Some  time  after  he  wrote  the  letter  that  had  hi 

.  he  took  his  seat  at  the  board  again.     He  remembered  th< 

'  in  question,  and  he  was  not  aware  that  the  item  of  £207 

overdue  bills,  forgeries,  and  bills  that  were  of  no  value.     O 

'  he  considered  that  it  truly  represented  the  value  of  the  assc 

\  Witness  was  present  from  time  to  time  when  the  cash  ai 

,  read  out  by  Mr.  Burch,  but  he  was  certain  that  it  was  not 

then  stood,  and  that  a  great  deal  must  have  been  omitted, 

i  that  was  occupied  in  reading  it.     The  witness  then  exprei 

opinion  that  none  of  the  names  that  had  been  referred  to  \v 

;       •  or  any  reference  made  to  the  condition  of  their  accoimts 

,  He  said  he  remembered  being  present  on  the  9th  of  March, 

;  defendant  Burch  was  asked  for  some  explanation  of  the  nj 

.'  and  Lowenthal  appearing  in  the  list  of  debtors  to  the  ban] 

*  that  he  should  prefer  that  Mr.  Terry  should  answer  the  qi 

was  sent  for,  and  stated  that  the  debts  had  not  been  named  t 

he  had  been  working  Lowenthal^s  account  with  the  London 

and  was  to  reduce  the  debt  at  the  Unity.     The  witness  we 

that  he  knew  nothing  of  the  composition  deed  in  Bunyarc 

the  defendant  Terry  had  signed  it  on  behalf  of  the  bank.     H 

,  Mr.  Terry  hatl  acted  with  reference  to  other  creditors  i] 

^  without  the  knowleiige  of  the  directors.     The  witness  was  t 

at  considerable  length  upon  other  matters,  the  effect  of  his  t 

.  to  show  that  he  was  ignorant  of  the  transactions  referred  to 

sheet  that  was  the  subject  of  inquiry,  and  he  also  stated  t 

'      '  it  was  published  he  believed  the  balance-sheet  to  be  a  tn 

I  the  affairs  of  the  bank.     Witness  htid  some  loans  from  tl 

I  own  account,  but  the  principal  one  was  a  loan  of  £1,000, 

I  witness's  firm  with  the  bank  was  over  £100,000  a  year,  an 

I  had  a  large  balance.     He  could  have  obtained  the  accomm 

quired  at  other  banks  on  better  terms  than  he  obtained  it 

and  the  bank  had  ample  security  for  all  the  money  that  wa 

By  Serjeant  Parry — Witness  was  aware  that  the  item  of 

tained  the  past  due  and  dishonoured  bills. 

'      ,  Serjeant  Pai'ry — And  with  that  knowledge  you  still  is8U< 

^ .  sheet  to  the  shareholders. 

/  The  witness,  in  answer  to  further  questions  by  Mr,  Serje 

}  he  would  not  deny  that  he  had  told  Mr.  Chambers,  the  fc 

that  he  expected  a  bonus  of  £1,000  as  a  promoter  of  the  Un 
Serjeant  Parry — W^hat  earthly  ground  had  you  for  askir 
I.  shareholders  of  this  bank  for  £1,000  ? 

/  Witness — We  had  paid  down  £1,000  to  start  the  bsual 

♦  I  been  prosperous  we  considered  we  were  entitled  to  it.     I  < 

i  anything  in  the  shape  of  bonus. 

|»    •  Four  of  the  other  directors  having  been  examined, 

'  This  closed  the  case  for  the  prosecution. 

Mr.  Sergeant  Parry  and  Mr.  Sergeant  Ballantine  then 

jury  on  behalf  of  their  respective  clients,  and  contended  ths 

failed  to  substantiate  the  offence  with  which  they  were  chai 

A  number  of  gentlemen  were  then  called  to  speak  to  tl 


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The  Unity  Bank  Frauds, 


6W 


uid  it  was  proved  that  Mr.  Terry  had  been  for  a  graail 
le  bank  of  Jones,  Lloyil  and  Co.,  and  left  with  high  toili- 
tho  Unity.  l>Lr.  Burch,  it  appearetl,  had  also  preTiously 
he  Loudun  and  Westminster  Biuik,  and  Itift  that  establish - 
*    :li  character. 

then  proceeded  to  sum  np  the  case  to  the  jury,  and^ 
ijio     ■  mo  said  that  thoy  must  rem  ember  that  the 

joint  I  with  conspiring,  and  that  they  must  oon- 

uit  Unij,  4.jiu  liiat  fraud  waa  the  very  essence  of  the  offence, 
ion  to  defraud  was   not  Cv^taVdiahe^i,  the  defendants  ought 
ecL     Thoy  must  be  satished  that  the  defendants  conspired 
isb  this  balance-siheot — that  it  waa  a  false  balance-sheet, 
fution  of  the  iiefendiUits  wnfl  to  defraud  ;  and  if  either  of 
not  establishod  t)ia  defendants  were  entitled  to  an  acquit- 
roceeded  to  ^ve  a  short  outline  of  the  circumstttuoca  con- 
formation of  the  bank,  and  he  Bai<l  it  was  clear  that  at  the 
tntere<l  the  service  of  tl»c  bank  a  very  considerable  sum 
en  lost,  and  he  thought  it  wan  a  very  important  fact  that 
ne«l  to  have  always  been  kept  in  the  manner  they  appeared 
hec^.     It  wa»  obvious,  as  it  appes^red  to  1dm,  that  oirerdue 
lat  were  of  no  value  whatever,  ought  not  to  have  appeared 
LS  available  assets ;  and  almnnt  the  only  satif^factory  cir- 
>  case  appeared  to  be  that  tlie  depositors  of  the  bank  had 
lole  of  thdr  money ;    and  it  was  due  to  tho  defendant* 
y  apT>eared  to  have  entero^l  all  the  accounts  a>rrectly.     It 
»t  all  the  directors  liad  borrowed  large  sums  of  mcmcy 
and    that    the    bank    was    obligod    to   re^disoouiit   bills 
t.  higher    interest   than   they    received   fron\    the  <liroo- 
adanta,   as    it   appeiired   Uy   him,   were   also   entitle*!    to 
is  observation— tL at  they  did  not  appear  to  have  obtained 
iMlvautage  by  the  publioatinn  of  tlus  balaiice-Bheetf  and, 
rmk  undoubtedly  no  answer  t-tj  a  criminal  charge  like  the 
was  a  fact  that  was  well  worthy  of  consideration  by  the 
\f  ap[x»ar  also  that  tlie  object  of  this  balfince- sheet  was  to 
nk  was  able  to  pay  a  large  dividend,  or  anything  of  that 
time  it  was  made  the  bank  was  alxait  to  be  amalgrmiated 
n  aiid  Middlesex  Bank,  and  therefore  there  was  no  Buch 
ined  as  he  had  refened  to-     The  learned  judge  then  re- 
t»  fact  that  the  whole  of  the  accounts  appeared  to  have  been 
&  auditors,  who  could  easily  have  detected  the  mis-state- 
ared  in  the  balance-sheet,  and,  he  said,  it  api)eared  to  him 
B  of  these  gentlemen  was  very  important  u\m\\  the  question 
lame,  and  who  was  to  be  held  reapouinible  for  the  publica- 
tnc<?-f»heet,  and  whether  the  defendants  when  they  prepared 
ve.     The  learned  judge  then  referred  to  the 
urn  that  the  manner  in  which  this  balance- 
'\  i\s  a  most  improper  and  vicious  one  ;    but  tliis 
ir  Terrj',  iR^canse  it  seemeil  to  be  admitted  that 
'  "^rom  the  time  of  Mr  Chambeu^j  the  fonner 
>  ere  also  well  aware  of  it,  and  it  would  be 
him  criminally  responsible  for  having  con- 
learned  judge  next  prr^cceded  to  wtate  that 

*,,.i  they  were  not  trying  either  of  the  defen- 

{ act€rd  imprudently,  but  that  the  question  waa  whether  the 


60O 


Legal  Miscellany. 


ev^idonce  satis Sed  them  that  they  had  wilfully  published 
sheet  with  an  intention  to  defraud.  Was  the  act  complain 
Mr.  Terry,  or  was  it  merely  part  of  a  system  ?  And  i 
appeared  to  him,  was  very  material  when  they  considered  th 
the  intent  of  Mr.  Terry  when  he  prepared  this  balauce-shee' 
then  proceeded  to  state  that  it  appeared  to  him  to  be  a  mos 
thing  that  none  of  the  directors  appeared  to  have  made  any  i 
to  so  vital  an  ingredient  in  connection  with  the  bank  as  the  v 
of  the  past-dne  bills,  or  with  reference  to  the  statements 
to  them  weekly  of  the  condition  of  the  efitablishment  and  tl 
debts  due  to  them.  It  was  admitted  that  they  were  aw 
bills,  good,  bad  and  indifferent,  forgeries  and  all,  were  c< 
statement,  and  tliis  being  so,  how  could  it  be  said  that  tl 
acting  criminally  in  making  an  account  which,  after  all, 
of  the  directors  ?  The  directors,  undoubtedly,  ha^i  form^ 
sheet,  and  it  was  their  interest  to  give  as  good  an  account 
they  were  able,  but  the  mouths  of  the  defendants  were  c 
had  no  opportunity  to  give  any  explanation.  Tlie  leamec 
to  say  that  it  appeared  to  him  that  there  was  no  evidence  i 
defendant  Burch  had  anything  to  do  with  the  preparation 
sheet,  and  that  it  waa  clear  that  he  was  a  sulwrdiuate  officer 
and  was  bound  to  obey  his  directions.  The  learned  judg 
said  he  believed  he  had  directed  tlie  attention  of  the 
important  points  of  the  case,  and  he  should  now  leave  tlie 
hands. 

The  jury  retired  at  ten  minutes  past  two  o'clock  to  deli 
minutes  past  three  they  returned  into  court,  and  the  foi 
following  verdict :  — 

"  We  acquit  the  defendants  of  conspiracy,  but  at  the  sa 
express  our  opinion  that  the  accounts  of  the  b<ank  were 
vicious  principle,  and  in  our  opinion  the  directors  ought  to  h 
investigated  the  accounts,  and  particidarly  the  weekly  i 
were  submitted  to  them." 

Mr.  Sleigh  asked  what  was  proposed  to  be  done  with 
twenty-three  counts  of  the  indictment,  which  applied  tc 
Terry  only. 

Mr.  M.  Williams  said  that  after  the  full  inquiry  that  ha< 
should,  in  the  absence  of  his  learned  leader,  take  upon  hiin 
any  evidence  in  support  of  the  other  counts  in  the  iudictm^ 

A  verdict  of  Not  Guilty  was  accordingly  formally  ta] 
counts,  and  the  defendants  were  at  once  discharged. 


f  ^Sal  Ulistelkng. 


m 


THB  LONDON   AND  BA8TEEN   BANKING   CORPORATION. 

WAUOH. 

This  long-litigated  case  was  again  brought  before  Mr. 
Goulburn,  in  the  Court  of  Bankruptcy,  on  the  29th  March 
It  was  the  sitting  for  certificate  in  the  case  of  the  well-ki 
William  Petrie  Waugh,  whose  failure  some  eight  years  a$ 
a  sensation  in  those  comparatively  tranquil  times,  his  liabili 


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601 


I  quarter  of  a  miUirjn.  Since  big  surrender  last  year  tbe 
pealedly  before  the  court ;  and  it  now  came  forward  aa 
f  the  Inst  time.  The  interest  originally  felt  in  tbe  caise 
lly  on  the  wane,  the  more  bo  since  the  announcement  at 
hat  it  was  not  the  intention  either  of  the  aaniguees  or  of 
vfSA  of  the  London  aod  Eastern  Banking  Curporation  to 
ion  to  the  bankrupt  buYing  hia  certifioatt?  (the  bankruptey 
old  act). 
r   appeared  for   the  aasigiieefiy  and  Mr.  Sargood  for  the 

aid  he  had  a^eat  diflScultyin  this  caee.  How  was  he  to 
lan  who  had  absconded  from  the  adjudication  and  stayed 
B  had  fully  conformed  to  the  law  of  bsinkruptcy  1 
said  he  wovild  briefly  call  the  attention  of  the  cinirt  U)  the 
rratiug  the  circumstanc^i*  undar  wbich  tiie  bankruptcy 
Liggested  that,  as  the  court  had  allowed  the  bankrupt  to 
1  given  him  a  ?oci/if  dandi  to  aak  for  hia  certificate.  The 
clined  to  prosecute  him  at  the  expense  of  the  oatate,  the 
item  Bank  being  the  parties  moat  affected  by  his  ilefalca- 
debts  on  thebjUiintte'Sheet  were  £318,000  ;  the  aaseta  given 
nd  the  property  held  a;*  security,  valuetl  at  j£85,tWJO,  hatl 
y  the  secured  creditt»rH ;  for  Brjuaksea  Island,  valued  by 
atone  time  at  a  million  of  moULy,  hrul  produced  less  than 
the  tirst  mortgage  upon  it,  £30/KM}.  His  furniture  at 
1  and  Hyde  Park,  wldch  was  said  to  have  cost  £311,000. 
ariiclea  of  f  iHu,  had  oidy  realised  £8,000.  Wia  personal 
r  four  and  a  half  years  had  been  at  tlie  rate  of  £10,0iX}  a 
otRunmsing  that  the  London  and  Eastern  Bank  luul  not 
"■■'  [^  against  the  bankrupt,  for  the  way  in  which 
t>ed  would  naturally  prevent  them  from  doing  so. 
r- i V  .'KM p  ;♦  gainst  the  baakrAipt  had  been  comproraistttl  for 
the   question   now  was,    how  the   case    should   be   deidt 

aiti  he  was  always  of  opinion  that  the  bankrupt  hail  been 
rith  in  being  imprisoned  for  twelve  months  on  a  demand 
rorth  the  paper  it  was  written  on.  An  imprison mont  of 
wrafi  tho  limit  of  punishment  under  the  Act  of  1861. 
r  said  tluit,  coinciding  in  the  view  of  the  court,  the 
if  offer  any  opposition.  He  waa  informed  by  Mr,  Lewis, 
liquidators  of  the  Eastern  Bank,  that  it  wns  not 

Vr  uny  opposition. 

I  :  Does  any  other  creditor  oppoae  ? 

:  Then  let  him  take  hia  certificate.     So  ended  the 

lonel  Waugh. 

there  waa  £5«000  in  hand  api^licable  to  dividend  on 

^iJOO. 


ntTLBfT  ngrmeaEJHTATioy.— TH¥  bihmehoham  ajo*  south 

ORDSHIBl  BAKKIKO  OOMPAISTY. — CRAY    V.    COLIHIS* 

ried  before  the  Lc^rd  Chief  Baron  and  a  special  jury,  at  the 
ts,  on  the  3rd  April. 


602 


Legal  Mmellany. 


It  waa  an  action  against  a  director  of  a  joint- stock  banki 
false  representations,  by  which  the  plaintiff  complained  tli 
induced  to  purcliase  shares  in  a  losing  concern.  The  dec 
that  "  the  defendant  was  a  director  of  the  Birmingham  and  I 
shire  Banking  Company,  and  falsely  and  fraudulently  rep 
plaintiff  that  the  company  was  in  a  flourishing  and  prospe 
that  the  shares  Were  a  good  and  profitable  investment,  wl 
and  in  fact  the  compiiny  was  not  in  a  flourishing  and  prosp 
the  shares  were  not  a  good  or  profitable  investment,  bu 
shares  as  were  for  sale  belonged  to  the  defendant,  by  mea 
*  presentations  the  plain tifl*  was  induced  to  and  did  purchase 
in  the  company,  and  so  became  liable  to  pay  large  sums  of  i 
and  lost  the  same,"  <tc.     The  defendant  pleaded  "  Not  Guil 

Mr.  Lush,  Q.C.,  Mr.  C.  Pollock,  the  Hon.  A.  Thesiger,  an 
were  for  the  plaintifl";  Mr.  Bovill,  Q.C.,  Mr.  Hawkins,  Q.C. 
were  for  the  defendant. 

The  material  facts  of  the  case,  as  they  .appeared  in  ev; 
follows: — The  company  was  formed  in  1862,  and  amont 
were  Sir  Edwin  Pearson,  Mr.  John  Bethell,  <fec.  The  defen 
of  the  London  Bank  of  Scotland,  was  not  engaged  in  the  gel 
company,  but  had  been  associated  with  the  plaintifl"  in  some 
Tlie  cai>ital  of  the  company  now  in  question  was  £1,000, 
shares  of  £100,  of  which  the  first  issue  was  5,(X)0.  Of  t 
1802,  about  780  shares  remained  lintaken,  and  on  the  5th  o 
sequence  of  some  arrangement  entered  into  between  the  def 
directors,  he  became  a  (Urector.  On  the  5th  of  April  a  me 
tors  was  held,  at  which  a  proposition  was  made  on  the  part 
dant  that  the  782  shares  should  be  allotted  to  him,  and  \ 
become  a  director,  and  that  2,0<X)  out  of  the  5,000  shares 
issue  should  also  be  allotted  to  him  ;  and  this  proposal  wa 
resolutions  were  passed  that  he  be  elected  a  director,  and  tL 
ing  shares  of  the  first  issue  of  5,000  shares— that  is,  the 
forthwith  allotted  to  Mr.  Collins,  the  defendant,  or  liis  noi 
subject  to  a  commission  of  2  per  cent.,  and  that  the  second 
shares  be  matle,  and  oft'ered  rateably  to  the  shareholders  a1 
time  £22  a  share  on  the  shares  allotted  had  been  pai 
£80,000  of  the  capital  was  thus  paid  up.  But,  in  point  of  : 
<»n  the  5th  of  April  were  at  a  discount  of  2  per  cent. 
5th  and  12th  of  April  the  defendant  bought  about  750 
the  first  fifty  at  par,  the  rest  at  premiums  of  from  £: 
the  14th  of  April  the  defendant,  who  had  become  ac 
the  plaintiff"  in  connection  with  some  other  compa 
conversed  with  him  on  the  subject  of  joint-stock  companie 
letter  in  these  terms  : — "  I  had  thought  of  directing  ^ 
to  the  London  Bank  of  Scotland  shares,  knowing  that  they 
improve,  but  I  neglected  doing  so,  and  they  have  gone  beyo 
advanced  £12  a  share  within  the  month.  I  promised  to  It 
any  expected  investments,  but  they  have  gone  too  fast  for  i 
are  two  matters  on  wliich  I  believe  money  will  be  made. 
Lcmdon  and  Birmingham  and  South  Staflbrdshire  Banking ' 
if  you  buy  in  it  you  must  take  up,  and  it  will  pay  you  to  hoi 
It  does  not,  however,  promise  quite  as  well  as  the  London 
land  The  other  I  si  tall  be  able  to  mention  in  a  few  day 
friends  to  be  in  the  '  good  things '  with  myself,  and  I  will  | 


'^''^to^.*. 


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MS 


lof  my  friends  h&re  cleared  £lbf)0O  in  the  London  Bilik 

he  l^t  account.**  Upon  this  the  pLaintilf  made  application 

and  ftctxTTflingly  obtained  them  at  a  preminm — lOO  at  A 

and  5U  at  6§.     It  ap|>eaT(?d  that  the  defendant,  who  wiis  » 

London  Bank  o(  Sw>tiatidj  became  a  director  of  the  Bir- 

onth  Staffordfthire  Bauk,  with  a  view  to  their  amalgaraa- 

1  Peni'sou  Raid  it  was  with  thai  view  he  aflaonted  to  the 

to  t>ie  shares,  luid  that  the  ?jhare8  about  the  11th  of  April 

market,  and  he  had  bought  Bomo  at  £4  premium,  of  course 

at  that  time  a  favourable  opiniou  of  the  c?otnpany,  and 

ley  were  likely  to  rise  higher  in  the  murket.     It  wtm  abo 

ir  Edwin  that    "daring  the  whole  of   April,  1864,  the 

flourisJiing  and  prosptrous  conditii^n,  and    that   on  the 

punh  •«•*  "f  shares  would  have  been,  in  his  judgment,  a 

hlo  ij  1^*     (A  quugtion  which  was  objected  to,  nnd 

aril  ut    -.     i  ijudant.)     Ami  8ir  Edwin  Pearson  declareil 

a  opinion  on  the  14th  of  April.     He  further  stated  that  at 

highly  probalde  that  the  shares  would  oontiniie  to  rise, 

re  it  woidd  have  been  prudent  and  protitablc  to  hold  them 

;  was  further  elicited  on  re  examination  that  the  Rharet 

utcame  in, and  Sir  Edwin  beins^  asked  if  he  bought  to 

that  he  meant  to  reserve  the  right  to  part  with  them 

id  not  cfire  t*:»  hold,"     The  oidy  wiint.  Sir  Edwin  Pearaou 

it  of  eni»itar"    There  were  proposahi  by  the  banking* com^ 

jr  ain  >  ►ii,  and  the  directors  were  anxious  for  amal- 

7^2  tted  to  the  iJefendaut  were,  in  fact,  allotted 

u'tre  iili  allote<l  in  April,  Jiud  they  were  all  paid  in 

'  }$ hares  of  the  next  in^ue,  and  then  tht*  defendant  wa4i 

8!inre  oirmmiHsion,  which  came  to  above  ^5,5(X)  Viium  the 

*ed,  however,  that  on  the  2^0CH)  shares  of  the  second  isHue 

raid  by  the  defendant  on  the  lOth  of  May,  antl  he  still  held  a 

them.    He  had  pjiitl  all  that  had  been  called  np  on  those 

L  thus  paid  £i}jMH}  upon  them.     Tlio  secretary  stated  that 

[  April  he  had  given  the  defendant  private  intimation  that 

[>ect  of  amalgamation,  and  he,  in  the  full  belief  that  this 

[>rice  of  the  shares,  ofleretl  to  purchase  those  of  the  witness 

£7  per  ^hare.     The   highe^it  price  which  the  ahareft  had 

i   the   18th  <ff  April,  after   which  they   decliiied  to  dis- 

»  the  5th  and  the  25th  of  April  the  defendant  sold  nearly 

follows  :— On  the  5th  of  Aprd   (the  day  he  entered  the 

i&,  at  1^,  if,  (iiB  ^22  were  piiid  up),  at  a  cHsconnt  of  £2 

Ibe  llth,  DO,  a*  a  premium  of  ^  per  share;  100  at  2| 

i^\:  :¥),  ni  2 ;  and ©0,  at  2^  j  and  100  (for  the  14th  April), 

nt  April),  at  2e,  and  60,  at  2},     On   the  12th  of 

I  3J,  and  60,  at  2i.     On  the  18th,  200,  at  6?,  6, 6], 

40»  at  51,  and  liKj,  at  5^.     On  that  day,  the  26th, 

ifte  to  him  in  these  terms  :^ — "1  have  sold  on 

'_  s  in  the  Birmingham  and  South  Staff* ^rtlsl lire  Biuik  ing 

^orry  that  I  cannot  do  anythiug  more.'*     Thus,  from 

Lkut  entered  the  bank,  to  the 

lies  of  the  first  isBUe  allottofl 

rs.  oud  '  1   Ti(e  others.     Some  of  f        >     ■    ,5 

nrhint  Wf^  those  purchoH^jd  by  the  |  r 

I  iKii  oont.     Ou  I  u*^  I Liini  hand,  between  the  lOtii  *-*.  .  i.ii43 


604  Legal  Miscellany, 

20th  of  April  the  defendant  had  purchased  about  700  shares 

•  ^  — that  is,  of  the  old  shares  of  the  first  issue.     The  second  i 

j  *  until  the  19th  of  April.     On  the  14th,  it   will  be  observed,  i 

had  written  to  the  plaintiff,  as  above  stated.     Almost   imm 

.  the  plaintiff's  purchase  of  the  shai*es  he  found  that  they  beg 

i  and  they  fell  gradually  to  discount.     Towards  the  end  of  A] 

to  the  defendant  about  it,  who  said  he  could  not  make  it  out 

him  to  "  hold  on."     Tliey  continued  to  go  down,  and  in  Ju 

took  place  of  the  directors,  at  which  the  defendant  was  prese 

■  that  *'  some  important  amalgamations  were  in  contemplation 

I  should  suggest  that  the  shares  be  not  parted  with,  but  that 

j  should  be  purcluised  by  the  present  holders,  in  proportion  tc 

I  they  held.     The  plaintiff  was  not  then  aware,  he  said,  that  \ 

had    sold    shares,    and    said     that   he    put    himself    dowi 

about  4:00  shares.     It  fell  to  the  plaintiff  upon  this  plan  to 

!  more  shares,  which  he  accordingly  did,  at  a  premium  of 

,  This  scheme,  however,  did  not  succeed,  and  the  shares   con 

1  lower  and  lower  until  they  reached  8  or  10  per  cent,  discount. 

could  scarcely  then  be   sold  at  all,  and  in  the  course  of  h 

amalgamation  took  place  with  the  European  Banking   Co 

plaintiff  lost,  as   he  alleged,  £1,500,  and  brought  his  acti 

compensation  for  this  loss. 

Mr.  Lush,  in  stating  the  case  for  the  plaintiff,  relied  chi 
arrangement  entered  into  by  the  defendant  on  the  6th  of  A 
directors.  At  that  time,  he  observed,  the  shares  were  at  a 
per  cent.,  and  the  effect  of  the  arrangement  was  that  the  782 
had  not  been  disposed  of,  and  were  then  a  drug  on  the 
allotted  to  him  at  par,  with  a  disa)unt  or  commission  of  2  pe 
was  of  course  his  interest  to  get  them  up  to  a  premium,  and 
of  them  to  others ;  and  accordingly,  by  a  process  which  ot 
terious,  but  wa^^  so  no  longer,  the  shares  suddenly  rose  fror 
par,  from  par  to  premium,  and  from  a  premium  of  1  or  2 
<  and  above  6  per  cent. ;  and  when  the  plaintiff  was  induced  b 

'  ant's  letter  of  the  14th  of  April  to  purchase  shares,  he  g 

premium  of  above  6  per  cent.  No  sooner,  however,  had  tht 
by  the  plaintiff  been  disposed  of  than  they  began  to  fall,  i 
discount  in  the  course  of  the  month,  although  the  defenc 
tinclly  represented  that  they  might  safely  be  held  for  a  mon 
sequence,  of  course,  was  that  the  plaintiff  lost  liis  money,  but 
'  had  largely  gained.    He,  of  course,  had  parted  with  his  shares 

and  had  cleared  a  large  sum.  That  being  so,  it  was  right  i 
morality  that  he  should,  out  of  the  large  profits  he  had  mad 
plaintiff  the  large  loss  he  had  sustained  in  consequence  of 
presentations. 

Sir  Edwin  Pearson  was  called  and  examined,  and  stated  tl 
arrangement  entered  into  on  the  5th  of  April  with  the  defei 
that  the  shares  were  then  at  a  discount  of  2  per  cent.,  and 
the  word  in  the  resolution  was  "  commission,"  it  re.iUy  mean 
and  was  in  substance  the  same.  It  was  elicited  both  froi 
[■  Pearson,  and  also  from  Mr.  Tucker,  the  secretary  of  the  c 

previous  to  the  5th  of  April,  ideas  were  entertain^  by  the  d 
,.  amalgamation  with  the   London  Bank  of  Scotland,  whose 

then  at  9  per  cent,  premium,  and  Mr.  Tucker  said  he  h 
defendant,  prior  to  the  6th  of  April,  some  intimation  of  t 


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daut  offered  to  purchase  his  shares  at  7^  per  cent,  premium, 
lat  the  plaintiff,  after  receiving  the  letter  of  the  defendant, 
er,  the  secretary,  on  the  subject. 

raised  an  objection  at  the  outset,  founded  upon  "  Lord  Ten- 
'  by  which  it  is  enacted  "  that  no  action  shall  be  brought 
arge  any  person  upon  any  representation  made  concerning 
or  credit  of  any  other  person,  to  the  intent  that  such  other 
•tain  credit,  money,  or  goods,  unless  such  representation  be 
ig  signed  by  the  party  to  be  charged  therewith,"  upon  which, 
s  been  held  that  a  representation  partly  written  and  partly 
ient,  if  the  written  part  form  a  material  part  of  the  repre- 
le  learned  counsel  contended  that  under  this  act  the  repre- 
d  upon  must  be  in  writing,  and  that  the  letter  of  the  14tli  of 
y  writing  opened  by  the  plaintiff's  counsel — did  not  sui)j}ort 
tions  alleged  in  the  declaration. 

nsisted  that  in  fact  it  did  so;  as  in  substance  it  came 
he  shares  were  a  safe  investment,  and  that  it  woidd  bo 
em  for  a  mouth.     But  he  doubted  if  the  statute  applied  to 

hief  Baron  said  its  object  was  to  do  away  with  actions 
jral  representations  as  to  the  credit  of  other  parties  upon 
tiich  goods  or  moneys  were  obtained.  However,  he  would 
ks  it  should  turn  out  to  be  upon  the  evidence,  and  amend 
L  as  might  be  required,  and  reserve  the  point  of  law. 
at  the  close  of  the  evidence  on  behalf  of  the  plaintiff, 
there  wa^  no  case. 

lief  Baron,. however,  said  he  should  not  stop  the  case,  and 
he  jury. 

submitted  that  as  in  point  of  fact  there  was  no  repre- 
n  the  letter,  the  declaration  must  correspond  with  it,  but  it 

lief  Baron  thereupon  amended  the  declaration  in  accordance 
I  of  the  letter. 

hen  addressed  the  jury  on  behalf  of  the  defendant,  urging 
the  case  as  it  now  stood,  upon  the  evidence  of  the  plaintiff's 
the  representations  alleged  to  have  been  false  and  f raudu- 
ally  been  confirmed;  for  Sir  Edwin  Pearson  distinctly 
the  time  in  question  he  c<msider?d  that  the  company  wtia 
I  condition,  aud  that  the  shares  were  a  good  investment ; 
ant  had  such  confidence  in  the  prospects  of  the  company, 
robability  of  amalgamation,  that  he  oflered  to  give  jil  \  per 
.  for  some  of  the  shares,  and  he  had  continued  to  hold  many 

The  case  for  the  plaintiff  was  founded  vi\yon  a  complete 
)tion  that  the  defendant  had  thrown  his  780  shares  on  the 
en  got  the  plaintiff  to  purchase.     But  in  point  of  fact  the 

sold  nearly  all  his  780  shares  before  his  letter  to  the 
5  had  sold  750  before  the  12th  of  April,  and  the  letter  was 
3x1  the  other  hand,  the  defendant  had  purchased  more  shares 
to  the  plaintiff,  and  the  shares  had  risen  after  that  letter 
of  the  amalgamation  which  was  anticipated.  Tlie  defend- 
t  to  speculate  in  shares  if  he  pleased,  and  he  had  simply 
aintiff  his  advice,  in  which  there  was  nothing  which  was 
beea  false. 

48 


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G()6  Legal  Miacdlany, 

The  defendant,  with  other  witnesses,  was  called  to  8upp< 
thus  narrated,  and  he  stated  that  he  had  purchased  some  huj 
at  premiums  after  the  letter,  and  that  he  still  held  nearly 
the  company,  aud  he  positively  swore  that  at  the  time  he  i« 
he  really  believed  that  the  company  was  in  a  prosperous 
with  reference  to  its  prospects  of  amalgamation,  its  shares  i 
and  profitable  "  investments  for  purchase. 

In  cross  examination  he  was  pressed  as  to  the  nimiber  of 
employed  in  his  sales  and  purchases  of  the  shares,  and  he  a< 
had  employed  four,  and  would  not  swear  that  it  might  not 

Other  witnesses  confirmed  the  defendimt's  evidence. 

Mr.  Lush,  iu  reply,  pressed  these  sales  ajid  purchases  by 
as  the  very  means  by  which  the  market  was  inliuenced. 

The  Lord  Ciiief  Baron,  in  summing  up  the  case  to  the  \ 
with  reference  to  the  time  which  the  trial  of  the  case  ha 
charge  of  fraud  required  very  carefiU  consideration,  and,  8< 
aware,  this  was  the  first  time  that  an  action  quite  of  thif 
brought.  Lord  Tenterden's  Act,  he  observed,  hivd  put  an 
for  false  representations  by  word  of  mouth  in  ordinary 
been  found,  he  said,  by  experience,  that  the  plaintiffs  in  su 
succeeded,  which  could  scarcely  be  supposed  to  have  been  al 
with  justice.  Hence  the  act  known  by  his  name,  which  hn 
end  to  such  actions.  Under  that  act  he  had,  of  course,  exp< 
should  be  some  representation  produced  in  writing,  and  accon 
-wsiS  relied  u[X)n.  But  he  had  been  applied  to  to  allow  an 
the  declaration,  to  bring  it  into  accordance  with  the  tern 
That  letter  cleaily  imported  a  purchase  for  the  pur|x>se  o 
that  is,  while  the  shares  were  on  the  rise,  with  a  view  to 
rise ;  and  the  question  would,  in  his  opinion,  be  whether 
written  bond  fide.  Now  he  found  great  diflicidty  in  po 
piece  of  evidence  distinctly  tending  to  show  that  it  Wftf  noi 
iiance  had  been  placed  upon  the  number  of  brokers  employ 
not  tliink  there  was  much  in  that.     Need  he  go  further  ? 

One  of  the  jury  observed  that  it  was  very  unusual  foi 
fairly  with  shares  to  employ  four  or  five  brokers. 

Tiiereupon  the  jury  conferred  together,  and  the  foreman 
some  (.Ufierence  of  opinion  among  them. 

The  Lord  Chief  Baron  thereupon  said  that  he  really  tho 
not  sufficient  evidence  to  convict  the  defendant  upon  a  c 
It  ouglit  not  to  be  left  to  mere  sasjucion,.  suggestion,  or 
jury,  however,  would  form  their  own  judgment  on  the  case, 
form  it,  no  doubt,  in  the  residt,  according  to  truth  and  jus^ 

The  jury  retired  to  consider  their  verdict,  and  in  the  re 
verdict  for  the  defendant,  adding  that  they  disapproved 
the  defendant  in  dealing  with  the  shares  as  he  did,  he  b( 


VARYING  THE   OBJECTS   FOR  WHICH   A  COMPANY  WAS  BSTAl 
THE    SCOTTISH   AND   UNIVERSAL   FINANCE   BANS.,   LU 

This  case  was  heard  before  the  Lords  Justices  of  Appeal,  i 
the  19th  AprQ. 

It  was  an  appeal  motion  from  an  order  of  Vioe-Chancel 
the  16th  of  February  last  a  motion  was  made  before  his  h< 


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mi 


Dg  that  his  name  might  be  struck  out  from  the 
\\Q  above-named  company.  The  objects  of  the 
mauce  Bauk,  Limited,  as  stated  in  the  prospectus 
L  May,  18G3,  by  Mr.  Eve,  one  of  the  directors,  were 
,  and  the  purchase,  importation,  and  exportation  of 
forms.  On  the  28th  May,  18G4,  Mr.  Ship  signed  * 
Lre8  in  the  form  annexed  to  the  prospectus,  and 
3  name  being  inserted  in  the  register  for  50  shares, 
orated  on  the  1st  of  June,  18G4,  under  articles  of 
ects  differing  and  materially  extending  the  objects 
;tus,  on  the  faith  of  which  Mr.  Sliip  hjvd  taken  his 
>jects  of  the  company,  jus  stated  in  these  articles, 
ssions  for  the  construction  of  railways  and  other 
or  working  such  undertakings,  and  (clause  10) 
any  business  of  bankers,  bullion  and  exchange 
hant,  contractor,  and  capitalist,  as  principjd  or 
he  world  which  ma}'^  not,  in  the  article.^  of  asso- 
)lution  of  the  company  be  prohibite<l."  The  com- 
n  the  1st  of  June,  "  with  capital  £1,000,000,  with 
)00,000,"  fell  into  difficulties  in  hist  December, 
inding-up.  Mr.  Ship,  who  stated  that  the  ai-ticlos 
ly  was  incorporated  had  never  been  sent  to  him, 
3  name  removed  from  the  register,  on  the  groimd 
)rated  was  entirely  different  from  that  in  which 
•es.  The  application  was  ojjposed  by  the  official 
uding-up,  who  submitted  that  Ship  was,  at  all 
iters  of  the  company,  having  applied  for  shares 
lie  register  for  six  months  without  inquiry,  thus 
e  world  as  a  shareholder,  and  inducing  persons  to 
J  the  faith  of  his  name.  The  objects  of  the  com- 
d  not  differ  from  those  stated  in  the  prospectus, 
n,  and,  at  any  rate,  there  was  sufficient  to  have 
ry.  After  hearing  comisel  for  Mr.  Ship  and  for 
is  honour,  without  calling  for  a  reply,  held  that 
I  removed  from  the  register.  Being  invited  by  the 
artner  in  a  company  about  to  be  incoriK>rate<l  for 
m  banking  business,  he  set  up  an  authority  for 
>  himself.  His  name  was  registered  as  a  member 
«e8  as  totally  different  from  those  stated  in  the 
f  which  he  took  his  shares,  as  if,  having  intended 
ly  company,  he  had  found  himself  a  member  in  a 

It  was  quite  true  that  banking  operations  were 
at  the  terms  of  clause  10  of  the  articles  of  asso- 
of  anything  of  the  kind  in  the  prospectus,  it  was 
»tand  how  any  persons  having  characters  to  h»se 
Qselves  authorised  in  taking  such  a  course  as  the 
jjy  had  taken.     With  respect  to  the  company, 

retain  Mr.  Ship's  name  ui)on  the  register  wjis 
aid,  however,  that  as  regarded  the  crcdit<^>r8  who 
3  official  liquidator  the  case  was  different,  and 
ron  an  authority  for  the  allotment  of  sliares  in 
llowed  his  name  to  remain  on  the  register,  lie, 

the  company,  ought  to  bear  the  consequences. 
be  taken  to  be  cognizant  of  the  circumstances. 


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608  Legal  MiHallafty, 

Mr.  Ship  had  not  signed  his  name  aA  a  subscriber  to 
whatever  that  the  directors  might  choose  to  establish,  I 
to  a  bank  with  a  given  field  of  operation.  The  credito 
that  this  breach  of  confi<ience  had  been  committed,  c 
authority  given  by  Ship  had  been  totally  exceetled,  wei 
wrong  with  the  proprietors,  and  could  not  insist  upon  r 
upon  the  register.  The  name  must  therefore  be  struck 
paid  by  the  company. 

The  official  liquidator  appealed  from  this  order,  and 
menti<med  on  the  17th  April,  Mr.  W.  W.  Mackeson  o\ 
tlieir  lordships  to  intervene  on  the  part  of  the  directo 
rei)resented  in  the  case,  the  only  parties  before  the 
official  liquidator  and  Mr.  Ship. 

]VIr.  G.  M.  Cxiftard  and  Mr.  W.  Morris  were  heard  for 
dator  for  the  api>eal. 

Mr.  Daniel  and  Mr.  W.  W.  Mackeson,  for  Mr.  I) 
directors,  also  supported  the  appeal,  contending  that  tl 
not  go  beyond  the  objects  intended,  for  that  the  credit 
intention  of  the  parties. 

Mr.  Rolt  and  Mr.  Locock  Webb,  for  Mr.  Ship,  were  n 

Their  lordsliips  held  that  the  decision  of  the  Vic 
correct,  and  dismissed  the  appeal  with  costs. 


THE   BIEMrN0HA3I   BANK   FAILURE. — IN  RE  ATTWOODS,  SP( 

AND  CO. 

This  case  came  before  Mr.  Registrar  Hill,  in  the  Bi 
ruptcy  Court,  on  the  10th  April. 

It  was  a  meeting  to  confirm  a  resolution  passed  at  a  me 
March,  to  take  the  estate  out  of  the  Bankruptcy  Couri 
wound  up  by  assignees  chosen  by  the  creditors. 

Mr.  W.  S.Allen,  who,  with  Messrs.  Whateley,  appearec 
stated  the  purpose  of  the  meeting,  and  explained  the  step 
taken  to  inform  all  the  creditors  of  the  intention  to  carrj 
ing.  Notices  had  been  given  in  all  cases  where  practicable 
bank  of  issue,  the  noteliolder  could  not  be  specially  serve 
as  far  as  possible,  that  omission,  advertisements  had  be< 
London  Gazette  and  Daily  News,  and  a  great  many  other 
ting  forth  precisely  what  it  was  proposed  to  do  at  this  n 
put  in  a  mass  of  proofs  concurrent  to  this  step  to  tlie  am< 
and  there  were,  he  said,  proofs  by  more  than  three-fourth 
Tlie  resolution  he  proposed  was  to  the  effect  that  all  pro< 
ruptcy  be  suspended  ;  the  estate  to  be  wound  up  by  the 
by  the  creditors  at  their  discretion,  with  full  powers  to 
all  nee<.lful  arrangements. 

Mr.  John  Suckling  (who  represented  creditors  to  an 
£150,000  and  £200,000)  concurred  generally  with  the  j 
Mr.  Allen,  but  suggested  that  there  slundd  be  au  addendi 
tion,  to  the  effect  that  the  offei  of  the  Birmingham  Join 
pay  the  creditors  lis.  3<l.  in  the  j)ound  was  to  be  free 
charges  which  might  arise,  or  be  incident  to  the  winding 
He  wished,  he  said,  to  guard  against  any  mistake  hei 
the  offer  of   the  Birmingham  Joint  Stock  Bank  shoulc 


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Van  Joini^Stock  Bank. 
been  accepted  by  the  creditoFs — a  clear  11b.  dd.  In  the 

ectad  to  the  addeDclam  proposied.  They  \\m\  been  ad- 
>n  the  best  legal  authority,  that  it  was  iiiiilesiral>lo  to 
on  with  any  such  speciality  a*  3Ir.  Suckling  ha*i  sug^ 
would  be  unduly  tying  up  the  hanii»  of  the  a.s8ig:iiee«, 
Chilton,  Biirt<pn,  Yeates,  mid  Hiu-t)  took  a  siiuilar  view, 
Lftwrance  (Lnwrance,  Plews»  and  Buyer)  who  appealed 
1.  The  adtlition  BUggested  by  Mr.  Suckling  might,  he 
nvenieut,  as  in  the  caso  for  instance  of  a  better  offer  being 
at  of  the  Joint  Stock  Bank,  He  hoped  that  the  reHolu- 
•  Mr.  Allen  wouhi  be  twloptod  in  its  integrity,  it  being 
I  in  its  terms  for  auyt!iing. 

resolution  waa  carried  in  the  terms  moved  by  Mr.  Allen, 

Iv  vvjvj^  fixed  for  the  "  order  tif  discharge  ^^  meeting,  and 

]    to  hand  over  his  proofs  to  the  Bolicitora  to   tho 

ling  to  have  access  tu  the  books  idter  the  accounts  are 

!T8  of  the  Joint  Stock  Bank  have  yet  to  moet  to  aancliou 
y  their  board. 


tUportB  of  Jouit-Storh  iianh^. 


.USTRALIAN  JOINT  STOCK  BANK. 

general  met^tin^  of  thb  bank  was  held  at  the  bank,  in 
list  Jan n a  17 —T,  0,  Breillat,  Esq*,  in  the  cliair. 
rei^ort  was  read : — 

I  miiuagement  have  much  pleasure  in  suhnntting  to  the 
accounts  for   the  half-year  ending  151  »t  December  last, 

II  be  seen  that  the  gross  profit  of  the  bank  has  amounted 
'd.,  and  that,  after  payment  of  interest,  rebate,  commia- 
age,  aod  all  salarieH,  rents,  and  working  expenses,  there 
jpriation  the  sum  of  £38.513.  Os.  "M,     The  acoonut  is  as 


Ki  profits  !fl  '*•'*' 'It-         

inst  §i%.  m«  1  u  tlucting  rdmie  on  current 

Ipr3i»es  of  1  ^  nt,  and  alter  writing  off 
oixni  oF  Imnk  pnMni^ea  in  Sydney,  and  10  per 
premises  at  the  hnuicbvs  on  nocount  of  furni- 
igs,  and  after  providing  for  all  bod  and  doabtfol 

oit«d  shares  sold 


£1,711    10    tj 


283 


TogUhttr -.        .-    X3i.5l3     0     3 

^eommend  to  b<s  iipproprialoil  iu  the  foiiewing 


610 


Australian  Joint- Stock  Bank, 


To  reserve  fund  

To  dividend  at  the  rate  of  10  per  cent.,  and  bonus  of  2j  per  cen 
equal  to  \2h  per  cent,  per  annum,  on  the  paid-up  capital 
the  bank,  and  in  pursuance  of  the  provisions  of  tlie  deed 
settlement,  they  declare  the  dividend  and  bonus  accon 
ingly  

Leaving  balance  of  undivided  profits,  carried  forward 

The  reserve  fund  at  tlio  commencement  of  the  last  half  yc 

was  

To  which  there  is  now  added        

Making  the  reserve  fund  at  this  date       .     ... 


"  These  are  favourable  results  of  the  past  half-year, 
businass  of  the  bank  in  safe  and  profitable  transactioi 
time  when  a  further  call  for  capital  will  be  required, 
again  reminded  of  the  great  value  of  their  co-operation 
enlarging  the  circle  of  the  bank's  customers.  Seven  new  br 
added  to  tlie  establishment,  four  in  New  South  Wales  and 
land.  In  pursuance  of  the  amended  deed  of  settlement,  i 
out  by  rotation  at  this  meeting,  viz.  : — T.  C.  Breillat,  Es< 
Esq.,  M.L.A.,  and  John  Faii*fax,  Esq.,  the  two  form< 
eligible  for  re-election,  Mr.  Fairfax  having  left  the  col 
Europe.  It  therefore  devolvCvS  on  the  meeting  to  elect  tl 
of  the  candidates  who  have  given  the  requisite  notice  as 
daily  papers.  Two  auditors  are  now  to  be  elected  in  th 
Stabler  and  George  Ferguson,  Esqrs.,  who  both  retire,  1 
is  eligible  for  re-election.  The  extension  of  the  bank 
approaching  completion,  and  the  next  InUf-yearly  meetii 
the  new  Ixxird  room.'* 


Balance-sheet,  31  st  Decern ber,  1864. 


Dr. 


Capital  paid  up       

Notes  in  circulation 
Deposits  and  other  liabilities 

Profit  and  loss        

Keserve  fund 


Cr, 

Coin      

Bullion 

(lovernment  seruritics    .: 

Notes  of  other  banks      

Bank  premises       

liills  discounted,  and  other  debts  due  to  the  bank 


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Angl(hEijyptian  Bank. 


611 


Profit' AWD  Loss. 

ses,  head  office,  and  24  branches,  including 
s,  and  10  per  cent,  written  oft'  bank  furniture 

Ing  rebate,  exchange,  and  commission  paid... 

in  reduction  of  account •• 

onus  for  half-year,  at  the  rate  of  12  J  per  cent. 


17,439  12  0 

25,174  13  10 

2,000     0  0 

31,250     0  0 

5,0no     0  0 

2,263     0  3 


£83,127 

6 

1                   :' 

r  half-year            

arcs  carried  to  reserve  fund      

0th  June,  1864 

81,133 

282 
1,711 

15 

0 

10 

7                     i 
0 

6               ; 

£83,127 

6 

1 

Reserve  Fund. 

...       £55,000 
£55,000 

0 
0 

0 

it  forward...        ..«        ...         ...         ... 

)rofit  and  loss       

60,000 
5,000 

0 

0 

1 

s 

£55,000 

0 

0 

was  received  and  adopted,  and  ordered  to  be  printed  and  cir- 
^  the  proprietors. 

vingbeen  demanded  for  the  election  of  three  directors  in  the 
Breillat,  J.  B.  Darvall,  M.L.A.,  and  John  Fairfax,  Esqrs.; 
aei,  L.  W.  Hurford,  and  Henry  Ferris,  Esqrs.,  were  appointed 
rho  reported  that  Mr.  Darvall,  Mr.  Lord,  and  Mr.  Stabler 
the  highest  number  of  votes;  whereupon  J.  B.  Darvall, 
Edward  Lord,  Esq.,  and  George  Stabler,  Esq.,  were  declared 

rguson  and  Richard  Binnie,  Esqrs.,  were  elected  auditors  for 

rear. 

\  of  the  meeting  were  awarded  to  the  directors  and  general 

their  zealous  and  successful  services  during  the  past  half 


ANGLO-EGTPTIAN  BANK,  LIMITED. 

linary  general  meeting  of  the  shareholders  of  this  company 
;he  29th  March,  at  the  London  Tavern ;  Samuel  Laing,  Esq., 

convening  the  meeting  wa«  taken  as  road,  and  also  the  fol- 
b  of  the  <Urector8  ; — 


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612  Anylo-Eyyptian  Bank, 

"  The  b<ank  began  operations  on  the  1st  September,  anc 
year  in  Egypt  closes  on  the  JSOth  June,  the  accounts  receiv 
February  are  necessarily  provisional.  In  future  it  will 
hold  the  annual  general  meetings  of  the  company  in  Octol 
so  as  to  have  time  to  have  the  full  aca)unts  of  the  fiuanc: 
from  Egypt  and  fully  examined  before  the  declaration  of 
dond;  and  although  it  has  been  necessary  to  call  the  pn 
the  month  of  March  on  account  of  the  statutes,  the  direc 
the  first  regidar  annual  meeting  shall  be  held  accordingly 
of  the  present  year,  for  which  purpose  they  will  call  a  sj 
idter  the  statutes.  In  the  meantime,  however,  they  are 
that  the  results  of  the  working  of  the  bank  for  the  first  i 
been  most  satisfactory.  Although  the  critical  state  of  bi 
the  money  pressure  in  England,  and  the  state  of  the  c 
Egypt,  prescribed  great  caution,  so  that  little  was  done  f( 
months  Jiftcr  tlie  bank  was  established,  a  large  and  pi 
business  has  already  been  transacted,  and  extensive  operj 
successfully  entered  into.  The  provisional  balance-she 
from  Alexandria  shows  an  aggregate  of  transactions 
^1> ,000,000  passing  through  the  books  of  the  bank  with 
debt  or  loss  ;  and  the  account  of  profit  and  loss,  afte 
allowance  for  suspense  accounts,  shows  thjit  the  director 
ranted  in  reconnnending  tui  interim  dividend  of  Sit.  p 
at  the  rate  of  10  per  cent,  per  annum  on  the  amounts 
iug  f(^rward  a  handsome  surplus  to  be  brought  into  ac 
iirst  complete  accounts  of  a  financial  year's  working  a 
the  shareliolders  in  October  or  November  next." 

The  Cliairman  then  said  he  had  taken  the  chair  at  tl 
friends  and  the  meeting,  principally  because  Mr.  Pa8tr^,t 
of  the  company,  was  not  in  the  habit  of  addressing  a  me^ 
He  should  observe  that  the  report  stated  that  this  meetini 
and  entirely  a  provisional  one ;  the  articles  of  association 
should  be  called  within  the  mouth  of  March,  and  the  yeai 
business  terminated  only  in  June.  The  operations  of  tl 
therefore,  been  entirely  provisiontd.  The  directors  wen 
the  report  in  the  hands  of  the  shareholders  on  this 
because  of  the  delay  in  tlie  arrival  of  the  mail  from 
boisterous  weather  in  the  Mediterranean.  INIr.  l^ostr 
Alexandria  only  arrived  just  in  time  to  enable  ihem  tc 
ing  within  the  time  prescribed  by  the  articles  of  ass( 
those  circumstances  the  directors  had  the  alternati^ 
meeting  postponed  until  the  mont'n  of  October  or  Nove 
the  shareholders  together  to  give  them  generally  the  ac 
directors  had  received  of  the  state  of  their  alfairs,  in  o: 
thorn  waiting  the  whole  twelve  months  for  any  return.  ( 
fore,  they  must  take  upon  the  credit  of  the  board  what 
was  simply  this  ;  that  their  accounts  were  perfectly  sati 
to  the  amount  of  profit  and  the  condition  of  the  assets 
amount  of  business  transacted,  the  directors  saw  theii 
recommend  the  dividend  mejitione<l  in  the  report  of  8."<. 
income-tax,  being  at  the  rate  of  10  per  cent,  on  the  capil 
paid-up  under  the  different  calls.  They  might  be  certj 
woulil  not  renonnnond  an  interim  dividend  unless  they  i 
every  probability  that  the  rate  would  be  kept  up  in  the  f\ 


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European  and  American  Finance  Corporatioti,  613 

e  directors  would  be  enabled  to  declare  a  larger  dividend,  for 
f  had  been  but  a  short  time  in  existence,  and  a  good  many  of 
I  were  necessarily  suspense  accoimts,  and  were  not  finally 
3 til  the  close  of  the  Eg>T>tian  year.  The  directors  had  thought 
e  prudent  to  recommend  this  dividend  on  account,  and  wait 
6  of  twelve  months  before  they  paid  any  larger  dividend, 
jrefore,  remained  on  the  present  occasion  but  to  ask  them,  if 
to  adopt  the  report  of  the  directors  and  confirm  the  divideud. 
bed  they  found  the  proper  time  to  hold  the  annual  meet- 
)e  about  the  month  of  October,  as  in  Egypt  practically  the 
;he  year  closed  with  the  month  of  June  or  July.  That  was 
rvests  were  all  gathered  in,  and  when  the  dry  season  set  in, 
e  inundation  of  the  Nile  restored  activity  there  was  a  period 
for  two  or  three  months,  and  that  was  the  period  in  which 
transactions  were  wound  up.  Those  accounts  would  be  re- 
in August,  and  that  would  give  the  month  of  Sej)tember  to 
ui  fully,  and  the  month  of  October  they  might  look  forward 
meeting.  Two  special  meetings  woidd  have  to  be  called 
articles  of  association,  to  substitute  the  period  of  October 
jr  for  that  of  March  or  Ajjril  for  holding  the  general  meet- 
>rely  mentioned  this  that  gentlemen  might  know  what  would 
e  of  the  notice  they  would  receive,  that  they  might  not  be 
nnecessary  inconvenience.  For  the  present  he  would  confine 
Qoving  that  the  report  of  the  directors  be  adopted,  and  that 
[  of  8s.  per  share  free  of  income-tax  declared  by  them  be  oon- 

Macpherson  seconded  the  resolution,  and  it  was  carried  unani- 

thanks  was  then  passed  to  the  chairman  for  his  able  conduct 

•man  said  he  was  very  much  obliged  to  them,  and  hoped  when 
i  met  them  on  the  next  occasion  the  accounts  would  be  equally 
to  both  parties, 
edings  then  terminated. 


EAl^  AND  AMERICAN  FINANCE  CORPORATION, 
LI>UTED. 

ordinary  general  meeting  of  the  shareholders  in  this  company 
the  30th  March ;  Edward  Rudston  Read,  Esq.,  in  the  chair, 
tary  having  read  the  notice  convening  the  meeting, 
-man  stated  that  there  was  a  slight  uiaccuracy  in  the  report  as 
egard  to  the  available  balance  for  liquidation,  which  should  be 
Id.  instead  of  £880.  Is.  lid.,  but  that  the  accounts  attached 
'  correct,  and  were  not  afiected  by  the  figures  in  the  body  of 

tary  then  read  the  amended  report  submitted  to  ^the  meeting, 
tunts  having  been  taken  as  read, 

■man,  in  moving  the  adoption  of  the  report  and  accounts,  said 
/h  in  the  first  instant  two  or  three  dissentients  to  the  arrange- 
the  Public  Works  Credit  Company,  Limited,  had  presented 
all  objections  had  been  since  withdrawn,  and  the  agieement 


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61*4  Britkh  and  Calif ornian  Banking  Compai 

was  now  unanimously  approved,  and  the  object  of  the  prese 
merely  to  submit  the  report  and  accounts,  and  formally 
dividend  as  recommended  at  the  late  extraordinary  genei 
the  shareholders  lield  on  the  lat  and  20th  ultimo. 

It  was  tlieu  proposed  by  the  Chairman,  seconded  by  Johi 
Esq.,  and  unanimously  resolved : — "  That  the  report  an< 
accounts  to  the  2M  March  now  submitted  be  received  and 

It  was  moved  by  the  Chairman,  seconded  by  George  Raw] 
unanimously  resolved  : — "  That  a  dividend  of  two  shillings 
of  income-tax)  upon  the  10,000  shares,  be  hereby  decla 
payable  on  and  after  the  20th  April." 

Joseph  Hoole,  Esq.,  proposed,  and  George  Rawlings,  E 
"  That  a  dividend  having  now  been  declared  and  the  busiu 
to  another  company,  the  shareholders  feel  it  incumbent  upc 
some  remuneration  to  the  directors  for  their  past  services, 
vote  and  beg  their  acceptance  of  £300  out  of  the  available  1 
resolution  was  carried  unanimously. 

It  was  moved  by  Henry  John  Bale,  Esq.,  seconded  by  Jo 
and  unanimously  resolved  : — ^**  That  .the  best  thanks  of  tl 
given  to  the  chairman  and  directors  for  their  zeal  and  a 
interests  of  the  company." 


BRITISH  AND  CALIFORNIAN  BANKING  CO]i 
LliVUTED. 

The  first  annual  meeting  of  the  shareholders  of  this  con 
on  the  2nd  April,  at  the  London  Tavern ;  W.  Nicol,  Esq 
chair. 

Mr.   Samuel   Magnus    (the  secretary)  read  the  notice 
meeting,  and  also  the  following  report  of  the  directors  : — 

"  The  directors  have  the  pleasure  to  submit  to  the  sli 
audited  balance-sheet  of  the  bank  to  31st  December,  18 
the  credit  of  profit  and  loss  account  the  sum  of  £0,231.  \ls.  \ 
the  deduction  of  the  current  expenses,  amounting  to  £2,36! 
available  balance  of  £3,809.  10s.  3(i.  In  the  report  ad 
shareholders  on  the  12th  December  last,  the  directors  gav< 
their  proceedings  up  to  that  date.  They  have  now  to  state  i 
in  San  Francisco  commenced  business  in  their  own  pren 
management  of  Mr.  Henry  S.  Babcock,  at  the  end  of  1 
sequently  the  accounts  only  include  the  results  of  a  few  we 
in  California.  The  paid-up  capital  of  the  bank  on  the 
amounted  to  £100,000  ;  since  which  time  the  first  call  of  i 
come  due,  and  has  been  well  res|X)n«led  to.  The  advices  fror 
respecting  the  development  of  local  and  general  business  i 
and  the  arrangements  concluded  with  banks  and  comm 
eminence  in  the  (Ufferent  localities  connected  with  the  trad 
promise  to  be  of  importance,  and  have  alreafly  begun  to 
results.  The  directors  now  declare  a  dividend  of  three  shil 
free  of  inoonio-tax,  ]>ayaV)le  to  the  proprietors  on  and  after 
which  will  absorb  £3,000,  and  leave  £809.  IO5.  Zd.  to  be  ( 
to  the  cri^lit  of  profit  and  loss  new  account." 


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Britinh  and  Calif ornian  Banking  Company. 


615 


irman  said  it  would  be  in  tlie  recollection  of  those  who  were 
ireholders  tliat  this  undertaking  was  intro<hiced  to  the  London 
the  London  Financial  Association.  That  association  invited 
literwards  got  shares  to  take  a  part  in  the  undertaking,  they 
y  to  pay  the  preliminary  expenses  up  to  a.  certain  point.  They 
derto<:)k  to  pay  tlie  clerks,  printing,  advertising,  and  all  the 
nses  up  to  the  allotment  in  the  Stock  Exchange,  and  the 
ing  given  by  the  committee  of  the  Stock  Exchange  to  the 
y.  They  were  to  receive  a  stipulated  sum  for  their  services, 
;  due  to  them  to  say  also,  in  case  the  undertaking  did  not 
ey  undertook  to  be  at  the  risk  of  the  preliminary  expenses. 
\king  did  succeed  up  to  the  allotment  of  the  shares  by  the  Stock 
md  that  association  received  the  stipulated  amount  of  £(),(K)0. 

it  necessary  to  mention  this,  as  the  preliminary  expenses  might 
pp^ar  large.  While  the  matter  was  in  course  of  arrangement 
ight  atlvisable  to  form  a  connection  with  one  of  the  leading 
lalifomia,  by  which  arrangement  they  would  have  a  resident 
their  managing  director.     Another  partner  in  the  same  concern 

his  seat  at  their  board,  and  a  stipuLatcd  sum  was  named  that 
y  was  to  give.  This  had  so  far  been  carried  out  that  the  part- 
en  his  seat  at  the  board,  and  the  company  had  made  prepara- 
mmencing  business  at  San  Francisco.  They  had  sent  out  an 
[inager  and  an  accountant.  As  he  had  stated,  it  was  arranged  that 

in  the  house  was  to  undertake  the  duties  of  managing  director, 
ley  came  to  look  more  narrowly  into  the  matter  it  was  found 
npossible  to  separate  the  banking  from  the  commercial  business. 
3re  had  been  a  failure  of  their  crops,  and  business  was  rather  at 

It  ended  in  their  mutually  agreeing  to  abandon  the  junction 
len  arrange<l  for.  That  was  at  the  end  of  June,  and  since  then 
y  had  obtained  the  services  of  Mr.  Henry  S.  Babcock  as  man- 
ley  had  every  reason  to  bo  satisfied  with  his  management.  In 
e  of  these  delays  it  was  nearly  the  end  of  November  before  they 
lence  active  business  in  San  Francisco,  so  that  the  profits,  as 
i'raucisco  was  concerned,  were  merely  of  a  nominal  kind.  In 
ne,  however,  the  times  had  been  favourable  to  their  employing 
of  the  shareholders  profitably  in  this  country,  and  the  bulk  of 
s,  in  fact,  had  been  earned  in  the  ordinary  channels  of  business 
The  company  had  made  an  arrangement  with  Messrs.  Brown 
f  New  York,  for  which  house  Brown,  Shipley  and  Co.  were  the 
Lves  in  tliis  country,  and  they  had  every  reason  to  believe  that 
jeincnt  would  prove  a  highly  satisfactory  one.  Arrangements 
en  made  with  nearly  all  the  Indian  banks,  some  portions  of 
been  carried  into  effect  by  joint  shipments  of  precious  metals, 
hey  had  a  little  more  time  to  got  the  metals  into  San  Francisco, 
loubt  they  would  be  able  to  carry  on  a  profitable  business.  The 
ie  in  London  were  £5,000,  and  during  the  short  time  they  had 
ration  in  San  Francisco  they  had  realised  about  £1,200 — that  was 
t  weeks — the  directors  had  seen  no  reason  to  have  a  worse  opinion 
jrtaking  than  they  had  at  the  commencement ;  and  their  manager, 
*8,  spoke  most  encouragingly  of  their  prospects.  On  the  board  they 
onen  who  had  had  long  ex|)erience  in  San  Francisco,  whose  aid 
iraluable.  They  liad  had  the  misfortune  to  lose  the  services  of 
igue,  Mr.  Childers  ;  but  to  show  his  opinion  of  tlie  concern,  he 
is  shares,  and  intended  ti>  do  so.    Although  the  undertaking  had 


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616  British  and  Calif ornian  Banking  Conipai 

been  slow  in  the  commencement,  perhaps  they  would  give  tlw 
for  taking  their  ground  carefully  and  cautiously.  Of  the 
formed  the  board,  including  himself,  ten  were  engaged  in  b; 
and  two  were  gentlemen  of  eminence  in  San  Francisco.  To  s 
the  board  heldof  the. undertaking,  he  might  say  the  direct 
than  15  per  cent  of  the  capital, or  3,000  shares.  Although  tl 
been  slow,  they  must  hope  that  it  was  like  the  British  oak,  ^ 
slow  of  growth,  has  always  been  a  favourite  in  this  country 
fore  moving  the  adoption  of  the  report,  he  would  be  glad 
inquiries  of  any  shareholder. 

A  Shareholder  said  tliat  no  doubt  many  were  disappoints 
of  the  report.  He  thought  the  preliminary  expenses,  £9,( 
their  capital,  a  very  large  sum.  In  addition  to  that  there 
on  the  Stock  Exchange  which  might  have  had  the  effect  of 
shares  to  their  present  value,  that  in  aildition  to  that  sum  i 
3,0(X)  shares  to  the  London  Financial  Association  at  par,  a: 
were  used  for  a  particular  manipulation  known  as  "ri| 
shares  were  sold  to  unfortimate  shareliolders  like  hims 
premium. 

The  Chairman  replied,  as  far  as  the  directors  were  conce 
far  from  lending  their  sanction  to  any  dealings  of  that  kin< 
Exchange.  It  was  quite  true  the  London  Financial  Assoc 
number  of  shares  allotted  to  them.  He  believed  they  hj 
them  since,  but  he  did  not  think  they  had  "  rigged  "  the  m; 

A  Shareholder  thought  the  directors'  remuneration  ven 
a  year,  and  £500  for  every  one  above  6  per  cent. 

The  Chairman  said  that  was  what  was  stipulated  in  th< 
ment,  but  he  might  state  the  directors  had  not  taken  that 
not  taken  more  than  half  of  it. 

A  Shareholder  said  the  item  for  freehold  premises  in  Sai 
Lombard  Street  was  very  large. 

The  Chairman  said  they  had  purchased  the  freehold  in  Sfi 
£8,000,  and  he  had  a  pliotograph  that  they  might  judge  of 
of  the  buihling.  About  £(j(X)  had  been  expended  in  com  pi 
bank.  Tlie  lease  of  the  premises  in  Lr»mbard  Street  was 
£2,500.  He  miglit  add  that  the  rent  derived  from  the  p 
Francisco  gave  a  return  of  12  per  cent,  on  the  outlay. 

Mr.  McEwen,  a  shareholder,  said  he  could  not  see  what 
had  to  do  with  any  other  company.  Tliey  must  bear  in 
year  was  a  year  of  considerable  speculation  in  companies,  i 
great  number  of  the  sliares  of  this  company  were  applie 
view  of  their  being  re-sold  at  a  considerable  premium.  M 
of  the  new  companies,  steps  were  taken  to  give  the  app 
siderable  business  being  clone  in  order  that  the  shares  migl 
mium.  He  had  never  taken  shares  in  any  company  excej 
mont,  and  he  thought  if  shareholders  came  into  a  bank  sue 
altogether  a  delusion  for  them  to  expect  rapidly  to  acqui 
His  own  opinion  was  that  tlie  directors  of  this  company  v 
the  thanks  of  the  shareholders  for  the  care  they  had  tak( 
business — for  they  had  resisted  the  temptation  of  rushing 
which  might  have  resulted  in  a  loss.  They  had  laid  the  i 
sound  and  profitable  business.  (Hear,  hear.)  Ho  could  no 
argument  with  respect  to  the  preliminary  expenses  and  the 
His  own  experience  was  that  if  their  business  wa.s  carried 


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Xational  Financial  Company.  617 

acisco,  at  no  very  distant  date  it  would  pay  a  large  portion  of 
J.  There  would  be  no  large  amount  of  customers'  balances 
long  time.  The  capital  on  wliich  they  would  trade  must  be 
japital,  for  not  until  they  had  done  business  for  a  long  time 
have  deposits  to  a  large  amount.  He  had  seen  in  other  com- 
hares  go  to  a  discount  on  the  very  same  grounds  as  this,  where 
ition  had  been  exercised,  and  the  biminess  had  been  made  sound, 
oiitable.  Having  at  their  head  gentlemen  of  practical  banking 
with  a  knowledge  of  banking  on  the  otlier  side  of  the  world, 
jr  ougltt  to  be  a  great  success.  He  would  only  repeat,  as  far  as 
erned  he  thought  they  owed  very  much  to  the  directors  that 
isisted  the  temptation  of  rushing  into  business,  and  laid  the 
:or  the  business  for  which  the  institution  was  originally  founded. 

rman  then  moved  the  adoption  of  the  report,  and  Mr.  Wade 

3  motion. 

lolder   contended  that   it  was  quite  premature  to  decLare  a 

id  moved  an  amendment  that  it  was  inexpedient  to  carry  out 

mdation  of  the  directors  to  declare  a  dividend.     There  did  not 

I  anyone  willing  to  second  it,  and  the  hon.  proprietor  said  he 

I  to  press  his  amendment,  and  accordingly  withdrew  it. 

ition  for  the  adoption  of  the  report  was  then  put  and  carried 

y\ 

ls  of  the  meeting  were  then  voted  to  James  Begbie,  Esq.,  and 

5pratt,  Esq.,  for  their  efficient  audit  of  the  accounts,  and  they 

lanimously  re-elected  auditors  for  the  ensuing  year. 

ng  was  then  made  special  for  the  purpose  of  making  the  fol- 

ations  in  the  articles  of  association.     In  the  clause  97,  to  eub- 

rords  "  four  months  "  for  the  wortls  "  two  months,"  and  in  the 

,  section  O,  to  insert  the  words  "  except  the  shares  of  the 

ifter  the  word  "  foreign." 

thanks  was  then  passed  to  the  chairman  and  directors,  and  the 

terminated. 


NATIONAL  FINANCIAL  COMPANY. 

linary  general  meeting  of  this  company  was  held  at  the 
em,  on  the  3rd  April,  for  the  purpose  of  considering  an  agree- 
in  the  directors  of  the  company  and  the  Oriental  Commercial 
«d,  for  the  combination  of  the  two  undertakings.  The  chair 
1  by  Mr.  M.  C.  Seton. 

tary  read  the  notice  convening  the  meeting. 

■man — Gentlemen,  the   circular  letter  which  ha«  been  sent  to  i. 

I  older  has  informed  you  generally  of  the  object  of  this  meeting, 
nerally  expressed  opinion  at  the  last  public  meeting  (the  first  ' 

seting),  anil  from  the  letters  which  we  have  had  from  the 
,  and  from  the  conversation  we  have  had,  particularly  I  myself,  ]• 

of  the  shareholders,  I  believe  the  desire  then  expressed  haa  • 

itorily  carried  out  in  this  proposed  amalgamation— that  desire  ;. ' 

e  should  rather  seek  to  obtain  regular  and  steady  dividends  of 
jharacter  than  extraordinary  and  fitful  dividends  which  were 


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National  FhiatK'ial  Compaitif. 


^^ 


of  a  more  doubtful  character,  aiid  might  not  continue  so  lo 
we  have  had  in  view,  and  we  believe  that  we  have  obtaine< 
posed  amalgamation.  The  business  of  the  OrientiU  Cominc 
have  carefully  examined,  and  we  find  that  from  the  comu 
have  paid  a  dividend  of  15  per  cent.,  with  which,  I  think, 
may  be  well  contented;  but  there  is  no  reason  why  i\ 
increased,  and  I  hope  it  may  be  increased.  But,  at  any  x 
have  satisfied  ourselves — ^namely,  that  it  is  a  genuine,  s 
busiDess,  not  likely  to  be  subject  to  fluctuations,  nor  incurr 
risk  ;  and  therefore  we  hope  we  have  fultilled  your  wishes 
wiU  give  your  approval  of  this  step  which  we  have  imde 
be  happy  to  answer  any  questions  before  moving  any  n 
hai)s  you  woidd  like  to  hear  the  agreement  which  has  I 
I  will  therefore  call  upon  the  solicitor  to  read  it. 

The  Solicitor  here  read  the  agreement,  the  terms  of  ^ 
the  shareholders  of  the  Nationiil  Financial  Company  we 
to  the  Oriental  Bank  £100,000,  and  £5  contribution  to  th( 
for  which  they  would  be  credited  with  £4  shares  paid-up,  I 
£1  would  be  taken  to  make  the  £4  shiureb  up  to  £5,  a] 
if  any,  would  go  to  the  joint  reserve. 

A  Shareholder — What  is  the  reserve  fond  of  the  Orient 
Bank  ? 

Mr.  Pepper— It  will  be  about  £45,000,  including  £5,00( 
this  company. 

The  Shareholder — What  was  the  reserve  fund  of  tl 
Company  which  amalgamated  with  the  Oriental  B;ink  ? 

Mr.  Pepper— £19,500. 

Mr.  Gosset  said  that  the  Oriental  Commercial  Bank  shar^ 
Did  he  understand  that  the  shai'es  of  the  National  Finan 
at  £4  paid  ? 

The  Chairman — At  first. 
.  Mr.  Gosset  said  he  should  like  to  know  whether  there  wa 
as  to  when  the  other  £3  was  to  be  called  up,  as  that  wj 
point  to  the  shareholders.  He  also  thought  some  balai 
liave  been  fiu'nished  to  the  shareholders,  so  that  they  migl 
position  they  were  io  at  the  present  moment.  At  the  last 
sum  of  money  had  been  put  down  as  profits  not  then  i 
thought  more  information  should  now  have  been  given  u 
There  was  no  doubt  that  the  thanks  of  the  shareholders  i 
directors  for  endeavouring  to  carry  out  this  amalgamation 
the  result  would  be  that  the  shares  of  the  company  wc 
market. 

Mr.  Clench  said  that,  with  regard  to  the  arraugemen 
Financial  shareholders  would  be  credited  with  £4  piiid  up 
intention  of  the  Oriental  Bank  hereafter  to  endeavour 
shares  remain  at  £5  paid  up;  and  a  great  many,  if  nc 
holders  in  the  Oriental  Commercial  Bank,  had  agreed  to 
shares  for  £4  paid  up  with  £5  paid  up.  The  agreement 
but  the  assets  would  realise  a  still  greater  amount,  and  \ 
credit  of  the  shareholders.  It  was  not  the  intention  of 
make  a  further  call,  as  they  believed  that  the  united  capi 
would  be  sufticient  for  all  practical  purposes.  He  believed 
tion  would  improve  the  value  of  the  property  in  the  mark( 
interest  of  the  shareholders  in  every  way.  With  respe 
alludtd  to  as  having  been  realised,  the  balance,  after  prov 


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Bank  of  Britkh  Columbia*  619 

1  go  to  the  reserve  fund  of  the  amalgamated  companiea  to 
various  disbursements — such  as  expenses  of  management,  fees 
ajid  dividend,  and  other  expenses  incidental  to  the  working  of 
7- 

a.tt,  M.P. — Then  we  are  to  be  credited  with  £X  per  share  paid 
imd. 

rman — Yes. 

itor — I  will  explain.  The  elfect  of  the  arrangement  is  tliis  : 
re,  on  25,000  shares,  is  ii^l 00,000,  and  ii5,000  cimtribution  to 

fund  is  £105,000,  then  aft^r  haviug  handed  over  to  the 
D  £105,000  the  shareholders  of  the  National  Fiu.ancial 
t  of  £1  per  shai*e  (making,  with  £4,  £5  per  share),  will  take 
I  make  up  that,  and  any  surplus  will  go  to  the  joint  reserve, 
ttt  said  he  should  like  to  know  fuiiher  about  the  profit  i  stated 
d  at  the  last  meeting. 

ch  stated  that  it  was  right  the  directors  should  answer  tliis 
mkly.  £21,000  was  carried  to  the  suspense  account,  which 
iarned  by  the  company,  but  not  realised  as  set  forth  in  the 
of  that  there  was  £9,000  ui)on  which  some  dispute  arose, 
n  was  commenced  by  the  company  to  recover  it,  but  in  the 
the  parties  failed,  and  the  directors  had  j^roved  against  tlie 
hat  amount.  The  remainiDg  £12,000  was  conditional  upon 
:acts  being  rejUised.  At  present  it  was  premature  to  say  how 
vould  turn  out  to  be,  but  whatever  it  Wiis  would  go  to  the 
le  company. 

Bumey  (Chairman  of  the  Oriental  Commercial  Bank)  re- 
n  the  benefits  likely  to  result  from  the  amalgamation,  and 
at  for  £90,000  cash  paid  the  National  Financial  would  receive 
1100,000.  He  also  remaiked  that  if  possible  the  directors 
vour  to  do  without  a  call. 

or  two  further  remarks  from  Mr.  De  Pass,  Mr.  King,  and 

man  moved  a  formal  resolution  approving  of  the  agreement, 
ijconded  by  Mr.  King,  and  carried  unanimously. 
man  then  announced  that  in  consequence  of  the  amalgamation 
Lrectors  had  been  obliged  to  retire,  and  ho  thought  the  thanks 
holders  were  due  to  those  gentlemen  for  having  thus  given 
T  to  promote  the  welfare  of  the  company. 
)lder  expressed  his  opiuion  that  something  more  than  thanks 
)  them,  and  moved  that  the  sum  of  £300  each  be  awarded 
was  seconded  by  another  shareholder. 

itlemen  dissented  from  the  proposition,  but    on  the  motion 
the  meeting  it  was  carried, 
thanks  was  then  x>assed  to  the  chairman,  and  the  proceedings 


BANK  OF  BRITISH  COLUMBIA. 

ry  general  meeting  of  the  shareholders  of  the  bank  was  held 
Lpril  at  the  London  Tavern,  Bishopsgate  Street,  Mr.  T.  W.  L. 
the  chair. 


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G20 


Bank  of  British  Columbia. 


The  following  report  was  taken  aa  read  :  — 
"  The  directors  in  submitting  their  report  have  to  c 
fihareholders  on  the  success  that  has  ccmtintie^l  t^  attend 
of  the  bank.  From  the  accompany  iug  Bt  ate  intent  of  aco 
Heen,  that  after  paying  current  ex|M-ii<>c^  and  dedticting  r 
on  bills  not  due,  the  amount  of  undLvi<ltMi  prolit  ski  the  c 
lisdf-year,  ended  31st  December  last,  was  ^1B,680,  12«. 
directors  propose  to  appropriate  as  ff»Ht»wa,  viz. : — C8,3i^. 
ment  of  a  dividend  at  the  rate  of  10  jier  (M?nt.  per  annun 
months  on  £126,000,  and  for  four  months  od  £02,5(N>,  [mi 
last)  ;  £7,000  to  be  added  to  reserve  fund,  wbieh  will  be  tl 
to  £13,000;  leaving  £3,347.  6«.  6d.  to  be  carried  forwar 
half-year.  The  directors  who  retire  by  r^itatiQH  are  Mr, 
Kay,  and  Mr.  Anderson,  but,  being  elig^ible,  they  offer  th* 
election.  The  proprietors  will  have  t^j  elect  auditors  for  tl 
By  order  of  the  Court,  Hrnky  Ed.  BANSoai,  Manager." 


Statement  qf  Liabilities  and  Assei$  at  the  LontJoit  Qfiee  a\ 
on  ^\9t  Deeemhtr^  1864. 


LIABILITIES. 

Dr. 

Capital  paid  up 

Reserve  fdnd  

Deposits,  notes  in  circulation,  bills  payable,  aad  other  lia- 
bilities       

Balance  of  profit  and  loss  on  the  Slst  December,  1864 


Cr, 

Specie  and  bullion  in  hand,  and  cash  at  linkers* 
Dank  premises,  furniture,  and  other  property  .., 
Bills  discounted,  bills  receivable,  (government  and  other  secu- 
rities          '.        


Prqfit  and  Loss  Account,  3 Iff  BecemBer^  1864 

Dividend  paid  3rd  October,  1864  

Amount  carrieil  to  reserve  fund  

Charges  to  Slst  December,  1864,  including  rent,  taxes,  sala- 
ries, directors*  fees,  and  all  other  e^tpenses  at  head  office 
and  branches  

Balance  of  profit  Slst  December,  1864  .,«        ...        


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Bank  of  Queensland^  621 

088  account,  brought  from  30th  June, 

11,105  16     6 

ending  31st  December,  18']4,  after  de- 

ntere.st  on  bills  not  due  25,006  16     7 


£36,112   13     1 
If, 680  12     1 

£18,OSO  12     1 

moving  the  adoption  of  the  report,  said  that  the  great 
iince  the  last  meeting  had  been  the  establifthment  of  a 
SCO,  which  had  up  to  the  present  time  done  remarkably 
fit  hopes  that  it  would  continue  to  prove  a  source  of 
There  had  been  a  line  of  steamers  projected  between 
hina,  to  which  the  American  government  had  granted 
eamers  would  be  in  operation  very  shortly,  and  by 
lerce  of  Sjin  Francisco  would  tend  to  benefit  their 
it  point  upon  which  he  had  to  congratulate  the  pro- 
^y  had  not  been  able  to  discover  a  single  bad  debt 
:li  in  a  measure  was  due  to  the  great  zeal  and  ability 

inspector,  and  those  under  him. 
;  been  seconded  by  Mr.  R.  Gillespie, 
ed  whether,  in  the  judgment  of  the  directors,  it  was 
e  a  proportion  of  the  profits  as  £7,000  out  of  £18,000 
>  the  reserve  fund.  He  thought  that  a  larger  dividend 
ded,  although  probably  the  board  had  some  oVjject  in 
ttion  they  had  made. 

I  that  the  board  had  not  the  slightest  idea  of  any  bad 
3  fund  had  not  been  augmented  on  that  ground.  A 
it  every  prudent  bank  desired  to  make.     (Cheers.) 

iiuestions, 

i  that  the  reserve  fund  was  not  invested  in  govern- 

employed  in  the  business  of  the  bank. 

)pted,  and  a  dividend  at  the  rate  of  10  per  cent,  per 

le  tax  (being  for  six  months  on  £125,000,  and  for 

00  paid  1st  September  last),  was  declared  payable  on 

bed  that  it  was  possible  that  the  requirements  of  the 
e  directors  to  make  a  call,  but  it  would  not  be  before 
ent  of  an  issue  of  new  shares  of  course  they  would  be 
to  the  existing  shareholders. 

ora  and  auditors  having  been  re-elected,  the  proceed- 
a  close  with  a  vote  of  thanks  to  the  chairman. 


K  OF  QUEENSLAND,  LIMITED. 

oeral  meeting  of  the  shareholders  of  this  bank  was 
the  company,  26,  Old  Broad  Street,  on  the  5th  of 
«  of  confirming  certain  special  resolutions  amending 
ition,  agreed  to  at  an  extraordinary  meeting  held  on 
Lairman,  Sir  Joshua  Rowe,  C.B.,  presided 

49 


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622  Discount  Corporation. 

•  •  I  The  Secretary  (IVIr.  Miiir)  read  the  resolutions,  which  m 
I                                 — to  transfer  the  power  of  increasing  the  capital  of  the  coi 

i  directors  to  the  shareholders  ;  to  determine  an  increased 

I  )  the  directors  ;  to  reduce  the  maximum  amount  of  director 

♦  I  from  £4,000  to  £2,000  per  annum  ;  and  to  transfer  the  po¥ 

auditors  from  the  directors  to  the  sliareholders. 
1  The  Chairman  said  the  meeting  was  merely  a  matter  of 

being  to  confirm  the  special  resolutions  which  had  been 
previous  extraordinary  meeting.     He  then  put  the  resolu 
to  the  meeting,  which,  having  been  seconded  by  Mr.  Co 
mously  confirmed. 

The  proceedings  then  terminated. 


,  DISCOUNT  CORPORATION,  LIMITEl 

The  second  ordinary  general  meeting  of  the  shareholders 
(  wjis  held  on  the  11th  April,  at  the  London  Tavern  ;  Mr. 

in  the  chair.     The  following  report  was  presented  : — 
■  "  The  directors  have  the  pleasure  to  submit  to  the  shar 

I  ment  of  the  alFairs  of  the  corporation  for  the  half-year  ei 

!  18G5,  showing  a  gross  profit,  including  £648.  Is.  Id.  broug 

I  la.st  account,  of  £31,224.  Is.  10(/.,  from    which,  after  d 

^  of  bills  not  due,  and    current  expenses,  there   remains 

£10,111.  7s.  6ti,    The  directors  recommend  the  sum  of  £5, 

•  priated  to  the  payment  of  a  dividend  of  10s.  a  share,  beii 
t  ratlier  more  than  5^  per  cent,  per  annum  on  the  paid- 
j                      tliey  have  set  aside  the  sura,  of  £9,000  to  meet  bad  and 

leaving  a  bahmce  of  £2,111.  7s.  Gd.  to  be  carried  to 
account.     Since  the  last  meeting  of  shareholders,  the  com 
through  a  very  severe  and  prolonged  monetary  crisis,  ai 
'  are  satisfied  that,  considering  the  large  number  of  com 

•  that  have  taken  place,  the  amount,  £9,000,  which  the 
4  from  the  half-year's  profits  as  the  maximum  amount  of  Ic 

will  be  considered  by  the  shareholders  as  moderate,  and 
have  been  led  to  anticipate.  They  have,  further,  mud 
stating  that  none  of  the  assets  of  the  corporation  are  loc 

1  vertible  securities.     The  directors  can  report  most  favoural 

and  position  of  the  company's  business,  but,  as  its  pre 

.  greatly  upon  the  amount  of  deposits,  they  would  urge  ' 

holders  that,  by  bringing  and  influencing  these,  they  wil 

•  to  its  success. 

'  Balance-sheet,  March  31, 1865. 

Capital  account — 10,000  shares,  on  which  £20  have  been  paid, 

}  £200,000;  Less  arrears,  £l,7t).)        

)  Loans,  deposits,  &c.,  &c, 

[  Reserve  fund 

Amouut  at  credit,  as  per  annexed  statement       


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Discmnt  Corporation. 


623 


[JS,  &c.,  &c 

ace  and  Co.,  and  Mesgra.  Westt  n  and 

purchase  of  their  business        

per  last  baIance-Bheet,£5,352, 9#.  5d. ; 
ptember  last,  £2,000         


£5S,0U  18  8 

2,228,973  4  0 

60,000  0  0 

3,352  9  5 

£2,350,337  12  1 


ccountfor  the  six  months  ending  March  31,  1865. 


£5,111  11     2 


26,112 

10 

8 

£31,224 

1 

10 

£648 
30,576 

1 
0 

1 
9 

£31,224 

1 

10 

iding  salaries,  rent,  taxes,  income- 
iditors'  remuneration,  and  all   other 

;  bad  debts,  £9,000 ;  Rebate  of  interest 
ot  yet  due,  carried  forward  to  new 
', ;  Dividend  of  10*.  per  share  on  10.000 
ce  carried  forward  to  profit  and  loss 

!••    Oi*«  •••  •••  •••  •••  ••• 


from  30th  September,  1864 
half-year        


aoving  the  adoption  of  the  report,  said  that  by 
tion  their  meetings  were   held   only  once  a  year. 

prosperous  state  of  their  affairs  during  the  past 
ht  desirable  to  submit  to  the  shareholders  a  state. 
»  of  the  company  during  that  period.     He  did  not 

be  said  in  addition  to  the  information  given  in 
)rt  had  already  been  circulated  amongst  the  share- 
Rrere  in  possession  of  all  the  facts  connected  with 
ipany  during  the  past  six  mouths.  He  would 
3  the  adoption  of  the  report,  but  before  putting 
begged  to  say  that  he  would  be  happy  to  answer 
ight   be    asked   respecting  any  matters  mentioned 

what  was  the  rebate  at  which  bills  were  carried 

nd  a  half. 

3  £60,000  complete  our  purchase  money  in  regard 

isrs.  Bruce  and  Company  and  Messrs.  Weston  and 

another  £10,000  to  pay  still. 

directors  think  the  sum  carried  forward  for  bad 
&ciently  ample  ? 
). 
whether  the  securitieB  were  readily  convertible  or 


Digitized  by  VjOOQ IC  ' 


I  624  Discount  Corporation* 

\  The  Chairman  replied  that  they  were  in  a  favourable  pos 

respect,  every  one  of  their  securities  being  easily  convertible. 
«  The  motion  for  the  adoption  of  the  rejxjrt  was  then  put 

)  unanimously,    and  a   dividend   at   the    rate   of    6^  per   ce 

\  accordingly. 

The   Chairman  took   occasion  to   remark  that  the  oompa 
*  passed  through  a  very  exceptional  period,  notwithstanding  w 

}  suits   shown,  he   thought,  might    be   looked   upon  as   satisj 

thought,  however,  they  might  consider  that  they  had  seei 
eflects  (»f  the  late  monetary  crisis,  and  good  times  were  before 
A  Shareholder  complained  that  some  time  since,  when  h 
the  secretary  for  information  as  to  what  probable  losses, 
•  company  were  likely  to  suftbr  through  the  effects  of  t 
monetary  affairs  at  that  time,  the  secretary  gave  indefi 
whereby  he  (the  shareholder)  wjis  led  to  infer  that  some 
been  sustained,  and  he  was  therefore  dissuaded  from  inv 
which  at  the  time  he  had  at  his  disposal.  If  that  questio 
fairly  answered — if  it  was  admitted  by  the  secretary  that 
some  losses,  but  that,  considering  the  commercial  crisis 
they  were  not  considerable — he  maintained  that  it  would  have 
for  the  com|)any.  He  thought  every  shareholder  was  entit] 
answer  from  the  secretary. 

A  Director  thought  it  would  have  been  very  unwise  for  the 
give  the  information  required  in  this  instance,  because  the 
getting  the  information  would  know  more  than  the  general  be 
holders,  and  would  therefore  possess  an  undue  advantage  ove 
hoped  the  shareholders  would  support  the  directors  in  nt 
any  one  shareholder  information  which  the  others  had  i 
hear.) 

In  a  short  discussion  which  ensued,  the  conduct  of  the  secre 
ing  the  question  at  issue  was  declared  to  be  only  right  and  pre 
general  feeling  seemed  to  be,  that  if  the  secretary  hiul  given  1 
tion  sought  to  be  obtained,  he  would  have  been  guilty  of  a  d^ 
duty. 

The  Chairman,  in  reply  to  a  question,  said  that  according 
pectus,  they  had  made  as  many  calls  as  they  could.  At  presei 
no  occasion  for  any  further  call.  It  was  very  desirable,  howe 
more  capital,  and  if  it  was  found  necessary  to  make  a  furthei 
possible  that  they  would  take  steps  to  do  so. 

A  Shareholder  remarked  that  the  directors  had  carried  t 
through  a  period  of  unparalleled  trials.  When  la^nt  the  share 
it  was  said  that  they  would  not  meet  again  till  they  met  in  tl 
that  they  would  be  wound  up  and  done  up— (a  laugh) — but 
they  had  met  that  day  under  more  favourable  circumstances 
them  could  have  expected,  and  for  this  result  the  directors 
thanked.  He  begged,  therefore,  to  move  the  cordial  thanks  of 
to  the  directors,  believing,  as  he  did,  that  the  shareholders  w 
hands,  and  the  probability  was  that  when  next  they  met  it  woi 
even  more  favourable  auspices  than  the  present. 

The  motion  was  unanimously  agreed  to,  and  a  vote  of  tl 
chairman  concluded  the  business. 


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625 


FINANCIAL  CORPORATFON,  LIxMITED. 
rdinary  meeting  of  the  shareholders  of  the  Financial  Corporation, 
ras  held  on  the  12th  April,  at  the  London  Tavern,  for  the  pnr- 
rrying  into  effect  the  amalgamation  of  this  company  with  the 
/omuiercial  Bank,  Limited,  pursuant  to  the  terms  and  conditions 
minary  agreement  for  the  purpose  entered  into  between  the 
►f  the  Oriental  Commercial  Bank,  Limited,  and  the  Financial 
►n,  Limited,  and,  in  order  thereto,  of  passing  a  resolution  of 
p  the  company  voluntarily,  and  taking  such  other  steps  as  might 
ie  ;  Mr.  James  Goodson  in  the  chair. 

ag  to  a  circidar  published  by  the  directors,  the  terms  of  the 
were  that  the  amalgamated  company  will  embrace  the  business 
ntal  Commercial  Company,  the  National  Financial  Company, 
nancial  Corporation,  and  will  be  carried  on  under  the  title  of 
ntal  Commercial  Bank,  Limited."  The  capital  of  the  amal- 
:)mpany  will  be    £3,000,000,  of  which  the  first  issue  will  be 

in  75,000  shares  of  £20  each,  £5  paid,  the  whole  of  the  first 
already  subscribed.  The  shareholders  of  the  Financial  Cor- 
re  to  be  entitled  to  one  share  in  the  new  company  for  each 
-es  now  held  in  the  corporation,  £2  paid  ;  and  each  of  the 
y  will  receive  in  the  new  company  will  be  credited,  in  the 
ice,  with  £4  paid.  The  remaining  £1  is  to  be  credited  as  the 
sr  assets  of  the  Financial  Corporation  are  realised  ;  or,  if  these 
iicient,  by  a  call  to  the  extent  of  the  deficiency,  whatever  it 
t  exceeding  68.  8d.  per  present  share.  It  is  not  contemplated  to 
all  on  the  shares  of  the  Oriental  Commercial  Bank,  Limited, 
£5  per  share  at  present  paid.  The  new  company  will  com. 
ness  with  a  reserve  fuud  of  £45,000,  being  at  the  rate  of  12s. 
n  which  the  holders  of  Financial  Corporation  shares  will  par- 
lally  with  the  other  shareholders.  A  dividend  at  the  rate  of 
.  per  anmim  will  be  paid  upon  the  shares  of  the  Financial  Cor- 
oin  the  31st  December  last  to  the  31st  March  ult.  No  dividends 
i,or  new  shares  exchanged,  for  any  Financial  Corporation  shares 
I  any  calls  shall  remain  unpaid,  but  all  such  shares  will  in  due 
)rfeited.  The  Oriental  Commercial  Bank,  Limited,  will  enter 
don  of  the  assets  and  securities,  and  take  upon  itself  all  the 
md  engagements  of  the  Fitiancial  Corporation  immediately  on 
tion  of  the  preliminary  agreement,  by  a  more  formal  legal  deed, 
course  of  preparation. 

irman  said,  although  the  articles  of  association  would  have 
labled  the  directors  to  have  carried  out  this  arrangement  with- 
the  shareholders  to  come  to  a  meeting  that  day,  yet  a  sense  of 
iduced  them  to  assemble  the  proprietors  for  the  purpose  of 

the  proposition.  The  proposition  to  be  submitted  was  the 
on  of  this  company  with  the  Oriental  Commercial  Bank  ;  and 
tie  could  understand  of  the  prevailing  views  of  the  proprietors, 
Ive  general  satisfaction.  With  this  company  the  National 
rould  be  incorporated,  and  he  believed  with  those  three  com- 
bined they  would  have  an  institution  deserving  the  support  of 
by  whom  he  had  no  doubt  it  would  be  admirably  received, 
^mpanies  with  small  paid-up  shares  generally  laboured,  as  they 
)ortunitie8  of  observing,  under  great  difiiculties  from  having 


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626  Financial  Corporation. 

I  sums  of  money  locked  up  which  they  were  unable  to  utilise  a 

!  pauies.     With  a  more  extended  sphere  they  would  have  the  i 

tages  they  were  entitled  to  expect.     The  directors  had,  there 

[  it  their  duty  to  encourage  an  amalgamation  with  another  coi 

an  opportunity  had  arisen,  and  it  would  bo  for  the  meeting  1 
proposition  submitted  to  them.  He  and  his  colleagues  e 
opinion  that  it  would  be  greatly  to  the  interests  of  this  compa 

i  have  been  necessary  very  shortly  to  have  made  a  call  of  £ 

'*  looking  to  the  depressed  state  of  the  financial  element,  the 

gone  down  to  their  present  price  under  the  influence  of  the  la 

I  tiio  directors  thought  it  imadvisable  to  continue  with   those 

tions,  especially  as   they  all  knew,  from  what  was  stated  i 

J-  meetiug,  a  sum  of  it60,000  was  locked  up,  and  would  be  lot 

considerable  period.  He  and  his  colleagues  were  anxious  i 
anything  from  the  proprietoi-s,  but  would  give  all  the  iuf 

■  might  be  disirable.     The  solicitor  was  present,  and  he  w< 

I  memorandum  of  agreement  in  extenso,  and  from  that  they  w 

exact  ix)sition  in  which  they  were  placed.  He  could  asst 
everything  had  been  done  to  protect  the  interests  of  the  pre 
he  believed,  would  give  their  general  support  to  the  arran 
solicitor  would  now  read  the  agreement  referred  to. 

The  solicitor  then  read  an  outline  of  the  basis  of  the  agree 

I  this  company  and  the  Oriental  Commercial  Bank. 

t  The  Chairman  said  he  would  move  the  following  resohi 

the  Financial  Corporation,  Limited,  shall  be  amalgamated  w 

♦  tal  Commercial  Bank,  Limited,  pui*suant  to  the  terms  and 

the  memorandum  of  agreement  dated  the  24th  of  March,  18 
by  certain  directors  on  the  side  of  the  bank,  and  of  the 
(Cheers.) 

!  Mr.  Bevan  said,  perhaps  the  solicitor  would  state  whet] 

ment  he  had  read  was  tlie  same  as  that  mentioned  in  the  ci 

,  shareholders.    He  did  not  remark  any  reference  to  the  limit 

I  The  solicitor  said  that  that  was  the  construction  put  ujx)! 

I  there  were  no  words  in  the  agreement  to  show  that  that  wj 

case. 

]  Mr.  Bevan  thought  it  of  vital  importance  that  they  shoul 

they  were  about  in  makinpf  themselves  over  to  the  Orienta 

.  Company.      They  should  know  that  under  no  circumstanc 

j  6s.  Sd.  per  shai-e  could  be  called  \ip.     It  might  turn  out  t 

would  be  called  up.  The  document  ought  to  set  forth  cle 
the  construction  intended.  He  did  not  come  there  at  aJ 
oppose  the  amalgamation.     On  the  contrary,  if  carried  or 

I  business-like  way,  he  approved  of  it.     (Cheers.)     He  mus 

toto  the  management  of  the  affairs  of  the    company    by  1 

J  There  seemed  to  have  been  two  businesses  going  on  at  the  b 

business  of  the  coinjmny,  the  other  the  business  of  the  d 
was  rather  pleased  to  hear  the  chairman  invite  discussio 
avail  himself  of  the  invitation,  and  ask  whether  a  considera 
was  given  to  Mr.  Thomas  Goodson  for  the  loan  of  £25,000  i 

^  Eastern  debentures   for  six    months.       The    ii:25,000    wo 

Eastern  debentures  were  deposited  with  the  National  Disco 
and  an  advance  of  £20,000  was  obtained.  If  the  directc 
business  in  this  sort  of  way,  it  was  obvious  their  business  m 
of  the  most  risky  possible  character.     He  would  further  asl 


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Financial  Corporation,  b27 

Qg  director  was  upon  a  very  large  number  of  bills  of 
company,  and  whether  £31,000  worth  of  securities 
ed  to  the  managing  director   and  another  director  in 

must  say  he  was  rather  surprised  to  hear  there  was 
a  further  call  of  an  iudetinite  amount.  He  was  not 
oppose  the  amalgajuation,  but  he  beJieved  the  utmost 
id  upon  to  pay  was  6^^.  Sd.  per  share, 
led  that  the  object  of  the  meetiug  was  to  adopt  or 
ation,  and  not  to  go  into  an  inquiry  as  to  the  state  of 
ration.  He  was  prepared  to  approve  of  the  amalg<i. 
tors  could  give  them  an  a^^surance  that  there  would  be 
65.  8</.  per  share. 

thought   it   desirable   that  the   amount  of   the  call 

understood. 

dford  (the  managing  director)  said  lie  would  try  to 
J9  that  had  been  put.  With  respect  to  the  personal 
)  Mr.  Thomas  Goodson,  some  few  months  since,  when 
jmpany,  to  whom  they  had  advanced  £50,000,  became 
>  the  chairman  and  told  him  he  was  afraid  they  had 
y  without  going  about  begging  and  endangeriDg  their 
e  chairman  for  his  assistiuice.  At  that  time  money 
cent.,  and  there  was  a  great  difficulty  in  getting  large 
rgency  he  aaked  Mr.  Goodson  if  he  could  help  the 
[lis  brother  had  a  large  sum  invested  in  Great  Eastern 

and  he  would  lend  those  securities  that  we  might 
leefc  our  bills.     The  whole  of  the  £2,000  commission 

and  discount,  was  paid  by  the  Kolling-Stock  Com- 
B  Financial  CJorporation.  (Cheers.)  It  was  paid  by 
Jompany  in  a  bill,  which  was  not  met,  because  they 
engagements,  but  it  did  not  follow  that  there  was  any- 
he  transaction.  (Hear,  hear.)  W  ith  respect  to  the 
anteed,  he  had  such  abundant  faith  in  the  Financial 
.ble  to  hold  its  own  that  he  had  given  his  personal 
ant  of  £31,000.  (Cheers.)  He  believed  that  to  be  a 
jisaction.  He  had  ouly  one  motive,  and  that  was  to 
and  prevent  the  necessity  of  calling  the  money  from 
ickets.  He  had  never  received  from  the  corporation 
-(loud  cheers)— nor  had  he  any  claim  upon  them,  ex- 

in  having  done  this.     (Cheers.) 

ed  if  Mr.  Bevan  had  been  a  director. 

d  rather  let  bygones  be  bygones,  as  he  did  not  believe 

come  here  for  the  purpose  of  damaging  the  character 
e  directors  would  not  shrink  from  any  question  he 
With  regard  to  the  agreement,  he  must  say  that  the 
i  negotiations  with  them,  and  after  many  meetings,  in 
)f  this  company  showed  the  greatest  anxiety  to  do  the 

their  shareholders,  the  terms  were  reduced  to  an 
IS  altered  from  time  to  time  as  discussions  arose,  and 
kiich  was  submitted  to  them  in  the  circular.  There 
11.  It  might  happen  that  6a.  8d.  would  be  the  call,  or 
at  it  would  be  13^.  id.  He  did  not  see  how  it  could 
,  aft  had  boon  mentioned.     The  directors  were  under 

securities  would  realise  20s.  in  tlie  pc»mid,  and  if  they 


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628         Chartered  Bank  of  Indian  Australia,  ami  Chi 

did,  that  would  cover  all  possible  deficiency.     He  should, 
sorry  to  deceive  them  ;  there  might  possibly  be  ;is.  4d.,  6s.  I 
138.  4d.     (Cheers.)     No  man  living  can  pos.sibly  tell  what  irn 
twelve  months.     (Cheers  and  laughter.) 

After  some  furtlier  remarks  by  shareholders,  the  resolution 
carried  unanimously. 

Resolutions  were  also  passed  to  wind  up  the  Financial 
voluntarily,  and  to  authorise  the  directors  to  take  all  the  ne 
for  the  purpose  of  cari*ying  the  amalgamation  into  effect. 

A  vote  of  thanks  was  passed  to  the  chairman  and  direcl 
proceedings  then  terminated. 


CHARTERED  BANK  OF  INDIA,  AUSTRALIA,  AND 

Thb  eleventh  ordinary  general  meeting  of  the  proprietors 
was  held  on  the  12th  April,  at  the  London  Tavern,  Bishopsgal 
A.  Mitchell,  M.P.,  in  the  chair. 

The  report  of  the  directors,  which  was  taken  as  read,  was  a 
"  The  general  balance-*iheet  for  the  year  ended  Slst  Decern 
presented  to  the  shareholders,  exhibits  a  net  profit  of  £101,82 
which  has  to  be  added  the  sum  of  £13,061.  14s.  4d.  carried  ; 
the  previous  year.  After  deducting  the  half-yearly  interim 
clared  on  6th  October  last,  amounting  to  £54,540,  there  re 
posable  balance  now  of  £63,340.  12s.  9<i.  The  directors  reg] 
feel  under  the  necessity  of  setting  aside  a  sum  of  £22,000  to  j 
doubtful  debts,  chiefly  attributable  to  the  recent  depreciati( 
produce  held  as  collateral  security.  Out  of  the  sum  of  £41 
remaining,  they  recommend  the  shareholders  to  declare  a  tliv 
half-year  ended  3l8t  December  last,  at  the  rate  of  10  per  cen 
free  of  income  tax ;  and  which,  with  the  previous  half-yearns 
dend,  will  amount  to  12^  per  cent,  for  the  whole  year.  . 
£1,349.  12s.  dd.  will  then  remain  to  be  carried  over  to  the  new 
the  last  annual  meeting,  the  directors  ref)orted  that  the  prej 
issue  of  7,800  new  shares  had  been  received ;  and  they  hav 
that  all  the  calls  in  furtherance  of  this  increase  of  the  ba 
raising  it  to  £800,000,  were  duly  paid  up — the  reserve  fund  no 
to  £105,000.  The  directors  consider  it  extremely  desirable  for 
of  the  bank  to  obtain  for  the  shareholders  the  right,  which  nc 
banks  and  all* companies  incorporated  by  act  of  parliament  app 
of  re-electing  immediately  all  the  directors  duly  qualified,  wh 
annually  by  rotation  ;  the  existing  charter  of  this  bank  restrii 
holders'  cboice  to  the  re-election  of  only  one  of  the  out-go: 
The  opportunity  of  this  application  to  the  Treasury  would  alsc 
to  solicit  that  the  directors  may  make  provisional  aj)pointme 
vacancy  in  their  number  during  the  year — such  occasional  ap] 
be  subject  to  confirmation  by  the  shareholders  at  the  next  ensi 
generjd  meeting.  They  projKise,  accordingly  to  apply  to  E 
Treasury  for  those  privileges ;  and  in  terms  of  the  deed  of  se 
extraordinary  general  meetings  of  the  shareholders  must  sai 
plication.  After  dispatch,  therefore,  of  the  business  of 
li  eeting  this  day,  it  will  be  constituted  an  extraordinary  one  f 
ol  jects  indicated.  Under  clause  84  of  the  deed  of  settlement, 
who  now  retire  by  rotation  are  but  two — ]VIr.  W.  S.  Lindsa 


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artered  Bank  of  India,  Australia^  and  China.         629 

Macnanghten — and,  only  one  being  immediately  re-eligible, 
ghten  offers  himself  to  the  choice  of  the  shareholders.  Mr. 
caster  and  Mr.  Joseph  R.  Morrison,  who  went  out  of  office  last 
in  candidates  for  the  direction.  The  auditors,  Mr.  Alderman 
Ir.  Jonathan  Thori>e,now  complete  their  annuad  term  of  office, 
themselves  for  re-election." 

LIABIUTIES  AND   ASSETS,   31 8T  DECEMBER,    1864. 

It  paid  np  in  full 

Iu8  fund       

by  the   batik,  including  bills  payable,  notes  in 
money  ^deposited,  and  current  accoants 
,  net  balance  of  profit,  after  paying  all  current 
ectors' allowance,  income-tax,  &c 


£800,000     0 
105,000     0 

0 
0 

4.053,558     6 

9 

63,349   12 

9 

£5,021,907   19 

6 

Hon  in  hand,  and  cash  at  bankers',  at  the  head 

gencies        £799,328  19  6 

ecurities      281.090  10  9 

«,  including  bills  receivable  and  loans 3,907,056  3  7 

ses,  and  office  and  house  furniture  at  head  office 

s       34,432  5  8 


£5.021,907   19     6 


D   LOSS   ACOOITNT  FOB  THE  TEAR  ENDING  SlST  DECEMBER,    1864. 


?leventh  dividend,  dcclnred  this  day,  being  an 
:erim  dividend  for  the  half  year  to  30th  June  last, 
the  rate  of  15  per  cent,  per  annum  on  32,200 

ginal  shares  

ividend  of  16*.  per  share  on  7,800  new  shares  ... 
jalance  of  profits  at  this  date       


J  balance  brought  from  last  account 

y  net  profits  for  the  year  ending  this  day 


PROFIT  AND  LOSS— HKW  ACCJOUNT. 


0  amount  written  off  to  meet  bad  and  doubtful 

debts  

0   proposed  dividend  (twelfth)  for  the  last  half- 
year,  at  the  rare  of  10  per  cent,  per  annum 
0  balance  carried  forward  ..  


£48,300 
6.240 


63,349  12 


£117,889  12 

9 

£13,061   14 
104,827  18 

4 
5 

£117,889  12 

9 

£22.000     0 

40.000     0 
1.349  12 

0 

0 
9 

t 

t 

£63.349  12     9 


)i 


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630         Chartered  Bank  qf  India,  Audralia,  and  C 


Cr. 
1864. 

Dec.  31 — Bv  balance  brought  dowa 

1865. 
March  22— Bv  balance     


J  Tlie  Chairman,  in  moving  the  adoption  of  the  report,  ob 

''  needed  not  to  say  that  the  result  of  the  half-year  ending 

,  had  not  answered  the  expectations  which  had  been  held 

meeting.     The  crisis  in  England  had  then  only  commence<^ 

•  .  suited  in  enormous  failure  in  the  east,  and,  in  what  affected 
1*  more,  in  the  depreciation  of  Eiist  Indian  produce — tea,  sug 

jute — on  which  the  bank  held  security,  it  being  its  busine 

I  hypothecated  on  such  produce,  and  it  had  suffered  accoi 

failure  of  houses  by  whom  bills  were  drawn,  and  by  the  fall 

'  the  produce.     The  loss  of  £22,000  meutioned  in  the  report 

I  mated,  after  careful  examination  by  three  of  the  directors  n 

with  the  trade  of  the  east,  not  down  to  the  31st  December,  1 

March — (hear,  hear)— and  he  believed  that  it  waa  a  comp] 

the  loss  down  to  that  time.     What  further  losses  might  1 

!  could  not  say,  for  the  crisis  was  not  over ;  houses  connecte- 

were  still  falling,  but  he  could  say  positively  what  the  loss 

r  the  15th  March.     He  would  not  specially  and  by  name 

V  house  by  which  there  had  been  a  loss  ;  but  he  desired  to  n 

the  case  of  Mr.  John  Gladstone,  who  had  been  one  of  the  c 

bank,  there  had  not  been  a  loss  of  a  shilling  by  him.  (Hear. 

case  of  a  house  from  which  the  bank  had  bills  to  the  amo 

secured  on  produce,  the  debt  had  been  reduced  to  £10,000,  ai 

was  some  loss  on  the  produce  realised,  that  had  been  met 

of  the  bills,  who  had  paid  the  difference,  and  eventually 

would  be  sustained.     Another  serious  drawback  to  the  pr 

bank  in  the  last  six  mouths  was  the  high  Vidue  of  money, 

in  a  difference  to  the  bank  of  £20,000,  which  must  be  dedud 

'  and  thus  had  tended  to  reduce  the  dividend.     Nevertheless. 

state  of  the  times,  when  the  bank  was  enabled  to  pay  6n  the 

per  cent.,  it  was  not  so  very  bad.  (Hear.)     The  government 

by  the  bank,  amounting  to  £280,000,  had  been  taken  over  i 

,  actual  market  value,  but  other  securities  on  land,  buildings 

•  taken  over  at  their  cost,  although  they  coul«  I  be  realised  at  dcml 
There  was  property  which  had  been  acquired  at  Kurrachee 
Rangoon,  which  could  be  realised  at  a  handsome  profit.  Wi 
future,  the  directors  had  inculcated  caution  on  their  agents 
vances,  especially  on  cotton.  Speaking  his  i>ersonal  opinion 
that  any  week  might  bring  astatement  of  the  closeof  the  Amer 
would  be  followed  by  a  reduction  in  the  price  of  cotton  ;  bu 
his  personal  experience  in  the  case  of  linseed  and  other  B 
tions  during  the  Crimean  war,  he  believed  that  a  trade  like 
which  had  now  been  established  in  India,  would  continue  t 
supply.  As  regarded  the  position  of  the  branches  of  the  b 
not  suffered.     There  was  an  increiise  in  their  deposits,  an 

'  good  credit ;  so  that  looking  to  the  afiairs  of  the  bank  he  an 

•  nothing  but  prosperity.     (Hear,  hear.) 

Mr.  Bell,  a  director,  seconded  the  motion. 


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Oriental  Bank  Corjporathn,  631 

ns  from  shareholders, 

that,  unsolicited,  the  shareholders  had  last  year  raised 
the  directors  from  £2,500  to  £4,0t;0,  and  they  had 
The  only  reason  why  the  names  of  the  directors 
1  tlie  advertiseuieuts  of  the  bank  was  a  consideration 
was  no  objection  on  the  part  of  any  of  them  to  have 
i,  and  as  it  seemed  to  be  the  wish  of  the  meeting,  it 
ire.  There  was  no  intention  of  increasing  the  capital 
me  of  new  shares,  there  being  no  want  of  tapital. 
n  agreed  to,  as  were  resolutions  dechiriug  the  divi- 
retiring  director  and  electing  two  others,  and  re- elect- 
ten  made  special  for  the  purpose  of  authorising  the 
ipply  to  Her  Majesty's  Treasury  for  a  removal  of  the 
\A  of  the  deed  of  settlement,  by  which  the  shareholders 
lection  of  only  one  of  the  outgoing  directors  annually ; 
the  court  of  directors  to  fill  up  temporarily  any 
n  theii-  number,  subject  to  confirmation  by  the  shai'e- 
alf-yearly  general  meeting  ;  and  tor  the  purpose  of 
.  alterations  by  authorising  the  court  to  apply  for  and 
1  charter,  or  to  adopt  a  supplemental  deed  of  settle- 
>roval  of  Her  Majesty's  Treasury,  to  take  such  other 
sary. 

taken  to  the  second  clause,  authorising  the  temporary 
ctor,  and  an  amendment  against  was  proposed  ;  but 
I  was  put  to  the  meeting  and  carried  by  «55  to  11. 
e  of  thanks  the  business  concluded. 


ENTAL  BANK  CORPORATION. 

al  general  meeting  of  the  proprietors  of  the  above 
►n  the  20th  April  at  the  bank,  Threadneedle  Street ; 
rdon  in  the  chair, 
e  Stewart,  the  chief  manager,  read  the  following 

lent  of  affairs  and  balance-sheet  for  the  year  18G4, 
directors  for  the  information  of  their  co-proprietors, 
he  corporation  for  that  period  to  be  £20(5,089. 18^.  4c?. 
t  expenses,  and  providing  for  all  bad  and  doubtful 
of  8  per  cent,  for  the  half-year  ending  30th  June, 
bed  £100,800  of  the  profits,  leaving  £105,289. 18.^.  4(i. 
listribution,  out  of  which  it  is  now  proposed  to  pay 
I  of  6  per  cent.,  and  a  Ixmus  of  3  per  cent.,  making, 
aient,  a  distribution  of  profit  for  the  year  1864  equal 
capital  of  the  corporation.  Tlie  present  dividend 
to  £2  per  share,  will  be  paid,  free  of  income-tax, 
roximo,  at  the  oflice  of  the  corporation  ;  and  after 
been  provided  for,  there  will  remain  a  balance  of 
carried  to  the  credit  of  the  next  account.  The  con- 
uiiisBiouers  of  her  Majesty's  Treasury  having  been 
B  ftf  capital,  a  further  issue  of  £25  shares  was  made 


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632  Oriental  Bank  Corporation, 

on  the  20th  May  last,  and  the  same  were  allotted  to 
then  registered  on  the  books  of  the  corporation  in  the  p 
in   six.      These  shares  were  issued  at   a  preiniuin  of    i 

Ereinium  was  carried  to  the  credit  of  reserved  fund ;  ai 
ave  the  satisfaction  to  report  that  the  entire  amount  has 
up,  making  the  capital  of  the  corporation  £1,500,000,  and 
£444,000.  Tlie  operations  of  the  past  year  have  not  res 
ably  as  those  of  1803 ;  nevertheless,  having  regard  to  the 
commercial  and  monetary  affairs  dnring  the  period  un 
directors  have  gooil  reason  to  congratulate  the  sharehokl 
precaution  in  restricting  credits  and  limiting  business  j 
reducing  the  dividend,  hjis  prevented  much  actual  loss  wli: 
wise  have  arisen,  and  ha."?  diminished  tlie  prospective 
attaching  to  current  transactions  in  times  of  ditticulty.  T 
retire  by  rotation  are— Mr.  Gordon, Mr.  Mackenzie,  and  A 
being  eligible  for  re-election,  otfor  themselves  accordingly 
with  pleasure  recommend  the  proprietors  to  re-elect  them, 
the  duty  of  the  meeting  to  appoint  two  gentlemen  to  be 
year  18G5." 

The  Chairman,  after  declaring  a  dividend  in  accordance 
payable  on  the  1st  of  May,  said  :  Gentlemen, — When  i 
October  last  we  were  passing  through  the  first  stage  of 
tunately  turned  out  to  be  one  of  the  most  severe  and  dii 
til  at  has  occurred  for  many  years  in  commercial  and  u 
and  I  am  very  much  afraid  that  the  crisis  is  not  over, 
be  counteracted  by  the  extension  of  business  and  th 
given  to  the  general  tone  of  commercial  interest 
miuation  of  the  civil  war  in  America,  of  which 
now  to  be  some  prospect.  Be  that  as  it  may,  we 
that  mischief  waa  coming,  and  we  took  every  pre( 
power  to  restrict  our  credits,  and  to  limit  the  busin 
poration  both  here  and  abroad.  Like  our  neighbours,  i 
experience  some  losses,  but  I  am  happy  to  think  that  owii 
precautions  that  were  taken  we  have  sulfered  much  less 
wise  should  have  done.  As  a  prtx)f  that  these  are  not  me 
mention,  with  regard  to  four  of  the  largest  failures  wh 
place,  with  liabilities  amounting  in  the  aggregate  ti>  ab 
that  although  some  eighteen  months  ago  we  held  a  very  ] 
the  paper  T  do  not  think  we  are  likely  to  lose  a  thousand  ] 
immense  failures ;  and  notwithstanding  that  all  the  losses  h 
provided  for  we  declare  a  dividend  which  is  I  c<:)nsider  satis 
rate  of  16  per  cent,  per  annum.  In  addition  to  tlie  direct 
have  had  to  provide  for  I  cannot  overlook  the  indirect  e 
upon  our  profits  by  the  very  serious  competition  whic 
experiencing  at  the  most  important  seats  of  our  busin< 
readily  believe  this  when  I  tell  you,  for  instance,  that  \ 
presidency  of  Bombay  alone  there  were  some  two  or  t] 
only  one  bank,  and  some  four  or  five  bank  agenc 
at  the  present  moment  no  less  than  twenty-three  ban 
ing  agencies,  besides  ten  or  twelve  financijd  establial 
are  all  competing  with  us.  People  say  the  business  has 
it  has ;  but  with  such  competition  as  we  have  to  cont< 
holders  mayjeasily  imagine  that  the  margin  of  ^ofit  is  coi 
tailed.    However,  there  is  nothing  to  dishearten  us  in  these  t 


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fiental  Bank  Corporation.  633 

anection  which  we  possess,  with  our  large  means 
rcial  credit,  we  shall  be  able  to  maiutaiD  our 
w  comers.  In  the  circular  which  you  have  in 
3  made  to  the  issue  of  shares  which  to(jk  place 
ad  our  reserve  fund  are  now  res{>ectively  jLl  ,500,000 
stribution  of  the  new  shares  at  the  rate  of  one  new 
ihares  absorbs  8,400  shares,  leaving  a  balance  of 
)priated  at  the  discretion  of  the  court.  I  am  now 
3  1,200  shares  have  been  appropriated,  and  I  confi- 
Eip[>robation  of  the  course  which  has  been  pursued, 
as  created  a  fidelity  or  guarantee  fund,  which  was 
itributions  of  the  officers.  The  primary  object  of 
se  with  the  usual  mode  of  guarantee,  and  to  make 
own  guarantors ;  aud  a  second  object  was  to  com- 
idelity  fund  with  an  allowance  or  pension  fimd. 
he  staff  serving  in  all  climates  ;  sickness  and  death 
ihe  time  must  come  when  in  such  an  establishment 
r  the  claims  arising  from  such  contingencies.  We 
tine  those  two  funds  in  such  a  manner  as,  without 
,  to  make  the  provision  which  we  think  is  deservedly 
dered  by  our  estiblishment.  Occasionally,  at  our 
lirectors  have  been  urged  by  shareholders  to  take 
the  services  of  the  staff ;  and  although  I  think  it  ia 
re  with  the  executive  (who  are  alone  responsible) 
%'ith  the  economy  of  the  establishment,  we  have 
ishea  every  attention  in  our  power,  and  what  I  am 

a  proof  of  our  regard  for  the  welfare  of  our  clerks. 
r  amounts  to  a  considerable  sum,  but  it  is  still  iniwle- 
rpose  of  a  guarantee  and  an  allowance.  We  have, 
I  availing  ourselves  of  the  issue  of  the  shares  to 
out  any  great  sacrifice  on  your  part ;  for  had  we 
;s  among  the  proprietors  that  would  have  given 
3W  share  for  every  old  share,  which  at  the  present 
t  'Is,  per  share.  The  court  have,  therefore,  allotted 
arantee  fund  1,200  shares  at  the  same  price  at  which 

the  shareholders,  namely,  £45  per  share.  The 
[)unt^  to  upwards  of  £54,0<»0,  and  after  the  payment 
\\x\n  will  remain  at  its  credit.  Apart  from  the  effect 
miary  iK)int  of  view,  I  am  quite  certain  it  is  likely  to 
oral  effect.  It  associates  our  staff  indirectly  with 
areholdera,  and  it  will  induce  them  to  increase 
note  the  general  welfare  of  the  cr^rporation.  One 
lent  which  you  have  in  your  hands.  Let  me  first 
he  cash  deposits  bearing  interest.     Notwithstanding  ; 

oney  which  has  prevailed  during  the  last  twelve  or  \ 

we  have  never  altered  our  rates  of  interest,  always 
low  figure—  the  cash  deposits  show  a  slight  increase.  i 

lere  is  a  considerable  falling-off  in  the  amount  of 
ied  due  to  the  corporation— a  falling-off  of  upwards  j 

from  the   precautionary  measures   tidien  by   the  f 

iase  of  our  risks.     I  do  not  think  there  is  any  other 

presented  which  requires  any  comment  from  me.  j 

y  mention  in  terms  of  merited  eulogy  the  conduct  ;  , 

All  of  you  who  are  conversant  with  what  is  going 

r 
k. 


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G:U  Standard  Bank  of  British  South  Afrk 

on  in  India  and  China  must  be  aware  of  the  extraordinar 
have  recently  taken  place  in  those  countries.  The  manag 
requested  permission  to  go  there  in  order  that  he  might  i 
eyes  the  changes  which  had  taken  place,  and  introduce  8U« 
in  the  arrangements  as  circumstances  required.  He  left  h 
of  November;  he  visited  Bombay,  Ceylon,  Singapore,  I 
Shaughae,  and  on  his  way  back  he  had  an  opportunity  of  coi 
managers  of  some  of  the  branches  which  he  could  not  vis 
to  the  Peninsular  and  Oriental  Company,  he  returned  hom 
bringing  a  good  report  from  the  land,  and  I  doubt  not 
benetit  by  the  valuable  and  important  journey  which  he  n 
1  have  nothing  to  aild  beyond  moving  the  adoption  of 
accounts,  and  declaring  my  readiness  to  answer  any  qu 
cheers.) 

A  Shareholder  wished  to  know  what  amount  of  money 
had  lost  through  defaulting  clerks. 

The  Chairman  said  they  sustained  a  loss  of  £1,200  by  t 
in  Ceylon,  but  nothing  beyond  that. 

The  report  was  then  put  and  carried  unanimously. 

The  retiring  directors  were  afterwards  severally  ai 
re-elected,  and  after  some  other  routine  business  a  vote  o; 
chairman  closed  the  proceedings. 


STANDARD  BANK  OF  BRITISH  SOUTH  AFRIC. 

The  third  ordinary  meeting  of  the  proprietors  of  this  bf 
the  21st  of  April,  at  the  London  Tavern  ;  Mr.  John  Pater 
The  report  for  the  half-year  ending  the  31st  of  Deceml 
"  The  experience  of  the  past  year  has  satisfied  the  dii 
those  institutions  will  at  all  times  command  public  con 
their  prosperity  reserve  a  considerable  portion  from  tl 
whereby  speedily  to  produce  such  accumulated  fund  as  sh 
ample  guarantee  of  safety,  as  well  to  constituents  w 
Although,  therefore,  the  net  profits  from  the  business  ag 
the  rate  of  £12  per  cent,  per  annum,  the  directors  recoi 
more  than  about  two- thirds  thereof,  or  at  the  rate  of 
annum,  be  divided  ;  the  balance  to  be  carried  to  reserve  fun 
nexed  statement  of  accounts  it  will  be  seen  that  the  total  gr< 
company  for  the  half-year,  including  £30,640.  10s.  received 
new  shares,  and  £2,647.  7^.  6cf.  brouglit  forward  from  pre 
amount  to  £77,417.  16s.  5t/.,  and  after  payment  of  en 
making  provision  for  all  bad  and  doubtful  debts,  and  alio 
of  interest  on  all  bills  discounted  but  not  due,  there 
available  balance  of  £58,079.  4s.  \d.  for  disposal.  This  s\ 
recommend  should  be  applied  as  follows,  viz. : — To  divide 
prietors  at  the  rate  of  £8  per  cent,  per  annum  on  the 
their  respective  shares,  £17,862.  13s.  4rf.  ;  to  proportionate 
to  amalgamation  and  preliminary  expenses  acci^unt,  £2.1 
ireserve  fund,  £36,000. ;  to  balance  carried  forward  to  prof 
account,  subject  to  payment  of  income-tax,  and  remuuera 
and  auditors,  £2,009.  6s.  8(i. ;  total,  £58,079  45.  Id.  In 
the  articlea  of  association  two  of  the  directors,  viz.,  Alfi 


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d  Bank  of  British  South  Africa,  635  ' 

Ssq.,  retire  from  olSice  at  this  meeting,  and,  being 

nselves  for  re-election.    The  auditors  George  Harvey 

Y    Thurbum,  Esq.,  also   retire  from    office  a!i  this 

eligible    for   re-election,    they    oiler    themselves 

loving  the  adoption  of  the  report,  said  that  the  state- 
given  in  so  detailed  a  form  that  there  was  very  little 
irom  him.  The  directors  had  carefully  separated  the 
Qk  post  bills.  The  issue  of  notes  had  been  something 
,he  issue  of  bank  post  bills  £27,800.  On  the  issue  of 
tit  tax,  and  all  the  rest  was  proht,  so  that  taking  it  at 
ived  from  that  source  a  profit  of  £8,000  per  annum. 
t  bank  bills  the  profit  must  be  made  through  the 
pendent  upon  the  skill  of  the  manager.  No  doubt  a 
knager  might  make  a  considerable  sum  of  n^oney  for 
igh  the  means  of  bank  post  bills.  The  board  had 
;)ilitiea  on  deposit-s  and  current  accounts  from  the 
ler  amoxmted  to  £472,002,  and  the  latter  to  £o20,054. 
increased  during  the  last  half-year  so  much  as  could  i 

Ld  be  readily  understood  that  it  Wiis  not  likely  they 
est  allowed  for  them  was  only  6  per  cent.,  and  when 
5  at  the  rate  of  8  per  cent,  at  call.  It  was  gratifying 
id  kept  up  as  they  had  done.  One  or  two  of  the 
ate  had  been  withdrawn  in  order  to  realise  a  larger 

but  there  was    no    doubt    that,  considering    the 
money,   the  deposits  would  from  tliis  time  begin  to  i 

"he  profits  of  the  past  half-year  had  been  re- 
the  circumstance  that  the  charges  made  for 
and  stationery,  <fec.,  were  paid  on  the  Cape  colony 
I  year  at  Christmas,  and,  therefore,  the  pro|)ortion  of 
ve  fallen  upon  the  previous  half-year  was  charged  in 
mn  of  £2,600,  set  aside  at  the  last  half-year  to  meet 
kt  the  end  of  the  year  waa  amply  sufficient.  During 
ey  had  eanied  as  nearly  as  possible  12  per  cent,  on  ^ 

)  thought  a  very  fair  return.      (Hear,  hear.)     He 

at  the  Cape  of  Good  Hope  was  much  safer  than  it 
arts  of  the  world.  The  institution  which  they  took 
Bank  of  Port  Elizabeth,  during  the  15  years  of  it« 
e  bad  debts  exceeding  £1,000,  and  nothing  but  the 
n  the  part  of  the  manager  at  the  Cape  oould  lead 
us  lo68.  The  fact  was  that  in  the  small  towns  of  the 
he  circumstances  of  each  individual  were  very  well 
1  extent,  that  if  a  bill  were  presented  to  the  bank  for 
aes,  the  manager  oould  tell  at  a  glance  whether  it  was 
L  or  a  real  bona  fide  acceptance.     The  manager,  there-  ' 

any  paper  brought  to  him  with  the  greatest  certainty, 

possibility  of  loss  to  any  great  extent.     It  had  been  * 

;aDdard  Bank  was  risky  on  account  of  the  number  of  \ 

Ls  opinion  it  was  a  safe  bank  for  the  very  reason  that  it  j 

aes.      And   for  this   reason— they   never    heard   of  j 

lebts  in  small  towns,  where  the  circumstances  of 
cconamodation  were  well  known.    The  danger  which  *  : 

rs  in  large  towns,  where  parties  were  able  to  conceal  \  ; 

t  the  manager  oould  not  form  a  correct  judgment  re-  L 

4 


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636  Standard  Bank  of  British  South  A/ri 

epecting  them.  In  small  towns,  however,  nothing  but  th< 
petency  on  the  part  of  the  manager  could  lead  to  a  heavy  1 
in  two  or  three  large  towns  of  the  colony  that  they  were 
thing  like  risk,  and  then  the  risks  were  not  greater  than 
in  second  and  third  rate  towns  in  this  country.  He  wish( 
stand  distinctly  that  the  class  of  business  which  the 
transacted  was  a  perfectly  safe  and  sound  class  of  busir 
speculative  in  its  character  than  any  banking  business  w 
acquainted,  and  if  with  such  a  class  of  business  they  coi 
equal  to  12  per  cent,  he  thought  he  might  congratulate  boi 
and  himself  upon  the  value  of  the  property  which  they  p( 
hear.)  On  the  creilit  side  of  the  account  they  would  pei 
was  an  item  of  £9,000  on  account  of  unpaid  calls  not  rec< 
of  the  year,  which  arose  from  the  fact  that  the  call  wa»  < 
month  of  December,  and  very  little  time  elapsed  before 
accounts.  The  whole  of  that  amount  was  now  paid  with 
one  or  two  cases,  and  in  which  interest  at  the  rate  of 
charged  on  tlie  unpaid  call.  He  exjjlained  that  the  unpai 
call  was  due  from  a  large  shareholder,  and  the  board  hac 
it  their  duty  to  forfeit  the  shares,  although  it  was  in  theii 
He  did  not  know  that  the  accounts  required  further  ex] 
they  did  he  should  be  happy  to  afford  it  in  reply  to  q 
shareholders.  The  legislature  of  the  Cape  of  Gk)od 
passed  what  in  his  opinion  was  a  foolish  law,  by  which 
a  tax  was  imix)sed  upon  foreign  capital.  That  mig 
wrong  in  principle,  but  they  actually  taxed,  not  the 
the  nominal  capital  of  institutions  of  this  kind,  w 
be  right.  Now,  the  nominal  capital  of  this  company  was  £ 
was  no  necessity  for  its  being  so  large,  and  the  directors  we: 
commend  that  it  should  be  reduced  to  the  extent  of  reduci 
£25  share,  of  which  £10  should  be  paid  up,  or  in  other  wo 
up  capital  should  be  two-fifths,  and  the  liabilities  of  the  sh: 
fifths.  There  were  two  great  objects  to  be  secured  by  this 
first  place  it  would  be  a  saving  to  the  institution,  and  avoid  \ 
government  upon  it  to  something  like  the  amount  of  £750, 
lievetjie  shareholders  from  any  responsibility  to  the  pub 
Tvould  be  a  fair  responsibility.  It  would  readily  be  percc 
shares  having  only  £25  paid  up  was  practically  to  place  th 
the  position  of  shareholders  in  an  unlimited  liability  com]: 
now  proposed  was  to  limit  the  liability  of  each  sharehold 
would  give  still  greater  security  to  the  public  than  wa? 
was  called  the  chartered  companies,  which  simply  rem 
holders  responsible  to  the  extent  of  double  the  an 
capital ;  whereas  it  waa  proposed  that  the  shareho 
responsible  to  the  extent  of  three-fifths  of  the  nom 
stead  of  half,  as  in  the  other  case ;  besides  which, 
nominal  value  of  the  shares  they  would  probably  largi 
number  of  their  shareholders,  and  thus  prevent  the  fluctua 
of  shares,  which  was  always  a  matter  of  complaint,  and  wh 
desirable  to  prevent.  In  order  to  carry  the  measure  ii 
necessary  to  re- register  the  company,  because,  unfortunate!; 
of  an  omission  in  the  statute,  which  no  doubt  would  be  re 
permission  was  given  to  increase  the  nominal  value  of  any 
was  given  to  reduce  it,  which  could  only  be  done  by  makii 


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ird  Bank  of  British  South  Africa.  637 

e-registering  it.  The  alteration  in  this  case  wa«  very 
ed  to  re-register  the  company  under  the  title  of  the 
itish  Africa,  to  pay  oft*  all  liabilities,  to  absorb  tliis 
Ty  to  take  back  the  present  shares,  handing  the  share- 
es,  with  £10  paid  up  for  every  single  share  they  now 
I.  He  trusted  that  these  views  would  commend  them- 
;,  and,  if  so,  the  directors  would  lose  no  time  in  taking 

carry  the  proposed  change  into  efl'ect.     He  concluded 
on  of  the  report, 
inded  the  motion, 
ion, 

that  the  Board  of  Trade  would  refuse  to  re-regis- 
fie  simple  application  of  the  directors.  If,  however, 
at  it  was  the  wish  of  the  shareholders,  tliey  would 
.1  the  board  wanted  to  do  that  day  was  to  obtain  au 

in  favour  of  the  propr^sition,  and  if  it  was  obtaine<i 

be  sent  to  the  shareholders  individually,  and  their 
the  proposed  change  obtained,  the  result,  of  course, 
general  expression  of  opinion  by  the  shareholders, 
lat  if  the  present  company  were  woundup  to-morrow, 
uld  get  some  £2  or  £3  more  than  his  £25.  The 
any  in  April  were  £20,000,  and  the  reserve  fund  was 
■e  would  be  at  least  £40,000  to  divide  The  board 
th  respect  to  what  would  be  done  in  the  event  of  a 
reholders  only  objecting  to  the  alteration,  though  he 
that  any  objection  would  be  offered  to  a  course  which 
vantageous  to  the  shareholders.  (Hear,  hear.)  In 
stion,  he  added  that  the  shareholders,  both  in  this 
ipe,  would  have  each  about  three  weeks  to  consider 

after  the  letter  asking   for   their  ansent  had  been 

dered  the  reduction  of  the  nominal  capital  a  most 
i  stated  that  the  present  high  nominal  amount  of  the 
revent  small  investors  from  entering  the  company, 
s  been  obliged  to  pass  over  this  company  when  asked 
ments,  on  account  of  the  high  nominal  shares  as 
aid-up  capital.  At  the  present  nominal  value  few 
jn  100  shares.  He  suggested  whether  £50  nominal 
tip  would  not  be  better  than  £25  shares  with  £10 

Led  that  the  matter  had  been  fully  considered,  and, 
[)een  found  that  the  two  African  banks  which  en- 
snce,  and  consequently  in  which  the  largest  amount 
d,  were  both  institutions  in  which  the  proportion  of 
ipital  was  as  three-fifths  to  two-hfths. 
yil  the  attention  of  the  board  to  the  sum  of  £2,009 
I  forward,  subject  to  the  payment  of  income-tax  and 
directors  and  auditors,  and  inquired  whether  the 
le  £1,000  of  the  £1,200  voted  at  the  last  meeting  for 
ciders  might  direct  1 

I  that  the  board  certainly  understood  that  it  was 
luneration,  and  they  had  taken  it,  but  they  were  most 
anxmeration  should  be  voted  yearly  by  the  share- 


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638 


tSouth  Eastern  Banking  Company, 


holders,  and  an  opportunity  would  be  given  to  submit  i 
question  at  that  meeting. 

In  reply  to  Mr.  Webster, 

The  Chairman  stated  that  the  preliminary  expenses,  wl 
originally,  had  been  reduced  to  £1,700,  and  that  althougl 
given  as  the  time  for  paying  it  ofi'  in  annual  iustaimeni 
tended  paying  it  off  in  less  time. 

The  report  was  then  put,  and  carrie<l  unanimously. 

The  Chairman,  in  moving  the  adoption  of  the  divide: 
alluded  to  the  fact  that  the  profits  realised  in  the  Cape 
year  had  not  been  so  large  as  usual,  from  the  simple  li 
in  every  other  part  of  the  world  money  had  been  extren 
Cape  it  had  been  extremely  cheap,  and,  consequently,  th 
earned  from  3  to  4  per  cent,  less  than  previous  years. 

The  motion  having  been  adopted, 

Mr.  Bale  moved,  and  Mr.  Sprague  seoondod,  the  re 
Paterson  and  Mr.  Jarvis,  the  retiring  directors,  who  wer 
elected. 

After  a  short  discussion,  the  sum  of  £2,000  a  year  w 
remuneration  of  the  directors. 

The  auditors  were  then  re-elected,  and  £50  each  awa 
their  remuneration. 

On  the  motion  (»f  Mr.  Whitford,  seconded  by  Mr.  M*Ror 
resolution  was  carried  unanimously  : — "  That  the  directs: 
to  take  tlie  necessary  stejis  to  register  the  new  company 
and  title  of  the  Standard  Bank  of  British  Africa,  Limitec 
of  £1,000,000,  in  40,000  shares,  of  £25  each,  and  to  take  s 
steps  for  the  passing  of  this  company  into  such  new  oompj 

Cordial  votes  of  thanks  to  the  managers  and  directors  ii 
on  the  London  board,  were  accorded  by  the  meeting,  an 
pliment  to  the  chairman  concluded  the  proceedings. 


SOUTH  EASTERN  BANKING   COMPANY,  L 

An  exbraordinary  general  meeting  of  the  shareholders  i 
was  held  on  the  2ist  April,  at  the  offices,  60,  Graceohurcl 
purpose  of  considering  the  following  resohition  : — ^*  That 
company  be  changed,  and  that  in  lieu  of  South  Eastern  Ba 
Limited,  the  name  of  this  company  shall  be  English  Jo 
Limited," — Mr.  Lawrie  in  the  chair. 

The  Chairman  said  he  was  sorry  to  trouble  the  shareh 
the  business  before  them  was  a  formal  matter ;  but  it  wa 
they  should  attend,  and  not  the  fault  of  the  directors 
meetings  sanctioning  the  change  of  name  to  that  of  the  Con 
Stock  Bank  there  had  been  a  correspondence  with  the 
whose  sanction  was  required,  on  the  subject. 

Mr.  VV.  Walter,  the  secretary,  read  the  correspondence  i 
which  it  appeared  that  the  London  and  County  Bank  obje( 
of  the  bank  as  previously  sanctioned  by  the  shareholders, 
of  the  Counties  Joint- Stock  Banking  Company,  on  the  | 
name  was  similar,  and  that  their  bank  was  known  in  the  £ 
clearing«house  as  the  Counties  Bank,  and  on  other  ground 


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Vrmiii  Fmicier  and  Mobilitfr  of  England, 


699 


©  T^ricraa  objectioua,  but  tho  Board  of  Trade  regretted  that  it 
motion  the  change  of  name  as  propoRed,  atfttiug  that  it  was 
LOfi  of  Livw,  hut  one  of  liiflcretion,   which  rested  with  their 

man  pbtterved  Uiat  tmder  thoite  circumstnnc^ea  they  oould  do 
e.  The  next  oourao  waa  to  st^lect  »oiiie  other  name  for  con. 
A  diiBcuanioii,  Before  aiihwiitling  the  name  now  proiHjt»e<l  the 
ule  had  stated  that  they  wo^ild  Haiiciiou  ihti  iiaiue  if  approved 
ireholdect.  lie  then  moved  a  reeoiotioti  that  the  uame  of  tho 
eliauged  to  that  of  the  Eugiish  Joint- Stock  Bank,  Limited. 
an^lee  aeeonded  the  motion,  which  woa  unazjioioualj  adapted. 
tea  that  Sir  William  RuBseli^  Bart,,  M.P.^  had  jiiBt  been 
Mtor  of  the  bank. 

thaukB  wafi  passed  to  the  chairmtD,  and  the  meeting  adjourned 
h. 


ONCIER  AND  MOBILIER  OF  Elfl^GLAND,  LIMITED. 

qdiiaI  meeting  of  this  ootnpany  waa  held  on  the  20th  of  Aprxl, 
ti  Tavern ;  the  Right  Hon.  J.  S,  Wortley  in  the  chair. 
ary  (Mr.  J.  Lowe)  having  reivd  the  advertisement  calling  th/e 
"'  ^'.wing  reixirt  wor  taken  tm  read  :  — 

!,  from  aoth  Septeinbei',  18tWl,  to  8th  April,  1S05.    Br. ; 
ised,  i;4,(K)0,tHM>  in  20U,000  aharea,  £20  each  ;  to  capital 

\i\fm^  in  10U,Ol)0  Bhares,  i£20  each  ;  to  oapiUl  paid  tip, 
.,_,,  shares,  £5  each,  £219,835;  on  50,033  sharea,  £3.  10^, 
15.  lOrf.  (together  £415,1>50.  10«.)  ;  received  in  a^i Vance,  on 
natalroent  dae  10th  AprU^  on  56,033  shares,  £8,80^2 ;  less 
!vious  inatalmenta,  £loB;  to  bUhi  payable  and  dujidry  credi- 
ts. 10«,  7t/. ;  to  depositors,  loans,  &c.,  £654,476.  7«.  M  ;  to 
MB — balance  at  credit  of  this  account,  carried  down  (which 
,000,  amount  of  old  **  Credit  Mobilier  "  and  "  Credit  Foncier  *' 
i,  and  £160,290  received  for  premiums  on  carrying  o\it  amal- 
thn»te    coQipanies,    i'394,024.  16*.  4d.  j  to  guaranteea— City 

^,  d^c.,  and  sundry  liabilities,    per  eonlra,   £812,075-^ 

ra,  £43,345.  4^.  7^. ;  by  cash  on  depoait  of  call 

ule,  8CH:uritie^,  lo;um  on  aecurities,  and  sundry 

vj'i,  ihs.  \id,  ;  by  building,  office  furniture  and  fittings  ac* 

i.   *M. ;   by  preliminary  expenses,    £7,183.  16^.  9d. ;  by 

.     lebentures,    and    sundry    debits,    per    contra, 

.179,4.*.  Id. 

nut  from   September  30th,  1864,  to  April  8th, 

t  aside  for  reserve  fund,  carried  forward  below, 

^ide  for  dividend  reserve  fund,  carried  forward 

^^,  office  furniture  and  fittings  account,  amount 

*'' v^' I  iminary  expenses,  amount  written  off, 

[»er  share^  and  Ihjuus  ai  lOj.  per  share, 

.,     „    I  -,  £5  paid  (otjual  to  40  per  cent,  per 

T;  tt>   div;  a*.    p«r  share,  and    bonus   of  5^.  per 

:        '»nie»tax,     1         ,      i  sliarei^,  £3.  10j».  paid  (ei|ual  lo  40  por 

»,«>I^  10#.  (mateig  together  £71,;BB3.  lOf.)  )  to  iiieome^ia:^  on 


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640  Credit  Fonder  and  Mohilier  of  Englam 

above  dividend  and  bonus,  £1,799.  lis.  9rf. ;  to  balance  ub 
forward  below,  £;M,G0O.  10s.  7(i.— total,  £394,024.  16s. 
amount  brought  down,  being  net  balance  to  credit  of 
account  (which  includes  £40,000,  amount  of  old  "  Credit 
"  Credit  Foncier  "  reserve  funds,  and  £100,296  receive* 
on  carrying  out  amalgamation  of  these  companies),  aftc 
current  expenses,  advertising,  salaries,  and  all  expenses 
printing,  stationery,  directors'  allowances,  (kc,  <5jc.,  £394, 

"  Reserve  Fund. — Cr. :  By  amount  set  aside  this  date 
£200,000. 

**  Dividend  Reserve  Fund. — Cr. :  By  amount  set  aside  t] 
fund,  £70,000. 

"  Profit  and  Loss  New  Account. — Cr. :    By  amount 
brought  down,  £34,600.  10«.  Id. 

"  In  handing  to  the  shareholders  a  balance-sheet,  showii 
of  the  company's  affairs,  the  directors  have  to  congratulat 
results  of  the  half-year's  operations.  By  the  figures  show 
ment  annexed,  it  will  be  seen  that  the  great  exertions  mi 
past  half-year  have  not  been  without  commensurate  rpeult 
of  profit  and  loss  account  showing  a  net  sum  available,  f 
charges  and  expenses  during  the  past  half-year,  of  £394,0i 
will  be  seen,  however,  that  in  this  large  amount  is  incluc 
£40,000  received  from  the  old  Credit  Mobilier  and 
companies  (being  their  reserve  funds),  and  the  sum  of  £160, 
of  premiums  received  on  the  issue  of  the  new  shares  of 
making  together  a  sum  of  £200,296,  leaving,  therefore,  £1 
as  the  net  sum  earned  by  this  company  during  the  six  mon 
The  directors  have  had  imder  their  careful  consideration 
of  dealing  with  the  amount  at  their  disposal,  and  in  the  de 
they  have  arrived  they  have  especially  directed  their  atten 
the  company  on  a  firm  bai^is.  While  meeting  the  just  exj: 
shareholders  in  the  amount  of  the  dividend  which  the  direc 
should  be  declared  at  the  ensuing  meeting,  they  have  pro 
in  mind  that  there  is  no  way  so  sure  of  maintaining  and  \ 
scale  of  profits  as  that  of  commanding  public  confidence,  b 
of  a  large  reserve  fund ;  they,  therefore,  have  decided 
£200,000  to  that  purpose.  In  fixing  the  dividend  at  10s.  p 
£5,  and  5s.  per  share  on  the  £3.  10s.  paid,  equal  to  2( 
annum,  the  directors  believe  they  have  placed  it  at  such 
fairly  be  counted  upon  as  a  minimum  dividend ;  they  furtl 
that  in  every  half-year,  when  the  profits  will  admit  of  alarj 
such  increase  should  be  made  in  the  shape  of  a  bonus,  whic 
instance,  is  fixed  at  the  same  amount  as  the  divider 
a  distribution  equal  to  40  per  cent,  per  annum  on 
capital  paid  up.  To  further  show  their  great  de 
the  results  of  the  minimum  dividend  of  20  per  ce: 
being  always  maintained,  they  have  decided  to  for 
be  called  the  dividend  reserve  fund,  such  fund  to 
at  the  amount  necessary  to  pay  one  year's  dividend 
per  annum  on  the  capital  for  the  time  being  paid  up;  this 
the  paid-up  capital  of  £500,000,  viz.,  the  sum  of  £100,000 
the  directors  have,  out  of  the  profits  of  the  present  half-} 
sum  of  £70,000,  and  they  propose  to  complete  the  fun< 
earnings;   the  effect  of  this  will  be  practically  to  mak 


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Credit  I\)ncier  and  Mobilier  of  England, 


641 


)  per  centr  stock,  and  the  action  of  the  fund  will  be  as  followa, 

any  hulf-year  after  the  sum  necessary  for  one  year*»  dividend 

d  fiaid  up  \&  reache<l,  the  profits  exceed  20  per  cent,  per  annum, 

rovi^ion  for  reservesj  a  bonufi  will  be  paid,  at  such  a  rate  as 

\  think  it  prudent  t*>  recommend ;  but  shoul^lj  fRiui  auy  ©x- 

saiitie,  the  amount  of  profit  not  reacli  a  sum  sufficient  tfj  pay 

of  20  i>©r  cent,  per  aiimirn,  then  the  dividend  reserve  hind 

*  any  deficiency,  and  thua  increasc+d  stability  will  be  g:iveu  to 

alike  from  its  ample  reserved  resourcea,  as  well  ai»  from  tho 

eforehand  by  the  sharebolderB  of  their  minimum  dividend. 

11,  therefore,  be  used  to  ensure  the  dividend,  whiist  the  rei^erve 

available  for  any  extraordiaary  occasions  of  loss  or  otherwise, 

Ttipting  the  revenue  of  the  investor.     The  payment  of  the 

lend  and   bonus,  as  mentioned  in  the  balance-sheet  (equal 

40  i>er  cent,  per  annum),  will   absorb   £71,983.  10^.     The 

ther  have  decided  to  diflcharge  the  whole  of  the  amniiut  of  the 

i-xpensea  incurred  by  this  company,  viz.,  £7,183. 16^,  %L  ;  they 

well  to  write  off  the  itema  stancliug  to  the  debit  of  building, 

ire  and  fittings  account,  £8,457.  1^^  3d ,  and  there  will  i*iill 

1  of  £34,600,  105.  7d.  t*:*  be  carried  forward  to  the  next  half- 

During  the  pfwt  half-year  there  have  btien  no  spetJiol  events 

direct  your  attention  beyond  the  remarkable  change  in  the 

icy  from  the  rate  ruling  when  we  last  adihresseil  you,  nor  does 

ate  st>em  at  all  to  have  reached  its  lowest  point.     A  general 

to  pervatle  the  commercial  clasfies, which  in  a  great  measure  may 

to  the  apprehended  otjntingeucies  likely  to  ensue  from  a  sudden 

I  the  lamentable  American  war,  the  effect  of  which,  it  is  thought 

ill  derange  the  monetary  basis  of  the  whole  world.     It  is 

5  upon  what  ground  such  reasonera  argue,  except  uix>n  that 

ge*l,  that  the  requirement  of  gold  for  shipment,  in  exchange  for 

i  !>*?  «o  large  as  completely  to  disorgaidse  the  uioney  market ; 

I,  however,  dispel  much  of  what  must  be  call etl  the  instinctive 

oommercial  public,  and  particularly  that  {portion  of  it  having 

I  special  branch,  of  any  *  chimge  *  in  the  current  order  of 

tbough  the  state  of  affairs  be  chronically  ba#i,  and,  both 

d  oomraerciaUy,  unsound.     In  the  event  of  a  cessation  of 

tween  the  North  and  Soutli,  the  natural  conclusion  must  be 

lid  become  ejiormous  customers  to  this  country  and  Europe 

r  almoet  every  description  of  meoiufactured  articles.     The 

aved  to  be  comparatively  bare  of  supply,  from  the  high  rate 

g  customs  tariff,  as  well  as  the  rate  of  exchaDge,  which,  con- 

1  cf .  <iistiirbs  the  equilibrium  of  calculations  df  merchants  and 

t^j  the  S^i^uth,  it  is  a  known  fact,  though  not  always 

jLirtizins,  that  it  is  completely  destitute  of  what  may 

Inii  1-  of  iifo.     It  is  quite  an  open  question,  notwith- 

una-  rt?at  .^uma  will  be  drawn  for  on  this  country 

I \  ivuxn  t»i  ,  whetht^r  the  balance  wdl  not  be  eqmdized 

\i{  ff»r  ^*M.  lis  (iide,  even  if  a  totftl  sum  in  favour  of 

ri?.ii:hed.     That  the  feeling  of  doubt  and  de- 

"nce  in  trade  eiiHts,  is  proved  by  the  large 

;   tlie    market,  but  which  are  unable  to  find 

}ment ;  that,  however,  the  trade  of  the  country 

i*.  nhown  by  various  results,  such  us  the  Board  of 

M*ral  revenue  of  the  country,  and,  in  a  oertaiD  sens^. 


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642  Oredit  Fonder  and  Mohilier  of  Bfigh 

by  the  sums  the  public,  as  such,  have  available  for  inre 
there  is  every  reason  to  believe  arise  from  surplus  in< 
Foncier  and  Mobilier  of  England  has  within  its  sphen 
fact,  having  introduced  several  new  undertakings  to  tli 
every  ca«e  have  been  very  successful ly  subscribed,  and  j 
reason  to  believe  will  give  satisfactory  results  to  th 
directors  have  been  very  solicitous,  whilst  bearing  in  m 
results  necessary,  to  extend  the  influence  of  the  conipi 
happy  in  stating  their  efforts  have  not  been  made  in  vaij 
as  shareholders  and  supporters  many  amongst  the  elite 
and  financial  public,  the  result  being  daily  offers  of  vj 
an  extent  murh  greater  than  the  capital  and  present  : 
ceptance.  The  directors  have  no  doubt,  therefore,  tha 
profitable  business  will  not  be  wanting." 

The  Chairman,  in  moving  the  adoption  of  the  report, 
the  last  half-year's  working  fully  bore  out  the  stateir 
Although  they  had  only  arrived  at  the  end  of  the  first 
operation  of  the  company  in  its  amalgamat^xl  form,  the 
attended  it  he  thought  might  be  fairly  said  to  have  p 
pobition  which, as  a  commercial  institution,  was  second  i 
in  the  first  place,  congratulate  them  upon  the  result 
between  the  Credit  Foncier  and  the  Credit  Mobilier. 
companies  were  kept  separate.  Strictly  speaking,  ther 
tinctions  in  their  operation,  but  when  they  came  to 
country  it  became  the  opinion  of  the  directors,  which  i 
quently  sanctioned  by  that  of  the  shareholders,  that 
be  carried  on  with  equal  facility  if  they  were  amjdgr 
been  foimd  to  be  the  effect  of  the  amalgamation,  for  tl 
distinctive  character  in  each  company,  their  operations  w 
by  getting  rid  of  shadowy  distinctions,  and  they  had  be 
greater  unity  and  vigour  in  the  character  of  an  amal; 
This  company,  like  other  financial  companies,  had  no1 
difficulties — not  so  much  from  the  nature  of  the  businesj 
attributable  to  the  want  of  information  by  the  public 
of  these  companies.  The  commercial  world  was  not  wit 
any  more  than  any  other  classes  of  society.  They  were 
old  enough  to  remember  the  prejudices  which  at  first  e: 
joint-stock  companies  at  all,  and  what  alarm  was  creat 
ciple  was  first  introduced  into  banking,  and  the  still  g 
the  principle  of  limited  liability  was  introduced  int< 
commercial  men  would  now  refuse  to  admit  that  the  p 
liability  would  not  afford  a  greater  security  to  creditor 
tern  of  unlimited  liability.  On  what  ground,  then,  was  i 
be  a  prejudice  against  any  financijd  companies  ?  It 
were  new  in  this  country,  but  they  had  existed  in  oth« 
continent,  and  especially  in  Paris,  for  many  years  i 
success.  They  had  now  had  two  or  three  years'  experic 
country,  and  their  progress  and  results  had  undoubtec 
couraging,  and  there  was  every  reason  to  supjDose  that  1 
ducted  cautiously,  and  with  vigour  and  discretion,  take 
the  most  valuable  institutions  of  the  commercial  woi 
That  being  the  case,  why  should  financial  companies  h 
great  commercial  houses  in  Europe  were  nominally  pri> 
w©f©  ^w^ntially  c«rtmpani«i  fwrmed  either  by  the  jnnc 


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Cndii  F^tmer  ami  Mobilier  of  England, 


843 


dentity  of  fedLinge,  or  arisiug  out   of   family    oonnectioDs, 
Qcbes  in  every  cupital  of  Europe.     If  thoy  investigated  the 
je  great  private  capitalists,  who  ooDiiuctyd  tinancial  operationa 
ite,  tbey    would    tiud    that    tiiose    firnis   oonsistcd   of    F.Qiall 
limited  in  number,  but  not  as  regarded  liability.     There  waa, 
itthiug  in  the  nature'  of  com])ames  like  tlto  prescDt  calculatecl 
st.     From  those  general  topics  he  came  to  the  restdtn  of 
.  ioid  it  was  curious  enough  that  in.  some  minds — not  very 
m  Ilia  opinion — ^the  ability  of  such  a  amipany  to  pay  a  largft 
as  in  itself  a  cause  of  distrust.     If,  however,  tbey  had  ihd 
inquiring  into  the  dividends  of  the  large  houses  to  which  ho 
Jj  he  thought  they  woubl  iind  that  the  dividouds  of  thift  ooiu- 
loderate,  if  not  small,  in  cotnparisou  with  the  invjtits  derived  by 
ial  houses,  therefore  there  waa  nothing  to  excite  surprise  in  tho 
le  commercial  world  if  a  great  iinaucial  company  like  this  waii 
a  to  miJce  largo  profits.     At  all  event*,  it  waa  a  matter  of  con. 
on  the  face  of  tlie  bnlance- sheet  that  they  were  able  to  give 
Idens  a  banilsome  dividend.     (Cheers.)     True  it  wns  that  tliey 
given  them  more,  but  he  thought  they  would  agree  with  him 
mi  given  as  much  as  they  ought  in  prudenc«  and  discretion  to 
(Hear,  hear.)     For  althougli  the  prejudices  of  people  against 
mee  aa  this  were  unfouudexl  and  al>surd,  yet,  if  they  were  not 
rith  discretion  as  well  as  finnnesa  and  vigour,  undoubtetUy  they 
one  dangerous,  and  therefore  he  thought  tlmt  the  very  strongest 
wluch  a  society  like  this  C'Onld  stand  was  to  lay  by  such  a  strong 
d  aa  woTiid  give  the  public  every  confidence  in  the  stability  of 
J,  (Hear,  hear.)  With  that  view,  having  nearly  £4D0,0€O  to  deal 
laiideTed  that  the  aoimdest  policy  it  could  adopt  was  to  set  aside 
£200,000,  and  that  amount  they  woidd  perceive  had  been  carried 
mL     There  waa,  however,  another  mode  of  proceeding  which 
d,  not  ao  much  for  the  puqiose  of  increasing  the  reserve 
)  secure,  as  it  were,  something  like  a  regular  mininium  dividend 
aholdors.    That  was  a  mode  which  had  commended  itself  to  the 
**    r  believed  that  it  waa  new  to  the  commercial  world,  and  it  not 
lie  basis  of  the  reserve  fund,  but,  as  far  as  possible,  protected 
..^^;^js  against  any  falling  ofT  in  the  dividend.    They  h ml  in 
»d  forward  a  sum  of  £70,fKK)  to  a  fund  to  be  called  the  dividend 
nd,  the  operation  of  which  was  to  increase  the  polidity  of 
ahmemt,  and   to  protect  the  shareholders  from  any  sudden 
nf    dividend    in    oonscqueneo  of   any  unexpected   difficulty, 
if    htK^  ii   would  tend  to  limit  the  dividend  to  a  minimum 
wni.  m  an  investment,  and  whatever  excess  there  might  be, 
Mied  to    divide  it    in    tho  shapie  of    an    additional   bonus,  as 
one  upon  the  present  occaaion.     Without  pledging  themselves 
ount,  which  must  of  cotirse  depend  upon  circumstances 
t,  if  their  business  wa>$  of»nductetl  as  well  (without  pay- 
rticular  oompiimeut  to  the  bonrd  or  to  their  very  able  managing 
the  aliareholdera  wotild  be  protected  from  any  material  dim  in  u* 
ir  receipts  for  each  half-year.     He  did  not  propose  to  enter  into 
\  wrtih  respect  to  the  various  items  in  the  balancw-nheGt,  but  if 
'-jts  upon  wli'  1^  : '  '      !:   .    ■    '■':;--,  !■   .   V  'lation, 

-aguoB  wci  tions 

1.      rhe  board  invuea  inqiurVj  oiu  at  inc  sTini^  uma  it  waa 
they  fthnuld  not  pi  ess  their  inquiries  toe  far     8ecreey,  it 


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i 

'  644  Credit  Fonder  and  Mohilier  of  England 

I 

had  been  said,  was  the  very  essence  of  success  in  finance. 

*  that  length  it  was  manifest  that  it  would  be  impossible  fo 

house,  or  x>a'rtnership,  or  company,  to  gain  the  great  prol 
expected  from  the  directors  of  this  company  if  they  sliowec 
the  whole  world.  If  they  let  everybody  with  whom  th< 
exactly  how  they  dejdt,  they  would  soon  be  able  to  realise  u 

'  The  shareholders  must  have  a  certain  amoimt  of  contidenc 

Of  course  if  shareholders  were  not  satisfied  they  had  two  i 
might  either  sell  their  shares  or  displace  the  directors.  If, 
had  a^nfidence  in  the  management  of  the  company  by  the 
treated  them  not  to  push  their  inquiries  too  far.  They  w 
the  afiaira  of  a  company  like  this  on  which  inquiries  mig 
made,  and  on  such  points  the  fullest  information  would  bt 
would  perceive  by  the  report  that  they  had  made  great  pr< 
hoped  would  not  in  their  minds  excite  alarm  or  prejudice. 
Those  profits,  however,  must  to  some  extent  bo  considered  ex< 
derived  in  great  part  from  what  might  be  deemed  by  some 
source.  They  did  not  disguise  that  a  large  porticm  of  their  pro 
from  commissions  on  operations  of  rather  an  exceptional 
meant  bringing  out  companies  for  the  puq^ose  of  effecting  gi 
That  was  no  doubt  a  class  of  profits  which  formed  the  bull 
earned  in  the  course  of  the  hadf-year,  and  some  persons  the 
source  of  profit  could  not  continue.  He  could  not  say  thai 
to  that  conclusion  himself,  being  inclined  to  think  that  t 
joint- stock  operation  hml  not  yet  extended  itself  to  anythi 
extent,  notwithstanding  the  present  apathy  which  preva 
there  would  be  many  wholesome  legitimate  and  useful 
brought  out  by  their  nurture.  There  was  one  thing,  nan 
nursed  none  but  strong  babies,  whom  they  hoped  would  gro^ 
bodied  men.  (A  laugh.)  He  must,  however,  say  that  he  1 
to  the  time  when  in  addition  to  that  class  of  business  they 
more  regidar  everj^day  business ;  but  they  might  depend  \i\ 
would  do  no  business  whatever  upon  which  they  did  not  o1 

'^  He  saw  no  reason  why  they  could  not  combine  that  businei 

of  operations  more  exceptional,  perhaps,  but  on  which  they 
profits.  He  could  not  let  this  subject  pass  without  saying  t 
on  the  right  and  left  (the  deputy  governors)  as  well  as  IV 
managing  director,  have  distinguished  themselves  by  their 

^  the  talent  which  they  had  manifested  in  conducting  the 

company.  No  doubt  they  would  have  detractors,  whatever 
motives  which  animated  them,  but  he  felt  bound  to  bea: 
testimony  to  the  debt  of  gratitude  which  this  associatioi 
ability,  energy,  and  integrity  of  their  managing  director.  ] 
personal ly,  from  dai ly  attendance  at  the  ofiice,  of  the  unwearie 
untiring  energy  of  that  gentleman.  With  respect  to  the  op 
company,  all  he  could  say  was  that  there  was  every  proj 
would  be  able  to  carry  on  their  business  on  the  same  magn 
which  they  had  commenced.     He  hoped  that  shareholders  ^ 

I  away  with  the  idea  that  the  prices  of  shares,  as  quoted  in  tl 

anything  commensurate  witli  their  real  value.  In  conclusio 
that  the  board  had  been  devoted  to  the  business  of  tliecomp 
in  attendance,  and  energetic  and  industrious  in  conducting 

,  He  begged  to  move  that  the  balance-sheet  and  report  be  i 

.]  firmed,  and  adopted. 


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Fonder  and  Mobilier  of  England,  645 

i  the  motion.    He  was  perfectly  convinced  that  in  a 

find  this  company  one  of  the  greatest  commercial 

ntry. 

r  an  explanation  of  the  capital  account. 

reply,  stated  that  the  authorised  capital  was 
l2,000,000  only  had  been  subscribed  for ;  but  that 
ion  empowered  the  directors  to  issue  the  remaining 
Qsion  of  their  business  required  it. 
red  upon  what  principle  the  assets  were  calculated  ? 
kt  it  was  impossible  to  state  the  principle  upon  which 
►Iculated  without  disclosing  transactions  of  a  confi- 
posiug  the  business  of  other  people,  which  they  were 

He  hoped,  therefore,  the  meeting  would  be  oon- 
assurance  of  the  board,  that  the  securities  had  been 
they  were  of  a  most  unexceptionable  character,  and 
taken  in  every  instance  under  the  market  price. 

jht  the  directors  miglit  have  given  them  more  infor- 
L  often  asked  whether  the  Crtniit  Foncier  and  Mobi- 
Mxl  investment,  and  without  knowing  more  of  the 
of  the  company,  it  was  imix)ssible  to  answer  the 
d  in  the  balance-sheet  the  item  of  £812,076  in  the 
>es,  city  offices,  debentures,  <fec.  That  was  not  an 
rather  a  liability.  With  respect  to  tlie  item  bills 
lone  of  them  were  overdue.  [Mr.  Grant — Nunc.] 
so  large  an  item  as  £1,325,492  being  put  down  as 
[ties,  loans  on  securities,  and  sundry  debtors,  and 
»  be  expected  that  shareholders  should  ask  for  an 
n  three  times  the  amount  of  the  paid-up  capital, 
the  disastrous  investments  made  by  another  corn- 
shares.  It  was  true  that  the  item  might  be  all 
the  securities  consisted  in  great  part  of  shares  in 
lich  a  loss  arose,  such  a  state  of  affairs  would  not  be 
ough  it  was  true  they  had  uncalled  capital  of 
II  back  on.  The  shareholders  ought  to  have 
I,  even  when  a  large  dividend  was  being  put  into 
hairman  had  himself  told  them  that  much  of  the 
had  been  made  from  exceptional  sources,  and  he 
3rs  would  do  well  in  placing  a  portion  of  the  dividend 
apital.  He  could  not  shut  his  eyes  to  the  fact  that 
might  have  been  successful  in  their  operations  in 
k  companies,  the  time  might  arise  when  by  means  of 
y  might  sustain  great  loss.  They  were  like  share- 
>,  and  it  was  incumbent  upon  them  every  now  and 
[e  did  not  advocate  publisliing  all  their  affairs  at  a 
lis,  but  he  thought  that  a  committee  of  shareholders 
1  whom  the  general  body  had  entire  confidence,  to 
id  see  that  they  were  re^Jly  sound.  He  pointed  out 
lat  they  were  paying  interest  upon  at  least  £600,000, 
some  way  or  other.  He  complained  that  the  share- 
treated  with  fairness  by  the  managing  director, 
to  the  allotment  of  shares  in  companies  they  had 
while  the  Milan  Company's  shares,  which  were  at  a 


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646  Credit  Fomier  and  MohiUer  of  E,^land. 

p.en>ium,  conld  -*  >.  oMained  by  -y^ne^^^^^^^^^ 

and  managers,  the  M'l«*lf.I^°?^';^'^'eU  informed  that  the  j 
freely  allotted  to  ^if'^'^'^lv^Stoirn  the  shares  brought  < 
the  Exchangeconsxstent  y  retoed  to  deal      ^^^  ,^ 

ttn  Ihether  he U  not  cl^ged  J^---,i,,„,i,,,  i.  which 
This  led  to  a  mostacntnonioiw  personal  ^^  ^^^^ 

nor  and  the  two  deputy-governors  dei^na  i  ^^^  ^ 

Bti^matised  as  a  disgraceful  Pf'^.'^^^^r^.y  they  bore  the  hi 
held  a  stake  in  the  concern  of  4.2»  on'>^«^^    j  ^he  managing  . 
^ony  to  the  integrity  and  V<^^ov^\^\^^^^^,^i  »g^,t  the 
Mr.  Grant,  in  warn  »' 'l;^  Se  Xle  world  to  point 
had  been  ma*le  upon  l"™,  a«d  dehe.1  the  w  ^^  ^^^^  ^^^ 

spot  or  blemish  «i->n  ^'ll'^hts  name  but  it  was  done  from  n 

he  did  out  of  capnce  <=h*°g«  ^«  """^"^  Zi^<^  up  in  any  tra. 

n.otive  whatever    o'^X,%'^  thS  «  manager  of  this  oo 

doubtful  ^Y'^'f^-.^l^rr^Z^y,  he  had  made  enemies,  ai 
actinginthemterestsofthejW,  ^^^  ^^^  ^^  ^ 

not  be  worth  bf  salt  .1  he  haa  n    ,  ^^^  g^,p 

man,orclR3sof  men  began  to  s^^^^^^  ^^^.^^.^  ^^  1,^  ^ 
shareholders  might  w«lU>earousea^^  and  certainly  should  ooi 
because  he  had  <^'>"«^f  ^y  ^^Tto  persons  known  as  «st> 
opposed  to  the  aUotment  of  ^^^^^r^  «,  cheap  that  th 
stock  market  He  he  d  ''«  "J^«^'^^,'fi^,'te  should  retire,  he 
found  it  was  the  wish  "f*  'f  »''%^  "^'         ct  to  the  questions 

his  bow  to  them  »u»n^^**«'y-  v,^  char^toriHed  them  as  frivol 
person  who  had  attacked  lum,  he  0^^^^^^^  ^^.^ 

that  ha.1  that  gentleman  held  a  tunrnn  ^^.^^  .^  ^ 

never  have  «.«.k«l  the  board  to^vul^^^  t^         ^.^^^  ^ 
which  it  must  be  if  such  q«3^^'  ^^      («Hear,  hear," 
evident  to  every  one,  shmild  b«  Xlllra  who  might  desire  i 
For  the  satisfaction  of  other  «h«eWder8  wt^      g ^^  .^ , 

accoxmta,  he  wou  d,  l'"^;^''.;*^^!!  they  made  their  pre 
sarily  exj^jsing  the  manner  in  whictt  ui  y  ^^^^  .^^^^ 

while  their  doing  ,t  y"'  ^•^.^.^"'fXVot^d  at  once  know  he 
shareholders,  their  "'"^^.^^^  ',*?^th' t  n  a  very  short  tin 
were  made,  and  the  resu  t  would  be^^'^* ^^^  J^i,,  ,harel 
be  able  to  make  no  prohts  »*»•"•.  ^^^'^'l^ue^tions.  (Hear, 
port  the  directors  in  not  ^^^^'^f^±  ^'^^  to  make  a  , 
Mr.  Cave,  as  the  holder  "j^W  shares  vnshea 

KhltmirWherri'^S^^^ 
^antod^i^w  governor,  they  l^ked  aW^^^^^^ 

made  a  lar^e  fortune  for  hiiuiself,  as  *»«  P'^P?'^„^,  zr  .uj. 
makiuK  a  large  fortune  for  others,  and  be  beheved  li  th« 
Siat  plan,  H  would  turn  out  to  be  greatly  to  its  ^'«^\^ 
moTentire  confidence  in  «- soundn^  of  «>«J^f «? 
that  in  a  few  yeai-s  it  would  be  second  only  to  the  i>anit  oi 

^^rSharThllder  complaine<l  that  «-  Jirec tors' remunei^t 
Blaced  in  the  accounts  as  a  separate  item,  "><»  ~~  *". 
which  the  shares  in  companies  brought  out  by  this  insxi 

\ 

\ 

\ 

Digitized  by  VjOOQIC 


Credit  Fonder  and  Mohilier  of  England, 


647 


When  a  good  popular  undertaking  vas  bronglit  out  a  large 
if  the  shares  were  kept  back,  and  there  were  jwsitive  refusals 
in  some  instances  to  shareholders  of  the  Compaiiy,  while 
e  of  those  companies  which  were  not  favourably  received  by 
;,  the  whole  amount  of  shares  were  allotted  on  application.     He 

his  own  case  with  respect  to  the  Milan  Company  and  the 
Freehold  Land  and  Docks  Company,  and  inquired  why  it  was 
CIO  paid-up  shares  of  the  one  were  at  a  discount,  and  the  £5 
7\  premium. 

lairuian  said  that  he  w^as  quite  willing  to  state  the  amount  of 
ors'  remuneration  if  it  w;ks  desired.  (Cries  of  "  No,  no.")  He 
ned  that  it  was  not  usual  to  put  the  amount  in  the  balance-sheet 
rate  item,  but  it  wa.s  included  in  the  general  account ;  but  he 
lc  meeting  that  it  was  less  in  amount  thjin  the  directors  of  other 
;  of  a  similar  character  received.  With  respect  to  the  allotment 
in  the  Mdan  Improvement  Company,  he  was  bound  to  answer 
;ion,  because  he  happened  to   be    one  of  the  direct<^)rs  of  that 

He  must  say  he  never  regretted  anything  more  in  his  life  than 
er  in  which  these  shares  were  issued,  but  the  fact  was  it  was 
me  and  not  a  fault.  There  were  20,0(X)  shares  to  issue,  and 
ris  for  more  than  120,000,  and  they  were  further  emlxirrassed 
rve  of  6,000  being  kept  for  issue  among  the  Credit  Foncier 
[irs.     They  were  obliged  to  deal  with  them  as  they  could.     Every- 

applied  was  treated  in  the  same  way,  and  they  were  allotted 
to  the  average  which  was  struck 

7ick  said  that  the  one  principal  they  adopted  in  allotting  shares 
lot  them  for  investment,  and  not  to  such  persons  as  they  knew 
to  throw  them  upon  the  market  the  moment  they  were   at   a 

(Hear.) 
;e  complained  that  in  the  call  letter  there  was  a  statement  that 
\  call  was  met  the  shares  would  be  liable  to  be  forfeited,  whereas 
tides  of  .association  it  was  provided  that  they  should  only  be 
ith  interest. 

other  shareholders  tried  to  speak,  but  they  were  all  met  by  cricft 
he  meeting  having  become  very  impatient, 
f^er  to  Mr.  Davis, 

airman  stated  that  the  directors  did  not  charge  £10  per  cent, 
its  as  represented  by  share  premium. 

ratt  ma<le  some  observations  on  the  accounts,  contending  that 
!  riot  sufhciently  explanatory,  and  pointing  out  that,  as  they  paid 
i  year  for  premises  as  rent,  they  ought  not  to  be  charged  with 
>r  building  offices  and  furniture  account.  He  also  complained 
)reliminary  expenses  were  far  too  heavy,  and  that  theamalgama- 
not  been  carried  out  unanimously.  He  also  pointed  out  that  aft 
um  paid  on  the  new  issue  of  shaves  had  been  paid  by  the  share- 
o  the  company  itself,  the  dividend,  instead  of  being  40,  was  in 
ily  30  per  cent. 

lairman  said  that  the  observations  of  the  hon.  proprietor  went  to 
b  they  ought  to  have  divided  more,  but  as  what  was  proi>osed  to 
d  seemed  to  meet  with  the  acquiescence  of  the  shareholders,  he 
»t  enter  into  any  discussion  of  the  point.  They  had  beeffobUged  to 
ensive  alterations  in  their  premises  in  Comhill,  solely  on  account 
crease  of  their  buJ^inrss,  which  was  the  reason  why  the  item  in 


Digitized  by  VjOOQIC 


648 


Land  Mortgage  Bank  of  India, 


question  was  charged.  As  to  the  remuneration  of  the  dire 
ii350  a  year  each,  and  the  10  per  cent,  commission  did  not 
after  10  per  cent,  had  been  paid  to  the  shareholders. 

The  re^wrt  was  then  put  and  carried  unanimously. 

Mr.  Maynardand  Mr.  Ford  were  unanimously  re-elected  a 
company,  and  on  the  motion  of  a  shareholder,  seconded  by  I 
special  vote  of  thanks  was  given  to  the  managing  director,  f< 
energy,  and  integrity  he  had  displayed  in  conducting  the 
company. 

A  vote  of  thanks  was  also  given  to  the  secretary,  Mr. 
similar  compliment  to  the  chairman  and  directors  termin 
ceedings. 


_^ 


LAND  MORTGAGE  BANK  OF  INDIA,  LIMIT 

The  second  ordinary  general  meeting  of  the  shareholders  of  t 
Cr6  Jit  Foncier  Indien,  Limited,  was  held  on  the  19th  April,  j 
Tavern  ;  Mr.  S.  Laing  in  the  chair. 

The  advertisement  convening  the  meeting  having  been  rea 

The  following  report  was  taken  as  read  : — 

"  The  accounts  submitted, made  up  to  the  Slst  December,! 
actual  operations  over  eight  months  only,  which  show  a 
£12,288.  7«.  8d,  to  which  is  added  the  interest  earned  in 
March,  £10,051,  showing  a  sum  of  £22,939.  Is,  Sd., 
dividend,  <kc.  The  directors  therefore  recommend  that  i 
4s.  per  share  (free  of  income-tax)  being  5  per  cent,  or 
capital,  be  now  declared,  payable  on  and  after  the  1 
The  capital  in  India  on  Slst  March  amounted  to  £01 1,93 
which  £404,407  was  invested  on  mortgages  of  real  properby, 
on  government  securities,  at  an  average  rate  of  9  per  ceu 
applications  for  mortgage  loans  amounted,  by  last  advices,  \ 
of  which  £404,407  has  been  granted,  and  of  the  remainde 
sideration  a  large  amoimt  will  probably  be  accepted.  Grea 
been  used  in  making  these  advances,  aiid  the  apprised  valm 
perties  mortgaged  to  the  company  is  double  the  amount  actu 
upon  them .  Every  title  undergoes  the  rigid  scrutiny  of  the  ba 
and  standing  counnel  at  the  presi<lency  citiesj.  Each  prop 
fully  valued  l»y  inspects ir,  snb-a^ent,  or  othyr  competent 
the  dik'f  iiL^t'iitH  uiily  grant  the  loan  on  the  satisfactory 
of  the  iuvtwtigjitioijH  The  HcgititnUiini  Act,  now  in  fo 
out  Inilia,  also  att'unls  an  adiUtimial  seiiirity  to  the  mod 
cum^tany  is  now  tiriuly  e.Ktiiblislied,  and  its  investments 
snch  thiit  the  directors,  feel  Tiieiiiseh  l'H  jtit^titiLMl  in  anticipatii] 
aud  safe  business,  with  aiiumiliy  intreiu^in^  |irufits,  has  bet 
the  future.  The  di^eet(^^s  have,  in  accordance  with  the  pro 
art.iek'H  nf  iissociation,  tilled  uj)  the  vncaucy  eau^ed  by  the  do 
M.  Worm  a  by  the  eh^ctioii  of  his  bn>ther  and  partner,  Mr.  H 
Thy  diredorB  rucoiuuiend  the  ]iayinent  to  the  auditors  of  i 
annum  for  their  services  in  auditing  thu  accounts.  The  audit 
at  the  l.vai  ordinary  general  meeting,  Messrs.  J.  Hill  Willian: 
Glen,  otTer  themselves  for  re-election.'^ 


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ized  by  Google 


Latid  Mortgage  Bank  of  India. 


649 


Balanee'-Sheet,  31st  December,  1864. 

LIABILITIES. 

i  up,  £4  per  share  on  100,000  shares    ...     ...     .. 

capital 

le  and  drafts  in  transitu , 

ditors « .. 

loss  balance  at  credit  of  this  account    , 


ASSETS. 

[ndia,  viz.: — Invested  on  mortgages,  £306,007.  4s, ; 
a    government   secuiities   and    cash    at    bankers, 

.  lis.  bd,  

overnment  securities  in  London     

ikers  and  in  hand  in  London    

jeivable  on  debentures  subscribed  for    

tors      

ounts*  

premises.  No.  17,  Change  Alley,  cost    

gs  and  furniture  account,  London  and  India 


accounts — 

discount  sinking  fund  account 
charges  sinking  fund  account 
mission  sinking  fund  account 

lange  account    

J  charges 


Prqfit  and  Loss  Account,  Z\st  December,  1864. 

penses,  London  and  India,  viz. :— rent,  salaries,  adver- 
K>ks,  stationery,  printing,  directors*  remuneration,  &c. 

Tied  down         


f  5  per  cent,  on  paid-up  capital 
meet  current  expenses  to  31st  March 


credit  of  this  account,  30th  September,  1864 
ta,  from  30th  September  to  3l8t  December    ... 


ought  down       

med  in  India  to  31st  VLb^ 


£400,000  0 

257,710  0 

8.600  0 

1,410  15 

12.288  7 

0 
0 
0 

I 
8 

£680,009  2 

9 

£424.626  15  6 

60,000  0  0 

41,078  14  4 

77,193  9  11 

7,916  0  10 

59,666  6  1 

8,740  19  2 

786  17  0 

£680,009  2 

9 

£41,560  0 
3,176  7 
3,197  17 
2,734  10 
8,997  10 

0 
3 

1 
10 
11 

£59.666  6 

i 

£3,097  15 

356  15 

12,288  7 

2 
6 

8 

£15,742  18 

4 

£20,000  0 
2,939  7 

0 

8 

£22,939  7 

8 

£7,975  4 
7,767  13 

7 
9 

£15.742  18 

4 

£12.288  7 
10,651  0 

8 
0 

£22.939  7 

8 

Digitized  by 


G( 


650  Luiui  MQrtgage  Bank  (^  India, 

The  Chairman,  in  moving  the  adoption  of  the  report,  co 
shareholders  that  the  company  waa  now  fairly  afloat.  Coi 
kind  were  necessarily  slower  in  their  operations  than  so 
mercial  enterprises,  and  they  naturally  looked  for  their  pre 
of  as  much  debenture  capital  as  they  could  raise  on  the 
share  capitid.  The  profit  of  the  system  was  beginning  tc 
The  Credit  Foncier  of  France  had  produced  very  success 
during  the  first  two  or  three  years  sifter  it  was  established 
little  way,  nor,  indeed,  did  it  make  anything  lilce  the  proj 
pauy  had  made.  The  situation  of  the  company,  as  stated 
waa  very  simple  and  very  short.  They  had  £400,000  sha 
up,  and  debentures  issued  up  to  December  31st  amountin 
Tlie  capital  which  they  had  in  India  amounted  on  the  31 1 
£011,000,  of  which  £404,000  were  invested  in  mortgages 
perty,  and  197,CKK)  in  government  securities.  The  two  elen 
in  a  company  of  this  kind  were  the  investment  of  money  i: 
power  of  raising  debenture  capital,  and  those  two  things  n 
currently,  because  until  they  saw  that  they  could  raise 
country  upon  debentures,  they  could  not  authorise  tJ 
India  to  extend  their  loans.  The  state  of  the  money  i 
rate  of  interest  ruling  so  excessively  high  as  it  had 
last  few  weeks  were  a  great  obstacle  in  the  way  of 
tures,  and  they  were  obliged  to  proceeil  very  cautic 
Tlie  ax)plication8  to  them  exceeded  £1,300,000  in  amc 
£404,000  had  been  granted.  The  delay,  ho>^ver,  which  w 
the  state  of  the  money  market  was  so  far  useful  that  \\ 
danger  of  their  going  too  fast  and  lending  money  without  si 
gatiou  of  securities.  Their  agents  in  India  were  most 
respect,  and  he  believed  the  directors  might  state  with  tl 
dence  that  the  money  invested  in  mortgages  in  India 
secure,  the  securities  being  more  than  ample,  and  unexcept 
character.  The  Registration  Act,  which  had  lately  passed 
add  also  to  the  security  of  similar  transactions  in  future, 
of  the  rate  of  interest  ruling  so  high  here  they  had  been  o 
a  corresponding  rise  in  India,  and  they  lent  nothing  now  t 
tnum  rate  of  ten  per  cent. ;  but  they  had  plenty  of  appLi 
vances  at  that  rate.  So  far  as  the  system  of  lending  mon 
adopted  the  problem  was  solved,  and  there  would  be  no  c 
tending  their  operations,  the  only  question  being  how  far  th 
the  system  of  raising  money  on  debentures  in  this  country 
state  was  this.  In  round  nimibers  they  had  raised  abo 
debentures,  only  £200,000  of  which  had  reached  India  up 
the  accounts,  and  the  remaining  £200,000  had  since  reachec 
invested.  With  the  £200,000  which  reached  India  first  an< 
capital  of  £400,000  paid  up  they  had  earned,  after  deductii 
about  six  per  cent,  per  annum,  and  the  £200,000  additi 
capital  would  return  them  at  least  1  per  cent,  extra  divid 
fore  they  had  a  share  capital  of  £400,000  and  debenture  cf 
at  the  rate  of  8  per  cent.,  and  if  they  had  £1,000,00( 
capital,  they  would  be  earning  10  per  cent.  The  largi 
of  debentures  they  could  place  the  more  they  would 
sound  security  afforded  in  the  class  of  investments  in  wl 
afl'orded  a  most  satisfastory  prospect  for  the  future, 
ahow  tha  rapid  progress  they  had  made,  he  might  men 


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Land  Mortgage  Bank  of  India. 


651 


amouDted  during  the  first  eight  months  of  their  operation 
)0,  but  during  the  next  three  inonthsthey  earned  £10,000,  and  now 
je  months  they  were  earning  £14,000.  (Hear,  hear.)  It  was  simply 
n  of  placing  debentures,  and  if  they  could  only  do  so,  they  would 
1  the  anticipations  that  might  have  been  formed  of  the  success  of 
any.  If  money  continued  at  the  present  low  rat«,  and  it  seemed 
do  so,  there  was  a  prospect  from  the  manner  in  which  debentures 
ig  taken  up  of  placing  a  very  large  amount.  The  shareholders 
serve  that  the  operatit)n  of  placing  debentures  was  a  progressive 
took  some  time  to  acquire  public  confidence,  but  once  they  had 
and  placed  their  debentures,  connections  grew  up,  and  it  became 
•re  easy  to  place  additional  capital  than  it  was  at  first.  As  far  as 
judge  the  company  was  now  fairly  afloat,  with  every  prospect  of 
[Hear,  hear.)  The  dividend  which  it  was  proposed  to  pay  was, 
3  per  cent,  up  to  the  close  of  the  year,  and  2  per  cent,  on  account 
ree  months  ending  March  31,  which  amounted  to  £5  per  cent, 
r.  The  only  question  was  whether  they  should  declare  a  divi- 
^3  per  cent,  and  wait  till  next  year  before  they  declared  the  in- 
ividend,  or  whether  they  should  give  it  at  once.  They  thought, 
that  considering  the  time  the  shareholders  had  been  out  of  their 
nd  the  large  amount  placed  in  their  hands  for  the  purposes  of 
nt,  it  would  be  better  to  give  it  at  once.  (Hear,  hcAr.)  He  exi)lained 
item  in  the  accounts  of  sundry  debtors,  £7,91G,  was  simply  interest 
on  mortgages,  and  not  debts  in  the  ordinary  sense  of  the  term, 
ly  the  pro  rata  of  accruing  payments  not  yet  fallen  due.  TJie 
undry  accounts  was  fully  explained  in  the  balance-sheet,  and 
of  nominal  balances,  which  accountants  found  it  necessary  to 
both  sides  of  the  account  in  order  to  balance  it  properly.  Their 
sition  was  that  they  owed  no  one  anything  excex>t  the  debenture 
md  were  not  owed  anything  except  what  was  due,  as  he  explained, 
ing  interest. 

•eholder  inquired  whether  the  item  of  £41,000  put  down  as  an 
to  balance  the  capital  paid  short  of  £257,000  on  the  debtor  side 
count. 

lairman  said  that  was  so,  and  explained  that  the  item  of  £11,000 
58  discount  sinking  fimd  account  practically  accumulated  at 
1  interest,  the  debt  being  discharged  in  annual  instalments, 
port  was  then  imanimously  adopted,  and  Messrs.  J.  Hill  Williams 
en  were  re-elected  auditors,  the  sum  of  £50  each  being  voted  as 
tion. 

[lairman  then  proposed  that  £1 ,000  per  annum  should  be  devoted 
erate  the  services  of  Mr.  W.  F.  Fitzwilliam  as  managing  director, 
ined  that  when  the  company  was  started,  that  gentleman  under- 
Llsome  journey  to  India,  and  had  been  of  the  greatest  service  to 
>any.  The  board  could  not  ask  a  gentleman  who  had  filled  so 
sition  in  the  Supreme  Council  of  India  to  become  a  manager,  but 
ing  director  his  services  would  be  most  valuable  to  the  company, 
tar.)  Of  course  it  was  obvious  that  if  IMr.  Fitzwilliam  did  not 
tfice  of  managing  director,  it  would  be  necessary  to  appoint  a 
and  probably  the  salary  required  by  a  competent  gentleman 
asiderably  exceed  the  amount  now  proposed  to  be  voted. 
)tion  was  unanimously  agreed  to,  and  Mr.  Fitzwilliam  returned 
jid  stated  that  he  should  not  only  use  his  infiuence,  but  make 


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652  Natal  Bank. 

\  every  personal  exertion  to  promote  the  interest  of  a  cc 

I  .  felt  confident  wonld  be  one  of  the  greatest  commercial  bu( 

(Cheers). 
,  A  special  vote  of  thanks  was  given  to  Mr.  Fitzwill 

I  exertions,  and  a  similar  compliment  to  the  chairman  a 

!  eluded  the  proceedings. 


NATAL  BANK. 

The  following  is  the  report  for  the  year  ending  31st  D< 
the  Natal  Bank,  read  and  approved  at  the  annual  meetii 
held  on  30th  January  la»t ;  J.  Henderson,  Esq.,  in  the  ch 
**  The  directors  have  pleasure  in  laying  before  the  proprie 
of  the  bank  for  the  past  year,  which,  it  will  be  seen,  exl 
proof  of  the  continued  increase  of  its  business  during  t 
net  disposable  profits  show  a  very  considerable  increase  o\ 
and  amount  to  £16,857.  73,  10(i.,  after  deduction  of  int 
interest  and  commission  to  other  banks,  and  payment  of 
Betting  aside  £5,034.  8s.  as  reserved  rebate  on  bills  i 
matured,  this  rebate  being  £1,834.  Ss.  in  excess  of  t 
at  the  end  of  the  previous  year.  Out  of  these  profi 
the  rate  of  16  per  cent,  per  annum  was  paid  fo 
ending  30th  Jime  last ;  and  the  directors  now  de 
dividend  for  the  half-year  ending  31st  December,  leav 
surplus  profits,  to  be  carried  to  the  credit  of  profit  a 
for  the  current  year  of  £4,89 1.  6s.  6d.  The  directors  th 
to  explain  that  they  have  deemed  it  prudent  (rather 
bonus  on  the  present  occasion)  to  carry  forward  the  who 
profits  in  this  manner,  as  a  precautionary  measiu*e,  rendei 
the  state  of  the  money  market  in  England,  and  the  amj 
which  is  already  felt  to  some  extent  in  this  colony.  Tt 
high  rates  of  interest  in  England  have  not  prevented  the 
increase  of  the  deposits  of  the  bank,  which  now  amount  tc 
against  £155,529.  15s.  Sd.  held  at  the  close  of  1863.  M 
and  Ferreira  retire  at  this  time  from  the  directorship,  in 
the  law  of  incorporation ;  and  Messrs.  Tumbull  and  Sy 
as  auditors  ;  but  all  are  eligible  for  re-election." 

Annual  General  Account  qf  the  Natal  Bank,  to  Blst  De 

Dr. 

Capital  stock— amount  paid  up...  ...         

Reserve  and  property  funds — amoant  set  aside  and  bank  pro- 
perty   ••.  ,«        ,„        ,,,        ,,,        ,„         ,,,        ,,, 

Notes  in  circulation  

Amounts  due  by  the  bank  on  deposit  and  current  accounts, 
including  interest  accrued,  rebate  on  bills  not  due,  &c... 

Net  profits  for  the  year 


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National  Bank  of  Imlia.  653 


unhand       £21,001     8    2 

es  and  bills  discounted,  and  other  debts 
tration,  exclusive  of  debts  abandoned  as 

270,836  19    7 

;r  banks       30,596  17  11 

amiture,      &c. — Pietermaritzburg,    and 

9,466    6  10 


£331,901   11     6 


xd  Loss  Account  for  the  year  ending  ^\at  December,  1864. 

vard  on  31st  December,  1864      £4,260  16     1 

the  year  ending  Slst  December,  1864. 
Less — Interest  and  commission  paid,  and 
14.  14 J.  llrf. ;  interest  on  fixed  deposits,  cal- 
December,  £12.035.  2s.  M. ;  deduct  balance 
on  3lHt  Decemlicr,  1863,  £2,909.  9j.  4^/.,— - 
.  Current  expenses,  £4,841.  4d;  directors* 
•  the  year  1803,  £400,  and  amount  written  off 
[  doubtful  debts,  £42.  8j.  lOd,  less  amounts 
9.  Is.  -5d.  Rebate  on  bills  not  matured  on 
1864,  £5,034.  8*.— £20,684.  3*.  3ci 12,596  11     9 


Net  profits  for  the  year  1864 £16,857     7  10 


Disposmoir  of  profits. 


-declared  25th  July,  1864,  for  the  half-year 
me,  1864,  at  16  per  cent,  per  annum, 
twentieth  dividend— -declared  30th  January, 
r-year  ending  Slst  December,  1864,  at  16  per 
,  £6,154.  2*.  Id.;  surplus  profits  carried  to 
5W  account,  £4,894.  6*.  6d £16,857    7  10 


ONAL  BANK  OF  INDIA,  LIMITED. 

8  report  of  the  directors  of  thia  bank  for  the  second 
Lftt  December,  1864 : — 

le  annexed  accounts  for  the  half-year  ending  the  31st 
ur  directors  have  pleasure  in  congratulating  the  share- 
ly  and  solid  progress  made  by  the  bank  during  that 
bed  state  of  the  monetary  and  commercial  atmosphere, 
•ing  the  last  six  months,  rendered  it  desirable  rather  to 
;ncl  the  bank*B  operations,  and  although,  therefore,  the 
reasonably  be  expected  to  be  reaped  from  the  branches, 
rived  only  to  a  limited  extent,  it  is  satisfactory  on  the 
T  directors  are  able  to  state  that  the  bank  has  enjoyed 
iy  from  bad  debts.  The  accounts  now  submitted,  show 
^  all  current  charges,  and  allowing  for  rebate  on  bills 
unted,  and  for  interest  due  to  the  public,  <fec.,  the  net 
El8.  84^9  9  6,  including  Rs.  1,260  11  0  brought  for- 
Lf-year's  accoiint.  Your  directors  recommend  that 
a  dividend  at  the  rate  of  six  per  cent,  per  annum, 

61 


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G64 


National  Batik  of  India, 


or  Rs.  7  4  per  share,  be  paid,  free  of  income-tax,  on  tl 
bauk,  as  from  time  to  time  received  duriug  the  half-yeai 
lacs  from  30th  June  to  15th  July,  and  on  twenty-live  lac! 
to  31st  December,  ISfA.  This  will  absorb  Rs.  72,500,  leavin 
as  to  the  disposal  of  which  your  directors  recommend  th 
carried  to  reserv^e  fund,  and  Rs.  2,380  9  6  to  next  half 
The  reserve  fund  will  then  stand  at  Rs.  25,000,  being  < 
the  whole  paid-up  capital  of  the  bank.  During  the  hi\lf- 
branches  have  been  opened  at  Bombay  and  London.  Owi 
death  of  the  agent  at  Bombay,  before  the  branch  had  bee 
tlie  agency  has  been  transferred,  as  a  temporary  measure, 
Bombay.  The  agency  will  shortly,  however,  be  put  on 
ing  under  the  management  of  IVIr.  Windram,  at  present 
Calcutta.  The  London  Agency  wai»  opened  on  the  12th  C 
gratifying  to  state  that  all  advices  from  Lcmdon  mention  t 
been  well  received.  The  intiuentiid  and  well-known  nam( 
London  board  will,  it  is  believed,  be  highly  acceptable  to  t 
and  will  be  of  great  service  in  advancing  the  interests 
England.  Your  directors  have  received  a  requisition  uu 
by  the  representatives  of  the  imp(jrtant  tea  planting  interef 
of  Cachar,  asking  that  the  bank  shoidd  establish  .a  branc 
Cachar  ;  to  this  request  your  directors  are  prepared  to  i 
certain  concessions,  now  under  the  consideration  of  gov 
obtained.  The  board  take  this  opportmiity  to  impress 
holders  the  necessity  for  giving  the  bank  the  benetitof  the 
and  influence — a  hearty  and  active  individual  interest  oi 
shareholders  being  esseutisdly  necessary  in  the  present  da 
petition  in  banking." 


General   Statement   and 


Balance-sheet     for 
December  t  1864. 


the    Jlalf-yt 


LIABILITIES. 

Deposits  received  from  the  public  on  current  and  fixed 
deposit  account,  Ks.  5,88,856  10  8  ;  bills  of  exchange  in 
circulation  not  bearing  interest,  Rs.  69,905  4  0  ;  total  due 
to  the  public     

Sundry  accounts,  being  rebate  on  bills  discounted  and  piur- 
chased,  and  iucome-tiix  on  net   profits  

Capital  paid  up.  Amount  received  on  10,000  shares  at  Rs.  250 
per  share,  Rs.  25.00,000  ;  reserve  fund,  Ks.  15,000  ; 
dividends  remaining  unpaid  Rs.  4,676  ;  balance  of  pn)fit  and 
loss  account  after  defraying  all  current  chargei, 
Rt.  84,889  9  6  ;  due  to  sharJholdert,     

Total  Hupcei 


^4    4    •^• 


ASSETS. 

Cnah  in  ha^d  nnd  with  bankers,  Rs.  1,91,275  11  9;  govern- 
iTu  Nt   MM  tidtics,  Rs.  1,42,071   15  4       

iK'itil  jjtiH  'i,  ^frttionery,  and  stamps         

iiilU  pthd  nod'fl  discounted,  Bills  of  exchange  purchased,  and 
lojihsniu!  udvanceson  government  paper  and  other  approved 
IttCUiilJca  

Total  Rupcej         •••     i 


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Dinner  to  ThonMS  Barney,  Eaq,  (i55 

\d  Loss  Account  for  the  half-year  ending  Z\st  Becanber^  1864. 

he  rare  of  6  per  cent,  per  annum  on  Rs.  15,00,000 
loth  July,  1861,  and  on  Rs.  25,00,000  from  15th 
it  December,  18G4,  Rs.  72,500  ;  amount  carried  to 
id,  Rs.  10,000;  balance  carried  forward  to  next 
5.2.3S9  9  6  84,889     9     « 


Total  Rupees        ...         84,889    9    6 

divided  profit  from  last  half-year  1,260  11     0 

the  half-year  ending  ,sist  December,  1864,  after 
11  current  charges,  deducting  income-tax  on  net 
ate  on  bills  discounted  and  purchased,  and 
d  and  due  to  customers  on  their  current  and 
t  accounts 83,628  14    6 


Total  Rupeei        ...        84,889    9    6 


DINNER  TO  THOMAS  BARNEY,  ESQ. 

iTAKY  dinner  was  recently  given  to  Thorn ns  Barney,  Esq.,  on 
nt  from  the  Stamford,  Spalding,  and  Boston  Bank.  The 
t  place  in  the  newly- erected  room  at  the  Peacock  Hotel, 
loflt  of  which  establishment  placed  on  the  table  a  i>rufii8ion  of 
L  as  is  seldom  witnessed  in  that  part  of  the  country. 
;y  gentlemen  sat  down.  The  chair  was  occupied  by  J.  C. 
^.,  of  Fish  toft  ;  and  amongst  those  present  were — The 
5ton,  tiie  Rev.  H.  AVatson,  rector  of  Langton ;  Dr.  Walker, 
Messra.  E.  Walker,  Clifton ;  J.  Rainey,  Si)ilsby  ;  H.  Mac- 

Mackinder,  Langton ;  W.  E.  Grantham,  Burgh ;  H.  C. 
arby  ;  J.  T.  Kirkby,  Partney;  H.  J.  Seels,  Wain  fleet ; 
d,  Hagnaby;  J.  Jessop  Bagg,  Swineshead ;  W.  Palethorpe, 
^iggal,  Dexthorpe;  S.  Dawson,  Skirbeck;  Thomas  Smith, 
leukarn,  Leake ;  N.  Webb,  T.  Wright,  J.  H.  Small,  R.  H. 
E.  RidlingtoD,  W.  H.  Bailes,  Harris,  Dingwall,  S.  Storr, 
J.,  Boston. 

lary  loyal  toasts  having  been  observed, 

nan,  in  brief  but  complimentary  terms,  proposed  "the  health 
y,"  which  was  enthusiastically  received, 
then,  in  a  highly  eulogistic  speech,  presented  Mr.  Barney,  in 

the  subscribers,  with  a  magnificent  silver  Epergne,  with 
id  dessert  stands.  The  gift  was  accompanied  with  an  address, 
lished  by  Messrs.  W^aterlow,  of  London.  With  the  address, 
lich  is  subjoined,  were  beautifidly  executed  coats  of  arms, 

I  as  Barney,  Esq.,  Manager  of  the  Stamford,  Spalding,  and 
ing  Compiuiy,  branches  at  Boston,  Spilsby,  A  If  or  d,  Burgh, 
t. 

J  severance  of  your  connection  with  this  town  and  neighbour- 
residence  amougst  us  of  sixteen  years,  has  been  thought  a 
unity,  by  many  of  your  friends  and  neighbours,  of  testifying, 
ic  and  permanent  manner,  their  sincere  regard  both  for  your 


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;  656  Dinner  to  Thomas  Barneyy  Esq. 

official  character  and  your  private  worth,  and  for  this  \ 
procured  the  accompanyiug  Epergne,  with  candelabra  ai 
which  they  now  have  the  gratification  of  oflferiiig  for  yo 
the  liope  that  while  it  serves  as  a  memorial  of  the  piist  it 
bond  of  imion  for  the  future,  perpetuating  both  in  you 
those  of  the  presenters  the  friendships  and  sympathies 
awakened  here. 

"  Among  the  list  of  names  appended  to  this  address  wil 
tants  of  the  principal  towns  and  villages  of  the  neighbot; 
representatives  of  almost  every  kind  of  profession  and  oc 
alike  are  anxious  to  bear  testimony  to  your  unfailing  c 
swerving  rectitude  in  every  transaction  in  which  they  ha^ 
with  you,  and  to  express  their  regret  that  so  lengthened 
one  so  satisfactory  to  all  concerned,  should  now  be  broug 

"  With  every  good  wish  for  the  future  welfare  of  your 
and  family ;  and  with  the  sincere  hope  that  the  gracioii 
deuce  may  attend  you,  we  remain  your  attached  friends  j 

"Boston,  April,  1865." 

Mr.  Barney,  who  on  rising  was  loudly  cheered,  in  a 
high  compliment,  spoke  as  follows  : — 1  can  never  siiHicieE 
placing  me  in  the  proud  position  I  this  day  occupy. 
,  mine  will  be  adequate  to  convey  the  deep  feeling  of  my 

sure  you  will  take  the  will  for  the  deed.     I  have  done  bi] 
'  such  spontaneous  kindness  at  your  hands.   I  have  merely  e 

charge  my  duty  in  a  straightforward,  honourable,  and  cons 
*  That  it  has  met  with  your  approval,  your  presence  here 

these  splendid  trophies,  very  abundantly  testify.  1  am  s 
with  me  that  for  business  to  be  satisfactory  it  should  be 
tageous,  and  I  am  happy  to  tell  you  that  I  have  been  abl 
account  of  my  stewardship  towards  the  bank,  as  facts  ai 
prove.  I  have  kept  the  profit  and  loss  right  by  zeal 
keeping  tolerably  free  from  bad  debts.  And  here  you  wi 
that  I  much  regret  the  loss  of  health  which  has  occurrec 
director  of  this  bank,  Mr.  O.  Edmunds,  sen.,  and  I  wish 
that,  coming  here  as  a  young  man,  it  was  to  his  sound 
ment  I  am  indebted  for  many  a  business  thought  which 
my  character.  You,  my  friends,  will  all  be  pleased  to  kno 
to  this  elegant  testimonial  I  am  to-day  receiving  at  yo 
received  from  the  bank  a  most  satisfactory  written  testim 
language  that  leaves  nothing  for  me  to  wish  or  desire  in 
ever  I  may  engage  my  time  in  (and  I  think  you  know  tl 
pose  I  could  be  happy  long  idle),  and  wherever  I  may 
my  tent,  these  documents,  including  the  splendid  book 
names,  will  be  ever  prized  most  highly,  and  handed  do^w 
heirlooms,  proving  beyond  doubt  that  the  county  of  Lincc 
generous  hearts  ever  ready  to  acknowledge  a  man's 
path  of  duty.  When  I  came  here,  more  than  16 
shares  of  the  bank  were  standing  at  about  par,  or  say  fi 
They  are  now  selling  for  upwards  of  £200.  (Applause.)  ] 
to  take  to  myself  a  credit  I  do  not  deserve ;  but  I  think  ; 
ledge  that  I  have  done  my  share  in  adding  to  the  prospe 
when  I  tell  you  that  when  I  first  came  here  there  wa 
fourth  of  the  business  I  am  now  leaving  my  successor.  ( 
J  these  most  yaluable  gifts  at  your  hands  with  pride  and  d< 


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The  Bank  of  England.  657 

;ly  01^  account  of  their  intrinsic  value  (which  is  great),  but 
ount  of  the  pleasurable  associations  they  will  serve  to  awaken, 
hade  of  this  noble  parish  church,  and  in  this  ancient  borough, 
life  commenced.  Here  my  children  have  been  bom  and  ray 
A  been  endeared  to  me  by  many  blessings  as  well  as  sad  recol- 
;  is  most  gratifying  to  me  to  find  that  I  can  count  so  many  sin- 
and  well-wishers.  My  study  has  been  to  conduct  this  business 
le  rivalry  with  my  opponents,  only  asking,  what  every  English- 
jserves,  a  fair  field  and  no  favour.  (Hear,  hear,  hear.)  I  see 
ate  friends  around  me,  and  many  from  a  distance  oome  over 
le  honour.  I  desire  to  thank  them  for  their  presence  here  this 
1  conclusion,  gentlemen,  in  the  name  of  Mrs.  Barney,  my 
myself,  I  desire  to  ofier  you  our  warmest  thanks  for  these 
rks  of  art,  and  the  good  wishes  contained  in  the  address.  To 
the  chairman,  the  vice-chairman,  the  committee,  and  the  hon. 
y  warmest  thanks  are  especially  due  for  the  valuable  time  they 
i  to  this  matter.  Permit  me,  before  I  sit  down,  to  take  up  the 
the  address,  and  to  wish  that  the  same  kind  hand  of  Providence 
lessed  my  labours,  may  shower  down  His  choicest  gifts  upor^ 
X  families,  and  in  saying  this  I  can  fill  a  bumper  and  drink 
I  happiness  to  you  all.  (Loud  cheers.) 
ring  is  a  copy  of  inscription  or  testimonial : — 
nas  Barney,  Esquire,  late  manager  at  Boston  of  the  Stamford, 
ad  Boston  Bauking  Company,  on  his  retirement  from  his 
\  other  friends  in  Boston,  Spilaby,  Alford,  Burgh,  Wainfleet, 
iirhood,  in  testimony  of  their  esteem  and  appreciation  of  his 
racter  as  a  man  of  business,  and  his  uniform  urbanity  and 
all  classes  during  the  sixteen  years  of  his  residence  among 

865." 


THE  BANK  OF  ENGLAND. 

J  court  held  at  the  Bank  of  England  on  the  4th  and  5th 
llowing  gentlemen  were  elected  governors  and  directors  of  the 
(  year  ensuing,  viz. : — 

GOVERNORS. 

Henry  Lancelot  Holland,  Esq.,  Crovemor. 
Thomas  Newman  Hunt,  Esq.,  Deputy- Governor. 

DIRECTORS. 


e  Berens,  Esq. 
ard  Campbell,  Esq. 
ary  Chapman,  Esq. 
ram  Crawford,  Esq. 
tton,  Esq. 
son  Currie,  Esq. 
uck  Greene,  Esq. 
rsdale  Grenfell,  Esq. 
cs  Gibbs,  Esq. 
ers  Gilliat,  Esq. 
ihim  Goschen,  Esq. 
mder  Guthrie^  Esq. 


Thomson  Hankey,  Esq. 
John  Benjamin  Heath,  Esq. 
Kirkman  Daniel  Hodgson,  Esq. 
John  Gellibrand  Hubbard,  Esq. 
Charles  Frederick  Huth,  Esq. 
A'fred  Latham,  Esq. 
Thomas  Ma.sterman,  Esq. 
James  Morris,  Esq. 
Sheffield  Neave,  Esq. 
George  Warde  Norman,  Esq. 
Edward  Howley  Palmer,  Esq, 
Cliflford  Wigram,  Esq. 


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4-     *^^    » 


CI    rr..    X 


Tins  rx^-:--.  i^i  :>^r,-rL^-irL  3-x.  r^-rL  : 
j,r'/*^M^r  ,*  T**-  <^-:  *..-  L*  *•»  '•:•  £l-  ••  .  ••  ?c-r 
t-.^'t*^  //f  £  J  •  *-i.  ",.  «n  iL>  i.-IaI  "*'  .  ••  ^'' irvs  L 
»    •//•'■  'A/j      T',^  -i-;.-'.:   i*   t..   '.^  ^1    T«-r  >Lxr^  *<i 

v'TT,';;^  t/j'r  £i  >  » -;i;ir»^  oj'  iLe  O.-Liinriiiai  Bank  ' 
h't^r*'A  of  £'Jh^  aiA  iff  furry  v-st  tue  aai-'L04iiidti*>n  o( 
tJ#"  t/'ifik  of  *»\*t>%r-%.  E.  L^u  laii,  of  Aiexaii«iriA,  ai 
^y/r/iro^rr^'ruJ,  fiijiiri^'ial,  aivl  monetanr  traasactions  betn 
t}»<r  rV/f,tif,*;nt,  aii'l  K^fvy/t,  The  direction  has  been  mi 
und  it  now  includes  the  namei  of  practical  men 
ii|ifMar>*  fJiHt  th«  fntHhlinhment  of  Messrs.  Landau  ai 
i4ii/in;if  in  aildition  to  itn  re^^ilar  banking  operationj^ 
an  ^'xt^'n^iv^'  f;onn<;ction  with  producers  and  exporters 
iitwt,\^tiuiiiU'A\  cMtablii^hmeutH  propose  liqoidatiiig  a 
tranwictionN  up  to  the  date  of  amalgamation. 


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>5D0N  AND  BRAZILIAN  BANK. 

riant  announcement  has  been  made  with  respect  to  the 
the  London  and  Brazilian  Bank,  Limited,  and  will 
at  considerable  rise  in  the  price  of  shares  : — 

"Loudon  and  Brazilian  Bank,   Limited, 

"2,   Old   Broad-street,   E.G., 

«  Loudon,  17th  April,  18C5. 
tors  have  much  satisfaction  in  iuforming  their  share- 
ive,  subject  to  their  a]>provjil,  concluded  a  proviiiional 
lessrs.  Maua  and  Co.,  for  an  amalgamation  of  the  large 
less,  including  the  privilege  of  is.sue  of  bank  notes  at 
(wario,  carried  on  by  that  firm  in  Brazil  and  the  River 
ness  hitherto  carried  on  by  this  bauk.  The  amalgama- 
by  means  of  the  incorix)ration  of  a  new  joint-stock 
iability,  having  a  nominal  capital  of  £5,000,000  sterling, 
£20  each,  one- half  of  which  is  to  be  paid  up.  Of  the 
000,  with  £10  per  share  paid  up,  will  be  allotted  to 
'o.,  in  exchange  for  cash  or  approvt^d  securities  to  that 
aaining  100,000  shares  will  be  placed  at  the  dis]x>sal  of 
)posed  amalgamation  will  take  effect  as  from  the  1st 
•  which  date  neither  of  the  two  banks  will  carry  on 
rn  account.  The  management  of  the  new  bank  will  he 
resent  board  of  directors  of  the  London  and  Brazilian 

Baron  de  Maua,  the  senior  partner  in  the  tirm  of 
!o.  The  directors  propose  to  call  together  their  share- 
late,  for  the  purpose  of  considering  the  mode  of  raising 
dwhich  will  form  the  contribution  of  this  bank  to  the 
:aking. — I  am,  Sir,  your  obedient  servant, 

"John  Beaton,  Secretary.'' 


DATION  OF  THE  OTTOMAN  BANK. 

lax  has  been  issued  with  regard  to  the  liquidation  of 

**  The  Ottoman  Bank  (in  liquidation),  London, 
«  4,  Bank  Buildings,  Lothbury,E.C., 
«  April  13. 
MsaaioD  of  the  distribution  in  January,  1864,  of  the 
;.  on  the  paid-up  capital  of  this  bauk  out  of  its  surplua 
intimated  that  there  were  still  some  few  further  assetfl 
ation,  which  they  expected  would  enable  them  to  make 
vLsion.     They  regret  that,  notwithstanding  their  best 
these  matters  are  still  unsettled,  and  they  have,  there- 
in making  a  further  payment  on  account,  of  £13,750, 
e  on  the  old  shares,  1«.  per  share  on  those  of  the  second 
rour  obedient  servant, 

"  Vi  ILLIAM  W.  Lakdeb,  Assistant  Secretary." 


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COMMERCIAL  BANK  CORPORATION  OF  INDIA 

EAST. 

The  following  is  from  the  report  of  the  directors  of  the  Con 
Corporation  of  India  and  the  East,  to  be  presented  at  th( 
meeting : — 

"  The  amount  received  up  to  the  31st  of  December  last  in 
new  capital  was  £355,590,  and  of  the  premiums  on  shai 
England  £91,282.  10s.  On  the  1st  January,  18C5,  the  b 
Commercial  Bank  of  India  was  transferred,  at  all  the  br 
Commercial  Bank  Corporation  ;  and  the  former  bank  now  < 
the  purpose  of  liquidation.  The  assets  and  liabilities  of  th 
Bank  of  India  have  been  taken  over  exactly  as  they  stood  on 
last.  The  capital  of  that  bank  was  £500,000 ;  the  new  capi 
paid  up,  will  be  £500,000 ;  making  the  total  capital  of  tl 
£1,000,000.  The  net  profits  of  the  year  1864,  after  writing 
bad  debts  up  to  the  31st  December,  were  £154,426.  lis.  4cl 
and  bonus  for  the  first  half  of  the  year  were  paid  to  the  si 
the  Commercial  Bank  of  India  in  Bombay,  amoimting 
and  a  dividend  has  since  been  paid  in  London  at  the  rate  c 
per  annum  on  the  whole  paid-up  capital  as  it  stood  on  the  3 
for  the  second  half  of  the  year,  amounting  to  39,925;  leai 
of  £69,501.  lis.  4rf.  The  directors  regret  to  report  that  b< 
have  taken  place  since  the  commencement  of  the  present  j 
losses  which  in  the  unsettled  state  of  the  produce  markets  i 
estimate  accurately ;  but  they  have  deemed  it  prudent  to 
the  entire  balance,  after  paying  the  above  dividends,  as  a 
them.  The  reserve  fund  of  the  Commercial  Bank  of  India 
the  Ist  of  January  amounted  to  £73,301;  and  the  premii 
allotted  in  London  already  stated,  £91,282.  10s. ;  amount  < 
the  31st  December,  £4,717,  10*. ;  making  the  reserve  fimd 
ration,  £169,:501.  In  addition  to  which  a  sum  of  £16,70 
been  transferred  to  the  corj>oration  by  the  Commercial  ] 
being  the  balance  standing  to  the  credit  of  the  insurance  aa 


ASIATIC  BANKING  CORPORATION. 


The  directors  of  the  Asiatic  Banking  Corporation  have  al 
first  report,  to  be  presented  at  the  meeting  on  the  4th  of  I 
that,  "  The  court  of  directors,  in  presenting  the  first  reporl 
sheet,  have  great  pleasiure  in  congratulating  their  co-propri( 
position  attained  by  the  bank  during  the  brief  period  th 
since  the  commencement  of  its  operations.  The  half-yeaj 
accounts  are  now  rendered,  and  during  which  period  a  porti 
existing  branches  of  the  bank  have  been  working,  represen 
least  favourable  season  of  tlie  year  in  India,  but  has  also  beei 
by  a  severe  monetary  crisis  in  this  country,  which  has  necessi 
cise  of  the  utmost  caution  in  conducting  the  business  of 
a  consequent  restriction  of  its  operations.  Notwithstandin 
backs,  the  net  profits,  after  deducting  all  chai'ges  up<»n  the  cu 
of  the  bank,  and  fully  providing  for  all  bad  and  doubtful 


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New  Mexican  Loan.  661 

.  This  sum  the  directors  propose  to  distribute  in  the 
,  viz.,  £37,500  by  a  dividend  at  the  rate  of  15  per  cent. 
X)  by  a  bonus  of  10a.  per  share,  equal  to  6  per  cent,  per 
ether  equal  to  20  per  cent,  per  annum  on  the  paid-up 
cember,  to  be  paid  to  the  proprietors  free  of  income-tax  ; 
n  liquidation  of  the  whole  of  the  preliminary  expenses ; 
I  to  the  reserve  fund,  which,  with  the  premiums  arising 
sue  of  new  shares,  will  then  amount  od  the  30th  of  June 
;  and  the  balance — say  £G.454.  128. 9d. — they  propose  to 
of  the  profit  and  loss  accoimt  for  the  current  year.  The 
>mmend  the  shareholders  to  authorise  them  to  declare 
nterim  dividend  half-yearly,  for  the  current  and  future 
r  deem  desirable,  pending  the  final  adjustment  of  the 


NEW  MEXICAN  LOAN. 

adensation  of  the  prospectus  issued  in  Paris  of  the  new 
it.  Loan  of  £10,000,000,  the  lists  for  which  were  opened 
:2nd  April  :— 

Mexican  Gtovbrnment  Loan. 

tor  500,000  obligations  of  £20,  authorised  by  H.  E.  the 
Lisued  at  the  price  of  £13.  12a.,  with  dividend  from 
865 ;  interest,  6  per  cent. ;  redeemable  in  60  years  by 
igs,  commencing  on  the  1st  of  October  next.  They  will 
le  drawings  will  amount  to  £60,000  each  half-year,  the 
£20,000,  with  two  of  £4,000,  four  of  £2,000,  and  sixty 
Irawing  to  be  on  the  2nd  of  July  next,  and  the  follow- 
f  January  and  2nd  of  July  in  each  year.  The  Mexican 
0  deposit  in  3  per  cent.  French  Rentes  sufficient  to  pay 
f  obligation  at  the  end  of  50  years,  the  title  to  this  pay- 
ented  by  a  special  certificate.  Thus  the  subscribers,  in 
imbursement  by  drawings  at  the  rate  of  £20  per  obliga- 
i  second  reimbursement  of  £13.  12s.  The  subscription 
the  Comptoir  d'Escompte  at  Paris,  and  their  correspon- 
irtments,  and  at  the  offices  of  the  various  Receivers- 
iirday,  the  22nd  of  April,  till  Wednesday  the  26th.  The 
3e  made  as  follows  : — £2.  8a.  on  application,  £3.  4a.  on 
,  and  £2  on  the  15th  of  August,  October,  December,  and 


>  ScwTTtsH  Bank. — ^Wihdiwo-Up. — A  petition  having  been 
ister  of  the  Rolls,  for  the  winding-up  of  this  company,  which 
in  London  at  24,  Old  Jewrv,  Mr.  Swanston,  on  the  26th 
trie  for  an  order  appointing  five  of  the  directors  (named  in 
Sir  Wm.  Smith,  VV.  H.  Logan,  J.  B.  Gumming,  Thos.  J, 
>picer,  provisional  official  liquidators.  The  ground  of  the 
execution  for  £2,000  was  about  to  be  enforced  against  the 
lade  the  order. 


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C0nTmunicn:ti0ns. 


lb  the  Editor  of  the  "  Banken'  Ma/fazi 

THE  BANKERS'  GUARANTEE  AND  TRl 

3,  Abchurcli 
-A 

SiE, — In  replying  to  the  letter  of  "  A  Bank  IVIana^ 
pounds  a  year  for  his  guarantee  premium,"  which  aj) 
number,  you  will,  perhai)a,  be  so  good  as  to  allow  me  i 
answer  the  particular  questions  raised  -therein,  but  ^ 
tlie  circumstances  which  led  to  the  establishment  of  the 
and  Trust  Fund,  and  the  plan  on  which  it  is  ooudi 
possible  within  the  limits  of  a  prospectus  to  enter  full 
and  as  your  magazine  is  the  recognised  organ  of  the 
pages  seem  to  be  the  fit  place  wherein  to  discuss  i 
bankers  and  their  ofHcials  are  so  much  interested. 

The  circumstances  which  led  to  the  establishment  of 
All  bank  ofticials  are,  with  few  exceptions,  required 
their  fidelity  to  their  employers.  This  security  had 
tainable,  either  by  the  bond  of  private  sureties  or  the  \ 
society.  In  some  banks  the  former,  and  in  others 
security  was  required,  but  in  most  cases  the  kind  of  s 
with  the  clerk  so  long  as,  of  its  kind,  it  was  satisfact^ 
Of  late  years  the  custom  of  giving  private  security 
giving  way  to  the  more  approved  and  popular  mod€ 
guarantee  society,  and  there  are  now  very  few  bankj 
which  it  is  compulsory  for  clerks  to  put  themselves  un 
indebtecbiess  for  suretyship  to  relations  or  friends. 

The  impression  with  some  bankers  used  to  be  that 
tion  or  friend  was  a  certificate  of  character  such  as  tl 
company  could  never  be.  It  was  said  that  it  implied  u 
on  the  part  of  the  bondsman  in  the  honesty  of  the 
was  bond.  On  the  other  hand,  it  was  thought  that  a 
to  commit  an  act  of  dishonesty  that  would  entail  losi 
from  which  he  would  not  be  deterred  if  a  guarantee  sc 
judiced  by  his  acts. 

But  these  were,  theories,  however,  and  are  disproYw 
is  well  known  that  one  of  the  largest  private  banking  I: 
which  still  requires  private  sureties,  has  had  more  def 
since  the  plan  of  accepting  the  policy  of  a  company  be 
most  other  houses,  than,  it  is  believed,  any  other  prival 
ment  has  had. 

Besides,  since  the  establishment  of  the  guarantee  so( 
ship  has  been  practically  inoperative.  The  custom 
guarantees  does  away  with  any  validity  private  suretvi 
possess,  and  A.  B.  may  readily  enough  become  sure 
C.  D.  can  give  A.  B.  the  policy  of  a  guarantee  society 
him  harmless  in  respect  of  his  private  bond.  Nay,  i 
likely  that  the  policy  of  a  guarantee  society  may  be  n 
to  counter-guarantee  than  to  guarantee  direct,  and,  if  i 


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rate  sureties  has  even  greater  facilities  for  obtaining  his 
which  either  requires  or  will  accept  a  policy.  But, 
be,  it  is  unquestionable  that  the  practice  of  requiring 
■a|)i(lly  going  out  of  use.  The  largest  joint-stock  bank 
fviously  adhered  to  this  practice  has  done  away  with  it 
aeut  of  the  Bankers'  Guarantee  and  Trust  Fund, 
lajority  of  bankers'  clerks,  then,  liaveof  late  years  been 
arity  from  a  guarantee  society,  and  the  premiums  they 
paying  have  been  upon  the  average  at  the  rate  of  ^^ 
?ry  £1,000  guaranteed.  Formerly  the  premiums  were 
ipon  tiie  reduced  rates  only  1  will  make  my  calculntiona. 
lid  for  10,  20,  and  30  years,  amounts  of  course  to  £30, 

ill  efiect  a  life  ass\u-anco  for  £100  at  the  age  of  18,  pay- 
he  ago  of  45  or  46,  or  at  death,  if  that  should  previously 

nounts  iu  30  years,  with  compound  interest  at  6  per 

:han  two  hundred  pounds. 

0UND3,  that  is  the  sum  which  a, guarantee  society  would, 

,  realise  from  a  bank  clerk  who  continues  faithful  to  his 

to  35  years,  while  from  those  who  spend  a  lifetime  in 

ly  hundreds  do;,  the  society  would  have  the  satisfaction 

►r  quite  double  that  amount. 

2rk  not  yet  40  years  of  age  has  paid  in  hard  cash  £G0, 

i). 

bly  eight  or  ten  thousand  clerks  employed  in  the  bank- 

of  Great  Britain  and  Ireland.  If  they  were  all  guran- 
nd  if  one  in  every  hundred  were  a  defaulter,  and  every 
he  full  amoimtof  his  policy,  tlie  premiums  would  at  the 
■  in  three  years  even  that  amount  of  loss. 
own  that  bankers'  clerks  are,  as  a  body,  anon -defaulting 
lis  arises  from  the  care  exercised  in  selecting  young  men 
ntments,  or  from  their  prospects  of  promotion,  and  the 
provided  for  life  if  they  conduct  themselves  properly,  or 
osed  in  them,  and  the  sense  of  resixjnsibility  tending  to 
racter,  or  from  the  system  of  check  and  counter-check  to 
<x>unts  are  so  properly  subject,  or,  as  is  most  probable, 
inistances  combined,  the  fact  is  indisputa])le  that  bankers' 
shed  for  themselves  an  exceptionally  high  character, 
ocieties  themselves  recognise  this  to  a  certain  extent  by 
ir  fidelity  at  lower  rates  than  they  charge  to  clerk* 
ther  branches  of  commerce. 

nown  that  bankers'  clerks  seldom  change  their  calling, 
positions  in  the  banking-houses  throughout  the  country 

men  who  have  been  in  the  same  service  from  their  youth. 
>f  a  banking  appointment,  even  more  than  its  emolu- 
:h  makes  it  so  desirable  to  obtain,  and  is  so  conducive 
discharge  of  its  particular  duties,  and  to  general  recti- 

not  given  to  change,  and  also  numerous,  it  would  not 
ng  if  bankers'  clerks  had  been  the  first  to  co-oi>erate 
ntary  general  association,  at  least  for  the  purpose  of 
another's  fidelity,  and  so  of  saving,  or  keeping  to  them- 
\   ar^Tiiing  from   their  guarantee  premiums ;  but  it  it 


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Cammunicatums. 


positively  marvelloiu  that  with  the  example  before  them  fc 
yean  of  the  Bucoeesful  operatioD  of  mutual  guarantee  funds  an 
small  sections  of  their  own  community,  and  in  certain  govemn] 
ments,  such  as  the  Excise  and  Customs,  they  should  not  unti 
organised  a  general  co-operative  association,  extending  the  bei 
system  of  mutual  guarantee  to  all  the  members  of  their  class. 

Twenty.four  years  ago  the  directors  of  the  Bank  of  £ng] 
foot  a  mutual  guarantee  fund  for  the  benefit  of  their  derks. 
was  required  to  subscribe  £5,  and  the  sum  so  subscribed  was  U 
to  guarantee  their  fidelity  as  long  as  they  remained  in  the  Imu 
fund  was  not  exhausted.  Practically,  the  subscription  of  £ 
found  to  be  much  more  than  sufficient  for  the  purposes  of  th< 
fund,  and  not  only  have  the  subscribers  never  been  called  npc 
further  contributions,  but  the  greater  portion  of  the  fund  arisi 
single  original  subscription  has  been  dealt  with  from  time  to  ti 
benefit  of  the  contributors  as  a  class. 

If  during  these  twenty-four  years  the  clerks  in  the  Bank 
had  been  guaranteed  by  a  guarantee  society,  their  premiums 
have  amounted  to,  in  excess  of  the  defalcations,  at  least  £45,0( 
interest  added,  to  at  least  £70,000,  the  whole  of  which  would 
into  the  pockets  of  the  guaranteeing  society. 

Such,  then,  are  the  circumstances  which  at  the  instance  of 
themselves,  and  in  no  small  degree  through  the  exertions  of 
man  whose  name  appears  upon  the  prospectus  as  auditor,  led  t 
lishment  of  the  Bankers'  Guarantee  and  Trust  Fund.  By 
general  co-operation  among  the  managers  and  clerks  engaged  i 
ing  establishments  throughout  Great  Britain  and  Ireland  it 
extend  to  all  bank  officials  the  advantages  hitherto  exclusively 
the  staff  of  the  Bank  of  England. 

I  say  exclusively  enjoyed,  for  though  it  is  true  that  one  o: 
banks  have  guarantee  funds  of  their  own,  the  rates  charged  a 
higher  than  are  necessary  for  the  purposes  of  guarantee,  thi 
take  more  of  ihe  nature  of  ^  annuity  "  or  **  benevolent''  than  ^ 
funds. 

The  one  object  of  the  Bankers'  Guarantee  and  Trust  Fund 
bankers'  clerks  to  provide  the  required  security  at  the  lowast  p 
without  reference  either  to  any  other  prudential  or  to  any 
purpose.  Whatever  surplus  may  arise  m>m  the  single  subea 
is  not  required  for  the  purposes  of  the  guarantee  fund,  will 
trust  by  the  managers  of  the  fund  (the  trustees),  for  the  be 
subscribers  as  a  dass,  and  will  be  so  employed  by  them  as  tl 
discretion  shall  think  fit.  (Various  suggestions  have  been  off< 
employment  of  such  a  surplus,  but  no  decision  can  be  arrived 
is  koown  with  what  amount  the  trustees  will  have  to  deal.) 

Bank  derks,  as  I  have  said,  seldom  change  their  calling,  h 
otc^vuBl]y  transfer  their  t^^rvicaa  fn/iu  nuts  liank  t<j  aiiotheg 
theref(>rej  iniuiifcBtly  tfi  their  intereBt  to  be  members  of  a  gnnz 
m  th«  beiK'fiU  (*i  wliiL-b  thay  will  participate  as  long  as  th&j 
Ixmking  ftcrvit!*?,  ratlitT  than  of  one  that  is  limited  to  the  ua43 
of  a  Biiigle  bank,  iLud  in  which  al]  their  iuttsrett  would  QBm& 
that  eBtablkhment.  A  clerk  oD  leaving  a  bank  that  has  iim  OW 
feits  the  whole  amount  of  Ida  ooBtributiona  to  their  fund,  i 
meoibtsra  of  the  Bankers*  Guarantee  and  Trust  Fund  may,  uad 
circumstances  J  gci  from  one  baDking  house  to  another^  and  in 


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ho  BMM  relAtion  to  ibis  fund  aa  if  he  contmued  dunug  his  wholo 
I  the  sasne  bank, 

inly  neenuB  evident  tliJit  it  is  to  the  interest  of  all  sections  of  the 
y  of  bftnkers'  clerk»,  to  have  but  one  guarantee  fuDil  in  which 
be  pc?rmaneutly  g^niirsmt*^  let  tl\em  g^i  into  what  Imn king  service 
mtry  thej  will,  e«]r>ecially  when  the  rate  they  nmat  pay  for  being 
d  in  a  particular  bank,  as  long  as  they  remain  in  the  service  of  that 
leoeasarily  higher  than  the  rate  they  would  pay  to  a  fund  that, 
d  by  the  3ub8crii>tioii8  of  the  large  majority  of  the  bank  officiala 
gdom,  would  guarantee  their  fidelity  as  long  aa  they  remained  in 
L»  of  any  bank. 

iscriberfl  to  a  particular  fund  limited  to  the  use  of  a  particular 
higher  rates  and  have  fewer  privileges  than  the  subscriljers  to  a 
pd  open  to  the  use  of  all  banks. 

lese  facts  before  them>  it  may  l)e  hoped  that  the  dirwtors  of  the 
wo  banks  in  which  gtiaranteo  funds  are  in  operation  for  the 
uae  of  their  own  staffs,  will,  anticipating  the  wishes  of  their  clerks, 
[Litiative  steps  to  enable  their  stalffi  to«  avail  themaelves  of  the 
I  vantages  open  to  them  by  the  Bankers'  Guiurantee  and  Trust 

;he  establishment  of  this  fund  the  clerks  in  those  banks  stood  at 
nge,  as  compared  with  the  clerks  in  other  banks,  in  respect  to 
iStees ;  but  now  the  clerks  in  all  other  banka  will  have  an  ad  van - 
them  if  they,  too,  do  not  act  in  concert  with  the  general  move- 
te  their  detachments  and  make  one  rank  together.  They  who 
3rto  leti  the  van  must  now  fall  into  the  reiur  unless  they  marck 
le  main  Wly  which  has  overtaken  them. 

dwelt  upon  the  causes  that  gnve  rise  to  and  the  objects  and 
of    our   general  guarantee  fund,  1  will  now  briefly  nllude  to 
er  in  which   it   is    conducted,  and   in   so    doing  reply   to  the 
raised  by  '*  A  Bank  Manager. 

id  is  under  the  excltisive  managemc^ut  and  control  of  the 
md  the  policies  are  issued  and  signed  by  them.  They  are  re- 
in la-w  for  the  due  fulfilment  of  the  obligatittjia  tliey  imder- 
^htiold  disputes  arise  that  might  require  the  intervention  of 
settle,  they  might  be  sued ;  but  of  course  their  liability  to  pay 
extend  beyond  the  moneys  of  the  fund  of  which  they  are  the 
I  or  tmstees. 

>t  thought  likely,  however,  that   any  such  disputes  will  arise. 

jred  by  a  committee  of  baDkera,  who  as  it  were,  pledge  their 

I    for  fair   and    impartial   dealing,  the  fund  will  no  doubt  be 

,  in  such  a  manner  as  to  give  no  cause  for  ccmiplaint  in  any 

As  bankers  themaelvea  they  will  naturally  be  disposed  to  set 

and  pmmptly  in  the  settlement  of  claims,  and  they  can  have 

jj  payment  of  aacertaine<l  losses,  or  of  requiring 

them  tiian  would  bo  sufficient  testimony  of  the 

.     The  practiced  working  of  the  fund  will,  I  have  uo 

le  as  its  principle,  and  equally  a<hnLrablH* 

i  wmi  discussed  whether  an  arbitrator  shuuld  be  appointed^ 

II  be  made  absolutely  binding  upon  all  partica  in  any  case 

'  1  ''      I  rise.     The  name  of  Mr.  Tidd  Pratt 

e*l,  from  the  great  and  enlightened 

rn;ir   ^tTJui:L  in  all  co-operative  associations  of 

■  J  that  he  won!  igect  to  undertake  the  ofiice.     But 


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606 


Com  m  u  n  teat  i  o/w . 


application  to  him  ou  tbis   subject  waa    deferred,  as   ii 
no  differences  or  disputes  will  arise,  and  consequently  i 
apY>oi!ited.      If,  however,  experience  should   contradict 
it  should  be   found   convenient    to   have    an    arbitratii 
could  be  no  objection  to  the  appointment  being  hereafter 

With  regard  to  registration,  I  saw  Mr.  Tidd  Pratt  ai 
General  upon  the  subject  some  time  ago,  and  their  opinio 
none  of  the  Acts  of  Parliament  with  wliich  they  have  re: 
was  registration  needful,  and  our  solicitors  also  advised  u 
necessary. 

1  may  add  that  the  prospectus  from  which  "A  Bank  IV^ 
was  a  preliminary  and  incomplete  document.  The  trustt 
office,  and  the  duties  attaching  to  it,  as  soon  as  they  w< 
bankers'  clerks  generally  were  ready  to  co-operate  for 
guaranteeing  one  another ;  and  in  order  to  show  their  c 
success  of  the  scheme,  as  well  as  to  mark  tlieir  sense  of  th 
for  integrity  which  bank  clerks  generally  have  establishes 
several  banking  houses  in  London  and  elsewhere  have  su 
by  way  of  reserve,  in  order  to  mi\ke  the  security  absolutel; 
until  5,000  policies  sliall  be  taken  up. 

If  they  had  not  commenced  business  until  this  numb^ 
been  actujiUy  taken  up  and  paid  upon,  an  indeliriite  d« 
occurred,  for  there  is  nothing  like  that  number  of  premiu 
any  one  quarter.  But  as  nothing  more  was  needed 
pur^xwes  than  to  be  satisfied  that  bankers'  clerks  were  ] 
in  tlie  co-operative  association  for  the  purpose  of  guarantee 
fidelity,  and  being  convinced  of  this  by  a  considerable  nu 
tions  for  policies  already  in  hand,  the  operations  of  the  fund 
after  the  publication  of  the  prospectus,  and  many  whose  p 
the  Lady-day  quarter  were  thus  enabled  to  save  a  whole  ] 

The  thanks  of  the  clerks  are  due  to  bankers  generally  f( 
in  which  they  have  come  forward  to  assist  them  in  aho 
that  has  been  a  grievance  to  them  so  long — a  grievance  e 
the  imputations  which  the  amount  it  was  computed  at 
than  from  the  amount  itself — for  without  their  interesi 
not  have  attained  its  present  secure  and  satisfactory  po 
intended  to  introduce  anything  new  into  the  condition: 
bond,  nor  to  narrow  the  limits  of  its  obligations,  nor  to 
them,  but  simply  to  reduce  the  cost ;  therefore,  bankers 
tated  to  approve  an  institution  by  which  their  clerks  wi 
benefited,  and  their  own  interests  in  no  way  interfered  wi 

I  trust  that  the  importance  of  the  subject,  and  the  intei 
have  in  it,  will  be  a  sufficient  excuse  for  the  length  to  i 
tended  ray  remarks.  I  thank  "  A  Bank  Manager  "  for  h 
inquiries  no  less  than  for  his  cordijil  good  wishes  for  ou: 
thank  you.  Sir,  for  havijig  opened  the  pages  of  your 
magazine  to  the  free  discussion  of  this  guarantee  quesi 
that  the  principle  of  the  new  institution,  and  the  views 
letter,  will  receive  the  support  of  your  powerful  and  infix] 

I  am.  Sir, 

Youi-  obedient  servan 

Henry  ' 

8«cre(tAry  to  the  Bai^kers'  Guarax 


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Communication%.         .  667 

r  will  probably  be  read  by  most  of  the  bauk  managers 
[iODi,  iucludiug  the  heads  of  branch  ofliceB,  there  are 

I  tiike  this  opportunity  to  request  as  many  of  them 
one  so,  to  be  HO  good  as  to  ascertain  the  names  of 
Lve  establishments,  whose  wish  it  is,  as  the  year  goes 
•elves  members  of  this  fund,  and  furnish  me  with  the 
onveniently  can.  In  no  single  instance  as  yet  where 
►een  expressed  on  the  part  of  the  staflf  of  a  bank  to 
d  as  the  means  of  providing  their  securities,  and  the 
ral  branches  have  been  sent  in,  liave  we  failed  to  ob- 
eir  employers  at  the  head  office.  But  it  is  for  managers 
s  to  come  forward  tirst,  for  it  is  naturally  not  the 
trs  to  force  upon  them  the  adoption  of  any  new  mode 
curitieg,  and  the  wish  on  our  side  oidy  is  that  they 
re  is  this  new  mode,  should  imderstand  its  advantages, 
mselves  accordingly.  Let  them  do  this,  and  there 
guarantee  fund  for  the  whole  body  of  bank  officials 

Ireland,  of  which  each  member  will  be  for  as  long 
dng  service. — H.  Y. 


EQUES  PAYABLE  TO  ORDER. 

connected  with  cheques  made  payable  to  order  have 
IT  pages,  but  there  is  one  which,  as  far  as  I  remember, 

mentioned,  and  which  I  think  may  not  be  altogether 
Lice.  I 

intly  employed,  states  that  "  this  cheque  requires  the  j 

person  to  whom  it  is  payable."     This  has  t!ie  advan-  i 

payee's  attention  to  the  fact  that  his  signature  is  re-  • 

e  disadvantage  of  causing  the  signature  to  be  ejidorsed 
?ck.  The  present  practice,  in  fact,  compels  every  one 
iheque  made  payable  to  order,  to  turn  it  over  to  see 
ueut  is  given. 

bviate  this  inconvenience,  to  propose  a  slight  altera- 
jheque  now  in  use,  and  to  assimilate  it  to  the  general 
rants,  which,  when  made  payable  to  order,  usually 

out  on  the  face  of  the  warrant  for  the  signature  of 

aid  have  the  advantage  that  any  one  looking  at  the 
the  first  glance  whether  the  signature  of  the  payee 
Li  would  also  render  the  correctness  of  the  payee's 
f  seen,  and  whether  it  exactly  oorrespoods  with  the 
the  cheque. 
:e  proposed  would  be  as  follows  :— 

nts — Messrs.  Cash  <fe  Co. 

"  Silverton,  April  18, 1866. 

ikon  &  Co.,  Silverton.  * 

GUx>.  Gold  or  order,  ' 

**  Ten  Pounds.     Thos.  Twentyman.  1 

pi  here Geo.  Grold Signature."  | 


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Cofntnunicatiom. 


If  yon  would  give  this  aiiggestion  a  place  in  your  ps 
bankers  who  were  inclined  to  adopt  it  would  not  mij 
signifying  their  acquiescence  to  you ;  and  if  the  altera 
a  few  of  the  leading  firms  and  companies  I  feel  very  lil 
would  so  thoroughly  recommend  itself  by  the  trouble  i1 
it  would  shortly  become  general. 

I  am.  Sir, 

Yourj 


TOUTING  FOR  BUSINESS. 

Sir, — As  a  branch  manager  of  a  recently-established 
I  can  quite  endorse  all  that  has  been  written  by  y 
"J.  D.  F."  condemnatory  of  the  practice  of  "touting  " 
unfortunately,  so  prevalent  amongst  banks.  I  have  mysi 
sions  experienced  the  great  inconvenience  of  having  i 
who  have  been  previously  solicited  by  me  to  open  a  bai 
have  sometimes  been  compelled  to  yield  a  point  which,  ] 
voluntarily  become  my  customer,  I  should  not  have  yi< 
"  great  want  felt,"  as  the  prospectuses  used  to  say,  but  i 
of  business  for  the  banks  which  were  said  to  be  so  mucl 

Let  there  be  a  few  more  amalgamations  between  new  ( 
and  then  this  high  pressure  system  can  be  set  aside,  res 
reasonably  looked  for,  commercial  credit  will  not  be  i 
and  bank  managers  will  be  relieved  of  the  dirty  wor 
business." 

I  am,  Sir, 

Your  obed 

April  16th,  1865. 


ARE  COUPONS  LIABLE  TO  STAMP  I 

Whitehaven,  21 
Deab  Sib, — The  law  regarding  these  documents  a 
an    uncertain  state,  may  I  ask  if  you  can  throw  an; 
thereon. 

By  some  they  are  considered  as  drafts,  promissory  not< 
Ac,  consequently  liable  :  by  others,  again,  they  are  not 
they  want  the  essential  character  of  these  documents,  tl 
An  answer  at  your  convenience  will  much  oblige, 

Your  constant  res 

[The  question  referred  to  was  discussed  in  a  letter 
for  1860,  pages  518,  519.  On  looking  to  the  Act  23  Vic 
the  view  therein  taken  is  correct,  although  it  is  not  gen 


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mntile  Bank  of  IruliUy  London  and  China,    669 

CHEQUE  OUT  OF  DATE. 

Norwich,  April,  1805. 
more  than  twelve  years  since,  payable  to  his  landlord 
im  in  the  ordiuary  course  of  business,  but  B.,  from 
eason,  has  never  presented  the  cheque  for  payment. 
^e  been  mislaid,  and  now  B.  is  dead  ;  his  representa- 
above-mentioned  checjue ;  can  they  comi)el  A.  by  law 
ter  the  lapse  of  twelve  years,  assuming,  of  course, 
ine  to  do  so  without  A. 'a  special  order  to  that  effect  ? 
;he  Bankers^  Magazine  be  so  good  as  to  answer  the 

H.  S. 
3  payment  of  the  cheque  is  barred  by  the  statute  of 


ENDORSED  CHEQUE. 

5,  Duke  Street,  Cannon  Street, 

Manchester,  8th  April,  1865. 

payable  to  bearer  has  afterwards  been  endorsed  by 
payable  to  order,  is  the  drawee  in  such  a  case  obliged 
such  endorsement,  or  must  he  still  pay  it  to  bearer  ? 
siboTe  in  the  next  number  of  the  Bankers'  Magazine 

Yours  respectfully, 

A  Subscriber. 

Lng  been  originally  made  payable  to  bearer,  is  not 
rsements.] 


MERCANTILE  BANK  OF  INDIA,  LONDON, 
AND  CHINA. 

lartered  Mercantile  Bank  of  India,  London,  and  China, 
riously  to  the  meeting.  The  audited  balance-sheet, 
3comit  of  the  bank,  for  the  year  ended  Slst  December 
T  providing  for  all  bad  and  doubtful  debts,  and  de- 
management  at  all   points,  the  net   profit  amounts 

I  has  to  be  added  a  sum  of  £75,831  imdivided  profit 
Q  the  preceding  year,  making  a  total  of  £201,913.  Out 
136^53  has  been  paid  in  two  half-yearly  dividends, 
yer  cent,  on^the  paid-up  capital  of  the  bank.     The  im- 

of  £66,760  is  carried  forward  to  the  profit  and  loss 

nt  year.     The  la.st  instalment  of  £12.  10s.  per  share, 

it,  upon  the  10.000  new  shares  issued  Ist  December, 

The  Newera  Ellia  and  Tuticorin  agencies  have  been 

t  answering  expectations,  and  for  a  similar  reason  the 

II  be  closed  at  the  end  of  the  current  year. 


52 


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(Estates  of 


jFailcb 


imns. 


THE  ESTATE  OF  MR.  DAVID  LEOPOLI 

The  creditors  of  Mr.  David  Leopold  Lewis  met  on  tb 
offices  of  Messrs.  Lawrance,  Plews,  and  Boyer,  to  con 
mode  of  liquidation,  and  after  a  lengthened  explanation 
and  considerable  deliberation,  they  unanimously  deterc 
under  a  deed  of  ius]>ectorship.  At  the  same  time  it  w; 
application  should  be  made  to  the  Court  of  Chancery,  \ 
as  i)ossible,  for  the  purpose  of  arriving  at  the  rights  of  a] 
in  the  shares,  stocks,  and  bonds  of  the  Cork  and  Yougha 
comprise  nearly  the  whole  of  the  assets  of  the  debtor's 
lities  of  Mr.  Lewis  are  about  £850,000,  and  it  is  fea 
creditors  will  not  obtain  a  favourable  dividend. 


THE  ESTATE  OF   MESSRS.  BUCHANAN,  HAINII 

The  creditors  of  Messrs.  Buchanan,  Hamilton,  and 
are  Messrs.  Jarvie,  Thorburn  and  Co.,  of  Shangha 
May  and  Co.,  of  Singapore),  held  a  meeting  on  the 
Geo.  May,  of  the  firm  of  May,  Matthewson  and  i 
called  to  the  chair.  Mr.  William  Anderson,  of 
countant,  presented  a  statement  of  the  affairs,  from 
that  the  assets  were  estimated  at  £632,068,  and  the  liab 
Mr.  Murray,  of  London,  and  Mr.  J.  S.  Fleming,  of  ( 
explained  the  position  of  the  estate,  and  the  foUo^n 
unanimously  adopted  : — That  the  meeting  be  adjourned 
3rd  July  next,  and  tliat  in  the  meantime  the  business  b 
the  inspection  of  Mr.  Greorge  May,  Mr.  Michael  ConnaJ 
Mr.  Anderson,  the  accountant ;  that  the  banks  and  oth« 
United  Kingdom  do  not  send  their  bills  abroad  or  take 
ing  the  ajournment  of  the  meeting,  and  that  all  payme 
the  approval  of  the  inspectors. 


THE  ESTATE  OF  MESSRS.  BREMNEI 
A  MEETING  of  the  creditors  of  Mr.  George  W.  Bremner, 
firm  of  Messrs.  Bremner  and  Co.,  merchants,  and  shipo 
tlu'  l'2th  A|>nJ,  wIh  II  it  wtis  wjrofd  to  carry  out  a  liquid? 
tinh.  Thi^  dt'UU  ami  liulnlitit'Hi  were  stated  to  be  £48,91 
£;VJ,441  ;  luit  uf  oMirsi-  thi.' laUi  r  are  subject  to  realis 
Killiij;^^HW<»rdi  au'i  '^■<*n^  a"ii>iirit.iiits,  prepared  the  statei: 
slcMjd  great  fiympathy  wa^  tixj^trt'siied  for  the  debtor. 


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MERCANTILE   SUSPENSIONS. 

wing  siLspyensions  have  been  announced  during  the  past  month  r— 
:h. — Messrs.  Bremner  and  Co.,  London,  East  India  and  Brazilian 
trade. 

[. — Messrs.  Kelson,  Tritton  and  Co.,  London,  East  India  and 
general  merchants. 

r?.  O.  Joyce  and  Co.,  London,  India  and  Egyptian  trade, 
rs.  A.  Skwarco  and  Co.,  Loudon,  iron  and  steel  trade, 
rs.  J.  and  J.  Cogan,  Glasgow,  spinners  and  manufacturers, 
rs.  Buchanan,  Hamilton,  and  Co.,  Glasgow,  East  Indian  mer- 
chautst. 


MONTHLY  CHRONOLOGY. 


29. — Suspension  announced  of  Messrs.  Bremner  and  Co.,  of 
Helen's,  in  the  East  India  and  Brazilian  trades,  with  liabilities 
g  to  £150,000. 

..—Stoppage  of  Messrs.  Kelson,  Tritton,  and  Co.,  of  Old  Broad 
ist  India  and  general  merchants,  with  debts  extending  to  about 

lure  of  Messrs.  C.  Joyce  and  Co.,  of  Moorgate  Street,  engaged 

idian  and  Egyptian  trades,  with  liabilities  extending  to  about 

0. 

ispension  of  Messrs.  A.  Skwarcow  and  Co.,  in  the  iron  and  steel 

I  with  connexions  in  Sheffield  and  Italy. 

oppage  of  Messrs.  J.  and  J.  Cogan,  of  Glasgow,  spinners  and 

urers,  with  £100,000  liabilities. 

itelligence  received  from  America  of  the  evacuation  of  Richmond 

rsburg,  by  the  Confederates,  and  the  occupation  by  the  Federal 

ispension  of  Messrs.  Buchanan,  Hamilton,  and  Co.,  of  Glasgow 
a  merchants,  with  liabilities  reaching  to  upwards  of  £1,000,000 
ews  arrived  froin  New  York  of  the  suirender  of  General  Lee  and 
to  General  Grant. 

tie  Czarowitz,  the  eldest  son  of  the  Emperor  of  Russia,  and  heir 
to  the  Russian  throne,  died  at  Nice,  in  the  22nd  year  of  his  age. 
itelligence  received  from  America  that  President  Lincoln  was  shot 
5assin  at  Ford's  Tlieatre,  Washington,  on  the  night  of  the  14th 
im  the  effects  of  which  he  died  early  on  the  following  morning, 
me  moment,  another  assassin  made  an  attempt  on  the  life  of  Mr. 
t  his  residence,  by  stabbing  him  several  times  about  the  neck  and 
3  at  the  same  time  felled  Mr.  Frederick  Seward,  the  son  of  the 
lo,  it  is  reported,  died  in  the  course  of  the  following  day.  The 
murderer  of  Mr.  Lincoln  is  an  actor  named  Wilkes  Booth.  At 
Mr.  Seward's  assassin  is  said  to  be  unknown. 


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BANKING  OBITUARY. 

On  the  11th  April,  at  Essex  Road,  Islington,  Mr.  Th 
the  Oi>nsolidated  Bank,  in  the  65th  year  of  his  age. 

Ou  Saturdiiy,  the  15th  April,  at  his  residence,  Langpo 
Thomas  Fuul,  Esquire,  aged  79.  He  had  been  engaged 
TH>rtiHl  of  his  life  in  banking  business,  and,  as  a  part 
Ivuikiug  Company  from  its  establishment  in  the  year  '. 
cvMse,  he  took  a  rery  active  and  efficient  part  in  the  maD 


1%»»  B.VNKKR»*  GvAR-iNTEE  AND  Trust  Fukd.— It  IS  annon 
of  Mr.  IKn^r^^e  Thomas  Broc>king  is  added  to  the  list  of 
lUukcr*'  Ciuamnlee  aud  Trust  Fund.  This  association,  whicl 
vsilH bushed,  and  is  uow  in  active  operation,  is  for  the  pui 
^uicml  co^^^xratiou  among  bank  officials,  in  order  to  secure 
(>i  a  »vi«tc!u  ot  mutual  guarantee.  Several  of  the  leading 
j»tv»ok  ^vmk*  in  London  and  throughout  the  kingdom  hav 
accept  tho  guartintt-*  of  this  fund  for  their  clerka,  and  it  h 
♦h>>rt  time  it  will  be  universiiUy  adopted. 

rv>c«i^v.>t>icK  Savings  Banks. — It  seems  from  a  pai 
iiiHuod  Inst  month,  that  the  sum  standing  to  the  credit 
^ivuiviH  Uank'i  Fund,  on  the  3lst  of  December  last,  at  the  I« 
WHH  Jt.*i.l>^v\H»'»3.  :?jr.  3<^.,  and  on  the  same  day  there  was  ii 
IVHluiji.Hter  i;<*norHl  a  biilance  of  £1 8,546. 18J.l(i.,  making  in  aJ 
to  »u»'ft  a  hnbility  of  £4,^»i,);>,l23.  lit.  7d,  The  repayments 
tv»  Xl.SvJi  S4^J.  2jf.  ihi.^  aud  the  cash  received  from  deposito 
was  Jt\>.i^,i.V>4.  6or.  Iti.  The  charges  and  expenses  iucurre 
yK^At  amouuteil  to  i,'4o,S5t>,  Is, 

FiKK  AT  fHK  BAMt  ov  1>TAG<K — A  telegram  was  received 
tho  lUnk  of  V.>tHi:v>»  lamited,  on  the  7th  April  from  their  c 
Puucdiu : — **  (mat  tiro  ou  the  24th  of  January.  Twelve  8h< 
burned,  Kvks  and  ca:>h  saved  ;  business  continued  as  usi 
TUt>  »«?cn»tary  adds  that  the  premises  of  the  bank  are  fully  i: 


BANK  MOVEMENTS. 

At  a  mating  of  the  creditors  of  Messrs.  Attwoods,  Spool 
of  tho  lUrnivn^hatn  Joint-Sttn^k  Bank  to  pay  11*.  3d,  in  the 
of  Messrs,  AttwiKHis*.  was  carried  by  acclamation.  The  Birm 
lUnk  itpened  a  branch  in  New  Street  (Attwoods*  old  establisl 
April  last. 

The  payment  of  the  first  dividend  of  Ss.  in  the  ponnd,  nn 
of  tho  atlairs  of  tho  Leeds  Banking  Company,  was  comr 
April,  at  U  o'ch>ck  in  the  forenoon,  from  which  hour  to  th< 
tho  afternoon,  the  bank  premises  were  crowded  with  cri 
arrangonu  nts  had  boon  made  by  Mr.  Turquand,  the  official  li 
overcrowding  or  ct>nfusion,  each  creditor  having  had  a  ci] 
informing  him  tho  time,  between  cert^iin  hours.  Those  per 
attend  at  tho  specitied  time  were  paid  at  the  usual  hours,  oi 
April. 


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Trtuie  of  the  United  Kingdom,  673 

Mercantile  and  Exchange  Bank  having  made  Batisfactory 
he  Clydesdale  Banking  Company  (who  will  act  as  their 
otland)  intend  to  withdraw  their  hranch  from  Glasgow. 
the  manager  of  the  Meraintile  and  Exchange  Bank  in 
^he  management  of  the  Clydesdale  Bank. 

r  of  the  London  Bank  of  Scotland  will  he  held  at  the 
Puesday,  May  9,  at  two  p.m.,  to  receive  a  report  from  the 
I   progress  made  in  the  winding-up  of  the  affairs  of  the 


:he  London  Scottish  Bank,  Limited,  will  be  in  a  position 
t  its  engasfements,  and  that  negotiations  are  pendhig  with 
Le  over  its  basiness. 


lan,  the  Columbian  conRul  general  in  London,  has  joined 
I  af  the  London  and  Venezuela  Bank. 


CNDERS  FOR  BILLS  ON  INDIA. 

>,00,000  rupees  in  bills  on  India  took  place  on  the  6th 
of  England.  The  proportions  allotted  were — to  Cal- 
ces, and  to  Madras,  2,20,000  rupees.  The  minimum 
1«.  lljd.  on  Calcutta  and  Madras,  and  Is.  ll.^d.  on 
on  Calcutta  and  Madras  at  and  above  the  minimum 
Ott  Bombay  no  tenders  were  made  above  the  mini- 
lings  for  30,00,000  rupees  took  place  on  the  20th  April, 
jtted  were — to  Calcutta  2,70,000  rupees,  and  to  Madras 
B  minimmn  price  was  fixed  at  I*,  lid.  on  Calcutta  and 
d.  on  Bombay.  Tenders  on  Calcutta  and  Madras  at 
eceive  in  full ;  on  Bombay  all  the  tenders  were  below 


DB  OF  THE  UNITED  KINGDOM. 

bde   returns  for  the  month,  and  two  months  ending 

',  were  issued  on  the  31st  March,  but    the  results 

so  favourable  aa  for  some  time  past.     The  decline  of 

a  quarter  in  the  value  of  our  exports  during  the  month 

)n  of  the  general  dulness  in  business,  but  although  the 

to  most  of  the  leading  articles  of  commerce,  the  chief 

>iind  in  the  articles  of  cotton  yam  and  cotton  manu-  ) 

I  declared  value  of  exports  for  the  month  last  past  was 

ist    £12,698,121    in    the    same    month    of  1864,  and 

,  being  a  decline,  as  compared  with  1864,  of  £1,321,907,  j 

with  1863,  an  increase  of  £2,077,638.    For  the  two  1 

ent  year  the  total  was  £21,865,553,  against  £23,111,707  j 

13,731  in  1863,  which  is  a  decrease  on  the  former  period  [ 

,   an  increase  on  the  latter  of  £4,521,822.     The  chief 

exports  have  been  an  increase  in  linen  manufactures  and  *. 

decline  in  alkali,  beer  and  ale,  coals  and  culm,  cotton 
lufactures,  haberdashery  and  millinery,  hardware 
a  yam,  metals,  seed  oil,  silk  manufactures,  wool, 
jed  yam,  and  woollen  manufactures.  In  imports  the 
n  raw  cotton,  guano,  hemp,  raw  silk,  tallow,  wool,  coffee 


Digiti 


ized  by  Google 


vi?-^ 


rWtf  jf  t.iti    Cnitf^d  Kingdom. 


ya\x  *«i::tr;  ino.  "die  '^i^ri-r  oif  in  d^kX^exHi  and  linsec 
'nvtui>:!N,  vo.a»  -;'ir"3^  t*.^  tit:  ~er,  videos  aiDd  wine. 
::iK'n?  ij«i  x^n  ui  _avr^:to«^  -H  i^e  iinrt  nauon  of  barley 
.■••m  .  ->!!«'  A  t»».i:ii**  n  w'i»--ir»  ^va?,  b^ans,  and  whe 
I'l  iJt*  ,-a^^  i  'r»">i«  ns^  *^cn*  n.is  bt?en  an  improve 
ou*"^,  u:«i  -v::^^ ;  J«t:  a  rt^l  n:;  tf  m  bao.^n  and  haras, 
tin  I  ;i.:-L  r  ...•  .^t'tcr::  ^?t  iLie  ai«^«  mipcrcani  variatic 
tao  AiTac\-vi  UiJi^'s-  — 


C  •■*    II     tm        —         ...  .^ 

L*  iv."i    ua-i  i-jcc-^rrr*     »^  .— 

L.iieu  >rim         .^         ..^ 

V'   /.  rT.  -i-^x    T!  Z  Z 

^^  .vc^vra  Aztvi  w.T«;rd  r-ira  ^^ 


t.>=5 

607,59 

T:iriS    1 

M^.^-^o.oO 

».*. 

JJ-^'KS] 

T-Aldcf   £  . 

420. 1 G 

v^r^    . 

i6.3:,\oj 

ib.s.      1 

3.u3tiJl 

t.'::4     1 

2S,97 

34, 9S 

CWt5. 

4.7< 

^^ 

38.12 

ci»«  ^as 

71O.09 

Tji..;e  £ 

132,72 

1  v>. 

33.70 

iTlI  O"*   ' 

440,72 

^-^irvLs 

3.1':i6,40 

1?*,     . 

l,t>41,72 

C  "-Vs?      »^         «..         .»<, 

^^-:.-u5 

AV  Ii  .-ju-sixfdil  ai:d  door 

H  'vp ^ 

l.e.ithor  niduuuotunfs  ... 

Uuttfr     

rhiH**ii» 

Flix-stwi  «ni\  liuseed  ... 

Sik,  r:*\r 

!>ilk  mauuuctures 
Jj'piiits      

>••'  :  '  ■ .  uii.''  IKK  1 

T'illoiT      ... 

Ta        ...         ..        .. 

Tulxieff 

Uhi^      

U,,,l        ^ 


lb*. 

472,70 

•♦ 

3.478,39 

qrs.     1 

1,421,13 

Cwu,     ' 

537.55 

pairs 
cwts. 


r 


.  gallons 
.    cwts. 

'.      lbs. 

,  gallons 
,      lbs. 
,  value  £ 


Digiti 


ized  by  Google 


675 


JANK  AlVULGAMATION  AT  BIRMINGHAM, 

L  L.  MoiLLTET  and  Sous,  private  Lankers,  of  Binninghftm,  have 
amalgamate  their  business  with  that  of  Lloyd's  Btmkiag  Com* 
Li]it«5d.  This  fu'iioji  was  looked  for,  and  the  two  romniniug 
kuks  hftve  now  become  a  joiiit-i*tock  (liuiited)  hank.  It  is  uuder* 
;  two  memborsof  the  iirm,Mys8rs.  James  aii<l  Theodore  Moilliet, 
the  board  of  the  new  company.  A  formal  prospectus  has  been 
of  the  new  bank.  It  is  to  be  styled  Lloyd's  Baiikinii^  Company, 
ind  the  capital  is  fixed  at  £2,00a,iMJ0,  of'  which  .£1,250,0(10  is  to 
enteil,  in  25,00i>  shares  of  ii^50  eacl).  Of  tho»e  Hharea  r2,5<K>  are 
tied  to  Messrs,  Lloyda  and  Messrs,  MoQUot,  antl  12,500  are  to 
at  a  premium  of  £5  each,  such  premium  being  applied  to  j»ay  fntr 
will,  and  leaving  the  whole  amount  of  the  share  capital  available 
irposea  of  the  bank.  It  is  proponed  that  the  remaining  15,000 
il  W  reserved  for  issue  at  such  premiums,  at  such  times,  and  to 
>ns  ail  the  Iward  shall  consider  best  for  the  interests  of  the  corn- 
no  dividend  above  10  per  cent,  per  annum  is  to  be  paid  until  a 
nd  shall  have  been  fonjlod  equal  to  a  fifth  of  tho  paid-up  capital, 
risional  committee  comprises  sixty-six  of  the  leading  persona 
with  the  business  of  Birmingham  and  its  district,  and  the 
i  of  the  new  eompany  comnieuce  on  the  1st  of  May, 


TURKISH  FINANCE. 


(From  tho  Levant  Herald,) 
equence  of  the  Easter  holidays  there  has  been  an  almost  total 
0  of  business,  both  monetary  and  commercial,  <luring  tlie  week, 
y  andyesttrday,  the  Khan  was  wholly  cloaed,  and  to  day  only  a 
portant  operations  were  transacted,  at  an  averjige  of  la^Kt  week's 
ices.  Thtre  U,  therefore,  substantially  no  change  to  report  in 
u^  local  t^t<jckK,  The  i«harcs  uf  the  Socujto  Gr'uOral  have  however 
osiug  this  afternoon  at  3  prem.,  being  an  advance  of  J  on  last 
iiotittiori.  Exchanges  on  London  liave  also  risen,  to-day's  rates 
►  t,  100 J  ;    for  francs  (on  Marseille^*),  the  demand  has  been  dull 

5. 

lure  of  M«^srs  Joyce,  Thnrbnrn  and  Co.— reported  last  week — 
rc»  gb'ulto  learn,  affected  Oalata  less  severely  than  wai*  expected, 
local  lo?is    frttm  the  event    being  little  beyond  £50,000.    The 
d»?     *  'ple    gives    publicity    to  the  rumour  of  tlie  sus- 

if  M  ,  I  Bros,  and  Co.,  of  London  and  Manehester.     We 

reiy  glaJ  to  be  able  t-o  say  that  the  report  thus  indiscreetly  circii- 
s  oiSy  the  mast  sha<lowy  foundation.  The  very  latest  adviees 
t  the  teniijorary  difficulty  occasioned  to  this  eminent  firm  by  the 
tnic  fall  in  cutk>n  haa  been  tided  over,  the  confidence  and 
?  of  ^'  I  ibling  Messrs.  Neill  ivnd  Co.  to  meet  the 

in  a  I  it.  their  hi^li  credit  wholly  mvimi>aired, 

,(  '     '       -'         fortune  for  c^.»tton  culture 

onterpriae  of  this  one  fi.rm 

1  a  f\iaion  with  the  National 

t  year. 
I  Bank, 


..d  by 


Go 


676 


Monetary  Intelligence, 


and  starts  with  the  nominal  capital  of  £3,000,000  of  wh 
subscribed,  and  nearly  £5«»,0<  HJ  paid  up.  Of  this  the  Nat 
£500,iXK)  nominal,  and  £100,000  paid  up ;  the  Financia 
8cribe<l,  and  £150,U00  paid  up ;  and  the  Oriental  itaelf  £ 
£;500,000  subscribed,  and  £105,0U0  paid  up.  With  resoui 
new  enterprise,  if  cautiously  and  intelligently  conducted, 
and  very  profitable  business, — independent  banking  o 
specially  adapts  to  the  habits  of  the  country,  yet  offerint 
tees,  being  one  of  the  chief  commercial  wants  of  the  Leva 
return  of  the  Imperial  Ottoman  Bank  and  its  branchei 
ending  February  28,  shows  an  increase  of  4,()70,825p.  ii 
344,2U0p.  in  the  notes  in  circulation,  as  compared  'w 
account.  In  the  bills  discounte<l  there  is  a  diminution 
and  in  advances,  on  public  securities  and  merchandise  of 
Treasury  balance  has  also  fallen  to  l,129,l74p.,  as 
14,670,014p.  at  the  date  of  the  previous  return. 

IMPERIAL   OTTOMAN    BANK.      RETURN    OF   28tH   FEB! 
ASS£TS# 

Capital  not  called  up ... 

^    ,   r  at  Constaniinople         

'^^'^  j  in  the  Branches  

Bills  discounted,  and  other  securities  

Current  and  drawing  accounts  of  the  Imperial  Treasury 

Current   and  drawing  accounts— Debtors  

Advances  on  public  securities  and  merchandise     

Bank  premises  and  furniture  

Sundries  


UABIUTIEB. 

Capital     •••      •■•      •••      •••      •*•      •*•       •••      ••• 

Bank  note.  i„  circulation  {«„*C~&.      Z 

Bills  payable      

Current  and  drawing  accounts  of  the  Imperial  Treasury 

Drawing  and  current  account — Creditors        

Deposits  for  fixed  terms       

Dividends  payable      

Reserve 

Sundries 


Certified— E.  GILBERTSON,  Direcior^Q 


Honetarg  f  ntcllrigfenxc. 

MONETARY  RE\^EW  FOR  THE  MONTH  01 

The  appenratice  of  financial  and  commercial  affairs  durii 
hi't'Tj  ipaitt.  Till/  low  rules  of  money  have  not  stimulate 
and  till'  ileprt'ciatiMj  prices  of  proiluce  have  caused  fu 
mercjmtiJt;  eirclt^.  The  losses  in  the  principal  staph 
created  depresHioHj  the  effect  of  which  has  been  to  keep 
The  effect  of  the  strain  i>f  the  autumn  is  now  fully  peroa 


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Monetary  TuMlujeiu^e. 


677 


109'  of  t}ie#e  tlisasters  did  not  then  occur,  or  a  coinpliiff  Mnto 
re  ODBUcil.  The  intelligenee  of  the  a:sBaaRinatio]i  of  Mr,  Ftandsoi 
!)as  priKhtcetl  im  unmeoBe  sensation,  American  stocks  b^^ing 
iuHumfced,  a  InrgeadvanoehAvLngprevioufely  foilo'^ved  purfhasea 
Tender  of  General  I»e€'»  anny.  It  is,  however,  lioped  that  with 
rudencethe  state  of  thiDga  will  settle  down  ;  but  if  any  thiog  like 
»  shoidd  be  experienced  the  oouiequences  will  prf>ve  most 
I.  At  the  last  moment,  to  exercise  s  healthy  influence,  the 
lA  been  developed,  and  it  is  certainly  one  of  the  most  satisfact^iry 
*  years.  With  a  balance  of  nearly  ^£4,000,000  available,  the 
r  of  the  Exchequer  has  priTdently  rethiced  the  income-tax  2(1.  in 
,  the  duty  on  te^v  has  been  lowere*!  6f/,,  and  the  duty  on  fire 
has  been  placed  at  an  uniform  rate  of  Is.  6tf.  The  supply  of 
I  been  very  good  until  the  la^t  two  or  three  days.  In  addition 
ttal  required  for  the  new  financial  operations  of  Turkey,  there 
>me  withdral^ala  for  America.  The  demand  at  the  end  of  the 
I  carried  the  rate  to  4  per  cent,,  the  lowest  quotjitifms  for  fir«t- 
r.  The  favourable  feature  in  the  Budget  of  a  reduction  id  6<i.  in 
n  tea  has  already  caused  a  rise  in  the  price  of  the  leaf  of  2d.  per  lb, 
like  those  of  Messrs.  Budianan,Hamilt4jn  and  Co.,  of  Glasgow,  and 
slson,  Trittou  aud  Co.,  of  London,  it  will  prove  a  great  boon,  and 
bftbly  ijrevent  some  firms  from  actual  failure, 
Otis  fluctuations  hare  tiiken  place  in  English  feecuritjes.  The 
IS  now  to  advance,  aud  it  is  expecte<d  that  the  govemmeitt  broker 
[y  resiune  his  official  purdiaaes  to  the  extdtjt  ctf  nearly  £600,000 
of  the  oominissioneTB  of  the  national  debt,  and  the  sinking  fund. 
AS  been  a  good  demand  for  foreign  stooka,  but  although  pricein 
d  to  some  extent  in  the  conrse  of  the  month,  they  are,  with  but 
iona,  ai  nearly  the  same  quotations  as  at  the  close  of  March. 
fluotoaiions  have  been  in  tlie  Confederate  Loan,  which  haa  been 
ecUjiing  in  consequence  of  the  great  progress  mode  by  the 
oopa,  and  the  ultimate  surender  of  General  Lee.  Spanish  and 
towi,  have  been  speculatively  dealt  in  to  some  extent,  but  witb- 
ig  amy  considerable  fluctuations  in  the  values;  the  changes  that 
I  place,  being  due  more  to  the  internal  position  of  the  resjjective 
than  to  any  other  canoes.  The  Italian  loMi  continues  heavy , 
msiderable  disoount. 

'  ah  axes  have  been  generally  in  good  demand^  and  prices  for  most 

li2i^  desoriptions  have  shown  a  further  advancing  tendency ;  the 

-  -  upheld  by  the  stabdiiy  of  prices  in  the  otlier  departments, 

1  lied  favourable  nature  of  the  trafiic  receipts.    To  some  ex- 

'■"'"'^*-  ^*^re  for  a  time  unfavourably  affected  by  the  news 

iiTaJ  recovery  subsequently  took  place. 

..  t.  :;„iJ^  ^*-„itjs  have  been  generally  flat,  but  the  transaction! 

on  an  average  scale.     Some  of  iihe  new  undertakings,  however^ 

n  rather  more  stability,  purohaseA  having  been  made  under  the 

Q  tliat  such  shares  may  yet  attain  a  higher  premium.      Credit 

e  share*  have  oxlubited  rather  more  firmness,  but  tlie  dealings 

iv<!  not  been  particularly  active. 

ddce  markets  continue  very  dull,  the  recent  heavy  sptcnlationa 
usd  aogar,  witli,  in  some  cases,  their  disastrous  result«i,  are^  %ix\\ 
tepresaing  influence.  The  re<luction  iu  the  Bank  rate  of  discount 


-d  by 


Go( 


678  Notices  to  Correspomlenta. 

haying  failed  to  give  the  buoyancy  that  might  have  beei 
ooufi()ence  is  agiiin  restored  much  activity  cannot  be  ej 
details  of  the  Budget  were  published,  prices  became  rath 
of  tea  advanced. 


THE  GRAIN  TRADE. 
Thk  grain  markets  throughout  the  country  have  beei 
active  during  the  pant  mouth,  but,  as  is  usual  at  this  ] 
prices  have  in  general  had  an  upward  tendency.  The  imj 
all  descriptions  of  grain  have  been  considerably  ondei 
the  quantities  of  home-grown  brought  forward  hare  bee 
all  demands.  The  last  average  quotations  were  : — ^ 
qr. ;  barley,  30s.  Od.  per  qr. ;  and  oats,  22s.  7d,  per  qr.,  v 
of  about  Is,  3d.  per  qr.  on  each  description  since  last  mo 
The  Gazette  returns  for  England  and  Wales  have  be< 

Week  Wheat.  Weekly 

•nding,  Qn.  sold.  Average.  Dat 

March  26  71,002      ...        38    4        .•.  1 

April     1  73,024       ...        38  11         ...  1 

„        8  75,137      ...        39    8        ...  1 

„       15  61,606       ...        40    1         ...  1 

„       22  62,003       ...        39    7         ...  1 

The  importations  since  the  harvest  of  1864  have  beei 

Wheat.  Oth( 

•  C\Tt«.  ( 

Thirty.five  weeks  ended  18th  March      11^20,766  16,9 
Five  weeks  ended  22nd  April  ...  677,117    1,7 

11,797,88a  17,C 
And  the  weekly  averages  have  been  :— 
Thirty-tive  weeks  ended  18th  March  ...       820,000       4 
Five  weeks  ended  22nd  April      115,000       d 

LcflB    205,000       1 

STATE  OF  TRADE. 
In  the  early  part  of  the  month  business  affairs  wen 
looking  up.     That  is  scarcely  the  case   now.      The 
America. have  induced  an  increased  extent  of  caution. 

HOTlCl^S  TO  CORRESPOlfDENl 

We  have  arransred  in  fntnre  to  iasne  a  donMe  nn-mber  in  Febrrairf 
fcrmerly  ia  May  and  November  I  l»i>i  luw  bean  rendered  naoeasaiy 
the  MeotmKs  of  the  Baak.>i  and  Discount  Oomp-mias,  which  will  be  aiw 
In  the  pa^os  of  the  Suid-er'^  Mugiiziue.  We  shjill  ulrto  jfive  the  pn> 
Credit  and  Finance  CDrapanien  ae  they  aro  more  <st  )m«  atscK-ij 
that  our  subjicribera  aiul  rea«lor.^  ca<i  refer  to  theo2  without  dittk 
I  will  plejiee  forward  coramuuicaliojis  ad  .re8se<l  to  the  K<.iiior,  No.! 

1  icnpttons  and  orders  as   usual   to  Me>^a.  GhDomhridffe   and  Soni 

Messrs.  Waterlow  and  Sons,  CariM-iitcra"  Hall,  London  Wall. 
'  ^^t^^^f\^^^  FiKAxriAi.  AxscDorKs.— It  will  be  porceivwl  from  noi 

,  Eaitor  or  the  Banken  M.i;,a2inf  is  collectinar  and  arninjrinflr  %  series  r 

♦  S*   ,  "^?**'^**«-.   ^/V  ooutnbntionci  from  subscribers  mnd  reodei*  c* 

>  thanJcl ul W  received,  particular Iv  if  t h e  eubj ect- luatter  Hh^U  n<A  have  i 

\  P""^-,^o"unjf  personal  or  offensive  will  receive  publicity. 

coti      ^*"     "^  correapondont  T.   for  hia  two  anecdotoa»  which  w 

^  Two  or  three  oommonicationa  bUU  stand  over. 

Digitized  by  VjOOQIC 


679 
BANK  OF  FRANCE. 

DEBTOR. 


March  30. 

April  6. 

April  13. 

April  30. 

t.           c. 
182,500,000    0 

182,500,000    0 

T.             C. 

182,500,000    0 

182.50b,fO0    o' 

7,(M0.807  97 

7.042,671  82 

7,M2,904  27 

7,043,377  64 

22,106.760  U 

22,106,760  14 

22.105,760  14 

22,105,760  14 

4,000,000    0 
764,7tt3,126    0 

4,000,000    0 
786,4^4.776    0 

4,000,000    0 
806,557,976    0 

4,000,000    0 
811,761,176    0 

7,386,716    8 

6,951,784  46 

6,236,498  76 

6,001,694  14 

142,289,079  67 

131.918,748  57 

26,367,862    0 

l,402,ei2  76 

91,986,311  78 

13s,7ii«,379  38 

as,3-t2,521    0 

1,391,402  76 

M,560,231  67 

106,107.145  29 

24,727,502    0 

1^091,967  78 

96.488,018  62 

106,215,916  76 

26,725,417    0 

1,020,437  75 

7,977.748  48 

8.622.006  18 

9,017,213  23 

9,502,740  80 

2,789,444    6 
8,788,381  76 

2,789,444    6 
15,315,800  15 

2,789.444    6 
12,415,370  36 

2,789,414    5 
11,566,192  18 

309,279,294  38 

1,299,098,816  61 

1.279.176,042  42 

1,287,610,364    7 

CKBDITOR. 


March  30 

April  6. 

April  13. 

April  20. 

F.            .C. 

a.          c 

y.          0. 

».          o. 

466,090,812    6 

4&^945.361    7 

432^76,299  38 

430;926,270  18 

437,636  M 

3.195,639  94 

726,756  29 

820,391  15 

261,992.368    7 
271,21  *,94a    0 

260,619.532  96 
269.779,048    0 

261,867,452    8 
270,932,779    9 

260,634,900    0 
272,974,241    0 

19,378,796  36 
3,094,332    0 

19.160,596  35 
3,370.195    0 

20,514.696  36 
3,506,995    0 

21,200,796  36 
3,122,796    0 

H220.100    0 
8^739.100    6 

14,802,700    0 
8,931.200    0 

14.416,200    0 
8.890,000    0 

14.672,700    0 
9,076,760    0 

29,188,000    0 
17.671,250    0 

29,562,100    0 
17.930,350    0 

29,391,2^10    0 
17,921,660    0 

29,520,100    0 
18,172.050    0 

6W,200    0 
329,950    0 

645,100    0 
338.350    0 

566,100    0 
834,950    0 

661.200    0 
347,350    0 

60,000,000    0 

60,000,000    6 

60,000,000    0 

60,000,000    0 

12.9Si:).750  14 
*>.666,737  91 

12,9S0,750  14 
36,558,737  91 

12,980,750  14 
36,667,487  91 

12,PS0,760  14 
36,557,187  91 

100.000.009    0 

100,000,000    0 

100.000.000    0 

100,000,000    0 

8.4o2^99    0 

8,471,280    0 

8,471,320    6 

8.471.365    0 

974,»87  66 
7,416,69^  36 

1.031,897  86 
6,876,109  96 

1,045.572  21 
8,275,b35     6 

1,260,018  85 
6,10»,»98  55 

309.279,294  96 

1,299,098,846  61 

1,279,176,94a  42 

1,287.610,364     7 

Digiti 


ized  by  Google 


080 

t'LUOTUATIONS  IN  ENGLISH  AND  FOBEI 
RAILWAY  SHARES. 


Piice  on 
March  28. 

Highest. 

Engiish  Funds. 

Consols 

••• 

89^  to  89i 

911 

Exchequer  Bills 

••• 

3  to  6pm 

8  pm 

FoBBiGN  Stocks. 

Brazilian         

••• 

_ 

102} 

Buenos  Ayres 

... 

... 

92 

Chilian            

... 

— 

105 

Dutch  2^  per  cents.   ... 

... 

— 

63 

Mexican          p. 

..*. 

261 

271 

P^ruvi?^  4}  per  cents. 

... 

— 

85J 

Russian 

... 

91 

91 

Spanish 

.•• 

48i 

481 

Turkish  6  per  cents. 

... 

94 

94i 

Ditto  4  per  cents. 

... 

100 

101 

RATt.WAY  ShABBS. 

Brighton         •••         ..# 

••• 

id&j 

1081 

Caledonian      

... 

132 

133 

<?reat  Eastern 

... 

m 

481 

Great  Northern 

••• 

129} 

134 

Great  Western            ^. 

... 

74} 

76} 

Lancashire  and  Yorkshire 

••• 

1151 

123i 

London  and  North  Western... 

117J 

124 

Midland 

••• 

132 

137i 

North  Staffordshire  ... 

... 

77J 

79 

South  Eastern 

■•• 

84 

87 

South  Western 

... 

96| 

971 

York,  Newcof^ile,  and  Berwick 

107J 

112} 

York  and  North  Midland 

... 

99i 

104 

East  Indian     

.•• 

102 

104^ 

Northern  of  France    ... 

... 

— 

41J 

CREDIT,  FINANCE  AND  DISCOUOT 


Anfltrtiliaii  Mort^g^,  Laiicl 

and  Finance  (Lim.) 
ConBolidated  Discount  (Tjim.) 
Contract  Corporation  (Li  ni.) 
Credit  Foncier  of  Mauritiua 

(Limited)      

Crtdit  Foncier  and  Mobilier 

of  i^nglaud 

Ditto 
Discount  Corporation  (Lim.) 
East  India  Financial 
Egyptian  Commercial   and 

Trading       

English  and  Foreign  Credit 
Financial  Corporation 
Financial  Discount  (Lim.)... 
General  Credit  and  Finance 

of  London  (Lim.) 

International  f^andal 

Society  (Lim.)        

.International  Oontraot 


London 

Paid.    l«t«8t 

Prico», 


25 

S 

« 

60 

10 

6 

100 

6 

1} 

60 

10 

6 

20 
20 

6 
9k 

% 

100 

20 

14 

60 

71 

6 

20 

4 

3 

60 

7* 

6 

100 
60 

2 

10 

4 

23 

4 

61 

20 

S 

6 

60 

10 

7* 

Digitized  by  LjOOQIC 


Imperial    Iferoi 

(Lim.)... 
International  La 
Joint  Stock  Disc 
Land  Credit  of  I 
Lan<l  Securities 
London    Financ 

tion  (Lim.)  ... 
London  Mercant 
Mauritius  Land, 

Agency  (Lim.) 
National  Discoui 
National  Financ 
Oriental  Financ 
Ottoman  Financ 

tiott-^Lim.)  ... 
Soci^Finanda 

(Lim.) 

South  AAiam  M 

Inyestmeni  (L 
Wamukt  financ 


CM 


JOINT-STOCK  BATIKS. 


London 

Bhtf«, 

Pftld. 

latest 
Pnc«s 

1 

« 

« 

100 

60 

lU 

60 

25 

57 

50 

10 

«4 

100 

26 

S3 

100 

16 

221 

20 

6 

7 

60 

m 

12 

60 

15 

Hi 

80 

21 

m 

40 

40 

70 

40 

40 

09 

25 

2.^ 

31 

100 

50 

133 

20 

7 

6 

100 

26 

22 

60 

7i 

H 

10 

10 

17 

60 

25 

44 

20 

10 

10 

60 

60 

44 

ao 

15 

17i 

ao 

SO 

28 

25 

26 

53 

100 

60 

1071 

100 

25 

41 

so 

20 

... 

25 

85 

36 

10 

4 

m 

100 

26 

22k 

100 

15 

14 

60 

5 

fi| 

2D 

6 

4 

to 

20 

20 

00 

15 

11* 
121 

60 

16 

100 

35 

10 

100 

25 

20 

100 

15 

10 

100 

20 

30 

20 

10 

lei 

25 

25 

27 

26 

5 

51 

SO 

4 

«t 

12|      10k 


London 

Shax* 

Paia 

lat«Bt 
PrlcM 

London   Bank   of  Scotland 

(Lim.)           

100 

13 

6 

London  and  Brazilian  Bank 

100 

40 

47 

London,  Birmingham  &  8th. 

SttiObrdMhi re  (Limited)   ... 

100 

22 

13 

London,  Buenos  Ayrea  ajid 

River  Plate,  Limited 

100 

40 

49J 

Ditto,   ^ew,    i«aued    at 

Upm 

26 

10 

12 

London  Chartered  of  Anstralia 

20 

30 

i* 

Ii<3nrlon  and  Coimty  Bank  ... 

6«) 

20 

78 

London,     Hamburg,     Cont. 

Exchange  (Lim.) 

100 

IS 

1 

Loudon  Joint  Stock  Bank  ... 

5<) 

15 

r-' 

London  &  South  African  Bk. 

20 

20 

22 

London  and  South  Weatem 

(Limited)      

100 

20 

20 

-  Ditio,  ditto,    New 

100 

12^ 

12  k 

London  and  Venezuela  (Lim.) 

50 

10 

6 

London  A  Westminster  Bank 

100 

20 

96 

Merchant  Bank  (Limited)  ... 

100 

23 

26 

Mercantile  Exchange  (Urn.) 

60 

10 

7k 

Metropolitan  and  l*rovinciad 
Bank,  Limited 

100 

20 

17 

Ditto.  New          

100 

10 

7 

Midland  Bank  (Limited)    ... 

100 

20 

IS 

National  Bank...        

50 

30 

U/ 

Ditto,  New          

50 

25 

02 

National  of  Liverpool  (Lim.) 

100 

10 

17 

National  I*rovin(ual  Bank  of 

£ngland       

100 

43 

... 

Ditto,  New          

20 

12   • 

... 

Ditto,  ditto 

20 

12 

New  South  Wales      

20 

20 

43i 

New  Zealand  Bank  Corpora- 

lion  (Limited) 

10 

1 

1 

Ditto,    New    ...        .M 

10 

1 

Northwestern           

20 

7* 

lit 

Oriental  Bank 

25 

25 

63i 

Do.  New,  issued  at  20  pm. 

25 

25 

Provincia'    Banking   Corpo- 

ration ...        ... 

60 

6 

Ditto,  ditto 

50 

10 

n 

lYovincial  Bank  of  Ireland... 

nx) 

25 

874 

Ditto.  New           

10 

10 

Bclnde,  Punjaab  and  Delhi 

(Limited)      

20 

10 

81 

Ditto,  issued  at  2  pm. 

20 

2 

South  AustraUan       

25 

26 

35 

South  Kaatom  (Lim.) 

25 

10 

8 

Standard  of  Britiah  Afirica 

(Limited)      

Ditto              ditto 

100 

26 

m 

100 

25 

m 

Do.  New,  iAsued  at  6  pm. 

100 

10 

H 

Union  Bank  of  Aastralia    ... 

25 

26 

66i 

Dnion  Bank  of  Ireland,  lim. 

100 

22 

18 

Union  Bank  of  London 

60 

15 

54k 

54 


Digiti 


ized  by  Google 


Banb  of  OSnslanli  SMeetilp  K 

Aocoaat,  parsaant  to  the  Act  7th  and  Sth  of  Yictoria,  cap.  32,  for  the 

ISSUE  DEPARTMENT. 


• 

1S6.5. 
March  29. 

1S63. 
AprU  5. 

Notes  issued        

£ 

20,221,100 

29,051,650 

Grovernmeiit  debt 

Other  securities 

Gold  coin  and  bullion   ... 
Silver  bullion       

li.ois.ioo 

3.(iii.9(X) 
14,574,100 

11.015.100 
3.ti.n,5K>0 
14,401,650 

20,224.100 

29,Oo  1.650 

BANKING  DEPARTMENT. 

Exchoqn»'r, 
of  NAtioiiOfl 

IMW. 
March  29. 

1865. 
April  5. 

Proprietors'  capital 

Rest 

Public    deposits    dncltidintj 
Savin?9  B:inkH,  CommiB*i»ner 
Debt,  anil  Dividend  Accounts) 

Other  Dei)Ot«its     

Seven  day  aud  other  bills 

£ 

14,5.53.000 
3,M23,(537 
0,'ia».43a 

13,478,212 
437,424 

£ 

14.553,00i> 
3,122,231 
9,331,615 

14,172.353 

4449,  VJS 

42^31,733 

41,tt-2i).097 

Government     Securities 
Dead  Weifrht  Annuities) 

Other  Securities 

Notes          

Gold  and  Silver  coin     ... 

[including 

11,023.211 

21,150,H43 

9,t72,7iiO 

78J,'>i<9 

11.110,«^3S 

21. 515. 4.31 

8,UJ»..»i5 

653,7>3 

42/231,733 

41,62i),097 

THE   EXCHANGES. 


Anlsterdam,  short 
Ditto  3  months 
Rotterdam,  ditto... 
Autwcrj^.  ditto  ... 
Brussels,  ditto  ... 
DahiburK',  ditto   ... 

Paris,  short   

Paris,  3  months  ... 
Marseilles,  ditto  ... 
Frankfort,  ditto  ... 
Vienna,  ditto 

Trieste,  ditto 

Pctcrsburph,  ditto 
Madrid,  ditto 

Cadiz,  ditt<^   

Leghorn,  ditto     ... 

Milan  ...        

Genoa,  ditto 

Naj>Ics,  ditto 

Palermo,  ditto 
Messina,  ditto 

Lisbon 

Oporto 


March  31. 

AprU  7. 

11    17 

11     17i 

11    Ifti 

11    ^^k 

11    m 

11    i-i 

25    52i 

25    Bi) 

25    62i 

25    60 

13      9 

13      9 

25    27i 

25    22i 

25    50 

25    47| 

25    60 

25    474 

121 

121 

11    37i 

11     35 

11     45 

11     35 

31 

31 

47^ 

475 

48 

4S 

25    60 

26    674 

25    60 

25    67i 

25    60 

25    574 

25    60 

25    674 

25    m 

26    674 

25    (iO 

26    674 

61J 

6U 

61t 

614 

PRICES  OP  BULLION. 


Poreiprn  Gold  in  Bars  (StandaM) 

Mexican  Dollan*  

Silver  In  Barn  (Standard) 


Per  Ot. 
£  R.  d. 
S  17  9 
0  0  0 
0    0    0 


PtrOa. 
£  8.  d. 
8  17  9 
0  0  0 
0    0    0 


Digitized  by  LjOOQIC 


SK^tefelp  Cirrulatioii  ISe  turns* 

9  Victoria^  e.  32/  extracted  from  the  Loxdoic  Gazettk. 
PRIVATE    BANKS. 


le  Bank  . 


e  Bank  , 
and  Co.. 
Co 


Author- 
ized 
Ifebue. 


AVERAGE  AMOUNT. 


_ 


March  11. 


£ 

11,849 

48,461 

37,223|. 
I7.i82li 
34.218'; 
27,090'! 


hBank 


£ 

11,868 

21,453 
18,074 
3.455 
27.33^ 
14,092 

75,069  !  61,471 
1*^,161 1  14,083 
10,028 1 
48.-77 


March  18. 


3azzard  Bk. 
Js&Co.  ... 


\  Bank 

nk 

lock  &  Co. 
IgeshireBk. 


3ank 

y  &  Co. 


B  &  Co. 


26,7»7- 
29,^571 
82,361^ 
43,457 
55,153 
36,829 
38,816 
68,271 
33,794, 
12,745 
3,201 

25,744 
49,916 

33,671 
23,597 

3,436  I 
2<;,o82' 

4«,704l! 
49,869! 

12,045  I', 

2»,527i; 
77.154I, 

9,3«7'; 
13,332|1 


March  25. 


Evans  &  Co. 

ndCo. 1   41,304  I 

27,2371 

Bank    20,674 

10,657 

letford  Bank      77,400 

^    86,218 

^m^^[ I    10,664 

'"*'..*/. I    48,807 

I  112,280 
53,392 
69,637 
37,^94 
14,102 
6,681 
6,322 
14,524 
30.372 
19,9/9 
K6,cy 
\^778 

I  Bank    11    38,764 

11  *2i.90' 


obins&Co. 
Dwer  &.  Co. 
ftortford  Bk. 


rely  and  Co.. 
i-llull  Bank 
JoantyBank 


6,777 
20,861 

14,144 
19,091 

49, 2H 
23.798 
21,095 
34,668 

25,325 
3^,678 
22,190 
11,370 

2,599 
11,822 

38,585 
26^116 
12,187 

16,646 

29,53' 

26,190 

4*556 

14.596 

73. '»9 

6,625 

9,576 
29,925 

29.922 
I  5»557 
10,168 
63,361 
85,175 
6,240 

35.393 
72,287 
48,669 
36,277 
19.834 
5»857 
4.920 
5,666 
10,071 
22,092 
18,208 
33.489 
5*469 
!  32,062 

19.510 


£ 
11,415 
21,992 
17,187 

3,547 
26,956 
14.170 
60,588 
14,390 

6,670 
19,980 
13,837 
19,017 
48,121 

23,439 
20,827 
33.030 
18,965 
38,925 
21,578 
io,;oi 
2,746 
11,582 
39.364 
25,716 
12,238 

3,033 
16,270 

29.509 
24.843 

4,245 
15.222 
74.503 

6,449 
10,387 
33.040 
27,222 

5.585 
9,702 

61,789 
85,5»9 
5»902 
34,949 
71,179 
48,492 
35.570 
20,093 
5.605 
4*.  890 
5.449 
10,136 
21,774 
18,129 
32,730 
5.099 
32,064 
18,88* 


April  1. 


£ 
11,706 
22,420 
17.041 

3,701 
27,841 
14,258 
60,915 
14,670 

6,39s 
20,385 

13.54' 
19,401 
46,850 

24.144 
21,081 
3^.746 
12,125 

38,899 
21,450 
10,835 

2,833 
11,737 
39,398 
25.515 
12,68c 

2,867 
16,300 
29,116 
26,109 

4.309 
15,612 
-56,207 

6,597 
10,605 
34,070 
24,920 

5.835 
10,235 
62,033 

86,433 

6,206 

35. ^'o 

75,323 

47.^97 

35.869 

19,660 

5.630 

4,771 

5.355 

10,373 

22,676 

17,850 
32,941 
5.300 
31,250 
18,448 


12,320 

22,434 
17,267 

3,993 
28,760 
14,500 

64,275 
14,290 

6,541 
21,731 
14,770 
18,024 
48,21^ 
24,423 
21,060 

32,752 
11,845 

40,575 
22,539 
11,611 

1,957 

12,201 
39,461 

25.33* 

12,375 

2,985 

16,875 

29,694 

27,922 

4.268 

15.197 

76,578 

7,422 

10,719 

35.265 

25*520 

6,235 
10,150 
62,890 
85,430 

6,561 

34.9^5 
75.773 
48,495 
36,647 
20,757 
5,855 
4,780 

5.447 
10,269 

2^,175 
20,024 

33.39<' 
5.342 
32.652 
19.599 


Digitized  by  isjOO^iC. 


684 


WBKKLY    RKTURN8   O?    BAKKB   OF    188 


NAMB  OF  B\NK. 


57  Ipswich  8c  Needham  Market  Bank 

58  Kentish  Bank— Mercer  &  Co. 

59  Kington  and  Radnorsliire  Bank 

60  Knaresborough  Old  Bank  

61  Kendal  Bank    

61  LongtoT  Staffordshire  Bank  ... 
6j  Leeds  Bank  

04  Leeds  Union  Bank 

65  Leicester  Bunk 

66  Lewes  Old  Bank 

67  Lincoln  Bank  

68  Llandovery  Bank&  LlandiloBank 

69  Loughborough  Bank 

70  Lymington  Bank 

71  Lynn  Regis  and  LincolnshireBank 

72  Lynn  Kegis  and  Norfolk  Bank  .. 

73  Macclesfield  Bank   ^„ 

74  Manningtree  Bank  

75  Merionethshire  Bank   

76  Miners*  Bank    , 

77  Monmouthshire  Agn'ealtural  and 

Commercial  Bank 

78  Monmouth  Old  Bank 

79  Newark  Bank  , , 

80  Newark  and  Sleatord  Bank  ., 

8i  Nevtbury  Bank 

8«  Newmarket  Bank 

83  Norwich  Crown  Ban  k and  Norfolk 

and  Suffolk  Bnnk 

84  Norwich  and  Norfolk  Bank   

85  Nottingham  &  Nottinghamsh.Bk 

86  Naval  Bank,  Plymouth  

8 7  New Sarum  Bk. — Pinckneys, Bros. 
83  Nottingham  Bank    

89  Oswestry  Bank 

90  Cxford  Old  Bank 

91  Old  Bank,  Tonbridge 

9*  Oxfordshire  Witney  Bank 

93  Pease's  Old  B^nk,  ituU  

94  Penzance  Bank    

05  Pembrokeshire  Bank   

96  Reading  Hank — SImonds  &,Co.... 

97  Reading  Bk.—stephcni.Blandj  A  Co. 

98  Richmond  Bank,  Yorkshire    

99  Rochdale  Bank 

»cio  Royston  Rank  .., 

»oi  Rngby  Bank 

loi  Rye  Bank 

«03  Saffron  Waldcn& North K»;cxl?k. 

104  Salop  Bank  

105  Scarborough  Old  Bank   

>o6  Shrewsbury  Old  Bank 

107  Sittingbourne  and  Milton  Bank... 

108  Southampton  Town  &  County  Bk. 

109  Southwell  Bank   , 

I  >o  Southampton  and  Hampshire  Bk. 

Ill  Stafford  Old  Bank 

Ua  Sf.«njford  and  Rutland  Bank 

1 1 3  Shrewsbury  and  Welsh  Pool  Bank 

1 14  Taunton  Bank 

Its  Tavistock  Bank  ....w '"' 


Anthor- 
ized 
Issue. 


£ 

80,699 

19,895 

26,050 

11,825 

44,663 

5.6^4 

53.357 

37,459 

3M^i 

44,836 

100,342 

3»,945 

7,359 

5,038 

42,817 

13,917 

15,760 

7.692 
10,906 
18,688 

29,335 
16,385 
28,788 
51,615 
36,787 
23,098 

49,671 

i05,5i9 

10,866 

27,321 

'5,659 
31,047 

18,471 
34,391 

13,183 

11,852 
48.807 

1 1,405 
12,910 
37.519 
43.271 

6,889 

5,590 
»6,393 
i7,2<;o 
29,864 
47.646 
22,338 
24,813 
43,»9i 

4,789 
18,589 
14,744 

6,770 
14,166 
31,858 
25,336 
29,799 
'3.421 


Digitized  by  LnOOQlC 


RBTVBNS    or    BAMKS   OP     I8SCS. 


685 


Author- 
i?ed 


AVERAGE  AMOUNT. 


It- 


Bank...!, 

g  Bank..  \ 
n  Bank..' 


lire  Bank 
set  I 


AUonBk. 


hire  Bk.  ' 
lire  Bank 


W.  Fryer  I 

tank I 

iflblkBk. 


£ 

10,026 

13.470 
i».559 
»3.53» 
10,801 
17,003 
25,136 
17,064 

30.504 1 
6.528; 
46,1581 
14*^58  i 
25*892  i 
16,461: 
37,602! 

59*713  I 
7,602  j 

87,4481 
11,867 
53.060 
13,229 
46,387 


March  11. 

March  18. 

March  25. 

April  1. 

£ 

£ 

£ 

£ 

7.647 

7,893 

7,904 

8,<82 

8,829 

«.9i4 

9.405 

9.718 

11,450 

11,317 

11,690 

".525 

13,401 

12,977 

12,860 

12,]{C0 

5.683 

6,077 

6,204 

6,589 

i<,638 

I4,i8« 

14,290 

i5,<;o2 

8,758 

8,100 

9,497 

8,9^8 

6,066 

5.  770 

5,580 

5,617 

18,680 

18,462 

18,393 

18,427 

1.853 

1,883 

2,086 

2, 166 

42,206 

40,700 

38,061 

39,610 

14,035 

13.920 

13.^^13 

13,624 

io,ci3 

9.905 

9.803 

10,452 

15.647 

15.410 

14.864 

14,906 

33,174 

33.248 

33,633 

34.358 

34.806 

33.930 

35,235 

36,245 

3.741 

3.727 

3.376 

3,214 

48,371 

46,333 

46,901 

46,8«o 

8,440 

6,449 

5.401 

5.481 

38,483 

38.030 

37,580 

38,555 

9.696 

9.095 

8,890 

9.348 

38,096 

36,966 

36,286 

36,162 

[NT  STOCK  BANKS. 


ny  

my    

Company 


ikinp  Co. 
ti'ord»hire 

I'Bk.'Co. 
inj:  Co  .. 
reBk.Co. 
Company 
nking  Co. 
inkingCo. 
Bank 
h  Bk.  Co. 
nkingCo. 
ckBk.Co. 
Company 


)mpany , 


kinj?  Co,.. 
Jnion  Bk. 

jy 

•0  Bk.  Co. 

>any  

ompany... 
iking  Co.. 
Warwick-I 


nk 

;s.6ai)k... 
inking  Co, 
i  England 
mpany 


12,225 

9,563 
49,292 

9.418 
32,681 
20,084 

60,701 
10,421 

35.395 
28,734 
16,251 
144,352 
25,61c 
19,972 
37,^'96 
20,093 

26,134 
155.92c 

18,534 
37.354 
29.333 
13,733 
44-137 
1,503 
28,059 

64,3 1 ' 
86,060 
51,620 

13.875 
10,21  (; 

35.813 

29,477 

442.371 

1  63,939 


11,270 
9.317 

48,568 
9.473 

30.345 

19,701 

43.361 
9,526 
26,681 
16,003 

11.845 
97.146 
23.625 
19.494 
30,277 
18.633 
23.827 
133.454 
15.948 
31,801 
30,061 
11.538 
34,929 
1.485 

63,892 
55.266 
47,216 

11,608 
9,171 

27,554 

24.474 

,400.245 

I  39,503 


11,378 
9,278 

48,866 
8,175 

29,941 

20,087 

46,644 
9,665 
27,671 
15.798 
12,231 

96.555 
23.74» 
19.^56 
26,868 

20,155 

24.999 

130,706 

15.929 
31.976 
30,568 
11,228 

35.-88 

1,490 

26,590 

61,443 

54,660 

45,893 

11,260 

9.143 
16,219 

23,521 
402,281 

40,425 


",945 
9.261 

48,480 

7,490 

29.781 

20,123 

47.990 
9.360 
28,320 
14,661 
11,934 
96,247 
24,5:1 
19,601 

23,994 
21,087 

24,795 
131,162 

15,797 
3', 851 
28,004 

11.137 
33.761 
1,484 
26,614 
59.848 
55.338 
47,117 


11,986 
9.012 

49.053 
7,950 

29, 360 

19,846 

49.4'?8 
9,592 
28,988 
15,112 
12,338 
99.425 
24,700 

19,994 
23,805 
19,071 
23,796 
133.185 
15,693 
30,898 

26,535 
11,381 

33.230 
1,542 
26,222 
59.977 
57.575 
48, 120 


10,922  '  10,700 


9.300 

26,079 

24.314 

405,820 

40,081 


9.485 

28,739 

26,753 

416,823 

41,518 


Digitized  by  Lj 00^ l€  ' 


686 


WEEKLY    RETURNS   OP    BANKS   OF 


NAME  OF  BANK. 


35  Northamptonshire  Union  Bank 

36  Northampionsliire  Banking'  Co. 

37  North  and  South  Wales  Bunk.., 

38  Fare's  Leicestershire  Banking:  Co... 

39  Saddlcworth  Banking  Company  .. 

40  ShotheUi  Banking  Company 

41  Stamford, Spakling&BostonBk. Co 

42  Stuckey's  Banking  Company    

43  Shropshire  Banking  Company 

44  Stourbridge  and  Kidderminster  Bk. 

45  Slielhcld  and  llnllamshire  Bank  ... 

46  Shemehl  &Hotherhain  Jt.  Stock  Bk. 

47  Swaledale  and  Wensleydalc  Bank,. 

48  Wolverhampton  &  Statfordsh.  Bk.. 

49  Wakefield  and  Barnsley  Union  Bk. 

50  Whitehaven  Joint  Stock  Bank     ... 

51  Warwick  and  Leamington  Bk.  Co. 

52  Westof  Eng.&  S.Wales  DistrictBk. 

53  Wilts  &  Dorset  Banking  Company 

54  West  Riding  Union  Banking  Co.... 

55  Whitchurch  and  Ellesmere  Bk.  Co. 

56  WorcesterCity  and  County  Bk. Co. 

57  York  Union  Banking  Company  ... 

58  York  City  and  County  Banking  Co 

59  Yorkshire  Banking  Company 


Author- 
ized 


Ib^ue.   !  March  11.1  ]^l 


I       & 
;    84.356 
26,401 

63.95 » 

'    ^9,;C0 

"8,1^2 

35.84? 

55.7i« 
356*976 

47,95 
;  56,830 

23.5^4 
5^496 
I  54.372 
'  35.378 
I  14,604 
,  31.916 
'  37,124 
I  83,555 
76,161 
'  34.029 
.  7.475 
i     6,848 

!  71,240 

I  94,695 
1122,532 


£ 

I  63,777 

j  20,013 

50,486 

I  51,683 

I    335 

I  35.9»o 

I  45»8^4 

,297,114 

I  35,602 

49,152 

I  23 > 548 

il  51.442 

.  4?,8ao 

l|  27,782 

14,4^0 

21,854 

27,6^2 

83.991 

74,338 

31,767 

4,730 

3»540 
70,666 

84,957 
119,572 


Sns!{)  anil  S>totd)  Cirrttlatton 

Average  Circulation,  and  Coin  held  hy  the  Irish  and  Scot 
weeks  ending  Saturday,  the  \st  day  of  Apr 

IRISH    BANKS. 


MAMS  OF  BANK. 


AntYioriied 
Cireuiation. 


Bank  ofTreland 3,738,428 

Provincial  Bank  of  Ireland  i  927,667 

Belfast  Bank   I  281,611 

Northern  Bank  ..'  243,44c: 

Ulster  Bank I  31 1,079' 

The  National  Bank 1!  852,269 

Totals  (Irish  Banks) 


Average  Circulntiein  d 
ending  at 

4^5  and 
upwards. 

Uod»r 

£ 

£ 

1,442,700 

1,011, 

398,920 
113,561 
93,460 

471. 

3c8, 
261, 

159,916 

3C9» 

5"?2,o7^ 

5^o, 

6, 354,494 '2.780, 030    2,9>3, 


Bank  of  Scotland   

Royal  Bank  of  Scotland    ... 

British  Linen  Company 

Commercial  Bk.  of  Scotland 
National  Bank  of  Scotland.. 
Union  Bank  of  Scotland  ... 
Aberdeen  Town  and  Co.  Bk.| 
North  of  Scotland  Bk.  Co... 
Clydesdale  Banking  Co.   ... 

City  of  Glasgow  Bank  I 

Caledonian  Bttnking  Co.   ... 

Central  Bank  of  Scotland...' 

ToTAL«(8cotch  Banks)...! 


SCOTCH    BAN 

300,48511  149,467 

216,451  I  166,915 

438,024!  151,496 

374,88c  169,315 

297,024  147,028 

454»346|  201,800 

70,133  5^»429 

I54»3i9  99,705 

274,321  118,591 

72,921  124,043 

53,434  18,485 

42,933  l^jJt'A 

2, 749, 271, ,1,419, 695  '2, 552,; 


KS. 

i96, 

307. 
290, 
326,. 

37», 
71, < 
99.' 

215,. 

211,: 
42, < 
3^,! 


Digitized  by  LjOOQ IC 


CIRCULATION    RKTUUXS. 


^VEEKLY  EETURXS   OP   BANKS    OF  ISSUE. 


687 


;Fixe<lIsane3.l    March  11.   [    March  19.    i    March  25 
£4,189.091  [£i,9i2.z23  |£2,866,6j9   £2,872,4/0 
i^^'^^iSr  \    ^.74^985  j    2.7+1,058      2,740  4S0 


7,415.448  ,    5,659»2o8  I    5,607,697  j   5,612,910 


April  1. 

^2,925.046 

2,796,^98 


>f  these  Banks  for 

£3.8>l.n^l 

2.750.L'  '5 


Private 
ing  as 

£^,650.2S9 

?  with  the  lietunijj 
ti  lu<<t.  itbhowi: — 
Private 

...       £OJ,3<Ji3 
^Stock 

17,599 

...       £'A2,797 


5.721,344 

A,^,'2n^'',  l^^^?7h'ow^.^*'^  "^^^'^  -^^-^ 
A  //«,-r<'ujr<?   m  the  noLea  of   Private 

Banks,  of ^    £'»ii  17a 

A  rf^rr*««  m  the  notes  of  Joint. Stock      ' 

^"^^''•^'^f _J9o.9o4 

Total  (fe<-rea*fi,  rb  comjiared  with  the 
sarue  period  oflasr  vear        ...  £437  ]9ft 

The  followiiiif  is  the  comparative 'sUite  of  *th« 

circulation  as  roL^anls  the  fixed  issues :  — 

The    Private    Banks   are  Ulow  their 
faxed  wsues         £1  29«>  rwr 

The  Joiut.Stock  Banks  are  b^low  ihcii     '      ' 
fixed  i&iues         470,152 


Total  BELOW  thou-  fixed  issues       ...  jei,765,16» 
IISH  &  SCOTCH  KETURNS  TO  APIilL  1,  1866. 


of  the  Tri.sh  and 
;k8  ending  April 
the  followiii-r  its 
1  of  these  Biiaka 

3anks  £3,60  t,3W 
ti  Banks  3,972,G:i3 


e banks 

Jt9,66G,{^^2 

trith  the  Returns 
I  Jit.  thev  sli'jw — 
ih  Banks  £H,i2U 
IchBanks  0<J,522 


The  fixed  issues  of  tlio  Irish  and  Scotch  Bank's 

at  the  i)rf^eut  time  are  given  iu  the  Bankina 

Aliunnac,  as  lolJovvs: —  ^ 

6  Banks  inlreland.  allowed  to  issue...  £6  354  ^W4 

i^  Bunks  m  ^Scotland,  allowed  toissue      2,7^9/271 

18  Banks  in  all,  allowed  to  issue   £9,103,7e3 

The  followinj?  appears,  therefore,   to  be  the 
coniiMinitive  state  of  the  circulation  :— 
Irish  Banks  are  below  their  fixed  issue     £660  134 
bcotch  Banks  are  above  theii-  fixod  i^wue  1 ,223^381 

Total  above  the  fixed  issue  £663  227 

^J^^  "mounts  of  Gold  and  SUvor  held  at  the 
head  ofhcesof  the  several  banks,  during  the  past 
month,  liave  been  as  iollows :—  * 

Gold  and  8ilvcrheld  liy  the  Irish  Banks  £2  111  '>91 
UoldandSUverheldbytheticotchBanks  2,'lBj,'713 

Total  of  Gold  and  Silver  Coin £4,r>2y,ooi 

Beinjr  an  incre^uso  of  £12,358  on  the  part  of  the 
iri.sh  Banks,  and  a  decrease  of  £(1,025  on  1 1 10 
part  ol  tlio  Scotch  Bankj,,  on  the  several  amounta 
held  by  them  during  the  preceding  month. 

'  THE  UNITED  laNGUOM  TO  APRIL  1,  1865. 

•  the  Note  Circuhition  of  the  United  Kingdom  for  the  month  ending 

:h  ending  1st  April,  as  compared  with  the  previous  month :- 


£104,751 

'  month  ending 

k  Banks  £160.909 
rCh  Bunks  50,i9^i 

, £2n,ifXi 


Mar.  29) 


ilarch.  4. 
£10.9.>1.9U 

2,7J»,(J06 


25,0 1.'-,.027 
4,o»>9,l5l 
6,702,589 


£35,116,770 


A]iril  4. 
£19, 750.331 
2,89l.0sl 
2,756.205 


Increase. 


17,599 


25,44>').623 
3.972,fM2 
6,691,36<J 


£35,067,615 


17,599 


17,599 


Decrease. 

201,607 
60,396 


262.003 
8,229 


£366,764 


V.?l^'f  ,  ^^"""^  ?''^'  ^®'^*'  "^'^^  ^be  °^o«th  ending  April  1st  1865 
.ciS,S  o??Sm-T  h  -^-''v''-,  «^--"^^  in  I'^rivate  ianks  of 
^Si«.rnf  J-n  ±at   ''^ '  1'°'''"  '*  ^"^''^  'hcrr.uc  iu  En-land  of  £722,638  • 

1st  April,  H-^  coniparod  with  the  same  poriod  last  voar  nn^sent^  f 
jnd  a  d.erea,e  of  £511,235  in  the  U„U.d  LngdL  ^  '  ^'^^^"'^  * 
ne^s  of'^L^  o--T;i'  ^""iL^^^  month  ending  March  29th,  gives  an 
.  .!,m!.aL  t ;  il'  '•  ''•  ^  a  comparison  of  this  with  the  Return  for 
i  last  v«^r  ^  '"^"^  ""^  ^400,355;  and  an  increase  of  £96?,uS 

10  Bariks  in  Scotland  and  Ireland  during  the  month  endinir  1st 
increase  of  £6,331  as  compared  >vith  the  R.aum  of  thrDrefioua 
as  compared  with  the  correipondiag  period  last  yeii        P'^"^*"* 


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Watprlow  and  Bona.  Printon,  Cupwicn'  Hall, 
Digitized  by  LnOOQlC 


E  BANKERS'  MAGAZINE, 

AND 


JUNE,    1865. 


THE  COURSE  OF  THE  MONEY  MARKET. 

irse  of  the  money-market  lias  rather  varied  within  the 
night  or  three  weeks.     It  is  yet  not  certain  which  way 

I  reality  tend,  but  at  present  it  seems  that  the  rates  will 
,  Both  the  position  of  the  Bank  of  England  and  that  of 
k  of  France  continue  gradually  to  strengthen,  and  if 
:ly  accounts  shall  exhibit  further  improvement  it  will  not 
before  we  see  a  fresh  reduction  in  the  rate.     Although 

not  an  end  to  commercial  disturbance  here  and  in 
ad  probably  it  will  be  some  two  or  three  months  before 

of  the  character  lilvc  those  which  have  occurred  at 
will  be  exhausted,  still  the  public  are  now  so  thoroughly 
L  for  them  that  they  occasion  little  alarm,  except  in 
ircles  where  losses  are  likely  to  be  made.     It  is  quite 

II  some  of  these  disasters  are  not  wholly  the  consequence 
ill  in  produce,  but  it  appears  they  are  likewise  brought 
rough*  heavy  speculations  in  shares.     The  rage  in  Bom- 
other  parts  of  India  for  gambling  in  securities  like 

the  Reclamation  Company,  have,  it  is  found,  involved 
lumber  of  the  merchants,  both  native  and  foreign,  and 
en  reaction  in  those  and  in  the  value  of  cotton,  &c.,  has 
ral  of  these  houses  "high  and  dry.'*  It  is  generally 
;ed  by  those  well  conversant  with  Indian  affairs  that, 
tanding  the  state  of  panic  lately  prevailing  at  Bombay, 
*antile  community  will  get  through  there  better  than 
[,  and  that  though  losses  have  been  made,  there  yet 

a  balance  of  profit  greatly  in  favour  of  the  principal 
Whether  the  same  remark  will  apply  to  China,  it  is 
to  state,  because  no  strong  compensating  influence  has 
in  the  situation  of  the  shai'e  market  there  to  adjust 
.  XXV.  55 


Digiti 


ized  by  Google 


69Q 


The  Course  of  the  Money  Mar 


the  losses  on  tea  and  the  other  staples  which 
great  a  depreciation.  From  this  point  it  is  a 
have  faihires  of  importance,  one  or  two  ha^ 
announced  by  telegram. 

It  was  no  doubt  in  consequence  of  the  disc 
the  advices  from  Bombay,  coupled  with  the  fi 
American  war,  that  acted  upon  our  money  m 
part  of  the  month  and  carried  the  rate  of  disc 
per  cent.  With  the  increased  pressure  for  a 
the  introduction  of  a  variety  of  new  compani 
felt  at  the  Bank  of  England,  and  the  Loml 
being  short  i)f  capital,  they  placed  their  tern 
as  forced  the  business  to  the  Bank  parlour, 
the  official  quotation  was  placed  at  the  impr( 
thought  it  would  not  long  remain  there ; 
bills  from  circulation  in  consequence  of  fai: 
that  no  alarm  need  exist  from  any  undue  e: 
At  the  same  time  it  was  evident  that  little  ch 
export  of  gold  to  America  or  elsewhere,  an 
inquiry  for  gold  to  India  was  confirmed  by  t 
succeeding  telegram.  With  genend  mere 
such  a  state  of  repose,  the  temporary  stringei 
given  way,  and  fine  and  seasonable  weather 
the  crops,  an  additional  circumstance  has  thus 
confidence  in  the  future. 

It  was  on  the  4th  of  May  that  the  Bank  d 
rate  from  4  to  4|  per  cent,  and  the  result  wa 
very  quickly  responded  to  the  action.  If otwi 
believed  at  the  moment  to  be  merely  a  tempor; 
considered  quite  warranted  by  the  condition  o 
and  necessary  to  the  exigencies  of  the  period, 
movement  was  in  some  quarters  condemned,  a 
of  a  1  per  cent,  rise  was  discussed.  Butt 
in  reference  to  trade  as  to  the  policy  of  checldi 
of  new  schemes  which  are  being  daily  brougl 
yiew  of  absorbing  capital.  Since  then  we  hav< 
first  occasioned  by  the  India  and  China  sus" 
also  successfully  surmounted  the  critical  infl 
tion  of  the  American  war  ;  and  at  length  tb 
dour  of  the  weather  gives  an  earnest  of  what 
connection  with  the  grass  crops  and  the  hai 
year. 

The  natural  consequence  of  the  easier  co 
^d  the  expectation  that  the  rates  will  gri 


Digiti 


ized  by  Google 


Th  Caurse  qf  the  Monet/  Market, 


691 


e  imprc?^sion  of  the  probable  incroase  of  speculative 
towards  tbc  end  of  the  year.  Thk  feeling  wc  do  not, 
',  share,  becmise  the  overweight  of  securities- apparent 
■  department  will  prevent,  for  some  titne  at  least,  any 
nt  accession  to  the  Stock  Exehan^^e^  the  condition  of  the 
ing  most  unmistalveahly  denoted  that  it  will  be  difficult  to 
f  more,  A  few  sound  prujectj?,  the  authors  of  which  are 
nd  accreditetlj  may  he  introducetl,  and  tliese  will  in  all 
ity  be  supported ;  but  there  is  not  the  slightest  chance 
Teat  quantity  of  Bchemes  being  introduced  nntil  much 
abbish  ret^ently  patronised  is  swept  clean  away  alto- 

From  the  examples  hourly  furnished  of  the  most  in- 
nt  private  underttJilngs  being  turned  into  "  limited 
"  companies,  it  is  evident  that  the  principle  will  yet 
reater  development,  but  it  is  not  so  certain  that  all 
'  !:ikings  will  succeed,  though  they  may  be  brought 
of  the  system.  No  doubt,  promoters  and  others 
Qost  anxious  to  encourage  tlie  growth  of  even  the  most 
tant  where  there  are  feea  to  extract,  or  general  com- 

to  be  obtained,  for  the  services  rendered.  But  the 
istein  thus  created  may,  perhaps,  crush  those  who  have 
ar*tively  engaged  in  the  busin^i^Sj,  when  they  least  ex- 
'  when  tlicy  may  imagine  they  are  on  the  eve  of 
nn  of  prosperity*  It  will  be  well,  indeed,  if  the 
lall  hetiitate  to  encourage  anv  attempted  revival  of  the 
'  they  in  the  long  run  will  be  the  sutferers,  either  through 
il   01    a  period  of  adversity,   or  some   fresh   panic  in 

we  should  in  reality  like  to  see,  would  be  increased 

the  ]iroducc  inarketi!,   and  a  further  development 

tiring  induBtry.     Thcoe  things  mu^t  come  sooner  or 

d  we  trust  the  period  has  arrived  when  the  change  will 

1  this  direction.     The  merchants  and  others  cannot  be 

im   even  greater  sacritices  than  they  have  at  present 

^    witliout  a  rally  of  this  description  takes  place,  and 

ipf  time  the  alteration  must  be  experienced,  because 

rs  fur  shipments  to  tliis  side  are  stopped,  and  the  pro- 

couHumption  will  speedily  adect  existing  stocks, 

a«y    situation  of  the  money  market,  nevertheless,  has 

-    *  teaed  tlie  blow  which  must  otherwise  have  been  very 

which    would,    had    it    occurred  in  days  of   dear 

shaken  credit  to  it?  very  centre.    From 

ve  represented  a  few  commercial  diffi- 

¥U%  these  will  not,  it  is  presumed,  be  viewed  an  alai^minj^* 


sd  by 


Go( 


692  The  Coume  of  the  Money  Market 

AYlien  all  these  sources  of  anxiety  shall  have 
then  we  shall,  in  a  mercantile  sense,  begin  st 
and  find  that  permanent  recovery  which  will  b< 
of  another  epoch  of  prosperity. 

It  is  wonderful  to  notice  the  great  strides 

bullion  reserves  of  the  Bank  of  France.     They  1 

absorption  of  capital  by  the  forcing  of  ephemera] 

though  loans  have  been  negociatcd  in  Paris,  thej 

up  large  sums  of  money.     This  discretion  on 

French  public  will  be  found  beneficitd  to  them  : 

temps  they  should  be  hurried   into  a  war  with 

vaults  of  the  Bunk  of  France  have  not  for  n 

held,    as    at    present,    a   total   of   between    £ 

£20,000,000,  and   it   may  be    safely  asserted 

cumstance  alone   places  that   establishment  ii 

position.      The   total  of  bullion   in  the    Bank 

extremely  satisfactory  considering  the    drains 

now  and  then  spasmodically  suffered  ;  and  sine 

reason  to  imagine  that  the  furore  for  compai 

wholly  at    least    temporarily    subside,   the   la 

available   resources   will    be  applied    to    the 

home  and  foreign  commerce. 

j  At  the  last  moment  at  which  we  write,  it  is  s 

}  are  telegrams  in  from  Bombay  bringing  intc 

I  30th.     Certain  it  is  that  these  advise  a  contini 

tion  of  credit,  and  a  thorough  confusion  of  me 

'  Unfortunately  at  the  same  time  it  is  rumoured 

\  cate  difficulties  among  banking  establishments 

'  should  prove  correct,  may  further  unhinge  the  { 

\  of  the  Presidency.     It  is  to  be  hoped  that  the 

exaggerated,  and  that  they  will  turn  out  to  be 

some  of  the  local  institutions  started  during  th 

late   supposed  prosperity.      From   the   tenor 

]  accounts,  we  must  be  prepared  to  receive  inte 

further  development  of  the  crisis,  and   it    wil 

j  watched  with  vigilance  in  case  any  disasters  of 

!  Little  is  to  be  feared  from  the  English  elemen 

'  and  finance  market  at  Bombay.      Where  a  si 

mischief  may  ensue  is  among  the  native  merch; 

tors,  who,  their  engagements  being  large,  may  fin 

nient  and  attempt  to  repudiate  them.      If  tlie 

in  Bombay  shall  blow  over  without  any  very 

embarrassment,  affuii^s  there  will  not  be  long  beJ 

themselves. 


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I3T0EIC  OUTLINES  OF  AMERICAN  FINANCE. 
No.  16. 

BiTREN  soiiglit  to  defcnd  the  policy  of  General  Jackson. 
Ted  that  when  the  States  banks^  after  the  year  18;i3, 
iepositories  of  public   money,    personal    eeciirity   was 

its  safe  keeping  and  prompt  payment  when  demanded, 
!1  returns  were  to  be  made  from  time  to  time  by  the 
ies.  The  plan  was  at  first  successful ;  but  when  it  beciime 
%  under  the  Act  of  June,  1836,  to  withdraw  the  money 

selected  banks  for  the  purpose  of  ti*ansferring  it  gcnc- 
the  States  banks  in  defined  proportions,  it  was  found 
ient  in  many  cases  to  comply  with  the  dcmtrntLj  of  the 
,  and  numerous  and  pressing  applications  were  made 
Igence-  As  the  iujstulments  became  due  under  the 
Lw,  the  depositories  could  not  pay.  Grasping  at  hii^'h 
I,  thev  had  loaned  what  did  not  belong  to  them,  and 
ipellei  to  press  their  debtors  and  \s'ithhold  discounts. 
Dcording  to  Mr.  Van  Buren,  arose  the  monetary  crisis ; 
ight  also  to  have  said  that  the  depositories  were  the 
f  a  vacillating  legislation.  They  were  first  made  use  of 
tntes  of  the  condemned  national  bank.  While  serv*ing 
)ose  they  were  declared  trustworthy  and  efficient,  and 
mcooraged  to  make  those  prodigal  loans  and  discounts 
ve  activity  to  trade  and  stimulated  the  excessive  spocu- 
it  ensued.  This  laxity  of  providential  restraint  was  not 
Bproved  in  the  messages  of  General  Jackson,  but  highly 
or  the  results  ennbled  him  to  convince  the  people  of  his 
n  not  renewmg  the  Bank  Charter.  When  be  had  won 
t  ation,  the  Distribution  Act  was  passed,  which  compelled 
iks  that  had  been  favoured  with  the  deposits  to  restore 

the  Secretary  of  the  Treasur\%  that  he  might  divide 

the  several  States  in  the  ratio  of  their  popidation. 

k   the  depositories  by  surpriBC,  and  as  they  could 

t^ lately  recover  the  loans  they  had  been  induced  to 

ley   could  not  refund  what  they  held  in  trust  J'or  the 

lent.     In  fact,  they  had  been  entrapi>ed  into  a  false 

for  those  chosen  by  Mr.  Taney  as  receivers  of  the 
Loney  believed,  and  reasonably  believed,  that  it  would 

*  I"  them  till  required  for  Government  expenditure. 
.le<l  the  deposits  as  a  fund  or  working  capital  on 
,e v  I'ould  safely  make  advances  to  their  customers ;  but 
L  Woodbur^^  the  new  Secrc^tary  to  the  Treasurj^,  acting 
istribution  Aet  of  1836,  directed  the  public  money  to 
.  XXV.  6G 


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Historic  Outline  of  American  Fina 


be  removed  from  their  custody  and  dispersed  ai 
States  in  the  manner  directed  by  Congress.  It 
ment  of  that  law,  and  the  Specie  Circular  that  g 
blows  to  American  industry. 

Mr.  Van   Burcn   introduced   another   chan 

finance,  known  as  the  Sub-Treasury  plan,  v 

viewed  as  an  attack  on  the  whole  banking  sys 

it  was  rdected  in  two  successive  sessions  of  ' 

ultimately  carried,  and  signed  by  the  President 

1840.     In  proposing  the  Sub-Treasury  plan,  Mr 

ceeded  on  the  principle  that  the  fiscal  operatior 

ought  to  be  entirely  severed  from  those  of  in* 

porations.     He  advised  the  discontinuance  of 

depositories  of  public  money,  recommending  i 

custody  by  government  officials,  constitutional] 

controlled  by  law.     He  had  not  the  same  faitl 

as  General  Jackson.     "  When  I  entered  on  1 

my  official  duty,''  said  Mr.  Van  Buren,  at  a  su 

of  his  career,  or  in  1840,  "the  Act  for  the  dis 

surplus  revenue  was  in  the  course  of  rapid  exc 

twenty-rcight  millions  of  dollars  of  the  public 

pursuance  of  its  provisions,  deposited  with  the  Stj 

of  January,  April,  and  July  of  that  year  (1337). 

curreda  general  suspension  of  specie  payments  1 

eluding,  with  very  few  exceptions,  those  in  i;« 

money  was  deposited,  and  upon  whose  fidelity  the 

unfortunately  made  itself  dependent  for  the  rev( 

been  collected  from  the  people,  and  were  indii 

public  service."     He  then  enlarged  on  the  secu 

advantages  of  the  Sub-Treasury  plan,  insisting 

could  never  prosper  with  a  national  bank  or  a  i 

When  this  new    financial  scheme  waa  first 

passed  the  Senate  by  26  to  20  votes.     It  was  o 

Mr.  Clay,  who  declared  that  nothing  but  a  natior 

one  common  currency,  and  acting  as  8r  regula 

banks,  could  restore  and  maintain  commercial,  ] 

arguments  failed  to  convince  the  Senate,  but  th 

Bill  met  a  different  fate  in  the  House  of  I 

where  it  wasi  ordered  to  be  laid  on  the  table 

voteg. 

On  the  4th  December,  1837,  Congress  was  a 
wh^n  the  President  again  pressed  the  Sub-Tr< 
passed  the  Senate  a  second  time,  though  not  wi 
position  from  Mr,  Clay,  Mr.  Webatey,  and  otb 


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Hntaric  OtdUnes  of  American  Fimnti. 


695 


ihis  occasion  Mr.  Clay  said  that  Ocneral  Jackson's  real 
lad  been  to  establish  a  Government  Bank,  a  Treasury 

0  he  administered  and  controlled  by  the  executive 
cnt,  and  that  the  proposed  Sub-Trcaftury  eoheme  was  to 

1  fiiich  an  institution  under  onotlier  name,  now  that  the 

♦^s  liank  had  been  destroyed.     The   bill  wns  once 
d  in  the  House  of  Representatives  by  125  to  111 

ext  session  of  Congrefts  opened  on  the  3rd  Dccomher, 
ut  notliing  was  done  in  reference  to  banking.  In  tlie 
g  session,  which  commenced  on  the  2nd  December,  IH^iJO, 
•Treasury  Bill  was  again  brought  forward  and  carri<HL 
iLsure  terminated  Mr,  Van  Buren's  prasidential  admini5- 
and,  from  the  Sub-Treasury  Bill,  its  leading  event,  it 
0d  "  The  Divorce  of  Bank  and  State/' 
Ii0  sake  of  connecting  under  one  continnous  view  the 
m  prooecdinga  on  the  Sub-Treasury  Bill,  we  have 
^  iK)me  remarks  on  Mr,  Van  Buren's  earlier  mossagesi 
h  we  now  propose  to  advert.  Having  already  quoted 
8  on  the  condition  of  the  banks  during  the  hrst  six 
of  1837,  our  next  task  is  to  direct  attention  to  hi* 
)n  the  state  of  the  Trea*sury,  contained  in  his  special 

of  the  4th  September,  1837. 

snm  necessary  for  the  ecrvico  of  the  year,"  he  said^ 
1  th©  probable  receipts,  and  the  amount  whicli  it  was 
I  should  be  reserved  in  the  Troasury,  will  l>o  about  six 

of  dollars.  If  th©  whole  of  the  reserved  balance  be  not 
to  the  current  expenditure,  but  four  millions  be  etill 
the  Treasury,  as  gums  most  expedient  for  the  uses  of 
t,  and  to  meet  contingencies,  the  sum  needed  wiU  be  ten 
.  In  making  this  estimate  the  receipts  are  calculatcMi  on 
pcmtion  of  some  further  extenflion  of  the  indulgence 
to  the  payment  of  bonds  for  duties  which  will  affect  the 

of  the  revenue  for  the  present  year  to  the  extent  of 
cms.  It  is  not  proposed  to  procure  the  required  amount 
B  or  increased  taxation.  There  are  now  in  the  Treasury 
'  '       '  ^        '       t(>d  by  the  Act  of  the  3rd  June,  183G,  to 

ites  in  October  next.** 
w  exigencies  of  the  government  were  immediate,  Mf* 
tren  proposed  to  withhold  the  transfer  of  that  sum  to 
tas  banks,  which  amounted  to  setting  aside  the  law. 
T '"tod  that  this  would  prove  inconvenient  to  many 
H  which  had  counterl  on  receiving  the  instalment  on 
h  of  the  Act  of  Congress ;  but,  at  he  deidared,  the  money 


Oi 


696  Historic  Outlines  of  American  Finance. 

was  indispensable  to  the  Treasury.  To  raise  new  Ic 
have  been  to  commence  another  national  debt — a  bi 
on  the  ultra-democratic  party,  of  which  Mr.  Van  Bur< 
of  the  most  accredited  chiefs. 

In  the  annual  message  of  4th  December,  1837, 
Buren  directed  the  attention  of  Congress  to  the  Fe 
tions  of  the  old  bank  with  the  United  States,  for  \ 
charter  had  expired,  still  the  time  was  not  yet  over  w 
obliged  to  close  its  accounts.  Moreover,  as  already 
it  had  become  a  Pennsylvanian  bank,  wluch  rendere 
tion  complicated.  When  its  assets  and  eflTects  were  t 
to  that  States  bank  in  trust,  pending  the  final  settler 
affairs,  an  adjustment  was  made  by  authority  of  C< 
the  large  interests  which  the  government  held  in  tl 
the  institution.  The  two  years  allowed  for  windiuj 
nearly  at  an  end,  but  the  trustee  (the  Pennsylvania  S 
occupying  that  position)  had  not  redeemed  or  can 
outstanding  notes  of  the  old  bank,  but  re-issued  and 
to  re-issue  them  since  the  3rd  of  March,  1836,  on  whi 
charter  expired.  According  to  the  official  statemc 
bank,  so  late  as  the  1st  October,  1837,  nineteen  mc 
the  privileges  given  to  the  Federal  charter  were  at 
had  under  its  own  control  cancelled  notes  of  the  Iat( 
the  United  States  to  the  amount  of  27,561,866  doUare 
6,175,861  dollars  were  in  actual  circulation,  1,568,62 
bank  agencies,  and  3,200,390  in  transitu,  thus  sho 
upwards  of  ten  millions  and  a  half  of  the  notes  of  th( 
were  still  outstanding.  Then  the  question  arose,  if  t 
had  such  a  right  when  would  it  end  f  And  what  bec^ 
21st  clause  of  the  charter  which  prescribed  the 
winding-up  the  institution,  which  could  not  be  C( 
with  continued  circulation  ?  It  is  also  to  be  obsc 
for  those  notes  the  trustee  putting  them  out  a 
public  for  value  was  not  liable,  for  they  bore  on  the 
personal  responsibility  of  his  own ;  and  as  the  United 
settling  with  the  trustee  for  their  share  of  the  stock, 
their  former  direct  liability  to  the  creditors  of  the  old 
notes  were  positively  unguaranteed.  This  was  un; 
The  power  of  issue  clearly  ceased  in  1836 ;  the  exi 
time  to  1838  was  a  concession  made  solely  and  sp^ 
closing  old  transactions. 

In  his  annual  message,  4th  December,  1838,  Mr.  \ 
estimated  the  available  balance  in  the  treasury  o; 
January,  1839,  at  2,765,342  dollars,  and  the  rece 


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BktotHc  Outlines  qf  American  Finance. 


697 


1  and  land  sales  at  20,615,598,  But  these  several  sources 
lue  were  inci'eased  by  an  issue  ef  Treasury  notcsj  of  which 
aident  calculated  there  wouhl  be  outstaoding  8,000,000 
nd  of  the  year.  Government,  to  recruit  its  decayed 
,  had  also  sold  a  bond  of  the  United  States  Bank  for 
ri  dollars.  This  exhibition  of  the  Ft^ieral  ways  and 
contra.^ted  with  what  tliey  were  at  the  close  of  General 
'a  atlniinifttration^  w^as  a  complete  condemnation  of  his 
both  in  destroying  the  bank  and  issuing  the  specie 
.  Mr*  Van  Buren  had  a  high  i*eputation  for  sagacity, 
difficulty  would  liave  embarrassed  even  an  abler  man ; 
*,  he  was  obstinate    and    doggedly   persevered    in   the 

which  had  brought  disaster  on  the  country;  wbile 
edients  he  adopted  to  moderate  the  evil  effect8  of  the 
principles  he  had  embraced  amounted  to  positive  infrac- 

the  law  and  violations  of  Congressional  faith.  We 
»en    that    he    held    back    from    the    States    banks  the 

of  public  money  on  the  fourth  instalment  in  detiance 
let  of  Congress.  He  also  left  several  millions  at  long 
^'ith  the  bank  and  postponed  the  pajTnent  of  bonds 
es  to  betw^een  four  and  five  milliona  of  dollars.  This 
ice  was  not  an  optiond  act  of  generosity  on  his  part ; 
\  neeessitj  which  ho  could  not  avoid,  for  to  have 
I  the  fi«cal  riglits  of  the  Treasury  in  full  strictness  w^ould 
crificed  nearly  the  whole  proxjerty  of  the  Union.  He 
ven  to  issue  Treasury  notes,  thus  claiming  a  privilege 
government  which  government  refused  to  the  merchants 
le  specie  circxdar.  Government,  as  a  debtor,  tendered 
1  payment ;  government,  as  citjditor,  exacted  coin.  In 
ust  and  inconsistent  manner  Mr.  Van  Buren  sought  to 
lie  evils  of  the  suspension  of  1837- 
public  money  was  now  kept  by  the  treasurer  imder  his 

legal  powers,  subject  to  the  superintendence  of  the 
V  of  the  Treasury,  but  as  one  of  the  revenue  collectors 
d,  Mr.  Van  Buren,  apprehensive  that  others  might  become 
m,  proposed  the  exercise  of  additional  vigilance  over 
ec»tion  and  custody  of  the  Federal  assets.  When  the 
ik  of  tlie  United  States  w^as  incorporated  and  made  the 
rj'  of  the  public  moneys*  u  riglit  was  reserved  by  Con- 
>  ^inspect  at  its  pleasure,  through  a  committee  of  that 
le  books  and  genend  proceedings  of  that  institution. 
-*-]f'nt  now  observed  that  in  the  State  of  New  York, 
^  w^re  considered  to  rank  among  the  first  in  point 
Lity,    the  power  of  constant   examination  by  commis^ 


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Jliatoric  Outlines  of  American  Fuu 


Bioners,  appointed  for  the  purpose,  existed, 
^'  Whether  a  committee  of  Congress  might 
tageously  employed  in  inspecting,  at  such  int 
be  deemed  proper,  the  accounts  of  officials  iu 
custody  of  the  public  moneys  ?  "  He  urged  th 
them  honest.  Thus  he  had  his  doubts  of  th< 
Sub-Treasury  scheme  which  he  had  struggle 
establish,  or,  at  least,  of  its  secure  guardianshi 

We  have  seen  that  the  8Usi)en8ion  of  cast 
universal  within  a  few  weeks  after  Mr.  Van  Bu 
the  presidential  chair.  It  stayed  the  downfa 
rescued  the  country  from  a  state  of  barter,  T 
of  foreign  goods  was  discouraged,  and  a  stir 
domestic  manufactures.  Panic  locks  up  co 
What  they  held  at  the  time  of  suspension  the 
in  their  cofliers.  In  the  west  and  south-west  ins 
rule.  The  Atlantic  cities  generally  were  sc 
banks  were  cautious,  neither  granting  loans 
discounts.  During  the  yeivr  of  suspension  agi 
banks  were  chiefly  employed  in  realising, 
cumstancea  admitted,  tlieir  outstanding  secur 
that  period  of  indulgence  was  drawing  to  i 
York  banks  convened  another  meeting  of 
the  several  States  banks  to  fix  a  day  f( 
resumption  of  specie  payments.  It  has  been 
New  York  banks  had  received  legislative  sa 
suspension  during  one  year,  which  terminated  on 
1888,  and  they  were  desirous  not  to  exceed  tha 
of  the  delegates  i^roposed  to  extend  the  time 
July,  while  a  third  party  advised  that 
should  be  continued  till  the  1st  of  January,  IS 
division  of  opinion  the  delegates  separated, 
banks  resumed  on  the  13th  of  May,  1838.  Ij 
summer  and  autunm  all  the  Northern  and  most 
banks  followed  the  example.  On  the  Ist  Jam 
New  Orleans  banks  and  those  of  the  souths  we 
ception  of  the  State  Bank  of  Alabama,  also  res 

The  chief  opposition  to  the  early  resumptioi 
ments  recommended  by  the  New  York  banks  pre 
directors  of  the  old  United  States  Bank,  which,  a 
had  become  a  state  bank  with  a  Pennsylvania 
proi)erty,  and  its  debts  and  crc^lits  had  bec^n  tra 
State  bank  which  had  assumed  all  the  liabilitiei 
States  Bauk,  its  branches  having  been  wound  u 


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mime  Ouilinee  of  Afmrkan  Finance* 


{]99 


Kew  Bank  was  not  oondiieted  with  the  prudence 
isor.  It  speculated  largely  in  cotton,  and  to 
>poly  of  the  article  so  an  to  rali^e  price.s  to  English 
lade  heavy  advances  to  the  plunterj^*  To  effect 
a  grand  scale  it  put  out  its  own  bonds  or  post 
ii  it  raised  money  in  Europe,     As  an  illustration 

procedure,  we  may  cit-e  its  transactions  with  the 
ssippi.  That  State  issued  its  own  bonds  for  five 
lars,  to  enable  it  to  establish  its  Union  Bank, 
ated  in  June,  1838,  in  the  following  August  were 
ik  of  Pennsylvania,  and  the  purchase-money  was 
i  in  stipulated  instabneuts  to  the  Union  Bank  of 
■,Biddle,  the  manager  of  the  Bank  of  Pennsylvania, 
all  the  cotton  grown  in  Mississippi ;  but  prices  fell 
lis  speculation,  and  within  two  years  the  Missiti- 
opelessly  insolvent,  and  the  State  repudiated  ita 
lat  a  low  state  honour  and  good  faith  had  fallen 
te  some  passages  from  the  executive  message  of 
Governor  of  Mississippi,  in  which  he  sought  not 
se  but  justify  this  shameless  violation  of  contract 
:  and  ci^editor.  The  liank  of  Pennsylvania  had 
sy  of  Baron  Rothschild  on  the  deposit  of  the  Mis- 

to  which  circumstance  Governor  Mac^utt  re- 
lUowing  termfi : — 

I  have  been  informed,  has  hypothecated  these 
rowed  money  upon  tliem  of  the  Baron  Rothschild ; 
das  and  Shy  lock  flows  in  his  veins,  and  he  unitea 
f  both  his  count r>inen.  He  has  mortgages  on 
s  of  Mexico  and  the  qidcksilver  mines  of  Spain. 
*ed  money  i(S  the  Sublime  Porte,  and  taken  as 
tgagc  upon  the  Holy  City  of  Jerusalem  and  the 
IT  Saviour.  It  is  for  the  people  to  say  w^hether 
-  mortgage  upon  our  cotton  fields  and  make  serfs 

v:* 

rm  the  first  repudiating  state ;  Mr,  Mao  Nutt,  tlia 
g  Governor ;  and  Mr.  Jefferson  Davis,  afterwards 
e  Confederate  States,  the  first  repudiating  senator 
['he  precedent  thus  establisliod  was  widely  followed 
t  date, 

tt  to  hite  for  the  j^afety  of  Ids  bank,  became  aware 

!i ties  he  had  contracted,  and  of  the  rash 

i    had  engaged,  had  opposed  the  wish  of 

banks  for  early  resumption,  conscious  that  he 

uiHid  the  req^ui&ite  f^pecie,     llii^  issue  of  post  notes 


700 


Historic  Outlines  of  American  Fina 


was  a  palpable  sign  of  weakness,  and  only  post  j 
ruin.  Another  general  suspension,  not,  howev( 
New  York  banks,  took  place  in  1839 ;  and  final' 
States  Bank,  under  its  new  style  of  State  Bank  of 
disappeared. 

As  the  New  York  Free  Bank  Act  passed  tl 
that  State  on  the  18th  April,  it  is  not  inappr 
its  chief  provisions  in  this  sketch  of  Mr.  Van  ] 
tration.  The  principle  of  the  measure  was 
public.  Any  individual  or  association  desirous 
a  bank  was  empowered  to  do  so  under  tl 
transferring  to  the  comptroller  of  the  State 
"any  portion  of  the  public  debt  now  creal 
to  be  created  by  the  United  States,  or  by 
such  other  of  tne  United  States  as  shall  be 
the  comptroller."  The  debt  so  transferred  beci 
of  the  notes,  the  notes  being  made,  registered,  ai 
by  the  comptroller,  who  handed  them  over  to 
assignment  of  the  stock  of  which  he  had  an  imi 
sale  within  ten  days,  if  the  bank  failed  to  rede 
the  lawful  money  of  the  United  States.  T 
bank  bore  these  words  stamped  on  their  h 
the  pledge  of  public  stocks.*'  The  security, 
consist  one-half  of  public  stock  and  one-hal 
mortgages,  in  which  the  words  stamped  on  the 
were,  "  secured  by  pledge  of  public  stocks  and  i 
the  eighth  section  of  the  Act  provided  that  "  sue! 
be  only  on  improved,  productive,  unencumbe 
this  State,  worth,  independently  of  any  builc 
least  double  the  amount  for  which  *they  shall  I 
and  the  comptroller  shall  prescribe  such  regul 
taining  the  title  and  the  value  of  such  lands 
necessary,  and  such  mortgages  shall  be  payable 
as  the  comptroller  may  direct."  The  annua 
stocks,  bonds,  and  mortgages  assigned  was  r 
parties  who  had  pledged  the  securities,  so  louj 
not  made  in  paying  the  notes.  The  plates,  di 
for  printing  the  notes  remained  in  the  custc 
troller.  If  the  comptroller,  or  any  other  offi< 
him,  were  convicted  of  puttiag  out  notes  in  ex 
of  securities  deposited,  the  pimishment  was  e 
than  five  thousand  dollars,  or  imprisonment  f 
five  years,  or  both  such  fine  and  imprisonmc 
stock  of  any  banking  association  was  not  to 


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Historic  Outlines  of  American  Finance, 


701 


[  thousand  dollars^  and  it  might  be  increased  from  time 
at  the  option  of  the  shareholders.  On  the  first  Monday 
Eiry  and  July  a  full  statement  of  the  aflFairs  of  every 
^orporated  under  the  Bank  was  to  be  transmitted  to  the 
Uer  in  a  form  prescribed  by  him,  and  certified  by  the 
the  president  or  cashier;  and  if,  at  any  time,  any 
or  shareholder  holding  debts  or  shares  to  the  amoimt 
lousand  dollars  "  should  state  facts,  verified  by  affidavit, 
Qcellor  may  in  his  discretion  order  a  strict  examination 
by  one  of  the  masters  of  his  Court  of  all  the  affairs  of 
association,"  for  the  purpose  of  ascertaining  the  safety 
vestments,  and  the  prudence  of  its  management.  The 
:  the  examination  was  to  be  published.  It  was  further 
I  that  no  bank,  for  the  space  of  twenty  days,  should 
hand  at  its  place  of  business  less  than  twelve  and  a  half 
.  in  specie  on  the  amoimt  of  its  bills  or  notes  in  circu- 
I  money  :  nor  could  any  bank  make  any  of  its  bills  or 
a  denomination  less  than  one  thousand  dollars  to  be  put 
ation  as  money,  payable  at  any  other  place  than  at  the 
lere  the  bank  was  conducted.  Such  were  the  leading 
as  of  this  legislative  Act,  and  the  minor  clauses  were 
lly  constructed  as  to  guard  the  note-holders  against  all 
ble  contingencies. 

Iministration  of  Mr.  Van  Buren  was  not  a  successful  one, 
ids  had  given  him  credit  for  great  astuteness,  but  his 
iisappointed  their  hopes  and  belied  their  praise.  He 
mself  the  President  of  a  new  generation,  of  which  title 
)roud,  for  he  seemed  to  think  that  the  inheritors  of  the 
an  constitution  were  to  eclipse  the  fame  of  its  founders, 
ily  the  date  of  his  pt^sidency  is  the  date  of  American 
tnough  the  first  fatal  blow  was  struck  by  General 
,  but  Van  Buren  completed  the  work  of  his  predecessor, 
put  in  nomination  for  a  second  term  of  office,  but  only 
sixty  electoral  votes,  while  his  opponent.  General 
1,  received  nearly  four  times  as  many.  There  could  be 
decided  proof  that  his  popularity  had  departed. 

(To  he  contimLtd.) 


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i 

I 


702 

G.  J.    GOSCHEK,  ESQ,,  M.P.,  ON  "THE  THI 
FOREIGJS  EXCHANGES"  AND  "SEVEN  P 

To  the  Editor  of  the  Bankers^  Mckgazin 

Sib, — In  March,  1864,  I  addressed  a  letter  to  you 
work  which  had  been  published  by  Mr.  Goscher 
theory  of  the  Foreign  Exchiinges,"  of  which  I  sei 
gentleman,  and  have  a  letter  from  him  thanking  me 
his  attention  to  the  subject,  and  regretting  that  duri 
would  not  have  leisure  to  enter  on  a  discussion  on  t 
the  work  referred  to,  Mr.  Goschen  says,  "But  a 
even  of  the  leading  bankera  and  merchants,  are  at 
the  subject  as  its  immense  importance  deserves ;" 
questions  the  ability  of  persons  (such  as  deacribe 
affairs  in  which  they  are  daily  concerned.  J  th 
question  in  the  letter  I  addressed  to  you,  "  If  Mr. 
pretends  to  a  knowledge  of  the  subject  on  which  h 
and,  as  the  subject  of  exchanges  has  reference  tc 
florins,  <fec.,  I  required  hia  definition  of  a  '*  pound, 
above-mentioned  has  gone  through  four  editions  w 
the  question  last  asked,  a  solution  of  which  lays  a1 
of  the  theory  advanced,  and  which  it  must  be  i 
manded  hia  attention,  and  as  he  has  on  several  occas 
his  seat  in  Parliament  on  currency  matters,  and 
article  in  the  "  Edinburgh  Review,"  entitled  "SeveD 
dealing  on  the  subject  of  money,  without  venturi 
meaning  he  attaches  to  a  "  pound,"  I  trust  you  wi 
briefly  recapitulating  a  part  of  what  I  have  b< 
introduction  to  other  matters  of  equal,  if  not  gi'e 
Socrates  said,  "Before  we  can  reason  accurately concen 
must  first  know  what  it  is."  As  I  presume  the  sound 
ment  will  not  be  disputed,  it  Ls  important  that  Mr, 
outset  of  his  public  life  should  make  himself  acqu 
explain  the  meaning  he  attaches  to  the  terms  he  is 
any  speech  he  may  make^  or  work  he  may  write.  I 
enter  into  any  discussion  with  Mr.  Groschen  on  currer 
only  require  from  him  a  direct  answer  to  a  very  simp 
his  definition  of  the  term  "  pound." 

The  late  Sir  Robert  Peel  (the  last  person  who,  I  h 
to  explain  the  meaning)  asked  the  question,  "  What 
wliat  is  the  engiigement  to  pay  a  pound  ]  "  and  he  ana 
by  saying,  "  the  meaning  of  a  *  pouud '  is  neither  mor 
definite  quantity  of  gold  ; "  and  he  added,  "  there  is 
why  you  should  not  change  a  pound  than  to  say  that 
foot  and  a  half,"  ThLs  definite  quantity  of  gold  as  f] 
Act  of  1819)  is  123  g^^^  grains.  If,  then,  a  pound  car 
shillings  and  j)ence,  how  can  it  alter  in  francs  and  floi 
if  it  be  123  ^4^;^  grains  English,  it  cannot  vary  in  grami 


V 


j^r  ^^  Digiti 


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lieory  of  the  Foreign  Exchanges.  703 

InglLsh.can  alter  in  French  metres  1  What^  then, 
ilsh,  which  alters  in  foreign  measurement  ] 
philosopher  (a  great  authority  on  currency  matters, 
to  by  the  Late  Sir  Robei-t  Peel),  in  a  letter  dated  iu 
I  statement  that  silver  (then  the  standard  of  value) 
noi*e  value  than  after  it  was  coined,  says,  *•  I  take 
s  so  far  from  being  true  that  I  affirm  it  'i&  irapoasible 
withstanding  Sir  Isaac  Newton  (when  Master  of 
d  a  letter,  dated  the  21st  September,  1717,  to  the 
^iy%  revenue,  saying,  **  but  silver  in  bullion  export- 
th  2d.  or  3^.  per  ounce  more  thiui  in  coin.  •  ♦  • 
ling  for  the  East  Indies  the  demand  of  silver  for 
the  price  to  5#.  6c/.  or  5«.  8(/.  per  ounce,  or  above." 
eres  to  the  opinion  he  had  given  that  the  price  of 
ssibly  alter,  although  those  persona  who  paid  an 
silver  must  have  known  that  they  had  done  so 
lo  now  i^ay  a  diflerence  in  the  rate  of  exchange,  for 
•  after  Sir  Isaac  Newton^s  letter),  John  Lock© 
\  silver,  which  makes  the  intrinsic  value  of  money 
ilf,  under  any  stamp  or  denomination  of  the  same 
ries,  cannot  be  rai«ed«  For  an  ounce  of  silver, 
groats,  or  crown  pieces,  stivers,  or  ducatoons,  or  in 
rays  eternally  will  be,  of  equal  value  to  any  other 
der  any  stamp  or  denomination  soever," 
ot  alter  in  stivers  or  ducatoons,  how  can  it  alter 
ns?  What,  again,  is  that  sum  which  describes 
xxQ  tin^  worth  $#•  id.^  and  at  another  time  58,  8c/. 

nmittee  of  1810,  in  their  report,  seem  to  have  taken 
BiiViject  as  John  Locke,  for  I  find  it  stated  as  under, 
I  being  itself  measured  and  expressed  in  gold  cannot 
ed  by  an  increased  or  diminished  demand  for  it. 

will  exchange  for  neither  more  nor  less  than  an 
fie  same  iineue&s.  ♦  *  *  An  ounce  of  gold  bullion 
ore  in  our  market  than  X3.  17^.  lO^c/.  iinless 
OUT  actual  currency  ia  equivalent  to  less  than  an 
Jthough  we  have  here  a  distinct  statement  that  tlie 
ddy  so  little  is  there  any  general  agreement  on  the 
he  report  of  the  Committee  or  Bank  Acts  of  1858 
a  there  asserted  that  the  price  of  gold  ia  not  fixed, 
ihe  beginning  of  that  paragraph: — "  Another  mis- 
*en  perplexed  those  who  have  reasoned  about  the 

supposing  that  by  Act  of  Pai*liament  the  pric«  of 
is  utterly  impossible  to  understand  any  part  of  tli9 
the  rejiort  of  the  Committee  or  Bank  Acts,  iot  th« 
ts  the  other,  whilat  th«  term  sovereign  iaiA  no  way 
ooiidt 


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704  Theory  of  the  Foreign  Exchan 

If,  then,  Mr.  Goschen  entertains  a  like  view 
"  a  pound "  as  John  Locke,  the  Bullion  Comm 
Sir  Robert  Peel,  as  Locke  has  asserted  that  wha 
occui',  because  it  was  impossible,  so  it  may  be  ar 
the  foreign  exchanges,  viz.,  that  the  fluctuations  wl 
have  not  occurred  because  it  is  impossible  for  weig 
measured  by  an  English  or  foreign  rule.  If  it  be 
that  there  may  be  -a  difference  in  the  value  of  gc 
as  compared  with  another,  and  that  this  is  measur 
tions  which  occur  in  the  rates  of  exchange,  how 
stand  that  in  our  dealings  with  Australia,  where 
of  gold  Ls  veiy  different  from  what  it  is  in  Engli 
described  as  of  an  uncertain  number  of  pence,  si] 
certain  number  of  francs  1 

Since  calling  the  attention  of  Mr.  Gosclien  to  th 
which  I  hoped  he  would  have  answered,  and  that 
duced  in  him  caution,  an  article  has  appeared  in  tli 
view,"  entitled  "  Seven  per  Cent.,*'  and  althougl 
been  attached  to  it,  its  authorship  is  ascribed  to  J\ 
not  only  deals  -with  the  subject  of  "  a  pound  "  w 
explained,  but  also  deals  with  another  subject  ec 
necessary  to  be  explained,  viz.,  the  term  "  capital 
the  review  I  find  as  imder — "  M.  Wolowski  oppc 
selves,  the  notion  that  an  increase  of  paper  iss 
moment  be  expected  to  prove  a  panacea  for  the  s 
capital,  and  consequently  high  rate  of  intei-est. 

"  The  productive  capital  of  the  country  is  increj 
an  amount  of  gold ;  but  it  is  not  loanable  capil 
disposal  of  a  boiTOwer  which  could  be  permane 
such  a  measure."  At  page  251  I  find  :  "An  averag 
7  per  cent  has  been  hard  to  bear  ;  but  the  lesson  hti 
scarcity  of  capital  is  only  to  be  remedied  by  outbid 
competitor  for  the  temporary  use  of  floating  availal 
to  that  country  which  offers  the  highest  price." 

I  now  want  from  Mr.  Goschen  his  definition  o 
for  I  cannot  find  any  general  agreement  in  respe< 
tionary,  encyclopaedia,  or  work  on  political  econoni 
capital,  and  what  is  floating  capital  1  Is  capital  a  c 
ment  or  by  individuals  1  Is  money  caj)ital,  and  is 
fined  to  gold  in  one  country,  and  to  silver  in  anoth 
the  hands  of  a  labouring  man  ca])ital,  or  in  what 
its  character  after  quitting  the  possession  of  him  w] 
is  the  distinction  between  the  terms  money  and  caj 
these  terms  and  riches  ?  Had  tliis  country  no  loai 
1797  to  1822,  during  a  suspension  of  specie  payme 
£14,000,000  of  notes  which  the  Bank  of  England  i 
without  having  gold  in  deposit  to  meet  their  payme 
as  any  other  notes  1     If  this  Bank  were  suffered  to 


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Theory  of  the  Foreign  Enchanges, 


705 


0  of  notes,  on  the  same  conditions  as  the  £14,000,000,  would 
e  loanable  capitiil,  and  would  not  such  an  issue  prove  a 
)r  a  high  rate  of  interest  1  What  is  meant  by  setting  free  an 
gold  ]  Have  the  Americans  no  loanable  capital  1  Cannot  the 
Government  i^sue  p^reen-backs  ail  libitum,  and  thus  multiply 
ipital,  and  cannot  those  notes  be  lent,  used,  and  invested  in  all 
s  which  floating  capital  (in  any  other  way  described)  could  be 
could  they  not  be  advanced  to  the  Government  on  public 
Ls  fixed  capital  %  What  is  that  capital  which  is  to  be  attracted 
>untry  by  outbidding  foreigners  ?  If  a  person  ceases  to 
a  trade,  or  employ  his  wealth  in  multiplying  productions, 
w^ealth  cease  to  be  capital  1 

ill,  in  his  work  on  capital,  sjxys,  "  The  accumulated  stock  of 
»  of  labour  is  termed  capital.  Capital,  by  persons  wholly 
reflect  on  the  subject,  is  supposed  to  be  synonymous  with 
*  *  Money  is  no  more  synonymous  with  capital  than  it  is 
bh.  Money  cannf»t  in  itself  pei-form  any  part  of  the  office 
Capital  is  precisely  that  part  of  a  person's  possession, 
it  \ye^  which  he  designs  to  employ  in  carrying  on  fresh  pro- 
The  distinction  between  capital  and  not-capital  does  not 
kind  of  commodities,  but  in  the  mind  of  the  capitiilist — 
to  employ  them  for  one  purpose  rather  than  another ;  and 
;y,  -however  ill  adapted  for  the  use  of  labourei-s,  is  a  part  of 
soon  as  it,  or  the  value  to  be  received  from  it,  is  set  apart 
tive  employment.     . 

Dand  for  commodities  does  not  in  any  manner  constitute  a 
>r  lal)our,  but  only  determines  into  a  particular  channel  a 
ore  or  less  considenible  of  the  demand  already  existing.  It 
3  that  a  part  of  the  labour  and  capital  of  the  community 
employed    in    producing   certain    things   instead   of  other 

?chen  is  a  young  man  having  a  reputation  for  great  talent. 
?ring  on  public  life,  and  as  he  is  fi*esh  from  college,  where  it 
sumed  he  has  devot<»d  particular  attention  to  that  branch  of 
lich  now  commands  his  especial  considei-ation,  we  have  a  right 
rom  him  the  latest  news  from  the  seat  of  learning,  with  all  the 
:nowledge  of  the  day,  and  a  clear  and  distinct  exposition  of 
hicb  have  been  obscure,  and,  without  attributing  to  him  any 
ceit  of  his  own  abilities,  I  may  sup^xjae  that  he  considers  him- 

to  a  disputation  with  those  under  whom  he  has  studied  the 
e  has  tak3n  in  hand,  and  that  he  does  not  believe  he  has  left 
m  at  the  university  any  one  more  competent  than  himself 

those  matter  in  Parliament. 

istified  in  drawing  this  conclusion,  because  I  do  not  find  that 
ir  Robert  Peel,  or  any  of  his  successors  in  office,  after  quit- 
je,  have  referred,  on  occasions  of  Parliamentary  inquiries, 
s  of  political  economy  or  currency,  to  those  colleges  for 
nent  on  such  subjects,  but  have  shunned  them  (as  if  they  were 


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706  Bank  Notes  Issue  Bill. 

impressed  with  an  idea,  that  there  were  no  person 
competent  to  afford  any  information),  and  have  so 
those  whose  self-interest  might  be  supposed  to 
tion  they  would  furnish. 

I  do  not  ask  Mr.  Goschen  for  more  than  his  defii 
and  of  "  capital,"  fixed  and  floating  ;  and  I  contei 
tions  can  be  satisfactorily  disposed  of  in  fiva,  or  a1 
and  I  shall  only  asciibe  silence  in  Mr.  Gosche: 
answer  the  questions,  or  to  a  fear  of  committing  h 

My  object  in  thus  addressing  myself  to  Mr. 
purpose  of  eliciting  all  that  can  be  said  for  or  \ 
ideas  of  money  and  capital,  and  the  questions  are 
every  one  who  8]>eaks  or  writes  on  the  subject  ref( 
Goschen,  and  I  think  I  have  shown  that,  as  they  i 
moment,  nothing  can  be  more  unsatisfactory  or  le 

I  entertain  very  decided  opinions  on  these  nr 
commanded  my  attention  for  very  many  years,  i 
give  evidence  before  any  competent  authority,  or 
have  completed  (which,  however,  I  must  for  a  sh< 
which  will  explain  my  views. 

In  conclusion  I  would  observe  that  it  seems 
expect  that  any  good  can  result  from  Parliamer 
ducted  as  they  have  been,  neither  have  I  any  ej 
things  from  the  inquiries  now  going  on  in  Paris. 

I  am,  Sir, 

Your  obedien 

Cj 

Hoyal  Institution,  May,  1865. 


BANK  NOTES  ISSUE  BIL 

To  the  Editor  of  the  "  Bafikers'  Mag 

Sir,— In  the  month  of  October  last  you  die 
publish  an  article  from  my  pen,  entitled  •'  Refl( 
Act*  of  1844-5.**  That  article  was  penned  m 
that  it  was  the  intention  of  the  Chancellor  of  t 
troduce  a  comprehensive  bill  to  remedy  the  adi 
measures  of  Sir  Robert  Peel.  Probably  Mr.  G 
would  not  be  right  to  attempt  to  pass  so  impoi 
Parliament  whose  days  are  so  soon  to  come  to  an 
bis  idea,  it  would  surely  have  been  better  to  ] 
No  tea   Issue    Bill'*  await  the  consideration   of 


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jank  Notes  Issup  7?///. 


707 


i  could  liardly  be  said  that  the  urgency  of  the  case  is 

1  th*^  recollectir>n  of  th«  readers  of  the  **  Bankers* 
&  few  nioBths  EiQce  a  report  wiis  cuirent  ti  the  effect 
3  of  the  National  ProvincLd  Bimk  of  Engliiud  had 
usaon  that  the  profits  derived  from  the  issue  of  notes 
ntly  large  to  oompetiHate  for  being  debarred  from 
Item  in  and  around  London,  and  that  in  consequence 

to  relinquLHh  the  isaue  of  notes.  It  appears,  how- 
o  take  this  fiiuil  and  iiTevt:»cable  step,  the  authorities 
ue«tion  adopted  the  exprdient  of  bringing  their  case 
it^^ne,  the  reuult  of  wliioh  is  the  **  Bank  Notes  Issue 
will,  of  course,  blame  the  Nutional  Provincifd  Bank 
ag  the  best  tliey  can  for  their  shareholders  ;  still  the 
tl  very  muvh  like  stealing  a  march  on  their 
proceeding    which    neeme    likely  to  bring  swift  re- 

them  I  for  I  can  hardly  suppotie  that  had  the 
lich  the  boon  would  be  granteti  been  known  before* 
ftve  ever  been  asked  for.  A  shar]i-BigIited  financier 
ne  could  not  fail  to  perceive  in  the  application  an 
Kpedite  the  extinction  of  the  country  issues  genei^allj, 
f  wliich  he  wm  not  bK^w  to  avail  himself,  though  with 
;«nuity  he  tried  to  keep  it  in  the  ktck  gi-ound,  and 
«ech,  on  the  Ist  of  May,  that  **  the  prime  principle  of 

renioval  of  the  Umitationa  placed  on  the  private 
inks;  not  on  the  business  of  is^ue^  but  on  the  buaiiieaa 

cl&naes  in  the  bill  are  four  : — 

ae  in  the  Act  of  1844  which  proliibita  private  hanks 
king  more  than  six  |>art,ners»  ia  i^epealcfl  in  favour  of 

agrt«  to  pay  to  the  Crown  an  incr«?a8e<i  fier  centage 
icli  inerea^  being  from  7 a.  to  £1  poi-  cent 
iaautj,  whether  private  or  join t-fetock,  are,  on  payment 
eased  per  eenlage,  to  be  allow eil  to  carry  on  business 
adon  and  Hixty-fiv«*  mile«  round.  No  hank  of  iasnie 
[>  issue  notes  within  three  mi  lea  of  the  city  of  London, 
Rpnie  that  ia  at  |iree)ent  outttide  the  sijtty-five  nulea 
i  to  iiisue  nof4*ii  within  it 

•  u  to  any  bank  of  ts,sue  to  transfer  jta  rights  in 
y  oilier  bank  of  issue,  provided  the  latter  undertftkes 
ied  fH^r  centago. 

ber  the  Ut  January,  1879,  the  govemnicnt  of  the 
ice  to  all  baidcs  coming  M^athin  the  flcope  of  this  Act 
atioD  of  note  issues  in  twelve  months  from  the  date 

which  cftse^  unleas  Parliament  shall  otherwise  de- 
tea  will  cease, 
of  thme  daiises  it  is  obviously  a  step  (small  though 


Digitized! 


708 


Bank  Notes  Issue  Bill. 


'^♦1 


it  be)  in  the  right  direction.  The  restriction  which 
by  it  is  a  disadvantage  to  the  banker,  but  a  much  g 
public.  On  what  grounds  it  was  ever  enacted  I,  foi 
been  able  to  discover,  and  now  that  the  question  is 
only  regret  that  such  a  stipulation  as  an  increased  p 
be  considered.  If  it  be  sound  policy  to  have  ban! 
nised  by  law  (which  is,  to  say  the  least,  extremely  ( 
be  for  the  welfare  of  the  public  that  such  establisl 
allowed  to  strengthen  themselves  if  necessary. 

With  reference  to  the  second  clause,  it  is  unque 
Mr.  Gladstone  remarks,  that  it  is  an  anomaly  that 
issue  should  be  excluded  from  the  Metropolitan  dis 
and  Scotcli  banks  of  issue  are  freely  admitted.  It ' 
escape  remark  that  in  providing  a  remedy  for  this 
Anomalous  state  is  introduced,  that  is  to  say,  the 
required  to  pay  for  a  privilege,  which  establishmeni 
sister  countries  obtain  gratuitously.  Should  this  b 
shall  have  in  addition  to  the  already  numerous  i 
banks,  a  subdivision  of  the  banks  of  issue  into, 
terms  them,  conforming  and  non-conformiug,  which 
divided.  Of  the  former,  there  will  be  the  banks  w 
beyond  sixty-five  miles  from  London,  and  who 
carry  on  banking  business  within  that  distance  ;  ar 
issue  notes  within  sixty-five  miles  of  London,  who 
not  only  to  carry  on  banking  business  in  London, 
beyond  three  miles  from  the  city. 

Of  the  latter,  or  non -con forming  qIsh^,  there  wil 
those  who  issue  notes  beyond  sixty-five  miles  from 
who  issue  within  that  radius,  but  neither  of  these  ii 
have  ofiices  in  town,   so  tliat  it  would  seem  that 
posed  to  be  created  are  at  least  as  great  as  those  co 

But  the  most  important  subject  for  consideratio 
the  effect  of  the  alteration,  and  how  many  bank 
avail  themselves  of  it.  I  think  a  perusal  of  the  fo 
the  banks  of  issue  may  assist  us  in  making  an  esi 
at  the  present  moment' in  England  and  Wales  19( 
which  137  are  private,  and  59  joint- stock  banks.    - 

Of  the  private  banks  there  are  :— 


3 

7 

9 

52 

50 

16 

137 


whose  authorised  issues  exceed 


£100,000 
75,000 
50,000 
25,000 
10,000 


bui 


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Bank  Notes  Issue  Bill.  709 


nt-stock  banks — 

3se  authorised  issues  exceed 


£400,000 

but  are 

under  £450,000 

300,000 

400,000 

100,000 

200,000 

75,000 

100,000 

50,000 

75,000 

25,000 

50,000 

10,000 

25,000 



10,000 

atement  it  will  be  seen  that  out  of  196  banks  there  are  but 
ae  authorised  issues  exceed  XI 00,000,  but  if  the  average  be 
3e  must  be  deducted  from  that  number,  leaving  but  five  who 
lly  that  amount  in  circulation.  Now,  it  hardly  seems  probable 
»ank,  whose  circulation  is  under  this  sum,  will  think  it  worth 
stablish  an  office  in  London  for  the  purpose  of  retiring  notes, 
he  most  ardent  of  company-mongers  can  scarcely  say  that  a 
ant  of  banking  accommodation "  now  exists  in  London, 
lin,  the  profits  of  note  issues  have  of  late  years  seriously 
[1,  the  practice  of  keeping  banking  accounts  has  now  become 
I,  that  notes  which  formerly  remained  in  the  hands  of  the 
sho[>keeper  for  weeks  or  months,  return  to  the  issuer  at 
he  shape  of  deposits,  or  are  paid  by  the  London  agents ; 
liLs  in  mind,  it  seems  very  unlikely  that  the  extra  per 
ill  be  incurred  by  any  other  bank  than  the  National 
I,  which,  with  its  numerous  bi-anches,  must  incur  veiy 
mcy  charges,  either  by  direct  payments  or  by  the  obliga- 
tceep  heavy  balances  with  their  agents  at  little  or  no 
tion. 

me  now  to  the  third  clause,  by  which  banks  of  issue  are 
to    dispose  of  the  privilege  to  any  other  bank  of  issue, 
•  the  restriction  that  banks  which  are  now  outside  the  sixty- 
radius,  cannot  acquire  the  right  of  issue  within  that  dis- 
seems  to  be  just  pc^ssible  that  this  clause  may  be  operative 
istances,  where  bankers  amalgamate,  or  private  banks  merge 
stock  companies,  but  in  all  cases  where  banks  are  prospering 
eem  very  unwise  to  transfer  such  a  privilege  to  a  rival,  as 
:  would  naturally  look  upon  such  a  step  as  a  confession  of 
and,  of  course,  act  accordingly. 

b  point  is  that  clause  by  which  power  is  given  to  the  Govem- 
\ie  day  to  terminate  the  issues  of  the  banks  who  take  advan- 
lifl  Act  on  the  1st  January,  1880.  Mr.  Gladstone  said, 
use  of  Commons,  that  if  the  country  issues  were  only  reduced 
e  rate  as  since  1844,  they  will  not  be  finally  extinguished  for 
Neither  authority  nor  figures  were  given  to  support  this 
,  which  appears  to  be  altogether  fallacious.  When  the  Act 
XXV.  57 


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710  J3auk  Notet  Issue  Sill. 

of  1844  was  passed  tliere  were  in  England  and  Wa 
issue,  with  an  aggregjite  authorised  circulation  of 
tlie  present  time  there  are  196  banks  having  author] 
extent  of  £7,415,448,  showing  a  reduction  £1,23 
take  the  avemge  circulation  of  these  banks  far  the  i 
4th  March  last,  we  find  the  amount  only  £5,674 
£1,740,000  under  the  limit,  and  showing  a  jirae 
£3,000,000  in  the  21  years,  which  by  no  meai 
Gladstone's  statement. 

Of  course,  the  operation  of  this  clause  will  entii 
whether  bankers  consider  the  advantages  offered  wi 
the  almost  ceiiain  destruction  of  their  monopoly 
years,  or  whether  they  think  their  present  tenure 
make  it  worth  while  to  ensure  its  retention  for  thi 
It  seemed  to  be  the  general  impression  in  the  H 
that  the  bill  would  not  expedite  the  extinction  of  i 
to  any  appreciaV)le  extent ;  in  fact,  some  members 
retard  it.  Mr.  Thomson  Hankey  was  of  that  opini 
make  the  clause  comj)ulsory,  while  Mr.  Gosch( 
reduction  of  the  lease  to  ten  yeara  instead  of  i 
approved  of  the  tax  of  £1  per  cent,  which  **  in  vol 
"  principle,  as  showing  that  the  State  claimed  the  i 
"  the  currency  ; "  a  principle,  by-the-bye,  which  is  ec 
the  present  tax  of  7j.,  and  also  by  the  arrange  men 
the  iiank  of  England  is  authorised  to  increase  its  h 
of  two-thirds  of  the  amount  of  lapsed  country  issi 
such  increase  is  appropriated  by  the  State. 

There  was  a  clause  proposed  by  Alderman  Balomo] 
a  certain  extent,  have  placed  the  issues  on  a  soi 
allude  to  the  proposition  that  issuing  banks  should 
their  circulation  ;  it  was,  however,  vetoed  by  the 
Exchequer,  though  he  gave  but  little  reason  for  1 
cept  that  it  would  be  unfair  to  oblige  those  banks  w 
of  this  Act  to  give  security,  while  other  banks  sli 
empted  :  a  line  of  argument  which  suggests  a  ver; 
He  rather  favoured  the  idea  of  making  notes  a  first 
assets  in  the  case  of  bankruptcy,  which  would  most 
a  less  cumbrous  and  equally  safe  expedient. 

Looking  at  this  Act  in  all  its  bearings,  it  appea 
avowedly  brought  in  to  further  the  interests  of  or 
80  that  establishment  will  be  almost  the  only  one 
cept  perhaps  in  an  occasional  case  of  amalgamation, 
were  great  difficulties  to  be  encountered,  and  opp< 
come,  before  a  comprehensive  measure  relative  to  tl 
could  be  carried,  but  Mr.  Gladstone  has  .on  previoui 
no  lack  of  courage  to  meet  oppofdtion^  but  on  the 
position  to  court  it. 


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Banking  and  Financial  Anecdotes.  711 

is  occasion  he  hais  produced  a  measuro  which  I  venture  to 
j>e  pronounced  by  the  banking  community  to  be  unworthy 
lendid  talents ;  a  measure  which  will  in  all  probability  be 
operative,  but  which,  if  operative,  will  create  more  anomaUea 
indertakes  to  remove. 


I,  May  23rd,  1865. 


I  am,  Sir, 

Your  obedient  servant, 

J.  D.  R 


BANKING  AND  FINANCIAL  ANECPOTES, 
No.  VI. 

A   CURIOUS   IRISH  BANKING  TRANSACTION. 

t  of  "The  Clubs  of  London"  gives  a  curious  instance  of 
t)anking  business  that  wa«  sometimes  carried  on  in  Ireland 
imencement  of  the  laat  century.     «I  once  accompanied  a 
T  of  English  ladies  and  gentlemen  to  that  enchanting  spot, 
of  Killarney,  when,  having  amused  ourselves  for  a  few 
^ere  on  the  point  of  returning  to  Dublin  when  one  of  the 
ilected  that  he  had  in  his  possession  a  handful  of  notes  on 
who  was  a  kind  of  saddler  in  the  town  of  Killarney.     Ac- 
we  aU  set  out  by  way  of  spoji;  to  have  them  exchanged, 
►al  object  being  to  see  and  converse  with  the  proprietor  of 
ak.     Having  entered  the  shop,  which  hardly  sufficed  to 
whole  company,  we  found  the  banking  saddler  hard  at 
e  of  the  gentlemen  thus  addressed  him  :  "  Good  morning 
;  I  presume  you  are  the  gentleman  of  the  house ? "     "At 
M3,  ladies  and  gentlemen,"  returned  the  saddler.     "  It  is 
ierstand,  that  the  bank  is  kept ?"  continued  my  friend, 
right,  sir,"  replied  the  mechanic ;  "this  is  the  Killarney 
ant  of  a  better."     My  friend  then  said,  «  We  are  on  the 
ting  your  town,  and  as  we  have  some  few  of  your  notes 
be  of  no  manner  of  use  to  us  elsewhere,  I'll  thank  you  for 
lem."     The  banker  replied,  "Cash,   plase  your  honour; 
1 1     Is  it  anything  in  the  leather  line  1     I  have  a  beautiful 
as  was  ever  put  across  a  horse,  good  and  cheap.     How 
r  notes  have  you,  sir,  if  you  plaae  ] "     "  There  are  no  less," 


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I 


712  Banking  and  Financial  Anecdot 

said  my  friend,  "than  sixteen  of  your  promii 
amazingly  large  sum  of  155.  9d  sterling."  "I  si 
noble,"  returned  the  banker,  "  to  waste  any  more 
time,  or  of  those  swate  bootiful  ladies  and  j  on  tie 
illigant  bridle  here  as  isn't  to  be  matched  in  Yo< 
or  Ameriky  ;  its  lowest  price  is  15«.  6^6?. — ^will  i 
lordship.  If  ye'll  be  plased  to  accept  of  it,  then  tl 
a  thrupenny  note  coming  to  your  lordship,  and 
business  at  once."  There  was  no  other  course 
the  bridle. 


DIABOLICAL  ATTEMPT   TO   RUIN  A   COUNTB 

Mr.  Lawson,  in  his  "  History  of  Banking,"  na 
striking  episode  :— 

On  the  establishment  of  the  ■  Fire  Insui 

founder  was  appointed  manager ;  and  after  the 
few  years  in  existence,  the  conduct  of  this  p< 
to  call  forth  some  severe  remarks  from  the  dire( 
the  chairman,  who  was  a  banker  in  the  town  of  - 
such  an  extent  had  his  conduct  been  earned  that  i 
necessary,  in  order  to  protect  the  interests  of  the  b 
that  he  should  be  requested  to  resign,  or  he  would 
•  duty  of  conveying  the  decision  of  the  board  ( 
chairman,  who  told  him  that  on  a  given  day  he 
office,  and  receive  from  Mr.  B.,  the  manager,  tl 
and  moneys  belonging  to  the  company. 

Accordingly,  the  chairman,  on  the  day  appoint 
tors,  called  at  the  office,  when  they  found  Mr.  B.  f 
man,  with  a  brace  of  pistols,  sitting  on  a  box  'w 
securities,  <fec.,  belonging  to  the  company.  Th 
ordered  by  the  father  to  shoot  the  first  pei'so 
attempted  to  move  him  from  his  seat.  This  h 
iinlooked  for  and  unusual,  astonished  the  chairmai 
accordingly  retired  to  decide  upon  what  steps  it 
to  take.  On  their  leaving  the  premises  the  mans 
men,  and  told  them  he  wanted  them  to  walk  in  p 
the  bankers,  and  he  would  march  at  their 

It  is  necessary  here  to  state  that  with  the  fui 


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Banking  and  Financial  Anecdotes,  713 

r  in  the  hands  of  the  manager  he  had,  since  the  day  he 
notice  of  the  termination  of  his  appointment,  been  engaged 
nging  such  money  for  the  banker's  notes,  by  which  means  he 
mulated  several  thousand  pounds.  The  notes  so  collected  he 
to  large  sheets  of  paper,  and  then  pasted  them  on  twelve 
ike  placards :  one  he  carried  himself,  with  these  words  in 
racters,  "  Going  to  Messrs.  -  bank  to  demand  pay- 
Each  man  carried  one,  and  they  marched  in  single  file  to  the 
)n  entering  the  house  he  demanded  instant  payment  in  gold. 
Ls  were  taken  by  surprise ;  they  had  not  so  much  gold  in  the 
it  they  said  they  could,  in  a  very  little  time,  collect  from  the 
ring  banks  the  requisite  amount ;  but  no,  this  would  not 
nanager  ;  it  was  just  the  answer  he  expected.  He  replied, 
aotes  are  payable  to  bearer  on  demand  ;  I  now  demand 
lyment,  or  I  shall  proclaim  your  bank  as  having  failed.''  The 
treated  a  few  hours'  indulgence,  but  he  was  inexorable  ;  he 
t  give  a  minute,  and  turning  to  his  men  he  said,  "  Now,  my 
iilder  your  placards."  At  the  same  time  taking  from  his 
;>rinted  paper,  with  which  he  had  come  provided,  he  pasted 
e  one  he  had  carried  himself,  and  again  headed  the  procession. 

>nd  placard  announced   "Messrs. have  suspended 

nents  ; "  and  in  this  manner  he  marched  through  the  princi- 
j  to  the  utter  amazement  of  the  inhabitants,  especially  those 
transactions  with  the  bank,  or  who  [held  any  of  its  notes, 
b  was  as  might  have  been  anticipated ;  the  bank  failed, 
b  of  the  manager  of  the  assurance  company  had  been  gained; 
iered  his  appointment  and  left  the  town. 
1  of  this  man,  though  terrible,  was  not  so  bad  as  he  deserved, 
we  have  been  told,  in  the  Fleet  Prison,  placed  there  by  the 
who  had,  perhaps  unwillingly,  aided  him  in  his  former 
reer. 


BANKERS  AND   BANKERS. 

g  woman  was  some  years  since  brought  before  a  metropoli- 
magistrate,  charged  with  begging.  The  representative  of 
y  of  law  sternly  interrogated  the  prisoner,  sharply  asking 
•ee  questions  in  a  breath — who  she  was,  where  she  came 
The  girl  began  to  cry,  but  gave  no  answer,  whereupon  the 
)  told  her  he  thought  she  was  an   impostor,  and  he  must 


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714  .  Banking  and  Financial  Anecdoi 

know  the  timth.  The  young  woman,  gaining  com 
lier  name  was  Smith  ;  that  she  came  from  Lincolr 
fiather  was  a  banker.  This  immediately  altered  tl 
of  the  case.  "  What !  "  he  exclaimed,  "  your  fatln 
and  allow  his  daughter  to  go  about  in  this  wretche 
either  have  done  something  to  bring  this  on  yoiu^ 
in  a  disgracetiil  way.**  The  young  woman  replied 
nothing  wrong  ;  that  her  father  could  not  afford 
that  she  had  been  obliged  to  come  up  to  London, 
in  distress.  Inquiries  were  then  set  on ,  foot,  an< 
the  town  from  which  tlie  young  woman^had  com^ 
from  the  magistrate,  wrote  that  she  was  the  c 
banker  in  the  Fens ',  that  her  father,  thi-ough  h 
refused  to  keep  her  ',  and  that  the  men  who  folk 
alluded  to  were  generally  called  "bankers**  i 
ooTiutry. 

THB  banker's  wife  AND  HER  NEIGHBOUR'S 

Mrs.  Coutts  (previously  Miss  Mellon)  during  he 
Lodge,  Highgate— a  house  which  had  cost  her  hus 
-^used  to  be  much  annoyed  by  the  unthinking  o 
of  an  immediate  neighbour*  Whenever  the  we 
wife  of  the  banker  gave  a  dinner-party  at  HoU; 
occasion  when  she  particularly  desired  that  the 
itself  in  its  best  aspects,  that  particular  day  seem« 
her  neighbour  for  her  washing-day ;  and  the  gui 
were  not  only  amused  by  such  a  quantity  of  clot] 
that  the  thought  of  a  laundiy  was  naturally  i 
were  further  entertained  by  the  clatter  of  tongu 
contrarity  or  agi^eement  of  opinion  among  the  n; 
tub.  To  rid  herself  of  this  annoyance  Mrs.  Cout 
portion  of  land  which  was  so  disagreeably  apprc 
ground,  but  the  owner  would  not  consent.  The 
upon  built  up  a  wall  about  100  feet  high,  which 
her  guests  the  view  of  the  clothes-lines,  and  the 
thereon  ;  but  the  wall  also  shut  from  view  a  ver 
The  obdurate  neighbour  wa!%  however,  ere  long  so 
ensued ;  the  Wall,  which  had  cost  £1,000,  was 
there  was  subsequently  greater  "  luck  aboot  *• 
the  Washing-day.** 


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715 


BARTERED  BANK  OP  ACSTRALIA. 

Ion  Chartered  Bank  of  Australia,  to  be  presented  at 
'  general  meeting,  on  the  2nd  June,  states  that  it  Ls 
to  be  able  to  announce  that  the  general  results  of 
ions  have  been  successful.  From  the  accounts  it 
.ble  profits  are  somewhat  in  excess  of  last  year,  a 
etors  will  learn  with  satisfaction,  viewing  the  de- 
^rhich  has  existed  in  the  Australian  colonies,  as  well 
on  this  bank  has  had  to  contend  with.  The  latest 
Qies  extend  to  the  25th  March  last,  and  speak  in 
I  position  and  prospects  of  the  bank.  The  inspector, 
in  Melbourne  and  resumed  the  management  of  the 
ary  last.  The  accounts  for  the  past  year  are  made 
e  31st  December  last.  After  the  usual  deductions, 
illowance  for  bad  and  doubtful  debts,  there  remains 
and  loss  the  sum  of  £53,436,  out  of  which  the 
lat  a  dividend  be  declared  for  the  half-year  of  4  per 
ax,  £40,000 ;  and  they  further  recommend  tliat  a 
k1  to  the  reserve  fund,  wliich  will  then  amount  to 
00,  leaving  to  be  carried  to  next  account  a  balance 


BANKING  LAWS  OF  GERIVIANT,  WITH  AN 
CHE  REFORMS  PROPOSED  IN  THExH. 

8  there  has  existed  in  Germany  a  large  voluntary 
merchants,  politicians,  and  professors  and  others. 
Congress  of  German  Economists.  The  plan  of  the 
jembles  that  of  the  British  Association  for  the  Ad- 
in  this  country — that  is  to  say,  there  is  an  annual 
tumn  of  each  year  in  some  principal  town,  and  the 
itiDg  are  controlled  by  an  organisation  of  presidents, 
s.  The  whole  purpose  of  the  Congress  is  to  appeal 
1  public  opinion.  The  meetings  hitherto  held  have 
successful.  They  have  been  attended  by  men  who 
fairly  represent  the  educated  and  active  portion  of 
ig  classes,  and  the  more  practical  intellects  among 
iicians.  The  objects  of  the  Congress  are  specific  and 
Leaving  aside  abstract  problems,  the  questions 
idments  of  municipal  or  commercial  law  more  or 
n  the  present  condition  of  Germany, 
yongress  for  1863  was  held  at  Dresden,  in  September 
lestiona  principally  debated  were  four,  viz..  Patent 
:ile,  and  Commercial  Treaties,  and  in  each  case  the 
light  many  important  facts  illustrative  of  the  pre- 
German  States,  and  of  the  wide  differences  which 
GOid  this  country. 


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716 


Oerman  Economic  Diacusaion, 


We  have  thought  it  desirable,  therefore,  to  frame  an  i 
Dresden  proceedings,  so  far  as  they  relate  to  banks  and  bi 
doing  BO,  to  preserve  to  some  extent  the  dramatic  form  ( 
debates,  by  giving  the  names  of  the  speakers  and  the  lini 
adopted  by  e^.  We  need  not  say  that  we  have  endeavo 
our  summary  to  the  more  important  portions  of  the  pruceec 

At  the  opening  of  the  Congress  on  the  second  day,  Mi 
banker  of  Frankfort,  read  a  paper  on  the  laws  rdlatin 
and  on  the  question  in  general.  He  said  that  the  Committ< 
the  Congress  had  endeavoured  to  inform  itself  of  the  wis 
chambers  of  commerce  and  large  banking  institutions. 

The  chambers  of  commerce  had  declarod  against  state  1 
banking  institutions  had  not  returned  answers. 

Prussia  had  proposed  a  Bank  Act  two  years  ago,  and  th< 
declared  themselves  opposed  to  it.  In  1862  the  Congress 
itself  with  establishing  the  problem  without  trying  to  solve 
mittee  has  four  proposals  to  bring  forward,  and  has  agreed  i 
that  banks  should  be  allowed  when  established  with  unli 
and  that  in  the  case  of  banks  with  limited  liability,  oertaii 
tions  should  be  imposed.  As  to  what  these  legal  restricti 
the  committee  could  not  agree :  they  have  therefore  decided 
best  of  them  for  the  determination  of  the  Congress. 

The  four  resolutions  concerning  banks  are  as  follows : — 

1st.  An  extended  and  regular  system  of  banking  is  indis; 
promotion  of  the  material  welfare  of  a  civilized  nt^ion. 

2nd.  Monopolies  and  concessions  granted  to  government 
to  private  societies  for  the  issue  of  bank-notes,  diminish,  as 
proved,  the  safety  of  the  currency,  are  hurtful  to  the  develo; 
mg,  and  contribute  to  the  impoverishment  of  the  nation  J 

3rd.  Banking  activity,  with  or  without  the  capacity  to  iasi: 
be  left  open  to  free  competition,  provided  the  liability  of  tl 
be  unlimited. 

4th.  If  the  shareholders  of  a  bank  issuing  notes  claim  t 
limited  liability,  tbey  must  fulfil  certain  legal  conditions,  i 
mittee  now  submit  for  consideration. 

1.  Shall  the  amount  of  the  notes  to  be  issued  be  fixed 

2.  Shall  the  minimum  amount  for  which  a  note  can  be  h 

3.  Shall  a  periodical  publication  of  the  accounts  of  the  bai 

4.  Shall  the  bank,  under  penalty  of  bankruptcy,  be  oblig 
in  coin  all  the  notes  presented  ? 

6.  Shall  security  to  the  amoimt  of  the  current  notes  ] 
bullion,  and  in  what  proportion  ? 

6.  Shall  the  total  amount  issued  be  covered  by  bullion  i 
cantile  bills  toffether  ? 

7.  Are  at  least  two  endorsements  necessary  to  billa 
banks? 

8.  Are  stock  and  wares  pledged  for  advances  admissible 
notes? 

9.  Are  state  and  other  scrips  allowable  as  security  for  x 

10.  Shall  the  holder  of  a  note  have  any  peculiar  advan 
the  winding-up  of  the  bank  ? 

11.  Ought,  irrespective  of  the  note  circulation,  the  buainc 
to  be  restricted,  and  if  so,  in  what  manner  ? 


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German  Economic  Discussion. 


717 


►urchaBe  of  scrip  and  wares  to  be  prohibited  as  specula- 

lause  or  pawning  of  bank  shares  allowable  ? 
requirement  of  particular  security  for  the  deposits  de- 

sceptance  of  deposits  be  confined  to  a  particular  sum  ? 
tain  term  of  notice  be  required  for  the  payment  of  de-» 

,  after  reading  these  projwsitions  of  the  Committee,  began 
[  the  paper,  by  stating  that  up  to  the  present  time  banks 
uded  in  Germany  by  means  of  a  concession  from  one  of 
and  the  issue  of  notes  is  subjected  to  particular  restric- 
companies  at  present  can  only  take  deposits  up  to  a 
Thin  if)  one  of  the  most  important  of  banking  operations, 
ricted.     We  see  in  Germany  that  the  privileged  banks, 
iheir  governments'  support,  do  not  even  pay  well.     The 
for  instance,  in  spite  of  its   monojK)ly,  does  not   yield 
lie  one  hand  the  government  forbid  to  a  great  extent  the 
ate  banking  companies,    and  on  the  other  they  do  not 
btaining  what  they  wish  for  by  forbidding  them.     What 
prevail  in  official  circles  may  be  surmised  from  the  fact 
Heydt  has  maintained  in  the  Prussian  project  that  banks 
sroperly  to  be  conducted  only  by  servants  of  the  state. 
5  Congress  must  be  directed  to  establish  as  free  a  condi- 
•r  the  credit  system.      My  paper  has  this  intention,  and 
that  the  Congress  will  declare  both  for  the  liberty  of 
idustry,  as  well  as  for  the  liberty  of  credit  and  banking, 
jhaelis   spoke    in     favour    of    the  full  liability   of    all 
rs  and  of  full  freedom  in  banking.     He  observed  that 
y  was  limited,  the  desire  to  make  extra  profit  by  a  more 
of  business  was  increased.     The  ease  and  safety  of  a 
pended  upon  the  number  of  payments  to  be  made  daily 
I  upon -the  facility  with  which  the  notes  could  be  con- 
tan  return  to  the  bank  in  several  ways.    It  is  the  best  if 
Ln  payment  of  a  current  demand.     It  is  also  convenient 
in  as  a  dex>osit  against  bullion.     It  is  not  good,   and 
issue,  if   they  are  paid  in   as  deposits  at  interest.      In 
rbidden  to  accept  more  than  one  million  of  thalers  as 
erest,    and    even   for  this    sum    a  minimum    term    of 
led,    that  is,   the   banks  are  prevented  from  fulfilling 
irtant  economical  duty.    It  is  provided  also  that  notes 
1  to  the  extent  of  one-third  by  bullion.      But  if  bul- 
nt  of  one-third  be  there  to-day,  and  a  10  thaler  note 
away  10  thalers,  it  is  no  longer  there,  and  the  reqidred 
naes  as  soon  as  it  begins  to  be  made  use  of.  Such  directions 
childish.    The  only  real  security  consists  in  a  continual 
L    order  to   avoid    danger    from    the  note   circulation, 
s  are  generally  observed  as  to  the  admission  of  mortgaged 
'  for  notes.     Discoimted  bills  only,  and  not  pledged  stocks 
a  solid  basis  for  notes.     Government  securities  are  also 
iw  York  it  is  even  demanded  that  a  bank  should  invest  its 
■mnent  securities  instead  of  banking  business,  in  order  to 
notes  thus  created.    This  is  depriving  the  notes  of  a  good 


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718  German  Economic  Discusst 

Becccrity  in  order  to  &ubstittite  a  bad  oim.  'Ab  tc 
a  preference  over  other  bank  creditors,  that  w< 
developmeut  of  tnie  banking  business,  and  at  the  a 
the  note  circulation  more  dangerous,  for  the  safe 
themselves,  the  safer  the  bank  thinks  itself,  and 
much  the  lees  care  with  its  note  circulation.  T] 
Ought  to  Yote  for  no  monopolies,  no  ccmGessioos, 
full  bank  freedom,  and  limited  liability  joined  to  sii 
Dr.  Faucher,  of  Berlin,  said  that  the  exaggerated 
of  bank  notes  was  to  convert  fixed  capital  irn 
paper  money  to  be  taken  on  the  Continent  with  i 
The  consequences  of  this  were  that  the  banks  atte 
notes  as  possible,  and  als9  that  the  paper  of  cm 
into  another,  where  it  had  no  proper  circle  of  a 
bank  notes  are  in  circulation  than  a  healthy  bank] 
The  cheque  system  is  altogether  wanting.  Qreat 
made  in  France  to  extend  the  cheque  systemi  t 
aiderable  success. 

If  such  a  custom  ccm  only  be  introdticed,  a  great 
cease  which  have  led  to  the  acceptance  of  bank  n 
Prussian  provincial  banks  have,  indeed,  assured  i 
to  introduce  the  cheque  system  here ;  for  the  trade 
their  cash  in  the  banks,  but  desire  only  credit  tn 
certainly  the  evil  in  a  most  concentrated  form ; 
traders  in  Germany  require  further  instmctiou  anc 
cheque  system  can  be  introduced. 

The  reason  for  this  goes  very  deep  into  the  natu] 
Our  traders  seek  their  profit  more  in  advantageous 
pnrcliase.  But  the  consequence  of  this  is,  that  the 
depends  upon  narrower  principles  than  in  England 
to  obtain  an  advantage  over  the  thot^htless  oonsv 
over  the  experienced  wholesale  dealer  in  the  purchi 
But  the  advantage  on  the  purchase  is  far  more  lastir 
and  better,  I  can  beat  thereby  my  competitors,  ai 
greater  extension.  The  nation  which  understands  ] 
advantageous  manner  will,  in  the  end,  remain  the 
the  world ;  and  it  is  undeniable  that  the  English  i 
at  buying.  It  is  the  custom  now  with  the  Englie 
raw  materials  only  at  great  auctions.  In  this  man: 
gains  once  in  the  beginning  the  whole  profit,  whit 
pay  to  the  wholesale  dealer.  Keady  money,  bowei 
auctic»i  sales. 

As  soon  as  the  custom  of  keeping  ready  money  b 
keeping  it  at  a  bank  necessarily  follows,  on  account 
Cash  keeping  at  a  bank  renders  the  preservaticm  of 
for  the  entry  of  the  cheque  in  the  baiik  books  rend 
finoos.  The  mere  fact  of  having  cash  at  a  bank  gi 
With  a  ffynieta  of  eheques  no  bank  will  suffer  by 
will  profit  by  it.  If  our  banks  are  only  once  sure  > 
on  the  cheque  system,  they  wiU  no  longer  be  oblige 
reliance  upon  the  issue  of  notes ;  for  these  reasons  i 
body  to  strive  to  introduce  the  cheque  system. 
Mr.  Bumter^  a  banker  of  KcMiigsberg — ^Limited 


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Ovrman  Economic  Ditcnuum, 


719 


OT)ly  witE  certain  restriction s.  Five  points  come  princi- 
\  for  coDsiderAtion— ^Ist.  8b all  tlie  businefis  of  the 
iscribed  by  laws,— I  answer  tlm  shortly;  no.  Further, 
f  two  fios^ibilitieSj  if  the  bank  be  solid  it  will 
business,  if  not,  legal  restrictions  are  not  worth  aiiy- 
he  fixing  of  the  note  iftftue  is  not  a^imis^Hible,  for  it 
ed  by  circnmstances,  3rd.  The  kind  of  note  sectirity 
C4\nnot  be  prescribtxl  by  law,  but  oTight  to  be  left  to  tho 
he  bank.  The  backing  to  the  extent  of  one -third  of  the 
ion,  is  according  to  circnmstances  too  much  or  too  little 
h-  Question  2  ought  to  be  affimiecl,  for  the  iBsue  of 
to  be  deprecate*!,  though  not  upjn  scientific  grounds. 
Qea*ure«  cif  safety  for  the  public.  Question  4  belongs  also 
but  is  a  little  too  stringent,  although  the  payment  of  its 
dl  times  be  the  natural  duty  of  the  V)ank.  In  the  same 
3  must  be  ako  affirm e^l  in  the  interest  of  the  imbJic. 
rth — Experience  has  *^hown  that  privilege*:!  banks  inj- 
3ral  community.  The  more  the  bjuik.H  are  left  upon  their  own 
e  better.  Therefore  question  1  ought  to  Ije  negatived.  Mr. 
\  on  to  express  similar  view^s  t-o  those  of  the  last  eyieaker, 
ea  that  the  imlimite<l  acceptance  of  dep^^sits  harl  led  t-o  bad 
ca,  but  that  it  was  not  well  to  think  too  much  about  the 
les.  He  hoped,  in  oon elusion,  that  the  resolution  would  bo 
rged  the  German  Bund  to  adopt  a  general  biuik  law  for  the 
ay,  and  that  the  groimds  laid  down  in  the  proposidfi  before 
ealised  therein, 

',    a    bank    direett^r    from   Dandg — A  chief    considero- 

uudation    of    all    banks    is    the    amount    of   confidence 

rtakers  inspire,  whether  they  represent  a  projier  amount 

so    on.     A  bank    founded   by  t<»tally    unknown    per- 

I.      They  can  do  no  business.     Keferring   to  the  single 

!  CL%  as  to  No.   1,  it  is  not  poSAible  to  fix  the  note  issue, 

[>eitd9  upon  the  demand.      As  to  No.  'i,  our   minimiitn 

n  thalers.      The  question  is   not,  however,  of  great  im- 

ling  to  general  experience,  the  1()0  thaler  and  600  t balers 

'      _:est  in  circulation,  whikt  the  twenty  and  twenty-five 

ck  the  quickest,  quicker  even  than  the  tem  thaler 

If-nnderstood  to  be  affirmed   in  the  interest  of  the 

J,  it  is  necessary  to  impose  this   condition   by  law. 

5,  the  prnjKjrtion,  according  to  experience,  cannot  be 

_r,        f      It  linty.     In  the  year  1857  a  third  proved  in- 

}\     i  have  tli-n  nnid  iiway  as  much  as  150,1X10  thalera  in 

nch  crises  d<>  jver  niglit  ;  certain  signs  precede 

3y  r-i!i  Vm>  provi  i  ^t.   Under  ordinary  circnmstanoeft 

o  fltill  t*w)  mudi.     At  queetion  0, 1  renmrk  that 

1 1  re<i,  and  even  have  a  bullion  reserve ;  |>art,  how* 

y  inlla.     As  to  No.  7.     Sometimes  seven  aignaturea 

In  practice  several  signatures  are  consider«N:l  aaft*r, 

m   belaid  down.     The  loans  uiMm  stock   and  warea 

•n   8   ought  to  l>e  forbidden  as  security  for   iKfti^s, 

^  le.     For  the  name  ren.Huu  qufstion  9  must 

already  negaiivtMl  by  ctmimercial  law.    I 

I1H   il  i,i  inclusivej  that  with  limited   liability  the 

t  Ukowise  be  limited,  and  speculation  excluded  alto- 


720 


Oerman  Economw  Discussion. 


gether.  In  the  same  manner  the  pawning  of  ban] 
should  not  be  permitted,  for  it  has  occurred  that  tw< 
when  certain  shares  only  were  forbidden  to  be  pawned, 
by  means  of  a  mutual  pawning  of  their  shares,  and 
wrong  against  the  noteholders.  Question  14  is  answei 
certain  means  of  security  for  the  deposits  cannot  be 
bank  manager  can  easily  observe  when  deposits  are  lil 
in  great  amounts.  Question  15  ought  to  be  negatived, 
ments  will  certainly  not  leave  the  amount  of  the  d( 
sum  will  fix  itself  in  practice.  Question  16  cannot  be 
as  to  whether  the  times  are  normal  or  critical,  but  ii 
that  money  ought  not  to  be  taken  at  a  year's  notice  of 

Mr.  Otto  Michaelis — Notes  perform  the  following  se 
in  the  place  of  the  bill  a  means  of  exchange  wliicb 
capability  of  circulation  and  a  greater  circulating  ar< 
the  bill  must  be  passed  further.  The  banks  perform  t 
to  the  community :  they  take  upon  themselves  the  r 
ments,  and  by  publishing  their  store  of  bills  and  no 
exchanges  with  all  its  waverings  under  public  control, 
issue  of  bank  notes  is  not  the  chief  point  in  a  bankini 
free  competition  it  is  an  agent  which  presses  the  bar 
tion  of  that  business  for  which  they  are  there. 

Dr.  Brann,  the  president,  rose  to  remark  that  seven 
before  them.  1st.  One  from  Mr.  Mac  Wirth,  to  plac 
tion  of  the  committee  the  following  words  : — "  The  C 
the  following  principles  for  a  German  banking  law, 
by  agreement  among  the  different  states  or  by  the 
different  states." 

2.  By  Dr.  Wolff,  of  Steltin— To  r^olve  in  place  c 
committee  be  charged  with  collecting  during  the  nex 
basis  of  our  present  debates,  the  conditions  under 
limited  liability  shall  be  permitted." 

3.  By  Mr.  Samemann — To  change  article  4  in  the 
"  If  the  shareholders  of  a  note-issuing  bank  claim  the 
liability,  they  must  fulfil  the  following  legal  conditions 
value  of  single  notes  is  to  be  greater  than  the  highest 
the  country.  2.  The  accounts  are  to  be  published  p€ 
bank  is  to  be  bound  to  pay  their  notes  daily  on  pres< 
of  bankruptcy.  4.  Buying  and  pawning  of  bank  shai 
mitted."  And  instead  of  article  6,  to  say — "  That  un 
the  principles  of  rational  banking  shall  be  adopted,  tl 
banks  for  discoimt  and  deposit  business,  without  the  p 
is  to  be  recommended,  for  with  these  almost  all  the  s« 
vantages  can  be  attained  aa  with  note-issuing  banks." 

Mr.  Bansi,  of  Biolefield,  supported  Dr.  Wolff's  prop 
16  points  back  to  the  committee.  The  16  points  oonta 
full  banking  law,  and  about  that  we  cannot  decide,  but 
as  a  Congress  to  set  up  general  points  of  view.  1 
follows : — 

1.  Preventive  rules  have  no  effect. 

2.  Corrective  rules  are   necessary,  and  should  h( 

rapid  in  their  operation  as  possible. 
8.  The  recognition  of  the  trustworthiness  of  a  ban] 
clear  to  the  public  by  the  legislature. 


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uttftmn  Economic  DmuMwH* 

►pell,  of  Danjsig,  after  some  remarks,  aaid,  that  Dr,  Wolff's 
tended  to  a  prolongation  of  tlio  aiibjoct.  He  had  criticised  tlie  single 
nd  Ji«»erte*l  that  there  Wiw  aii  inner  contradictioQ  between  jxiints 
,  which  iu  reality  did  not  exii*t.  It  may  certainly  he  desirable  to 
ily  bankH   with    unlimited    liability,  hut  it  was  seen,  however, 

movement  run  directly  towanls  liniite<i  liability,  as  was  shown  by 
ripleof  England^     We  desire  to  know  how   banks  with  limited 

are  tc»  \ye  treated.  They  receive  from  the  state  the  right  of  a 
aition,  they  are  liable  for  only  a  certain  amount ;  it  is  natural  that 
a  should^  thertTfore,  require  in  thia  erceptional  case  an  exceptional 
rerthe  bank.  The  question  must  not  he  delayed^for  it  is  one  of 
fc  iuiiK>rtant  questions  of  the  day. 

amemiuan — We  are  near  the  end  of  our  debate,  for  only  four  or 
lis  remain  to  be  decided.  To  Br.  Wolff'  I  beg  to  remark  that  the 
ion  of  limited  liability  would  be  a  greater  hindrance  to  the  exten* 
banking  than  all  eiiwling  at  presetit,     In  England,  as  others  have 

d,  limited  liability  comcR  more  and  more  into  umc.  In  one  point 
m  not 'Agreed  with  Messrs,  ]VIichaeli»  and  Kupeil,  imd  that  is,  with 

0  the  safety  of  bills,  Mr.  Michaelis  is  right  ho  far  ajs  the  aim  of  the 
bes  issue  is  concemed,  which  is  to  replace  a  less  convenient  means 
mge  by  a  more  convenient,  but  wrong  when  he  says  that  all  good 
iginate  in   a  trnuAaction    or    a    purchase ;   for  the  hank   cannot 

at  all  into  the  origin  of  a  hill.  Public  opinion  goes  very 
-  ft^^uBt  the  iuimission  of  pawned  stock  and  wares  ojs  security 
I,  but  a  great  proportion  of  bills  of  excliange  are  only  another  form 
kin<l   of  busiuft'^s.     Bhink  credit  is  also  not  altogether  a  hill  of 

e,  hut  gtill  not  hill  jobbiiig.     The  hank  does   not   concern   iteelf 

1  origin  of  the  bill,  but  with  what  the  man  does  with  the  money 
B  gets  from  the  baxik,  and  as  to  whether  the  signatures  are  good. 
uld  remember  that  if  yon  only  consider  hnsines.s  bills  as  solid  and 
I  bring  the  whole  work  of  Mr  Bchuhe  Delitxseh  into  question; 
'  "'-lubera  of  a  loan  society  withdraw  a  loan  and  found  a  bill  upon 

»n,it  is  nothing  but  bill  jobbing.    On  the  contrary,  eiperience 

..  :  aat  billfl  foundotl  upon  transivctiuns  can  also  be  bad.   Dr.  Aiiber 

t  busine««  bills  to  the  extent  of  several  hundred  thousand  mark 

eiit  bad  during  the   commercial   crisis  at  Haiubiu-g.      On   thia 

it  cannot  be  legally  asserted  tliat  security  by  means  of  bills  is 

t.  nnd  for  this  reaaon,  that  we  do  not  know  what  the  bank  managers 

y  good  bills.    Ideas  are  very  different  on  thia  point,  and  a 

'  i  impossible.    It  is  indeeil  altc^ether  a  c»se  of  penoniu  oonfi- 

IvS  cannot  be  forbidden  to  buy  Consols,  for  these  are  at  times 

•  curities.     The  bfoiks  must  also  be  left  to  themselves  as  to 

t  oaght  to  spocidate  in  wares  ;  such  speculations  must  be  set 

in  the  published  accoimts,  and  such  banks  as  engage  in  them 

I       i  ^  by  far  the  beist  control. 

.  new  and  important  questions  hAve  arisen  during 

( aisider  an  adjournment  more  and  more  necessary. 

i  we  to  promote  the  movement  in  favour  of  limited 

u- »  ijy  our  vote  pronotmce  a  prejudicial  decision  on  many 

i  do  not  think  wc  should  make  any  improvement  if  we 

.1  T.roT.. .a ;+,->».«  ,,f  Mr.  Samemann.     The  question  is  im- 

I  ^  >ne  it  than  to  decide  too  quickly. 

:      :i:-Li-.:„     X         ^Rstionahave  become  mixed  several  times, 

Uu  deb<it4>,  vias.,  whether  anything  ahall  bo  reooived  as  good  advioe 


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Go 


I 

I 


722  Oerman  Economic  Discmsion. 

or  whether  it  shall  be  required  as  a  legal  restrictioi 
would  remark  that  with  banks  with  unlimited  liability 
buy  their  own  shares  can  never  oome  into  question,  but 
limited  liability,  for  otherwise  the  capital,  which  form* 
public,  could  be  secretly  withdrawn  from  the  business 
the  covering  of  notes  by  means  of  bills,  I  believe  it 
but  it  shoiSd  not  be  a  legal  requirement.  The  four 
Samemann  has  proposed  are  justified  by  the  nature  of 

Mr.  Schottler,  of  Danzig — I  beg  to  remark  as  t 
speculation  is  not  distinctly  forbidden,  and  the  public 
selves  to  control  it,  a  single  good  result  wiU  make  the 
lead  to  deception.  As  to  question  4,  bankruptcy  is  no 
a  misfortune.  The  article  ought  to  be  expressed  '^  un( 
up." 

Dr.  Fancher — It  is  dear  that  the  aim  of  point  13  u 
from  withdrawing  their  capital  out  of  their  businesi 
shares.  It  is  quite  impossible  to  compel  a  company  wi 
to  keep  its  capital  in  the  business.  The  capital  affor 
security  lies  in  the  uprightness  of  the  bank.  Th< 
a  security  where  none  exists.  The  less  the  law  does  t 
the  public  will  be ;  and  therefore  I  think  that  point  li 
tived. 

The  resolutions  of  the  committee  were  here  put  to 
preliminary  proposition  of  Mr.  Max  Wirth  failed,  beca 
with  point  1.  Article  1  of  the  committee  was  adopted, 
adopted  unanimously.  Article  3  and  the  positive  pai 
received  by  a  great  majority.  The  motion  of  Dr.  V 
refused.  The  propositions  of  Mr.  Samemann  as  to  poi 
were  accepted.  Point  6  was  affirmed  by  39  votes  ag 
and  12  were  negatived.  Article  5,  concerning  the  es^ 
count  and  deposit  banks,  according  to  the  motion  of  J 
adopted. 

The  resolution  of  the  Congress  then  stood  as  follows 

"  Article  I. — An  extended  and  regular  system  of 
pensable  to  the  promotion  of  the  material  welfare  of  a 

"Article  II. — Monopolies  and  concessions  granted  tc 
tutions   or   to   private   societies   for  the    issue  ,of  ba 
as  experience  has  proved,  the  safety  of  the  currency ; 
development  of  banking,  and  contribute  to  the  imp 
nation  by  individuals. 

"  Article  III. — Banking  activity,  with  or  without  tl 
notes,  should  be  left  open  to  free  oompetition,  provided 
ihareholders  be  unlimited. 

"Article  IV. — Shareholders  desiring  the  privilege 
must  fulfil  the  following  legal  conditions  : — 

"  a.  The  minimum  amount  for  which  a  note  can  be  i 

"  b.  A  periodical  publication  of  the  accounts  of  th 
quired. 

"  c.  The  bank  to  be  obliged  under  penalty  of  liquid 
daily  all  the  notes  presented. 

"  d.  State  and  other  scri|>s  to  be  allowed  as  security 

"  e.  The  business  of  the  bank,  irrespective  of  the  zu 
to  be  restricted  in  any  manner. 

^f.  The  purchase  or  pawning  of  bank  shares  to  be  a 


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723 


o  o  o  o  o  o 

wt  w^  »o  O  O  O 
OT  r*  CO  0»  5»  O 

" «  eo  — '  o  >♦  .-^    • 

(M         C4  C»  0>  d 


o  o  o  o  o 

»o  O  O  «o  O 

^   «    O    t^    Tf^  « 

•  ^   .-I  lO   CO 

^  '-        O  '^ 

CO 


«  o  o  o  o 

»^  G>^  «0  "-^^  0>^ 

•  «o  r-T  F-T  oT  QtT 

•  c^  -«  to  CO  -^ 


CO 


)00«»ooo-  ooooooS»o 

L^^^V^^®!  ^«oo»^r'^^»^<ncoO^ 

ror^tNT^toeo  •^ooooTtocotoo^ 

iioeOi-*d>Or«  *tocQ^'^<o       eoo 

>  i-«  i-N  eo  CO  00  00  IN       .«  i-i           f-i  "^ 


)^«t— «>»ot*^aoow»»-<^«Doqo©iaor-;0^o^ 

^ieioco<o^iog»c)<-^M)*n'-i      AOcogo««oQ<M 
«  1-4  a»  >^  1^  ^  o  c« 


lllll 


>  O  O  O  O  O  O  ( 


!§§8 

>  o  o  o 


:  2  t  :  :  :  :  I 


s  s  t  1 


!  :  :  :  I  s 


f  I  {  s  s  c  :  s  ;  ;  :  :  M  :  f 


I  « 


c  «  e  K  :  t 


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724 
^Vduhtng    ant^    C0mimrnal   ) 

GOARANTEE— WHEN  CONTINUING  AFTEI 
THE  FIRM  GUARANTEED,  AND  WH 

It  is  of  course  well  known,  that  it  is  not  an  in 
with  bankers,  to  give  a  firm  liberty  to  open 
to  overdraw  to  a  given  extent  upon  a  guarant 
finn  or  person,  on  whom  the  bankers  can  rel 
ficiencies. 

Under  the  old  law  before  the  19th  and  20th ' 
Mercantile  Law  Amendment  Act),  the  gene 
from  the  practice  was,  that  if  there  was  any  c 
guaranteed,  the  guarantee  ceased,  unless  the 
provision  ;  the  principle  being,  that  an  obligor 
guarantee  a  firm  of  which  he  knew  the  mora 
firm  when  those  members  have  left  it,  or  when 
tlie  firm.  And  so  it  was  held  in  **  Weston  v,  Ba 
673),  where  Mansfield,  C.  J.  says  *'that  from 
cept  '  Barclay  v.  Lucas  '  (3  Doug.  326),  the  p 
decision  has  been  much  questioned,  it  results 
obligees  dies,  the  security  is  at  an  end."  This 
founded  on  the  very  principle  which  is  at  the 
suretiship,  viz.,  the  principle  of  personal  confi 
willing  to  be  surety  for  B,  whom  he  knows,  b 
terms  expresses  it,  he  never  intends  to  becoi 
representatives  or  assigns,  of  whom  he  knows  i 
as  a  general  rule,  on  any  change  of  the  constil 
rantee  body,  as  for  instance,  if  A,  B,  and  C  w 
body,  and  A  and  C  retired  in  favour  of  D  a 
new  firm  would  only  have  one  of  the  origi 
guarantee  would  cease  imder  the  law  befor« 
Amendment  Act.  There  was  an  exception  wh( 
firm  was  a  fluctuating  body,  as  a  banking  cc 
necessitate  ret,  the  body  is  a  continually  fluctm 
it  was  held  that  the  guarantee  would  continue, 
changes  in  the  firm.  "  Metcalf  v.  Bruin  "  (IS 
19th  and  20th  Vict.,  cap.  97,  to  a  certain  e 
modified  the  old  law ;  by  section  4  it  is  enactec 
tee  should  not  be  binding  (in  the  event  of  a  ch 
ranteed  body)  "unless  the  intention  of  the  ] 
promise  shall  continue  to  be  binding  notw 
changes,  shall  appear  either  by  express  stipulai 
sary  implication  from  the  nature  of  the  fon 


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It  will  be  observed  upon  tliis,  that  the  act  really  hardly 

1  any  change  from  the  old  law.     -AH  that  it  does  ia  to 

the  doctrine  of  **  Barclay  i\  Lucas  **  (which  it  seems  was 

^hat  questioned),  and  of  **  Metculf  r.  Bruin,''  which  does 

pear  to  have  been  questioned  at  alL 

any  rate,  by  the  act,  in  order  to  midcc  the  guarantee  a 

uing  guarantee,  where  tliero  has  been  a  change  in  the 

there  must  be  either  express  stipulation  or  necessary  im- 

on,  there  can  be  no  doubt.     The  doubt  arises  as  to  what 

jssary  implication,  and  that  question  arose  in  a  recent 

*' Backhouse  i\  Hall"    (6  New  Hep.  98).     In  that  case, 

ne  years  before  1840,  G.  W,  Hall  and  W.  T.  Hall  carried 

siness  as  shipbuilders  under  the  firm  of  G.  W,  and  "W*  T. 

W.  T.  Hall  died  in    1840,  and  the  business  was  then 

1  on  by  his  widow  (Ids  executrix)  and  the  co-executors, 

,  ^^\  llaU  under  the  fira  of  G.  W.  and  W.  T,  Hall,  the 

IS  before.     G,  W.  Hall  died  in  1856,  and  then  the  business 

irried  on  by  the  defendant,  a  brother  of  the  original  G.  W. 

iid  W-  T.  Hall,  with  tho  widow^s  of  the  two  brothers,  the 

lie  defendant,  acting  as  manager. 

r  the  partnership  was  dissolved,  and  the  business  was 

!tbrth  carried  on  by  the  two  widows,  and  their  nephew  M, 

brnary,  18o8,  on  the  application  of  M.  to  the  plaintiff's 

rs,  to  give  the  firm  accommodation  by  opening  an  accoimt 

to  bo  overdrawn  to  the  extent  of  £5,000,  the  plaintiff 

on  a  guarantee  by  M,  and  the  defendant  for  moneys 

due  not  exceeding  £o,000,  and  the  guarantee  was 

,..  .  to  be  for  the  firm  of  G.  W.  and  W.  T.  Hall,  the  old 

)f  the  firm,  although  there  were  no  such  persons  then  in 

^  ^  nruarantee  was  endorsed  by  Elizabeth  llall  and  Sarah 

(wo  widows,  who  were  the  real  firm*     On  the  17th 

iber  this  account  waa  overdrawn*     In  July  Elizabeth 

j;  her  death  was  known  to  tho  defendant,  but  not 

I  plaintiff  till  1862. 

her  death,   the  balance  due  to  the  plaintiff  exceeded 

&;    after  her  death    the  business  still  continued  to  be 

I  under  the  same  style,  and  the  account  continued  with 

Ur     In  July,  1861,  the  defendant  gave  notice  that  he 

not  be  liable  on  the  guarantee  for  any  future  advances,  and 

r^i  to  be  freed  from  his  guarantee*  At  that  time  the  balance 

;laintiffexceededi;»5,000,and  all  the  advances  on  which 

J  J  CO  accrued   wci^   made  subsequent  to  tho  death  of 

LTh  Hall*     The  question  before  the  court  was,  whether 

lant  waa  liable  under  his  guarantee   to  pay  to  tho 

V,  58 


i005 


726 


Binding  and  Commercial  Laic 


plaintiff  any  and  what  portion  of  the  balance  ( 
from  the  lirni  of  G.  W.  and  W.  T.  Hall  oe 
186L  The  only  liability,  if  any,  of  the  dei 
his  guarantee. 

It  was  argued  for  the  continuance  of  tl 
down  to  1858  the  business  of  shipbuilders  ha 
unintemiptedlv  under  the  firm  of  Gr.  W. 
though  both  (i.  W.  and  ^\.  T.  Hall  were 
guarantee  described  the  firm  as  G.  W.  and  W 
it  was  intended  to  confine  the  guarantee  to  1 
bers,  their  names  would  have  been  mention 
that  circumstance  there  was  necessary  im| 
guarantee  was  intended  to  be  independent  o 
firm. 

But  the  court  held  otherwise  :  the  court,  af 
law,  said,  "  Can  we  say  here  that  the  intenti* 
appears  by  necessarj'^  implication  from  the  nj 
or  otherwise  !  Looking  at  all  the  facts  of  the 
does  not  so  appear ;  there  is  nothing  to  show  it 
fresh  partners  entering  the  firm,  or  of  the 
-dying,  was  contemplated  when  the  guarantee 
there  is  nothing  in  the  nature  of  a  shipbuiJ 
would  necessarily  imply  such  an  intention.  < 
defendant. 

The  broad  result  of  this  case  seems  to  be,  tl 
rant^e  is  given  for  a  firm,  you  must  either  she 
of  the  firm  is  such  (as  a  joint-stock  company 
of  its  very  nature  it  must  be  known  to  the  gi 
a  continually  fluctuating  body ;  or  that  there  ; 
quite  inconsistent  with  any  other  theory  than  t 
intended  a  continuing  guarantee  notwithstand 
is  hardly  necessary  to  add  that  a  guarantee 
should  always  express  distinctly  what  is  the 
parties.  And  when  it  docs  not  do  so,  the  p 
favour  of  the  guarantor.  That  he  meant  to  b 
persons  whom  he  knew,  and  not  for  persons  af 
wlioia  ]io  knew  nothing. 


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727 

S  BANK  NOTES  ISSUE  BILL. 

moDB  oil  the  Ist  May,  on  the  motion  for  going  into 

9 

iie  Exchequer  exi>lained  some  alterations  which  liad 
sure,  and  which  wouLi  be  proposed  in  oommittoe. 

the  bill,  contending  that  the  Government  had  no 
oly  to  a  givcD  numijer  of  persons  who  had  done 
sntitle  them  to  clasi  legislation.  He  moved  that 
lie  subject  be  popipored  for  a  month, 
aons  gave  a  general  s  apport  to  the  bill,  but  suggested 
it  was  resolved  to  legislate  for  country  issues  they 

view  of  the  subject, 
approved  of  the  alteration   doing  away  with   the 

the  metropolis,   but  thought  the  measure  was  in 
ference  with  the  provisions  of  the  act  of  1844. 
I  Mr.  Goschen  were  in  favour  of  going  into  coni- 

consider  it  desirable  to  allow  the  question  of  banks 
»  present  condition. 

<i  the  bill,  believing  it  would  be  delusive  to  attemi>t 
ittee. 

:on  withdrew  his  amen<lment,  and  the  house  went 
ises  tip  to  clause  4  inclusive  were  agreed  to.     On 

ions  moved  the  omission  from  the  clause  of  words 
charging  a  certain  sum  upon  banks  wliich  increased 
xtncrs.  If  bajiks  were  to  be  strengthened  by  the 
irely  they  ought  to  be  allowed  to  make  the  increase 
a  tax  for  it. 

le  Exchequer  resisted  the  motion.  The  proposal  of 
»  remove  certAin  banking  disabilities  on  condition 
themselves  in  a  position  more  conformable  to  tlie 
X)osal  of  the  hon,  member  would  tend  to  remove 
ks. 

from  IVIr.  Alderman  Salomons,  the  lion.  meml>er 
at.  The  clause  was  agreed  to.  Upon  clause  0, 
B  Exchequer  moved  to  tu\i\  a  proviso,  "  That  nothing 
all,  except  as  to  the  right  of  transfer  of  issue  hereby 
[it  any  of  the  provisions  now  in  force  by  law  in 
)ther  than  those  whicli  shall  voluntarily  accei)t  the 
this  act."  The  proviso  was  added  and  the  clause 
lause  8, 

e  Exchequer  moved  an  amendment  to  the  effect 
[d  have  power,  by  notice,  after  the  1st  of  January, 
le  year  the  issues  of  tlie  banks  paying  the  por- 
►bject  was  to  ensure  that  the  banks  should  have 
liange,  whilst  the  policy  of  the  Act  was  to  fix  a  par- 
;h  Parliament  should  have  full  power  to  deal  with 
nks  under  the  act  of  1844. 

i  with  the  clause  as  it  originally  stoo:!,  and  oould 
ras  proposed  to  alter  it.  He  did  not  think  it  should 
Hot  of  the  Exchequer  of  the  day  t«o  determine 
)uld  cease. 


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Bauh  Notes  Issue  Bill. 


Mr.  Alderman  Siilomous  explained  tliat  the  clause  \ 
the  issues  of  all  the  country  banks  in  fifteen  years  ;  but  c 
or  three,  which  would  probably  accept  the  terms  offer( 

Mr.  Briscoe  said  that  he  should  support  the  bill  as  i 
by  the  Chancellor  of  the  Exchequer,  though,  had 
original  shape,  he  should  have  opposed  it. 

Mr.  Hubbard  said  one  great  argument  for  the  bi 
issues  should  terminate  at  a  given  date ;  but  now  tl 
amended,  to  enable  the  Treasm-y  to  terminate  those  h 
should  think  fit. 

Mr.  Ayrton  thought  that  tlie  clause  a.s  it  originally 
to  the  clause  as  amended.  The  notice  contemplated 
was  one  which  would  only  be  given  provided  the  go^ 
was  a  strong  one,  and  the  Chauceller  of  the  Excheqi 
enterprising  man.  He  believed  that  it  would  be  m 
leave  the  matter  to  these  contingencies. 

The  Chancellor  of  the  Exchequer  said  that  then 
difference  between  issuing  a  notice  from  Downing  S 
proposition  before  the  House  and  having  to  contend  "v 
gestions  and  amendments.  It  was  not  the  intention  c 
policy  of  this  measure  to  the  reconsideration  of  the  C 
chequer  of  the  day  ;  but  the  Act  was  clear  that,  w 
difliculties  there  might  bo  upon  collateral  questions 
ment  should  have  absolute  power  to  determine  the  i 
certain  period  by  those  banks  which  came  within  the 
the  question  upon  what  basis  issues  should  be  there 
no  doubt,  be  determined  by  the  then  Parliament,  w 
wise  act  of  1844  and  to  the  experience  which  would  b( 
time  for  giving  notice  should  arrive. 

Sir  S.  Northcote  wished  to  see  the  word  "  if  "  at  tl 
the  clause  omitted,  so  as  to  make  the  enactment  posil 
thetical. 

The  Chancellor  of  the  Exchequer  assented  to  the  pr 

Mr.  Salt  said  the  word  "  if  "  was  the  very  essence  o 

After  further  verbal  alterations, 

The  Chancellor  of  the  Exchequer  stated,  in  answer 
the  non-conforming  banks  would  be  untouched  by  the 

The  clause,  as  amended,  was  ultimately  added  to  th 

Clauses  9  to  18  were  then  agreed  to. 

Mr.  Alderman  Salomons  moved  an  additional  clai 
to  any  bank  of  issue  having  a  house  of  business  or  estal 
in  London,  or  at  any  place  not  exceeding  65  miles 
bank  shall  deposit  with  the  Commissioners  of  theNati 
of  Exchequer  bills  or  other  government  securities  ec 
authorised  issue,  to  be  retained  by  the  said  Commissi 
bank  shall  continue  a  bank  of  issue  with  a  house  of  h 
ment  in  London,  or  within  66  miles  thereof." 

The  Chancellor  of  the  Exchequer  said  there  was  in 
amount  of  unsecured  issues  of  bank  notes.  The  ho 
moved  a  clause  to  put  an  end  to  that  state  of  things, 
and  joint-stock  banks  to  give  security  for  their  nol 
virtually  passed  through  committee,  and  certain  banks 
in  a  more  favourable  position  towards  the  public  tl 
general.    They  were  invited  to  place  themselves  in  a  j 


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]^ttbUc  thfiu  tlie  uoii>confi>nniijg  banks,  andilie  lion,  ^fejitleiuau 
M^pOied  to  visit  thom  witii  a  lUnability  in  tb«  sliape  of  requiriniy 
md  only  tbem,  to  give  security.     In  point  of  fact,  the  proposition 
loD.  friend  wm  to  re<|uiro  security  from  those  banks  from  wkicli  it 
t  needed,  while  fnjin  those  from  whom  it  iniglit  bo  neetlful  he  tcwk 
mty  whatever.    His  hon.  friend  required  that  tlie  notes  issued 
be  secured  by  requiring  the  banka  to  deposit  with  tli©  ComraiBsionera 
ifatioDal  Debt  a  certain  amountofg^ivemmentsecurity ;  but  he  (the 
Uor  of  the  Exchequer)  was  not  at  all  certain  that  it  was  necessary 
at  all  sure  that  it  would  be  equitable  to  limit  the  banks  from  whom 
d  to  get  security  for  their  notes  to  government  security.  Under 
tiifltances  he  could  not  asfiont  tf>  the  clause, 
soirto  observations  from  Mr.  Heygate  and  Mr.  Goschen, 
iubbard  said  he  believed  the  bill  would  not  be  taken  advantage  of 
5  than  two  or  three  banks,  and  ho  therefore  heartily  wished  that  it 
'er  been  brought  froward. 
^■—^n  supported  the  clause. 

man  Salomons  then  withtlrew  the  clatiae  he  hail  proposed. 
..i.Micollor  of  the  Exchequer  said  there  were  a  certain  number  of 
banks  which  did  not  compound  for  the  Htamp  duty  on  their  notes 
f  would  be  put  to  some  disadvantage  in  respect  of  their  notes  which 
run  out  their  average  time.  Ho  had,  therefore,  prepare<l  a  clause 
avc  power  U*  the  Treasury  to  make  those  banks  such  oomponaation 
t  be  fair  on  their  stamped  notes  yet  in  circulation, 
clause  was  agrcetl  to ;  as  was  idso  the  preamble,  and  the  bill  tm 
1  waa  then  reported. 

e  25th  May  the  subject  was  again  brought  before  the  House  wlien 
[IhanceUor  of  the  Exchequer,  in  moving  that  the  hill  be  recom- 
Btated  that,  in  order  to  admit  of  the  insertion  of  the  amendments 
1  to  clause  8,  the  third  reading  would  be  postponed  until  the  fol- 
reek. 

[cygate  said  when  the  bill  Wiis  first  proposed  it  wae  reoeivetl  by  a 
rtiou  of  the  commercial  commimity  "with  dissent,  nor  had  it  been 
I  with  peculiar  favour  by  the  hanking  intere**t.  However,  even- 
n  fresh  proposals  being  marie  on  the  part  of  the  Government  to  the 
eeof  '  1  tankers,  it  was  carritnlby  a  majority  of  votes  that  the 

lid  U  I ,  and  it  was  therefore  in  fulfilment  of  an  honourable 

'    ^  tli  at  iie  intcndcMl  to  sup^wrt  the  propjeal  for  the  reoom- 
UiXl 

kl  contended  that  tlie  further  progress  of  the  bill  should  be 

the  country  bankers  had  li:ul  an  rtpportimity  of  fully  stating 

^ « it  I  and  with  that  view  he  intentled  to  move  that,  shoidd 

recommittal  of  the  bill  be  agreed  to,  the  coram ittee  be 

ttT  the  Whitsuntide  holidays. 

ireil  it  to  be  Im  opinion  that  it  was  not  com|»etent  to  the 
[♦rive  these  country  banks  of  the  jxiwer  of  isHUo  withimt 
i-naation. 

!h  Haid  the  r>a.^sing  of  such  a  measure  would   entail  the 

the  trade  of  small  countrj'  towns  ;  and  he 

IS,  held  that  day  at  the  Grosvcnor  Hotel, 

/  a  tiiajonty  of  41  to  12,  that  the  Chanoellor  of  the 

it^^wlto  witbdrfiw  thebiJL 

11  that  it  wmdd  he  better  topottpcme 
-he  Whitsuntide  holidays. 


Digitized  by 


Goc 


730 


Bank  Notes  Ishuc  Bill, 


Mr.  Graves  believed  that  the  couutry  baokers  wereb 
interest  to  accept  the  bill. 

Mr.  Hubbard  contended  that  the  private  banks  of  tli 
establish  a  claim  to  the  permanent  enjoyment  of  the 
quite  achuitted  that  they  had  a  right  to  make  as  many 
they  chose ;  but  it  was  a  very  ditfcrent  thing  to  p< 
paper  money.  The  regulation  of  the  coinage  belonged 
wliich  had  more  than  once  exercised  this  right  by  pro] 
copiKjr  and  silver  tokens.  What  (hfference  was  then 
snppressing  the  issue  of  paper  money  ]  The  fact  was  t 
issued  paper  money  pro  tanto  levied  a  tax  upon  the 
clear  thiit  they  coidd  not  set  up  any  claim  to  a  permiin 
kind.  The  Bank  of  England  had  not  the  slightest  inte 
It  was  an  utter  delusion  to  suppose  that  the  lapsing  oi 
c<^>uld  occasion  the  slightest  inconvenience  to  tliose  wh< 
For  wherever  there  was  a  demand  for  money,  that  den 
be  supplied  through  the  u.sual  channels  of  circulation, 
coidd  not  make  any  claim  to  a  permanent  right  of  issu 
Bank  Act  of  184=4;  on  the  contrary,  the  right  of 
interfere  whenever  it  thought  fit  was  expressly  rej 
He  thought  that  Parliament  had  a  perfect  right  to 
it  deemed  it  expedient  to  limit,  to  restrain,  and,  ii 
terminate  the  whole  of  the  country  issues, 

Mr.  Alderman  Salomons  said  that  when  the  bill  can 
ing  he  shoidd   move  that  it  be  read  a  third  time  th 

The  Cliancellor  of  the  Exchequer  moved  that  the  I 
mitted  no  far  as  the  preamble  and  clause  8. 

Mr.  Hadfield  moved  to  postpone  t/io  recommittal 
months. 

The  Chancellor  of  the  Exchequer  hoisted  that  the  h 
the  immediate  recommitment  of  the  bill. 

The  motion  for  the  recommittal  was  then  agreed  i 
immediately  left  the  chair. 

Mr.  Cobbold  moved  to  insert  in  clause  8  a  pro  vis 
banks  accepting  the  conditions  laid  do^ii  in  the  bill  si 
the  1st  January,  1880. 

Mr.  Ayrton  opposed  the  amendment,  and  characteris 
claim  sot  up  by  the  country  bankers  to  make  indelin 
which  their  power  of  issue  should  continue ;  and  ca 
mittee  not  to  assent  to  the  entangling  language  of  the 
Mr.  Cobbold. 

The  Chancellor  of  the  Exchequer  objected  to  the 
gether  out  of  character,  because  it  was  proposed  for  th 
introducing  utter  vagueness  and  uncertainty  into  th< 
bill,  and  would  practically  have  the  eflect  of  rather  i 
of  Parliament  a  belief  or  an  intention  that  the  priva 
act  might  be  continued  as  a  monopoly.  The  words  w 
in  themselves,  but  the  spirit  and  aim  with  which  \ 
rendered  them  inadmissible. 

After  some  discussion  the  amendment  was  withdraw 
of  the  Chancellor  of  the  Exchequer,  the  following  y 
in  the  preamble,  further  to  define  the  objects  of  the 
by  law  a  time  whereat  the  present  statutory  right  c 
of  the  bankers  obtaining  such  exemption  shall  deter 


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ercial  Bank  Corporation  of  India. 


rar 


^y  booome  stibject  to  the   enactments  (jf  the  Bank 
ter  mentioned  in  respect  to   lapsed  issues  of  bank 
lent  may  make  further  provision  concerning  them 
apon  grouncbi  of  public  x>olicy." 
passed  through  committee. 


arts  x)f  ^aint'^tocfe  iianhs. 


L\NK  CORPORATION  OF  INDIA  AND  THE 
EAST. 

general  meeting  of  this  corporation  was  held  on  the 
ndon  Tavern ;  Mr.  J.  J.  Lowndes  in  the  chair, 
rt  was  read : — 

jr  incorporating  the  bank  having  passed  the  great 
y,  18G4,  the  directors  took  immediate  steps  to  carry 
,  made  with  the  Commercial  Bank  of  India.  The 
as  made  on  the  22nd  Apiil,  1804,  in  accordance  with 
xspectus  previously  if*sued;  and  the  calls  on  these 
nie  trifling  exceptions,  been  since  paid.  The  amount 
31  st  December  last  in  respect  of  the  new  capital  was 
premiums  on  shares  allotted  in  England  £91,282. 10.5. 
1 1th  November  that  all  the  requirements  of  the  Lords 
I  be  comjilied  with ;  but  on  that  day  the  requisite 
ed,  and  business  was  commenced  at  the  heail  office, 
•n  21st  of  the  same  month.  On  the  Ist  January, 
the  Commercial  Bank  of  India  was  transferred,  at 
:he  Commercial  Bank  Corjwration ;  and  the  former 
y  for  the  j)urpose  of  liquidation.  The  assets  and 
tmercial  Bank  of  India  have  been  taken  over  exactly 
b  December  last. 

k  was  £500,000  ;  tlie  new  capital  when 
3  £oOO,000 ;  making  the  total  capital  oi' 

£1,000,000     0    0- 

year  1864,  after  writing  off  all  known 

December,  were        £154,42 G  11     4 

for  the  first  half  of  tlic  year  were  paid 
i  of  the  Commercial  Bank  of  India  in 
^  to  £45,000 ;  and  a  dividend  has  since 
1,  at  the  rate  of  10  per  cent,  per  annum 
p  capital  as  it  stood  on  the  31  st  Deccm- 
lalf  of  tlie  year,  amounting  to  £30,925...       £84,925    0    0- 

^       ...       £(39,501  11     4 


k  to  rei>ort  that  several  failures  have  taken  place  since 
of  the  present  year,  involving  losses,  which  in  the 
B  produce  markets  it  is  not  easy  to  estimate  accurately ; 
3d  it  prudent  to  carry  forward  tlie  entire  balance,  after 
ndends,  as  a  provision  for  them,  in  the  hope  that  such 


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732  Commercial  Bank  Corporation  of 

a  course  will,  uuder  the  circumstances,  meet  the  aj 
holders.  The  reserve  fund  of  the  Commercial  Ban 
on  the  Ist  of  January  amounted  to  £73,301 ;  and  th 
allotted  in  London  already  stated  £91,282.  10s, ;  am 
tlie  3l8t  December,  £4,717.  10«. :  £96,000;  making 
the  corporation,  £169,301.  In  addition  to  which  a  su 
has  been  transferred  to  the  corporation  by  the  Comn 
being  the  balance  standing  to  the  credit  of  the  in 
agency  in  Singapore  had  been  decided  upon  by  the 
India  in  the  beginning  of  last  year,  and  this  agen^ 
November  last.  The  directors  have  had  under  th 
acquisition  of  suitable  premises  for  the  bank.  In  the 
at  a  moderate  expense,  so  far  improved  the  pre 
as  to  be  enabled  to  await,  without  inconvenience, 
tunity  of  securing  more  commodious  premises.  L 
terms  of  the  deed  of  settlement,  the  directors,  v; 
Henry  Durance  Cartwright,  J.  J.  Cater,  F.  Chap 
Alfred  Middleton,  Kobert  Ryrie,  and  Edward  The 
of  office ;  but  being  qualified,  offer  themselves  i 
auditors  Robert  Strong  and  John  Ball,  Esqs.,  also  ofi 
apxx)intment ;  and  their  remuneration  will  be  fixed  I 
directors  regret  that  owing  to  the  delay  which  has  oc 
balance-sheet  and  accounts  from  abroad  (which  has  I 
cepiional  character  and  will  not  recur),  they  have  be* 
report  before  the  shareholders  at  an  earlier  period.'' 

Balance-sheet  for  the  year  ended  3U*  Dea 

LIABILITIES. 

Dr. 

Capital  subscribed  for 

Keserved    Fund — to  amount  brought  forward  from  < 
mcrcial  Bank  of  India,  £73,301  ;  premiums  in  re«p< 

shares  allotted  in  England,  £93,000 

Current  and  fixed  deposit  accounts,  &c 

Bills  payable , 

Sundry  accounts,  including  insurance  account      , 

Profit  and  loss  account,  £156,946.  11*.  4d.;    less  half-j 
dividend,  Commercial  Bank  of  India,  to  SOth  June  ] 

*^0,UvV     •••  «««  «««  «•«  ,,,  «,a  .■•  •••  ••• 


ASSETS. 

Cr. 

Capital  unpaid  ,. 

Premiums  unpaid 

Bills  receivable  and  loans  ... , 

Government  securities  ...     ., 

Balances  due  by  branches  in  their  accounts  current 

head  oftice       ,    ,„ 

Bank  furniture  at  head  office  and  branches      ,.•    ...     ... 

Stamps  on  hand     

Bullion  on  hand  and  in  transmission , 

Cash  in  hand  and  at  bankers*      , 


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Commercial  Bank  Corporation  of  India. 


733 


PROFIT  ASD  LOSS  ACCOUNT. 

of  dividend  and  bonus  to  tbe  shareholders  of  the 
nercial  Bank  of  India,  for  first  half-year,  ending 

Jane,  1864,    equal  to   18    per  cent,  per  annum, 
K)0;    nayment  of  dividend  on  the  whole  paid-up 
bX  of  tne  Corporate  Bank  at  31st  December,  1864,  at 
ate  of  10  per  cent,  per  annum,  free  of  income  tax, 
fXO      ■••      •••       •••       •••       •••      •••       •••       •••      •«• 

arried  forward  to  profit  and  loss  new  account 


t  at  head  office  and  branches  to  31st  December, 
after  making  provision  for  bad  and  doubtfal  debts, 
deducting  current  charges  and  extraordinary  ex- 
8  connected  with  obtaining  Bojal  Charter,  and  the 

^er  of  business  to  London 

nC'Cax       ••■       ..t      •••      ••■      •••      •••      •••      ••• 


£84,925    0 
69,601  11 


£154,426  11     4 


RBSEXTE  FUITD. 


credit  of  reserve  fund 


•••      ••• 


£156,946  11 
2,520    0 

4 
0 

£154,426  11 

4 

£169.301     0 

0 

£169,301    0 

0 

£73,801     0 
96.000    0 

0 
0 

£169,301     0 

0 

t  credit  3l8t  December,  1863,  of  Commercial  Bank 

Lia   •••   •••   ■••   •••   •••   •••   ••>   ...   ••■ 

on  new  shares  issued  by  the  Corporate  Bank 


lairman,  in  moving  the  adoption  of  the  report^  which  is  pub. 
length,  observed  that  the  corporation  only  began  their  direction 
ik  at  a  very  late  period.  They  were  in  hopes  that  arrangements 
7e  been  msbde  which  would  have  enabled  them  to  have  obtained 
'er  of  the  business  of  the  Commercial  Bank  early  in  July,  but 
ich  were  unavoidable  in  their  character  arose,  in  consequence  of 
I  corporation  were  prevented  from  taking  the  direction  of  the 
the  bank  until  the  dose  of  December  last.  In  declaring  a  divi- 
}  per  cent,  on  the  whole  paid-up  capital  of  the  Corporate  Bank 
it  of  last  December,  the  board  did  not  take  credit  for  any  wisdom 
ing  the  concern,  so  as  to  give  the  shareholders  who  had  taken 
a  premium  a  dividend  of  7  per  cent,  on  the  amount  which  they 
lor  them,  that  credit  being  due  to  those  who  managed  the  affairs 
i  Commercial  Bank  of  India  up  to  the  present  year ;  but  the 
hoped  that  they  would  be  able  to  present  a  prosperous  working 
loem  for  the  future.  The  detailed  reports  and  accounts  of  the 
only  been  received  by  the  mail  which  arrived  on  Saturday  last, 
aence  of  some  delay  which  had  arisen  in  transmitting  the  accounts 
Lcutta  branch  to  Bombay,  so  that  the  directors  had  only  been 
gn  them  as  presented  by  the  head  office  at  Bombay.  He  explained 
node  which  nad  been  adopted  by  the  Commercial  Bank  of  India 
106  to  the  accounts  was  to  have  those  of  all  the  branches  sent  to 
office  at  Bombay  and  there  made  up,  and  the  dividend  declared  upon 


Digitized  by 


Gol 


73 1  Commercial  Bank  Corpora f ion  of  L 

the  general  balance  then  shown.    The  Bombay  agency  1 

them  the  statement,  balance-sheet,  and  profit  and  loss  j 

manner  as  they  had  hitlierto  been  in  the  habit  of  pre] 

purpose  of  enabling  the  board  to  declare  a  dividend  upc 

also,  the  accounts  had  been  audited  in  Bc^mbay,  but 

they  htvd  been  audited  in  this  country  by  Messrs.  Str 

as   an  audit  was  practicable.     He  informed  the  sha] 

Cartwright,  one  of  the  directors,  having  occasion  to  ] 

own  business,  and  the  Bombay  agency,  which  hail  al^ 

assisted  by  a  local  board,  being  now  without  such  as 

tors,  unwilling  to  lose  Mr.  Cartwri^^ht's  valuable  sen 

him  to  give  his  assistance  to  the  Bombay  agent,  and  he 

\\\)ovL  the  board  for  the  purpose  of  enabling  him  to  ^ 

as.sistance  in  conducting  the  affairs  of  the  corporatior 

business  at  the  present  meeting  was  the  re-election  o 

auditors,  and  the  fixing  of  tlie  remuneration  of  the  la 

first  meeting  of  the  corporation,  and  he  hoped  they 

meetings  and  a  long  and  successful  career.     The  su< 

doubt,  consisted  in  the  amomit  of  other  people's  mot 

to  deal  with,  and  they  coidd  not  but  entertiun  sanguii 

from  the  soimdness  of  the  security  and  the  favoura 

they  would  be  able  to  offer,  they  would  attract  a  very « 

of  depositors  for  fixed  periods,  and  in  return  for  whic 

to  give  a  higher  rate  of  interest,  combined  with  great 

perhaps  be  given  by  any  other  similar  iiLstitutiou  \\ 

begged  to  move  the  adoption  of  the  reix)rt. 

Mr.  Thornton  seconded  the  motion. 

In  reply  to  a  shareholder. 

The  Chairman  said  that,  in  future,  the  accounts  w 
London. 

Mr.  Crouch  complained  that  sharclioldeis  who  ha« 
for  their  shares  received  only,  in  reality,  7  per  cent., 
old  shares  realised  10  per  cent.,  which  was  an  inef 
gested  that  the  dividend  shoidd  be  made  up  to  10  j 
that  the  balance  proposed  to  be  carried  over  was  amp 
puqwae. 

Mr.  Leggatt  was  of  opinion  that  it  would  be  extrei 
present  embarrassed  state  of  commercial  affairs  in  L 
course.  He  did  not  think  that  the  sum  of  £09,500  pi 
to  the  reserve  at  all  too  much.  If  there  was  auythii 
in  the  policy  of  the  bank,  he  thought  it  was  the  pa; 
and  b<muB  in  Bombay  for  the  first  half  of  the  year, 
than  18  per  cent,  per  annum,  because  there  were  at  tl 
symptoms  which  should  have  induced  hesitation  in 
dividend.  He  inquired  whether  the  directors  were  i 
item  of  £3,240,554  in  the  credit  account  put  down  a£ 
loans.  He  wished  to  know  the  amount  of  the  loans, 
the  item  was  separated  they  woidd  have  a  better 
whether  the  reserve  of  £69,500  would  cover  the 
present  state  of  commercial  affairs  in  India  they 
occurred. 

The  Chairman  said  he  could  not  give  the  exact 
receivable  were  about  £3,000,000,  the  remainder  b 
stated  in  reply  to  another  question  that  the  item  of  b 


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Emt  India  linnvcial  Amoehtimi* 

sEihect,  wbioli  was  mado  Vk\^  to  the  3lst  of  December,  liad 
1,  with  tlie  ctxooption  of  a  very  trifling  amount. 

;  red  whether  there  was  any  definite  iiocount  of  Icmseii 
i  by  the  reserve  of  £09,600, 
8aid  that  the  directors,  who  for  the  most  part  had  paid 
:©  most  aaxioTis  to  give  as  large  a  dividend  tta  possible, 
fays  bo  restramed  by  prudenee  In  reeommentUug  a  divi- 
present  case  they  ha*l  not  thought  it  prudent  to  declare 
bad  proposetl*  Witii  respect  to  the  ol>9erT»tion  of  in- 
;  unahle  to  Bt^e  it«  justice,  because  many  pers^oiiB  bad 
;\t  Bombay  at  a  high  prem  Jinn*  No  one  lyver  reckoned 
rest  ou  premium.  (Hear,  hear.)  Althnugli,  there* 
■rnnnetor  might  at  lirst  sight  think  himself  bacily 
on  reflection  agjee  that  a  new  bank  which  pai«l  h£T  per 
f  almost  pnietically  useless,  on  account  of  the  short  tim« 
rations  of  the  ctjrporation  had  been  carrietl  on,  was  not 
.  It  by  no  Tneani^  followed  that  because  they  considered 
i  over  the  £69,500,  that  %\uel  would  all  \k^  re«piireil  t«> 
ley  hoped  and  tnwted  that  it  would  not — (Hear,  hear) — 
ent  very  unsi^tled  ntate  of  affairs  they  considered  it  a 
o  adopt,  instc!\d  of  liividing  12  or  14  per  cent.  (Cheers.) 
ts  had  been  marie  up  tlierc  bad  been  one  or  two  heavy 
re  might  be  more.  All  that  he  could  say  wa«  that  all 
;  up  to  3l8t  December  lost  had  been  provided  for  out  of 
such  portion  of  the  £6I>,500  as  waa  not  required  to  meet 
isent  year  would  eventually  go  into  the  pockets  of  the 
Cheers) 

ifl  adopt*?tl  unanimously,  an*  I  tlie  directors  and  auditorn 
one  huntlred  guineas  per  annum  being  award eil  Uv  each 
or  their  remuneration, 
»u  of  the  election  of  auditors, 

►ok  tho  opportiuiity  nf  calling  the  attention  of  tJie  meeting 

;e  of  HAcertainiog  whether  or  nut  there  wan  a  regular  and 

if  directors  at  b<mr<l  nieetings,  pointing  out  that  it 

ri  attendance,  and  oonsefinent  ignorance  of  the  real 

xi   It  tlic  bank,  that  the  gitMvt  <  Us  asters  which  occasionally 

e   public   in   connexion    with  joint-stock  banking   Qrose; 

^  '"'  "'     ■  "         ^-   L^s  of  lato  had  shown   plainly   enough 

rtl  meetings  and  taken  an  active  part 

■    .-.aikf. 

f  the  hoD-  pn»prietor  called  at  the  oflice  he 
attemlance  of  direct*  ts  in  this  case  by  in- 

;iis  then  given  to  tlie  chairman  and  directors^ 
ingti  terminated. 

NT>TA  FIKANCXAL  AS80CUTT0N,  LEVIITED. 

d  meeting  of  the  sliareholders,  convenetl  in  ac- 
5  of  ajisociation,  mus  ^hold  on  the  28th  April,  at 
L.  Balfour  in  the  chaii\ 

n  eoiivencd  vu  ar;rorJ;\nce  with  the  articles  of 

'   meeting  of  the  associa- 

ifch  or  April,  1865.    The 


Digitized  b 


736  JEast  India  Financial  Association 

operations  of  the  company  in  Lidia  extend  over  a  peri 
only  at  Bombfiy,  and  of  seven  montlis  only  at  Calcutta, 
to  the  difficulty  and  expense  of  establishing  and  mainti 
amount  of  working  capital,  agencies,  with  efficient  coi 
the  company  was  not  able  to  do  more  than  meet  al 
middle  of  November  last,  since  which  period  all  the  p 
statement  of  accounts  now  submitted  have  accrued.  It 
circumstances,  have  been  unsatisfactory  to  close  the  ace 
of  December  last ;  the  statement  of  account,  therefore,  si 
the  result  of  the  operations  of  the  company  in  India  uj 
of  March  last,  with  further  interest  on  loans,  <fcc.,  then  ( 
April  instant,  and  at  the  head  office  to  the  latter  dat 
have  been  submitted  to  the  auditors,  aDd  you 
little  doubt  that  the  profits  will  eventually  be  sh 
imder- estimated.  It  is  proposed  in  future  to  ma 
the  books  of  the  company  on  the  31st  Decemb 
and  to  hold  the  general  meeting  of  shareholders 
March  following,  at  which  the  yearly  balance-sheet  s 
and  that  the  directors  shall  have  authority  to  pay  inter 
yearly,  out  of  the  profits  of  the  company.  The  approx 
accounts  now  submitted  shows  a  net  profit  of  £'3,7 h 
directors  recommend  that  an  interim  dividend  of  7s, 
income-tax)  be  now  declared,  and  paid  to  the  shareho 
the  5th  day  of  May  next.  This  will  absorb  £7,000,  le 
credit  of  profit  and  loss  account  of  £2,716.  1«.  3(Z.  1 
that  at  the  end  of  February  last  the  moneys  advanced  i 
India,  and  fuither  loans  sanctioned  (and  doubtless  sinc< 
ras  follows :— - 

At  Bombay  £99,149  1 

At  Calcutta  £113,846 

The  sum  of  £86,650  had,  up  to  last  advices,  been  ac 
land  and  house  mortgage  securities  in  India,  and  it  i 
least  £14,000  more  has  since  been  so  placed.  Of  tl 
advances  have  been  ma<le  to  persons  of  undoubted  p 
class  collateral  security.  As  to  the  former,  a  large 
required,  equal  in  the  majority  of  cases  to  50  per  < 
of  the  land,  carefully  estimated,  the  rates  of  interei 
than  11  per  cent. ;  and  as  to  the  latter,  the  securii 
company  are  all  confidently  believeil  to  be  of  an  imme* 
value,  affording  ample  margin ;  the  rates  of  interest 
varying  in  Calcutta  from  12  to  14  per  cent.,  and  in  Bon 
per  cent,  per  annum.  The  directors  have  proceeded  ca 
regard  the  present  position  of  the  company,  and  the  r 
satisfactory  and  encouraging  for  the  future.  The  direc 
very  numerous  applications  for  atlvances  on  land  and  he 
most  favourable  rates,  a  very  small  proportion  of  which 
will  enable  them  to  meet.  India  presents  an  almost  i 
business  of  this  nature,  and  the  directors  feel  that  in< 
alone  required  to  ensure  the  success  of  the  company,  1: 
and  future  profits.  The  directors  are  anxious  to  devo 
principally  to  the  working  of  the  land  credit  system,  a^ 
ducive  to  the  interests  of  the  association,  and  with  that  "^ 
to  afford  greater  facilities  both  for  obtaining  subscriptio 
tures,  and  placing  their  funds  in  land  securities  in  fiidi 
alter  the  name  of  the  association,  and  designate  it  undc 


'f,^  ^-^^^^  Digitized  by  VjOOQ IC 


East  Iiulia  Financial  Association.  737  I 

id  Credit  and  Finance  Company,  Limited,'  for  which 
ion  of  the  shareholders  will  now  be  asked.     The  directors  i 

[7artwright,  their  late  chairman,  being  obliged  to  return  j 

igned  h&  position  as  a  member  of  the  board.     In  accord-  : 

rticles  of  association,  three  of  yonr  directors,  viz.,  Mr.  . 

Ir.  James  Layton,  and  Lieut-Col.  W.  MacGeorge,  retire  ! 

but,  being  eligible,  they  offer  themselves  for  re-election^ 
ve  appointed  Messrs.  James  Dickson  and  J.  Hill  Williams  ! 

x>mpany,  who,  under  the  articles  of  association,  now  re-  \ 

uties,  but  offer  themselves  for  re-election.    In  addition  to  > 

isolations  as  to  payment  of  dividend  and  re-election  of 
ditors,  the  following  special  resolutions  will  be  submitted 

t 
16  association    do,  with  the  approval  and  sanction  of  the 
change  its  name,  and  that  the  new  name  of  this  company 
%  Land  Credit,  and  Finance  Company,  Limited, 
kions  for  the  amendment  of  certain  clauses  in  the  articles 

No.  1.  That  clause  No.  34  bo  amended  as  follows  : — *  The 
neeting  of  the  company  shall  be  held  in  the  month  of 
sar,  on  such  day  as  the  directors  may  determine.  The 
votings  of  the  company  shall  be  called  ordinary  meetings ; 
teral  meetings  shall  be  called  extraordinary  general  meet*- 
al  meetings  shall  be  held  at  the  office  of  the  company,  or 
ce  as  the  directors  shall  from  time  to  time  appoint.'  i 

No.  2. — ^That  clause  No.  87  be  amended  as  follows  : — 
ay,  with  the  sanction  of  the  oomx>any  in  general  meeting, 
d  to  be  paid  to  the  shareholders  in  proportion  to  their 
d  always,  that  the  directors  shall  have  authority,  without 
1,  to  declare  and  pay  an  ad  interim  dividend  half-yearly, 
lie  first  six  months  of  each  year,  out  of  the  profits  of  the 
time  being.' 

No.  3. — ^That  clause  No.  98  be  amended  as  follows  : — 

shall  be  made  out  in  every  year,  and  laid  before  the 
Df  the  company,  and  such  bidance-sheet  shall  contain  a 
property  and  liabilities  of  the  company,  arranged  in  such 
»any  in  general  meeting,  or  the  directors,  may  from  time 

or  adopt,  and  that  the  first  balance-sheet  shall  be  pre- 
efore  the  general  meeting  to  be  held  in  the  month  of 


tatement  of  position  qf  the  Companp  on  Hth  April,  1865. 

LIABIUTIKS. 

called   up,    £150,000;  less   calls    unpaid, 

...    £146,100    0  0 

>posits   ...  ...  ...  ...         87,800  10  10 

ices  per  contra  at  head  office    ...  ...         17,350    0  0 

office  in   provision  of  funds  for    Indian 

60,000    0  0 

ures  to  14th  April...  ...  ...  91  12  0 

venture  cotipons      ...  ...  •••  1  10  0 

UDce  as  per  annexed  statement  ...  9,716    1  3- 

£271.059  14  1 


Digitized  lny.VjOOQlC 


738 


East  India  Financial  Association 


Cash  balance  at  head  office— cash  at  bankers',  £19,92 1 .  7*.  1( 
peUy  cash  in   hand,  £33.  \Ss,  Id.;   commission,  £2, 

Held  in  India  for  loans  sanctioned— cash  at  Bombiy  agei] 
£12,749.  11«.  lid.  ;  cash  at  Calcutta  do.,  £21,914. 105. 

Advancesonlandand  other  securitic8-hcadofrice,i:25,626.1 
Bombay  agency,  £S6 ,400;  Calcutta.  £91,931.  VSs.Ad. 

Miscellaneous  account— preliminarv  expcnse3,£4,529.  lis  A 
exchange  on  drafts  on  head  office  per  contra  not  yet  d 
£2,827.  llJ.  7d. ;  furniture,  head  office  and  Calcu 
£3*41.  4*.  10c?.;  balance  of  entries  in  continnation  of 
profit  and  loss  accounts  of  the  Indian  agencies  to  1 
April,  1865,  £2,281.  2*.  Id. 


Dr. 


Approximate  Statement  of  Profit  and  L 


CHARGEI. 

Head  office— Directors'   fees,    management,  salaries,   ad^ 
tisemcnts,  stationery,  &c.  ...  -;    , 

TJombay    agency— mana;^cment,     agents'    commission, 
directors'    fees,    £724;    sundries,   advertisements,    i 
£1X7. 08,  Id,  .„  ...       ^  .-     . 

Calcutta    agency— management,     agents'   commission, 
directors'  fees,  £1,447.  4f.  2d.;  sundries,  rent,  advert 
ments,  &c.,  £322.  195.  Sd, 

Net  profit— head  office,    £1,448.   25.   Sd.;    Rirabay  agci 
£3,958.  Ss^  Sd.  j  Calcutta  agency,  £4,309.  95,  l\d. 


RECEI^-ED. 


Cr. 

(iross  profits 


The  Chairman,  in  moving  the  adoption  of  the  repor 
sidering  they  hacl  only  had  a  capital  of  £100,000  in 
months,  and  £146,100  for  three  months  ;  considering  ( 
expenses  fell  very  heavily  on  so  limited  a  capital,  au< 
their  operations  was  distant,  reqniring  time  to  place 
stitute  the  necessary  agencies,  the  directors  Lad  ver 
which  to  congratulate  the  shareholders  upon  the  amo 
had  been  attained,  and  the  still  more  favourable  pros 
They  had  commenced  last  month  receiving  moneys  on  < 
the  amount  which  they  had  received  at  present  was  i 
doubt  that  they  would  receive  a  very  fair  share  o 
objects  of  the  association  were  better  known  and  ar 
they  wanted  to  command  entire  succe^ss  and  produce 
results  was  more  money,  and  as  they  extended  their  op 
the  workmg  expenses,  adding  to  the  capital,  either  in 
w.^yn  ''''  ^^H^^A'^e^'  *^^^  g^^^ter  >^oiild  be  the  amo 
of  Mr  Ca^^  l^r  «l\areholders.  He  regretted  the  L 
ot  Mr.  Cartwright,  who  had  gone  on  his  own  accoun 


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nuia  Financial  Association,  7-j9 

ba<l  reccivixl  an  aspurance  from  tliat  geiitlcnian 
ratch  the  interests  of  tliis  company  in  that  city. 
ie<l  the  motion. 

that  there  was  still  dne  on  the  misoollancous  ac- 
ary  exj^ensos,  the  exchange  on  tlrafts,  and  ludiaM 
79.  U.S.  2(/.,  and  he  suggested  that  instead  of  pay- 
diare,  as  proposeil,  they  s^lioidd  devote  the  profitg, 
bo  tlie  liquidation  of  that  amount,  because  if  they 
cessarily  go  int/>  the  p:>ckets  of  the  shareholders 
would  tend  greatly  to  enhance  the  value  of  tlH.'ir 
roald  stand  better  with  the  public.  He  suggestecl 
should  1x5  reduced  from  £1,000,000  to  £500,000, 
lould  call  up  half  the  capital.  What  he  wanted 
ind  well  with  the  lending  public  ;  and  he  allu<le<l 
for  want  of  a  sufficient  capital  to  carry  on  tlieir 
3  wore  obliged  to  amalgamate  with  others  or  to 
ae  biLsiness  in  which  they  were  engaged  was  of  a 

to  employ  the  debenture  capital,  and  wliat  they 
orrow  mf»ncy  here  at  £5  or  £C  per  cent.,  and  to 
anging  from  11  to  18  per  cent.  That  being  th(»ir 
lid  \yG  forwarded  by  reducing  the  amount  o£tho' 
aake  calls  to  at  least  the  extent  of  half  the  amount 
dd,  in  his  opini<^>n,  tend  greatly  to  increase  the 
lohlers.  If  they  adopted  his  suggefition  of  paying 
lie  Bimi  now  proposed  to  bo  divided,  they  would 
md  no  paltry*  debts  hanging  over  them, 
vhether  the  item  of  £3,000  represented  calls  on 

that  it  did.  A  pi^irtion  of  those  calls  had  since 
nder,  about  £1,075,  would  be  paid  in  the  course 
b  tlie  rate  of  £0  i>er  cent,  was  paid  on  arrears  uf 

istions  from  Mr.  Brown, 

lat  the  item  of  £2,827,  in  the  miscellaneous  ac- 
jcen  included  by  Mr.  Jackson  in  the  £V»,979,  as  a 
jg  of  the  kiud,  it  being  the  amount  of  the  exchange 
n  fact,  interest  at  8  per  cent,  but  it  was  not  yet 
it  they  carritnl  to  the  credit  of  the  profit  and  loss 
ist  £4,520  preliminary  expenses,  that  the  item  of 
discount  on  advances  made,  for  which  they  had 
ceptional  securities ;  the  transactions  of  the  Cf»m- 
g  very  analogous  to  raising  money  on  debenturoR 
ereon  ;  the  profit  in  regard  to  the  advances  being 
.  With  resi>ect  to  tho  securities  they  had  all  been 
y  tho  auditors.  The  sum  of  £2,500  put  down  aH 
med,  but  liad  not  yet  been  paid, 
ined  that  the  sum  of  £2,281,  under  the  head  of 
epresented  the  intercf5t  on  the  capital  in  the  hnnds 
ip  to  the  14th  of  April,  and  was  not  a  liability  or 

the  preliminary  expenses. 
:it  that  accounts  relating  to  the  head  office  ouglit 
!  in  detiiil.     He  also  complained  of  the  heavy  ex- 
npany,  which  np  to  the  preseiit  time  was  sometliiug 
profits. 


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I 
I 

1 


740  Hast  India  Financial  Associatii 

The  Chairman  explained  that  while  the  returns 
months,  the  working  expenses  were  those  of  the  whol 
who  were  entitled  to  take  £2,000  a  year,  had  only  i 

The  report  was  then  agreed  to  unanimously,  and  c 
Jackson,  seconded  by  Mr.  Dickson,  the  retiring  din 

Mr.  Brown  moved  the  re-appointment  of  Mr.  J.  Di 
Williams  as  auditors,  and  proposed  twenty-five  j 
remimeration. 

In  reply  to  a  question  from  a  shareholder, 

Mr.  Dickson  said  that  the  audit  was  not  a  more  fo 
pigning  totals,  but  the  auditors  had  examined  into  th 
of  every  security,  and  themselves  added  up  the  vario 
in  the  books.     (Hear,  hear). 

The  motion  was  seconded  by  Mr.  Forester,  and  ca 

Mr.  Palmer  then  proposed  that  the  name  of  the  cc 
the  East  India  Land  Credit  and  Finance  Company 
the  new  name  would  describe  more  accurately  the  re; 
of  their  transactions.  Financial  by  itself  was  not  a 
the  true  operations  of  the  company,  because  they  hac 
the  land  credit  system  was  the  one  to  which  they  wo 
look  to  in  the  transaction  of  business,  and  if  they  ma 
known,  and  it  was  expressed  in  the  title,  the  debenti 
more  readily  ;  therefore  they  proiX)8ed  to  change  the 
view  to  extend  the  operations  of  the  society,  and  b) 
very  favourable  result.  At  the  same  time  he  must 
had  started  and  been  in  active  operation  the] 
ashamed  of  with  respect  to  the  amount  of  bu 
the  contrary,  they  had  every  reason  to  congratulate 
they  had  done  so  well,  and  they  had  no  doubt  thr 
Ihey  would  be  able  to  show  stiU  better  residts.  In  i 
tion  the  directors  had  had  under  their  considerat: 
reducing  the  nominal  value  of  the  shares,  and  were 
opinion  of  the  shareholders  on  the  question.  Thej 
if  the  shares  were  reduced  to  £25,  it  would  be  to 
company,  and  if  they  obtained  the  assent  of  the  who 
the  reduction  in  nominal  value  of  the  shares  coidd  b( 
trouble  or  expense. 

Mr.  Jackson  proposed  a  resolution,  with  the  ol 
nominal  capital  by  half,  but  in  the  course  of  a  s 
ensued,  it  appeared  that  such  a  proposition,  if  carri< 
upon,  any  resolution  to  that  efi'ect  being  illegal,  a 
agreed  to  adopt  the  proposition  of  the  directors. 

Special  resolutions  were  then  passeil,  altering  the 
with  a  view  to  holding  the  general  meetings  in  Marc 
power  to  declare  ad  interim  dividends,  and  provi 
balance-sheet  should  be  made  out  and  presented  at  tl 

A  cordial  vote  of  thanks  to  the  chairman,  directon 
on  the  motion  of  Mr.  Brown,  carried  by  acclamatioi 
was  also  given  to  Mr.  Cartwright  for  the  valuable  sei 
to  the  compiuiy,  and  the  proceedings  terminated. 


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r4i 


ILURE  OF  THE  PENNY  BANK  AT  BIRMINGHAM, 
3t^,  convened  by  the  mayor,  was  held  in  the  T»mTi-hall,  Birming* 
the2dth  April,  to  take  into  consideratitjn  the  afikirs  of  the  Penny 
id  the  be«it  meanjs  of  relieving  the  large  number  of  Binall  deptm* 
he  c**noeni.     The  room  was  crowded.    After  a  few  introductory 

road  the  following  statement : — ^'^The  Birmingham  PeJiny 
II  Lituttfd  in  the  year  1851,  for  the  purpose  of  promoting  the 
-  L\  iijj   lUiougBt  the  indniitnal  cl^^ed,  and  it  was  intended  that  it 
'    nris'ly  self-supporting.     Of  the  original  committee  only  idx 
'    is:,.-;  taken  any  part  iu   the  proceedings  of  the  bank,  and  sinca 
\^s  iieeu  under  the  control  of  Mr,  George  Barlow,  ooachbuiider, 
omwieh  ;  Mr.  Benjamin  Hawkes,tcjy-dealerj  New-street  ;  and  Mr. 
Walliugtou,  txiy-dealer,  BtilUistreet.     The  bank  was  opened  for 
in  February,  1851,  and  on  the  31 8t  of  December  in  that  year  the 
j^nioiiuted  to  £7tiO,  .*t*.  2d, ;  on  the  31  at  of  Dec<3mber,  185G,  the 
:0*1  the  sum  of  £5,249.  8*.  Td. ;  on  the  31et  of  De^iember,  18^, 
1  in  £r».5n4.  4».  8*/. ;  and  at  the  present  time  they  ate,  accord- 
lit  in,  £8,0G1.  4«.  8c/»  spread  over  7,431  actxiunta. 
ut  of  the  bank  nearl}^  170j*JO0  accounta  have  been 
:  ly  above  3(J0  in  one  day ;  there  have  a^o  \yeen  at  times 
\  menta  made  iu    one  day,  and  fref|ucntly  above   l,Ot>U 
The    total    amount    received    in    deposit*    irom.    the    begin ^ 
been  upwards  of   £140,000.     The  expectations  of  the  founders 
lank  OA  to  its  being  Belt*8U|>ix>rting  have  been  disappointed,  the 
md  exp*!fti3es  irom  the  beginning  having  been  in  each  year  greater 
i  inc*>me,  the  t<*tai  amount  of  charges  and  expensen  over  income 
Hxu  nearly  £3,000,     The  last  balance-sheet  of  assets  and  liabili- 
made  out  on  the  3lKt  December,  1857,  but  many  of  the  assets  then 
n  mi  goiKl  have  turned  out  complete?  losses,  whilst  others  have 
II  value.     The  losses  of  this  kind  amoimt  to  £2,5(X).     There 
1 1  losses,  partly  through  frauds  on  the  bank  by  depositors  and 
nmt  of  £1,200.     It  is  probable  that  the  assets  of  the 
It  down  in    the  statement  at  £1,703.  I8if.  Ofi,,  may,  on 
♦'"-t her  depreciation,  and  may  not  ultimately  produce 
pa>^ncnt  of  expenses,     Tlie  position  of  th»i  parties 

-i has  been,  f*s  far  as  practicable,  aaceitaincil,  and  if 

U?y  is  avoideil,  it  is  cxpedX'd  that  at  lea«t  £1,500  will  be  obtained 

Ml      Tf  tht^y  arc  ma<Lie  bankrupts  their  sejX'U'ato  creditors  must  be 

e  the  creditors   of   the    bank    can    obtain  one  shilling 

ini»»     It  is  pro{iosed  to  tidte  the  most  peremptory  pro- 

sigaimtt   any   who    are  liable  t-o  jwty  and  who  may  re- 

u^       The  aflairs,   tlierefore,  stand  thus: — Due   by    the 

>i    UUal    amount   c:\poctt^d    U>    be    divided    amongst    the 

-',600;    ileficieucy,    £6,CHK>.       It   is  proix>sed  that  an  ofTort 

t;    U)    subscribe   suHicieut    moneys    to    pay    smaller   deposits   in 

to  »  limit  tct  be  Jixed  at  this  meeting,  and  so  alleviate  the  dia- 

Mtlierwise  ensue  to  sneh  of  the  iudustrlal  clasnes  as  have 

A  Havinga  in  the  bank.     The  larger  depositors  will  then 

iissets  divided  amongst  them,  and  m  tdl  probability 

I  very  shortly  be  made." 

d,  and  Mr.  Dixon  seconded,  the  following  reso. 
I  g  iB  of  opinion  tb^t  a  aubftoriptiou  should  forth* 


>:ed  by 


Go( 


r42 


Anglo- Austrian  Bank. 


with  be  commenced  for  the  purpose  of  raising  a  sun 
wliich  will  suffice  to  pay  in  full  all  depositors  of  am 
£3,  and  in  number  6,903,  leaving  the  remainde 
being  depositors  of  larger  sums  and  numbering  619,  tc 
the  bank,  and  deal  with  the  directors,  trustees,  and  n 
Buch  maimer  as  Uiey  may  be  advised." 

Councillor  Brinsley  said  he  thought  they  proposed  tc 
end.  They  should  first  of  all  have  an  investigation  in 
bank,  and  to  that  end  he  would  propose  the  following  ai 
a  subscription  be  forthwith  entered  into  for  the  purj 
legal  and  other  expenses  neceasary  for  instituting 
thorough  investigation  into  the  conduct  of  the  bank,  th 
and  other  officers  thereof,  and  their  liability  to  pay  aU 
sitors,  to  the  extent  of  the  a&sets  of  the  bank,  and  the 
of  the  directors,  trustees,  and  managers  thereof." 

Tills  was  seconded  by  Air.  Langford,  and  carried  by 


FINANCIAL  ASSOCIATION  OF  INDIA  Al 

At  the  first  ordinary  general  meeting  of  the  Finan 
India  and  China,  Limited,  held  at  Bombay  on  th 
directors'  report  stated  that  the  Company  was  register 
and  commenced  oi>erations  on  the  1st  July  last,  with  i 
of  Rs.  120,00,000  (£1,200,000),  and  Ra.  30,00,000  (£3 
appears  that  the  association  has  been  interested  in  tl 
following  companies,  besides  having  had  a  considerabh 
Canning  shares,  viz. :  The  Bank  of  China,  the  Boml 
Company,  the  Bengal  Credit  Mobilier.  The  net  \ 
Rs.  0,00,000  (£60,000)  derived  from  premiums  on  newsh 
from  another  source,  amount  to  Rs.  15,64,730  (£156,0( 
proposed  to  apply  them  as  follows  :  Rs.  4,63,150,  divid 
per  cent,  per  annum  on  30  lacs,  from  22ud  June 
3,00,000,  dividend  at  the  rate  of  20  per  cent,  per  annui 
30th  September  to  31st  March  ;  Rs.  46,944,  income 
reserve  fund  (in  all  Ra.  10,00,000,  or  £100,000)  ;  R«.  5 
forward  to  next  half-year.  The  directors'  report  was 
dend  at  the  rate  of  20  per  cent,  per  annum  declared. 


ANGLO-AUSTRIAN  BANK. 


The  following  is  the  report  of  the  directors,  sul 
general  meeting  of  the  bank,  held  in  Vienna,  on  the  2 

"  In  laying  before  you  the  report  of  the  bank's  o] 
year  ending  31st  Deceuiber,  1864,  we  beg  to  offer  a  fe 
vations.  The  idea  of  the  organization  of  our  institi 
suggested  by  two  of  the  members  of  our  Eug 
Greufell  Glyn,  Esq.,  M.P.,  and  Archibald  S< 
Esq.,  M.P.  In  the  course  of  the  year  18t)3  the 
by  persons  of  commercial  experience  in  Austria,  were 
all  arrangements  for  the  due  constitution  of  the  bank 
its  actual  operations  on  the  2nd  January,  1864.  The 
unfavourable  to  the  prosecution  of  the  main  object  o 


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Anglo-Amtnan  Bank. 


r43 


;ing  the  commercial  and  financial  relations  between 
The  abnormal  high  rate  of  interest  wliioh  prevailed 
it  that  year  interfered  with   the  flow   of   English 
bile  the  unfavourable  state  of  the  commerce  of  that 
oufi  failures  which  took  place  in  both  countries,  had 
d  etfect  on  all  mercantile  and  financial  business.    It 
ent  upon  us  to  proceed  with  tlie  greatest  caution, 
sfaction  to  be  able  to  inform  you  that,  in  spite  of 
ces  through  which  we  have  had  to  steer  our  course, 
n    establishing  an    imf)ortant    and    remimerative 
rhile    engaging  in    transactions    to  the  extent  of 
have   only   sustained  a    trifling  loss  in   bills    re- 
gratifying  to   us   to   be   in  a  position  to  report, 
ofl:'    all     preliminary    expenses     (excepting    only 
rhich  is  distributed  over  Ave  years),  providing  in- 
the  paid-up  capital,  setting  aside  10  per  cent,  of 
rve  fund,  and  paying  a  further  10  per  cent,  as  pro- 
for  the  directors'  remuneration,  there  remains  a 
cent,  on  the  paid-up  capital,  thus  giving,  with  the 
1  account,  a  dividend  for  the  year  of  8^  per  cent. 
xl  out  that  the  operations  of  the  bank  were  actually 
January,  1 804.    They  consisted,  at  first,  exclusively 
sion  business ;  and  in  this  we  speedily  8ucceede<l 
ud  higldy  respectable  connexions.     On  the  Ist  of 
need  issuing  deiwsit  notes  (Kassen-scheine)  bearing 
of  OUT  basiness  increased  rapidly.     Shortly  after 
our  *Giro'   business  was  initiated.      The  a<lvan- 
the  public  have  not  yet  been  adequately  recognised, 
sr  of  accounts  opened  in  this  department  is  increas- 
the  more  gratifying,  inasmuch  as  it  is  one  of  the 
e  bank  to  give  facilities  by  all  means  in  our  power 
for  whose  special  convenience  this  class  of  business 
On  the  loth  September,  1864,  we  commenced  oiu: 
•schusa  Geschjift),  the  lowest  amount  of  advance 
ited  with  us  being  fixed  at  fifty  florins.     By  this 
that  we  have  satisfactorily  met  the  wishes  and 
blic,  and  are  glad  to  inform  you  that  the  number 
jmselves  of  it  has  rapidly  increased.     As  regards 
(Waaren   G^schaft)  we  have  considered  it  best, 
applications,  to  delay  for  the  present  the  establish- 
f   business.     In  like   manner   we   have  hitlierto 
aortgage  business,  on  the  ground  that  the  existing 
law  puts  great  difficulties  in  the  way  of  a  rapid 
ated  securities,  and  we  have  felt  it  our  duty   to 
ry  case  as  readily  available  as  possible.     In  con- 
lections   with  some    commercial  imdertakings  in 
mind  the  rapid  increase  in  business  which  may  be 
itry  from  the  increased  me^ns  of  locomotion,  and 
st  prevailing  there,  we  resolved  to  form  a  branch 
rg.  Tliis  came  into  operation  on  the  2ud  of  January, 
in  a  position  to  re^wrt  its  progress   at  the  next 
Qore  important  operations  in  which  the  bank  haa 
e  past  year,  we  may  mention  the  advance  matle  to 
at  of  the  Austrian  Government,   and  which  baa 


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744  Anglo-Austrian  Bank. 

already  been  repaid.  In  connection  "with  this  is  to 
participation  in  the  Silver  Loan  of  seventy  millio: 
loan,  in  co-operation  with  several  banking  houses  i 
-where,  the  bank  accepted  a  share  of  23J  millions.  ( 
this  loan  was  entered  into  under  the  condition  that 
parties  interested  in  the  same  should  be  formed  into  a 
Syndicate  the  Minister  of  Finance  afterwards  attache 
f  erred  with  them  respecting  the  remainder  of  the  loan 
that  the  formation  of  this  Syndicate  mainly  contribute 
firmness  with  which,  under  the  pressure  of  so  manyn 
stances,  this  public  security  was  maintained,  so  that, 
large  sales  which  have  been  made  since  the  11  th  of  Jan 
Syndicate  was  dissolved,  no  serious  fluctuations  in  its 
in  those  places  for  which  the  loan  was  designed.  Tl 
interested  in  the  Customs  Loan,  which  was  brought 
half  of  the  year  1804.  The  amounts  of  our  j 
Silver  and  Customs  Loans  have  both  been  realised 
year,  so  that  no  loss  can  now  arise  on  either  of  thes 
the  objects  of  private  enterprise  in  which  the  I 
itself  we  have  more  especially  to  call  attentioi 
Czernowitz  Railway.  The  bank  undertook,  as  its  b 
junction  with  the  International  Financial  Societ 
share  capital  of  the  company,  which  was  successfully  a 
thus  calling  particular  attention  to  some  of  the  large  t 
our  bank  has  actively  interested  itself  during  the  past 
omit  to  mention  that  the  directors  have  been  from  tii 
employed  in  the  investigation  of  other  objects  of  indu 
some  cases  the  bank  has  declined  all  participatioB 
yielded  the  field  to  rivals  prepared  tooflfermore  tempti: 
all  such  circumstances  the  directors  have  acted  on  the 
matter  in  question  was  either  wholly  undesirable,  or 
which  they  oould  not  prudently  engage,  except  on  < 
applicants  were  unwilling  to  entertain.  We  think  that 
under  your  notice  all  the  points  which  require  parti 
shareholders  having  made  their  payments  in  cash,  it 
provide  against  the  contingency  of  loss  arising  from  i. 
Austrian  currency.  For  this  puriX)se,  as  you  will  ol 
panying  balance-sheet,  we  have  oj^eued  a  currency 
account,  calculated  at  the  rate  of  15  per  cent,  on  the 
amount  (fl.900,(X)0)  wiU  be  kept  intact  and  separat 
such  time  as  the  notes  issued  by  the  Austrian  Privili 
shall  have  been  paid  in  cash,  or  until  a  general  meetin: 
shall  have  decided  otherwise.  We  have  consequently  in 
safe  and  available  securities,  which  we  hold  against  the 
depreciation.  We  have,  however,  considered  it  ad  visal 
cai)ital  in  foreign  money,  regulating  the  amount  of  the 
or  downward  tendency  of  the  Austrian  currency,  and  s] 
accordance  with  this  principle.  The  profit  for  the  paj 
ing  all  expenses  (including  the  fixed  remimeratio 
amounts  in  Austrian  currency  to  fl. 673,11 8.84  ;  Austi 
fl.56,7(>2.32— total,  fl.616,356.52.  From  this,  in  accort 
;  the  statutes,  6  per  cent,  interest  on  the  paid-up  capii 

I  to  be  deducted,  amounting  to  fl.360,000  in  silver  mon< 

of  currency  in  the  past  year,  is  equal  to  fl.402y853.52, 

I  » 

I 


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London  and  South  African  Bank 


745 


ngfrom  this  sum,  in  acoordaiice  with  tbe  statutes,  10  per  cent,  to 
aide  as  reserve  fimd,  fl. 21,350, 30,  there  ia  left  11,192,162,70 ;  and 
rum  this  amount  10  per  c^iit.  as  'Tautitui©/  to  bt- divided  among 
tihers  of  the  Yieiina  and,  London  coinmittee«,  fl.lfi,215.27  ;  kav- 
<?  iiiBtributed  among  the  shareholderB  a  bfilauce  of  fl.  172,937.43, 
ting  a  dividend  of  fl  1.72  (lieing  the  eqniviiknt  of  2^  per  cent.)  per 
nd  showing  a  total  dividend  for  the  year  1804  of  8^  per  cent.  The 
(fl.7,933.4:i)  remaining  in  hand,  after  payment  of  the  above  divi- 
e  propose  to  carry  forward  to  the  cre<Jit  of  profit  and  loss  account 
arreni  year.  We  ^hall  have  to  jioint  out  for  the  consideration  of 
rral  meeting,  some  clauses  in  the  statutes  in  which  we  tliink  it  will 
d  deeirableto  make  some  alterations.  Lastly,  we  have  Uy  infomi 
t,in  acx3ordanc«  with  the  statutes,  the  exiftting'scrip  certificates  will 
be  exchangpij  for  provisional  shAree  with  coupons. — By  order  of  the 
Council  of  Directors.** 


LOJTOON  AND  SOUTH  AFRICiLN^  BANK. 

rth  onlintury  annual  general  mcfetiny  ot  the  proprietors  tif  this 
B  held  on  the  4th  May,  at  the  London  Tavern  ;  Mt.  J,  R.  Thompson 
hair. 

allowing  report  was  taken  aa  read : — 

T  deiincting  all  charges  for  the  past  year,  and  provitling  for  bad 

btful  debts,  there  remaina  a  diapOBable"  b*Uanoe  of  f  2^1,984,  Ss,  4(i, 

ia  sum  £2,5<)0  will  have  to  be  placed  to  the  reserve  fund,  wliich 

^n  aruount  to   £18,053.  6*.  M,,  and  £1,608.  O^.  to  preliminary  ex- 

At  tVie  end  of  the  next  yetir  tliis  latter  a^jseount  will  be  doubled. 

regard  t<»  the  depressed  state  of  trade  in  the  South  African  tolonit^, 

eemed  prudent  in  OcU.>l>er  last  to  declare  an  interim  dividend  of 

oent,  only,  but  tiie  satisfactory  returns  sitice  received  from  the 

>raiichea  enable  the  diret^torsto  recommend  for  the  approval  of  the 

iderB  a  dividend  of  18.*.  per  share,  which,  with  the  payment  made 

"-    ^^'  V.  will  he  at  the  rate  of  8  jht  cent  per  annum,  free  of 

11^  a  balance  of  jtJ377.  9*,  4*i,  to  lie  carried  forward  to  the 

tunt  for  the  next  half*year.    A  branch  haa  recently  been 

ud,  with  a  proepeot  of  success.    The  directors  who  retire 

'  r.  John  Barry,  Coh.nel  J,  Holland,  Mr.  W.  Niool,  M,P., 

d  G.  B.  Tremenheere,  who,  being  eligible,  offer  them- 

i  iHD.     It  ia  with  great  regret  that  the  di  rectors  record  the 

Mr.  HtMiry  Sharman,  one  of  the  auditors  of  the  bttuk.     It  wili  be 

Ttr.  A|i7Mdrit  ;mi  Hti.iM  for  the  ensuing  year.*' 

lud  anaets  at  I>»n<lon  office  and  branches  t*j  Slst 

.  Capital  paiii  up,  £40U,(:H)0  ;  do.  new,  £98.733  ; 

► ,  tii'ouiiition,  notes  and  Bank  post  biU>;    ''  '  Is.  H^L  ; 

Irt.llfi.;  bills  payable  and  other  liabilitir  ;».r>ji.4ii.; 

t\s.  3d.;  balance  of  undivided  profit,  iL44,4;i9,19ef,  4d.; 

lint  of  dividend  to  June  30,  1864,  £17,455.  11«., 

,  £1,269,780.  4*.  &d.     AsaeU ;  Specie  on  hand,  and 

<i,  4*.  Ofi.  :  bank  premises,  furniture,  fittinga,  and 

'      "      "V ;  local  bills  discounted,  bills  re^seivable^ 

4,    £1,144A*8*>,  4.«.  9d. ;    preliniinary  ex- 

L  9*.  9r/,  J    less,  deducted    Ufi^^    18*., 

yiK4^.  6ii. 


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7iG 


London  and  South  African  Bai 


Profit  and  1()83  account:  To  interest,  commission, 
£12,570.  G.H.  1)J. ;  to  char;^^^es  for  the  past  year,inclu(lii 
other  expenses  at  head  othco  and  branches,  jL'l'6j622.  2 
bills  not  due,  £11^,011).  Is.  lid. ;  to  payment  on  accoui 
montlis,  ending  oOth  June,  18(]4  (paid  18th  October,  ] 
tax),  1*17,455.  ll.s. ;  together,  £(;i>,367.  2s.  7d.;  to  t 
£20,984.  8^.  4(1  ;  total,  £1)3,351.  10s.  lid.  By  balanc 
brought  forward  a?  per  last  annual  statement  of  3 
£539. 15.^.  4(1 ;  by  rebate  on  bills  not  due  31st  Dec,  IJ- 
£7,607. 105.  9d. ;  by  gross  profit  for  the  year  ending  3 
making  provision  for  doubtful  debts),  £85,204.  4s.  10</. 
total,  £03,351.  10s.  lid.  Proposed  appropriation,  viz 
months  to  31st  December,  1864,  at  18^.  per  share  (to  he 
tax),  £22,408. 13s. ;  amount  to  be  applied  in  augments 
£2,500. ;  amount  to  be  applied  in  reduction  of  pr 
£1,(>08.  Qs. ;  balance  to  be  carried  to  next  accoi 
£26,084.  8.S.  4:d. 

The  Chairman,  in  moving  that  the  report  and  stat( 
ad(ipted,  observed  that  at  the  last  meeting  the  whole  o 
been  paid  up,  a  few  of  the  shares  in  the  colony  not 
ferred ;  now  the  whole  was  annplete,  and  the  entire 
stood  in  the  books.  It  would  be  satisfactory  also 
had  been  a  considerable  increase  of  deix)sit43,  the  ai 
1863,  having  been  £250,000,  and  in  December,  18C 
proved  that  the  public  had  confidence  in  the  establ 
gard  to  the  circulation,  it  had  bt?en  necessarily  rest 
managers,  they  being  re(\uired  by  the  deed  of  inw.i 
large  amouut  of  unemployed  capital  in  hand  to  me 
come  in  from  any  of  the  branches.  An  applicatioi 
government  for  an  alteration  in  the  charter  for  the 
the  company  from  this  dilHculty.  That  application 
and  the  new  charter  now  only  awaite<l  the  signati 
and  he  had  no  doubt  that,  as  the  result,  they  would 
at  some  future  time  a  very  large  addition  to  the  circ 
of  bills  not  yet  due  fonned  a  large  item  to  the  d 
it  had  been  taken  at  the  very  fullest  rate.  The  g 
were  £69,800,  and  in  1864  £85,000,  which  he  subm; 
iory  rate  of  progress.  (Hear,  hear.)  The  res( 
amoimted  to  £15,500,  now  by  the  appropriation  of  t] 
this  year  it  would  stand  at  £18,000.  The  prelimina 
stoofi  at  £3,216.  They  now  placed  to  the  credit  of  t 
and  the  present  year  would  obliterate  altogether  p 
from  their  liabilities.  In  1863  tlie  gross  amount  of 
was  £17,450 ;  and  for  the  year  1854,  if  the  recommen 
the  present  report  were  adopteil,  it  would  be  £22 
result,  he  thought,  showed  a  gradual  and  satisfactory 
gress.     (Hear.) 

Colonel  Holland  seconded  the  motion. 

In  reply  to  a  question, 

The  Chairman  said  that  all  bad  and  doubtful  deb 
in  the  accounts. 

A  Shareholder  remarked  that  while  the  profits  were 
more  than  in  the  previous  years,  they  were  only  payin 
The  increase  ought  to  give  thorn  3  per  cent,  more  c 


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'Atiatic  Banking  Corporaiioiu 


747 


iftiirnau  stated  tliat  the  directaiB  would  di>  all  tliey  ctjuld  to  in- 
Ke  Jipidtind,  but  under  all  circumataacea  lie  thought  the  iucrease 
>reseut  dividend  over  that  of  the  last  half  year,  when  it  was  14d» 
re  ft^ainst  18^.  on  the  present  accasion,  was  saUsfactory. 
STiier  to  a  SharehoMerj 

[ay  ward,  the  auditor,  stated  that  the  overdue  bills  hswJ  heeu  brought 
lie  notice  of  the  auditors,  and  the  amount  to  31st  December  last 
1,000.    Since  then^  however,  about  half  that  amount  h;wl  come  in^ 
1  regard  to  the  reinaiudur  it  was  amply  <x>vered  by  securities, 
lotion  was^then  put  nnd  carried  uuauiuifnisly. 
lividend,  at  the  rate  of  18^.  per  share,  making,  with  the  14ji.  paid 
prerious  half-year,  8  per  cent,  for  the  yeiu*,  was  then  affirm ed. 
•tiring  director*  were  re-elected,  and  Mr,  Majmard  was  re-elected 
rofeflsional  auditor,  and  Mr.  Jones  waa  elected  auditor,  in  the  room 
iharmau,  deceased, 
anal  vote  of  thaaks  to  the  chiuiiuan  and  directors  oonduded  the 


ASIATIC  BANKING  CORPORATION, 
t  ordinary  gtsneral  njeeting  of  the  flhareholders  of  this  corporation 
[  on  the  4th  May,  at  the  oilices,  Lombard  Street  -  Mr.  F.  Boykett 
lair. 

.  W,  liftwrence,  the  general  mana^^er,  read  the  following  report ; — 

court  of  <brtietors,  in  proHcntiug  tiieir  first  report  aud  b&lanoo- 

vxe  great  pkviHure  in  oongratidatiug  their  oo-proprietoris  upon  the 

iiifcd  by  the  bank  during  the  brief  period  that  has  olapaed 

iineiiceineut  ijf  its  ojxirationK,     The  half-year  for  wliich  tho 

;ut*  now  rendered,  and  during  whicli  jH?riod  a  portion  only  of  the 

braxtche^  of  the  bank  have  been  working,  reprenentH  not  only  the 

ourable  season  of  the  year  in  India,  but  huA  also  been  character- 

i  severe  monetary  criisia  in  this  country,  which   hni*  uec^issitated 

L^iee  of  the  utmost  oiwition  in  conducting  the  business  of  the  bank, 

onuequent  restriction  of  its  operations.     Nutwitl^tiinding  these 

'-'^   +he  net  prolita,  after  detiucting  all  charges^  upon  the  current 

ly  bank,  and  fully  providing  for  all  bad  and  doubtful  debt«, 

7ri,4,TJ,  is,  Sd.     This  sum  the  directors  proi^oae  to  distribute 

J    ntanner^  viz, : — £37,500  by  a  dividend  at  the  rate  of  15 

;  I  uin  :  £12,5<X)  by  a  bonus  of  10i<.  per  share,  equal  to  5  f»er 

:  U*get)i«r  e«jual  to  20  per  cent*  j^ur  annum  on  the 

t  December,  to  b«  paid  to  the  propriet<jr8  free  of 

AJt ;   .C^,484. 11*,  lid.  in  liquidation  of  the  whole  of  the  preliminary 

i ;  il5,500  to  be  iulde<l  tti  the  rerterve  f  mul,  which,  ^ith  the  premiuma 

rom  tbe  rfHfent  iasxie  of  new  shares,  will  then  amount  on  liUth  June 

£175,0UU;  ifcud  the  balanoe,  say  £6,454.  12j»,  9d.,  they  propof»e  to 

i       cre^ht  of  the  profit  and  loa^  accoiuit  for  the  current  year. 

have  further  the  pl&aaur«  to  congratulate  the  iihareholderB 

^       '*e  of  the  new  aharea,  botli  here  and  in  India,  which 

1  uu    up    upon  the  terms  sped  tied    in  the   eirciihiT 

'  '  is;    ihtj  ji  '  ^  tapitid, 

^; Oik,  was  ciirable 

i^uurjo  in  :  ^iTiiiincs.'.     J  iii-director» 

rv  ujq>ire<i,  for  ro-eleetion,  od'cr 


ftTin  ul  oti: 


zedbyVjOC 


Digitized  by 


:    \ 


i 


748  Asiatic  Banking  Corporation. 

themselves  accordiBgly ;  and  they  recommend  the 
present  able  professional  auditors,  and  the  election  in 
professional  auditor  for  the  current  year.  The  directo 
the  shareholders  to  authorise  them  to  declare  and  pa 
dividend  half-yearly,  for  the  current  and  future  years, 
desirable^  pending  the  final  adjustment  of  the  accou: 

Oeneral  Balance^   December  31, 1864 

LlJLBILrriES. 

Dr. 

Capital,  25,000  original  shares  at  £20  each       ...        £500, 

Less  calls   in  arrear  4, 

Current  and  fixed  deposits  

Bills  payable  and  other  sums  due  to  the  public 

PROFIT  AN'D   LOSS  ACCOUNT. 

Balance  from  June  80  to  December  31,  1864,  after  dedud 
of  charges  and  making  provision  for  bad  debts 


ASSETS. 

Or. 

Coin  and  bullion     

Cash  with  bankers  and  money  at  call 

Government  securities      

Bills  receivable,  loans,  &c.,  due  to  the  Corporation 
Preliminary  expenses        


Profit  and  loss  account  for  the  half-year  ended  Blst , 
Balance  carried  forward  • 


Net  profit  from  30th  June  to  31st  December,  1864,  subjec 
deduction  for  income  tax       


January  1st,  1865.     By  balance  brought  forward 

The  Chairman,  in  moving  the  adoption  of  the  rep 
report  he  might  fairly  congratulate  them  on  the  po 
Looking  at  the  short  time  of  its  existence  its  succ^ 
There  were  current  and  fixed  deposits,  £3,383,647,  i 
dented.  There  were  bills  payable,  £1,727,329,  whic 
dented  ;  and  the  profits  weie  £70,439,  being  at  the  rai 
annum,  and  he  believed  that  also  Wivs  unprecedented, « 
them  on  this  result  when  there  had  been  a  panic  in  th< 
market,  and  the  condition  of  the  market  required  the  i 
the  whole  he  thought  it  was  a  most  extraordinary  buc( 
ugly  item — the  preliminary  expenses.  They  were  h 
ca^es— they  amounted  to  £7,800,  and  a  considerable  a 
from  retaining  their  officers  before  the  business  comm 
l^nnission  of  the  shareholders,  they  intended  to  write 


Digiti 


ized  by  Google 


7n<Ion  Bank  of  Scotland. 


749 


here  was  some  general  and  natural  uneasiness  felt 
on  of  many  of  the  institutions  connected  with  the 
at,  from  the  31st  December  last,  everything  had 
them.  They  had  gone  very  carefully  into  the 
I,  and  very  closely  scrutinised  their  securities,  and 
:s  that  day  they  should  not  only  be  able  to  pay  a 
,  but  a  larger  one ;  and  making  a  liberal  allowance 
s,  they  did  not  allow  one-third  of  the  profits  for 
was  a  most  satisfactory  result,  and  they  took  some 
it,  but  it  was  not  all  due  to  them.  It  was  to  the 
bay,  to  the  council  there — and  one  excellent  mem- 
sent — ^th.at  they  owed  this  result.  (Hear,  hear.) 
lirown  their  heart  and  soul  into  the  bank,  and 
1  that  their  services  were  of  the  highest  value, 
fieir  deep  gratitude  to  them  for  their  care, 
the  motion,  which  was  instantly  agreed  to. 
oved  the  declaration  of  the  dividend,  at  the  rate 
m,  free  of  income-tax,  with  £5  per  share  bonus, 
ble  on  and  after  the  6th  inst. 
the  motion,  which  was  unanimously  carried, 
ed  that  the  directors  be  empowered  to  pay  such 
d  current  half-year  as  they  may  seem  fit,  pending 
le  accounts. 

e  motion,  which  was  also  agreed  to. 
3,  Messrs.  Scott,  Boykett,  and   Russell,  were  re- 
:^,  MesHrs.  Coleman,  Bird,  and  E.  J.  Milne, 
r.  Parsons,  seconded  by  Mr.  Coles,  thanks  were 
;he  bank  in  India,  to  whose  exertions  the  success 

►ted,  on  the  motion  of  Mr.  Scott,  to  the  home 
rs,  the  agents  and  officers  of  the  bank,  for  their 
year. 


\ 


RN  BANKING  COMPANY,  LIMITED. 

ral  meeting  of  the  shareholders  in  this  company 
ay,  at  the  offices  of  the  company,  60,  Gracechurch 
I,  Esq.,  occupied  the  chair.  The  resolution  passed 
meting  recently  held,  authorising  the  name  of  the 
at  of  "The  English  Joint-Stock  Bank,  Limited," 
ned. 


JANK  OF  SCOTLAND,  LIMITED. 

le  shareholders  of  this  bank  was  held  at  the  London 
for  the  purpose  of  receiving  from  the  liquidators  a 
«  of  the  winding-up  of  the  aflfairs  of  the  company, 
ons  conferring  powers  on  the  liquidators  to  vary 
the  agreement  with  the  Mercantile  and  Exchange 
,  W.  Cargill,  M.P.,  in  the  chair, 
e  liquidators  had  not  intended  to  call  a  meeting  at 
)eing  necessary  that  they  should  call  one  within 
Liquidation  not  having  been  completed.    A  requi? 


Digitized  by  ^OO^IC 


750 


London  Bank  of  Scotland. 


sition  for  a  meeting  having,  however,  been  laid  be{( 

accordance  with  the   articles  of   association,   the  liq 

admitting  the  authority  of  such  a  document  under  t 

which  the  affairs  of  the  bank  were,  were   unwilling 

holders  the  opportunity  of  asking  for  such  explanations ; 

A  circular  had  also  been  received  stating  that  at  a  meetL 

shareholders  a  committee  had  been  appointed  to  inve 

the  bank,  especially  as  regarded  the  condition  of  th€ 

the  Mercantile  and  Exchange  Bank,  but  there  had  be4 

liquidators  since,  and  no  reply  therefore  had  been  ma 

with  which  the  document  was  accompanied,  that  acce 

to  the  books  and  papers.     When  the  meeting  to  cons 

amalgamation  with  the  Mercantile  and  Exchange  Bai 

deal  of  speculation  existed,  and  the  shares  of  both  comp 

high  premium,  and  the  Bank  of  Scotland  was  indui 

amalgamation  on  account  of  the  standing  of  the  otlie] 

fidence  it  enjoyed  in  London  and  Liverpool.     Some  ( 

completing  the  agreement  owing  to  this  company  1 

branches  in  the  north  of  England  which  the  Merca 

Bank   resolved  not  to  accept,  and  subsequently  thei 

occasioned  in  consequence  of  the  Bank  of  Scotland  n< 

to  bring  the  accounts  of  the  various  branches  in  a  st 

by  accounts  as  mutually  agreed.     At  length  the  Merc 

Bank  made  a  very  fair  proposal  to  them  with  respe 

of  the  net  profits  as  the  basis  of  the  agreement ;  the  p: 

and  this  company  carried  out  the  first  part  of  the  ar] 

over  to  the  other  company  the  first  contrilmtion  specit 

the  crisis  which  came  upon  them  last  autumn  prevent 

their  accounts  and  paying  over  the  rest  of  the  money, 

and  Exchange  Bank  having  at  the  time  fallen  into  < 

gamation  was  not  pressed  forward,  because  if  that  ba 

ment  this  company  would  have  been  absolved  from  t 

elude  the  arrangement,  and  would  have  been  entith 

sums  they  had  already  paid.     The  Mercantile  and  E 

ever,  weathered  the  storm,  and  a  thorough  investigatio 

since  been  made  in  the  interest  of  the  shareholders  of 

peared  that  it  was  a  solvent  concern  with  a  good  busi] 

did  not  exceed  £98,000  in  the  aggregate,  instead 

been  stated.     Exception  had  been  taken  to  the  paym( 

of  any  money  to  that  company  before  a  thorough 

affairs  had  been  made  by  accountants,  but  as  the  d< 

the  arrangement  was  the  fault  of  the  Bank  of  Scotl 

liquidators  had  acted  in  a  proper  way,  and  exercised 

the  matter.     The  liquidators  took  that  opportunity 

cur  re  nee  in  two  resolutions,  the  object  of  which  was 

pjmy  from  an  obligation  to  take  any  further  shares  in 

Exchange  Bank  beyond  the  original  10,000  shares  cre< 

had  already  been  taken  and  paid  for.     The  agreen 

second  10,000  shares,  credited  with  £5,  should  be  all< 

but  from  this  obligation  the  directors  of  the  MercantiL 

would,  if  they  obtained  the  concurrence  of  their  share 

ready  to  release  them.  (Hear.)     Beyond  this  there  we 

this  company  was  to  have  at  par,  in  order  that  the  p 

the  arrangement  was  made,  would  have  amounted  to  a 


Digiti 


ized  by  Google 


Provincial  Bank  of  England, 


751 


on  of  the  amount  they  were  paying  for  the  pur- 
the  MercaDtile  and  Exchange  Bank ;  but  those 
at  £10  premium,  were  now  at  £3  discount,  and 
)wer  to  caucel,^\itli  the  consent  of  the  other  bauk, 
ut  also.  He  concluded  by  moving  resolutions  for 
lained- 

ey  could  not  consent  to  any  arrangement  of  the 
solutions  until  they  were  better  acquainted  with 

t,  as  the  object  was  merely  to  release  them  from  a 
I  little  objection  to  it ;  but  it  was  for  the  share- 

I  as  an  amendment  a  direction  to  the  liquidators 

creditor  account  of  the  aflairs  in  their  hands. 

manager,  read  a  statement  of  the  assets  and  lia- 

>n  the  3rd  of  May,  and  estimated  the  probable  loss 

54,  which  upon  20,000  shares  would  amount  to 

,re. 

d  that  the  accounts  were  more  satLsfactory  than  he 

ressed   an   opinion  that  the    shareholders   would 

erests  in  the  hands  of  the  present  liquidators. 

d  that  the  meeting  should  stand  adjourned  till  a 

rs  had  been  apxx)inted  to  investigate  and  report 

npany's  affairs. 

I  that  if  tliey  rejected  the  proix)sal  of  the  liquida- 

pay  £10  for  what  they  could  now  go  into  the  mar- 

sed  himself  perfectly  satisfied  to  have  got  a  £10 
and  Exchange  Bank  for  a  £13  share  in  th(5  Bank 
adeed  all  that  they  were  x>romi8ed. 
seconded  by  Mr.  Marshall,  one  of  the  original 
i>cotland,  but  after  a  brief  discussion  was  negatived 
eing  raised  in  its  favour.  The  resolutions  were 
inimously,  and  a  vote  of  confidence  in  the  liquida- 
d  and  carried  the  meeting  separated. 


PROVINCIAL  BANK  OF  ENGLAND. 

lal  general  meeting  of  proprietors  was  held  on 
w  bank  premises  in  Bishopsgate  Street ;  Mr.  J.  M. 

not  but  think  that  the  circumstances  under  which 
the  first  time  in  that  building,  destined,  he  trusted, 
success  of  the  bank,  were  singularly  propitious. 
>en  inaugurated  under  more  favourable  auspices, 
f  a  year  of  unprecedented  prosperity,  they  were, 
!ve  of  seeing  struck  off  the  last  fetters  with  which 
id  shackled  their  freedom  of  action,  and  that  they 
m  unimpeded  course  of  progress  and  development. 

course  aware  of  the  disabilities  under  which  the 
;.  Not  only  had  tliey  been  prevented  from  issuing 
within  a  distance  of  sixty-five  miles  from  London, 

forbidden  to  enter  upon  the  ordinary  business  of 


1 

Digiti 


ized  by  Google 


752 


National  Provincial  Bank  of  En 


banking  in  the  metropolis,  had  been  actually  proh 
town  agents  for  their  own  branches,  and  had  been 
other  establishments  to  execute  duties  which  their 
much  better  qualified  to  perform.  There  was,  whei 
under  a  grievance  imposed  upon  them  by  legal  enact 
of  compensation  if  the  law  of  which  they  oomplaine 
and  that  the  rule,  however  obnoxious,  extended 
That  consolation,  such  as  it  was,  had  been  denied 
legislative  oversiglit  Scotch  and  Irish  banks,  consti 
were  issuing  their  own  notes,  were  not  hampered  by 
ets  they  were  thus,  in  addition  to  a  sense  of  greai 
galled  by  a  feeling  of  injustice.  Their  only  rem( 
things  was  the  sacrifice  of  their  circulation — a  sacri 
moat  reluctant  to  recommend,  but  to  which  hi 
in  the  end  have  submitted,  so  great  had  they  fe' 
of  being  excluded  from  their  proper  position 
That  was  no  place  for  political  discussion,  and  i 
him  to  express  either  party  censure  or  party 
was  sure  he  should  not  be  giving  utterance  to  the  s 
leagues  or  to  his  own  if  he  did  not  record  their  cordi 
to  Mr.  Gladstone  for  the  very  liberal  spirit  in  whic 
their  grievances,  for  the  kind  and  courteous  m^ini 
always  received  their  representations,  and  for  theoourf 
exposed  himself  to  troublesome  opposition  in  dealing 
Doubtless,  the  Chancellor  of  the  Exchequer,  acting 
sought  what  he  considered  to  be  the  public  interest, 
make  some  sacrifices,  but  a  vested  interest  of  fifteen 
lation,  the  right  to  incorporate  other  branches  of  i 
their  circulation  by  the  amoimt  of  their  ascertained  i 
all  their  disabilities,  and  giving  them  fresh  privile 
which  they  might  well  rejoice,  and  for  whicl 
be  grateful.  It  was  only  due  to  one  of  their  ( 
the  member  for  St.  Ives,  that  he  (the  chairman) 
testimony  to  the  ability  and  industry  with  w] 
had  advocated  their  cause.  Amidst  all  their  pr< 
deplore  that  Daniel  Robertson,  late  general  ma 
director  to  whom  the  bank  owed  so  much — was  not  a 
the  triumph ;  and  they  had  also  to  regret  the  loss  ( 
one  of  the  largest  shareholders  in  the  concern  and 
years'  standing.  He  then  proceeiled  to  read  the  repc 
the  result  of  tlie  year's  transactions  were  as  follows 
Rest  or  undivided  profits  at  31st  December,  1863,  as  ei 
meeting  in  May,  1864,  including  premium  on  shai 
Less — Btmus  declared  and  paid  in  cash  in  1864  out  c 
£63,000 ;  reserve  fund  set  apart  on  government  securit 
net  pmfits  of  1864,  after  making  allowance  for  bad 
&c.,  £303,800.  Is.;  together,  £513,252.  6«.  2d.\  a 
carried  forward  for  1863,  £10,000;  total,  £523,2i 
dividend  on  company's  stock,  paid  July,  1864,  £138,4 
1864,  paid  January,  1865,  £40,800;  bonus  of 
£86,400 ;  undivided  profits  carried  to  the  next 
together  £186,600;  leaving  £337,562.  65.  2d.  Ou 
directors  propose  to  declare,  in  addition  to  the  fore 
bonus  paid  to  proprietors  above  stated,  a  further  b 


Digiti 


ized  by  Google 


Bank  of  Hindustan,  Chinay  and  Japan. 


753 


a  diTision  of  profits  in  1864  in  all  28  per  cent,  npon  the  paid-up 
kt  31st  December,  1864,  free  of  income-tax,  amounting  to  £112,200, 
*eserye,  £225,452.  65.  U.  The  directors,  with  a  view  to  mark  their 
tion  of  the  zeal  and  efficiency  of  the  staff,  and  to  characterise  the 
roeperons  and  exceptional  nature  of  the  year's  ox>erationB,  voted  a 
of  five  per  cent,  to  their  officers,  in  addition  to  the  usual  bonus  of 
snt.  of  recent  years,  which  was  paid  at  Christmas  last. 
3  motion  of  the  Chairman,  seconded  by  Mr.  J.  O.  Hanson,  the  report 
nimously  adopted. 

9tiring  directors,  Mr.  W.  J.  Maxwell,  Mr.  H.  McChlery,  and  Mr.  J. 
on  were  re-elected,  and  the  two  vacancies  at  the  board  were  sup- 
the  election  of  Mr.  Duncan  Macdonald  and  Mr.  Greorge  Hanbiury 

reholder,  while  expressing  extreme  gratification  with  the  results  of 
;'&  operations,  suggested  that  it  might  be  well  in  future  to  present 
detailed  balance-sheet,  showing  in  what  the  securities  consisted, 
"ding  the  means  of  estimating  the  value  of  their  business  in  dif- 
istricts  of  the  country. 

hairman  observed  that  suggestion  involved  an  entire  change  of  the 
don  of  the  bank,  and  though  of  course  the  directors  would  act  upon 
of  the  shareholders  in  the  matter,  he  thouf;(ht  it  would  be  well  to 
fore  agreeing  to  alter  a  system  which  had  hitherto  worked  so  well. 
Iders  could  get  any  information  they  might  desire  by  applying  at 
».  The  provision  for  bad  debts,  low  as  it  was,  was  rather  over  than 
^ted,  it  being  the  invariable  practice  to  calculate  all  possible  losses 
actually  made. 

!  of  thanks  was  passed  to  the  chairman,  and  a  similar  compliment 
»een  passed  to  Mr.  A.  Bobertson  and  Mr.  E.  Atkinson,  the  joint 
nanagers,  was  acknowledged  by  Mr.  Robertson,  who,  in  the  course 
narks  said  that  in  the  administration  of  the  affairs  of  the  bank  it  had 
endeavour  of  the  directors  to  combine  progress  with  security,  and 
evidence  of  their  success  was  to  be  found  in  the  amount  of  the 
id  the  position  of  the  company's  stock  in  the  market, 
roeeedings  then  terminated. 


i 


ire:  OF  HINDUSTAN,  CHINA,  AND  JAPAN,  LIMITED, 
-d  ordinary  meeting  of  this  corporation  was  held  on  the  15th  May  9 
>ndon  Tavern,  Mr.  James  Nugent  Dauiell  in  the  chair, 
allowing  report  was  taken  as  read : 

net  profits  of  the  year,  after  defraying  all  expenses  and  providing 
S  amount  to  £15,893. 12«.  lid.,  including  a  balance  of  £827.  lis.  Id, 
forward  from  the  accounts  of  the  previous  year,  out  of  which 

of  £14,746.  bs.  has  already  been  paid  as  an  interim  dividend  on 

of  August  last,  leaving  a  balance  of  £1,147.  7^.  llt^.,  which  it 
led  to  carry  forward.    The  directors  have  to  express  their  regret 

operations  of  this  company  during  the  past  year  have  not  ex- 
k  more  profitable  result ;  but  taking  into  consideration  the  com- 

recent  formation  of  the  bank,  and  the  gradual  extension  of  the 
(  abroad,  the  peculiarly  disorganised  condition  of  commercial 
1  the  latter  part  of  the  year  1864,  and  the  existance  of  a  state  of 


Digitized  by 


Go( 


'54 


Baiih  of  nimhistan,   China j  and 


things  specially  calculated  to  embarrass  the  succe 
branches,  it  must  be  a  source  of  satisfaction  that  tli 
year  have  resulted  in  a  proht,  tliat  a  solid  footiu 
by  the  bank,  and  its  business  and  connections  fu 
causes  which  acted  prejudicially  to  the  welfare 
a  peculiar  and  exceptional  character.  They  have 
The  operations  of  the  present  year  have  shown 
satisfactory  results,  and  it  is  therefore  evident 
interruption  to  the  successful  operations  of  the  1 
circumstances  which  were  beyond  the  control  of 
meeting  which  confirmed  the  amalgamation  witl 
of  China,  India,  and  Japan,  Limiteii,  took  pi 
September  last,  and  on  or  after  the  12th  Octobt 
shareholders  in  that  institution  (with  the  excepti< 
pressed  their  dissent  within  the  specified  time)  we: 
register  of  shareholders  of  this  bank.  The  nimibei 
in  the  Imperial  Bank  of  Ciiina,  India,  and  Japan, 
and  the  number  of  shares  refused  by  shareholders  in 
dissent  was  fifty-eight.  Tlnis,  of  the  20,000  shares 
issued  by  this  bank  1,368  may  be  considered  as  u 
amount  of  capital  in  this  bank  on  the  31st  Decembei 
and  on  the  29th  ult.  it  araoimted  to  £720,444.  Tl 
pleasure  to  report  that,  notwithstiinding  a  variety  of  s 
the  calls  have,  on  the  whole,  been  remai'kably  well  m< 
of  the  bank  amounts  at  present  to  £92,900.  In  J 
branch,  with  its  sub-branches  at  Kandy  and  Point  d 
Tlie  progress  of  these  establishments,  although  extei 
scarcely  six  months,  is  satisfactory.  The  directors  Y 
that  in  February  last  a  branch  was  opened  at  Yoko 
have  with  regret  to  reix>rt  that  a  vacancy  occurred 
the  past  year,  by  the  death  of  Mr.  J.  H.  R.  De  C 
accordance  with  the  powers  conferred  u}X)n  them  bj 
ciation,  they  have  elected  Mr.  Sassoon  David  Sasso 
seat,  which  election,  they  have  no  doubt,  will  meet 
the  shareholders.  The  directors  who  retire  by 
Nugent  Daniell,  Esq.,  Deane  J.  Hoare,  Esq.,  and  He: 
being  eligible,  ofTer  themselves  for  re-election ;  anc 
Goodson,  Esq.,  and  Frederick  Wm.  Spooner,  Esq.,  8 
likewise  eligible,  they  offer  themselves  for  re-electioi 

Balance- Sheets  December  3Uf,  186 
Br, 

Capital  paid  up     ...     

Amount  due  to  the  public  on  current  and  deposit  accou 
bills  payable,  endorsements,  circuhir  notes,  letters 
credit,  &c 

Renerve  fund,  £1,000;  premium  on  second  issue  of  10 
shares  at  £2  per  share,  £20,000;  less  215  shares  unallot 
£430,  £19,570  ;  premium  on  account  of  third  issue  of  20, 
shares,  £iy,412 

Bahmce  as  per  profit  and  loss  account       


Digiti 


ized  by  Google 


Bank  of  Hindustan^  China ^  and  Japan. 


land  and  vith  bankers         •    £fi06,603    9  5 

a  hand  and  in  transitu        ...  60,999    2  9 

ent  securities         378,116    7  9 

iyable,  loans,  bills  discounted,  &c 5,989,495  16  2 

niises  in  London    « 29,337  14  5 

ecus,  including  furniture  at  head  office  and  branches, 

,  insurance,  &c 13,070  12  5 

try  expenses,  £7,458.  18«. ;  less  amount  written  off, 

i8* 7,000    0  0 

£6,984,628    2  11 


Profit  and  Loss. 

ftt  bead  office  and  branebes  for  salaries,  direction, 
lug  expenses,  stamps,  rent,  taxes,  income-tax,  ad- 

ments,  &c ••      ••• 

lividend  paid  80th  August,  1864,  at  the  rate  of  10 

it.  per  annum    ...      m«      

Murried  to  profit  and  loss  new  account 


£43,185  5     5 

14,746  5     0 

1,147  7  11 

£59,078  18     1 


3  profit  on  Sist  December,  1863 

It  credit  of  profit  and  loss  for  the  year  ending  31st 
ber,  1864,  after  allowing  for  rebate  on  bills  outstand- 
id  providing  for  losses,  £78,170.  14«.  8d. ;  less  in- 
>aid  on  current  and  deposit  accounts  £19,919*  7f.  5d. 


£827  11     1 


68,251     7     3 
£59,078  18     4 


RxsxRTs  Fuhd. 


£89,982     0    0 


m  December  31,  1863   ... 
lince  transferred 


£1,000    0    0 
38,982     0    0 

£39,982     0    0 


hairman  said  it  waa  with  no  ordinary  degree  of  anxiety  that  the 
t  had  looked  forward  to  this  meeting  of  the  shareholders,  that 
arising  from  two  causes.  In  the  first  instance,  they,  as  oommer- 
,  were  well  aware  what  had  been  going  on  here  and  in  India  for 
nonths,  especially  in  the  latter  pe^  of  last  year,  and  they  were 
lat  very  serious  rumours  had  been  set  afloat,  which  he  hoped  to 
jm  were  utterly  incorrect  as  to  the  loss  of  the  capital  of  the  bank. 
.r  they  were  conducting  a  steady  but  lucrative  business,  and  they 
e  to  pay  a  dividend  at  the  rate  of  10  per  cent,  per  annum  for  the 
r.  Not  only  were  they  justified  in  paying  that  dividend — the 
( justified  it — ^but  they  felt  that  the  shareholders  ought  to  receive 
•im  dividend,  which  became  now  5  per  cent,  for  the  year.  Well, 
B  that  took  place  in  tlus  coxmtry  reacted  on  India,  but  the  bank 


Digitized  by 


Goo 


I 


756 


Sank  of  Hindmtan,  China,  and 


laboured  under  special  disadvantages,  as  they  must  1 
aware  that  at  the  latter  end  of  last  year  the  London 
came,  to  a  certain  degree,  in  disrepute,  and  no  great 
was  felt  than  in  the  bank  which  was  their  corre 
manager  had  to  look  to  safety  rather  than  profit, 
disadvantage  it  was  impossible  for  them  to  guard 
they  found  what  the  position  was  they  got  another 
the  National  Bank,  and  from  tliat  time  to  the  presen 
on  as  satisfactorily  as  the  circumstances  of  India  wo 
present  year  everything  had  gone  on  very  satisfactc 
ihey  had  had  many  difficulties  to  encounter  ;  in  the 
managers  they  hjid  endeavoured  to  select  the  best  m< 
so  successful  in  this  that  in  two  instances  their  mi 
other  business  at  increased  salaries,  and  this  was  a  te 
to  the  bank.  In  all  cases  of  this  kind  there  were 
considered,  but  above  all  they  must  consider  the  saf< 
must  maintain  its  integrity  and  its  character,  and  he 
ever  transpired  at  that  meeting  they  would  all  reme 
not  do  anything  to  destroy  the  confidence  that  exist* 
bank.  They  had  made  but  very  little  profit  in  the 
they  stood  with  an  amount  of  capital  of  £720,444, 
£92,000,  and  when  the  shares  were  all  paid  up  that  ^ 
£1,000,000,  so  that  their  position  was  not  an  unfavou; 
be  happy  to  answer  any  questions,  and  would  con( 
adoption  of  the  report. 

In  reply  to  the  shareholders,  the  Chairman  said 
miums  had  not  been  paid,  and  that  was  why  the 
amount  to  more  than  £92,000. 

Captain  Beville  asked  how  it  was  that  1,310  shares 
of  China,  India,  and  Japan,  remained  uuallotbed. 

Mr.  James  Levick  said  they  were  returned  with  s 
into  the  bank  some  gentleman  of  great  intluence  and 
opportunity  oflered. 

Mr.  Stuart  suggested  tliat  the  miscellaneous  expen 
high. 

The  Chairman  pointed  out  that  the  expenses  of  ca 
India  were  necessarily  high. 

In  reply  to  Mr.  A*  Kintrea,  the  Chairman  said 
ct'iveil  hy  IIk'  <lirt'ctnr.H  f«>r  iLiiiuiieratidii  was  £3,500 
referi^ucc  iu  the  rmiimired  Lksses,  8inct^  December  la 
to  one  account  in  respect  of  which  tkcrf  seemed  a  ] 
Ihs.  in  the  inmud,  ami  umicr  very  uiilaTourable  ci 
would  not  exceed  ,£ll»,ooO. 

Mr.  KiiitreM  ur^ed  the  directors  that  in  the  pre 
wan  uiide.sir;iine  that  tlie  retiring  directors  should  1 
election. 

The  Chairman  thought  the  proper  course  would  I 
forward  in  tho  onUiutry  maimer. 

51  r.  J.  C  BoHun  deprec^ited  the  course  suggested 
thought  nothing  was  bo  uiiwiae  as  to  remove  din 
aiTairs  f>f  the  bank,  simply  bccauKi?  thu  titiareholders 
one  half  year's  report.  He  thought  one  cause  of  c< 
meeting  was  so  late. 

Tlie  Ch&irman  Aaid  the  lateness  of  the  period  of  tl 


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of  Hindusianj  Chinaj  and  Japan.  757 

being  possible  to  get  the  accounts  from  China  at  an 

plained  that  several  of  the  directors  of  the  company 
30  many  other  companies  as  directors  that  they  could 
tention  to  the  affairs  of  the  bank  that  they  required, 
ate  of  things  injured  the  tone  of  the  bank. 
)lained  that  in  the  "  Joint-stock  Directory "  names 
rectors  of  companies  of  gentlemen  who  had  nothing 
:ement  of  the  affairs  of  those  concerns.     It  arose  from 
X)m  panics  of  five  or  six  persons,  all  of  whom  were 
,  and  hence  it  was  his  name  api>eared  to  eight  oom- 
ivate  business  of  his  own,  and  certainly  had  not  more 
I  he  was  able,  or  he  would  resign, 
tiareholders,  the  Chairman  explained  that  the  losses 
are  secured  by  produce,  and  the  outside  of  the  loss  on 
Lot,  he  believed,  be  £15,000. 
conversation  the  report  was  adopted. 
)po6ed  that  Mr.  James  Nugent  Daniel  be  re-elected 
c. 

seconded  the  motion. 

the  election  of  Mr.  Daniel,  on  the  ground  that  he 
lan  was  a  director  in  fifteen  or  sixteen  companies, 
heir  biLsiness  had  been  taken  from  Messrs.  Robarts, 
aken  to  the  Alliance  Bank,  the  connection  with  which 
ry  to  the  concern.  He  objected  also  to  the  other  two 
Mr.  Hoare,  because  he  was  a  director  in  many  com- 
ed,  had  been  a  director  of  a  bank  and  withdrew  from 
«equently  stopped.  Mr.  Young  might  have  been  a 
y ;  he  was  not  a  man  wlio  would  bring  any  connection 

tively  denied  that  he  belonged  to  as  many  companies 
•  had  referred  to,  and  further,  he  stated  that  he  was 
irector  of  the  bank  because  he  was  a  director  of  the 

on  re-elected. 

n  moved  the  re-election  of  Mr.  Deane  J.  Hoare. 

»nded. 

3<1  the  re-election  of  Mr.  Hoare  on  the  ground  that 

0  introduce  influential  men  to  the  board,  and  moved 
lot  filled  up  at  present. 

led  the  amendment  on  the  groimd  that  they  should 

1  on  the  boarcL 

►posed  the  amendment,  contending  that  commercial 
ely  to  join  the  board  from  which  two  gentlemen  had 
iprice. 

vf\&  true  he  was  a  director  of  a  bank  at  one  time.  He 
hilst  he  maintained  that  position  the  bank  went  on 
e  could  not  prevent  a  class  of  business  being  done 
tie  advantage  of  the  bank.  He  therefore  resigned 
ad  in  twelve  months  the  bank  came  to  grief.  Ho 
lis  bank,  and  had  from  its  commencement  attended 
and  was  only  connected  with  three  companies.  If  it 
harehoUlers  that  he  should  resign,  and  that  wish  was 

60 


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i 


758  Union  Bank  of  Scotland. 

indicated  by  the  meeting,  his    resignation  was    ii 
chairman. 

The  meeting  having  indicated  a  wish  that  Mr.  Hoi 
adopted  that  course. 

The  Chairman  then  proposed  the  re-election  of  M] 
lie  said  it  was  impossible  to  have  a  better  or  a  more 
direction. 

Mr.  Dent  seconded  the  motion,  pointing  ont  that 
collector  of  customs  at  Bombay,  was  an  original  dh 
Bank,  and  was  an  ex-ofiicio  director  of  the  Govemm 

The  motion  was  unanimously  agreed  to. 

Mr.  Maynard  was  elected  shareholders'  auditor, 
James  Goodson,  and  Mr.  Richard  Spooner  as  professi 

A  vote  of  thanks  to  the  ohairman  closed  the  procec 


UNION  BANK  OF  SCOTLAN: 

The  following  is  the  thirty-fifth  annual  report  of  th 
the  shareholders  at  Glasgow,  on  the  10th  May  : — ^  T 
the  pleasure  to  exhibit  to  the  proprietors  an  abstract 
as  at  Ist  April  last,  and  to  report  the  results  of  anot 
The  balance  of  profit  and  loss  accoimt  at  1st  Ap 
Tiding  for  all  bad  and  doubtful  debts,  is  £148,028.  2a 
the  directors  have  written  oft'  £6,000  in  reductioi 
offices,  leaving  a  clear  available  balance  of  £14ti 
to  this  the  balance  of  '  rest '  from  last  year,  af 
dividend  then  declared,  £109,368.  6s.  Id.  The  i 
profits  at  Ist  April,  1865,  is  £262,396.  8«.  lOrf. 
is  proposed  to  set  apart  £80,000  for  payipent,  < 
December  next,  of  a  dividend  to  the  proprietors 
cent,  per  annum,  less  income-tax.  Notwithstanding 
results  of  the  year's  business,  the  directors  trust 
concur  with  them  in  the  propriety  of  retaining  the  di" 
year  at  tlie  rate  of  8  per  cent,  per  annum.  During  t 
have  elected  Mr.  John  Buchanan,  Cawder  House,  to 
in  room  of  Mr.  Stirling,  resigned — an  appointment  ^ 
now  requested  to  confirm.  The  directors  who  retire  by 
are  Mr.  Archibald  Galbraith  and  Mr.  John  Beatson 
having  joined  the  board  within  two  years,  is  eligibl 
the  chrectors  recommend  thafc  he  be  re-elected ;  in 
directors  recommend  the  election  of  Mr.  Donald 
Galbraith  is  be  associated  with  the  Glasgow,  and 
Edinburgh  committee.  In  the  month  of  January,  Mi 
-of  whose  health  rendered  necessary  three  years  ago  c 
officials  of  the  bank,  tendered  his  resignation  of  the  c 
now  notifying  their  acceptajice  thereof,  the  director 
record  the  sense  they  entertain  of  the  zeal  and  ai 
interest  he  has  invariably  manifested.  On  Mr.  R^ 
Mr.  Gairdner  was  re-apiwinted  manager,  and  Mr.  1 
assistant-manager  of  the  bank." 


ili 


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Ionian  Bank. 
ni€  of  affairs  of  the  Bank,  Ut  April,  1865 

UABILITIEB. 

sits,  receipts,  balances  due  to  banking 
•         •••  •••  •••  ••• 

1  agents  and  marginal  credits 


759 


£7,771,886  15  11 
231,022  15     S 


I  liabilitieg  to  the  public    ...  .•.£8,582,208  11     4 

1,000 ;  rest,  or  surplus  profit,  from  last 
7d, ;  profit  and  loss  account,  Ist  April, 
id.    dd.;    total   accumulated  -proJ&te, 
total  liabilities  to  the  partners         ...  £1,252,39G    8  10 

£9,834,605     0    2 


ASSETS. 

I  and  oonntiy  bills,  cash  accounts,  and 

security  ^.  ...  .,.£7,507,748     7    6 

^,  Edinbnrgli,  and  branches  ...      £172,482     4  10 

mraent  aecurities,£  1,041, 023.  13j.  9i. ; 

ad  investments,  £270,624.  lOs,  5d. — 

;  gold  and  silver  coin,  notes  of  other 

lances  in  hands  of  London  and  country 

3«.  Sd.  ...  ...  ...    2,154,374    7  10 


£9,834,605     0     2 


IONIAN  BANK. 


eeting  of  proprietors  was  held  on  tlio  26tli  May,  at  the 
in  Great  Winchester  Street ;  Mr.  Lloyd  in  the  chair. 
.  by  Mr.  Kettlewell,  the  secretary,  as  follows  : — 
last  year's  operations  will  sufficiently  appear  from 
ad.  The  directors  think  it  a  fair  subject  of  cou- 
r  were  able,  after  a  carehil  investigation  of  -the 
the  bank,  to  declare  on  the  last  occasion  a  dividend 
he  rate  of  10  per  cent,  jter  annum  on  both  the  old 
having  regard  to  the  fa<'t  that  after  payment  of  the 
nd  they  had  in  hand  at  the  beginning  of  the  present 
vith  the  addition  of  the  £6,000  derived  from  premiums 
w  shares,  amoTints  to  over  £48,000,  they  entertain 
oe  that  results  equally  satisfactory  may  be  looked 
?fit  and  loss  account  for  the  year  1804  is  a«  follows  : — 
edit  of  profit  and  loss  on  the  Ist  January,  180  J,  was 
;  profit  for  the  year,  after  deduction  of  chargas  and 
r  bad  and  doubtful  debts,  is  £10,764.  11*.  5(i.— 
163.  2s.  6<i.  less  two  dividends  of  £6,000  each,  paid 
12,000— leaving  to  the  credit  of  profit  and  loss 
rhich  add  premiums  on  new  shares  £6,000.  Total, 
tho  1st  Januarj',  1865,  £48,163.  2^.  6dr 
he  board  had  naturally  felt  some  anxiety  as  to  what 
I  the  change  in  the  position  of  the  bank  relatively 
ent,  the  National  Bank  of  Greece  becoming  entitled, 
I  of  the  Ionian  Islands,  to  establish  its  own  branches 


Digitized  by  LjOOQIC 


760  Ionian   Bank. 

in  those  Islands,  while  no  reciprocal  advantage  was 
company.  In  this  state  of  things,  and  there  being  other 
might  have  interf ereil  injuriously  with  their  prospects  ; 
to  Athens,  taking  Corfu  in  his  way,  and  in  conjunct] 
there,  took  the  necessary  measures  for  the  protectioi 
^  the  bank.     They  wore  met  with  great  courtesy  and  ^ 

National  Bank,  the  commissioDcr,  and  by  all  the  oJ 
suit  was,  that  whereas  there  had  been  some  idea  of  a 
lationship  between  the  two  companies,  yet,  seeing  th 
principles  of  the  constitution  of  this  bank  diflered  n: 
of  the  National  Bank,  it  was  thought  better  that  they 
upon  a  mutual  understanding  that  there  should  be  no 
no  lowering  of  the  rate  of  interest  without  the  concu 
in  fact,  that  there  should  be  harmonious  action  betw< 
been  done,  and  assurances  of  good  will  had  been 
;  National  Bank  in  the  presence  of  the  minister.    As  tc 

,  afloat  which  they  had  had  to  meet,  the  sting  had  be< 

directors  now  had  no  dread  of  competition  from  any 

both  at  Corfu  and  Athens  such  a  general  impression  < 

stability  of  this  bank,  and  such  a  great  readiness  to  j 

in  preference  to  coin,  that  there  appeared  to  be  no  do 

the   good  ix)sition  they  had.      If   rival  concerns   w< 

company  would  still  get  the  best  business,  and  the  < 

be  content  with  their  leavings.     The  next  question  t 

,  aider  was,  whether  they  should  extend  their  operatic 

more  active  commerce  of    the    Levant,  but  it  had 

,  more    prudent    course   not    to    embark    in    more  i 

wliich,   though    they  might    be    productive   of    pre 

attended   with    increased    risk.      (Hear,   hear.)      T 

Loughnan,    who    retired    on    account   of    ill   healtl 

'  pension,  and  it  was  also  proposed  to  give  him  a  seat 

'  place  would  be  supplied  by  Mr.  Merlin,  the  compan 

;      '.  who  had  been  resident  there  for  a  long  time,  who  was 

was  on  the  most  friendly  relations  with  the  government 
understood  the  principles  and  practice  of  exchange  bu 
of  capital  which  had  been  called  up  had  been  empk 
legitimate  banking  business.  The  directors  did  not  j 
ther  call  would  be  required  at  present,  but  if  the  exp 
ness,  or  the  prospect  of  profitable employmentof  capital 
a  demand  would  probably  be  made  to  the  extent  of  \ 
were  two  things  wanting  for  the  development  of  the 
good  government  and  the  re-establishment  of  her  cre< 
Europe.  No  people  were  more  amenable  to  law  and 
wanted  a  firm  but  gentle  hand  holding  the  reins  to 
talent  and  industry  to  the  promotion  of  their  prospe 
heard  from  a  Greek  a  dieam  of  repudiation,  and  iJ 
herself  in  the  position  she  ought  to  occupy  in  the 
there  were  many  things  in  which  the  bank  could  be  a 
the  Greek  government.  He  concluded  by  moving 
>^  '^  report. 

,  A  Shareholder — ^You  do  not  intend  at  any  time  t 

I  half  of  the  new  shares. 

•;  The  Chairman — That  must  of  course  depend  upon  ( 

I  I         '  do  not  foresee  any  likelihood. 

Digitized  by  VjOOQIC 


London  and  Brazilian  Banl\ 


761 


IB  adopted^  anil  the  retiring  direciorft,  Mr.  Alox.  Pftndia 
id  Mr,  H.  R.  Farrer,  hi^ving  been  re-elected,  the  usual 
I  paid  to  the  chairinnn    and  directors,  and  the  meeting 


DON  AKD  BRAZILIAN  BANK,  LIMITED, 

y  gcueral  meeting  of  the  sliareholdors  was  heklauthe  lltli 
idon  Tavern,  for  the  purpose: — 1.  Of  receiving  and  con- 
b  from  the  directors.  2*  Of  taking  into  consideration  the 
^ment  which  hns  been  entered  into  by  the  directorn  with 
ie  of  Messrs.  Mand  and  Co.,  and,  if  the  namo  be  appro ve^l, 
resolution  or  resolutions  as  to  t!ie  meeting  ahall  seem  fit, 
empowering  the  direcUtra  to  take  auch  steps  and  do  all 
J  be  necessary  or  proper  to  give  ciTc^t  to  the  proposed 
Tangemeni.  3.  To  decide  on  the  proposal  niatle  by  tho 
reasing  the  capital  of  t!ie  oomimiiy  by  the  creation  of  22,000 
le  nominal  amount  of  i£20  each.  Mr.  J.  W.  Cater  presided* 
report  was  taken  a«  road  :— 

3  have  summoned  thii«  meeting  of  the  shareholderB  in  order 

to  them  the  details  *jf  tbo  provisional  arrangement  which 

ified  by  circular  of  the  17th  April)  the  board  have  made 

and  and  Company,  and  also  to  advise  with  the  proprietors 

in  which  the  auiditjonal  capital  w^hich  will  be  required 

of  giving  effect  to  that  arriuigement,  ahoald  be    raised* 

ve  for  some  time  past  had  under  their  consideration  the 

<?nding  the  bnainess  of  the  bank  to  the  River  Plate,  and 

'     conclusion  that  such  extension  was  not  only  desirable 

to  field  for  banking,  but  imperatively  called  for  in 

11  '  ;icct  to  the  operations  of  the  estahliahments  in  Bnusil, 

ik  steps  to  open  a  communication  with  the  government 

of  SantafiS  with  a  view  to  obtaining  a  ciin cession  for  the 

f  branchei  at  Ronario  and  at  the  city  of  Santafd,    Pending 

^  '  *he  government  of  Santaft^,  your   directors   received 

srs.  Maui  and  Co.  who  (as  the  shareholders  are  no 

,     -  jf  many  yean  been  carrying  on  a  very  important  and 

*a  in  the  River  Plate,  wore  about  to  convert  their  private 

a  joint^astock  company,  and  suggestions  were  made  for  an 

f  the  interests  of  the  two  imdertakings,  by  which  this 

ire  to  itaelf  the  advantage  of  an  existing  position  and   or- 

?  now  district  to  which  they  proposed  to  extend  the  Com- 

Tnnr  directors  unanimously  adopted  the  suggestion  which 

in  doing  so  they  were  soouring  an  arrangement 

iders,  and  likely  to  work  satifsactorily,  inasmuch 

lautually  advantagecms  to  both  of  the  contracting 

ug  are  briefly  the  details  of  the  agreement  which  the 

I  dly  entered  into  with  Messrs.  Maud  and  Co. ;  and 

the  meeting  : — 

e  armdgamation  shall  take  effect  as  from  Ist  January^ 

bo  amalgamation  shaU  be  effecte<l  by  means  of  the  in- 
new  jouit-fttock  bank  under  the  Hnuted  liability  law  of 
>  name  of  the  *  London,  BrajGiliaD*  Mauii,  iind  River  Plato 


Digitized  t 


762 


London  ami  Brazilian  Ban 


Bank,'  and  "vrith  a  nominal  capital  of  £5,000,000  ate; 
of  £20  each,  £7.  IOjj.*  of  whidi  aliall  be  paid  up. 

«  3rd.  That  150,000  shares  with  £7. 10a.  per  shan 
to  Messrs.  Maud  and  Company,  and  the  remaining  '. 
and  Brazilian  Bank  for  distribution  amongst  the; 
issue  to  the  public,  as  the  bank  shall  determine. 

"  4th.  That  the  shares  shall  be  issued  to  the  partit 
tliereto,  in  exchange  for  cash  or  approved  seciiritie? 
that  not  less  than  one-half  of  the  shares,  to  wluch  t] 
tively  entitled,  shall  be  taken  up  on  the  Ist  Januan^ 
remainder  of  tlie  shares  sliall  be  taken  up,  at  latest, 
1866. 

"  5th.  That  the  bank  of  Messrs.  Maud  and  Comp 
and  Brazilian  Bank  shall  each  liquidate,  and  neithei 
on  business  on  their  own  account  beyond  the  Ist  Jan 
period,  if  it  shall  be  found  convenient,  the  liquidati 
shall  be  carried  on  by  the  new  bank  on  their  respect 

'^  6th.  Messrs.  Maua  undertake  to  obtain  for  the  i 
issue  of  bank  notes  at  Montevideo  and  Bosario,  whii 
the  bank  of  Maua  and  Company. 

"  7th.  That  the  business  of  the  new  bank  should  1 
Janeiro,  Pernambuco,  Bahia,  Santos,  and  St.  Paulo, 
Porto  Allegre,  and  Pan\,  in  the  Brazils;  and  j 
Paysandu,  and  Mercedes,  and  at  Rosario  and  Bueno 
Plate  ;  at  Lisbon  and  Oporto,  in  Portugal ;  and  at 
sliall  be  determined  by  tlie  directors  of  tlie  new  comp 

**  It  will  thus  bo  seen  that  tlie  shareliolders  of  this 
ticipation  in  a  large  and  valuable  existing  businesa, 
of  the  issue  of  bank  notes,  without  any  payment  bei 
goodwill.  In  order  to  enable  this  bauk  to  take  its 
capital  in  the  amalgamated  undertaking,  it  will  be  ne 
present  capital  so  a*i  to  command  on  the  Lst  of  Jani 
capital  of  £750,000  sterling.  To  effect  this,  it  is 
make  a  further  call  (to  bo  payable  on  1st  December  n* 
the  existing  13,000  shares,  and  to  create  22,000  n< 
in  the  allotment  of  which  the  shareholders  shall  be 
to  the  extent  of  three  of  such  new  shares  for  evei 
The  account  will  stand  thus  : — 


Old  sliarcs  (£100) 13.000 


Three  new  (£20)  shrrcs  for 
every  two  existing  (£100) 
shareg    ,     ..»    19,500 


On  which  £40 
been  paid  up, 
can  of  £5   ^ 
be  made  paya 
December,  1{ 

On  which  £2.  h 
will  be  pnya 
ment,  and  a 
of  £5  on  Is 
1865^    .^ 


■^  "  It  was  oriti;inalIy  proposed  (as  intimated  to  the  sharel 
17th  April  last)  that  the  immediate  payment  on  the  new  sh 
it  has  since  been  arnvnged  that  this  sum  shall  be  reduced 
fiufiicient  paid-up  capital  for   the  immediate  requirement 


Digiti 


ized  by  Google 


London  and  Brazilian  Sank. 


763 


i    of    new    i»bares   in 

\km  to  any  not   taken 

le  proprietors  (for  allot- 

bgr  the  board)    


,  On  which  £2.  lOs.  per  share 
I  will  be  payable  on  allot- 
2,500  ment,  and  a  farther  snm 
I  of  £5  on  1st  December, 
\      1865     

25,000 


18,750 
£750,000 


Le  flihares  in  the  amalgamated  bank  will,  as  aboye-mentiooed,  be  of 
siinal  amoTznt  of  £20 ;  so  that  on  the  1st  January,  1866,  those  share- 
i  oi  the  London  and  Brazilian  Bank  who  are  the  holders  of  shares 
nominal  amonnt  of  £100,  will  be  entitled  to  exchange  each  such 
share  with  £45  paid  up,  for  aix  £20  shares  in  the  amalgamated 
aking,  with  £7. 10^.  paid  up.  The  holders  of  the  new  £20  shares  in 
oJk  WW  exchange  those  shares  for  shares  of  an  equal  dMiQuiinatioB 
iew  bank,  with  £7. 10^.  paid  up.  Although  the  special  bunness  of 
meeting  is  the  consideration  of  the  proposed  arrangement  with 
.  Maud  and  Company,  and  the  increase  and  issue  of  new  capital, 
9  direetorft  have  thought  thait  it  would  be  saEtisfactory  to  their 
Dlders  at  the  same  time  to  reeetTe  a  report  ol  the  results  of  the 
g  (^  tiie  bank  during  the  half-year  eoading  SLrt  December,  1864, 
ff  hare  acoordingly  requested  the  auditors  to  examine  tlie  balance- 
Dd  profit  and  loss  aeconnt  to  that  date.    These  accounts  are  ap- 

to  this  report.  It  will  be  seen  thereby  that  idter  writing  off  the 
£16Jff[6.  7«.  6e2.  f«r  losses,  the  net  profit  for  that  half-year  amounts 
,062. 17«.  Ud.  This  will  enable  the  directors  in  July  next  to  de* 
9  interim  dividend  of  £1. 10».  per  share  (being  equal  to  a  dividend 
rate  of  7}  per  cent,  per  annum),  and  to   carry  over  a  smn  oi 

17«.  lid.  to  the  next  aeconnt,  whach  the  direetors  feel  oonfident 
ceholders  will  oonaider  saiisfaGtory." 


BAL127CC  SnEBT,  31 81  DBGEMBES*   1864. 


pud  Up     

I     

ijaUe,  aad  other  liabflities 

fimd  ...        ••• 

Dd  loss°       •••        •••        ••• 


ladcash  onbandorat  bankers?... 
XLvable  and  other  asaeta  •••        — 


£520,000  0    0 

1,977,352  18     0 

2,371.547  16  10 

20,000  0     0 

65,240  8     3 


£4,964,141 

3     1 

,..      £285.335 
..      4,6(8,S06 

0  a 

2     Z 

£4,954,141 

3     1 

FBOFIT  AKD  LOBS  JLOOCmRT'. 


£15,6«»     0     0 


idtoJimeatHh,  18S4      

I  in  London,   £5,093.    18i.  6d. ;    charges  in  Brazil, 

)09.  lOi.  5d.  ;  charges  m  fUtscsly  £1,20»;  U*  &d.    ...  16^2  10    4 

lesRieddowB      ^ 31.4S7  17  11 


i 


£65^0     8    3 


Digitized  by 


Go( 


764 


London  and  BrazUian  Ban 


Subsequent  probable  loss  at  Pernambuco 
Balance  carried  down      


Cr. 

Netprofit  to  30th  June,  1864      

Profit  to  31st  December,  1864,  after  deducting  all  known  1< 
to  that  period,  rebate  of  interest  on  bills  discounted  not 
and  interest  on  deposits 


Balance  brought  down 

Balance  brought  down 
Reserve  fund         ,„ 


The  Chairman  stated  that  he  considered  the  prov 
the  amalgamation  the  most  satisfactory  act  whicli  h 
for  the  interests  of  this  company.  Independently  < 
which  was  exceedingly  valuable,  they  had  the  satisfj 
behalf  of  the  amalgamated  company  Baron  Maud 
standing  were  beyond  question,  and  who,  as  his  1 
clever  man  of  business.  His  business  as  a  ban] 
possible  standing  on  the  River  Plate,  and  he  had  a  \ 
culation— much  larger,  in  fact,  than  the  meeting  ha< 
(the  chairman)  did  not  think  it  advisable  to  go  into 
at  present.  The  extent  of  the  business  of  the  house 
be  imagined  when  he  stated  that  on  the  River  Pla 
inwards  and  outwards,  to  £1,000,000  sterUng,  and  i1 
judged  of  from  the  fact  that,  on  the  resumption  of  a 
suspension  caused  by  the  war  in  Monte  Video,  the  bj 
government  that  his  firm  would  not  require  the  si 
tnem  in  conimon  with  aU  others,  but  would  be  prepj 
l^^i^""^  «^^ two  months,  and  they  were  now  scndim 
^ri!;  Z  .^^*  purpose.  In  taking  over  the  assets 
ThT^ilr  r*'  ^"""^^"^  ^^  °^^^  ^  ^^  trusted  would  sat 
them  i^  f  ^'''  ""^^^^  "^*  g^  ^^»^ly  to  ^ork,  and  the 
ai^d^n  thf  ^^^^^  ^*-  ^^  ^y  ^«^ts  of  whidi  they  d 
^mpanv  onlt°^  ^""^^  ^^  *^«  *«^^^«  of  theamalgLa 

a3'gT4arnr7."PP^7^^  ^y  '"^^  ^--  r  "'^ 
the  renorf  wi  •  u  •*    ,     conclusion,  he  moved  the  us 

declaSn  o?i>^  T^^^^  *^«  confirmation  of   the  ; 
per  annZ  l*^^>^^^««d  recommended,  viz.,  at  tL 

Th«  n?.^'  carrying  over  £8,552.  ITj,.  lid. 

A  Sl^n  M  ^n^  ^^"^  seconded 
^4n,ai;.aHs;     '"^^^  ^^^^^""^  tl^«  amalgamation 


ized  by  Google 


London  and  Brazilian  Banh. 


765 


HuiUTnan^Each  party  will  Lo  entitled  to  all  ilieir  tmn  assets  be- 
»  required  capital,  and  wtiatijver  surplus  there  may  be  over  our 
the  capital  to  our  cre<lit  will,  when  our  affairs  are  wouud  up,  be 
amongst  the  ahareholilers.  Some  people  have  imagined  that  the 
ijtereift  being  the  larger  would  swamp  ours.  TJio  facts  are  these— 
titled  to  ^150,000  in  the  share  of  fclie  amalgamated  company,  our 
m  being  £lO(J,000.  The  I50,0(K3  represents  the  portion  of  paid-up 
ontributed  by  MauA  and  Co.,  and  tho  shares  will  l>e  issuotl  as 
tal  is  piiid  up.  They  will  be  issued  to  the  barou,  whose  arrange- 
ith  liiB  ofwn  oo-partner3  do  not  terminate  until  1860,  and  luitil 
y  cannot  elaim  anything.  But  the  barou  informs  mo  that  the 
art  of  his  proprietors  require  more  than  their  proportion  of  the 
r  local  distribution.  Most  of  tliem  will  retain  their  own  ghares, 
!Ei  of  capital,  and  having  great  confidence  in  the  prospects  of  the 
LS  regards  himself,  he  tells  me  that  most  probably  £5D,0(K)  of  his 
m  of  tho  shar^  will  never  see  the  daylight  for  some  time  to 
i  will  be  retained  by  him  in  hia  own  hands.  But,  after  all,  what- 
f  become  of  these  shares,  the  control  will  always  be  with  mir 
f.  We  merely  take  in  the  baron  as  a  director,  but  in  forming 
nrrangoments  I  think  it  will  be  desirable  to  stipulate  that  the 
firtt  appctinte*]  shall  continue  in  office  for  a  year  and  a  half  m 
J,  for  it  is  ohvioubily  desirable  that  in  the  mtmagemeut  of  a  bank 
urs  no  suiiilen  change  should  take  place. 

"eholder  asked  wliat  were  tho  operating  motives  which  induced 

I  h?  come  to  this  agreement  i    It  had  been  Buggested  that  if  the 

and  Co.  was  so  gixxl  a  thing  as  had  been  represented  he 

\  have  de«iired  to  get  rid  of  it  on  such  tenns. 

I  \\n  replied  that  the  baron  being  no  longer  a  young  man  was 

kt  ease  which  was  suitable  to  his  age,  besides  which  he  wished 

■  to  be  frequently  with  his  children,  who  were  being  educated 

ij.     If  this  o<:impany  had  not  taken  up  the  business,  the 

&I;iUa  and  Co.  would  have  beem  brought  out   as  a  joint-stock 

>t]oii  WHS  then  put  and  carried  Tmanimou*ily,  as  were  other  fonnml 
10,  enipowering  the  direct^ira  to  take  the  neceesary  steps  for  carry- 
10  amalgamation. 

iftirnaan,  in  reference  to  the  acoounts  and  balance-sheet  for  the 

1  dated  the  meeting  on  the  results.     Notwithstand- 

ido  and  a  monetary  panic,  wluch  had  put  sotUL'  of 

%*mh(it,^nA  jeopardised  £8,000,000  or  £10,000,000 

I  down  £25,000  net  prodt,  besides  setting  aside 
>iiL  h  he  believe^l  was  more  than  snfficient,  Of  the 
been  reserved  to  meet  the  looses  at  Rio,  he  hs^il  reason 

-'ot  would  be  rec<:iupe<l,  and  that  they  would  have  a 
m  their  favour  next  half-year.     He  could  tkoi  say 

II  (ln^  current  half-year,  for  it  wjw  imiwsaible  for 

•  1  occasional  ba<i  debts.     They  hail  ha*:l  a  Iosk 

M ►,  couaequeut  upon  a  furgery,  but  which,  as 

f  party  was  tracked,  and  by  tho  ai»l  **f  the  French  and  Brazilian 

it  Lisbon    np^trrlicndcd  at  Paris  with  some  £11,000  of  prcifierty 

V'ly  reduced  by  about  half.      This  was  a  loss 

n  wn.<i  taken.     A  bill  wa?  presented  to  the 

'   d  the  manager  sent  to   the  acceptor  to 

i  bill.     The  reply  was  that  he  liad,  and 


Digitized  by 


Go( 


766  London  and  Brazilian  Ba 

the  bill  was  discounted,  but  it  turned  out  tliat  the 
the  one  that  hail  been  accepted,  but  a  copy  of  it  m 
fraud.  They  would  probably  lose  £2,CK)0  or  £3,0C 
securities  on  cotton  and  sugar,  and  in  other  bn 
})erhap8  some  triUlD^  losses.  Still  there  was  u 
slightest  aj^prehension,  and  it  must  be  a  source  of  | 
in  a  period  of  such  difficulty  their  losses  had  been 
past  six  montlis  the  business  of  the  bank  had  inci 
which  was  the  amount  for  the  six  months  ending  J 
being  an  increase  of  £1,800,000  in  six  months, 
although  they  only  paid  7;j  per  cent,  dividend,  the  a 
there  been  no  losses,  would  have  amounted  to  £38,< 
tlie  dividend  they  carried  over  £8,500,  besides  proi 
and  doubtful  debti*;  and  ajs  he  believed  the  £8,500 
any  losses  that  might  accrue  during  the  current  halj 
to  have  tlie  entire  of  the  profits  made  up  to  the  : 
amongst  the  shareholders  beyond  the  reserve  when 
pany  were  wound-up. 

A  Shareholder  ccHuplained  that  information  had  1 
of  tlie  intended  amalgamation  before  it  was  made 
holders,  and  the  consequence  had  been  great  spe< 
which  bad  been  run  up  to  10  premium  from  4-,  ali 
fell  to  5  premium. 

The  Chairman  assured  the  meeting  that  no  info 

from   any    director  or   any  other  officer    of  the 

He  had  been  so  carefid  in  the  matter  that  until  th< 

meeting  was  summoned  to  decide  upon  the  proposal 

it  to  any  one  of  his  colleagues,  the  whole  of  the  n< 

time  having  been  carried  on  between  himself  and 

resolution  approving  of  the  amalgamation  was  carrii 

day  that  the  mail  went  out,  but  the  baron  stipulatec 

made  public  until  the  mail  packet  by  which  the  ba 

mation  to  his  colleagues  had  sailed  for  Lisbon,  and 

tors  were  advised  that  the  packet  had  sailed,  they 

to  the  shareholders.     The  proposal  had  not  come  dii 

him  in  the  first  instance.     He  had  first  heard  that  s< 

might  be  possible  from   a  gentleman   in  Lisbon. 

perhaps,  therefore  have  been  talked  about,  but  the 

whatever  for  saying  that  any  of  the  directors  or  of 

had  allowed  imformation  improperly  to  go  forth,  co 

not  accoimtable  for  the  fluctuation  in  the  value  of 

{losing  that  it  arose  from  the  prospect  of  the  amal 

consider  that  as  directors  they  were  in  any  way  res 

of  the  shares  in  the  market,  whatever  it  might  be, 

day  that  the  recent  fall  in  the  price  of  their  share!^ 

losses  sustained  at  Kio  Grande,  or  some  other  place 

he  was  happy  to  say  that  he  and  his  colleagues  were 

A  Shareholder  bore  testimony  to  the  tmilorm  good 

and  intimated  his  opinion  that  the  sudden  rise  of  th 

sequent  upon  the  supposition  that  the  amalgamation 

but  to  the  fact  that  the  reserve  set  aside  to  meet  bad 

been  exlxausted.     (Hear.) 

A  vote  of  thanks  to  the  chairman  and  the  other  dii 
proceedings. 


*\  Digitized  by  GoOglC 


707 


MEBCAKTILB  BANK  OF  IITOIA,  LO]!n>ON,  A:!ro 

CHINA. 

Lual  general  meetiDg  d  f  roprieton!  iraa  Iicld  at  the  bank 
eadneedlo- struts t J  on  the  IGtli  May  ]  Mr.  Georgts  G.  Nicol 

•  report  and  balance- shoe t  were  taken  as  read  : — 
8  have  the  pleasnre  of  preacntiiig  to  the  shareholders  the 
sheet  and  profit,  and  loaa  accomit  of  the  bonk  fur  the  year 
oiber  last, 

ding  for  all  bad  and  dotMM  ^h^  and  defraying 
aagement  at  all  pomt^^  the  net  profit  amounts  ta 
,  to  which  lias  to  be  added  a  sum  of  iE7B,831.  11#,  ^rf* 
brotight  forward  from  the  preceding-  year,  making  a  toUl 
I.  3<// 

bove  total  £130,153.  ^s.  has  been  paid  in  two  half-yearly 
Dg  together  20  p<?r  cent,  on  the  paid-up  €a|>ital  uf  the? 
jpropriated  h;dfiiice  of  £65,760.  Jn*  3d.  is  carried  forward 
loss  account  of  the  current  year, 
^^inu-iit  of  £12.  lOs.  per  share,  due  2nd  January  latft, HfNA 

iBsned  1st  December,  1863,  has  been  paid. 
,  ^.--^  1,  and  Tuticorin  agencies  have  beesi  closed, tlMiiMilto 
q>eetation8,  and  for  a  similar  reason  the  Mauri titua  branch 
the  end  of  the  current  year. 

retiring  from  the  board  in  rotation  is  Sir  Frederick  Jamas 
L,  who,  being  eligible,  offers  liim^elf  for  re-dection,  and 
nend  liim  accordingly. 

Palmer  Bobinson  and  Mr.  Thomaw  Stenhouse  having  re- 
I  in  the  direction  of  the  bank,  the  shareholders  will  have 
directors 
Murray  Robertson,  one  of  the  audit^srs,  aud  Mr.  Ellis 

of  the  firm  of  Mc-S3r&.  Ashtou  and  Co.,  I*ondon,  offer 
indidates  f  jr  the  vacant  iwatfi,  and  the  court  have  much 
icommending  them  to  the  shareholders  for  election.  An 
il  meeting  will  be  held  for  tb 

commend  an  increased  allow  ^  made  to  the  dMiir^ 

ntion  in  in'ms  of  clause  113  or  uie  aeed  of  settlement  will 
u-d  iiooordiugly, 

1  1  r7  will  have  to  appoint  auditors  for  the  current  year, 

I  ickeurie,  bite  of  the  firm  of  Messrs,  Deut  and  Co,, 

iteil  to  act,  the  directors  rccommejid  him  to  you  for 

inction  with  the  present  amlltor  Mr,  J.  Smith,  Mr. 

.    itson  retiring,  in  consequence  of  his  being  a  candidnte 

.cancies  in  the  tlirection*" 


j|  B^'tmce  for  t%e  Tear  ended  nsi  D€eem^»  1864, 

LUniUTIES. 

I  Qffigiiiiil  ilkarcf           ...        *»        ^       *..    ^^  '"' 
Mw  iJtmm^  in  cmirae  of  ptifmnit    


)r»  In  dnndHitiiiD,  snil  odter  nmna  «](ie  to  the 

...    5,7Vr,S4S  f3    S 


•««,         «««i 


Digitized  bj 


768     Chartered  Mercantile  Bank  of  India^  Lon 

Kcscrve  fund  

Profit  and  loss  accotint— Balance  for  year  ended  31st  Dece 
1864,  after  deduction  of  charges,  income-tax  for  year  to 
and  bad  and  doubtful  debts,  £201,913.  12*.  3d. ;  less 
dend  paid  for  half-vear  ended  30th  June,  1864,  £63,489 


ASSETS. 

Cr. 

Coin  and  bullion     

Cash  with  bankers  and  money  at  call      

Government  securities  

Reserve  fund  investment  account 

Landed  and  house  property  at  head  office  and  branches 
Bills  receivable,  loans  and  other  debts  due  to  the  corporatic 


PROFIT  AND  LOSS  ACCOUNT. 

Dividend  for  half-year  ended  30th  June,  1864 
Do.                   do.                   31st  December,  1864 
Balance  carried  forward 


Balance  of  undivided  profit  from  31st  December,  1863 
Net  profit  for  the  year  ended  31st  December,  1864 


1865,  January  1.    By  balance  brought  forward 


RBSERVE   FUND. 

Balance  

Balance  on  31st  December,  1863  

Balance  of  premium  of  £10  per  share  on  new  shares,  rec 
since  3ist  December,  1863        ••»        


1865,  January  1.    By  balance  brought  forward 


Tho  Chairman  said  that,  as  compared  with  the  i 
there  was  a  total  increase  in  the  liabilities  of  £3 
presented  by  the  additional  capital  created,  and  tin 
reserve  fund.  In  the  current  account  and  fixed 
increase  of  £700,000,  which  he  thought  was  a  satisf 
progress  of  the  bank.  The  bills  payable  stood  near 
as  last  year.  On  the  other  side  of  the  accoimt  there 
cash  at  bankers',  and  money  at  call,  an  increase  c 
sterling.    He  was  sorry  not  to  have  a  more  satisfaci 


Digiti 


ized  by  Google 


intile  Bank  of  India,  London,  and  China.  769 

a  mind  that  tlie  period  through  which  they  had  just 
:  great  trouble,  anxiety,  and  reverses.  It  would  be 
seal  the  fact  that  they  had  had  heavy  losses ;  but 
ional  character,  and  such  as  were  not  likely  to  occcur 
t,  therefore,  draw  from  the  results  of  the  past  half- 
infavourable  to  the  future.  They  had  had,  during 
itend  with  heavy  mercantile  failures,  from  some  of 
red;  and,  besides,  there  had  been  the  difficulty  of 

rate  of  money,  which  bore  very  heavily  on  this 
ere  was  the  necessity  of  increasing  their  reserves 
ad  adverted  to  the  increase  of  a  million  and  a 
t  bankers',  and  money  at  call ;  that  had  arisen  from 
>se,  in  August  last,  when  they  saw  the  mischief  that 
prepared  in  time,  and,  accordingly,  they  determined 
re  at  all  points,  and  this,  by  causing  the  withdrawal 
the  working  capital,  diminished  the  profits.  During 
half-year  they  had  never  less  than  £700,000  in  cash 
gency  that  might  hapi)en.  The  locking  up  so  large 
Dade  the  latter  part  of  the  year  very  improductive. 
that  were  likely  to  occur  in  1865,  the  position  of  the 

say,  was  very  satisfactory.  In  the  present  account 
)  time  of  the  audit  to  have  been  made  up  to  Decem- 
1.  In  this  way  the  loss  arising  from  the  failure  of 
md  Co.  was  provided  for.  Of  the  tottd  amoimt  of 
;he  assets  of  the  firm  at  15s.  in  the  pound,  £4,000 
nd  there  was  no  reason  to  suppose  tliat  the  losses 
he  accounts  of  18G5  would  exceed  £16,000,  which, 
ley  hadpa.ased  through,  was,  he  submitted,  exceed- 
)  directors  had  had  to  make  the  selection  between 
le  had  no  doubt  the  proprietors  would  concur  in  the 
ley  arrived,  that  safety  was  to  be  considered  first, 

(Hear,  hear.)  But  the  result  of  their  decision  was 
ofit  was  compensated  by  the  absence  of  heavy  loss. 
I  hoped  the  result  would  be  more  favourable,  and 
rofit  would  be  earned.  During  the  year,  as  was 
the  .board  had  decided  upon  closing  the  branches 
id  Tuticorin,  which  they  found  could  not  be 
Two  of  the  directors,  Messrs.  Robinson  and 
tired,  the  board    had   great    pleasure    in    recom- 

Robertson,  one  of  the  auditors,  and  Mr.  E. 
■m  of  Ashton  and  Co.,  of  London,  to  fill  the 
these  gentlemen  were  eminently  qualified  by 
the    commerce    of    the    East,   and    by  the  high 

the  city  of  London.  Following  the  usual  prac- 
eir  seats  at  the  board  provisionally,  but  at  an  ad- 
e  purjxjse  their  election  would  have  to  be  confirmed 
^  auditor  would  have  to  be  appointed  in  place  of 
yt  this  oflice  the  board  recommended  Mr.  J.  J. 
3  firm  of  Dent  and  Co.,  of  China.  The  meeting 
B  an  increased  allowance  to  the  chairman,  whose 
required  to  be  given  to  the  duties  of  the  office,  in 
rdinary  salary  of  a  director  was  not  sufficient.  The 
the  chairman  was  £1,000  a  year, 
lat  dividend  it  was  proposed  to  pay  in  July  next  T 


I 

i 

Digiti 


zed  by  Google 


770 


BaaJi:  of  Queendand. 


The  Cliairman  waa  not  in  a  position  to  aay  posi 
was  going  on  satisfactorily,  and  lie  had  no  doubt  t 
with  the  dividend  that  would  be  paid  in  July.  H 
tion  of  the  report,  which  was  seconded  by  a  propi 
nimoufily. 

Sir  F.  Halliday,  who  retired  by  rotatiMi,  was  re- 
Mr.  Mackenzie  was  elected  auditor. 

A  resolution  was  then  proposed  and  carried,  fixii 
chairman  at  £1,000  a  year  from  the  1st  of  January 

A  vote  of  thaid^s  to  the  chairman  and  his  colleoj 
ceedings. 

At  the  adjourned  meeting  of  this  bank,  held 
James  Murray  Robertson  and  Mr.  Ellis  James  Gil 
elected  directors  in  tlie  room  of  Mr.  G,  P.  Robinsot 
house,  resigned. 

The  Chairman  availed  himself  of  the  opportunit} 
faction  of  the  meeting,  that  the  failure  of  Messrs.  1 
which  intelligence  had  that  morning  been  receive 
very  torifling  loss  to  the  bank,  owing  to  the  prec; 
timely  warnings  and  orders  sent  to  Bombay  some 
greatest  caution  was  observed  there  and  at  other  br; 
by  the  failure  of  Messrs.  Lindsay  and  Co.,  in  China 
Ritcliie  and  Co.,  Ceylon,  would  the  bank  be  sufft 
they  affected  by  any  failures  which  had  taken  place 
Hamilton  and  Co.  The  chairman  further  intimate 
tion  of  the  board  to  prevent  hereafter  a  re-trans: 
London  to  the  Bombay  register,  it  having  been  fou] 
this  facility,  which  was  one  not  sanctioned  by  t 
opened  a  door  to  abuses,  and  led  to  speculative  ( 
tions  in  the  value  of  shares  which  the  board  wa 
as  far  as  they  could. 


BA^K  OF  QUEENSLAND 


On  Wednesday,  the  17th  inst.,  the  third  ordinary 
holders  in  this  bank  was  held  at  the  offices,  2G,  < 
Brockett  in  the  chair. 

The  Secretary  (Mr.  Muir)  read  the  notice  conv 
the  directors'  report,  viz.  : — 

^  The  directors  now  submit  their  tliird  report  t 
oompanied  by  the  accoimts  duly  audited,  showing  t 
tions  of  the  bank  for  half-year  to  31st  December,  '. 
undivided  profit  on  that  date  amounts  to  it6,999.  1 
directors  propose  to  appropriate  as  follows  . — £oOO 
fund  ;  £509.  16s.  8d.,  or  10  per  cent,  of  the  balance 
liminary  expenses  ;  i^5,008.  IGs.  in  payment  of  a  di\ 
free  of  income-tax,  on  the  shares  issued,  which,  wi 
per  share  paid  for  half-year  to  30th  June  last,  wi 
the  year  1864  of  about  6^  per  cent. ;  £125.  45.  bd. 
tax  on  the  dividend;  and  the  balance  of  £855. 
forward  to  profit  and  loss  new  account.  It  was 
report  that  arrangements  were  in  progress  for  open 
Business  was  commenced  there  on  1st  September 
already  made  has  fidly  realised  the  expectations 


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ized  by  Google 


Bank  of  Queensla/uf. 


771 


Elookhamptoii  on  15th  December  last.  This  is  a  place 
tance,  being  the  present  outlet  for  the  trade  of  a 
isive  squatting  district;  and  the  directors  pur- 
ranch  until  they  were  in  a  position,  with  larger 

avail  of  the  business  ofi'ering.  Since  31  st 
ranch    has    also    been    opened    at    Toowoomba, 

rich  pastoral  district  of  the  Darling  Downs. 
Iiese  branches  was  necessary  for  satisfactorily  carry- 
inland  business  emanating  from  the  chief  branch  at 
been  established  at  moderate  cost,  which  has  been 
if  the  bank's  earnings  for  the  half-year.  The  direc- 
satisfactory  and  profitable  result  to  the  bank  from 
a.  The  colony  continues  to  progress,  and  trade, 
year,  was  active.  The  imports  and  exports  for  18G4, 
ious  year,  show  a  large  increase,  the  values  being, 
»xX>orts,  £1,247,054,  and  increase  of  32  and  40  per 
►f  the  exports,  £1,037,663  consisted  of  wool,  and 
)ld-dust.  In  conformity  with  the  articles  of  asso- 
s  go  out  of  office  at  the  meeting,  viz., — Edward 
Lllespie,  Esq.,  Jolm  Alers  Hankey,  jun.,  Esq.,  wlio, 
imselves  for  re-election.  In  pursuance  of  the  articles 
ded  at  the  late  special  meetiug,  two  auditors  will 
;  the  meeting  in  room  of  Mr.  David  AUardice  and 
lurchill,  who  retire  from  office.  *  As  the  latter  has 
L  of  not  again  offering  himself  for  re-election,  the 
o  the  shareholders  as  auditors  for  the  present  year, 
id  Mr.  Charles  F.  Kemp,  the  latter  of  the  firm  of 
I,  Ford  <k  Co.,  public  accountants.  In  conclusion, 
sure  in  reporting  that  during  the  half-year  the  cir- 
deposits  has  increased  89  and  65  per  cent,  respec- 
g  same  period  the  number  of  current  accounts  has 
)  per  cent." 

abilities  and  Assets  on  31st.  Dccemher,  1864. 

UABILmES. 


bilities 

December,  1864 


ASSETS. 


ivable,  and  other  eecuriticB 

noant  as  per  first  statement,  31  st 
)62    19*.    Ud.  ;    written  off  to  16th 

l2s.Ud.         

&c 


£166,883 

0 

0 

14,163 

0 

0 

67,392 

14 

8 

96,359 

3 

0 

1,000 

0 

9 

6,999 

1 

10 

£352,999 

0 

3 

£24,548 

7 

5 

320,479 

19 

0 

5.098 

7 

0 

2,872 

6 

10 

£352,999 

0 

3 

Digiti 


ized  by  Google 


772 


Bank  of  Queensland. 


Dr. 


Profit  and  Loss  Account,  Z\st  Dccerr 


Cnrrent  chargrcs.  including  salaries,  rent,  taxes,  statioi 
at  head  office,  £1,182.  18*.  9d. ;  ditto  at  branches, 
all  preliminary  expenses   and    first    charges  at 
branches,  Dalby  and  Kockhainpton,  and  cost  of  so 
officers  I rom  London,  £3,960.  Us.  Id, 

Directors'  and  auditora'  remuneration       

Dividend  (free  of  income  tax)  on  8,348  shares  at  125.  j 
£5,008.  165.  ;  income  tax  on  dividend,  £125.  4s, 

Amount  written  off  preliminary  expenses 

Amount  added  to  reserve  fund       

Balance  carried  to  profit  and  loss  new  account    ... 


Cr. 

Balance  from  last  account  

Gross  profits  to  31st  December,  1864,  after  paying  ir 

deposits  


The  Chairman,  in  moving  the  adoption  of  th 
regret  that,  from  imforeseen  circumstances,  they 
the  valuable  services  of  their  chairman,  and  it  wj 
absence  that  he  had  been  requested  to  take  upon 
of  presiding  at  this  important  meeting.  Ho  mi 
kind  indulgence  and  support  whilst  he  endeavoui 
which  he  had  so  suddenly  and  so  unexpectedly  b< 
The  report.,  the  adoption  of  which  he  was  about 
days  in  their  possession,  and  no  doubt  they  had  s 
it  would  therefore  be  unnecessary  for  him  to  go  tl 
by  item.  By  it  they  would  see  that  the  accounts 
detailed  form  than  had  hitherto  been  done,  to  em 
understand  the  different  items  of  credit  and  exp( 
now  kindly  refer  to  the  balance-sheet  they  wou 
profits  for  the  past  half-year  amounted  to  £6,999 
was  proposed  to  pay  a  dividend  of  125.  per  share,  f  i 
ing  to  £5,008.  16s.,  to  pay  the  income-tax  on  the  a 
off  £509.  165.  Sd.  from  preliminary  expenses,  to 
fund,  and  to  carry  forward  a  balance  of  £855.  4s. 
new  account.  Now,  probably,  some  of  them  we 
directors  hjvd  not  decided  upon  paying  a  larger  di 
admit  that  the  profits  of  the  half-year  would  hav( 
doing  so  to  some  extent,  but  to  have  enabled  thei 
they  should  have  had  to  open  a  new  account  in  tl 
expenses,  to  cover  the  charges  incurred  in  establii 
branches  at  Dalby  and  Rockhampton,  as  well  si 
out  a  staff  of  officers  from  this  country,  such 
reduced  by  writing  off  annually  20  or  30  per 
the  preliminary  expense  accoimt  at  this  oiSice. 
Would  admit  that  in  adopting  the  other  course  tb 
a  sound  and  wise  discretion — that  is,  in  giving  i 
dend,  and  in  paying  off  and  utterly  extinguishing 


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'Provincial  Bank  of  Ireland.  773 

•,  and  thus  freeing  the  new  branches  from  an  annual 
iiore  or  less  have  tended  to  diminish  their  future 
ihere  could  be  no  doubt  that  these  branches  w<:)uld 
bank,  not  Only  from  the  new  business  which  they 
ihe  facilities  which  they  would  offer  for  increasing 
bank's  notes.  They  would  be  glad  to  know  that 
commerce  of  the  colony  had  increased  considerably 
he  imports  and  exports  reaching  in  value  no  less 
ii;l,247,054  respectively,  whilst  among  the  latter 
m  of  export — namely,  gold,  amounting  to  £83,292. 
g  it  might  be  to  them  to  hear  of  the  advancing 
ly  during  the  past  year,  it  would  not,  he  was  sure, 
hem  to  learn  that  during  that  period  the  Bank  of 
iood  still.  Even  withiii  the  last  half-year  the  cur- 
eased  upwards  of  80  per  cent.,  whilst  the  increase  in 
leposits  was  still  more  remarkable.  On  the  31st 
sirculation  amounted  to  £3,394 ;  on  the  30th  June 
id  on  3l8t  December  last  it  reached  £14,1G3.  The 
cember,  1863,  were  £21,116  ;  on  30th  June  last, 
December  last  they  amounted  to  £67,592.  These 
Le  for  themselves,  and  from  which  he  thought  they 
ng  to  the  conclusion  that  the  bank  was  expanding 
tance,  and  assuming,  slowly  it  may  be,  but  gradually 
which  would,  in  due  time,  place  it  in  the  front  rank 
irishing  establishments  which  had  sprung  up  in  the 
He  would  not  trespass  longer  on  their  time,  but  would 
ly  questions  they  might  wish  to  ask  him  respecting 
any.  He  could  assure  them  it  was  the  earnest  wish 
B  and  himself  that  every  proper  information  should 
lolders,  and  that  mutual  confidence  and  good  feeling 
between  them,  without  which  it  would  be  impossible 
riising  undertaking  ever  to  succeed.  (Cheers.) 
ded  the  motion,  which  was  unanimously  adopted, 
rs,  Edward  Gellatly,  Esq.,  John  Gillespie,  Esq.,  and 
un.,  Esq.,  were  re-elected. 

3  and  Mr.  Charles  F.  Kemp,  oAhe  firm  of  Messrs. 
and  Co.,  were  elected  auditors  for  the  present  year, 
of  Mr.  Churchill,  resigned.     The  remuneration  of 
[  at  £40  each. 

[)n  moved  a  vote  of  thanks  to  the  chairman   and 
carried  unanimously, 
en  terminated. 


UNCIAL  BANK  OF  IRELAND. 

eneral  meeting  of  the  proprietors  of  this  bank  was 
.y,  at  their  house,  42,  Old  Broad-street ;  SirMinto 
.,  occupied  the  chair. 

Christie,  read  the  notice  convening  the  meeting. 
er,  Esq.,   Sir  Minto  Townshend  Farquhar,   Bart., 
Ssq.,  and  Sir  Moses  Montefiore,  Bart.,  the  retiring 
aously  re-elected. 

b  was  then  read  by  the  secretary  : — 
12  the  fortieth  since  the  formation  of  the  bank,  the 

61 


Digitized  by  CjOOQIC 


774 


The  Procincud  Bank  of  Ire 


director*  take  occasion  tc^xpress  to  the  proi)rieto] 
which  they  contemplate  the  success  which  has  a 
during  that  long  j^riod,  while  at  the  sauie  time  Ii 
advantages  arising  from  the  introduction  and  d( 
system  of  banking  in  that  country.  The  season  c 
for  the  early  grain  crops,  and  wheat  and  barley  v 
good  quality.  The  later  crops,  however,  suffered 
which  prevailed  during  the  summer,  and  the  oat  cr 
a  deficient  one.  From  the  same  cause  green  c? 
deficient ;  but  fortunately  the  potato  crop  was  a  ] 
good  quality.  Flax  was  also  a  heavy  crop,  and  wa 
wderably  larger  extent  than  heretofore.  The  flax  ^ 
and  the  dry  season  being  unfavourable  for  steeping, 
were  not  in  proportion  to  its  bulk  ;  but  notwithsta 
and  a  rather  low  rauge  of  prices,  the  flax  crop  i 
remimerative  to  the  farmer.  Tlie  directors  regret 
the  pecuniary  condition  of  the  small  farmers  in  Ire 
undergone  improvement,  their  principal  crop,  oa 
stated,  been  a  deticient  one,  while  the  prices  of  gr: 
This,  of  course,  prolongs  the  depression  which  hi 
prevailed  in  the  retail  trade  of  the  country.  On 
larger  landholders  have  continued  to  derive  subst 
high  price  of  cattle  and  shet^p.  Wool  also  rose 
price  during  last  summer,  but  has  since  consid 
linen  trade,  which  forms  the  staple  of  the  Nortl 
tinned  prosperous.  The  manufacture  and  ex^wrt 
increased  during  the  past  year,  and  prices  were  st( 
The  prospect  of  peace  in  America  has  latterly  br 
©f  prices,  but  no  commercial  difficulties  have  ar 
▼alue  of  money  has  undergone  numerous  an* 
at  ions  during  the  year,  the  average  rate  of 
The  directors  have  to  express  their  regret  at  the  h 
vices  of  Mr.  Robert  Murray,  the  late  chief  officer 
on  the  2l)th  February  last,  after  a  very  short  illi 
been  in  the  service  of  the  bank  from  its  establishmi 
to  within  a  few  months  of  forty  years.  He  was 
business  experience,  of  acknowledged  ability,  and 
the  discharge  of  his  various  and  responsible  dutie 
appointed  their  late  secretary,  Mr.  Thomas  Hewat,  i 
as  chief  officer  and  superintendent  of  branches ; 
Christie,  for  many  years  the  principal  assistant  in 
ment  in  London,  has  succeeded  Mr.  Hewat  as  sec 
of  the  meeting  is  now  requested  to  the  following  sta 
The  account  submitted  to  the  yearly  general  raoeting  ii 
18f)4,  showed  the  amount  of  rest,  or  undivided  prol 

26th  .March,  18G4,  to  be       

Out  of  which  there  has  been  paid  to  the  proprietors  the  a 
of  two  ordinary  and  extraordinary  dividends  as  ibllo 
At  Midsummer,  1864 — Ordinary  dividend  of  4  per 
£21,000  ;  extraordinary  dividend  of  6  per  cent.  £3 
together,  £54,000.  At  Chrigtma*^  1834— Oi^inarj 
dend  of  4  per  cent.,  £21,600  ;  extraonlinary  divideE 
percent.  £32,400»  tog^hef  ^54,(MJ(J        

Living  a  balance  of         


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'ht  Ptovincial  Bank  of  Ireland. 


776 


inae%  been  itclded  the  amotint  of  net 
r  ending  on  the  25Ch,  being  the  last 
ii,  IS65,  after  deducting  property-tax, 
ftU  b«4  and  doubiful  debts        

amount  of  undivided  profitf),  at  25th 


111,695  la    S 


£256,5' 

f       i   I 


13    7    8 


•ill  obs?7TTe  that  an  addition  of  abont  £4,000  has  been 
the  directors  intend  to  continue  the  dividend  at  the 
ir,  and  have  aceordingly  now  to  intimate  that  they 
:t  an  extraordinary  dividend  of  30^.  on  each  £100 
ich  £10  share  of  the  capital  stock  of  the  bank,  in 
lary  dividend  of  4  per  cent.,  making  the  amount 
105.  on  each  £100  share,  and  £1  on  each  £10 
ar  ending  Midsummer  next,  and  they  wiU  also,  as 
operty-tax  for  the  proprietors/' 
noving  the  adoi^tion  of  the  report,  said  :  Gentlemen, 
he  honour  to  elect  me  chairman  for  the  day,  on  the 
)od,  made  in  far  too  flattering  terms,  it  will  become 
V  brief  observations  in  moving  tlie  adoj)tion  of  tJio 
:self  is  brief,  but  it  brings  before  you  all  the  points  of 
3  a  great  deal  of  beauty  in  brevity — brevity  is  the 
ct  a  story  that  is  told  of  a  boy  at  one  of  the  public 
he  custom  to  set  subjects  for  epigrams  to  contain 
short.  This  boy,  when  brevity  was  given  as  the 
exercise  only  one  verse,  namely, — "  8i  valet  brcvitas, 
e."  And  the  boy  was  considered  very  shrewd  ancl 
eat  praise.  Short  as  our  report  is,  it  is  very  Batisfac 
our  intention  of  paying  20  per  cent,  for  the  ninth  time 
ate  of  Ireland  is  one  of  the  topics  alluded  to  in  the 
more  especially,  for  all  matters  connected  with  agri- 
it  be  important.  For  the  four  years  ending  in  18GU 
9  crops  were  deficient,  but  in  the  year  1863  and  in 
on  stated  in  the  report,  there  was  an  improvement, 
to  inform  you  that  from  the  report  which  we  havo 
lager  at  Enuis,  relative  to  the  Ballinasloe  Spring 
ed  the  €^th  of  May,  1865,  it  was  most  successful, 
graziers  sold  all  the  cattle  they  took  to  the  fair,  at  .in 
ling,  and  at  very  remunerative  prices.  They  never  ob- 
May  fair  the  high  prices  realised  yesterday — £1. 105. 
ear's  prices,  and  they  considered  last  year's  fair  a  good 
>m  £18.  15«.  to  £14.  10*.  Clanroad  fair,  held  this  day 
in  consequence  of  the  good  sales  at  Ballinasloe,  a 
ery  iuiportant  and  satisfactory  report,  especially  tm 
it  the  accounts  which  I  receive  from  my  own  friends 
ts  there  made.  The  season  never  opened  with 
Q  at  present.  On  one  or  two  occasions  the  question 
been  brought  before  you,  audit  is  a  most  imiwrtant 
f  Ireland.  To  give  you  an  idea  how  that  trade  has 
last  few  years.  I  may  give  you  an  extract  from  the 
¥  Circulax :"  '^The  total  acreage  under  flax  iu  1S64 
:nftt  ifl4/)ll2  acres  in  1363,  sb<5wuig  ati  in<Jreasd  iji  tie 
sar  fust  closed   of  ^T^SW    acfod.    A    €tinX    say  of 


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776 


The  Provincial  Bank  of  Ire 


£4,500,000  distributed  in  payment  of  this  one 
produce  is  unquestionably  a  matter  pregnant  with 
cannot  remain  much  longer  unconscious  of  the  r 
prices  rule  low  the  flax  crop  will  often  be  found 
that  they  could  select."  This  is  most  importar 
Ireland  is  concerned,  for  when  the  American  war  b 
London  feared  that  the  linen  trarle  would  suffer,  bi 
case.  It  has  beeu  said  that  the  small  farmers  hav< 
great  depression  that  occurred  during  the  four  yeai 
harvests  were  not  so  good  as  we  could  have  wis 
hope  from  the  prospects  of  this  year  that  an  i 
place  in  their  condition.  It  is  of  conaeque 
should  prosper  ;  for  if  they  suffer  there  must  be 
traders.  I  find  from  the  poor  law  reports  that  th( 
paying  poor  rates  has  increased  between  1855  anc 
remember  that  it  was  in  these  years  there  were  t 
I  mentioned.  The  valuation  in  1865  was  £12,623,0 
in  1855.  We  have  reason  to  feel  convinced  tf 
position  in  Ireland  of  credit  and  trust  which  it  has 
we  are  supported  throughout  Ireland,  and  all  repc 
continues  to  flourish  and  prosper  as  a  commercial 
We  have  forty-four  branches  in  Ireland,  and  th 
much  attention  and  supervision.  The  bank  is,  as  i 
very  sound  position.  We  have  three  inspectors  ai 
tor  who  visit  the  branches,  and  see  that  the  man; 
do  their  duty.  We  have  to  regret  that  we  have  1 
excellent  officer  Mr.  Murray.  For  almost  forty- 
our  service ;  a  man  of  greater  determination  to 
more  honest  integrity,  a  man  more  devoted  to  the 
have  been.  In  expressing  our  regret  at  his  death 
to  pay  this  testimony  to  his  memory.  It  is  not 
a  bank  loses  a  man  of  this  character  that  it 
another,  in  whom  they  have  the  most  perfect  oo 
my  friend  on  my  right,  has  been  in  the  bank  thirty 
years  he  was  inspector  in  Ireland ;  he  then  be 
bank  in  1845,  having  succeeded  Mr.  Marsha 
to  regret  is,  the  loss  we  sufler  by  his  being  rei 
to  Ireland,  but  we  feel  it  our  duty  to  send  him  to  1 
he  will  be  the  chief  superintendent  in  the  place  wh< 
is  being  carried  on,  and  where  I  am  satisfied  he  wil 
admirably,  as  thoroughly,  and  as  truthfully  as  he  1 
have  been  fortunate  also  in  being  able  to  fill  up 
appointing  Mr.  Christie  as  our  secretary,  who  hat 
this  bank,  and  we  are  sure  that  Mr.  Christie,  bavin 
under  Mr.  Hewat,  will  make  it  his  business  to  emu 
and  to  fill  the  place  as  well  as  his  predecessor  has 
are  not  flattery ;  they  are  positive  truth.  I  hav' 
regret  at  the  absence  of  Mr.  Farrar.  You  know  he 
exertions,  and  I  am  sorry  to  state  that  during  the 
unwell,  and  that  is  the  only  reason  for  his  absence 
this  is  only  the  second  time  he  has  been  absent  fro 
for  forty  years.  I  now  beg  to  move  the  adoption  oi 
Mr.  Bacon  seconded  the  motion,  and  it  wafl  carrie 
;Ml*.  Sebag  moved  a  vote  of  thanks  to  the  chairma: 


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ich  Credit  Mobilier  Company,  777 

ner  in  which  they  had  conducted  the  affairs  of  the 

111,  M.A.,  seconded  the  motion,  which  was  carried  by 

owledged  the  compliment  on  behalf  of  himself  and 
md  the  meeting  terminated. 


a  CREDIT  MOBILIER  COMPANY. 

of  this   company  haa  just  been  held  at  Paris;  M. 
lair.    That  gentlemen  read  the  report, 
kges  of  the  document  assigns  reasons  for  the  reduc- 

After  reminding  the  shareholders  that  the  present 
1  time  of  giving  an  accoimt  of  the  situation  of  the 
Eiys  :— 

B  not  ceased  to  be  satisfactory,  although  it  has  not 
M  we  could  have  wislied;  but,  as  you  are  aware, 
lie  past  year  circumstances  have  been  anything  but 
es  of  difficulties  which  have  been  experienced  during 
nystery  for  anyone.  The  period  of  pause  which  our 
iergo  is  due  to  the  influence  of  external  circumstances 
ither  foresee  or  dominate.  We  allude  in  particular 
( in  which  the  money-market  has  been  so  long  placed, 
igh  rate  of  interest  marking  the  crisis  from  which  we 
«ued,  and  the  effects  of  which  still  weigh  heavily  on 
imerce.  An  elevated  discount  always  produces  grave 
less,  and  those  perturbations  are  more  particularly 
hose  propriety  depends,  above  all,  on  the  ameliora- 
rded  in  the  conditions  of  credit  and  in  the  abundance 
ial.  In  such  circumstances  establishments  of  credit 
mselves  fortunate  if  they  possess,  like  us,  resources 
be  obliged  to  slacken  the  undertakings  engaged  in 
re  favourable.  But  the  high  rate  of  interest  has 
esult  to  augment  the  charges  falling  on  industrial 
I  arrests  all  business,  and  paralyses  all  spirit  of  enter- 
way  that  in  moments  of  general  cessation  one  of  the 
prosperity  is  found  to  disappear.  Lastly,  and  it  is 
ice  between  our  situation  and  that  of  the  generality 
ipitalists,  as  soon  as  the  rate  of  intere&t  rises,  all 
1  securities,  movable  or  immovable,  are  struck  with 
jciation.  Those  are  facts  which  we  enunciate,  not 
u  reprehension,  but  solely  on  account  of  the  influence 
)usines8.  Fortimately,  it  is  not  on  the  income  of  a 
t  to  be  appreciated  the  kind  of  services  which  an 
is  can  render ;  they  can  only  be  judged  of  from  re- 
h  a  series  of  years,  and  those  results  are  shown  of  an 
)i  per  cent,  on  the  capital  of  our  shares  since  oiu: 
We  have  thus  explained  how  we  have  to  suffer  from 
it  if  we  suffer  from  them  more  than  others,  on 
mc«  of  our  investments,  and  the  loss  which  is  necea- 

U8    by    every   depreciation  in  the  Talue    of    our 


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f78 


French  Credit  Mobilier  Com}: 


assets — if  we  thus  first  receive  our   sbare  of  the 

country  may  experience,  it  must  be  admitted  that  1 

we  participate  in  a  large   proportion  in  the   adva 

duced  by  the  return  of   prosperity.      We  are  at  p: 

profit  by  such  a  return,  for  during  the  period  of  ci 

have  passed  we  have  not  ceased  to  labour  for  the  am< 

ment  of  all  our  undertakings  ;    we  can  congratulal 

been  able  to  resist  vigorously  the  causes  of  perturl 

on  not   having  allowed  the   companies  placed  un( 

cease  for  a  single  moment,  and  on  having,  on  the  c< 

all  the  resources  at  our  disposal,  so  that  we  have  sue 

in  an  advantageous  situation.     The  rei)ort  then  prot 

position  of  the  most  important  of  those  undertakings, 

Mexican  loan,  which  it  admits  to  have  turned  out 

ing  not  only  a  depreciation  of  property  on  the  pc 

but  a  loss  to  the  company  who  brought  it  out,  an^ 

mission  to  which  the  company  was  entitled.     The 

millions  of  francs  turned  out  more  fortunately,  thi 

second  portion  of  the  loan  reserved  to  the  subscri 

Ottoman  Bank  is  described  as  prosperous,  a  divid 

announced  on  the  250f.  paid  up,  or  16  per  cent.    J 

the  home  debts  of  Turkey,  and  a  concomitant  loan 

pounds  in  5  per  cents.,  the  Credit  Mobilier  had  de< 

m  it.     The  report  also  admits  that  the  Society    ] 

mcrce  et  d'Industrie  has  turned  out  unfortunately, 

dicioua  purchases  of  property,  and  partly  to  the  co] 

director,  who  had  taken  to  flight  under  the  weie 

losses  in  speculations  at  the  Bourse.     On  the  o1 

Mobilier  lt<ilien  has  passed  through  the  crisis  wit 

realised  a  considerable  profit.     As  to  the  railways  p 

Mobilier,  the  first,  the  Austrian  group,  was  decided  1 

be  pronounced  in  a  favourable  position  ;  the  second,  t 

showed  an  improvement  in  receipts  on  the  prccec 

third,  the  Northern  of  Spain,  avowedly  nnfortum 

sentations  to  the  Spanish  government  relative  to  th 

of  construction  over  the  official  estimates,  and  asl 

The  receipts  on  this  line  are  represented  as  improvii 

to  increase,  particularly  as  the  Spanish  cabinet  has 

to  modify  the  duties  on  various  articles  which  will 

siderable  source  of  traffic  between  France  and  Spair 

which  have  been  disseminated  of  the  unfavourable  p 

Credit  Mobilier,  they  are  declared  to  be  entirely  ui 

pany  has  realised  a  net  profit  in  the  last  year  of  18 

gas  company  has  been  constituted,  and  the  shares 

cent,  for  ten  years  by  the  Spanish  Credit  Mobilier.  < 

of  coal  from  the  pits  belonging  to  the  Northern  oi 

pany,  no  doubt  could  be  entertained  of  the  success  ol 

The  Paris  Gas  Company  was  regularly  extending  i 

sumption  of  gas,  which  in  1856  was  4T ,5^35,475  cub 

attained  1 00,()1 0,000,  necessitating  a  consumption  of ; 

annum,  or  more  than  1 ,000  tons  each  day.  Thedividei 

in  ]856,  to  lOofr.  at  preeent,  or  21  per  cent,  on  the 

Transatlantic  Maritime  Company  was  improving  ra 

for  the  past  year,  with  a  supply  of  vessels  represent i 


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%nk  of  India,  Australia,  and  China.        779 

OOOfr.,  or  10  per  cent,  interest.  The  Paris  Cab 
lie  des  Entrepots,  and  the  Compagnie  Immobiliere 
ig  in  a  prosperous  position,  and  likely  still  further 
k^referring  to  the  financial  situation  of  the  Credit 
s  the  following  balance-sheet : 

ASSETS.  fr.  c. 

50,545,603  34 

24,730,792  46 

64,851,993  87 

;;'         " 2,649,973  42 

mn'k,  and  dividends  lo  receive  ••«      39,387,652  14 

172,166,015  23 


LUBILrn£8. 


60,000,000  00 


8  cVeditora,  and  bills  to  be  paid         ...    102,240,594  70 

5«,212  vl 


profit  and  loss,  including  the  balance 


2,000,000  00 

7,808,207  56 

172,166,015  23 


Qtiou  to  the  fact  that  the  company  had  the  largo 
the  3l8t  of  December  last  at  the  Bank,  without 
bliged  to  contract  its  business  in  consequence  of  the 
the  profits  mentioned  above,  it  proposes  in  addi- 
eady  distributed,  in  the  shape  of  2of.  per  share, 
milar  sum,  making  the  whole  dividend  for  the 
tenth  part  comes  to  the  directors  of  the  sum  re- 
the  first  25f.  a  share,  or  333,333f.  33c.,  there 
I74f.  23c.  to  be  placed  to  the  reserve.  The  docu- 
faring  that  the  shareholders  can  judge  by  those 
lifficult  times  what  would  have  been  effected  had 

ourable.  ^   ,   .i       v   • 

ed  unanimouftly  of  the  accounts ;    voted  the  divi- 
ear  18(34;    and  re-elected  the  out-going  directors, 
liarles  Mallet,  and  Grieninger. 
ig  a  wish  to  make  any  observation,  the  proceedings 


lOTC  0^  INDIA,  At'STRALIA,  AND  CHINA, 
aeral  meeting  of  the  proprietors  of  this  bank  was 
at  the  London  Tavern,  T.  M.  Mitchell,  Esq.,  in  the 
ig  to  confirm  the  resolutions  of  the  extraordinary 
on  the  12th  day  of  April.  -n  n     ai 

'■  the  Chairman,  seconded  by   Mr.  Peter  Bell    the 
the  32th  of  April  were  confirmed ;  those  resolutions 

directors  be  authorised  to  apply  to  her  I'ljje'^ty's 
al  of  the  restriction  in  clause  84  of  the  deed  of  settle- 


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780 


Bank  of  Victoria, 


ment,  by  which  the  shareholders  are  limited  to  the 
of  the  outgoing  directors. 

"  That  the  court  of  directors  be  authorised  to  fi 
vacancies  in  their  number,  subject  to  confirmation 
the  next  ensuing  ordinary  or  half-yearly  general  ni 

'*  That  for  the  purpose  of  effecting  the  proposed 
directors  be  authorised  to  apply  for  and  accept  a  si 
to  adopt  a  supplemental  deed  of  settlement,  or, 
her  Majesty's  Treasury,  to  take  such  other  stepi 


SOUTH  AFRICAN  MORTGAGE  AND  IN\T:i 

The  report  of  the  directors  of  the  South  African 
ment  Company,  Limited,  issued  preparatory  to 
meeting  on  the  30th  May,  states  that  the  results  c 
colonies  of  the  Cape  of  Good  Hope  and  Natjd  for  tl 
now  received,  and  the  accounts  duly  audited,  the  di 
opportunity  of  submitting  to  the  shareholders  the 
and  loss  account  for  the  year  ended  31st  Deceml 
will  seem  that,  after  deducting  rebate  of  interest  (j 
the  net  profits,  including  xjremium  of  £1  per 
amounted  to  £12,302.  The  directors  recommen 
applied  as  follows  : — To  dividend  already  paid  fc 
of  June,  1864,  £2,219.  9^. ;  to  a^lditional  dividend 
at  the  rate  of  6  per  cent,  per  annum  on  the  respec 
former  amoimt  paid,  at  the  rate  of  7  per  cent,  pel 
year,  £2,182.  Us.  Sd. ;  to  reserve  fund,  £6,500 ; 
naiy  expenses  and  furniture  account,  £180  ;  new ; 
ment  of  income-tax  and  remuneration  of  ( 
£1,220.  13a.  2d. ;  making  a  total  of  £12,302.  IGa.  : 


BANK  OF  VICTORIA. 


The  half-yearly  meeting  of  the  proprietors  of  tl 
held  at  the  head  office,  Collins  Street,  Melbourne, 
Hon.  H.  Miller,  M.L.C.,  chairman  of  the  board  of  < 
report  showed  that  the  net  i^rofits  for  the  half-yea 
ber  last,  after  providing  for  bad  and  doubtful  debts 
and  there  was  a  balance  of  undivided  profits  on  tl 
ing  to  £7,200.  5^.,  making  the  total  profits  av{ 
The  directors  recommended  that  a  dividend  of  tw 
should  be  declared,  being  of  opinion  that  this  inc 
by  the  profits  made  during  the  half-year.  Tb 
absorbed  by  the  pro])osed  dividend  was  £31,250; 
was  reconmi ended  that  £5,000  should  be  carrier 
credit  account ;  leaving  a  balance  of  £8,154.  2s.  1( 
divided  profits.  The  reserve  fimd,  it  appeared,  wa 
was  adopted  on  the  motion  of  Dr.  Farrago,  second 
M.L.C. ;  and  thanks  were  accorded  to  the  dir 
during  the  half-year.     This  concluded  the  businet 


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7S1 


THE  IMPERIAL  OTTOMAN  LOAN. 

■otpectus  of  the  Imperial  Ottomtm  Five  per  Cent,  Loan, 
ws  of  17-20,  18-30,  aud  11*  31  March,  1865,  vaa  circu^ 
May.  It  will  bo  percoive^i  it  Htates  clearly  and  wncisely 
hich  the  operation  is  to  take  place.  The  auioittxt  is  not 
tie  suhscriptioiw  are  opened  througiiout  the  money  miirkets 
re  is  cTery  reaiwn  to  anticipate  that  it  will  be  readily 
jation  of  a  Five  p«r  Cent,  Stock  on  snch  a  basis.  wit!i  ji  1 
ag  fimcl^  will  give  it  currency  in  England,  France,  and 

1  capital  i8  4,000,(XK)  medjidies  dVir,  or  £3,fi36,34>3  sterling, 
L'er  of  dL'lOO  sterling,  ctiual  to  tlO  gold  mcdjidies*,  efpial  to 
iO  Hterling  equal  trtD  55  gold  medjidiea,  CM|ual  to  1,250  francs  ; 
wal  k)  11  gold  niedjwliea,  equal  to  250  fraucs,  with  interest 
^er  anniiin,  payahlo  half-yearly,  on  1-13  July,  and  U13 
liug  in  Loudon,  francs  in  Paris,  Frankfort,  aud  Amsterdam, 
*or  in  Coustantiuoplo.  Redeemable  in  37  years  by  1  per 
md  applied  in  purcluiRe.  The  first  law  creates  a  *  Grand 
ette  Generale  de  rEmpire  Ottoman'  guaranteed  hy  the 
8  of  the  empire.  The  second  law  authorises  the  inscription 
,  Livre*  of  40,000,000  medjidies  d'or,  tf3  he  applied  aa 
the  conversion  of  the  existing  internal  debfci,  20,000,000 ; 
loan,  4,000,000;  reaervo,  specially  destined  for  public 
3  isssued  sooner  than  2,000,000,  one  year  after  the  preaent 
I  at  the  soonest  after  two  years ;  and  2,000,000  at  soonest 
rs— 7,000,00<> ;  40,000,000  or  ^0,363,363.  The  laws  pro- 
'thcr  inscription  of  debt  is  to  take  phioe  unless  by  a  8t>«cial 
'  '  lud  after  provision  has  been  previously  made  for  the 
fund  of  any  such  new  inscription  by  sufficient  increase 
nimiion  of  exx)enditure, 

I  debt  inacrihod  in  the  *  Grand  Livre  *  is  guarimteed  by  the 
hy  the  general  revenue  of  the  empire  actually  free ;  and 
IS  previously  charged,  aa  they  beoonie  disjiosable  by  the 
the  existing  foreign  debts,  of  which  they  constitute  the 
Be.     The  tliird  law  provides  for  the  oouversion  of  the  ex* 
debts,  the  djusolidt's  being  converted  at  the  rate  of  £110 
New  Five  per  Cent.  Stock  for  each  £100  Turkish,  and  the 
f  internal  debt  on  terms,  the  full  particular«  of  which 
ce<l  in  a  few  days,  when  the  neceasary  certificates  of  cou- 
ld y*     The  price  of  issue  for  each  bond  of  £100  sterling 
St  from  1-13  January,  1805),  is  jmyable  as  follows  : — £5  on 
nn  ttllotmeut,  £10  on  the  13th  of  June,  £15  on  the  IStii 
[>ou,  £10on  the  13th  of  September,  £5  on  the  13th 
;  £50.     The  coupon  of  2 J  per  cent.,  due  13th  of  July, 
lie  price  of  the  bond  to  47i,  aud  subscribers  will  hav<^  the 
\^  tlietr  instaliiieuta  under  discount  at  the  rate  of  6  per 
'i  the  days  fixed  for  the  payment  of  tlie  inslal- 
due  payment  of  the  respective  instalments,  all 
u  be  liable  to  forfeiture, 

scrip  certificates  in  sterling  money  will  be  issued  to 

^    rv    'it  Company,  for  the  portion  of  the  loan  sub- 

M  foreign  agencies  for  the  amount  subscribed 

U.V.     i^i.  <.v^*j  ..mental  scrip  certificates  will  not  be  uniform 

3d  in  England  until  after  payment  of  the  final  inst&Uueiit, 


782  ^A^  Locli  Out. 

when  they  will  be  exchanged  for  definitive  bonds 
according  to  law  in  Turkish.  French,  and  Englisl 
be  eflfected  at  the  contractor's  office,  Constantinop 
Finance  Company  of  London  (Limited),  London  ; 
Banque  de  Credit  et  de  Depot  des  Pays  Bas,  Amst 
of  Austria,  Vienna;  Von  Erlanger  and  Sons, 
Credit  Genevois,  Geneva.  The  subscription  for  X 
at — London  :  General  Credit  and  Finance  Compai 
7,  Lothbury.  Constantinople :  The  Contractor's 
Erlanger  and  Co.  Amsterdam  :  Banque  de  Ci 
Pays  Bas.    Frankfort ;  Von  Erlanger  and  Sons." 


TENDERS  FOR  BILLS  ON  I 

The  biddings  for  bills  on  India,  which  were  offe 
of  £300,000,  took  place  on  the  3rd  of  May  at  the 
only  £44,500  was  taken,  being  to  Calcutta  i 
£12,000.  The  minimum  price  was,  as  before,  oi 
Ifi.  lid.,  and  on  Bombay  Is.  ll^d.  Tenders  on  < 
the  minimum  received  in  full ;  on  Bombay  all  the 
minimum.  Further  biddings  for  30,00,000  rs.  in 
on  the  17th  May.  The  proportions  allotted  were,t< 
and  to  Bombay,  5,50,000  rs.  The  minimum  pric 
on  Calcutta  and  Madras,  and  1«.  lOfrf.  on  Bombay 
cutta  and  Bombay  at  and  above  1«.  lOJrf.  received 
tenders  on  Madras. 


Ilebieto. 


THE  LOCK  OUT, 

Contidcraiioiiu  on  the  recent  Siruggh  heticeen  Ca\ 
North.  By  Benjamin  Hakdwick,  F.R.G.I 
Royal  Exchange. 

Mr.  Hardwick  has  produced  this  pamphlet  at  a  ' 
Now  that  the  late  disastrous  strike  in  the  North 
satisfactory  a  termination,  these  papers  will  not 
terest  by  every  political  economist,  but  they  may 
by  all  classes— employers  and  employed — partici 
trades  in  which  the  iron  rule  of  trades  unions  pc 
Hardwick  calmly  reviews  the  subjects  which  g 
strikes,  and  particularly  the  question  of  supply  a 
he  says — "  There  is  a  jwint  below  which  wages  car 
amoimt  U|x>a  which  the  labourer  can,  with 
live.  When  wages  fall  to  this  point  great 
marriages  take  place;  by  reason  of  the  i 
children  die ;  and  so  the  labouring  class 
in  aumbers  until  the  proper  proportion  betw( 
is  re-established.  All  these  elements  of  de 
operation  the  nearer  the  rate  approaches  the 
wages,  so  that  except  in  very  rare  instances  wages 
low  an  ebb,  because,  as  they  approach  it,  they  ind 
On  population,  which  gradually  restore  the  balan 
labonr.'*    Mr.  Hardwick  having  fairly  contrasted 


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Estates  of  Failed  Finns.  78u 

BS  as  wgarda  the  employer,  condudee  by  Bubmitting 
>r  the  preTention  of  such  unfortunate  catastrophes 
place.  That  a  central  emigration  society  Rhall  ba 
I  representing  every  cIrpii  of  labour.  That  every 
TO  rata  subscribe  to  such  society.  That  every  caw 
oters  and  workmen  shall  be  laid  before  this  council, 
,d  that  the  depressed  rate  of  wages  approaches  to 
e«  necessary  "or  «  minimum  "  rate,  that  »  grant 
J  society  shall  be  made  to  assist  such  a  number  c* 
as  shall  restore  the  balance  between  capital  and 
alar  trade,  and  so  again  raise  the  rate  of  wages, 
feasible,  there  can  be  no  doubt,  but  we  think  the 
Y  likely  to  arise  when  the  pinch  comeB,-"who 


states  d  iixdtt  jFkms. 

F  MESSRS.  BUCHANAN,  HAMILTON  &  Co. 
g  en  the  2Gth  April,  in  London  of  the  creditors  of 
fmilton  and  Co.,  of  Glasgow.  This  was  the  failure 
irprisea  few  days  previous  owing  to  the  position  of  the 
tions  abroad  are  Mewrs.  Jarvie,  Thorbum  and  Co., 
[essTS.  Hamilton,  Gray  and  Co  of  Singapore.  The 
ras  submitted  by  Mr.  WilHan.  Anderson  accountant, 
debts  and  liabUities,  f  752,588,  and  assets,  f  ^2  06«k 
s  is  the  surplus  of  £17,000  from  the  separate  estate 
,  Eoyal  Bank  of  Scotland  are  creditors  for  £oO  000, 
ired  At  the  conclusion  of  the  proceedings  Mr.  ^Yi^'.^'J" 
un-av  Son  and  Hutchins,  and  Mr.  Fleming,  of  Glas- 
'requfsiteeaplanations  respecting  the  estate  7^^; 
efTect  that  the  meeting  be  ad  oumed  until  Monday,  the 
two  o'clock,  to  allow  of  accounts  being  received  from 
ZV-  mcMiwhile.  the  business  is  to  be  earned  ou 
Kr  SeMay.of  Messrs.  May,  Matheson  .md 
Si^lConnol,of'^Glasgow,  andMr.  Ander«.n  the 

derstood  that  the  banks  and  the  other  creditors  in  the 
fn^tTsend  their  bill,  abroad  or  take  Proceedings 
ment,  and  any  payment,  made  are  to  ^  wKh^e 
»ctors  It  appears  to  be  imagined  that  if,  by  »•!«  ^" 
af  ^  enabkd^  make  a  reasonable  offer  of  composi- 
xably  entertained. 


TE  OF  MESSES.  CHARLES  JOYCE  &  CO. 


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(84 


Communications. 


The  total  liabilities  were  originally  £1,340,000, 
run  otf,  and  now  only  represent  £312,029.  Tt 
are  placed  at  £121,093.  It  rem  li  113  to  be  se 
dation  will  prove  favourable.  Tbe  undirwrit 
Joyce  and  Frederick  George  Westmorland  exhibit 
£8,461 ,  and  assets  £10,025.  After  some  dis^cussioi 
the  meeting,  proposing  the  winding-up  of  the  esta 
of  three  creditors,  the  terms  of  which  were  to  be  < 
interested. 


ATTWOODS,  SPOONER,  AND  IVIARSHAL] 

The  shareholders  of  the  Birmingham  Joint  St 
ordinary  general  meeting  held  on  the  9th  of  Ms 
resolution  passed  by  them  on  the  20th  of  Apri 
resolution  was  an  expression  of  the  shareholders'  1 
the  directors  to  pay  the  creditors  of  Attwoods,  8p 
dividend  of  lis.  3d.  in  the  pound.  The  resolution 
— "  That  this  meeting  approves  the  offer  made 
company  for  the  purchase  of  the  estate  and  efl 
(surviving  partner  of  Richard  Spooner,  Henry 
Aurelus  Attwood,  late  of  Birmingham,  bankers  ai 
rupt,  dated  the  29th  day  of  March  last,  and  he] 
directors  to  do  and  to  execute  all  such  acts  and  de 
same  into  effect,  or  to  alter,  vary,  or  annul  all  oi 
stipulations  therein  contained  as  they  may  considt 
so  far  as  necessary  for  the  purposes  aforesaid,  to 
or  agreements  with  the  representatives  of  the  d( 
carry  the  same  into  effect.'^ 


CommuntratioiTS. 


To  the  Editor  of  the  "  Bankers*  Mc 

ENDORSED  CHEQUE 

Sir, — Will  you  kindly  answer  this  question  ? 

Supposing  a  person  draws  a  cheque  in  favour 

gives  it  to  him  in  payment  of  a  debt,  and  the  cl 

payee,  is  the  endorseuient  a  sufficient  and  legal  rec 

give  a  stamped  receipt  for  the  amount  of  cheque  ? 

We  are,  sir. 

Your  obec 

27  th  May,  1865. 

[It  is  usual  to  accept  the  endorsement  as  a  recei 


BANKING  QUERIES. 


Sir, — ^Will  you  kindly  answer  the  following  qu€ 
bar  of  the  «  Bankers'  Magazine  ? " 


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Monthly  Chronology. 


785 


hat  is  the  difference  between  a  bill  payable  at  sight  and  a  bill 
on  demand  ? 

ill  the  former,  after  circulation  abroad,  be  liable  to  foreign  stamp  ? 
IS  a  bill  payable  at  sight  the  usual  three  days  of  grace  ? 

Yours  respecf ully, 

Constant  Kkadbb.   . 
hester,  May  23rd,  1865. 

L.  A  bill  XMiyable  at  sight  can  seek  three  day's  grace ;  a  bill  pay^ 

demand  must  be  met  when  presented. 

.  It  will  require  the  ad  valorem  stamp. 

.  A  bill  payable  at  sight  has  three  days'  grace.] 


MONTHLY  CHRONOLOGY. 


\. — Suspension  announced  of  Messrs.  Marshall  and  Sons,  spinners, 
port,  with  liabilities  reaching  to  between  £800,000  and  £1,000,000. 
eting  of  the  creditors,  it  was  agreed  to  accept  a  composition  of 
in  the  pound. 

le  directors  of  the  Bank  of  England  raised  the  rate  of  discount 
:>  4^  per  cent. 

oppage  announced  of  Messrs.  WoUheim  and  Co.,  merchants,  of 
ria. 

iuspension  announced  of  Messrs.  Thomson,  How,  and  Co.,  of  Syd- 
k  and  station  agents,  with  £90,000  liabilities, 
ospension  of  Messrs.  Byramjee  Cama  and  Son,  of  London  and  Liver- 
L  Messrs.  Byramjee  Hormusjee  Cama,  of  Bombay,  merchants,  with 
i  to  the  extent  of  £3,000,000. 

failures  announced  of  Messrs.  Lindsay  and  Co.,  merchants,  of 
L 

stoppage  announced  of  Messrs.  Wilson,  Bitchie,  and  Co.,  of  Ceylon, 
ts. 

lie  directors  of  the  Bank  of  England  reduced  their  rate  of  dis- 
>m  4^  to  4  per  cent. 

tuspension  of  Messrs.  Rimington,  Cartwright,  and  Co.,  of  London, 
iian  trade,  and  agents  for  Messrs.  Leckie  and  Co.,  of  Bombay,  with 
)  liabilities. 

stoppage  of  Mr.  William  Duthie,  of  London,  engaged  in  the  trade 
Cape  of  Good  Hope. 

uspension  of  Messrs.  Dirom,  Davidson,  and  Co.,  of  Liverpool,  in 
India  trade,  with  liabilities  to  between  £120,000  and  £160,000. 
Itoppage  announced  of  Messrs.  Braginton,  Rimington,  and  Co., 
bankers,  of  Torrington,  Devon,  with  debts  and  liabilities  of  about 
).  Also  the  suspension  of  Messrs.  Cunliffe,  Pigott,  and  Co.,  of 
m ;  and  of  Messrs.  C.  and  H.  M.  Brazil,  and  Co.,  of  Horwich 
rley,  both  manufacturers, 
he  rate  of  interest  on  Exchequer  Bills  reduced  firom  4  to  3  per 

Qtelligence  received  from  America  of  the  capture  of  Mr.  Jefferson 
ite   Ihresident  of   the  Confederate  States  by  the  troops  of  the 

itoppoffe  of  Messrs.  Woodhouse,  Kerrick,  and  Co.,  of  Abchurch 
ns,  in  Uie  East  Indian  trade,  with  liabilities  estimated  at  £160,U00» 


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Bmnk  IforememU^ 


BAXKIN'G  OBITUARY 

On  tke  24th  Apnl,  M  Cctar-fA«i,  ne^RlkayiMltT, 
the  m^(pMrrLzeskioT  the  ootiatj  of  Radnor,  and  late 
in  the  73itl  T«ar  of  h^  age. 

On  the  2'Jth  April,  at  Clarence,  Roehampton,  V 
lUq.,  of  Threxuineedie  Street,  banker,  in  hL*  t>4th  y 

On  the  8ch  >L\v,  at  Eastbourne,  ilr.  William  E 
years  manager  of  the  branch  Leiwes  Old  B^knk. 

On  the  7'th  May,  at  340,  Old  Kent  Road,  Mr.  E 
of  the  Bank  of  England,  aged  00. 


MERCANTILE  SUSPENSK 

Trts    P!k<pexisk}n9  aimoazKed  (huing  the   Boath 

krwTRfr  : — 

3Iessrs.  ^farshall  and  Sons,  Stockxx>rt,  spinnei 
Mf^srs*.  WollheiiH  Tm<i  Co.,  Alexii»«iriA,  merc^ 
Messrs.  Thomson,  How,  ant  I  Co.,  Sydney,  stoc 
Messrs.  Byramjee  C^ma  dr  Son,  Loiuion  and  L 
Messrs.  Byramjee  Hormusjee  Cama,  Bombay, 
3Ies»re.  Lin«isay  and  Co.,  Slian'^hai,  merchant 
Messrs.  Wilson,  Kitcbie,  a»d  Co.,  C«yk)n,  mci 
Messrs.  Rimmcfton,  Cartwright,  and  Co.,  Lon 
Mr.  WilIi!«H  ihitbie,  LofHioB,  Cape  of  CKkkI  ; 
Messrs.  Dirom,  Da vi 'is on,  and  Co.,  LiTerpool,  ] 
Messrs.  Brai^nto«,  Rimingion,  soul  Co.,  Torr 
Messrs.  Conliffe,  Pigott,  and  Co.,  near  Blackbu 
Messrs.  C.  and  H.  M.  Brazil  and  Co.,  Horwioh 

turers. 
Messrs.  Woodhoose,  Kerrick,  an  J  Co.,  lioni^km 


BANK  M0>T:MENT3- 


The  followinpc  gentlemen  hive  agreed  to  join  the 
Financial  Associathm,  Limited : — .Mr.  Frcienck  Harr 
don  and  County  Bank  ;  Mr.  F.  B.  Henshaw,  director 
Mr.  J.  Harrc>'' Lewis,  M.P.,  director  of  the  National  i 
of  the  firm  of  Burrows  and  Robarts,  C*^ra  £xcbaiig«. 


Mr.  William  Ilaughtoa,  chairman  of  the  Great  Sou 
way  Company  of  Irc^a'ul,  and  Mr.  Henry  Shaw,  of 
f^haw,   and  Co.,  of  Dublin,  have  joined  the  board  o 


Bank  of  Ireland. 


At  an  extraordinary  meeting  of  the  proprietors  of 
Mr.  William  Brown  waa  elected  a  Erector,  in  th«  k 
Henderson,  Esc^.,  deceased. 

It  ia  annoixncol  tTiat  Mr.  Enresfe  Serd  ha«f  from  i 
reai^  his  apporntrmmr  as  Lmtdtm  mmasgerof  fb*  liriti 
ijig  Company,  Limited, 


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rw 


Pol««  of  Ifee  Pontfe. 


W.  G.  Prescott. — It  is  with  preat  rep^t  we  hare  to  mention 
icide,  on  the  29th  April,  of  Mr.  W.  G.  Prescott,  the  head  of 
rs.  Prescott,  Grote,  and  Co.  Tlie  deceased  gentleman  was 
and  was  deservedly  respecte:!  throughout  banking  and  com- 
t  is  stated  that  he  had  l)eun  in  failing  health  for  some  months, 
L  not  attend  to  basiness,  in  which  he  formerly  took  an  active 

rHB  LATE  Mr  William  Gkoroe  Prijscott. — ^Tha  will,  with 
ko  late  Mr.  William  George  Prescott,  the  banker,  of  Clareaoe^ 
rey,  and  of  Threadnee(Ue  Street,  has  been  proved,  and  the 

sworn  under  £205,000.  The  executors  and  trustees  ar«  the 
I,  Mr.  Charles  Cave  and  Mr.  Joseph  Grote,  his  brotber-in-Uw, 
er  Wolstenholme,  barrister-at-law,  and  his  cousin  and  oartiier, 
:w  Protcott.  The  testator  leaves  his  mansion,  called  Ulareneo 
s  farniturc,  plate ,  linen,  books,  carriages,  and  hof see,  to  his 
ves  to  Mrs.  Pre^ott  an  immediate  legacy  of  £5,000.  To  his 
^  the  wife  of  C:iptain  Richard  Decie,  of  the  Royal  Emgiiieors, 
s  a  logacy  of  £5,000.  He  also  leaves  the  folWwing  legacies; 
his  four  executors  £250,  free  of  duty ;  to  his  cousin  and  |H^rtaer» 
IT  Prescott,  £200,  free  of  'luty ;'  to  the  said  Captain  Decia 
duty.  There  are  also  legacies  of  £200  each,  free  of  dttly»  to 
tho  testator;  also  to  two  sisters  and  to  a  brother-in-law. 
is  the  annual  income  resulting  from  the  sum  of  £35,000  to 

to  whom  he  g^ves  a  power  of  appointment  over  such  £:i5,0(»0 
hildreu,  and  in  case  of  default  of  such  appointment  the  tista- 
m  for  them.  Subject  to  all  the  foregoing  bequests,  the  residue 
ft  to  Mra.  Prescott  for  her  abaolute  osq. 


RADK  OF  THE  UNITED  KINGDOM. 

n^  T«tams  for  the  month  and  three  months  ended  tiitt 
tBsned  on  the  29th  April,  and  may  be  regarded  on  th« 
bLe,  although  there  are  no  changes  calling  for  any  special 
»tal  declared  value  of  exports  for  the  month  last  pest  was 
nst  £13^5,674  in  1864,  and  £10,2l7,47a  ia  1863,  which 
er  the  former  period  of  £214,480,  and  over  the  latter  cf 
\T  the  three  months  of  the  present  year  the  total  waa 
1864  it  was  £36,667,381,  and  in  1863  £27,561,204,  which 
of  £1,031,674  as  compared  with  1864,  but  an  increase  «l 
[itrasted  with  1863.  The  most  important  vadations  exhL- 
»eot  returns  are,  as  respects  exports,  an  increase  in  the 
bear  M)d  ale,  ooak  and  culm,  cotton  manufaoiwee,  eartitea 
bod  cnldery,  linen  manufactures,  machinery  and  seed  cil, 
3qMkton  yarn,  haberdashery  and  millinery.  Unen  yam,  me- 
siSc  manufactures,  woollen  and  worsted  yarns,  and  wo^an 
Km  Fegarch  impoirts^  an  increase  is  i^own  in  raw  cotton^ 
des,.  taBew,  weol,  cocoa,  coffee,  spirits,  sugar,  and  tobacco. 
\A^  thiBT^  hai  bWT*  f  /f^^iti^  ^n  fl^y^  ]yifKaf  maimfartngea^ 
ped,  raw  silk,  woollen  manufactures,  tea,  and  wine.  With 
f  there  has  been  an  increase  in  the  importation  of  barley 


-:i" 


i: 


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Hi«i  "iv'iir.  ui«i  %  -ii^ut  it?cr*::te*e  Ji  >^aiL«w  In  the  < 
.s^Afi*?  J*  4a»"W^  -u  JUT't'r.  raers*?.  «?5-r**  »n*i  lard 
lau  a»un2«w  Mi'i  '^i*"    >*^    *^'-   >'rs.     Tj.e    aan:-: 


-     tons     1 

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Digiti 


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lonctarg  ^vddlxQtntt. 


MLY  REVIEW  FOR  THE  MONTH  OF  MAY. 

ot  financial  and  commercial  affairs  this  month  has  not 
*aging.  The  tendency  at  one  period  in  the  money  market 
d  presAure,  and  the  rate  of  discount  was  temporarily 
equently,  a  reaction  took  place  in  the  demand,  and  there 
tion  to  the  old  rate  of  4  per  cent.,  at  which  the  official 
ands.  It  would  not  create  surprise,  the  accumulation  of 
nk  being  so  rapid,  if  it  should  be  necessary  for  the  directors 
»wer  the  rate  of  discount  in  the  course  of  the  next  week  or 
e  late  failures  in  India,  China,  and  Australia  have  created 
out  millions  of  paper  now  having  been  cleared  from 
)  must  consequently  be  a  diminished  inquiry  for  general 

The  few  suspensions  that  have  occurred  at  home  have 
by  the  effects  of  what  has  ensued  abroad,  and  it  is  highly 
dogue  will  be  increased  in  the  course  of  a  month.  The 
n  the  Continent  will,  there  is  every  reason  to  expect, 
before  the  end  of  June ;  the  prospects  of  the  harvest  and 
gs  in  general  producing  a  favourable  feeling.  The  opera- 
Exchange  have  been  surfeited  with  new  companies,  the 
f  in  many  cases,  stand  at  a  very  heavy  discount, 
ns  in  Consols  have  been  to  the  extent  of  about  1  per  cent. ; 
of  the  month  there  was  considerable  depression,  chiefly 
satisfactory  nature  of  the  news  from  America,  and  the  fears 
regard  to  various  houses  connected  with  trade  in  the  East, 
jwever,  of  money  becoming  cheaper,  with  an  easier  state  of 
:et,  subsequently  produced  a  more  favourable  impression, 
oment  the  price  of  Consols  waa  the  highest  touched  during 
3  reduction  in  the  rate  of  discount  and  the  satisfactory 
ik  returns,  have  undoubtedly  had  a  beneficial  effect  on  the 
ere   appears   every  prospect  of  a    further  improvement. 

have  exhibited  remarkable  steadiness,  and  the  official 
1  that  for  the  next  half-year  the  interest  will  be  reduced 
»nt.,  has  not  had  at  present  any  eflect  upon  prices. 
'L?i  the  eliief  u^it- i  atioiiB  liave  been  in  Spanish,  Mexican,  and 
ry  TJiucertain  statt!  in  which  the  foreign  creditors  of  Spain 
tgariled  witli  nitich  auxit'ty ;  but,  nevertheless,  there  are  yet 
d  that  tho  present  government  of  that  country  will  even- 
with  the  ortiihtors,  hence  the  issue  of  their  stocks  continues 
uned.  Mexiciui  liik$  fluctuated  rather  more  than  any  other 
nsequence  of  the  threatening  aspect  of  affairs  with  regard 
bowardij  the  close  a  KiJint^what  better  feeling  has  prevailed, 
ictuatetl  but  little  in  jn  ico,  but  on  the  whole  the  appear- 
be  Confeileratij  Cotton  Loan  has  for  the  last  month  been 
mg,  and  is  now  at  the  lowest  point  yet  touched, 
es  have  fiuctnated  in  about  the  same  ratio  as  the  other 
1  the  variaiinnH  have  not  been  so  great  as  during  some  of 
uthfl.  The  traffic  receipts  continuing  to  contrast  favour- 
[irresponding  period  of  last  year,  has  tended  to  add  to  the 
aarket,  which  doses  with  firmness,  and  with  a  tendency  to 
neot. 

T  joint  stock  bank  shares  has  shown  less  buoyancy  than 

62 


M 


"«■ 


Digitized  b) 


700  Notices  to  Corresponded 

for  some  time  past,  the  dealings  have  lacked  th 
long  prevailed  in  this  department,  and  in  moat 
clined.  Credit  and  finance  shares  are  also  rath 
rather  more  steadiness. 


THE  GRAIN  TRADI 

There  has  been  a  rather  more  active  busine 
trade  thfui  for  some  weeks  past,  and  the  price 
had  an  upward  tendency.  Other  descriptions 
manded  firmer  rates.  The  supplies,  all  sorts, 
and  the  importations  of  all  kinds  larger  than  f( 
for  which  there  is  no  doubt  prices  would  have 
vance.  The  1  atest  official  average  quotations  wer 
Barley  29«.  dd.  per  qr.,  and  OatB  22«.  9d.  per  qr 
The  Gazette  returns  for  England  and  Wales  1 

Week  WTient.  Weekly 

ending",  Qrs.  sold.  Averag^o. 

L%o,  «.    d. 

April  29  62,756       ...         39    5 

May      6  84,806       ...         39  10 

„       13  74,649       ...        40  11 

„       20  8S,015       ...         41    8 

The  importations  since  the  harvest  of  1864  hj 

Wheat. 
Cwts. 

Forty  weeks  ended  22nd  April  ...     11,797,^ 

Four  weeks  ended  20th  May  ...       2,057,4 


13,855,3 
And  the  weekly  averages  have  been : — 

Forty  weeks  ended  22nd  April 295,( 

Four  weeks  ended  20th  May 614,1 

More    2]9,( 


STATE  OF  TRADE 

A  FAIR  extent  of  business  is  transacting  in  t 
districts  j   there  is  every  api^earance  of  trade  mi 


NOTICES  TO  CORRESPOl 

We  have  arransred  in  ftitiire  to  issue  a  double  number  in 
formerly  in  May  and  Novemljer.  This  has  been  reudei'eti  i 
the  Meetings  of  the  Banks  and  Discount  Companies,  wliich 
in  the  pages  of  the  Jitntkcra*  Magazine,  Wo  shall  alno  jfi 
Credit  and  P^inanco  Comi)aniea  as  they  are  more  or  It 
that  our  subscribers  and  readers  caa  refer  to  them  witJ 
will  please  forward  communications  ad-iresaed  to  the  Ed 
Bcriptions  and  orders  as  usual  to  Messrs.  Groom bridpe 
Messrs.  Waterlow  and  Sons,  CoriJentcrs  Hall  London  Wal 

Banking  a.xd  Finaxcial  Ajtmcdotes. — It  will  be  |K'rceivc 
Editor  of  the  Baukcrti'  Muyazine  is  collecting  and  amuiging 
cial  Anecdotes.    Any  conLvilmtions  from  hubscribcrs  and 
thankfully  received,  particularly  if  the  subject-matter  shall 
print.     Nothing:  personal  or  otlcnsive  will  receive  publicity 

The  receipt  of  further  anecdotes  is  gratofully  acknowiedf 

Two  or  throe  commauicatiouA  BtiU  stand  over. 


Digiti 


ized  by  Google 


791 
BANK  OF  FRANCE. 

DEBTOR. 


April  37. 

May  4. 

May  11. 

M»yl8 

May  26. 

Bank  ... 
ition  to 

.^•^^ 
J7)       ... 

e  Bank 

ihes     ... 

iedpro- 

ition  Z 

order 

payable 

rnft  cur- 

ts,PaxiB 

We     ... 
rapdiy 

tihelaat 

w.          c. 
182,500,000    0 

7,048,446  40 

88,106,760  14 

4,000,000    0 
806,818,276    0 

6,668,403  37 

01,820.062  81 

12K866.658  70 

26,250.117    0 

030,176  76 

0,877,470  30 

2.780.444    6 
11.085,461  60 

1,300,672,256  12 

».              C. 

182,600,000    0 

7,043,700  16 

28.106.760  14 

4.000.000    0 
81i,077,976    0 

7,390,414  13 

87.243.761  72 
141,051,028  78 

31,318,604    0 
881,004  76 

10,631,014  67 

2.780,444    6 
16,063,008  06 

w,        c. 
182,600,000    0 

7,043,831  91 

88,105,750  14 

4.000,000    0 
817,660,876    0 

8,604,704  87 

87,846,862  44 

137,402,764  81 

30,810.900    0 

833,214  76 

10,066,310  65 

2.780.444    6 
12,640,316  22 

V.            c. 

7,043.871  81 

22,106,750  14 

4,000,000    0 
807,078,225    0 

7,174,100  66 

88.366,007  46 

147,165.904  37 

31,248,113    0 

768,530  75 

11,204,474    6 

2,780,444    6 
11.807.177    4 

w.          c, 
182,600,000    0 

7,043,871  81 

88,106,750  14 

4,000,000    0 
803,248,375    0 

7,146,273  86 

87,733,600  05 

154,049,411  77 

•29,440,990    0 

726,144  76 

11,600,947  13 

2,780,444    6 
11,776,495  35 



1,324,538,625  38 

1,326,201,082  74 

1,323,833,787  21 

1,824,160,213  80 

OBXDITOB. 


April  27. 

May  4. 

May  11. 

M»yl8. 

May  86. 

ndcaah 

9,              C. 

v.          c. 

w.          c. 

w.          c. 

».          0, 

laoTer- 

448,621,703  16 

461,606,200  64 

460,608,007  30 

476,0^,833  76 

486,006,376  41 

lUa  dia^ 

607,078  66 

1,707,486  24 

8,416,467  77 

016,128  61 

8,306,021  13 

depoaita 

ikB      '.'.'. 
I  public 

ch  banks 
r  aharea 

856.663.077    6 
876,241,700    0 

266,410,110  21 
276,026,658    0 

880.687,488  87 
872,866,688    0 

280,181,626  86 
865,388,412    0 

231,423,064  28 
256,680,645    0 

82.000.806  35 
3,702,206    0 

26,223,606  36 
4,860,006    0 

20.466.606  36 
6,066,795    0 

81,727,606  35 
7,036,786    0 

36,686.006  86 
8,286,086    0 

14,667,300    0 
0,006,250    0 

14,785,400    0 
0,363,060    0 

14.207,800    0 
10,841,060    0 

14.707,700    0 
0,087,460    0 

14,803,800    0 
0,843,750    0 

[«a 

ch  banks 
Vonder 

20,633,200    0 
18,186,250    0 

30,022.300    0 
18,406,460    0 

80,231,600    0 
18,701,160    0 

30,011,600    0 
18,036,760    0 

20,082,800    0 
10,062,850    0 

A  {(km- 
10, 1867) 
UKk  r»- 

664,600    0 
363,800    0 

60,000,000    0 

678,300    0 
877,^    0 

60,000,000    0 

620,600    0 
877,700    0 

60,000,000    0 

607.100    0 
388,000    0 

60,000,000    0 

500,000    0 
408,600    0 

60,000,000    0 

»ik]i84es 

12,060.750  14 
86,667,487  01 

18,060,760  14 
36,667.487  01 

12.060,760  14 
86,667,487  01 

12,080,780  14 
86,567,487  01 

12,060,760  14 
36,557,487  01 

J^i^SK! 

^00,600,000    0 

100,000,000    0 

100,000,000    0 

100,000,000    0 

100,000,000    0 

property 
nanage- 

8,480,166    0 

8,480,165    0 

8,480,266    0 

8,600,266    0 

8,497,808    0 

1,263,068  66 
6,213,840  20 

1,488,667  83 
6,588,750  78 

1.480,042  63 
8,260,413  68 

1,464.186  00 
0,407,814  23 

1,467,060  04 
8,565,624  70 

.»       -" 

1,300,671,255   12 

1,884,^,686  88 

1,825,801,062  74 

1,383.833,787  24 

1,324,160,  213  80 

Digitized  by 


Go( 


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Rxn.WAY  SHARES, 


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South  Africai 


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ized  by  Google 


793 


JOINT-STOCK  BANKS. 


I     MftstormAn's, 


uik    of  London 
|K>o1r  limited   ... 
*ue<l  atBiipm. ... 
i{U3  Bank 
tian  (Lioi.) 
ii(Liiii.)  ,. 
jju:  Oorponitlon^ 
Miiaaed  at  £\& 
bich  £7.  lOr.  is 


100 

50 

100 
100 


100 
limiled    KK) 


ion 

JO  (Liniitcd) 
nwAod, 

ilfamieu]]  (Luu.J 
Zeftlimd 
oiriM,  Aixfttrftija 
ortii^ea«(Liin,) 
I  Aznericau     ... 
hok  of   Britiah 

Iftoic   of  'indi^* 
nd  CThiriA 
crcantUe  B&nJc 
)iidoa  Ac  China,, 


3aiii^  of  Canada 
Bank  of  India 

BanJc(Lim.)  ... 


(LiiiL) 

aogo     

Slock  (Tjto.),.. 
ttiah  and  Aua- 
rteredBaok  «.. 
iwedub  (Ltm.) 
)k  (Ltmited)  ... 
una  aad  Jiqiftn, 

sued  at  a  pn. 

>ifed> 


^Bk.of  India 
of  Meiieo  and 


GO 
10 
60 
20 
60 

20 

20 

2B 

100 
lliO 
20 

25 
10 
100 
100 
60 
20 
25 

fa 

50 

60 

100 
100 
100 
100 
80 
ST* 
26 
SO 


25    67 
10    0^ 

30i 
12 

loi 


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40 

40   ea 

a.5  30- 
60  141 
7 
25 

10 
2S 
10 
60 

16 


25 
4 

26 
15 
6 
6 
10 

30 
16 
16 

36 
26 
16 
SO 
10 
25 
6 
4 


n 


21 

4a 

40 
10 


20  231 

21  mi 
6t*  111 
26  42 
20 


m 

21  i 
12 
6! 

4 

e 

20 
12 

17i 

IM 

» 

29 

27 
6 


-V  ^  «.  .-  Londoa 
Shan.  PaM  Utent 
PricM 


50       12i 


Loniltin    Bank   of  Scotland 
(Liin.J  

Loudon  and  BrtkEilian  Bank 

linden,  Birmingham  A  Bth. 
Stururdtthire  ^.imited)  ... 

London,  BaenoB  Ayres  and 
Biver  Plate,  Limited 
Ditto,  New,   iflsaed    at 


100 
100 

100 

100 

25 


13 
40 


22 
40 


London  (Chartered  of  Australia   20 

Lmdon  and  Coonty  Bank  ...  60 
London.     Hamborg,     Cent. 

ExrhimKO  (Lim.) 100 

Lfiwdon  Joint  Stock  B€Uik  ...  60 

LfOndon  &  Bonth  African  Bk.  20 
London  and  South  Western 

(Idmketl)      loo 

Ditio,  ditto.    New 100 

London  and  Veneanela  (Lim. )  60 

London  &  Westminster  Bank  100 

Mcrchftnt  Bank  (Limited)  ...  100 

Moreontite  Exchange  (Lim.)  60 
Ue^tronolitan  and  Provincial 

Bttnlt,  Limited        ...        ,„  100 

Ditto,  New          100 

Midland  Bank  (Limited)    ...  100 

Naticmnl  Bank 60 

DJtt^),  New          60 

National  of  Liverpool  (Lim.)  100 
National  Provincoal  Bank  of 

England       loo 

Ditto,  New          20 

DiUo,  ditto          ...       ...  20 

New  Houth  Wales     20 

Nf  w  ZeaJnnd  Bank  Corpora- 
tion (Limited)        ...        ...  10 

Ditto,    New    10 

North  Wtffltem           20 

Orieatu.1  Bank 26 

Do.  New,  issued  at  20  pm.  25 
Frovincia^    Banking  Corpo- 

ration 50 

Ditto,  ditto 60 

Provincial  Bank  of  Lr«land...  100 

Ditt-j.  New          10 

Scinde,  Pniganb  and  Delhi 

(Linut«dJ      ao       10 

Ditto,ifleqedatapm.          ...  20         2 

South  Auitralian       ...        ...  25       25 

etandard  of  Britiah  AfHca 

(Limited)      loo       25 

Bitto               ditto             ...  100        26 

Do.  New,  issued  at  6  pm.  100       10 

Union  Bank  of  Australia    ...  25       25 

Dnion  Bsnk  of  Ireland,  lim.  100       22 

Union  Bank  of  London      ...  60       15 


20 
15 
20 
30 
25 
10 

42 
12 
12 
20 


6 
44 


13 
48 


10  11^ 
20  24 
20        76 


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301 

18 

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624 


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Bank  of  englanli  Clkrfelj)  J' 

r.-^unl,  pursuant  to  the  A.ct  7th  and  Sth  of  Victoria,  cap.  32,  for  th 
TSSm  PEPARTMENT. 


1           ls<C». 

1    April  2ti. 

Mar  3. 

1 
Ma 

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14,5 

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7,3 

13,7 

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SS.JK=i.922 
inf»H4.441 

&'.■-•:  «.^ '7 

6,i» '2.^15 

39.3 

10.9 

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7,3 

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3^9s5,922 

39,3 

THE  EXCHANGES. 


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11     17 

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11 

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25 

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PRICES  OF  BLTXION. 


r  r-»Tr.  C  *^  in  B&ri  Tta:.'!»r4i 


r. 


Per  Oa. 
£•  s.  d. 
3  17  9 
0  4  Hi 
0    &    c| 


FcrOi. 
i.  s.  d. 
3  17  9 
0  4  Hi 
0    5    CI 


Digitized  by  VjOOQIC 


Per 
£  .- 
3  17 
0  4 
0    6 


^Bankers*  iMtthl]^  Cirnilation  iAtturns* 

\iant  to  the  Act  7  4r  8  Victoria,  c,  32/  extracted  from  the  London  Gazettk. 
PRIVATE    BANKS. 


NAME  OF  BANK. 


Anthor- 
i      \vah\ 


brd  Bank    .....'; 

iXtnvs  Uiil  Hank ' 

uck  and  BiLii^'^leswadt)  Bank  ,.., 

staple  Bank    ..»,.......*„, I 

brd  Bank..,*,,., ...„. , 

;tcraiiil  OxforJsliirt;  Bunk    ,.,j 
an  Bank— CI  ay  pons  and  Co*.. . 
jQ  Bank — Gee  atid  Co.., ...*„.  I 
UcwaUr  Bank,,,.,.*,,.,*......... . 

ol  Bank ; 

Ai£f  mid  Brid^Tjortli  Bank  ,., 
jngham  Biuik..... *....., *,.,,....  | 

diid  Siiirulk  B.ink 

lury  Bank    ....**..........,  i 

lury  Old  Bank    .. ..  I 

ords^itre  Leighton  BuK/4ird  Bk. 
inghani  Bk,— Lloyds  &,  Co.  ,.. , 

moid  Bank , I 

itort  Cniun  Bank   ,.,„.,.., '| 

nt^on  and  DriffidiJ  Batik...... 

St,  Ednimid'&  Bank... 

:)rid|,e  Bk. — Murtlotk  &  Cu.  i 
jridj^eand  Cambridgeshire  Bk. ' 

erbnrj  Bank ,., 

mrtlicn  Bank  .....*..,.,..„. | 

tscj  Bank    ....,.....*..♦.,.. 

lesEer  Bank. ......,»„, i 

lester  and  Essex  Bank.*. 

ish  Bank— Tweedy  h  Co,    .,,  ' 

iitry  Bank  .,.,*.,,,„»* 

Bank,  E.\eter 

en  Bank^Alcocks  &  Co,  ... 
stow  Old  Bank  .,..,,.„.,,„,... 
y  Bank — Meisrs,  Evans  &  Co. 
y  Bank^ — Smith  and  Co,  ...... 

Void  Bank    ,*,. .,.,.. 

zes  and  Wiltsh  ire  Ban  k    

Bank  ,..* ., 

aKtcr  Bank  and  Retford  Bank 

inirion  Bunk   .,.,...,...* , 

rnpon  Bank    „*.,.»« 

tester  Old  Baok    .-,. ...„. 

Cornwall  Bk,— Robins  &  Co.  | 
Riding  Bank^Bower  fit  Co. 
c  Bk.  &  Bishop's  Stortford  Bk. 

cr  Bank ...„,... 

hflim  Bank  , ,,,.4*.,. 

ft  ^i\nk ... 

:  Bank  * 

,  Batik „,„..... 

I    I  III  Ban k — Hard  j  an d  Co, . 
k  Kmjrston-upon-IIull  Bank 
tingdon  Town  &  Couotj  Bank 

vich  Bank 

fur.ishire,Hitchin  Bank    ...... 

kb  Bank ..*,,..,t..* 


£ 

11,849 
48,461 

37,223 
17,182 

34»ii^ 

27,090 

75,069 

15,161 

10,028 

4»,277 

i6,7i7 

29,657 

81,362 

43,457 

55,»53, 

36,8^9 

58,816 

68,27 » 

33,794 

» 1,745 

3,201 

25,744 
49,916 

33,671 

23,597 

3,436 

25,082 

4«,7C4 
49,869 
» 2,045 
21,527 
77,»54 

9,387 
13,332 
4',304 
27,237 
20,674 
10^657 
77,400 
86,218 
10,664 
48,807 
112,280 
53,392 
69,637 
37,^94 
14,202 

6,681 

6,322 
14,524 
30,372 
19,979 
56,59' 

5//78 
38,764 
21,901 


A.VKKAGE 

AMOUNT 

Aprils. 

April  15. 

April  22. 
£ 

April  2d. 

£ 

£ 

£, 

12,033 

11,976 

11,789 

1 1 , 206 

2^,459 

23,60? 

23.458 

23,210 

17,021 

17.846 

•7. 390 

17,124 

4.145 

3.925 

4,086 

3.935 

29,031 

28,791 

29.378 

29,682 

1  15,418 

15,797 

15.055 

15.107 

1  70,450 

69,8.2 

71,884 

74.131 

14,696 

14.437 

13,850 

14,232 

6.708 

7,230 

7,748 

7,632 

21,828 

21,368 

21,002 

20, ;26 

!  15,100 

14,816 

14.952 

14,6^8 

19,202 

19,953 

20,226 

19,438 

,  48,529 

49,061 

47,9:,7 

48,063 

1  25,607 

25,827 

25,702 

25.193 

,  21,649 

21,705 

21,887 

21,786 

33.646 

34,753 

34.372 

33>6o4 

12,338 

15.0^5 

15.423 

i/^jfSo 

1  40,864 

40.575 

39,329 

38,647 

1  22,284 

",384 

21,362 

19.414 

12,204 

12,462 

12,227 

11,992 

1  3,074 

3,052 

3.014 

2,906 

'  13,335 

13,350 

12,835 

12,511 

39.904 

40,130 

40,900 

40.572 

27,703 

28,431 

28,968 

28,864 

12,705 

12,646 

12,674 

12,502 

3, '83 

2,640 

2,774 

2,653 

,  16,443 

17,053 

16,970 

i7.3<'^3 

'  l^^^SS 

30,798 

30,085 

29.755 

28,559 

27,765 

26,444 

27.555 

4,016 

3,966 

3,923 

4,17'* 

'  15.279 

15,267 

15.533 

15,763 

77,670 

76,515 

75,131 

75,895 

1   7,319 

7,155 

7,286 

8.329 

]  10,323 

10,294 

10,782 

11,575 

1  36,998 

36,469 

38, 104 

37.326 

27,595 

28,783 

27,440 

24.134 

6,830 

6,935 

6,940 

6,935 

io,o86 

9,750 

10, 125 

9.995 

65.654 

66,571 

66,477 

67.903 

'  87,035 

86,431 

81,880 

82.740 

6,285 

6,765 

6,578 

6,495 

35.897 

36,647 

36,999 

36,130 

77.951 

78,813 

77,627 

76,550 

50,720 

50,672 

52,837 

53,308 

40,050 

40,211 

39,  S."?© 

38,878 

22,167 

22.150 

21,748 

21,420 

6,110 

5.995 

6,152 

6,o?o 

5.521 

5.834 

5.795 

5.580 

5,571 

6,045 

5.891 

5,6iS 

10,846 

11,345 

10,780 

10,576 

26,345 

27,529 

28,494 

26,987 

22,541 

21,999 

17.750 

17,393 

33.673 

33.925 

33.358 

33,283 

5.945 

5.793 

5.695 

«,,i89 

1  33.842 

35,7>8 

36.317 

35.247 

i  20,161 

19,659 

19.624 

18,944 

Digitized  by 


Goc 


796 


WEEKLY    RETURNS   OV    BAKK8  OF 


NAME  OF  BANK. 


Author- 
ized 
I&£>ue. 


57  Ipswich  &  Needham  Market  Bank 

58  Kentish  Bank — Mercer  &  Co.   ... 

59  Kingtun  and  H^idnorsliire  Bank... 

60  Knareshorough  Old  Bank  

61  Kendal  Bank    

6i  Longtoi  Staffordshire  Bank 

6}  Leeds  Bunk  

04  Leeds  Union  Bank 

65  Leicester  Bank 

66  Lewes  Old  Bank 

67  Lincoln  Bank 

68  Llandovery  Bank&LlandiloBank 

69  Loughhorough  Bank 

70  Lymington  Bank 

7 1  Lynn  liegis and  LincolnshireBank 
'2  Lynn  Kegis  and  Norfolk  Bank 

73  Macclesfield  Bank   

74  Manningtree  Bank  

75  Merionethshire  Bank   

76  Miners'  Bank    

77  Monmouthshire  Agricultural  and 

Commercial  Bunk 

78  Monmouth  Old  Bank 

79  Newark  Bank 

80  Newark  and  Sleat'ord  Bank   ... 

81  Newbury  Bank 

8i  Newmarket  Bank 

83  Norwicli  Crown  Bank  and  Norfolk 

and  Suffolk  Bank 

84.  Norwich  and  Norfolk  Bank   ... 
8<  Noftingham  &Nottingham8h.Bk. 

86  Naval  Bank,  Plymouth  

87  New  Sarum  Bk. — Fin ckneys, Bros. 
HS  Nottingham  Bank 

89  Oswestry  Bank     

90  Oxford  Old  Bank 

9"   Old  Bank,  Tonbridge 

92  Oxfordshire  Witney  Bank 

93  Pease's  Old  Bank,  Hull 

94  Penzance  Bank    

95  Pembrokeshire  Bank 

96  Heading  Bunk — ^:>inionds  &Co.... 

97  Reading  l^k.— Stcphenn.Blandy&Co. 

98  Richmond  Bank,  Yorkshire    

99  Rochdale  Bank    

100  Koyston  Bank 

101  Rugby  Bank 

102  Rye  Bank 

»03  Saffron  Waldcn&NorthEsscxBk. 

104  Salop  Bank  

105  Scarborough  Old  Bank   

106  Shrewsbury  Old  Bank 

107  Sittinebimrne  and  Milton  Bank  . 

108  Southampton  Town  &  County  Bk. 

109  Southwell  Bank   

1 10  Southampton  and  Hampshire  Bk. 

111  StalfordOld  Bank  

112  JStumford  and  Rutland  Bank..... 

1 1 3  Shrewsbury  and  Welsh  Pool  Bank 

H4  Taunton  Bank 

115  Tavistock  Bank  


£ 

80,699 

20,050 
21,825 
44*663 
5,624 
53,357 
57,459 

3*»322 

44.836 
100,342 

32»945 

7,359 

5,038 

42,817 

13,917 

15,760 

7,692 

10,906 

18,688 

29,335 

16,385 
28,788 

36,787 
23,098 

49,671 

105,519 

10,866 

27,321 

» 5,659 
3».047 
18,471 
34,39 » 
13,183 
11,852 
48,807 
11,405 
12,910 

37,5»9 
43.271 

6,889 

5,590 
>  6,393 
17,250 
29.864 
47.646 
22,338 
24,813 
43.»9» 

4,789 
18,589 
14,744 

6,77c 
14,166 
31.858 
25,336 
29,799 
I3,4a» 


Digitized  by  LnOOQlC 


WIEKLY    RETURNS    OF    BANKS    OF     likutr 


S'AiTE  OF  BAJS'K. 


Mtf  Batik , 

Ill  and  Di'vonatiire  Bnnk  ».J 
tone  and  Ketitiriiig  Bank..! 
3;tiik  and  Chi^sljiiiu  BuJik.J 

itr  Old  Biirik i 

ii>nl<,  Coniwali    I 

I  Bank    ,„„ ...I 

i  Bunk I 

k^uU  Warwickshire  Bimk| 

idiri^  Bank ».,J 

Old  Bank 

iter,  AJicpford  &  AltonBk. 

uth  Did  Bank , 

orth  and  Dcrhyfehirc  Bk. 
:U  nnd  Lincoluethirc  Bank 

irumtre  B*iJ»k.... 

ler  Old  Bank  

hfttn.  Bk.— K.  &  W. Fryer 

tthaiid  Suffolk  Bftnk ; 

nh.  Norfolk,  &  Suflblk  Bk. 
lilik    I 


JOINT  STOCK  BANKS 

W^stmorlind  ...., 

Banking  Companj    „.,.. 

I.  ing  Company    

t  Banking  Company 

'       *n*» .., 

(Ill  Banking  Co, 
.^.  ,aiidl5laflordi)bir* 

kinir  Co ,*... 

.  N.Derbysh  Bk,  Co. 

ifjii  Lfnioa  Bunking  Co  .. 

ftUd  Warwirkftlnre  Bk.Co. 

\Jnu>'    "      '       ,' Co  in  pan) 

f  Gl'  iTikin^i  Co. 

''"'  iitikinpCo, 

'i  Bnuk   ... 

irliBk.Co.i 

1  Uysiiiru  Bunking  Co 

.f,'jfo„(S(ockBk\Co. 

'  Company 


Author, 
teed 
leeue. 

1 

AVERAGE  AMOtJNT* 

Apms. 

April  15. 
£ 

April  22.     Apra  29. 

£ 

£ 

£ 

£ 

10,026 

8,610 

9»ioS 

9,199 

9,547 

nAJo 

9.97^ 

9i747 

9,998 

10, 900 

»W559 

12, JOO 

i«,950 

iJ.lly 

io,8co 

«3»53> 

*if J57 

1X.405 

12,517 

13,090 

10,80 ) 

6.533 

6,718 

6,484 

6r430 

17,003 

i*;,C«3 

>5f >58 

14,5*4 

13,589 

^5.136 

»,S74 

8,4t9 

8,700 

8,690 

»7.oC4       5,754 

6,650 

5*^5^ 

5i779 

30,504      15,321 

18,991 

18,679 

17,988 

6,5i8        1,991 

i,fiiJ9 

i,8io 

1,893 

46,158 

40>§6o 

4*, 896 

43,086 

44,015 

14,258 

14*005 

U1024 

13,810 

13.830 

15,891 

11,105 

io,9fi5 

10,513 

10, 199 

16,461 

15,031 

»4,  740 

»4,455 

16,337 

l7t^oi 

35.52^ 

36,691 

37,180 

37,i5i 

59,713 

37»5»4 

38,896 

38,666 

39»  550 

7,601 

3*30i 

3,169 

3,865 

3>S86 

^7M» 

48. 786 

50.045 

48,913 

48,608 

ll,«67 

6,i56 

6.350 

6,69c 

7,015 

53,06c 

3Q,798 

39.67V 

37.875 

37,19a 

>3,ii9 

B,8^6 

»»739 

8,838 

8»3i6 

46,387 

|8,oS2 

59,701 

41,006 

41.473 

1 1,22  < 

9*563 

49,i9i 

9,41  i» 

32,681 

20,084 


»mpftny.. 

!    !:king  Co... 
iicid  Union  Bk.j 

rnpnny 

t  ClnroBk.  Ca 

Company  

■■■■•  ''-■-:  nny^.J 

Co.J 

'■  _iAvick'' 

Co.  ...„ .,.,^ 

V  Rnnk ' 


60,701 
10,411 
35,39,' 
i**.734 
16,25* 

44,35- 

15/i  lc 

»V/>7i 

i7/>v'' 

ic,09, 

J6,I34 
155,93  c 

»«,534 
37,354 
^9.333 
«3,733 
44-137 
N50j 
28,059 

64,3' » 
86,o6c 
51*620 


12,656 
9,iH 

49.493 
7.9j6 

20,604 


I3,»7f 
ro.iie 

19,477 

I  in>  iiH  un  iiK,  oi  J.,iJL;jami,  442,37( 

BU  Banking  Company  f*l|  63,939 


51*935 
9.887 
3o,r75 
>4»63i 
12,284 

'04,493 
25,119 
20,043 

11.793 
19,464 

14iOI2 

136,626 
1 5 , 640 
3*,8j9 
39.554 
ii,97j 
34,059 
1,516 
26,508 

60,367 
S».69i 

10,736 

8,916 

i9*ov7 

>8,>i6 


11,711 

9*477 
49.670 

8,769 
30,480 
10,562 


54.976 
9.9M 
31,013 
»4, 783 
12,418 

104. lOi 

Mt37f 
19, -co 

24,136 
10.444 

15 » 4^5 
13**. 301 
»5.59» 
33,876 

31,178 

13,000 

35,3«i 

1,475 

27.680 

<^i,707 
''4.306 
49,160 

10,718 

9.6o<^ 

16,218 

17,111 


43«.739    440**89 
4J.737      41,939 


11.954 
9iJ75 

49^177 
8,691 

30,990 

20,031 

55»7i8 

9.478 

31.540 

141I43 

12,690 

103,671 

25,454 
i9»8oj 

13.358 
19.810 

a7fi«4 

138,660 

15*365 

35,191 
19,661 
13,016 

1,489 

^6,795 
6i,7/i6 
67,664 
50,157 

to.68< 
9.115 

18,138 
+18,594 

44,^^5 


11,321 

9.504 
48. 625 

7,«a8 
31,547 
I9i047 

57,170 

9,3*7 
34,189 
14,470 
11,456 
104,344 
17.3:8 
»9,83l 
'1,555 
i«.t55 
26,294 

139,^53 
I5,«94 

34^745 
15*679 
13.  «i«i 
34.8^3 
1,5*8 
17,854 
65,820 
69,718 
50,044 

9,718 
9,^63 

15,3*8 

28,929 

4i«,754 
44.178 

Digitized 


byGoC 


798 


WEEKLY    RETURNS   OF   BANKS 


NAME  OP  BAXK. 


35  Northamptonshire  Union  Bank   . 

36  Northamptonsliire  Banking  Co.  , 

37  North  and  South  Wales  Bank.... 

38  Parc's  Leicestershire  Banking:  Co... 

39  Saddleworth  Banking  Company  ... 

40  Shetheld  Banking  Company 

41  Stamford,  Spahling&  Boston  Bk. Co. 
4Z  Stuckey's  B:inking  Company    

43  Shropsliire  Banking  Company 

44  Stourbridge  aiui  Kidderminster  Bk. 

45  Shetheld  and  Hallamshire  Bank  ... 

46  Shefiield  &Uothcrham  Jt. Stock  Bk. 

47  Swaledale  and  Wensleydale  Bank., 

48  Wolverhampton  &  Statlordsh.  Bk., 

49  Wakefield  and  Barnsiey  Union  Bk. 

50  Whitehaven  Joint  Stock  Bank  ... 
^i  Warwick  atid  Leamington  Bk.  Co. 
« I  West  of  Eng.&  S.  Wales  District  Bk 
53  Wilts  &  Dorset  Banking  Company 
54.  West  Riding  Union  Banking  Co.... 

55  Whitchurch  and  Eilesmere  Bk.  Co. 

56  Worcester  City  and  C'ounty  Bk.Co. 

57  York  Union  Banking  Company  .. 

58  York  City  and  County  Banking  Co 

59  Yorkshire  Banking  Company 


Anthor- 
ized  ' 
Itusue.    1' 


Apr 


•  I- 


£      l|        i 

84.35^' 1'!  ^7, 
26,401  'I  ao, 

63^95'  '  57. 
59,300  -  54, 

8,122;! 
35.843  I  35. 
55,7i»}    54, 
356,976  ,327, 

47,95»i"  37, 
56,830,1  48, 

23»5i4.s  »i, 

5^.49^ 

54.37^ 

35'37^ 

14,604 

3i,9>^;|  *3. 
37,124  I  28, 
83^535  86, 
76,16211  75, 
34.0*9 

7.475 'i 

6,848  I 

7i.HC| 
94/95 'I 
122,532 

ll 


54, 

50, 

*3. 


33. 
5» 
5, 

70, 

89. 
1121, < 


Jrisl)  anil  ^cotcl)  Cirrula 

Average  Circulation,  and  Coin  held  by  M^Irtsh  am 
weeks  ending  Saturday,  the  2^th  dai 

IRISH    BANil 


NAMB  OP  BANK. 


Bank  of  Ireland ^ 

Provincial  Bank  of  Ireland  j     927,667 

Belfast  Bank    j     281,611 

Northern  Bank  , 

Ulster  Bank 

The  National  Bank 

Totals  (Irish  Banks) 


Average  Circi 


4^h  and 
npwaida. 


6».354,494,;i 


£ 

,562,550 

387,990 
118,206 

99»435 
i66,5>>6 
60! . 850 

^',677" 


B*nk  of  Scotland   

Royal  Bank  of  Scotland    ... 

British  Linen  Company 

Commercial  Bk.  of  Scotland 
National  Bank  of  Scotland.. 
Union  Bank  of  Scotland  ... 
Aberdeen  Town  and  Co.  Bk. 
North  of  Scotland  Bk.  Co... 
Clydesdale  Banking  Co.   ... 

City  of  Glasgow  Bank  : 

Calcdoni-m  Bj-.nking  Co.   ...' 

Central  Bank  of  Scotland... ' 

Totals  (Scotch  Bank*)...! 


COTCH    BAN 

300,4851    167,774 


12,749,271  1,525,688 


Digitized  by  ^OOQ IC 


IRCULATION   RETURNS. 
^KLY  RETURNS   OF   B.VNKS 


709 


OF   ISSUR. 


liizCs;  '    i;888..48      ^,9W.96i  1   2,887,159!    2,^90,37i 

7,4»5»448  .    5.9 
leae  Banks  for 


..  £3,0  to.  531 
'.-     2,S9J,910 


■at^ 


...  £r>.<>3e,4ti 

th  the  Kctarns 
;.  it  shows  :— 
rate 

...     £146,417 
X)ck 

139,705 

...    £2S6,162 


^n  &  SCOTCH 

the  Irifth  and 
»  ending?  April 
he  following  a3 
if  these  liauks 

inks  £\nr>%m 
Banks  i,lo\,\oQ 

banks 

£10,009,253 

ith  the  Returns 
at,  thov  Hhow — 
I  Bank"s£l<i:J,737 
jhBanke  17H,o2i 

£313,261 


month  ending 

I  Banks  £205 /'m« 
chBankt»113,«^J 

£319,319 


»6,370,    5,975.92*1    5.9*8,0781    5.9*5,39* 

And   as   compared  with  the  month   ending 
Aliril  30th,  IbO-i,  it  bhows  :— 
A  <U<^rea»e   in  the  notes  of    Private 

■R.  TiVa    <\f  ..•  ••  •■•     SC— •ijOOa 

A  cUrr^^t'i^c  in'the  notes  of  Jolnt-Stock 
Baakii.of ^^^'^'^ 

Total  decrensf,  P8  compared  with  the 

Bavne  period  of  hist  year        ...  ,     •'.  r'!,\! 

The  foUowiiij?  i3  the  ccjmparative  state  ol  the 
circulation  aa  ro-ards  tho  fixed  lssucs:- 
Tbe   rrivute    Banks   are  below  their 

fixed  issues         ,    •••        ...•^^l^'^.^W) 

The  Joint-Stock  Banks  are  beloio  their 

tixcdis.sues         li-J^iJ'*/ 

Total  BRLOW  their  fixed  issues       ...  £1,479.007 

RETURNS  TO  APRIL  29.  1865. 

The  fixed  issues  of  theTri^h  and  Scotch  Ban'cs 
at  the  present  time  are  given  in  tho  Jianking 

6  BanksiuTrcland,aUowedtoissne  ..  £?  !o;l.inj 
12  Banks  in  Scotland,  lUlowed  to  issue     A^  *^«^.-^  ^ 

18  Banksinall,  allowed  to  issue   £9,103,763 

The  following  apponra,  therefore,  to  be  the 
comparative  state  of  the  circulatir,n  :- 
Irish  Banks  are  V.elow  their  h.xe<l  is.sue     f^^'f^ 
Scotch  Banks  are  above  then-  lijcedi^idue  l.^'li'^-^o 

Total  above  the  fixed  issue  £906,483 

The  amounts  of  Gold  and  Silver  held  at  the 
head  oilice-sof  the  several  banks,  during  the  past 
month,  liavebeen  as  f»>l\o^7  j— ^„„.  pn  i<n  oqq 
Gold  and  Silverhcld  by  the  In f*h  Banks  ^^2,123.998 
Goldand SUverhcldby the ScotchBauks  A318,l()8 

Total  of  Gold  and  Silver  Coin £1,412,068 

Beimr  an  incre;tso  of  .t  12.607  on  the  part  of  the 
Ir^h  BaTks.  and  a  decrease  of  £5H,ot5  on  the 
PHit  of  the  Scotch  Banks,  on  the  several  nmounUi 
held  by  them  during  the  proccduig  month. 


THE  UNITED  KINGDOM  TO  APRIL  29,  1865. 
f  the  Note  CircuhiUon  of  the  United  Kingdom  for  the  month  ending 

ith  ending  29th  April,  as  compared  witiitho  previous  month :- 

..  _  t :i  »-M>  Ti^^t-noaA  Dccrease. 


April  26) 


April  1. 

£  I  i»,  750,334 

2,h91/H1 

2,756,205 


April  29. 

£21,051.570 
3,OtO,.>3l 
2,805,010 


23,UW\023 
3.5«72,nS2 
6,69i,360 


26,0'<-J,01l 
4,i:.l.l50 

5,8o8,<»97 


£35,067.615  1     £36,907,261 


Increase. 

1,301.236 

lV5.tt7 

130,705 


1,687,388 
178,521 
163,737 


£1,029,619 


'.^^'l«'''--"-':f'><.''''"-]!^";,^:t!^  2flth.  rives  an 

;h™ra,n?4^  to  bo  a  i«-"a..  01-  .£ui,7ai;  and  an .«««.  of  il.«,8.3M 
iod  Ian  year.  „,,„„,  „„^  Irplnnrt  durlne  tho  month  on(Uiie  29th 

■  'r  »™''„Uso^S^^fcomiJ^  wUh  the-^Bo         of  the  pteviou* 
]:^rv^"^^V^::atrrt^^on..Vonair.e  l.erioa  laatyoar. 


Digitized  by  L^OOQR 


CO 
QO 


.§^ 


CO 


CO 

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ft. 

f 

CO 

P 


W 

GQ 

!z5 
W 

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HE  BAMER8'  MAGAZINE, 

AHD 

|0ttrnal  0f  t\it  P0mg  SJarkjet. 


JULY,    1865. 


HDRAWAL  OF  MR.  GLADSTONE'S  BANK  OF  ISSUE  BILL. 

have  to  congratulate  the  banking  interest  on  the  witfi- 
ral  of  Mr.  Gladstone's  Bill  for  regulating  Banks  of  Issue.  More 

once  we  have  had  to  expose  the  right  honourable  gentlc- 
^s  errors  and  hallucinations,  and  to  show  that  his  ability  as  a 
icier  is  by  no  means  equal  to  his  eloquence  as  an  orator. 
nodifications  of  our  national  burdens  have  been  by  no  means 
)rm  successes,  and  in  remission  and  impositions  alike  hiis 
hown  his  devotion  to  unsound  theories,  and  his  superiority 
he  lessons  of  practical  wisdom.  The  measure  which  has 
been  defeated  exhibited  both  these  imperfections.  In 
mting  it  to  the  House,  its  author  avowed  his  adherence  to 
Bstionable  doctrine,  and  his  readiness  to  commit  a  great  in- 
ce  upon  the  banking  fraternity.  He  claimed  for  bank  notes 
aracter  which  they  do  not  possess,  and  he  sought  to  de- 
)  the  bankers  of  a  right  which  is  as  much  an  item  of  per- 
l  property,  as  the  wines  in  Mr.  Gladstone's  cellar,  or  the 
»  on  Mr.  Gladstone's  side-board.  Happily,  his  endeavouia 
been  defeated.     The  House  is  not  yet  prepared  to  take  the 

step  towards  making  the  business  of  banking  a  Govem- 
;  monopoly,  and  as  yet  the  old-fashioned  maxim  that  the 
)rs  of  the  public  are  not  to  be  exercised  to  the  derogation 
dividual  rights  has  not  been  set  aside  to  gratify  enthusiastic 
rers  of  Sir  Eobert  PeePs  Currency  Act. 
r.  Gladstone  proposed  to  allow  the  private  banks  to  retain 

present  powers  of  issuing  notes  for  a  limited  period,  at 
snd  of  which  all  rights  of  that  character  which  they  now 
f  were  to  cease  and  determine.  This  proposal  rests  on  the 
riple  that  the  State,  and  the  State  onljr,  ought  to  issue 
r  money.  This  theory  once  admitted,  it  follows  that  if 
VOL.  XXV.  64 


Qj^dbyGOOg' 


802      Withdrawal  of  Mr.  Gladstone's  Bank 

any  one  else  has  been  permitted  to  do  so,  the 
own  option,  resume  its  right,  and  deprive  t: 
power  to  issue  notes  without  any  eompensati 
Chuncellor  of  the  Exchequer  unreservedly 
premises  nnd  the  conclusion.  A  private  ba 
paper  ia,  in  hiw  eyes,  an  anomaly  only  to  be 
can  safely  bo  removed,  and  a  few  weeks  agi 
both  the  hour  and  the  man  had  arrived  for 
dawTi  of  the  niillenium  of  the  devotees  of  th 
to  be  accelerated  by  our  present  Minister 
rights  of  the  private  banks  were  to  cease  in 
which  none  but  the  State  or  its  licencees  i 
money.  The  Act  of  1844  provided  for  the  v 
of  this  right  by  those  who  held  it,  \ 
prophecies  of  its  authors  which  time  hajs 
said  that  bankers  would  hasten  to  avail  t 
provisions.  But  the  banking  mind  in  i1 
eminently  practical.  The  country  bankers  f 
powers  of  issue  which  were  so  desired  by  an« 
England  were  of  no  value  to  less  powei 
Therefore  they  preferred  to  keep  their  notes 
were  actually  wrong-headed  enough  to  belief 
not  withdraw  them  without  seriously  diminii 
The  sound  and  solid  banks,  whether  private 
on  the  even  tenour  of  their  way,  regardless 
nicnt  they  were  causing  to  the  authors  of 
financial  theories.  Now  and  then  a  specuJ 
lapsed,  or  a  weak  one  died  out,  but  the  pro| 
by  such  means  was  far  too  slow  to  be  satisfy 
things  were  going  on,  centuries  must  elapse  1 
of  Issue  had  peased  to  exist,  and  hence  it  was 
introduced  his  recently  defeated  measure. 

A  moment's  consideration  will  suffice  tc 
fallacy  on  which  that  measure  rested.  The 
bank  is  neither  more  nor  less  than  a  promise 
one  takes  unless  he  has  confidence  in  the  sc 
sons  or  firms  whose  names  are  upon  it*  Tl 
by  some  speakers  during  the  debates  on  M; 
and  an  attempt  was  made  to  prove  that  a  ban 
money  as  a  sovereign,  and  that  as  we  bad  pro 
from  issuing  a  metallic  currency,  the  same  : 
to  forbid  any  attempt,  by  private  persons, 
currency*  The  cases,  however,  are  not  para 
ment  stamp  on  a  piece  of  gold  is  the  voucl 
(practically}  for  uniformity.     A  coin  with 


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WUhdrawal  of  Mr.  Gladstone's  Bank  of  Issue  Bill.     803 

• 

m  to  oontain  a  certam  weight  of  metal,  and  to  represent  a 
icular  sum.  The  standard  of  paper  money  rises  or  falls 
nding  as  the  receiver  thinks  it  is  probable  or  otherwise  that 
ill  get  the  nominal  value  of  the  instrument  he  takes  when 
resents  it  for  payment.  For  first-class  mercantile  paper 
an  always  get  the  full  amount  for  which  it  is  given, 
Kjt  only  to  a  deduction  for  discount,  varying  with  the 
mt  rate  of  interest,  and  the  time  the  bill  has  to  run.  The 
reason  why  bank  notes  are  taken  without  any  deduction 
ever,  is  because  they  are  payable  on  demand,  and  upon 
L,  consequently,  there  is  no  rebate  to  be  allowed.  In  aid  of 
irculation  of  the  Bank  of  England,  the  power  of  Parlia- 
\,  has  more  than  once  been  invoked.  But  private  bankers 
no  such  help.  No  one  would  take  .one  of  their  notes  un- 
he  felt  sure  that  it  would  be  cashed  at  any  moment  he 
^ted  it  at  the  bank  counter.  The  bankers  know  this,  and 
keep  a  stock  of  bullion  proportioned  to  their  own  ciroula- 

The  public  know  it,  and  their  readiness  to  take  the  notes 
ids  upon  their  belief  in  the  ability  of  the  bank  to  meet  its 
9;ements,  in  just  the  same  way  as  a  trader's  readiness  or 
tance  to  take  a  bill  from  a  customer.  In  both  cases  the 
action  is  based  on  the  confidence  of  the  person  who  takes 
[istrument.  In  both,  the  person  giving  it  gets  an  exten- 
of  his  available  means,  and  in  both  the  receiver  can  give  a 
r  title  to  the  property  the  instrument  represents,  than  he 
elf  possesses.  Clearly,  then,  the  attempt  to  distinguish 
sen  a  bank  note  and  a  commercial  bill  fails,  and  as  no  one 
maintain  that  it  is  beyond  the  scope  of  private  dealing  to 
or  take  a  bill,  the  whole  theory  of  otate  rights,  for  which 
Gfladstone  contends,  fails  also. 

le  practical  part  of  the  question  may  be  very  soon  disposed 
An  attempt  was  made  to  show  an  increased  risk  of  forgery, 
Lg  from  the  multiplication  of  note-issuing  establishments, 
bhe  answer  to  this  is,  that  in  practice,  forgeries  are  gene- 
committed  on  the  Bank  of  England,  because  the  plates  of 
te  notes  are  invariably  much  more  elaborate  than  that  in 
t  the  national  establishment,  and  from  the  narrower  area 
dch  they  circulate,  it  would  never  be  worth  a  forger's  while 
iempt  to  imitate  them.  This  very  circumstance,  it  is  well 
n,  often  makes  it  no  easy  matter  for  a  stranger  to  change 
ik  of  England  note  in  any  district  having  local  paper  m 
lation.  It  may  be  said  that  this  is  an  inconvenience  to  the 
ger  which  the  proposed  Act  would  have  remedied.     We 

the  inconvenience  is   caused  by  losses   experienced  by 
it  folks^  which  the  proposed  Act  would  have  multiplied. 


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And,  as  was  forcibly  remarked  by  a  dai 
menting  on  the  proposal,  to  withdraw  tl 
private  banks  would  be  to  diminish  our  p 
extent  of  four  millions,  at  a  time  when  it 
rather  to  increase  than  curtail  it.  Furi 
one  of  the  soundest  banking  maxims,  it  woi 
on  one  large  establishment,  rather  than  oi 
ones ;  an  evil  which  we  have  carried  far  en 
had  the  Bill  passed,  it  would  have  made  1 
a  great  monopoly ;  an  instance  of  a  pro 
lished  by  the  scheme  of  a  free  trade  minis 
of  a  free  trade  Parliament. 

We  congratulate  the  English  bankeri 
opposition  to  this  measure.  Should  any  a 
introduce  it,  it  would  be  well  to  obtain  t 
Scottish  brethren,  whose  rights  were  spc 
but  who  must  not  suppose  that  they  wil 
English  banks  are  sacrificed.  It  may  I 
Chancellor  to  take  each  interest  in  detai 
foolish  of  those  who  are  indirectly  menac* 
imtil  their  own  turn  comes.  Having  vaii 
the  bankers  to  give  up  a  lucrative  branch  c 
Gladstone  withdrew  his  measure  with  the 
bringing  it  again,  with  provisions  yet  moi 
contained  in  the  lately  slaughtered  innc 
that  we  are  not  greatly  moved  by  these 
measure  which  involves  a  substantial  inj 
a  system  which  has  stood  long,  and  whi 
easy.  AYe  only  hope  that  whenever  t 
bankers  will  be  prepared  to  renew  their  op 
skill,  spirit,  and  judgment  as  they  showc 
Issue  Bill  was  before  the  House  in  the  seg 


HISTORIC  OUTLINES  OF  AMERIC 

No.  xvn. 

General  Harrison  delivered  his  inaugui 
of  March,  1841,  and  died  on  the  4th  of 
He  had  grown  old  in  the  military  service  < 
passed  twenty  years  of  his  active  life  in  wa 

♦  The  Momiiig  Herald,  June 


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805 


311  he  had  won  the  important  battle  of  Tippecanoe  against 
,  and,  in  1813,  defeated  the  English  General  Proctor  at 
tattle  of  the  Thames,  in  Canada,  where  the  famous  Indian 
Tecum-seh  was  slain.  But  Harrison  was  a  man  of  antique 
e,  and  quite  unfitted  to  rise  to  power  by  courting  the  smiles 
mlgar  and  capricious  democracy.  His  brilliant  and  useful 
as  were  rewarded  neither  by  honours  nor  wealth.  When 
ved  of  his  rank  as  commander-in-chief  in  the  western  dis- 
,  he  received  no  higher  grade  than  that  of  clerk  of  the 
1;  of  Common  Pleas  in  Cincinnati,  though  he  had  been 
•nor  of  the  territory  of  Indiana  and  a  senator  in  the  Con- 
of  the  United  States.  Oratitude  to  public  men  has  not 
an  American  yirtue.  Mr.  Oallatin  had  been  a  legislator 
irty  years,  a  member  of  the  Cabinet,  and  an  official  negc- 
'  in  foreign  courts,  but  he  was  too  disinterested  to  make 
provision  for  himself,  and  at  the  end  of  his  laborious  public 
r  would  have  died  in  poverty  had  not  his  personal  friends 
led  for  him  the  appointment  of  president  of  one  of  the 
York  banks.  Such  was  the  distress  of  President  Je£Person 
le  was  compelled  to  ask  the  sanction  of  the  Virginian  legis- 
}  to  sell  his  estates  by  auction ;  and  yet  it  was  Je£Person 
proposed  the  declaration  of  American  independence, 
lent  Monroe,  even  still  poorer,  after  having  expended  his 
nony  in  the  service  of  his  country,  had  to  implore  the 
iiseration  of  Congress,  though  the  united  eflForts  of 
son  and  Monroe  had  acquired  Louisiana  and  the  Floridas 
le  United  States.  When  these  examples  of  public  ingrati- 
ire  known,  it  is  not  surprising  that  General  Harrison,  with 
lerous  family  to  provide  for,  was  compelled  to  accept  the 
and  salary  of  a  clerk  in  a  court  of  law. 
B  new  President  had  been  elected  by  those  who  had  become 
Qced  of  the  destructive  principles  adopted  by  Jackson  and 
Buren.  In  reference  to  banlang,  he  made  these  remarks 
\  inaugiLral : — "  I  am  not  insensible  to  the  great  difficulty 
exists  in  devising  a  proper  plan  for  the  safe  keeping  and 
rsement  of  the  public  revenues,  and  I  know  the  importance 
1  has  been  attached  by  men  of  great  abilities  and  patriotism 
5  divorce,  as  it  is  called,  of  the  Treasury  from  banking  insti- 
ls. It  is  not  the  divorce  that  is  complained  of,  but  the 
Uowed  union  of  the  Treasury  with  the  Executive  which 
reated  such  extensive  alarm.**  He  then  observed,  "  It  was 
Wy  a  great  error  in  the  framers  of  the  constitution,  not 
ve  made  the  officer  at  the  head  of  tiie  Treasury  department 
dy  independent  of  the  Executive.    He  should  at  most  have 


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been  removable  only  upon  the  demand  of 
of  the  legislature.  I  have  determined 
secretary  without  communicating  all  the  cii 
ing  such  a  removal  to  both  Houses  of  Con 
direct  censure  on  General  Jackson  for  ha 
Secretary  Duane.  On  the  character  of  th 
Harrison  thus  expressed  himself:  — 

"  The  idea  of  making  it  exclusively  mei 
intended,  appears  to  me  fraught  with  morf 
than  any  other  scheme,  having  no  relation 
of  the  citizens,  that  has  ever  been  devised, 
could  produce  the  effect  of  arresting  at  on 
conditions  by  which  thousands  of  our  n 
citizens,  by  their  industry  and  enterpris 
possession  of  wealth,  that  is  one.  If  there 
calculated  than  another  to  produce  that  sta 
deprecated  by  all  true  republicans,  by  whic 
adding  to  their  hoards  and  the  poor  e 
penury,  it  is  an  exclusive  metallic  currenc; 
process  of  which  the  character  of  the  count 
nobleness  of  feeling  may  be  destroyed  by  t 
necessary  toleration  of  usury,  it  is  ai 
currency." 

These  humane  sentiments,  honourable  ; 
heart  of  General  Harrison,  rendered  his 
parable  calamity.  What  plans  he  might 
is  vain  to  conjecture,  though  we  may  be 
have  emancipated  industry  from  the  enslavi 
The  chief,  nay,  the  sole  care  of  Jackson 
been  to  realise  a  metallic  revenue,  they  d 
mode  of  receipt  for  the  Government,  and 
it  at  the  mint  price  of  the  coin,  utterly  ind 
a  mode  of  payment  was  easy  or  oppressive 
furnish  the  taxes  ;  and  experience  had  pr< 
means  frustrated  the  desired  end.  The  h 
the  public  treasury  must  always  depend  on 
ness  of  individual  treasuries,  for  golden  sin 
beggars'  waUets.  President  Jackson,  in  his 
had  acknowledged  that  "  the  tax  on  goods 
the  price  of  the  commodity  to  the  consura 
these  duties  are  imposed  on  articles  of  nee 
used  by  the  great  body  of  the  people,  the  i 
imports  is  drawn  from  their  pockets."  T] 
rect.     The  producers  certaialy  advance 


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moe  to  the  Government,  but  under  a  just  currency  they 
Id  be  enabled  to  recover  the  tax  from  the  final  consumer  of 
•  goods  by  adding  it  to  the  price.  Now  this  addition  was 
ented  by  the  policy  of  Jackson  and  Van  Buren,  for  a  rise 
rices  can  only  take  place  in  a  monetary  medium  which  per- 

the  rise ;  in  other  words,  the  money  must  depreciate  pre- 
Y  to  the  extent  that  justice  demands  the  appreciation  of  the 
Is.  To  superficial  thinkers  the  word  "depreciation" 
ies  dishonesty,  fraud,  or  over-reaching,  but  m  a  fiscal 
5  depreciation  is  the  sole  conservator  of  equity  where 
lue  is  raised  by  indirect  taxation.  The  natural  value  of  a 
nodity  is  its  cost  of  production  simply,  from  which  tax  is 
ely  excluded.  For  the  sake  of  illustration  let  that  be  one 
reign,  or  5  dwts.  of  gold.  Now,  impose  a  tax  of  10«.  or 
vts.  of  gold — the  price  rises  to  7i  dwts.,  but  how  is  the  pro- 
r  to  obtain  7i  dwts.  of  gold  from  the  consimxer  in  an  open 
:et  for  that  which  is  only  worth  5  dwts.  of  gold  ?  It  is 
ly  impossible,  since  every  one  will  purchase  in  the  cheapest 
:et,  and  therefore  the  tax  cannot  be  added  to  natural  value, 
iishonesty,  therefore,  is  not  in  using  a  depreciating  money 
e  revenue  is  raised  by  indirect  taxation;  the  dishonestv  is 
e  a  money  is  used  that  will  not  depreciate.  This  distmc- 
was  not  perceived  by  Jackson  and  Van  Buren;  but  we 

not  be  too  severe  on  their  error,  since  they  shared  it  in 
Qon  with  the  legislature  of  England,who  uphold  it  to  this  day. 
will  further  be  observed  that  though  the  American  Presi- 
>  suppressed  the  national  or  federal  bank,  they  called  into 
ence  another  agency,  only  difierin?  in  name  from  that 
:ution,  for  the  Treasury  notes,  issued  m  lieu  and  in  antici- 
n  of  revenue,  were  a  close  imitation  of  Bank  of  England 
\  issued  on  the  deposit  of  large  exchequer  bills  by  govem- 
;  in  the  hands  of  the  bank  directors.  In  fact,  both  instru- 
»  were  instruments  of  credit  resting  on  the  faith  of  their 
ictive  governments  for  their  redemption  at  some  postponed 

le  death  of  G^ieral  Harrison  raised  Vice-President  Tyler 
e  Presidency.  He  convened  a  special  session  on  the  1st 
,  1841,  and,  in  his  message,  made  the  following  remarks  on 
»anking  controversy. 

Within  a  few  years  past,'*  he  said,  "  three  different  schemes 
been  before  the  country.  The  charter  of  the  Bank  of  the 
ed  States  expired  by  its  own  limitations  in  1836 ;  an  effort 
[nade  to  renew  it,  which  received  the  sanction  of  the  two 
see  of  OongresB,  but  the  then  President  of  the  United 


I 

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States  exercised  his  veto  power,  and  the  m 
Mr.  Tyler  considered  that  General  Jacksoi 
in  the  course  he  took  by  public  opinion 
Buren,  who  had  adopted  the  policy  of  his  p 
in  obedience  to  the  popular  will.  He  then 
the  public  moneys  were  withdrawn  from  tl 
were  placed  in  deposit  with  the  States  ban! 
that  policy  has  been  before  the  country, 
the  question  whether  that  experiment  ¥ 
pitious  or  adverse  circumstances,  it  may  b; 
it  did  receive  the  unqualified  condemnatioi 
advocates,  and  it  is  believed  was  condei 
sentiment.  The  existing  Sub-Treasury  scl 
stand  in  higher  favour  with  the  people,  b 
condemned  in  a  manner  too  plainly  ind 
doubt.  Thus  the  short  period  of  eight  yei 
as  having  successively  condemned  each 
finance  to  wliich  I  have  adverted.  At  the  i 
at  a  time  (1816)  when  the  State  banks,  thei 
number,  had  been  forced  to  suspend  specie 
of  the  war  which  had  previously  prevails 
whether,  if  the  United  States  Bank  Chart 
1811,  had  been  renewed  in  due  season, 
enabled  to  continue  specie  payments  du 
disastrous  period  to  the  commerce  of  the  c 
diately  succeeded,  is,  to  say  the  least, 
whether  the  United  States  Bank  of  1816  ] 
of  specie  pa^Tnents,  or  the  same  was  accc 
instrumentality  of  other  means,  was  a  mai 
at  tbat  time  to  determine ;  certain  it  is,  fo 
operation  of  that  bank,  that  its  course  was  a 
greater  part  of  its  subsequent  career  it  b 
cessful.  As  to  the  second,  the  experim 
redundant  treasury,  which  continued  to  in 
to  be  the  part  of  wisdom  to  distribute 
among  the  States,  which,  operating  at 
the  Specie  Circular,  and  the  causes  befoi 
them  to  suspend  specie  payments  and  in 
the  greatest  embarrassment.  And  as  to 
through  all  the  stages  of  the  transmuta 
specie  to  nothing  but  the  precious  metals, 
public  moneys,  its  injurious  effects  have 
the  country  in  its  unqualified  eondemna 
regarded  as  the  judgment  of  the  America] 


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3ct,  I  have  no  accurate  means  of  determining,  but  by  appeal- 
ko  their  more  immediate  representatives.  The  late  contest 
h  terminated  in  the  election  of  General  Harrison  to  the 
idency,  was  decided  on  principles  well  known  and  openly 
;red ;  and  while  the  Sub-Treasury  received  in  the  result  the 
decided  condemnation,  yet  no  other  scheme  of  finance 
ed  to  have  been  concurred  in." 

is  extract  from  the  message  is  a  complete  summary  of 
finance,  and  therefore  is  given  unabridged.  Mr.  Tyler 
luded  his  statement  by  submitting  the  entire  question  to 
ress,  expressing  his  readiness  to  concur  in  the  adoption  of 
a  system  as  Congress  might  propose,  provided  it  did  not 
let  with  the  constitution.  He,  however,  observed  that 
restriction  should  be  put  on  the  unlimited  creation  of  banks, 
li  could  only  be  done  with  the  assent  of  the  several  States. 
e  may  here  sketch  the  state  of  parlies  on  the  accession  of 
Pyler  to  the  Presidency. 

e  old  Federal  party,  greatly  weakened  under  the  Presidencies 
SPerson  and  Madison,  expired  soon  after  the  termination  of  the 
idth  Great  Britain  in  1815.  Even  the  very  name  of  Federalist 
[)ut  during  the  administration  of  Mr.  Monroe.  The  sup- 
ra of  General  Jackson  assumed  the  title  of  Democrats ;  his 
lent 8,  that  of  Republicans.  In  1833  and  1834  these  latter 
joined  by  some  seceders  from  the  Democrats,  when  the 
d  party  took  the  name  of  Whigs.'  In  this  manner,  when 
i'^an  Buren  was  elected  to  the  Presidental  chair,  the  country 
ividedinto  Democrats  and  Whigs.  The  ranks  of  the  latter 
again  recruited  by  some  minor  parties  having  local  or 
d  views,  such  as  the  Anti-Masons  of  the  middle  and  eastern 
s ;  the  States  Rights  men  of  the  South,  who  disapproved 
e  proceedings  against  the  United  States  Bank;  and  a 
section,  who  had  supported  Jackson  in  Tennessee,  Georgia, 
ome  other  States,  but  were  opposed  to  Van  Buren.  The 
)crat8  had  become  divided  m  1835,  particularly  in  the 
lem  and  middle  States.  They  who  opposed  all  banks  and 
oneyed  institutions,  took  the  name  of  "  Locofocos,"  and  were 
sailed  the  "Equal-Rights  party.'*  These  sprang  from  what 
been  called  the  "Working  Man's  party/'  organized  by 
rt  Dale  Owen  and  Miss  Frances  Wnght,  who  brought  the 
as  from  Great  Britain,  They  had  been  the  firmest  friends 
ckson,  and  were  resolutely  opposed  to  what  they  regarded 
mopoly  corporations.  Thus  the  Democrats  were  split  into 
>ns ;  for  though  they  had  unitedly  opposed  the  renewal  of 


Digitized  by 


Goos 


810  Historic  Outlines  of  American  . 

the  charter  of  the  United  States  Bank,  so 
favour  of  States  and  local  banks,  and  aga 
cular ;  while  the  Equal-Rights  party  insistec 
monopoly,  and  hard  ^oney.  On  these 
Democrats  separated  themselves  from  Locc 
title  of  Conservatives,  and  eventually  j 
It  was  the  alliance  of  Whigs  and  Conservati 
Harrison  and  Tyler  to  the  Presidential  ar 
chairs.  The  quotations  we  have  made  from 
inaugural  address,  prove  him  an  opponen 
metallic  currency;  and  during  his  canvai 
avowed  himself  a  Whig  and  a  Protectioni 
of  a  national  bank  he  had  addressed,  befc 
following  declaration  of  his  sentiments,  to  a] 
in  October,  1840  :— 

"  My  opinion  of  the  power  of  Congress  t 
the  United  States  remains  unchanged.  The 
Btitution  any  express  grant  or  power  for  % 
it  never  could  be  constitutional  to  exercise 
the  event  that  the  powers  granted  to  Coi 
carried  on  without  resort  to  such  an  institut 

This  letter,  the  sentiments  expressed  in  hi 
and  the  fact  of  his  having  been  elected  to 
on  the  united  Whig  and  Conservative  ticket 
to  believe  that  Air.  Tyier  would  ratify  a 
formation  of  a  national  bank  sanctioned 
both  Houses  of  Congress,  if  it  did  not  dire< 
the  spirit  of  the  constitution.  Accompany 
the  President  was  a  report  from  Mr.  Ewi: 
Treasury,  earnestly  recommending  a  natic 
tained  the  following  passage  : — 

"  If  such  an  institution  can  be  so  concer 
guarded  in  its  details  as  to  remove  all  sc 
question  of  constitutional  power,  and  thus 
which  have  been  urged  against  those  he] 
Congress,  it  will,  in  the  opinion  of  the  undei 
happiest  results,  and  confer  lasting  and  ii] 
the  country.'* 

Mr.   Ewing  brought  forward  a  Bill  for 
the  "  Fiscal  Bank  of  the  United  States,"  i 
and  title  he  had  selected.     In  the  first  plac< 
porated  in  the  district  of  Columbia ;  and,  8( 
to  establish  branches   with  the  assent  of 


Digiti 


ized  by  Google 


SUtorie  OtUUneB  ^  American  Finance.  811 

al  was  to  be  fixed  at  thirty  millioxiB  of  dollars,  and  it  was 
I  privileged  to  discoant  and  deal  in  the  foreign  exchanges, 
project  was  submitted  to  a  select  committee  of  the  Senate^ 
ipproved  both  in  principle  and  details,  with  the  exception 
e  principle  of  branches.     An  amendment  gave  power  to 
ge  the  capital  from  thirty  to  fifty  millions  of  dollars  should 
be  deemed  advisable.     The  Government  subscription  was  to 
n  millions.  As  to  branches  the  Senate  made  it  obligatory 
le  corporation  to  establish  an  office  of  discount  in  any  State 
ere  two  thousand  shares  should  have   been    subscribed/' 
d  the  legislature  of  the  State  demand  it ;  further,  **  the 
tors  were  authorised  to  establish  such  offices  in  any  State  or 
ory  where  they  should  think  it  expedient,  without  the  assent 
e  local  legislature  ;**  or,  instead  of  establishing  such  offices, 
might  employ  a  bank  or  an  agent,  to  be  approved  of  by 
Secretary  of  the  Treasury,  at   any  place,  to  transact  the 
Less  of  the  bank,  for  any  purpose  except  that  of  discount, 
was  soon  made  known  that  the  President  thought  that 
institution  gave  power  to   create    a    bank,  but  none  to 
e  a  branch.    As  this  distinction  might  have  endangered 
irhole  project.  Congress  agreed  to  the  following  compromise. 
Lirectors  were  to  have  power  to  establish  a  branch  with  the 
t  of  the   State  in  which  the   branch   was   located,    and 
L  once  established  it  was  not  to  be  withdrawn  without  the 
mt  of  Congress  ;  provided,  first,  that  the  power  to  establish 
mch  should  be  unrestrained  in  respect  to  any  State  which 
Lot,  at  the  first  session  of  its  lefi;islature  after  the  passage  of 
Charter,  express  its  disapproval,  in  default  of  which  assent 
to  be  assumed.    And,  secondly,  whenever  Congress  might 
I  it  proper  and  necessary  to  the  executive  powers  granted  by 
onstitution  to  establish  a  branch  in  any  State,  then  Congress 
it  require  the  directors  to  foimd  one.    This  compromise  to  re- 
e  the  scruples  of  the  President,  was  incorporated  in  the  Bill 
ih  was  passed  by  Congress  on  the  6th  August,  1841.     The 
8  of  the  Senate  were  26  to  23,  and  of  the  House  of  Representa- 
1 128  to  97.    The  Bill  was  then  sent  to  Mr.  Tyler  for  his 
ature,  and,  contrary  to  general  expectations,  he  hesitated  to 
:  it.     A  Whig  deputation  waited  on  him,  when  he   said, 
Tiy  did  you  not  send  me  Ewing's  Bill  ?'*     One  of  the  depu- 
)n  asked,  "  Would  you  sign  that  Bill  t  "  He  answered,  "  I 
Id."     However,  he  afterwards  changed  his  mind,  and  vetoed 
a  the  16th  August,  1841.    Thus  terminated  the  Senate  BiU. 
Ir.  Tyler  had  said  to  one  of  the  delegates  of  a  deputation 
u  Ohio,  ''  If  you  will  examine  the  message  I  have  sent  to* 


Digitized  by 


GooJ 


■'-^1. 


812  Hktoric  Outlines  of  American  . 

day,  you  will  find  shadowed  forth  a  much  b 
that  has  been  long  endeared  to  me."  T 
mained  that  the  principle  of  a  national  ban! 
Two  members  of  Congress  were  deputed  by 
tain  from  the  President  what  kind  of  B 
approval.  In  reply  he  expressed  himself  i 
agent  divested  of  discounting  power,  and  ] 
bills  of  exchange  other  than  those  drawn  by  i 
upon  another  citizen  of  the  same  State.  A  '. 
conformity  with  those  suggestions.  It  w 
celebrated  Mr.  Webster,  then  Secretary  of  i 
the  President ;  it  was  approved  and  trans 
of  Representatives,  reported  there,  and  pj 
This  happened  on  the  23rd  of  August.  < 
tember  it  passed  tlie  Senate  by  27  to  22 
altered  from  the  original  report.  The  nai 
omitted  in  deference  to  the  wishes  of  the  I 
was  entitled, "  An  Act  to  provide  for  the  be 
keeping,  and  disbursement  of  the  pubHc  r 
a  corporation  to  be  called  the  Fiscal  Corpoi 
States."  In  the  mean  time  the  Sub-Treasu 
the  signature  of  the  President  having  been 
instrument  on  the  17th  August,  1841.  Bu 
tion  Bill,  introduced  under  such  favoura 
rienced  the  same  fate  as  the  Bank  Bill,  beii 
September,  1841. 

These  extraordinary  proceedings  led  to  tl 
Cabinet,  all  the  members,  excepting  Mr. 
on  the  11th  of  September.  On  the  9th  Sep 
on  which  the  veto  message  on  the  Fiscal  < 
vetoed,  Mr.  Tallmadge,  one  of  the  senator 
New  York,  and  a  confidential  friend  of  I 
to  him  a  strong  remonstrance,  warning  hi 
COD  sequences  of  his  second  veto,  and  dec! 
alienate  the  feelings  of  all  who  had  raised 
is  the  part  of  a  great  man,"  said  Mr.  Talln 
the  obstacles  which  obstruct  the  way  of  smj 
reminded  the  President  that  General  Wash 
on  the  first  bank  Bill  fully  prepared,  thoi 
purpose  at  the  very  last  moment.  Howe 
inflexible.  They  who  had  op|30sed  his  el 
of  his  conduct ;  and  Mr.  Van  Buren  affirme 
shoidd  complete  the  work  so  wisely  begun, 
Bill  for  the  creation  of  a  fiscal  corporation, 


Digitized  by  VjOOQIC 


Historic  Outlines  of  American  Finance, 


813 


he  thanks  of  the  country."  There  can  be  no  doubt  that 
1  General  Harrison  and  Mr.  Tyler  were  both  elected  by  the 
)n  of  the  Whigs  and  Conservatives,  who  desired  a  national 
k,  and  that  Mr.  Tyler  had  expressed  himself  favourable  to 
I  an  institution.  Why,  then,  did  he  disappoint  the  hopes 
lis  supporters  ?  Two  motives  were  assigned.  In  the  first 
ntertained  conscientious  scruples  as  to  the  proper  interpre- 
)n  of  his  oath  of  office,  wluch  he  finally  thought,  after 
ire  reflection,  forbade  the  existence  of  a  national  bank; 
ndly,  he  fear^  to  forfeit  the  consistency  of  his  character ; 

as  he  had  voted  against  the  constitutionality  of  a  bank 
Q  a  member  of  Congress,  he  was  reluctant  to  change  his 
;y  as  President.  It  is  said  that  he  had  modified  his  earlier 
ions  when  he  became  a  member  of  the  Senate.  He  recog- 
1  the  utility  of  the  institution  as  the  regulator  of  the  ex- 
iges,  and  while  he  was  still  sensible  to  banking  abuses, 
bought  they  might  be  guarded  against.  His  mind  was 
rly  in  a  state  of  transition.     It  was  asserted  by  his  enemies 

he  eagerly  desired  to  occupy  the  Presidential  chair  for  a 
id  tenn  of  office,  and  that,  despairing  of  success  without 
votes  of  the  Democrats,  he  hoped  to  conciliate  them  by 
ing  the  two  bank  Bills.  If  that  were  the  real  motive  of  his 
iordinary  conduct,  it  failed  to  secure  the  object  of  his 
ition.  He  retired  unregretted  by  either  of  the  two  great 
ical  parties,  having  lost  the  confidence  of  the  Whigs  and 
lervatives,  and  failed  to  conciliate  their  opponents, 
ere  this  series  of  articles  finds  its  appropriate  termination ; 
though  all  history  is  a  continuation  from  its  conupencement 
9  close,  still  it  may  be,  and  is,  divided  into  epocns,  each  of 
h  is  complete  in  itself.  In  the  period  passed  under  review, 
je  of  illustrious  Presidents  held  sway,  who  disappeared  with 
jral  Harrison,  and  every  man  of  real  talent  declined  to 

office.  No  longer  content  with  their  own  enormous  terri- 
»  the  South  cast  a  covetous  eye  on  Mexico,  for  the  express 
avowed  purpose  of  extending  slavery,  their  own  lands  being 
Towded  with  a  growing  negro  population.  This  was  the 
ical  wedge  which  in  due  time  split  the  federation  in  twain, 
history  of  that  revolution  is  not  yet  to  be  written,  for  itU 
clouded  with  prejudice  and  hirelmg  statement.  We  pause, 
ifore,  where  we  can  stand  on  firm  groimd,  and  close  our 
storical  Outlines,"  in  1845,  with  the  administration  of  Mr 


Digitized  by 


Googj 


814 
BANKING  AND  FINANCIAL  AIJ 

No.  vni. 

ROTHSCHILD   AND   HIS   FAVOURITE   PILLAR   i 

A  FAMiLiiVR  figure  to  the  memory  of  man; 
Nathan  Meyer  Rothschild  leaning  against  one 
Exchange.  Every  Tuesday  and  Friday,  at  lea 
cier  to  be  seen  there,  and  to  have  seen  Rothi 
and  not  hard  by  that  pillar,  would  have  been 
As  in  the  case  of  Paterfamilias  in  the  particuls 
comer,  or  of  the  leading  oracle  in  the  pai-ti 
room,  that  pillar  became  to  be  regarded  as  a 
financier  on  one  occasion  learned  that  it  was  nc 
Exchange,  with  more  bravado  than  sense,  and 
wit,  one  Tuesday  afternoon  planted  himself  ag 
the  arrival  of  the  great  Jewish  banker.  11 
Rose  (for  that  was  his  name  as  the  story  boo! 
on  the  arrival  of  Mr.  Rothschild:  but  Mr.  Rose 
He  maintained  his  right  to  occupy  that  spot  as 
this  was  the  Royal  Exchange,  he  declared,  free 
greater  right  than  he.  In  vain  Rothschild  gn. 
bystanders  protested.  Mr.  Rose  was  a  pow( 
his  back  firmly  against  the  pillar,  he,  from  thia 
the  onslaughts  of  his  assailants.  Having  su 
post,  or  rather  his  pillar,  for  half-an-hour,  I 
ciently  gratified  his  feeliDg  of  bull -dog  tenacity 
and  he  at  last  vacated  his  position  amid  the  ho 


ik^ 


A   CURIOUS   INTRODUCTION   TO   B 

Mr.  Lawson,  the  author  of  the  "  History  of 
his  financial  career  in  an  extraordinary  way. 
day,  having  just  left  the  Bluecoat  School,  in  th 
bankers  most  do  congregate,  and  his  attention 
where  a  number  of  young  men  were  continual 
out.  To  his  query,  what  was  the  business 
reply  was,  "  It  is  a  banking  house."      Revolvi 


Digiti 


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Banking  and  Financial  Anecdotes. 


815 


cer  really  was^  he  searched  his  dictionary,  and  there  found  that  a 
car  was  a  money-changer.  "This  was  precisely  that  sort  of 
tiess,"  says  Mr.  Lawson,  "  with  which  I  felt  myself  familiar  ■  for 
d  for  the  preceding  seven  years  been  in  the  constant  habit  of 
ng  with  money-changers,  albeit  I  never  knew  that  they  were 
d  bankers."  In  the  Bluecoat  School  no  money  was  allowed  to 
)ent  but  "  hospital  money,"  so  that  when  a  boy  received  any 
E^y  from  his  Mends  he  was  anxious  to  get  it  exchanged  for  the 
^nt  coin  within  the  bounds  of  this  ancient  educational  e&tidilish- 
S.  "  The  town  money-changer,"  he  says,  "  was  familiar  to  me 
my  infancy,  and  in  my  cloistered  simplicity  I  thought  that  the 
s  in  Lombard  Street  was  an  establuihment  on  the  same  principle. 
•rdingly,  on  the  following  day,  I  went  again  to  Lombard  Bti-eet, 
i  opposite  the  house,  and  saw  the  same  description  of  young 
among  them  several  about  my  own  age.  Impelled  by  some  mi- 
m  and  undefined  influence,  I  crossed  the  street,  and  entered  the 
\  I  saw  young  men  standing  behind  long  counters  weigh! ttg 
and  silver  in  scales.  I  stood  there  for  some  time  watching  the 
s,  and  inwardly  admiring  the  magnificence  of  the  money- 
jers ;  at  last  I  said  to  one  of  them,  *  Pray,  Sir,  do  you  want  a 
V  I  added,  'Nobody  told  me  so,  but  having  recently  left 
►1,  I  am  desirous  of  getting  some  employment.  I  am  living 
my  mother,  who  cannot  aflford  to  keep  me  at  home  idle, 
what  to  do  I  know  not."  Whether  the  teller  was  struck  with 
lovelty  of  the  application,  or  the  reason  I  adduced  for  niakii ig 

never   could   discover ;    suffice  it  to   say  that,  after  waiting 

i  ten    minutes,    I    was  requested  to  walk  into  the  paiiner'a 

On  my  entering  this  sanctum  sanctorum,  I  perceived  three 

ns  sitting  at  a  table.     One  was  a  very  venerable  and  a  vcty 

ble-looking  old  gentleman,  the  head  of  the  firm ;    the  others 

younger.  One  of  the  latter,  the  junior  partner,  addre.'gsed 
putting  the  question  the  teller  had  done  ;  and,  nothing  daunted, 
(re  the  same  answer,  adding,  '  I  do  not  like  to  be  beholden 
ij  Mends  for  any  support,  if  I  can  anyhow  get  my  own 
;.'  'A  very  praiseworthy  determination,*  he  said;  *and  how 
re  youj  jsij  boy,  and  how  long  have  you  been  from  school  1  * 
ng  satisfied  him  upon  these  points,  he  continued  his  queries, 
ig  what  sort  of  a  hand  I  wrote.  *  A  very  good  one,'  I  replied  ; 
sart  BO  my  master  used  to  say ; '  and,  at  the  same  time,  pulling 
lij  school  copy-book,  which  I  had  been  thoughtful  enoi;gh  to 
n  my  pockety  I  displayed  it  before  Imn.     *  Ay,*  he  said,  *  that  ia 


^^Bigitized  by  V^jOOQI 


816  Banking  and  Financial  Anec 

very  good  writing  ;  but  can  you  get  any  one  t< 
I  said  at  once,  and  without  the  least  hesitati 
my  having  the  remotest  idea  what  the  term  sec 
in  the  sense  in  which  he  used  it.  Inquiries  "w 
the  following  Wednesday  I  received  a  visit 
the  banking-house  whom  I  had  accosted  on  i 
and  who  said  he  was  very  happy  to  be  the  bei 
that  I  had  been  appointed  a  clerk  in  the  estab] 


ORIGIN  OP  THE  WORDS   BANKER  ANl 

In  the  middle  ages,  or,  at  all  events,  durii 
indefinite  period,  the  merchants  and  money-ler 
on  a  banco,  or  bench,  the  money  that  they  had 
and  thus  the  word  came  to  signify  a  repository 
When  one  of  these  money-lending  merchants 
his  business,  his  bench,  or  counter,  was  broke 
spoken  of  as  a  bancorotio,  or  bankrupt. 


LIBERALITY  OF  MR,  COUTTS  TO  i 

One  of  the  clerks  at  Coutts's  bank  had  on  oi 
collecting  day,  the  money  which  he  had  to  brir 
£17,000.  At  the  usual  hour  for  returning, 
missing.  The  noting  hour  passed  ;  messenger 
the  settling  houses,  and  to  his  lodgings,  hn 
obtained ;  advertisements  were  sent  to  all  th 
morning  the  town  was  pla<^rded  with  a  full  dc 
property,  and  a  large  reward  ofiered  for  s 
Nothing  was  heard  during  the  next  day ;  I 
morning,  one  of  the  partners  in  the  Southamf 
haste,  bringing  with  him  the  note-case  and  baj 
of  the  missing  property.  He  said  that  the 
which  the  coaches  arrived  had  the  previous  af 
and  begged  him  to  accompany  him  to  his  house, 
arrived  early  in  the  morning,  had  gone  to  b 
was,  as  he  thought,  now  dying,  and  wished  to  ] 


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Banking  and  Financial  Anecdotes.  817 

elative  to  a  large  sum  of  money  then  in  his  poeseBsion.  On  hia 
\  the  person  told  him  his  name,  said  that  he  waa  clerk  in  Mr. 
s>'s  house  ;  that  he  had  been  out  collecting,  and  on  his  return 
^  Piccadillj  he  was  seized  with  a  stupor  (a  malady  he  for  the 
!w  months  had  been  subject  to,  owing,  as  he  supposed,  to  a  faXL), 
igged  that,  for  God's  sake,  an  express  might  be  immediately  sent 

inform  the  house  of  the  circumstance ;  and  ho  added  that 
lid  give  no  other  account  how  be  came  where  he  was  (which 
1  not  know  till  the  landlord  informed  him)  than  that  at  the 
nt  he  found  the  stupor  coming  on  he  got  into  what  he  thought 

hackney  coach,  that  this  turned  out  to  be  the  Southampton 
and  that  he  remained  insensible  during  the  whole  journey. 
3  firm  immediately  caused  all  the  placards  to  be  covered  over 
I  statement  that  the  whole  of  the  property  had  been  recovei^ed, 
lat  the  supposed  loss  was  only  occasioned  by  sudden  illness. 

were  some  who  thought  Mr.  L.  really  had  tried  to  abscond, 
e  was  dismissed,  the  reason  assigned  being,  that  a  person  subject 
:h  a  malady  was  not  fit  to  transact  the  duties  of  a  banker^s 

Mr.  Coutts,  on  parting  with  the  clerk,  made  him  a  very  hand- 
present — a  sum,  in  fiict,  sufficient  to  purchase  an  annuity  for  the 
f  his  life. 


▲N  OLD  £i   NOTE. 

is.a  rare  thing  to  meet  with  a  £,\  note  in  England  at  the  present 
In  April,  1865,  much  to  the  surprise  of  Messrs.  Simonds, 
Jrs,  of  Reading,  two  of  their  £1  notes,  issued  in  1810,  and  signed 
r.  H.  Simonds,  who  was  then  a  junior  partner  in  the  firm,  were 
ited  to  them  for  payment,  and  honoured.  Had  the  value  of 
notes  been  placed  at  interest  for  the  55  years  which  elapsed 
they  were  issued,  the  amount  would  have  increased,  at  5  per 
compound  interest,  to  about  £30. 


MB.  coxrrTS  and  hiss  mellon. 
p.  Thomas  Coutts,  some  years  before  the  death  of  his  first  wife 
y  Starkey,  a  domestic  servant^  but  an  amiable  and  subsequently 
uplished  woman),  became  acquainted  with  Miss  Mellon,     Mr.  mii** 

t«  was  BO  much  strack  by  Miss  Mellon's  personal  appearance  and  ^fpT 

^nimnce  in  oae  of  her  favourite  popular  characters,  that  he  sent 
VOL,  XXV.  65 


Digitized  by 


Goog^_ 


818 


Banking  and  Financial  Anec 


a  message  requesting  the  honour  of  being  a 
visitor.  At  her  next  benefit  he  enclosed  five  n 
of  tickets,  which  the  lady  duly  enshrined  in 
polite  note  that  accompanied  them  as  a  mar 
richest  banker  in  the  metropolis,  little  dreamir 
immense  wealth  would  in  a  few  years  be  entire 

The  attentions  of  Mr.  Coutts  to  Miss  Melloi 
disparity  of  their  ycai*s,  did  not  fail  to  give  : 
calumnious  insinuation.  To  relieve  her  from 
her  appearance  on  the  stage  and  her  attendai 
exposed  her,  Mr.  Coutts  recommended  her 
altogether.  In  order  to  reimburse  her  for  i 
situation  firom  wliich  he  had  been  instrument 
Mr.  Coutts  conferred  upon  MLss  !Mellon,  in  th 
possible,  a  very  ample  independency.  He  pure 
villa,  at  ihe  foot  of  Highgate-hill,  called  Holly 
at  that  time  to  Sir  Henry  Vane  Tempest,  for 
he  presented  to  Miss  Mellon,  and  here  she  took 
subsequently  gave  her  a  carriage  and  horses — ( 
to  quell  those  cefisorious  whis2>ers  in  the  beau 
friendly  intimacy  had  given  nse. 

Shortly  after  the  death  of  his  wife,  Mr. 
Mellon — an  event  which  created  considerable  s 
surprise,  in  the  fashionable  world  at  the  tii 
shows  the  estimation  in  which  the  lady  was  he 
gentleman  was  inspecting  a  volume  of  theatric 
of  Mr.  Colnaglii,  the  famous  printseller,  w 
pencil  struck  his  attention.  Opposite  to  ea 
graphical  notice,  and  the  writing  alluded  to 
notice  of  Miss  Mellon.  Her  retirement  from  i 
recorded,  a  note  in  tlie  handwriting  of  Mr.  C( 
following  effect  :  **  When  she  married  Thoma; 
of  the  Strand,  which  proved  the  greatest  b 
made  him  the  happiest  of  men. — T.  C-" 


I.. 


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f  iJjgal  ^isallanjj. 


I  BANK  OF  AUSTKIA — THE  BABON  DB  THIEBBY  AND  ANOTHEB  V.  LOBD 
FEBMOY  AND  ANOTHEB. 

t  case  was  argued  in  the  Court  of  Queen's  Bench  in  banoo,  on  the 
Fane. 

was  an  action  by  the  Baron  and  Mr.  J.  O.  Lever,  IMIP.,  against  Lord 
loy  and  another  gentleman,  on  an  agreement  by  them  to  pay  £20,000, 
iie  transfer  to  them  by  the  former  of  a  concession  for  the  establLsb- 
/  of  a  joint-stock  bank  at  Vienna.  The  Baron  and  Mt.  Lever,  the 
inal  concessionaires,  had,  in  December,  1862,  obtained  a  preliminary 
Bssion,  which  expressly  stated  that  the  concessionaires  must  obtain  a 
itive  concession,  "  on  submitting  proof  of  the  necessary  means,  an>1  ;i 
;of  the  statutes  (or  bye-laws)  framed  according  to  the  AustriaD 
'  And  they  had  accordingly  submitted  to  the  Austrian  Government 
raft   of    such   statutes.     That  being  so,  on  the  22nd  of  April,  1BC3, 

entered  into  an  agreement  with  Lord  Fermoy  and  his  friend  t^i 
sfer  U>  them  all  their  rights  under  the  preliminary  concession  and  the 
itive  concession  as  soon  as  obtained,  and  there  was  then  the  clause : 
k  copy  of  the  statutes  submitted  by  the  concessionaires  to  the  Im- 
i  Govem^nent  for  approval,  to  be  given  forthwith  to  the  assignees 
d  Fermoy  and  his  friend),  who,  so  far  as  the  concessionaires  are  am- 
ad,  hereby  agree  to  accept  them  as  they  stand ; "  and  it  was  further 
listed  that  the  definitive  concession,  when  obtained,  should  be  assigned 
em  free  from  all  conditions  other  than  in  the  agreement,  except  to 
to  the  plaintiff,  thirty  days  after  allotment  of  shares  in  the  baDk, 
000,  and  expenses,  which,  however,  by  the  subsidiary  agreement,  wslr 
ed  te  £20,000,  half  in  cash  and  half  in  shares  of  the  intended  bauk. 
^e2nd  of  September,  the  definitive  concession  was  issued  to  the  plain - 
with  a  copy  of  the  statutes  annexed,  as  approved  by  the  Grovemmeut, 
irhich  was  sent  te  the  defendants  at  once.  Li  this  copy  of  the  stattit*^ 
!  most  important  alterations  had  been  made, — one  was  by  the  insertion 

single  Ime  in  the  clause  providing  that  the  directors  might  pay 
^f  the  funds  of  the  company,  all  the  charges,  claims,  and  expejises 
rred  in  the  formation  of  the  company,  or  cbtaining  of  capital.  To 
)  the  Austrian  Government  added  these  words  : — *^  The  approval  of 
i  acts  (or  arrangements,  as  the  word  in  the  original  signifies)  is  re- 
ed to  the  first  general  meeting; "  and  they  further  added  a  claast' 
the  chairman  and  majority  of  directers  were  tebe  domiciled  in  Aust  nii, 
re  also  the  board  was  te  be  established  and  located,  and  the  first  ai^ 
cters  to  be  approved  by  the  Austrian  Government.  These  alterations 
i  not  observed,  and  the  prospectus  was  issued  by  the  defendants, 
ing  that  the  company  had  been  established  by  a  concession  on  the 
s  of  statutes  sanctioned  by  the  Grovemment,  and  upon  the  2nd  uf 
)ber,  1863,  the  allotment  of  shares  took  place.  At  the  end  of  the 
ith,  when  the  period  of  30  days  from  the  tune  of  allotment  was  al»oiit 
Lapse,  the  Austrian  directors  observed  the  alteration  as  te  the  allow- 
3  of  preliminary  expenses,  and  objected  to  it.  Ultimately,  on  the 
isal  of  the  Austrian  Government  to  waive  it,  they  withdrew  from  tUt^ 
panv.  The  Baron  and  Mr.  Lever,  after  the  2nd  of  November,  wh€D 
30  days  from  allotment  elapsed,  called  upon  Lord  Fermoy  and  bis 


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friend  to  accept  the  assign ment  of  the  definil 
the  £20,000  and  expenses.  Lord  Fermoy  ai 
willing  to  accept  the  concession  on  the  basis  oi 
at  the  time  of  the  agreement,  but  not  as  altere 
the  effect  that  he  and  Mr.  Lever  had  nothing 
the  statute  or  with  the  alteration,  and  that  th 
the  agreement  were  not  conditional  on  the  app 
stood.  Lord  Feimoy  and  his  friend,  in  effect, 
this  was,  in  substance,  the  dispute  between  th( 
pleadings  and  reserved  at  the  trial.  Lord  Fei 
the  concession,  clogged  as  it  was  with  the  alte 
the  concession  for  which  they  contracted,  that 
concession  on  the  basis  of  the  statutes  as  thei 
preliminary  concession  and  of  the  agreement, 
sued  for  the  refusal,  to  recover  the  £20,000  : 
Fermoy  set  up  the  granting  of  a  concession  o; 
statutes  as  a  condition  to  the  contract  to  accej 
for  it  the  stipulated  sum.  Such  was  the  subsi 
between  the  parties,  which  now  came  on  for  th 
Mr.  BoviU,  Q.C.,  Mr.  Mellish,  Q.C.,  and  M 
plaintiffs,  the  original  concessionaires,  that  th 
in  the  agreement,  and  that  the  defendants  we 
cession  when  obtained,  no  matter  how  the  s' 
argument  on  the  main  question  was  supported 
Mr.  Bovill  and  Mr.  Mellish,  and  it  was  now  < 
It  came,  in  substance,  to  this — ^that  their  cliei 
more  bound  than  the  defendants  to  obtain  the 
obtain  it  on  the  basis  of  the  statutes  as  they  si 
of  Lord  Fermoy  was  to  pay  the  money  when  tl 
and  they  were  bound  to  take  it  on  the  basis  c 
Government  might  choose  to  impose. 

Mr.  Lush,  Q.O.  (who  was  followed  by  Mi 
Garth),  was  lieard  on  the  part  of  the  defei 
his  friend,  and  argued  that  the  defence  the; 
His  argument,  in  substance,  was  that  they  coi 
statutes  as  they  stood  at  the  time  of  the  agr< 
time  of  the  agreement  a  set  of  statutes  had  bee 
Government  and  sent  to  Lord  Fermoy,  and  on 
alone  he  contracted.  Surely,  if  the  Austrian 
the  statutes  as  that  the  bank  coiQd  not  hav 
hope  or  prospect  of  success,  the  promoters  -% 
say,  '  This  is  not  the  concession  for  which  we 
not  a  contract  merely  for  the  preliminary  c 
conditional  and  could  be  nothing  unless 
definitive  concession  on  the  basis  of  the 
The  agreement  in  express  terms  said 
the  assignees  (the  defendants)  should  * 
they  now  stand.'^  This  surely  impUed  a 
should  not  be  materially  altered,  or  so  s 
interests    of     the     parties     contra^ing.       ^^ 

t'Satirt^^^^^  ^  *^«  ?^*^ 

^nnro««i^;  ^^^   Dierely    any    concession 

S^aTnZ"  ^P^^  those  statutes."^   It  was  a  a 
obtammg  of  such  a  concession  by  the  plain 


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n  it  was  to  be  and  was  actually  granted.  He  urged  that  the  "  allot- 
t  of  the  shares  in  the  bank''  meant  the  allotment  of  shares  in  the 
[  itself,  which  could  not  be  deemed  to  be  established  imtil  the  statutes 
)proved  were  accepted ;  but  upon  this  point  the  Court  were  strongly  of 
ktrary  opinion,  and  so  intimated.  He  then  fell  back  upon  the  main 
ment,  that  the  consideration  and  condition  on  which  the  money  was 
J  paid  was  not  merely  the  allotment  of  shares,  but  the  grant  of  a  con- 
on  on  the  basis  of  the  statutes  as  they  stood.  The  effect  of  the 
ations  introduced  by  the  Government  was  entirely  to  alter  the  con- 
tion  of  the  company.  There  was  to  be  a  majority  of  Austrian  directors, 
he  chairman  was  to  be  domiciled  in  Austria,  and  the  board  was  to  be 
ed  there,  and  the  first  six  directors  to  be  approved  by  the  Imperial 
Trnnent.  The  company  in  reality  was  to  be  made  entirely  Austrian 
brought  completely  under  the  control  of  the  Government,  and  the 
loters  on  the  part  of  the  English  shareholders  might  naturally  object 
is,  and  say  that  it  was  not  the  concession  they  contracted  for.  They 
acted  for  an  Anglo- Austrian  concession ;  they  got  an  Austrian  one. 
'  contracted  for  an  authority  in  the  directors  to  repay  themselves  pre- 
lary  expenses ;  they  got  it  subject  to  the  condition  of  an  assent  by  the 
rity  of  the  first  meeting  of  shareholders.  The  result  might  be  that 
would  have  to  pay  the  whole  out  of  their  own  pockets.  These  altera- 
were  introduced  by  the  arbitrary  intervention  of  sovereign  power 
)ut  the  will  of  either  party  to  the  contract.  Surely  they  materially 
3d,  and,  indeed,  did  away  with  the  subject  of  it.  Surely  the  concession 
acted  for  would  no  longer  be  in  substance  and  reality  the  same ;  and 
;,  then  the  plaintiffs  never  obtained  and  never  were  able  to  transfer  the 
ssion  which  was  contracted  for.  And  even  supposing  that  the  defen- 
i  were  liable,  for  what  damages  were  they  liable  ?  Not  for  the  whole 
nt,  for  half  was  to  be  paid  in  shares  of  the  bank,  which  vras  never 
3d,  so  that  such  shares  were  never  issued.  Ten  thousand  pounds  to 
id  in  such  shares,  therefore,  came  to  nothing.  The  defendants  never 
acted  that  the  bank  should  be  established.  It  never  was  established. 
b,  then,  had  the  plaintiffs  lost  1  The  shares  surely  were  nominal  and 
nd  the  amount  of  damages  ought  only  to  be  £10,000,  not  £20,000. 
'.  Kingdon  contended  that  as  the  whole  was  due  on  the  2nd  of  No- 
>er,  and  the  bank  did  not  fail  imtil  a  fortnight  later,  the  shares  could 
been  resold  next  day  for  the  full  value,  and  so  the  plaintiffs  were  en* 
L  to  the  whole  amount. 

e  Lord  Chief  Justice,  in  the  course  of  the  argument,  said  the  question 
1  be  whether  upon  the  construction  of  the  agreement  it  meant  that  the 
idants.  Lord  Fermoy  and  his  friend,  contracted  for  the  mere  inchoate 
s  of  the  plaintiffs,  the  concessionaires,  as  they  then  stood,  and  taking 
chance  as  to  the  approval  of  the  statutes  in  their  form  as  they  stood 
e  time  of  the  agreement,  or  whether  they  contracted  for  a  concession 
le  basis  of  the  statutes  as  they  stood,  and  so  on  condition  of  their 
)val  in  that  form.  That  the  shares  had  been  allotted  within  the  sense 
e  agreement,  although  the  bank  had  not  been  finally  established  (the 
»«ion  not  having  been  accepted  and  caiTied  out)  was  clear.  It  was 
the  asreement  used  the  words  "  shares  in  the  bsmk  "  (or  rather  "  the 
ided  '^  bank),  but  it  was  manifest  that  the  parties  meant  the  shares  in 
ompany ;  and  it  would  be  monstrous  to  construe  the  ^cement  in  any 
r  sense.  As  to  the  alterations  in  the  statutes,  their  precise  effect 
tt,  in  some  respects,  be  doubtful,  but  they  were  to  be  distinguished 
tiie  concession.    It  might  or  might  not  be  that  the  concession  was 


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to  be  on  the  basis  of  the  statutes  as  they  stood 
cession  was  one  thing,  the  statutes  were  anotl 
definite  concession — had  been  obtained.  Wasitco 
of  the  statutes  as  they  stood  ?  That  might  be  a  < 
Even  assuming  that  if  the  statutes  had  been  so 
object  of  the  concession — the  establishment  of 
carried  out,  the  jjartie^  would  have  been  discharge 
of  the  alterations  was  not  to  interfere  with  the  \ 
cession,  however  it  might  in  some  degree  materi; 
the  defendants,  the  assignees  ?  And,  again,  althou 
had  objecte<l  ultimately  to  one  of  the  alterations, 
.objected  until  the  time  for  payment  had  arrived 
had  accepted.  They  had  issued  prospectuses  stati 
had  been  obtained  on  statutes  sanctioned  by  the  C 
allotted  the  shares  a  month  after  receiving  the  sti 
had  allowed  the  thirty  days  after  allotment  to  elap 
to  the  statutes.  Might  not  all  this  be  evidence 
statutes  as  altered,  and  thus  leave  the  contract  ob 
that  they  miglit  have  been  objected  to  or  rejected 
new  contract  implied  from  the  acceptance  of  the  s 
to  pay  on  the  basis  of  the  original  one  ?  Or  was 
by  mutual  assent.  Surely  there  had  been  an  a 
statutes.  The  Baron  and  Mr.  Lever  were  still  box 
alteration  of  the  statutes,  the  defendants  having 
altered.  If  not,  how  could  the  defendants  throw 
Mr.  Justice  Crompton  likewise  obsei-ved  in  the 
that  the  utmost  the  defendaDts  could  contend  wa 
voidable  by  them  on  account  of  the  non-approval 
going  a  great  way  to  concede  even  that,  for  the  ge] 
that  a  matter  could  not  be  deemed  a  condition  pre< 
made  in  the  contract),  imless  it  went  to  the  wli 
so  as  to  raise  a  defence  of  total  failure  of  the  coi 
that  doctrine  it  must  appear  that  the  alteraitoi 
the  concessioD  wholly  valueless.  It  could  not,  ] 
that  view,  that  the  contract  was  necessarily  nuU 
the  contract  was  not  nullified  as  regarded  both  p 
and  Mr.  Lever  ooidd  not  throw  it  up,  and  the  u 
for  Lord  Fermoy  and  liis  friend  was  that  they  i 
in  a  reasonable  time.  But  they  had  not  done  i 
though  they  had  accepted  the  statutes  as  alter 
nothing  to  show  that  they  rejected  them  until  i 
elapsed  or  was  just  about  to  elapse.  A  party  ] 
reasonable  time  to  reject  a  contract,  supposing 
reject  it ;  but  here  the  defendants  not  only  (J 
reasonable  time,  but  actually  accepted,  or  went  o; 
Mr.  Justice  Sheo  made  several  observations  to  t 
The  Lord  Chief  Justice  towards  the  close  of  the 
the  strongest  way  of  putting  the  defence  was  that, 
statutes  the  preliminary  expenses,  including  this  i 
of  the  fimds  of  the  company,  the  Government  h 
totally  new  by  which  the  whole  might  have  to  be 
That  was  the  strong  ix)int  of  the  defence — whethei 
tion  was  such  as  substantially  to  change  the  nature 
the  constitution  of  the  company  and  the  positio 


:i;'^ 


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Legal  Miscellany, 


823 


must  be  borne  in  mind  tliat  the  agreement  was  not  to 

3  of  the  compiiny,  nor  was  it  conditional  on  the  money 

f  those  funds,  but  was  the  personal  engagement  of  the 

da.nts. 

aving  concluded, 

ustice  said  the  ca^ne  was  one  of  very  considerable  im- 

ourt  would  take  time  to  consider  their  final  judgment. 


:-DATED  CHEQUES. — AUSTIN  V.  BU>TA11D. 

ed  by  the  Court  of  Queen's  Bench  in  banco,  on  the  26th 
sent  being  the  Lord  Chief  Justice  and  Justices  Crompton, 

.  on  a  post-dated  cheque  for  £200.  It  was  made  and 
ud  of  June,  but  was  dated  a  mouth  later — the  22nd  of 
ct  it  would  not  be  payable  until  a  month  after  date,  as 
dra^-n,  and  in  point  of  fact  it  was  not  takeu  by  the 
de  holder  for  full  value)  until  after  the  month  had 
Ly  bore  a  penny  stamp  ;  the  stamp  fixed  by  a  late  Act 
L  for  the  amount  payable  a  month  after  date  would  have 
igher  stamp,  and  at  the  trial  before  the  Lord  Chief 
ion  was  taken  that  by  a  very  early  statute,  31st  of 
irst  imposing  duties  on  bills — it  was  enacted  that 
should  be  invalid  and  imavailable,  and  all  subseciuent 
ng  the  one  imposing  a  penny  stamp  duty  on  cheques, 
l1  penalties,  forfeitures,  <kc,,  in  previous  Acts,  and  that, 
le  was  invalid.  Several  judges  had  already  allowed  the 
;  Mr.  Justice  Hill,  Ijttely  a  judge  of  this  Court ;  and  the 
,  in  deference  to  these  authorities,  also  allowed  the  ob- 
be  point  however,  for  the  final  opinion  of  this  Court. 
HOD  Pleas,  however,  in  a  case  of  '*  Whistler  v.  Foster," 
s  alluded  to,  declared  the  objection  untenable.  The 
1  of  these  opi)Osite  views  was  to  be  upheld  and  adliered 

X.  Laxton  argued  for  the  defendant, 
d  argued  for  the  plaintiff,  and  admitted  that  before  the 
a  stiuiip  duty  on  cheques,  the  objection  was  valid,  it 
I  in  a  case  of  "  Field  v.  Wood"  (7,  Adolphus  and  Ellis's 
►urt,  in  Lord  Demnan's  time.  In  the  result, 
jd  in  favour  of  the  plaintiff,  in  deference,  apparently, 
he  Common  Pleas. 

Justice  said,  in  giving  judgment,  that  it  was  not  neces- 
vhether  the  Legislature  intended  to  make  the  instru- 
)  void.  He  rather  thought  that  it  was  so  intended,  and 
satisfied  with  the  rea.%ons  given  in  the  case  referred  to  ; 
on  the  Court  until  reversed  in  error,  and,  therefore, 
J  entered  for  the  plaintiff. 

d  Judges  concurred, — Judgment  for  the  plaintiff, 
ow  be  taken  to  be  settled,  until,  at  all  events,  it  is  carried 


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INJURY    TO     CUEDIT    BY   NON-PAYMENT  OP  A   CHEQi: 

ALLIANCE     BANK. 

This  case  was  tried  before  Mr.  Justice  Mellor,  ii 
Bencli,  on  the  6th  June. 

It  was  an  action  to  recover  damages  in  consequ 
credit  having  been  injured  through  tlie  non-paym< 
defendants  pleaded  that  they  had  no  assets  applic 
the  cheque  when  it  was  presented  for  payment. 

Mr.  Serjeant  Parry  and  IVIr.  Harry  Palmer  ^ 
plaintiff;  Mr.  Hawkins,  Q.C.,  and  ]Vlr.  Hannen 
defendauts. 

The  plaintiff  was  a  general  provision  merchant,  c 
Wliitechapel.  He  had  had  an  account  at  the  defer 
two  years.  On  Saturday,  the  4th  March,  he  drew  a 
in  favour  of  Messrs.  Hayman,  and  on  the  Mondi 
that  it  had  been  returned  impaid.  On  the  Saturdo 
for  £25  before  half -past  ten  o'clock,  and  it  was  ej 
as  cash,  £25.  On  Monday  he  gave  his  father  abo^ 
pay  into  the  bank  for  him.  This  was  the  first  t 
with  Messrs.  Hayman,  and  in  consequence  of  the  i 
casli  the  cheque,  they  had  not  had  any  further  d( 
father's  cheque  was  lent  to  him  about  ten  o'clock  < 
iiig,  and  he  paid  it  into  the  bank  himself.  The  cl 
"Wednesday,  but  it  was  not  to  be  presented  befo 
cheque  was  paid  about  a  quarter  past  one  o'cl 
morning. 

]VIr.  Hayman  was  called.  He  stated  that  the  c 
him  endorsed,  "  Effects  not  cleared."  He  presentc 
time  at  eleven  o'clock  on  Monday  morning,  when  h 
again  in  ike  middle  of  the  day.  He  called  again  ab< 
call  a  third  time  about  one  o'clock,  when  it  was  pa 
were  awaiting  the  return  of  the  collecting  clerk. 

Mr.  Justice  Mellor  said  it  was  evidently  a  mist 
bank,  and  it  was  a  case  that  might  very  well  be  arri 

Mr.  Hawkins  said  unfortimately,  by  some  mistai 
the  £55  did  not  find  its  way  into  the  bank  books. 

Ultimately  a  juror  was  withdrawn,,  the  defen 
indemnify  the  plaintiff  from  all  taxed  costs. 


ALLEGED  FRAUDULENT  REPRESENTATION   WITH  REGj 
OF   A  FIRM — WATTS   AND   OTHERS   V. 

This  case  was  tried  in  the  Court  of  Queen's  Bench, 
Justice,  on  the  16th  May. 

Mr.  M.  Chambers,  Q.C.,  and  Mr.  Wills  appeared 
Coleridge,  Q.C.,  Mr.  Hance,  and  Mr.  B.  T.  William 
defendant. 

The  plaintiffs  (Sir  Samuel  Watts  and  Co.)  are  \ 
warehousemen,  and  they  sued  Mr.  John  Lewis,  the 
brokeshire  Bank,  at  Haverfordwest,  under  these 
young  men,  Isaac  Lewis  and  Neville  Harris,  had  be 
c;  a  Mr.  Warren  Carter  for  some  time  as  assistants 


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i  and  woollen  draper.  On  the  12th  of  September,  1863,  au  agreement 
made  between  Carter  and  Messrs.  Harris  and  Lewis  that  they  should 
upon  themselves  the  indebtedness  of  Mr.  Carter,  and  become  the  pur- 
in  of  the  stock,  fixtures,  fomitore,  and  goodwill  at  a  valuation.  It 
likewijie  agreed  that  Messrs.  Harris  and  Lewis  should  accept  two 
hs  bills  for  £26. 135.  4(2.  each,  to  the  total  amount  of  £1,280,  and 
a  lease  of  the  premises ;  that  Mr.  Carter  should  undertake  not  to 
'  on  business  within  a  certain  distance ;  and  that,  in  the  event  of  the 
:  not  being  worth  £500  more  than  Mr.  Carter's  debts,  he  should  bring 
stock  goods  to  the  value  of  the  deficiency.  As  matters  turned  out, 
I  was  only  about  £370  of  stock  over  and  above  the  amount  of  Mr.  Carter's 
I,  and  Mr.  Carter  drew  bills  to  the  amoimt,  which  were  subsequently  met 
returned  to  Messrs.  Harris  and  Lewis  by  the  defendant  as  manager  of 
ank.  Early  in  October  Messrs.  Harris  and  Lewis  went  to  London  to 
lase  goods,  and  they  gave  references  to  Mr.  John  Lewis,  the  defendant, 
le  6tia  of  October  the  plaintiffs  wrote  to  Messrs.  Walters,  of  the  Pem- 
ishire  Bank,  in  these  terms :  "  We  are  referred  to  you  by  Messrs. 
I,  Harris,  and  Co.,  Haverfordwest,  and  shall  feel  obliged  by  the  best 
nation  in  your  power  as  to  their  means  and  respectability  in  business."' 
lefendant,  who  had  been  their  manager  for  twenty-two  years,  wrote 
)ly :  "  We  have  made  particular  inquiries  respecting  this  firm,  and 
e  informed  that  their  capital  is  £600.  Mr.  Carter  has  left  £500  in 
usiness  in  addition,  on  a  bond,  payable  by  instalments  of  £100  per 
ifter  tlie  expiration  of  eight  years,  free  of  interest.  They  seem  very 
:table  and  good  men  of  business."  Upon  the  receipt  of  this  reply 
"8.  Watts  forwarded  goods  to  the  value  of  about  £100,  and,  as  Harris 
■ewiB  subsequently  failed,  they  sought  to  recover  the  amount  from  Mr. 
Lewis,  the  bank  manager,  upon  the  ground  that  in  this  letter  he  had 
y  and  fraudulently  represented  that  Messrs.  Harris  and  Lewis  were 
I  £500,  and  that  Mr.  Carter,  to  whom  they  succeeded,  had  left  £500 
)  concern.  In  March,  1864,  Messrs.  Harris  and  Lewis  made  a  com- 
on  with  their  creditors,  and  in  the  following  month  Mr.  Carter 
le  bankrupt. 

3  case  for  the  plaintiffs  was  that  Mr.  Carter,  who  had  been  in  partner- 
prith  a  Mr.  Davis,  was  owing  the  bank  more  than  £3,400  in  Soptem- 
863,  and  that  by  the  time  Messrs.  Harris  and  Lewis  stopped  payment 
)bt  had  been  reduced  to  £2,500 ;  that  the  bank  kept  the  new  firm  in 
;  for  the  purpose  of  obtaining  that  advantage;  and  that  it  was  with 
riew  the  manager  had  written  the  letter  of  the  10th  of  October,  well 
Lng  then  that  the  representations  were  substantially  untrue. 

9  case  for  the  defendant  was,  that  he  acted  in  good  faith  and  that  he 
the  statement  in  question  upon  information  which  he  honestly  be- 
I  to  be  true  and  correct.  He  wished  to  suppress  no  material  fact, 
r  was  to  receive  one-third  of  the  profits  for  eight  years,  but  that  was 
urn  for  his  services,  as  manager  of  the  business.    As  a  proof  that  he 

10  fraudulent  intention  in  concealing  it,  he  referred  to  the  fact  that 
itter  to  Messrs.  Hitchcocks  contained  it,  and  alleged  that  it  was 
ed  from  the  letter  to  the  plaintiffs  by  pure  accident.  At  the  date  of 
iter,  he  supposed  Carter  to  be  solvent.  His  liabilities  to  the  bank 
aeccnred  not  only  by  himself,  but  also  by  the  firm  of  Carter  and  Davis, 
supposed  to  be  solvent,  and  by  other  substantial  parties^  and  that 
jh  afterwards  Davies  (Carter's  partner)  put  in  a  daim  against  Carter 
,000,  at  that  time  it  appeared,  from  an  account  rendered  by  Davies 
alf,  tiiat   Davies   owed   Carter    nearly    £1,000.     The    defendant 


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relied    upon    tlio    fact    that    Lewis    anil    Harris 

assured  him,  when  he  made  specijvl  inqvUries  from 

answering  plaintitTs'  letter,  that  the  partners  broi 

Carter  left  ^500  represented  by  stock,  on  the  ten 

lieved  those  statements,  luid  he  believes  now  that 

and  as  proof  of  his  belief  in  tlie  statements  made 

having  the  capital  which  they  represented  to  him 

m  it  ted  them  to  overdraw  their  account  at  the  bank 

£125.     He  said  that  Lewis  had  married  a  womai 

and  that  Harris  had  saved  in  business,  and  tha 

£500  were  made  up.     Ho  said  the  question  of  tlie 

sequent.     The  date  of  the  letter  was  October  1< 

never  came  to  his  knowledge  before  December 

matter    of    fact  they   were  not  in  existence  be{ 

and    could    not    therefore    have    operated    upon 

wrote     the     letter    in    question.     They     were 

lowing  circTimstances.     Cai-tor  was  short  of  money 

the  one- third  of  the  profits  for  eight  years,  capi talis 

that  he  might  raise  some  money  u])on  them.     The 

was  taken  as  being  equivalent  to  £1G0  per  annuni 

eight,  made  £1.280,  the  sum  for  which  the  bdls  \ 

were  to  run  over  the  eight  years.     Carter  brough 

in  two  batches,  one  in  December,  and  one  in  Ja 

was  allowed  to  draw  small  sums  upon  them.     Whe 

on  October  10th,  the  defendant  knew  notliing  of  an; 

of  the  kind.     And  to  show  his  good  f aitli  he  openec 

that  day  with  the  young  firm,  on  wliich  the  ba 

plaintiffs  in  this  case  have  lost  by  their  failure. 

After  the  examination  of  scvend  witnesses  on  be 

Mr.  Coleridge  summed  up  the  case  for  the  defcn 

Mr.  Chambers  replied. 

The  Lord  Chief  Justice  in  summing  up,  said  :  ( 
in  proceeding  to  consider  the  evidence  with  referei 
you  have  to  pronounce,  I  need  not  tell  you  that  it 
you  shoidd  rightly  apprehend  the  nature  of  tli< 
will  have  to  give  your  verdict.  It  does  not  fc 
effect  of  the  letter  written  by  the  defendant 
the  plaintifts  to  part  with  their  goods,  whereby  th( 
cUd  not  get  their  money,  unless  other  things  ; 
plaintilTs  are  entitled  to  the  verdict.  This  is  not  a 
them  and  this  defendant.  It  is  not  a  case  of  warrj 
takes  in  the  representation  that  he  has  made,  that 
true,  and  that  he  will  abide  by  the  result  of  it.  V 
to  state  what  he  knows  of  another  man's  solvency, 
party  making  the  inquiry,  he,  in  giving  an  answer 
you,  enters  into  no  contract.  All  he  is  boimd  to  d( 
lieves,  and  if  he  takes  upon  himself  to  make  ai 
party,  all  that  he  is  called  upon  is  to  make  what  h 
presentation.  If  he  does  so,  however  wrong  he  ma 
ness  of  his  statement,  and  however  serious  the  los 
on  the  parties  making  the  inquiry,  and  receiving  t] 
bound  to  do  is  to  take  upon  himself  the  office  of  gi 
the  state  of  the  party  faithfully,  according  to  hii 
The  question  you  have  to  consider  here,  is  whetl 


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3  by  the  defendant,  Mr.  Lewis,  were  honest,  according  to  his  belief,  or 
her  they  were  fraudulent  misrepresentations  in  this  sense,  that  they 
faUe  as  regards  his  knowledge  and  belief  of  the  subject,  and  intended 
oeire  the  plaintiffs,  because  upon  that,  if  the  spirit  of  the  representa- 
that  was  made,  and  the  effect  of  it,  was  to  deceiYe  them  by  that,  the 
idfis  are  entitled  to  reooyer.  His  Lordship  then  went  through  the  evi- 
>  at  length,  commenting  upon  it  as  he  proceeded,  and  said  in  conclusion, 
question  is,  whether  there  be  fraud  first  by  suppressian,  then  by 
ion  to  state  facts,  and,  secondly,  was  there  an  intention  to  deceive. 
>se  facts  arQ  made  out,  the  plaintiif  is  entitled  to  your  yerdict ;  if  not, 
efcoid&nt  is  entitled  to  your  verdict.  In  order  that  you  may  have  all 
arioufl  parts  of  the  case  presented  to  your  mind,  I  have  put  it  on 
in  this  form .  First,  was  there  any  misrepresentation  as  to  the  capital 
wis  and  Harris  being  £500,  or,  secondly,  as  to  Carter  having  left 
in  the  business  ?  If  so,  did  the  defendant  believe  such  representa- 
OT  either  of  them,  to  be  untrue  7  And,  if  so,  did  the  d^andant  make 
representations  with  intent  to  induce  the  plaintifis  to  trust  Lewis  and 
fl  ?  And  were  theplaintiffs  induced  to  trust  Lewis  and  Harris  by 
representations  ?  Was  the  fact  of  Lewis  and  Harris  being  under 
ty  to  pay  Carter  £26.  13«.  4kd,  every  two  months  for  eight  years  a 
ial  circumstance  which  should  have  been  communicated  to  the  plain- 
1  a  representation  as  to  Lewis  and  Harris's  means  and  respectability 
iiness  ?  If  so,  was  the  omission  intentional  or  accidental  ?  If  inten- 
,  was  the  motive  of  the  defendant  in  omitting  it  to  induce  the 
iffs,  from  their  ignorance  of  it,  to  trust  Lewis  and  Harris  ?  And, 
ntaJly  to  the  fifth  question,  I  ask  you  to  consider  whether  it  may 
ably  be  presumed  that  if  the  plaintiffs  had  known  of  the  liability  in 
on,  they  would  have  declined  to  trust  Lewis  and  Harris.  I  have 
on  paper.    [Paper  handed  to  tjie  jury.] 

Chambers — I  am  obliged  to  your  lordship  for  taking  that  trouble, 
e  jury  retired,  and  after  an  absence  of  about  half  an  hour  returned 
)urt.] 

Assodate — Grentlemen,  have  you  agreed. 
Foreman — Yes,  we  have.    [Handing  in  the  paper.] 
Lord  Chief  Justice — ^You  have  answered  the  questions  as  to  the  two 
of  misrepresentation,  both  of  them  in  the  affirmative.   Also  that  the 
iant  believed  them  to  be  untrue.  That  the  intention  was  to  induce  the 
iffs  to  trust  Lewis  and  Harris,  and  that  they  were  induced  to  trust, 
ben  the  fact  of  Lewis  and  Harris  being  under  a  liability  to  pay 
'  the  £26. 139. 4<l.  every  two  months,  was  a  material  circumstance  to 
»een  known.    That  the  omission  was  intentional;  that  it  was  to 
I  the  plaintifEs  to  trust  Lewis  and  Harris.  Therefore,  that  is  a  verdict 
the  issues  for  the  plaintiff. 
Chambers— The  verdict  will  be  for  £122. 
Lord  Chief  Justice — Of  course,  I  stay  execution  on  all  points. 
Haaoe — ^Perhaps  it  is  not  very  material,  but  I  thought  the  sum  was 
to  be  £100.    They  were  entitled  to  their  dividend. 
Chambers — ^Mr.  Hance  and  I  can  arrange  all  that. 
Hance— It  was  arranged  to  be  £100,  if  the  dividend  had  not  been 
sd. 

Lord  Chief  Justioe— I  think  that  was  so. 

Chambers — ^If  the  dividend  has  not  been  received^  we  will  reduce 
100. 


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828  Legal  Miscellany. 

Mr.  Hance — With  a  stay  of  execution 
The  Lord  Cliief  Justice— Cei-tainly. 


On  the  20th  of  May,  in  banco,  before  the  L( 
Justices  Crompton,  Blackburn,  and  Shee. 

Mr.  B.  T.  Williams,  in  the  absence  of  Mr.  Coleri 
rule  calling  upon  the  plaintiffs  in  the  above  case  to 
trial  should  not  be  granted,  on  the  ground  that  the 
weight  of  evidence.  The  learned  counsel  then  I 
points  in  the  case,  when  he  was  stopped  by  the  cou 

The  Lord  Chief  Justice  said,  "  1  think,  Mr.  Wi 
to  a  rule  nisi.  I  was  very  much  startled  at  the  ve: 
been  much  better  pleased  if  it  had  been  the  other 

Rule  nisi  was  granted  for  a  new  trial. 

With  reference  to  this  case  the  following  lette 
the  proprietors  of  the  bank  to  a  local  journal : — 

PeMBROKESHIEE  BAlfK. 

HaverfordTi 
{To  the  Editor.) 

Sir, — ^We  feel  it  due  to  ourselves  and  to  Mi 
manager,  to  remove  any  erroneous  impressions 
friontls  and  clients,  and  also  of  your  readers  in  g 
"  Watts  V.  Lewis  "  was  a  personal  one,  agaiust  Mr 
directed  against  the  bank,  and  Mr.  Lewis's  name  apj 
circumstance  that,  in  the  absence  of  our  Mr.  Wall 
to  Messrs.  Watts  <fe  Co.,  in  October,  1803,  previou 
manager.  We  feel  assured  that  all  readers  of  the  j 
agree  that  right  and  justice  are  on  our  side,  althou 
us;  and  we  beg  to  say  that,  following  the  stn 
the  Lord  Chief  Justice,  we  have  appealed  to  th 
Our  desire  in  this  matter  is  to  place  the  full  fact 
public,  in  justice  to  ourselves  and  our  manager, 
and  ability  entitle  him  to  oiur  highest  respect  a 
founded  upon  our  intimate  knowledge  of  him  du 
years.  The  facts  brought  out  in  this  action  will  1 
tion  of  him,  and  we  are  certain  the  public,  no 
admire  his  conduct  throughout,  both  in  this  and  o\ 

We  are,  Sii 
Youi 


IN  THE  MATTER  OF  THE  COMPANIES  ACT  1862 
HINDUSTAN,  CHINA  AND  JAPAN  (lIMITED),  BX 
LOS. 

This  case  came  before  the  Master  of  the  Rolls 
the  23rd  June. 

Mr.  Baggally  and  Mr.  A.  G.  Marten  moved  i 
Companies  Act,  1862,  sec.  35,  that  the  registe 
bank  might  be  rectified  by  omitting  therefrom  th 
member  of  the  company,  holding  102  shares,  un( 


i 


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tober,  1864.  The  case  rested  principally^  upon  the  oonstmction  of 
list  section  of  the  Act.  It  appeared  that  on  the  22nd  of  April,  1864^ 
t-stock  banking  company  was  registered  by  the  name  of  the  Imperial 
of  China,  In<&%  and  Japan,  Inmited,  and  that  Mr.  Los  became 
gistered  holder  of  102  shares  of  £50  each,  and  paid  £5  per  share^ 
iting  to  £510.  In  the  summer  of  the  year  1864  negotiations  were 
d  into  between  the  board  of  directors  of  the  Imperial  Bank  of  China, 
and  Japan  and  the  board  of  directors  of  the  Bsmk  of  Hindustan,  for 
algamation  of  the  Imperial  Bank  with  the  Bank  of  Hindustan.  The 
bank  was  registered  in  1862,  and  its  capital  was  divided  into 
of  £100  each.  On  the  28th  of  July,  1864,  the  manager  of  the 
lal  Bank  forwarded  to  their  shareholders  a  circular  stating  that  the 
itions  for  an  amalgamation  had  been  brought  to  a  successful  issue, 
at  as  early  as  practicable,  in  accordance  with  the  articles  of  associa- 
n  extraordinary  general  meeting  of  the  shareholders  of  both  com- 
would  be  convened  to  confirm  the  arrangements,  previous  to  which 
ails  of  terms,  (be,  would  be  laid  before  the  shareholders.  This  cir- 
was  followed  by  another,  dated  the  10th  of  August,  1864,  stating 
stance  the  terms  of  amalgamation,  of  which  the  first  was  that 
new  shares  of  £100  each  of  the  Bank  of  Hindustan  were  to  be 
to  the  holders  of  the  20,000  shares  of  £50  each  in  the  Imperial 
The  issue  was  to  be  at  a  premium  of  £6  per  share,  and 
IT  share  of  the  premiunL  to  be  placed  to  the  reserve  fund 
United  Bank,  and  the  remaining  £1  per  share  was  to   be  ap- 

0  pay  off  preliminary  expenses.  On  the  25th  of  August  and  the 
i  September,  1864,  '^  extraordinary  general  meetings  '^  of  the  Impe- 
Eink  were  held,  at  which  resolutions  were  adopted  approving  an, 
lent  of  the  24th  of  August,  1864^  between  the  two  banks,  for  the 
imation,  and  directing  that  the  Imperial  Bank  be  wound  up  volun- 
and  appointing  liquidators  for  the  purpose.  A  further  resolution 
bpted  to  the  effect : — ''  That  the  liquid[ators  be  authorised  to  receive 
ipensation,  or  part  compensation,  for  the  business  and  property  of 
mpany,  the  Imperial  Bank  shares  in  the  Bank  of  Hindustan,  upon 
ms  specified  in  the  agreement ;  and  if  any  member  shall  express  his 

1  from  this  resolution  by  a  notice  in  writing  to  the  liquidators  not 
an  seven  days  after  the  meeting  at  which  the  resolution  is  passed, 
ould  require  the  liquidators  to  purchase  the  interest  of  such  dis- 
it  member,  the  liquidators  shall  raise  the  purchase-money  to  be 
\  Buch  dissentient  member,  by  the  sale  of  share  or  shares  in  the  Bank 
dustan  which,  under  the  terms  of  the  agreement,  would  have  been 
d  to  such  dissentient  member."  It  will  1^  perceived  that  this  resolu> 
»s  evidently  framed  in  view  of  the  161st  section  of  the  Companies  Act, 
ms  of  which  are  as  follows  : — "  Where  any  Company  is  proposed  to 
s  in  the  course  of  being  wound  up  altogether  voluntarily,  and  the 
or  a  portion  of  its  business  or  property  is  proposed  to  be  transferred 
I  to  another  company,  the  liquidators  of  the  first-mentioned  company 
rith  the  sanction  of  a  special  resolution  of  the  company  by  whom 
^ere  appointed,  conferring  either  a  general  authority  on  the  liquida- 
*  an  authority  in  respect  of  any  particular  arrangements,  receive  in 
nsation,  or  pai*t  compensation,  for  such  transfer  or  sale,  shares,. 
!8,  or  other  liJke  interests  in  such  other  company,  for  the  purpose  of 
|ution  among  Uie  members  of  the  company  being  wound  up,  or  may 
into  any  other  arrangement  whereby  the  members  of  the  company 
woundup  may,inlieu  o|  receiving  cash,  shares,  policies,  or  other  like. 


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5130  Legal  Miscellany, 

interests,  or  in  addition  thereto,  participate  in  t! 

any  other  benefit  from  the  purchasing  company 

arrangements  entered  into  by  the  liquidators  in  p 

shall  be  binding  on  the  members  of  the  company 

to  the  proviso  that  if   any   member  of  the  con 

who     has    not    voted     in    favour    of    the    sj 

by  the  company  of  which  he  is  a  member,  at 

held  for  passing  the  same,  expresses  his  dissent  f 

solution  in  writing,  addressed  to  the  liquidators. 

at  the  registered  office  of  the  company  not  later  1 

tlate  of  the  meeting  at  which  such  special  res< 

dissentient  member  may  require  the  liquidators  t 

things,  as  the  liquidators  may  prefer — that  is  to  s; 

carrying  such  resolution  into  effect,  or  to  purch 

such  dissentient  member  at  a  price  to  be  determi 

mentioned,  such  purchase  money  to  be  paid  be 

solved,  and  to  be  raised  by  the  liquidators  in 

determined  by  special  resolution.     So  special  ry 

invalid  for  the  purposes  of  this  section  by  reaso 

cedently  to,  or  concurrently  with,  any  resolu 

company,  or  for  apix)inting  liquidators  ;  but  if  a 

a  year  for  winding  up  the  company  by  or  subject 

court,  such  resolution  shall  not  be  of  any  validi 

by  the  court."     Mr.  Los  did  not  attend  either 

not  assent  to  the  resolutions.     On  the  other  hai 

dissent  within  seven  days  according  to  the  te 

Upon  these  resolutions  being  adopted,  Mr.  Los  r« 

of  the  Bank  of  Hindustan  a  circular  informing 

102  shares  in  the  Imperial  Bank  he  was  enti 

arrangement,  to  an  allotment  of  a  like  number 

HindiLstan  at  £6  per  share,  and  that  the  directi 

had  paid  on  his  account  to  the  Bank  of  Hindustj 

£5  per  share  on  account  of  deposit  to  be  paid 

"  To  entitle  you  to  the  above  option,  you  mus 

and  transmit  the  same  to  this  bank  on  or   b 

"  The  form"  was  a  form   of   application   for  tl 

altered  the  form  and  signed  it  as  altered,  but 

refused  to   accept   the   form  in   its  altered  stj 

turned  it  to  Mr.  Los,  with  a  letter,  saying,  "  Y< 

shares  on  the  terms  specified,  or  decline  them  ali 

some  delay,  during  which  the  shares  in  the  Bank 

to  the  evidence,  fell  from  the  price  of  £31  per  s 

£26  per  share,  wrote  to  the  secretary,  declini: 

shares.     In  the  meantime,  and  on  the  12th  of  ( 

Los  was  entered  on  the  register  of  shareholders 

as  the  holder  of  102  shares.     Notice  of  the  allc 

been  previously  sent  to  Mr.  Los  on  the  26th  c 

bank  afterwards  demanded  chills  on  these  share 

feited  for  non-payment  of  calls.     The  present  mc 

36th  section  of  the  Companies  Act,  1862,  which 

being  rectified,  "  if  the  name  of  any  person  is, 

entered  in  or  omitted  from  the  register,  or  if  del 

sary  delay  takes  place  in  entering  on  the  regis 

liaving  ceased  to  be  a  member."    A  prelimiuary 


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Lob's  case  was  within  the  section,  inasmnch  as,  although  he  had  been, 
as  not  now  entered  on  the  register  in  respect  of  the  102  shares,  he 
Dg  ceased  l|y  the  forfeitare  of  the  shares  to  be  entered  in  respect  of 
I.  This  objection  was  overmled,  and  the  motion  was  heard.  Li 
ort  of  the  motkm  It  was  contended  that  Mr.  Los  was  entitled  to  have 
egister  rectified,  inasmuch  as,  although  the  shares  were  forfeited,  he 
d  appear  by  the  register  in  its  present  st^te  to  be  liable  for  the  calls 
rears  st  the  time  of  f  orf  eitnre,  azid  also  to  be  liable  as  a  contributory 
e  eompany  should  be  wound  up.  The  16l8t  section  never  oontem- 
d  thai  a  shareholder  in  one  company  should  be  bound  to  undertake  a 
ity  in  another  oompauy.  If  so,  a  shareholder  in  a  limited  company 
>aid-up  share  might  be  bound  to  take  in  compensation  any  number  of 
8  of  any  amount  in  an  unlimited  company.  The  agreement  for 
gamaiionwas  not  in  any  way  binding  upon  Mr.  Los. 
:.  Selwyn,  Mr.  Jessel,  and  Mr.  Eddis  appeared  for  the  Bank  of  Hin- 
Ji,  and  stated  that  the  question  was  one  of  great  importance,  as  there 
other  shareholders  in  the  position  of  Mr.  L^.  They  argued  that  Mr. 
ras  bound  by  the  resolutions  under  the  IGlst  section,  ft  was  absurd 
t  extreme  cases  of  what  might  possibly  happen  under  this  section ; 
ifegoard  was  that  any  resolutions  to  be  binding  must  be  adopted  at  a 
"al  meeting  by  a  majority  oi  three-fourths  of  the  members  present  in 
n,  or  by  proxy,  and  must  be  confirmed  by  a  subsequent  general 
ng  by  a  simple  majority.  At  aU  events,  Mr.  Los  was  bound  by  his 
act,  and  there  was  no  more  hardship  in  holding  him  bound  by  it 
in  making  a  partner  liable  to  the  engagements  of  his  firm  to  the  full 
t  of  his  fortime. 

s  Honour,  without  calling  for  a  reply,  held  that  Mr.  Los  was  entitled 
ye  the  register  rectified.  Lidependently  of  the  Act,  it  was  the  un- 
ioned  law  of  the  coimtry  that  a  company  could  not  bind  its  members 
to  eompel  them  to  become  shareholders  in  another  company,  and  the 
rity  could  not  bind  the  minority  for  that  purpose  in  the  absence  of 
cial  contract.  If  the  Legislature,  by  the  161st  section,  intended  to 
the  law  upon  that  subject,  it  would  have  done  so  in  express  words, 
inestion  was  whether,  under  the  161st  section,  a  non-assentient  share- 
T  of  one  company  could  be  compelled  to  become  a  shareholder  of 
ler  with  which  he  had  nothing  to  do,  and  of  which  he  might  strongly 
prove.  What  would  be  the  result  of  such  a  state  of  things  ?  A  man 
t  have  taken  shares  in  a  limited  comxMmy  where  the  shares  were  of 
amount,  and  was  he  under  this  section  to  be  compelled  to  become  a 
holder  in  an  unlimited  company  where  the  shares  were  of  large 
nt  ?  Soeh  a  construction  would  not  only  be  forced  and  violent  in  an 
me  degree,  but  also  be  really  unwarranted  by  anything  in  the  section 
.  It  was  to  be  observed  that  the  compensation  under  this  section  is 
out  as  a  benefit,  and  you  cannot  compel  a  person  to  take  a  benefit 
he  does  not  choose  to  accept.  There  was  nothing  in  the  section  which 
«lled  a  non-assenting  shareholder  to  take  shares  in  another  company. 
»ugh  Mr.  Los,  as  well  as  all  the  shareholders,  might  be  included  in 
CTangwnent,  he  was  not  bound  to  take  advantage  of  it  whether  he 
dor  nou  This  court  not  only  had  power,  but  was  bound  to  entertain 
[uestion  of  the  rectification  of  the  registry  upon  a  simmiary  application 
r  the  35&  section.  Its  object  was  obviously  to  prevent  a  quantity  of 
mion  which  might  otherwise  arise. 


I 


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|iaixking  auir  Cnmincrrh 

BILLS  AND  PROMISSORY 
In  WilHams  v.  Jarrett  (5  Bam.  and  A 
iinder  the  55  Geo.  III.,  cap.  184,  sec.  12, 
bill,  the  date  borne  by  the  bill  on  the  f 
date  when  it  was  actually  made,  is  to  be  ] 
means  clear,  from  what  fell  from  the  coi 
"  Austen  v.  Bunyard"  (6  New  Report  202] 
had  now  to  be  decided  de  novOj  it  would 
ance  with    "William  v.  Jarrett*';   beci 
Cockbum,  Chief  Justice,  when  you  see  tl 
date  when  the  instrument  was  issued,  anc 
of  it  (that  is,  when  a  bill  is  dated — say  in 
in  fact,  in  time),  are  not  cotemporaneou 
avoid  the  inference  that  the  intention  wj 
duty,  which  would  be  contrary  to  the  pol 
However,  in  "  Austin  v.  Bunyard  "  the  ai 
V.  Jarrett  "  was  held  to  be  binding,  espe 
tlie  couii;  that  they  were  not  sitting  in  cr 
In  "  Austin  V.  Bunyard"  a  cheque  was 
— "No.  —  Cheapside,  London ;  22nd  Jul; 
Birmingham  and  South  Staflfordshire  B 
Mr.  Garrett  or  bearer  £350."     This  w 
fendant  and  endorsed  by  Mr.  Garrett, 
fact,  made  on  the  22nd  June,  1864,  and 
Garrett.     It  came  to  the  hands  of  the  j 
and  convenient  holder  for  value,  without  i 
post-dated ;  it  was  duly  presented  on  the 
honoured,  and  the  plaintiff"  thereupon  broi 
the  maker  of  the  cheque,  the  defendant, 
a  penny  stamp,  and  at  the  trial  it  was  ( 
not  be  admitted  in  e\ddence,  as  it  was 
month,  and  ought  (under  the  17th  and  ] 
have  bonie  a  four  shilling  stamp.     Nor 
with  leave  to  the  plaintiff'  to  set  aside  i. 
verdict  for  plaintiff".     A  rule  nisi  havii 
that   purpose,  it   now   came  on  before 
making   the  rule   absolute.     On  the   pa 
it    was    argued  that    this    was    not    a 
demand,  being  post-dated  ;  but  it  was  in 
exchange  at   a  month's  date.      If  it  wi 
could  not  be  received  in  evidence,  as  no 


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833 


p.     On  the  plaintiff 8  part,  ""Williams  v.  Jarrett/*  and 
first  section  of  21  and  22  Vict.,  cap.  20,  (which  makes  all 
»  or  orders  payable  on  demand  chargeable  with  a  penny 
p)  were  relied  on ;  and  it  was  said  that  this  cheque,  being 
le  face  of  it  dated  the  22nd  of  July,  that  must  be  taken  to 
Le  date^  and  it  was  a  draft  payable  on  demand,  at  least  in 
Lands  of  an  innocent  holder;  and  so  the  court  held,  upon  the 
3rity  of  Williams  v.  Jarrett.     We  have  already  noticed  that 
»  in  delivering  their  judgments  expressly  stated  that  they 
ed  on  the  authority  of  "WiUioms  v.  Jarrett,"  and  ex- 
ed,  or  at  least  intmiated  doubts,  whether  that  case  was 
ly  decided.     The  point,  therefore,  as  to  whether  a  note 
illy  post-dated,  but  appearing  on  the  face  of  it  to  be  correctly 
I,  shall  be  treated  as  of  the  date  appearing  on  the  face  of 
tes  not  seem  to  be  free  from  doubt,  should  the  matter  come 
■e  a  court  of  appeal.     At  the  same  time,  the  injustice  of 
ing  a  defendant  in  such  a  case  as  that   of  "Austin  v. 
^'ard,'*  himself  a  party  to  post  dating  a  bill,  to  set  up  the 
dating  as  a  defence  against  an  innocent  holder,  would  be 
aring  that  we  should  doubt  whether  a  court  of  law  even 
i  permit  it ;  and  we  feel  scarcely  any  doubt  that  a  court 
uity  would  restrain  a  defendant  from  using  such  defence  in 
Jtion.     And  here  we  may,  not  uselessly  perhaps,  explain  to 
ommercial  readers  very  shortly,  that  which  appears  at  first 
an  anomaly,  viz.,  that  a  court  of  law  should  decide  one  way^ 
i  court  of  equity  the  opposite,  upon  the  very  same  matters, 
principle  of  that  contradiction,  or  apparent  contradiction  of 
iiction,  is  this — a  court  of  law  is  bound  to  decide  upon  the 
and  positive  law.     If,  therefore,  a  court  of  law  were  to 
lude  that  in  such  a  case  as  "  Austin  v.  Bunyard,"  a  note  is 
'  held  as  dated,  not  of  the  date  on  the  face  of  it,  but  as  a 
dated  of  the  date  of  its  making,  it  could  have  no  alterna- 
but  to  decide  for  the  defendant.     But  a  court  of  equity  has 
isdiction  over  the  conscience  of  the  parties;  and  if  it  come 
e  conclusion,  as  we  think  it  woiJd,  that  for  a  person  to 
date  a  cheque  for  his  own  convenience,  or  for  the  purpose 
frauding  the  revenue,  and  then  to  set  up  that  fraud  as  a  de- 
*  in  an  action  by  an  innocent  holder  against  the  admission 
B  note  in  evidence,  was  a  fraud  or  inequitable  transaction ;  i^ 
<1  rest r a  11 K  not  tlio  court  of  law  from  exercising  its  own 
^r  jurisdiction,  but  the   fraudxilent  defendant   from  pre 
^g  to  the  court  of  law  a  fraudulent  defence. 
1  the  subject  of  bills,  we  notice  another  case  recently  decided, 
apman  v.  CotteriU,'*  (6  New  Eep.  237),  in  which  the  point 
VOL.  XXV.  66 


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Banking  and  Commercial  I 


was,  whetlier  where  a  promissory  note  is  6 
without  the  jurisdiction,  but  delivered  by  the 
the  jurisdiction  of  the  court,  the  cause  oi 
place  of  delivery  or  at  the  place  of  the  ma] 
that  case  the  defendant  was  jointly  anc 
brother,  indebted  to  the  Union  Bank  of  Loi 
resided  at  Florence;  his  brother  in  Lon 
that  the  defendant's  brother  should  pay 
£000,  and  that  the  defendant  should  join 
two  promissory  notes  to  pay  off  that  balanc 
notes  were  made,  signed  by  the  defendant 
by  him  to  his  brother  in  London ;  and  t 
them  with  the  bank.  In  an  action  brougL 
the  defendant  it  was  contended  on  the  j 
that  the  proceedings  should  be  set  aside 
ground  that  the  cause  of  action  did  not  a 
diction.  But  the  court  held  that  the  c 
where  the  notes  were  delivered.  Martin 
tion  is,  was  tlie  contract  in  Florence  or  in 
opinion  that  no  contract  arose  at  all  till 
over  to  the  bank  "  (and  he  referred  to  C 
and  Aid.  474),  and  Bramwell,  B.,  said  " 
whatever  for  sa^'ing  that  any  interest  pas 
handed  over  to  the  bank.  The  cause  of  a 
in  England.'* 

In  another  case,  "  Maccall  v.  Taylor,"  6  '. 
sti-ument  was  made  in  this  form : — 

"  4  months  after  date,  pay  to  my  ord 
value  received. 

To  Captain  Taylor,  Ship  '  Jasper 

St.  Helens,  London.'^ 

The  instrument  was  accepted  by  TT.  T 
the  "Jasper.**  It  was  held  that  this  was  r 
there  w^as  no  drawer's  name  to  it ;  nor  a  nc 
promise  to  pay  any  one  ;  it  was  an  inchoat 
of  being,  but  not  in  fact,  perfected,  and  thi 
sustained  upon  it. 


.'< 


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^tpnrts  xrf  ^oixd^Siimk  %nnk%. 


SCINDE,  PUNJAUB,  AND  DELHI  BANK  CORPORATION, 
LIMITED. 

E  ordinaiy  half-yearly  meeting  of  the  shareholders  in  this  bank  was 
1  at  the  London  Tavern,  on  the  30th  May ;  Mr.  W.  P.  Andrew  in  the  chair, 
'he  following  report  of  the  directors  was  read  : — "  The  half-year  ending 
member  Slst  last  has  be^i  one  of  nnnsnal  risk  and  nnoertalnty  to  au 
ks  connect<jd  with  India.  The  rapid  decline  in  cotton,  and  depreciation 
Sast  India  produce  generally,  rendered  it  necessary  for  the  dnrectors  of 
r  bank  to  act  with  extreme  caution,  and  restrict  the  branches  in  their 
rations,  especially  in  the  purchase  of  bills  drawn  against  produce.  The 
\x  rates  of  discount  which  prevailed  on  this  side  from  June  to  December 
)  Bank  of  England  minimum  having  ranged  from  6  to  i)  per  cent.),  not 
ing  been  accompanied  by  a  correspouding  increaae  in  Exohange  rates 
England,  were  also  severely  felt  by  Indian  banks  in  diminishing  their 
its  on  such  transactions.  The  accounts  now  presented  in  the  an- 
ed  statement  have  been  duly  audited,  and  show  a  gross  profit  of 
,062.  12s.  7d.,  including  the  balance  brought  forward  from  last  half- 
r,  after  deducting  interest  on  current  and  fixed  deposits.  From  this 
i  £14,551.  16s.  3d.  has  been  deducted  for  current  expenses,  and 
,008.  4i).  lid.  for  rebate  on  bills  and  commission  on  acceptances  run> 
I,  £423.  9s.  6d.  for  6  per  cent,  on  preliminary  expenses,  and  £366. 8s.  2d. 
bank  premises  redemption  fund,  leaving  a  balance  of  £3,707.  1 3s.  9d. 
be  credit  of  profit  and  loss.  The  shareholders  will  not  expect  that  the 
k  can  have  passed  through  the  exceptional  period  which  has  proved  so 
strous  to  many  houses  in  the  Indian  trade,  and  during  which  all  Indian 
ks  have  suffered  more  or  less,  without  being  similarly  affected.  The 
lal  losses  on  bills  unpaid  during  the  currency  of  the  half-year  ending 
Slst  December  last  amounted  to  about  £4,000.  Since  the  above  period , 
ever,  losses  have  been  incurred  from  the  suspension  of  firms,  which 
,  it  is  estimated,  absorb  the  sum  at  the  credit  of  profit  and  loss  and  the 
rve  fund,  leaving  £5,238.  8s.  Id.  still  to  be  provided  for.  During  the 
lent  half-yeMT  Mr.  Thornton,  Mr.  Boyd,  and  Mr.  Worms  have  ceased 
«  directors.  The  board  recommended  that  only  one  of  the  vacancies 
s  occasioned  be  filled  up,  and  they  are  taking  steps  with  a  view  to  a 
able  selection.  The  directors  retiring  by  rotation,  Mr.  W.  P.  Andrew, 
Harry  Borradaile,  and  Mr.  W.  Den^un.,  being  eligible,  offer  them- 
es for  re-election.  The  auditors, Mr.  W.  Dent  and  Mr.  J.  E.  Anderdon, 
>  retire,  also  offer  themselves  for  re-election." 

Balance-sheet 9  Deeember  Slst,  1864. 

LIABILrriES, 

Dr. 

ital— Authorised    50,000  sharas,  £20  each,  £1,000,000; 

issaed  37,500  shares,  £10  per  share  paid  up,  £375,000 ; 

12,500  of  which  are  taken  up,  and  8,889  £2  per  share  paid 

thereon,  £17,788 
is  payable,  £1,198,712.  lAs,  C<2. ;  current  and  fixed  deposits, 

Wans,  and  other  liabilities,  £493,650.  7s.  Id, 


£392,778    0    0 
1,697,363    2     1 


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836         ScindCj  Punjauh  and  Delhi  Be 

Rebate  and  commission  adjusting  account — Fo 
rebate  at  5  per  cent.,  and  commission  rei 
profits,  to  be  carried  to  credit  of  next  pr 
account    .. 

Bills  discounted,  not  matured  at  1st  of 
£191,292.  17*.  Id.      ... 


Or. 

Cash  at  bankers  and  on  hand,  £97,422.  2*.  lOi 
India  and  in  transitu,  £54,009.  13*.  ld.\ 
Becurities,  £172,419.  55,  (jd. 

Bills  receivable,  £1,608,133.  6*.  lOrf.;  loans  and 
(including  £28,5G2.  13*.  unadjusted  balan 
the  branches).  £141,241.  2*.  7d.  ... 

House  property  and  office  furniture  in  London  a 

Preliminary  expenses   account — Balance   30th 
.  and  amounts  added  since,  £8,569.  10*.  9</. ; 
cent,  written  off,  £428.  9*.  6d.    ..• 

Profit  and  loss  account     ... 

Balance  at  debit  as  below 


PROFIT   AND   LOSS   ACCO 

For  the  half -year  ended  Slst  £ 
Dr. 
General  charges  of  head  office  and  branches 
Preliminary  expenses  account  (5  per  cent,  writte 
I  Bank  premises  account  (amount  written  off) 

Kebate  and  commission  adjusting  account : — For 
4  percent.,  and  commission  on  current  bills 

Balance  carried  down 


To  amount  required  to  cover  the  estimated  loss 
ceivable,  current  at  31st  December,  1864 

Cr. 

Balance  from  30th  June,  1864,  £4,909,  14*.  7d 
commission  adjusting  account,  from  Jun( 
£10,502  10*.  0(i. 

Gross  profit  at  head  office  and  branches,  after 
interest  on  fixed  and  current  deposits 


I 


Balance  brought  down,  £3,707  13*.  9d, ;  reserTed  i 
brought  forward,  £24,674.  1*.  6rf. 


^  Balance  carried  to  balance-sheet 


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Pimjaub  and  Delhi  Bank  Corporation.        837 

BESERYED  FUND. 

0  profit  and  loss  account,  as  above         ...     £24,674    1     6 


!,  1864 

7,889  shares,  at  £2  per  share 
1,000        „  £5 


£3,806  1 
15,778  0 
5,000     0 


£24,674     1     6 


moving  that  the  report  be  received  and  adopted,  said 
cans  convey  the  gratifying  results  which  the  directors 
before  the  shareholders ;  but  he  thought  the  observa- 
Id  have  the  honour  to  submit  to  them  would  lead  them 
liat  if  they  had  to  go  through  the  same  period  again 
lot  use  more  discretion,  diligence,  or  energy,  than  they 
uting  to  a  successful  issue  an  institution  which  was 
such  particularly  favourable  auspices.  Although  he 
'  gratification  from  the  circumstance,  still  he  could  not 
t  they  had  not  incurred  losses  any  thing  like  so  large 
y  some  other  banks  connected  with  India  or  the  East, 
[lat,  he  might  mention,  as  a  matter  of  his  own  know- 
11s  of  this  company  which  were  now  in  suspense,  put 
ount  to  as  much  as  the  bills  held  by  one  bank  on  one 
.)     He  would  tell  them  the  causes  which  had  been  so 

progress  of  the  bank  arose  from  gross  errors  ;  for  he 
x>  mince  matters,  or  to  conceal  anything  from  the 
Ts.)  He  had  been  through  life  a  most  straiglitforward 
1,  and  he  felt  confident  that  if  the  directors  retained  the 
iprietors — and  which,  if  honourable  dealing  deserved 
lue  to  retain — they  would  be  able  to  retrieve  the  past, 
,t  successfiil  and  flourishing  institution.  (Hear,  hear.) 
3  DOW  under  the  consideration  of  the  directors  for 
ank,  for  enlarging  the  scope  of  its  operations,  and  for 
I  not  had  hitherto — proper  management.  He  did  not 
iker  himself,  to  be  acquainted  with  the  details  of  the 
jsessed  as  much  knowlego  as  any  man  of  the  commerce 
^ndia  and  the  East ;  an(l  he  was  sure  that  what  had 
rto   were   men   under   him   to  manage    the    details. 

prospect  of  having  eflicient  managers  for  working 
f  the  bank;  and  as  showing  the  estimation  in 
Ld,  even  in  their  present  adverse  position,  he  might 
>r8  had  received  overtures  for  arrangements  with  other 
lire  which  must  necessarily  improve  the  stability  and 
mpany.  He  could  not  at  the  present  moment  go  into 
nrcumstance  of  his  disclosing  them  might  have  an 

negotiations  which  had  only  recently  been  opened, 
d  to  receive,  as  they  should  test  on  this  occasion,  the 
ce  of  the  shareholders,  he  had  no  hesitation  in  saying 
)  have  the  honour  of  calling  them  together  again,  and 
»  which  they  would  receive  with  acclamation.     That 

he  desired  on  this  occasion  that  they  would  testify 
they  might  make,  and  by  the  trust  they  would  place 


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0^ 


1     » 


in  the  statements  made  to  thera,that  they  appreci? 
directors  who,  like  himself,  had  adliered  to  the 
(Hear,  hear).  There  were  three  directors  whose  n; 
the  report  as  having  left  the  company.  He  must 
Thornton,  his  excellent  and  highly  esteemed  frier 
resignation  was  placed  in  his  (the  chairman's) 
meeting,  and  had  nothing  whaterer  to  do  with  tl 
connectetl  with  the  bank.  It  was  entirely  owing  1 
compelling  him  to  abstain  from  business,  and  to  p 
(Hear,  hear).  With  respect  to  the  other  two  ge 
Boyd  and  Mr.  George  Worms — he  would  only  stai 
surprised,  and  considered  it  matter  of  great  regrc 
chosen  such  a  moment  to  retire  from  the  boai'd.  (£ 
subject,  the  chairman  said  the  losses  up  to  the  en< 
fairly  placed  before  them  in  the  report ;  and  look 
to  the  future,  he  felt  they  would  at  once  say  to  the 
not  sustained  these  losses  the  profit  derived  is  totall; 
embarked."  He  would  state  at  once  that  it  was  his  > 
state  of  affairs  were  likely  to  last  he  should  be  the  fii 
concern  be  put  an  end  to.  (Hear,  hear.)  But  th( 
entirely  exceptional.  The  high  rate  of  discoun 
hear,  the  increased  rivalry  in  India,  not  onl; 
established  when  this  company  was  inaugurated, 
schemes,  financial  and  banking  companies  of  aim 
brought  into  competition  with  this  bank,  were  s 
profit  to  be  got  out  of  the  business  that  tiiey  did 
felt  this  so  much  that  they  had  given  instruction 
much  as  possible ;  in  fact  they  came  to  a  rec4 
business  altogether,  to  mjiintain  their  resources, 
exceptional  state  of  afiairs  had  passed  away.  T 
been  attended  to,  or  if  they  had  been,  they  wouk 
their  losses.  He  did  not  tliiuk  they  would  h? 
instructions  had  been  obeyed.  Their  managers, 
orders,  felt  resentment,  and  stated  that  they  mi 
and  they  did  do  as  other  banks  did.  Conseque 
manded  them,  and  they  threw  up  their  appoint) 
had  been  paying  £1,000  and  £1,200  a  year  got  i 
from  some  of  the  other  companies.  The  state  ( 
been  unprecedented.  They  had  all  heard  of  the 
£1(X)  shares  were  worth  £1,000  in  the  market ;  1 
£100  paid  had  been  selling  freely  at  £4,500. 
had  afi'ected  not  only  those  who  had  8}>eculat€)d  i 
managers  of  banks  and  other  institutions.  The 
occurred  to  him  was,  that  the  report  stated  such 
have  been  sustained  up  to  the  end  of  the  year ; 
say — for  he  was  not  going  to  blink  the  questioE 
to  plaster  over  an  unsound  wall — that  large  lo 
since  that  report  was  made  up.  At  the  same 
remark  that  the  depreciation  in  the  value  of 
beyond  any  amount  they  could  make  out  as 
(Hear,  hear.)  They  had  narrowly  scrutinised 
the  bank  within  the  last  few  days;  and  it  i 
instead  of  a  loss,  as  would  appear  from  the  vali 
per  share,  tlie  loss  did  not  amount  to  more  tlia 


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Vunjaub  and  Delhi  Bank  Cor2:)oratiou,         8\j\) 

don,  he  had  only  to  observe  that  he  was  rea<ly  to 
Dns  which  might  be  addressed  to  him,  in  reference 
[  prospects  of  the  company. 

*.,  seconded  the  motion,  and  said  that  he  should  not 
uxx)n  the  time  of  the  moetiug,  for  he  was  awai*e  that 
B  to  do  business,  not  to  tidk.  Acting  on  that  principle 
ief  as  possible.  He  would  merely  remark  that  when 
nan,  be  he  director  or  sliareholder,  could  have  contem- 
ity  of  such  a  wild  spirit  of  speculation  as  they  had 
iVjay.  None  of  them  could  be  responsible  for  it,  and 
ke  from  it ;  but  let  them,  in  the  circumstances  in  which 
ke  courage  in  regard  to  the  future,  instead  of  frighten- 
others.  He  would  mention  the  case  of  the  National 
,  of  which  he  was  a  director.  At  one  time  the  shaies 
)uld  be  bought  for  £2  per  share,  they  had  come  as 
fvhat  was  the  value  set  upon  those  shares  now  ]  They 
share,  and  he  did  not  see  why  the  shareholders  of  the 
nd  Delhi  Bank  should  not  look  forward  to  a  similar 
it  they  were  acquiring  exi>erience  and  connexions,  he 
Lhey  might  not  look  forward  with  confidence  to  such  a 
ice  them  in  a  most  excellent  position, 
isked,  as  a  matter  of  form,  whether  the  seal  of  the 
if&xeil  to  the  register  of  transfers. 

aid  the  register  was  on  the  table,  and  the  seal  of  the 
affixed  to  it  if  the  meeting  thought  it  desirable  ;  but 
the  legal  adviser  of  the  company  that  the  formality 
one. 

ssed  liimself  dissatisfied  with  the  result  of  the  bank's 
he  did  not  wish  by  any  means  to  mix  up  acrimony 
m  the  accounts.  There  was  no  doubt  they  were  in 
Ity ;  but  as  a  matter  of  fact,  Si)eaking  of  the  trans- 
he  foimd  that  the  gross  profiU  of  the  bank  for  the 
[  to  only  £15,650,  and  that  to  earn  that  they  had  ex- 
row,  many  of  the  friends  by  whom  he  was  surrounded 
►w  much  of  tliat  expenditure  was  comprised  under  the 
jmuneration  ? 

^d  ho  would  make  a  note  of  each  question,  and 
^tim. 

iod  for  an  immediate  answer  to  his  inquiry. 
id  that  at  the  last  half-yearly  meeting  a  shareholder 
ir  to  ask  how  much  his  own  allowance  as  a  director 
ras  gratified  at  the  question,  and  he  replied  that  it  gave 
A)  say,  that  he  had  £300  per  anniun.  It  now  gave  him 
to  say  that  he  did  not  receive  anything  by  way  of 
eers.)  These,  however,  were  trumpery  and  petty 
jar) — and  if  such  were  to  be  the  style  of  the  observa- 
:>  the  meeting,  he  had  only  to  exi)ress  his  great  regret 
If  he  were  to  be  allowed  to  make  one  observation, 
great  deal  depended  on  the  character  of  an  institution, 
i  perfectly  ready  and  "willing  to  answer  any  questions 
irs  of  the  bank  which  might  be  addressed  to  him,  still 
class  of  questions  which  had  much  better  not  be  put 
drcum stance  of  a  question  of  that  class  being  put  to 
dculated  to  create  in  the  public  mind  some  doubt  of 


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840         Scituley  Ptinjaiib  arid  Delhi  Ba 

the  institution  itself.    If  he  had  the  confidei 

hoped  they  would  in  these  matters  trust  to  his 

not  their  confidence  he  was  most  willing  to 

occupied  the  seat  he  did,  as  chairman  of  the  bai 

not  only  to  be  listened  to,  but  to  have  questioi 

not  be  derogatory  to  the  position  he  occupied. 

Mr.  Minton  was  thankful  for  the  answer  h 

repeat  that  he  had  no  intention  to  mix  up  acri 

vations,  but,  as  prudent  men  of  business,  they 

of  a  crisis  not  to  undertake  anything  which  w; 

and  he  was  therefore  surprised  to  find  that  tl 

last  six  months  undertaken  a  business  which 

of  the  reserve  fund.     As  men  of  business  they 

security.     He  had  also  to  complain  of  the  ina 

by  the  mildest  term,  of  the  directors  in  settins 

recent  advertisements  that  the  reserve  fund 

£24,000.     It  would  have  been  much  better  i 

altogether  left  out.     He  had  no  wish  to  thro 

[A  voice — "  You  could  not  do  it."] — but  he  did 

an  amount  of  profits  should  have  attended  so 

Mr.  Hedgcock  said  that  as  men  of  business 

to  have  confidence  in  the  directors,  who  had  a 

and  in  their  own  property.     It  was  an  exceed 

the  foundation  of  a  sound  and  promising  busi 

home,  and  they  ought  to  feel  grateful  to  the  < 

plished  for  them  that  object  without  in  any  wa; 

Thoy  had  now  a  good  working  basis,  and  the  r 

give  them  £7,000  in  hand.     If,  like  the  direc 

they  would  soon  see  their  shares  at  a  premiuu 

Mr.  Young  had  every  assurance  in  the  f  utu 

lieved  it  would  yet  be  a  great  bank.     He  gai 

confidence,  but  he  hoped  they  would  put  a  ch( 

India  by  the  appointment  of  an  inspector,  or  < 

Mr.  King  was  sure  they  must  all  go  away  hi 

manner  in  wliich  their  questions  had  been  am 

sent  some  misapprehension  as  regards  the  Ind 

but  he  was  gratified  to  hear  that,  so  far  as  the 

losses  were  not  by  any  means  equivalent  to  \ 

taken  place  in  their  market  price.     That  beini 

they  were  now  passing  through  that  stage  whi 

tion  with  which  he  was  acquainted  had  to  en« 

gi-eatness.     He  was  sure   his  friend   Mr.   Mi 

motives  put  his  questicms  to  the  chairman,  ar 

tlie  unprecedented  difficulties  with  which  the  c 

They  enjoyed  the  full  confidence  of  the  mee 

that  they  should  also  enjoy  the   full  confide 

slmreholders  should  make  it  apparent  that  the 

Scinde,  Punjaub  and  Delhi  bank.      If    they 

Sa^n.^^'  ^^^^  *^^^  --1^  -on  see  theiJ 

theY/dut?l^T\*^^^^^  *^^^  chairman  and 

denv  thaf  f^f  ^^^""^^^^  to  the  ship  in  stormy  . 

It  was  a^^^^^^^^  was  a^d 

was  a  disappointment  to  him  and  the  other 


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?unjauh  and  Delhi  Bank  Corporation.         841 


'  a  disappointment  to  the  chairman  and  other  members 
even  though  they  were  disappointed,  still  that  was  no 
uld  not  stick  to  their  post.  He  was  very  glad  to  hear 
that  the  management  was  to  be  improved — (Time  i 
e  managers  in  India  who  had  proved  disobedient  to  the 
ors  had  been  dismissed,  for,  in  a  company  like  this — 
!) — discipline  was  everything.  He  thought  it  of  the 
that  they  should  know  the  present  position  of  the 
les  they  had  sustained  besides  the  loss  of  their  reserve 
itood  the  chairman,  the  losses  did  not  exceed  £30,000, 
Dging  down  the  value  of  each  share  from  £10  paid-up 
agree  with  some  of  the  speakers,  who  seemed  to  think 
e  appreciated  must  first  bo  depreciated.  They  did  not 
ng  unction,  which  was  hypocritical  and  false.  They 
Ities,  but  by  boldly  facing  them  and  acting  manfully 
to  overcome  them. 

quired  if  any  loss  had  been  siLstained  by  the  bank 
ich  the  accounts  were  made  up. 
peated  that  the  losses  would  not  amount  to  more  than 

der  inquired  if  a  loss  had  not  been  sustained  at  Alex- 
^rtainly,  to  his  mind,  out  of  the  reguhir  field  of  the 
He  'had  every  confidence  in  the  bank,  which  would,  he 
eat  and  grand  institution. 

d  the  Alexandria  account,  which  was  the  accoimt  of 
had  been  introduced  to  them  by  Mr.  Worms  before 
the  board.  That  gentlemen  gave  that  firm  so  high  a 
CO  the  directors  to  cash  its  paper  drawn  on  Marshall 
generally  known,  Marshall  and  Sons  had  since  failed, 

the  pound,  and  the  directors  were  informed  that 
.  were  worth  a  great  deal  more  than  the  balance. 
1  was,  that  they  should  not  lose  anything  on  that 
ard  to  the  suggestion  about  the  future  management 
I,  he  was  happy  to  say  thoy  were  about  to  carry  out  a 
rtant  change  there  ;  for  a  gentleman  of  great  banking 
ey  soon  expected  to  see  join  the  board,  was  about  to 
branches,  and  furnish  the  board  with  a  detailed  state- 
and  character  of  their  business  at  Calcutta,  Bombay, 
in  Scinde  and  Punjaub.  Every  care  should  be  tiiken 
1.  He  anticipated  having  soon  to  call  a  special  meet- 
ers,  when  he  hoped  to  be  able  to  submit  to  them  a 
it  with  respect  to  all  their  branch  establishments.  Of 
might  be  assured,  that  they  would  have  from  him  a 

(Cheers.) 
dd  not  imderstand  why  they  had  not  been  able,  during 

was  9  per  cent.,  to  earn  on  the  use  of  their  own  capital 
ge  amount  of  profit. 

id  the  hon.  proprietor  forgot  that  this  was  an  Indian, 
jank,  and  that  it  was  that  very  circumstance  of  the 

in  this  country  w^hich  narrowed  the  margin,  and,  of 

amount  of  their  profits.  Thoy  had,  too,  been  unfor- 
tion  of  managers,  who,  however,  notwithstanding  their 
3d  up  by  other  banks  at  much  higher  salaries.     With 


■  1 


{   ', 


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I, 

\ 


S42  Brazilian  and  Fortitgiu^e  1 

these  banks,  which  were  numerous  iu  India,  they 
had  not  by  any  means  an  unoccupied  field  to  carrj 
After  some  further  dLscussion  of  a  desidtory  c 
t»i  the  imi)ortant  declaration  that  several  of  the  di 
increasing  their  holding  in  the  bank,  and  that  ma: 
sesaed  as  many  as  300  shares,  the  rej^^rt  was  a 
direct<^)rs  and  auiUtors  having  been  re-electetl,  the 
in  the  usual  manner. 


BRAZILIAN  A>T)  PORTUGUESE  BA 

The  second  annual  general  meeting  of  the  proprie^ 
at  the  bank  premises,  ;No.  1J>,  St.  Ilelen's-place,  B 
30th  May ;  Mr.  Frederick  Rodewald,  the  chairmj 
tors,  presiding. 

The  report  was  taken  jw  road.     It  stated  that  thi 

but  owing  to  losses  it  was  deemed  necessaiy  to  c? 

serve  account  £47,000,  so  tliat  the  entiie  profits 

£10,716  had  to  be  provided  out  of  the  profits  of  t 

The  Chairman,  in  moving  the  usual  resolution 

report  and  accounts,  reminded  the  proprietors  tL 

bank  commenced  at  Rio  on  the  1st  of  ^March  h 

six  months  the  local  directors  appeared  to  have 

with  due  regard  to  prudence  and  in  accordance 

mitted  to  them.    Making  allowance  for  the  cUflici 

establishment  of    a  new    bank,  tlie  board  at  1 

satisfied  with  the  accounts  made  up  to  the  end 

interim  division  of  profits  was  imder  cousideratio: 

financial  crisis  at  Rio,  which  commenced  on  the 

^  first  it  was  thought  the  convidsion  would  be  of  ac 

in  that  opinion  thsy  were  confirmed  by  the  assun 

I  tors ;  but  it  was  pointed  out  in  lettera  by  the  i 

'  assurances  were  general,  and  contained  no  actual 

ties  of  failed  firms  to  the  bank.   This  communicai 

of  the  local  directors,  and  it  was  found  that  tliey '. 

of  the  bank  by  attempting  to  support  one  of  the  ; 

board  at  home  felt  it  to  be  their  duty  to  accept  that 

also  came  to  light,  which  showed  such  a  cUvergen< 

the  restoration  of  any  harmonious  action  for  t 

hopeless.    Mr.  Gallop  was  therefore  sent  out  to 

arrange  matters  for  the  interest  of  the  bank,  s 

might  be  appointed  in  the  local  direction  and  the  bi 

interruption.    In  cari*}'ing  out  this  diificidt  and  del 

displayed  as  much  efficiency  as  good  tact,  and  the 

',  Rio,  being  in  accordance  with  the  views  of  the  di] 

it  was  thoroughly  believed,  lead  to  very  satisfacto 

it  would  obviate  the  risks  and  losses  unavoidable 

of  management.     The  losses  at  Rio  had  by  no  m 

been  confined  to  this  bank.     They  had  resulted  fr 

ing  prevailing  there ;  and  the  error  of  the  local  di 

following  public  opinion,  and  disregarding  the  ■« 

(  mitted  to  them  from  England ;  but  although  mj 

^  closely  the  cxamxde  set  by  the  other  banks,  he  wj 

i 


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Wed  Bank  of  Australia.  843 

*he  best  intentions  for  the  welfare 

'•<)  would  observe  that  there  was 

j^  *«?appointment  would  be  the^ 

^5j>  i^ow  knew  the  worst.     No 

'^  lit,  but  all  the  facts  of  the 

L  Acial  storm  having  now  passed 

^<n  ^ y^  .oving  gainers  by  the  experience 

trjj  ^-^/^  lairman,  having  secondcjd  the  motion^ 

'^  jil0,716. 14.5.  4cl.,  the  balance  on  the 


/»  r 


.ed  any  bad  debts  of  the  present  year. 

^^  negative.     The  accounts  were  those  of  the 

rectors  knew  of  no  bad  debts  made  since.     On 

en  going  on  most  satisfactorily.     He  added  in 

-tiat  the  charges  at  Oporto  and  Rio  could  be  shown 

•A&nces-heets  if  it  were  so  desired,  and  that  there 

nation  on  the  part  of  the  clirectors  to  hold  half-yearly 

become  necessary. 

eiSj  one  of  the  former  directors'  at  Rio,  who  was  present, 

ition  through  Mr.  Yule,  to  show  that  the  local  directors 

0  favour  or  affection  towards  friends.  They  had  simply 
mistake  referred  to  by  the  chairman ;  and  having  every 
le  future  success  of  the  bank,  they  should  remain  large 
ares,  and  render  it  all  the  support  in  their  power. 

r;  asked  whether  Senor  Don  Reis  thought  it  would  bo 
>  interest  of  the  bank  if  an  amalgamation  were  effected 
and  Brazilian  Bank. 

Ris,  replying  as  before,  said  that  was  a  question  for  the 
is  he  could  say,  he  saw  no  reason  for  any  combination  in 
tion,  as  the  losses  would  be  soon  wiped  off  and  the  bauk 
rishing  state. 

Led  if  the  directors  considered  themselves  justified  in 
m  upon  this  quastion. 

1  said  he  understood  from  report  that  the  London  and 
was  just  now  contemplating  a  large  amalgamation  with 
id  as  far  as  ho  was  individually  concerned,  and  without 
e   board,  he  had  no  hesitation  in  saying  that  it  would 

interest   of  this  bank  to  amalgamate  with  any  other, 
enough  for  it  to  stand  upon  its  own  footing. 
I  then  unanimously  adopted,  and  Messrs.  Young,  Lloyd, 
mditors,  having  been  re-elected,  the  proceedings  closed 
lanks  to  the  chairman  and  directors. 


[)N  CHARTERED  BANK  OF  AUSTRALIA. 

ting  of  this  company  was  held  on  the  2nd  June,  at  the 

William  Fane  De  Salis,  Esq.,  in  the  chair. 
(Mr.  James  Strachan)  having  read  the  report : — 
observed  that  the  report  and  the  accounts  had  been  in  the 
■eholders  for  the  last  ten  days,  and  showed  that  for  the 
of  December  they  would  have  paid  the  usual  dividend  of 
placed  a  sum  of  £10,000,  which  was  equal  to  1  per  cent, 
be  capital,  to  the  reserve  fund,  and  have  carried  over  a 
\.  14a.  9d.    It  woTild  be  seen  also  from  the  report  that  thfr 


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844 


London  Chartered  Bank  of  Ah 


divifiible  profit  this  year  was  nearly  £1,000  larger 
they  considered  these  profits  had  been  earned  nnd 
if  not  adverse,  had  certainly  not  been  favourable 
banking  operations  and  trade,  he  thought  sharehol 
be  satisfied  witli  the  result.  (Hear,  hear.)  In  the 
to  contend  with  a  very  severe  competition  in  the 
place,  the  year  in  which  these  profits  had  been  ea 
commerce  had  been  very  seriously  disturbed 
world.  In  England  large  failures  had  occurr< 
great  fluctuations  in  the  value  of  money  and 
the  other  hand,  a  country  with  which  Aus 
intimate  relations,  trade  had  been  and  was  now  si 
Now,  although  it  might  be  quite  correct  that  An 
in  the  same  way  as  India  or  this  country — for  n< 
had  occurred  there — it  would  be  quite  incorrect  t 
not  sufi'ered  at  all.  On  the  contrary,  in  this  ag 
communication  the  interests  of  ct^mmerce  were  so 
barely  possible  for  one  country  to  sufi*er  without  i 
neighbours,  and  in  this  way  Australia  had  sulfere( 
indirectly.  The  great  fall  that  had  taken  place  ir 
sympathy,  acted  upon  the  Australian  wool  marke 
S(Z.,  a  pound  lower  than  when  they  met  last  year, 
sound  a  small  sum,  it  was  a  serious  matter  for  a  c( 
uiK)n  its  wool  growing  as  Australia ;  in  fact,  it  ] 
owners  aU  the  difference  between  profit  and  no  p 
mining  interest,  second,  if  not  superior,  to  wool 
also  suffered.  For  the  laiSt  two  years  India  had  fi 
whole  of  the  gold  produced  by  Australia  ;  but,  owir 
of  commerce  now  existing  in  that  country,  its  pure 
been  greatly,  but  he  hoped  only  temx)orarily,  c 
quantities  of  Australian  gold  were  now  on  thei 
India.  It  would  be  readily  imderstood  that 
gold  market  was  unfavourable  to  Australian 
garded  this  bank,  whose  business  it  was  to  en 
and  gold  operations,  it  would  bo  uncandid  in 
to  tell  them  that  it  must  make  a  difference  in  the 
even  temporarily,  of  so  good  a  market  as  India, 
that  under  these  adverse  circumstances  the  year's 
they  would  agree  with  the  board  that  there  was  i 
tion,  and  also  that  profit  so  realised  bespoke  the  s 
business,  which  could  not  fail  to  be  gratifying 
shares  in  the  institution.  As  regarded  the  gener 
pauy's  affairs  in  the  colonies,  he  need  only  oba 
accounts  received  from  the  colonies  spoke  of  th 
tlieir  affairs,  and  were  of  an  encouraging  tenor, 
they  had  much  improved  their  jwsition.  The 
there  had  not  been  such  as  gave  the  directors  satif 
they  had  made  arrangements  to  send  there  a  gf 
with  their  Melbourne  branch,  Mr.  Machardy,  wl 
promote  the  interests  of  the  company  could  not 
Ho  was  happy  also  to  say  that  they  had  been  able 
board  the  services  of  Mr.  Moore,  an  eminent  mer 
tative  of  the  Peninsular  and  Oriental  Conipan 
with  such  assistance  the  Sydney  branch  would  sh( 
chairman  concluded  by  moving  the  adoption  of  tl 


;  .*- 


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London  Chartered  Bank  of  Amtralia. 


845 


T.  Foster  Fitzgerald,  in  seconding  the  resolution,  said  he  had  listeiietl 
much  satisfaction  to  the  lucid  and  reassuring  remarks  which  thu^ 
rman  had  made  as  to  the  present  state  of  their  property  and  its  future 
pects.  The  earnings  of  the  bank  were  not  to  be  measured  alone  Ijy 
dividend  paid,  for,  in  addition  to  the  sums  paid  in  the  shape  of  di\i- 
b,  the  Directors  had  most  judiciously  established  a  reserve  fund  which 
now  assumed  large  proportions,  and  in  his  opinion  the  time  was  not 
iistant  when  that  fund  would  have  reached  a  sufficient  amount,  and  an 
tional  1  per  cent,  might  be  divided. 

r.  Kintrea  considered  that  the  accounts  justified  the  payment  of  vi. 
lend  of  9  per  cent.,  and  moved  an  amendment  to  that  effect.  In  Ins 
ion  a  reserve  of  £90,000  was  sufficient  for  all  purposes.  He  wanted  to 
r  whether  the  addition  of  £10,000  a  year  was  to  be  continued  after  the 
had  reached  £100,000. 

r.  VV.  Botly  said  that  having  purchased  his  shares  at  a  high  premium, 
T  one  should  be  very  glad  to  receive  an  addition  to  his  dividend,  but 
gh  he  concurred  in  a  great  deal  which  had  fallen  from  Mr.  Kintrt-a, 
lould  hesitate  to  second  his  amendment  imless  it  had  the  sanction  of 
Directors,  by  whose  advice  the  proprietary  body  had  always  hitherto 
guided,  and  in  whom  they  reposed  the  fullest  confidence.  As  re- 
J  the  observations  of  the  chairman,  he  appeared  to  place  the  wool  and 
export  of  Australia  almost  on  a  par,  but  he  (Mr.  Botly)  inclined  to  tluT 
on  that  the  wool  export  far  exceeded  that  of  gold  in  importance, 
e  Chairman  said  the  reserve  fund  had  formed  the  subject  of  discuss! ou 
previous  occasion,  and  a  general  feeling  was  then  expressed  that  wlit  n 
iched  £100,000  would  be  the  pioper  time  to  consider  the  augmentati'  u 
e  dividend.  Their  competitors  in  the  colony,  with  capital  equal  to 
own,  had  established  large  reserved  funds ;  for  instauce,  the  Bank  <>i 
ralasia  had  a  reserve  fund  of  £200,000 ;  the  Bank  of  New  South 
'8  had  a  reserve  fund  of  £250,000 ;  and  the  Union  Bank  of  Australia 
)nly  had  established  a  reserve  fund  of  £200,000,  but  had  last  yt^ir 
&d  a  second  reserve,  in  the  shape  of  an  insurance  fund,  which  amounted 
5,000.  In  the  face  of  these  facts  it  was  necessary  on  their  part  to  add  to 
reserve  fund,  and  when  they  had  reached  that  point  at  which  furtlier 
ions  could  with  prudence  be  dispensed  with,  the  proprietors  might  rtly 
it  the  Directors  would  be  the  first  to  propose  an  increase  of  dividend- 
uthorities  on  banking  united  in  considering  the  establishment  of  an 
late  reserve  fund  as  a  measure  of  paramount  importance,  and  the 
ent  course  adopted  by  the  board  in  forming  a  reserve  of  a  substantial 
icter  was,  he  might  observe,  one  of  the  reasons  why  such  confidence 
3een  exhibited  by  the  colonists  in  the  bank,  as  was  evidenced  by  the 
i  progress  and  extension  of  its  business.  He  trusted  the  amendment 
d  be  withdrawn. 

r.  Minton  also  urged  the  withdrawal  of  the  amendment,  in  order  t^at 
question  raised  by  it  might  be  left  with  the  board — the  members  of 
b  were  practically  acquainted  with  banking  business,  and  were 
led  to  the  fullest  confidence. 

le  amendment  was  withdrawn,  and  the  original  motion  unanimously 
edto. 

I  the  motion  of  Mr.  Morrison,  seconded  by  Mr.  Grellatly,  the  Directors 
Auditors  were  re-elected,  and  a  vote  of  thanks  having  been  accorded  to 
>irector8,  and  to  the  executive  staff  in  London  and  the  Colony,  the 
eedings  terminated. 


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BAi^K  OF  BRITISH  NORTH 

TiiE  20tli  yearly  general  meeting  of  tlio  prop 
held  on  the  6th  June,  at  their  house ;  Mr.  Cart^ 
lowing  report  was  taken  as  read  : — 

"  Your  directors  have  pleasure  in  reporting  t 
noticed  in  the  report  presented  to  the  proprietor 
hibited  in  the  returus  received  from  the  braiK 
maintained  throughout  the  year,  and  that  the  re 
bank  for  1864  is  of  a  more  satisfactory  character 
notwitlistanding  that  Canada  has  again  suft*ere< 
and  from  unremunerativo  prices  in  t!ie  United  I 
produce.  The  business  of  the  branches  in  Ko' 
wick  has  been  on  the  whole  of  a  satisfactory  ch 
at  New  York,  although  having  to  contend  with  ^ 
the  derangement  of  the  American  currency,  has 
results  than  for  several  previous  years.  On  the 
of  the  bank  continues  to  make  gocxi  progress,  an 
encourago<l  to  extend  their  operations  in  that 
steps  to  open  a  branch  at  Cariboo,  the  seat  < 
British  Columbia.  This  branch,  it  is  expected, 
business  of  the  Victoria  branch,  as  well  as  a  aoi 
bcmk.  From  the  annexed  statement  of  account,* 
providing  for  all  bad  and  doubtful  debts,  the  nei 
year  1864  amounted  to  £72,.569. 16s.  3(i.,  and  the  r 
profit  amounted  on  the  31st  December,  18(34,  to  £ 
viding  for  the  dividend  that  was  paid  on  the  5tl 
directors  have  now  declared  the  usual  half-yearly 
being  at  the  rate  of  6  per  cent,  per  annum,  and  in 
priated  tlie  sum  of  £10,000  out  of  the  undivided 
the  rate  of  lOs.  per  share,  both  payable  on  and  a 
free  of  income  tax." 

The  Chairman,  in  moving  its  adoption,  b 
occasion  he  had  not  many  observations  to  make 
ment  of  accounts  showed  rather  more  favoural 
meetings.  When  they  observed  the  very  sn 
which  did  not  extend  to  as  much  as  the  paid 
obvious  that  the  profits  could  not  amount  to  the 
other  banks  the  deposits  in  wliich  came  to  live, 
to  twenty  times  the  amount  of  the  capital  on  whic 
the  last  meeting  in  December  the  directors  ii 
tliat  apparently  the  profits  of  the  bank  were  in 
ment  had  been  fully  borne  out  by  subsequent 
the  end  of  the  year  obtained  more  profits  than  i 
was  happy  to  state  that,  looking  at  their  return 
this  year  from  the  various  branches,  they  exk 
crease  on  the  profits  of  the  corresponding  period 
The  directors  hopeil  that  that  state  of  things  Wc 
the  year.  They  did  not  however  calculate  on  r\ 
equal  to  what  they  were  last  year,  for  the  sim 
tiie  rates  of  interest  were  exceptionally  high  in  ] 
the  latter  part  of  the  year.  Whether  that  won 
not  know  ;  but  this  he  did  know,  that  the  amount 


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JBank  of  British  North  America. 


847 


imdon  was  mucb  less  than  at  tliis  time  last  year,  and  as  tiie  rate  of 
rest  at  present  was  extremely  low,  that  of  course  was  advantageona  1 1> 
company.  (Cheers.)  Having  a  smaller  amount  of  money  emplo\nl 
at  low  rates  they  had  of  course  a  larger  amount  in  the  colon  ifh  Mt 
er  rates.  When  they  met  la-st  ye^r  they  would  remember  that  sou  its 
irks  were  made  respecting  the  impolicy  of  employing  money  in  tlic 
lies  at  six  or  seveu  per  cent,  when  money  was  at  eight  or  nine  pur 

here.  But  as  he  then  explained,  it  was  impossible  to  withdraw 
al  from  the  branches,  from  the  fact  that  at  the  moment  the  rate  4  jf 
est  here  was  higher.  Their  business  was  established  in  the  colonic  h, 
so  long  as  the  colonial  legislature  restricted  the  interest  to  six  or 
1  per  cent,  they  must  continue  to  carry  on  their  business  at  thoye 
.  Of  course,  whenever  money  was  low  here  the  interest  from  the 
lies  would  operate  favourably,  and  they  would  reap  the  benefit ; 
3,  if  it  was  high,  advantage  might  be  taken  of  that  circumstance  wiih 
^ot  to  any  capital  that  might  be  in  this  country  at  the  time.  liti 
iuded  by  moving  the  adoj^tion  of  the  report  and  statement  of  accounts, 
by  stating  that  he  should  be  most  happy  to  answer  any  questiuua 
li  the  shareholders  present  might  wish  to  put. 

:.  M*Dougall  congratulated  the  directors  and  the  meeting  on  the 
■actory  character  of  the  report,  and  expressed  his  hope  that  the  in- 
ed  dividend  now  proposed  would  be  kept  up.  He  certainly  should 
been  better  pleased  had  it  not  encroached  on  the  reserve  of  £1 00,OiK>, 
li  it  would  do,  though  slightly ;  and  he  hoped  that  in  future  no 
end  would  be  declared  that  would  touch  the  reserve.  With  referencu 
e  rate  of  interest  permitted  by  the  colonial  legislature,  he  expre8ia«xl 
>inion  that,  on  the  expiration  of  the  charter  four  years  hence,  the 
holders  would  find  themselves  under  the  paramount  necessity  of 
ing  up  the  affairs  of  the  bank,  and  no  steps  ought  to  be  neglected  by 
irection  to  induce  the  Canadian  legislature  to  abrogate  the  usury 

and  to  allow  commercial  enterprise  the  same  free  scope  for  itt? 
ise  ^s  in  this  country.  They  could  not  conceal  from  themselves  the 
hat  unless  those  laws  were  altered  by  the  time  the  charter  expin dj 
I  would  not  exist  in  those  colonies  sufficient  field  for  banking  to  maktj 
)rth  their  while  to  carry  on  the  present  concern.  Reverting  tt»  a 
^r  of  account,  he  observed  that  he  took  the  liberty  last  year  of  alludiii'^' 
e  item  in  the  liabilities  of  "  reserve  to  meet  bad  and  doubtful  debts,'' 
a,  he  thoxight,  ought  to  have  been  deducted  from  bills  receivable,  and 

securities,  and  he  certainly  understood  from  the  hon.  chairman  that 
course  would  be  adopted  in  future. 

e  Chairman  in  reply  said,  that  the  statement  that  the  dividend  had 
lached  on  the  reserve  of  £100,000  was  erroneous.  On  the  Slat  of 
mber  last,  after  setting  aside  £30,000  to  pay  the  dividend  on  the  5th 
nuary,  the  clear  actual  surplus  was  £132,000.  Of  that  sum  they  had 
Lj.prnpnnt«;<lj  by  w:iy  of  b<:*nus,  £10,000,  being  10a.  per  share,  so  that 
ctual  reserve  of  imdivided  profits  was  £122,000.  The  hon.  proprietor 
ed  to  think  that  they  nnw  proposed  to  pay  £30,000  out  of  that  specific 
but  he  had  forgotten  that  between  '^December,  1864,  and  the  3(ith 
tne  this  year,  they  woidd  have  made  'more  than  £30,000 ;  therefore, 
-eserve  would  Im  virtimlly  £122,000.  He  could  not  at  all  coucTir 
he  opinion  that  on  the  expiration  of  the  charter  they  wtmld 
that  it  was  necessary  to  wind  up  the  concern.  (Mr.  M'Dongall : 
ily  meant  conditionaliy.)      For   his    part,  he    had  always  found 

the    majority    of    tVii'     shareholders    preferred    to    have    a   re* 


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New  Zealand  Banking  Cor^ 


gular  and  steady  dividend  than  for  it  to  be 
the  profits  at  one  time  being  very  large,  and 
at  all.  (Cheers.)  With  reference  to  impressiug 
ment  the  importance  of  making  some  alteration 
monetary  laws,  all  he  could  say  was,  that  advani 
visit  of  the  Canadian  minivSters  to  this  countrj 
with  them,  and  to  urge  reasons  which  must  stril 
this  country  to  induce  the  members  of  the  CanatJ 
the  existing  usury  laws.  In  reference  to  the  ite: 
a  provision  to  meet  bad  and  doubtful  debts,  \ 
accouuted  for  in  some  way  or  other.  It  appeared 
tion  of  the  hon.  proprietor  on  the  item  in  questi 
the  mode  of  stating  the  accounts,  and  he  could  i 
altering  the  present  system. 

Mr.  M^Dougall  said  that  the  system  he  recom 
duction  of  the  amount  credited  on  bills  recciv 
mode,  because  he  thought  it  unadvisable  to  infoi 
set  aside  such  a  large  sum  to  meet  bad  and  doul 

The  Chairman  replied  that  that  was  certainly 
The  present  mode  of  drawing  out  the  accounts  w 
of  the  express  wish  of  the  shareholders  ;  of  com 
them  kept  another  way  it  would  mjike  no  difFere] 

A  Shareholder  inquired  what  were  the  prosp 
the  Pacific  cojvst. 

The  Chairman  stated  that,  as  mentioned  in  i 
Vancouver's  Island,  and  the  agency  at  San  Fran 
expectations,  and  they  had  detemiined  upon  63 
by  establishing  an  agency  in  the  mining  district 

The  report  and  statement  of  accounts  were  tl 
and  the  retiring  directors  were  re-apix)inteil,  M 
being  unanimously  chosen  to  fill  the  vacancy  at 
the  death  of  the  late  Mr.  A.  W.  Jaffray. 

A  cordial  vote  of  thanks  to  tlie  chairman  and  d 
of  the  bank,  closed  the  proceedings. 


NEW  ZEALAND  BANKING  COE 

The  third  half-yearly  general  meeting  was  held 
oflices,  in  Cushion  Court,  Old  Broad  Street ;  M 
chair. 

The  report,  which  was  taken  as  read,  gave 
£3,532,  and  recommended  a  dividend  at  the  rate  o 
being  £467  to  be  carried  forward. 

The  Chairman  observed  that  since  the  la.st  me 
to  note  was  the  change  of  name  from  the  New  Ze 
tion  to  the  Commercial  Bank  of  New  Zealand.  1 
however,  been  carried  into  effect  only  in  the  coloi 
by  the  colonial  legislature  authorising  it  not  ha 
country,  and  until  it  did  the  original  name  was  i 
change  of  name  they  had  obtained  the  privilege 
was  a  valuable  one,  as  making  the  capital  of  the 
would  if  their  transactions  were  required  in  all  c 
coin.  The  appointment  of  the  local  board  was  th< 
in  the  report.  At  present  that  board  consisted 
partly  because  the  bank  was  as  yet  a  small  one,  a 


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London  and  Brazilian  Bank. 


849 


mlt  to  obtaiD.men  of  suoh  high  standing  as  the  two  gentlemen  who 

been  appointed.    In  accordance  with  the  wish  of  the  shareholders,  the 

mts  had  been  audited  in  the  colony  by  Mr.  Stevenson,  the  professional 

iDtant  at  Donedin,  instead  of  leaving  it  to  the  ordinary  routine. 

ything  was  therefore  satisfactory  on  the  other  side,  and  ^is  it  was 

fly  so  on  this,  he  had  very  little  doubt  that  they  would  continue  in 

une  prosperous  course  as  they  had  hitherto  proceeded.  He  concluded 

oving  the  adoption  of  the  report  and  accounts.  . 

6  Lord  Mayor  seconded  the  motion. 

reply  to  a  question, 

e  Chairman  stated  thai  the  directors  in  New  Zealand  were  required 

Id  the  same  share  qualification  as  those  on  the  London  board. 

.  Hardwick  (a  director),  answering  further  questions,  said  that  the 

ise  of  profits  in  the  last  half-year  had  been  £1,763,  which  enabled 

to  pay  the  same  rate  of  dividend  upon  a  larger  amount  of  paid-up 

il.    The  available  assets  of  the  previous  half-year  had  been  increased 

emiums  on  shares. 

B  motion  was  agreed  to  unanimously,  and  the  dividend  at  the  rate  of 

r  cent,  per  annum  declared. 

3  auditors  were  re-elects,  and  25  guineas  each  awarded  for  their 

leration. 

)  usual  compliment  to  the  chairman  and  the  other  directors  closed 

roceedings. 


LONDON  AND  BRAZILIAN  BANK. 

(traordinary  general  meeting  of  the  shareholders  was  held  on  the 
'  Jane,  at  the  London  Tavern,  Mr.  Cater  in  the  chair,  for  the  pur- 
f  considering,  with  a  view  to  their  confirmation,  certain  resolutions 

were  agreed  to  at  a  meeting  held  on  the  11th  of  May  last. 
J  Secretary  having  read  the  resolutions, 

J  Chairman  proposed  that  they  be  confirmed,  and  said  he  should  be 
'  to  answer  any  question  respecting  them. 

Shareholder  inquired  whether  Baron  Maua  came  into  the  bank  on  the 
terms  with  themselves— that  was  to  say,  with  a  subscribed  capital  of 

one  million  and  a  half,  whilst  they  subscribed  one  million :  and 
ler  he  paid  £J.  10s.  a  share  in  money  or  negotiable  securities  as  the 
solders  of  the  bank  paid. 

)  Chairman  replied  that  Baron  Maua  entered  as  a  partner  pari  passu 
themselves,  he  and  his  colleagues  having  three-fifths,  and  the  share- 
rs of  the  company  holding  two-fifths  of  the  capital  at  £7.  lOd.  per  share, 
persons  were  disposed  to  ask  what  inducement  the  baron  could  have 
ric  iutfi  the  cuiicem.  He  lifwl  tho  iu  <  luce  men  fc  of  placing  such  a  concern 

iu  safe  oiistcKlyj  and  participating  in  the  |n'f>fjts  they  made.  It  was  a 
iiitl  take  arrangciQOut,  and  he  thought  it  ought  to  be  satisfactory  to 
irties. 

reply  to  further  questions , 

?  Chairman  said  there  was  no  limit  to  the  circulation  of  the  bank, 
t  that  for  every  £!lQOfiOO  of  notes  issued  tltey  should  have  £250,000 
&cie ;  but  he  hoped  the  circulation  would  not  exceed  the  wants  of 
^mitiy.  There  was  no  objection  to  isauing  a  pamphlet  containing  the 
^  of  the  agreement,  and  a  report  of  the  last  two  meetings. 
^  motion  waa  then  agreed  to  and  the  meetiDg  sex^arated. 


VOL,  XXV, 


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850 


NATIONAL  PROVINCIAL  BANK  ( 

A  SPECTA.L  general  meeting  of  proprietors  was  he 
London  Tavern,  ]Mr.  Laurie  in  the  chair,  to  ' 
of  now  authorising  the  court  of  directors 
bankers  in  London,  and  at  places  not  exceeding 
soon  as  they  may  think  fit,  and  for  that  x)iirpose 
and  to  comply  with  such  obligations  as  may 
Parliament  respecting  banks  of  issue,  or  if  the  < 
sirable,  for  the  purpose  aforesaid,  to  discontin 
and  to  pass  such  resolutions  on  the  subject  as  th' 
upon." 

The  Chairman  said — ^I  cannot  help  feeling  vei 
ment  at  the  circumstances  imder  which  we  meet 
the  honour  of  addressing  you  from  this  chair, 
probability  that  a  measure  of  relief  which  woul 
these  restrictions,  which  every  one  who  has  disc 
believe,  admitted  to  be  most  unfairly  imposed 
absolutely  become  law,  at  all  events  passed  beyc 
its  progress  through  the  legislature,  and  that  m; 
pleasant  one  of  congratulating  you  on  our  succ 
exercise  of  our  newly  acquired  freedom.  It  is  ] 
the  causes  by  which  a  bill,  not  obligatory,  but  pe 
old  privileges,  but  conferring  fresh  rights — supi' 
having  received  the  assent  of  those  who  officia 
whom  it  afiected,  has  been  defeated  in  its  very  1 
Commons,  which  it  had  reached  without  even  a 
me  to  say  that  I  think  we  were  fully  justified  in  1 
which  we  entertained.  In  respect  to  the  cours 
deliberation,  your  directors  have  determined  to  i 
perhaps  act  wisely  if  I  confined  mj^elf  to  the  m 
which  I  have  been  instructed  to  lay  before  yot 
at  which  you  will  arrive,  I  do  not,  after  the 
wishes  at  the  meeting  last  year,  anticipate  mucl 
having  been  now  for  so  many  years  one  of  yo 
this  subject  a  very  anxious  consideration,  I  hav 
which  have  convinced  me  of  the  very  great  ir 
necessity,  of  extending  our  operations  to  the 
miglit  not  be  entirely  uninteresting  to  the 
question  of  circulation  I  miLst  confess  that  I  i 
we  have  verj'  much  overrated  its  imi)ortance. 
operations  in  the  country.  It  is  a  good  adve 
money  value  is  in  relation  to  the  present  gr( 
quite,  I  think,  unworthy  of  consideration.  Ir 
blishment  it  was,  of  course,  a  matter  of  imp 
grown  it.  Since  the  Act  of  1844  it  is  station; 
our  growth  or  advance  with  our  progress.  Wli 
unusually  high  it  is,  of  course,  more  valuabl 
times  it  gives  us  no  such  advantages,  and  indee 
agency  and  the  usual  compensation  from  the 
very  nearly  meet  the  deficiency  which  the  loss 
occasion  in  your  profits.  I  was  more  especiall 
be  entirely  masters  of  our  own  afi"airs,  and  ind 
interests  might  not  always  coincide  with  our  ow 


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National  Provincial  Bank  qf  England. 


851 


n  I  am  to  bear  the  fullest  testimony  to  the  aooaTapy,  courtesy,  and  in- 
rity  with  which  our  present  London  agents  have  acted  in  all  the  trans- 
ions  which  have  been  entrusted  to  their  care ;  but  it  must  be  obvious 
t  there  must  always  be  inconvenience  in  introducing  our  customers  to 
iblishments  whose  very  excellencies  may  make  them  dangerous  rivals. 
',  it  is  also  no  less  certain  that  the  liigh  reputation  enjoyed  by  us  already 
st  at  once  bring  us  an  ample  accession  of  business  in  a  more  extended 
l.  Amidst  the  numerous  new  financial  undertakings  now  arising  on  all 
js  around  us,  we  must  come  at  once  to  the  front,  if  we  would  not  run 
risk  of  seeing  others  seize  the  place  which  should  be  ours.  Such,  gen- 
aen,  have  been  the  grounds  on  which  I  have  arrived  at  the  conclusion 
^,  even  at  the  sacrifice  of  our  circulation,  the  best  interestsof  the  bask 
lire  that  we  should  extend  our  operations  to  London ;  and  it  now  re- 
ns  for  you,  in  the  words  of  our  lamented  friend,  Mr.  D.  Eobertson,  to 
de  upon  the  adoption  of  one  of  two  courses — either  a  policy  of  pro- 
is  suited  to  the  times,  which,  with  good  management,  must  be  followed 
a  great  accession  of  banking  prosperity  or  a  policv  of  indifference, 
er  which,  in  my  humble  opinion,  the  bank's  onward  career  would  be 
ously  imx>eded  and  its  future  prospects  creatly  impaired.  I  have  now 
love  that  the  following  report  be  adopted  : — 

In  the  report  adopted  at  the  annual  meeting  in  1864,  the  directors  ex- 
sed  their  views  in  the  follovdng  paragraph : — *  The  directors  have 
e  to  the  full  conviction  that  the  interests  of  the  bank  require  that  its 
^ations  should  be  extended  to  London  at  the  earliest  possible  period,  and 
J  trust  that  measures  may  be  devised  to  effect  that  object.  There  are 
some  technical  difficulties  which  the  directors  would  wish  to  see  re- 
ed  before  calling  on  the  proprietors  to  sanction  such  a  course,  but  they 
have  no  hesitation  in  assuring  the  shareholders  that  they  will  allow 
ime  to  be  lost  in  unnecessary  delay.'  And  a^ain,  in  the  report  adopted 
he  11th  ult.,  reference  was  made  to  the  subject.  The  tecmiical  diffi. 
ies  alluded  to  were  removed  by  act  of  parliament  at  the  instance  of  her 
jcsty's  government  in  the  session  of  18(>4 — acting  in  compliance  with 
representations  of  the  directors.  The  communications  then  held  with 
Chancellor  of  the  Exchequer  led  to  the  hope  that  the  restrictions  now 
osed  by  law  upon  joint-stock  and  private  banks  of  issue  might  be 
lified  during  the  present  session,  and  the  directors  resolved  to  await 
decision  of  parliament  upon  a  measure  introduced  for  that  object.  The 
iiks  of  Issue  Bill,'  introduced  by  the  Chancellor  of  the  Exchequer,  was 
ied  to  a  stage  when  there  seemed  every  prospect  that  its  provisions 
lid  have  become  law ;  but,  prior  to  the  third  reading,  the  united  oppo- 
>n  of  the  London  bankers,  and  of  a  section  of  the  country  banks  of 
e,  proved  so  strong  that  the  Chancellor  of  the  Exchequer  withdrew  the 
last  Thursday  evening.  Under  the  provisions  of  the  bill,  banks  of 
e  would  have  been  empowered  to  carry  on  business  in  London,  or 
iiin  sixty-five  miles,  to  increase  their  number  of  partners  beyond  six,  and 
ransfer  their  right  of  issue  to  other  banks,  and,  in  return^  would  have  been 
Hired  to  pay  to  the  Treasury  one  per  cent,  on  their  issue,  and  would 
e  taken  a  leaae  terminable  at  the  end  of  fifteen  years,  unless  parlia- 
at  should  otherwise  determine.  To  such  terms  the  directors  gave  their 
int,  and  hoped,  when  they  last  met  the  proprietors^  to  have  been  able  to 
ite  them  to  give  powers  to  come  under  the  provisions  of  the  bill.  By 
withdrawal  of  the  bill,  and  the  practical  defeat  of  the  attempt  to  re- 
ve  restrictions,  the  directors  are  thrown  back  to  the  position  in  which 
y  were  when  they  first  expressed  their  convictions  that  the  interests  of 


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I 


852 


National  Provincial  Bank  of 


the  bank  require  the  extension  of  their  operatic 

the  forfeiture  of  their  right  of   issue  would  th( 

question  received  the  careful  consideration  of  oui 

Mr.  Daniel  Robertnon,  for  many  years,  and  he  ha 

to  the  directors  his  well  matured  reasons  for  re< 

of  the  bank  in  London  at  the  earliest  possible  j 

after  full   consideration,  admit  the  conclusive 

offered.      The  directors   and  the  present  mana 

and     anxiously    considered    the    subject,    and 

the    reasons    which    induce    them    to    recomm^ 

give   by    resolution    the    necessary    powers    to 

such   manner   and   form,    acd    at   such  time, 

the    directors    may    deem    expedient.        Ist.    '. 

from  the  increased  facilities  of  intercourse,  the 

operations  both  at  home  and  abroad,  it  is  ess 

of   the   bank's   varied  interests  that  the  Njvti* 

England  should  open  in  the  metropolis.     2nd.  ' 

present  state  of  the  law  imposes,  of  employing 

duct  of  the  bank's  ordinary  business,  is  not  oi 

venience  and  expense,  but  tends  to  divert  the  st; 

its  legitimate  channel.     3rd.  The  facilities  whicl 

its  power  to  offer  to  the  public  in  their  comi 

London  and  the  provinces  are  seriously  interfere 

precluded  from  acting  as  its  own  agent,  as  well  aj 

nients  both  at  home  and  abroad.     4th.  The  ban 

ticipating  along  with  its  contemporaries  in  the 

business  which  London,  as  the  monetary  centr 

and  from  forming  connexions  by  transfer  or 

establishments  that  may  be  solicitous,  in  the  pi 

banking,  of  cultivating  friendly  relations  with  t 

Mr.   Wade   seconded  the   motion,  and   expn 

although  the  powers  of  issue  had  been  of  advan 

stage  of  the  bank,  the  advantages  now  derived  f 

than  counterbalanced  by  the  London  business  ^w 

and  the  avoidance  of  the  expense  and  inconveni 

Mr.  Creak  thought  the  loss  of  the  note  cir< 

regret,  and  ho  had  at  one  time  thought  that  it  r 

the  agency  of  some  other  bank  without  sacrifii 

London  business.  The  board,  however,  had  satisf 

woiUd  be  illegal  and  impracticable,  therefore  ho 

the  report. 

Several  shareholders  spoke  in  approval  of  the 
In  reply  to  a  question  as  to  what  would  be  t 
from  the  abandonment  of  the  right  to  is.sue  note 
The  Chairman  said  that  their  note  circulation  ii 
and  as  they  were  aware,  the  act  of  that  year  mad( 
except  the  Bank  of  Englaiid.  He  apprehended, 
pulsory,  that  they  would  receive  as  usual,  from 
allowance  of  one  per  cent,  on  at  least  two-third 
issue  when  they  relinquished  it.  He  hoped,  inde 
Then  they  woidd  save  the  expense  of  agency, 
would  be  1  per  cent,  on  the  amount  of  circuJ 
present  paid  no  interest,  and  the  further  loss  of 


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'I      -       } 


,  Buenos  At/res  and  Elver  Plate  Hank.  853 

which  tlffey  would  have  to  keep  in  hand  beyond  the 
sary  to  keep  'now. 

ought  that  taking  money  at  4  or  5  per  cent.,  the  value 
as  about  3  per  cent. 

ieved  that  the  advantages  arising  from  increased  bus- 
expenditure  would  more  than  counterbalance  any  loss 

Ider  'stated  that  one  of  the  branch  managers  had  esti- 

from  the  withdrawal  of  the  power  to  issue  notes  would 

year. 

lought  that  the  outside  loss,  taking  money  at  5  per 

the  outside    average   value,    would   be    £24,000     a 

iug  into  consideration  the  actual  loss  on  the  circula- 

interest  upon  the  additional  sum  they  would  have  to 

3serve ;    but  against  this  there  would  be  the  allowance 

England,  the  saving  of  expense  in  London,  and  that 

rould  of  itself  be  sufficient  to  make  up  the  entire  loss, 

usiness,  and  the  deposits  which  they  would  have,  but 

y  them. 

)ut  and  carried  unanimously. 

lien  moved  a  resolution  empowering  the  directors  to 

[isiness  in  London,  or  any  place  within  65  miles  thereof, 

B  to  discontinue  the  issuing  of  bank  notes. 

i  by  Mr.  Paull,  M.P.,  aud  carried  imanimously  ;    and 

he  chairman  and  directors  concluded  the  proceediugs. 


:ekos  aybes,  and  rhter  plate  bank, 

LIMITED. 

general  meeting  of  the  shareholders  of  this  bank  was 
isea  House,  City,  on  the  19th  June ;  Mr.  Hackblock  in 

Ir.  A.  E.  Smithers)  having  read  the  notice  convening 

a-ted  that  tliis  being  an  extraordinary  meeting  no  other 
done  than  to  declare  the  ad  interim  dividend.  .  This 
ailed  very  much  against  the  wish  of  the  directors,  who 
n expedient  to  hold  one  at  present,  but  a  letter  having 
I  a  large  body  of  the  shareholders,  the  directors  in 
ilies  of  the  subscribers  to  that  letter  had  resolved  on 
he  had  stated  to  one  of  the  subscribers  the  reasons  why 
sdient,  and  quite  contrary  to  the  custom  of  exclusively 

so.  The  articles  of  association  only  required  them  to 
ting,  when  the  board  published  a  statement  of  accounts 
but  on  this  occasion  it  was  imjwssiblo  to  do  so.  The 
Lisiness  in  the  River  Plate  was  transacted  in  the  first  . 

financial  year,  and  it  would  interfere  greatly  with  their 
I  audit  now,  for  it  rejxlly  was  a  very  troublesome  aflair 
ent  currencies  wliich  they  would  have  to  go  through. 
istances  the  board  hoped  that  it  would  not  occur  again 
because  they  really  could  afford  the  shareholders  no 
id  interim  dividend  might  just  as  well  be  declared  by  a 
tie  shareholders  as  at  an  extraordinary  general  meet- 


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854  Londoiif  Buenos  Aj/rcs  and  River 

ing.  It  had  been  stated  to  him  that  th^  ol 
ing  at  the  present  time  was  not  for  the  piirp< 
and  audited  statement  of  account,  but  that  th 
satisfied  with  knowing  something  of  the  aftairs  oj 
asked  them  for  their  forbearance  in  not  pr 
because  he  should  be  sorry  to  refuse  to  give  them 
he  did,  the  opinion  that  they  were  at  all  times  er 
tion  which  could  be  properly  given  to  them.  Of 
details  which  it  might  not  be  prudent  to  enter  ] 
present  moment ;  therefore  the  shareholders  w( 
reasons  if  he  shoiild  decline  to  answer  any  partici 
be  put  to  the  board  with  respect  to  their  affairs, 
that  as  far  as  Buenos  Ayres  was  concerned  their 
continued  and  uninterruptetl  success.  The  ratee 
the  last  meeting  had  been  very  high,  and  their  t 
corresponding  amount  of  profit.  There  had  b 
failures,  but  he  was  happy  to  say  that  prior  to  th 
acting  upon  the  knowletlge  it  had  received  of  d 
had  deemed  it  expedient  to  provide  for  any  sue 
during  the  present  year,  and  he  was  happy  to  sa; 
made  had  proved  amply  sufficient  to  cover  all 
time,  and  that  their  business,  under  the  care  of 
manager,  had  been  progressing  quite  as  satisfact 
expected.  (Cheers.)  With  regard  to  Monte  Vi( 
under  one  of  the  severest  calamities  that  ooidd  be 
civil  war.  Under  those  circumstances  they  ha 
structions  to  their  agents  to  abstain  from  doi 
such  as  could  be  transacted  with  entire  safety 
inform  them  that,  to  the  great  credit  of  tl 
structions  had  been  fully  carried  into  effe 
the  banks  of  issue  having  suspended  spe 
suffered  some  little  loss  on  exchanges,  the  ha 
on  the  whole,  terminated  in  a  profit,  and  not,  as 
would  be  the  ca,se,  in  a  loss.  (Cheei-s).  He  had 
their  future  prosi>erity  in  Monte  Video,  in  com 
who  had  carried  on  a  lai'ge  biLsiness  there  as 
taken  the  office  of  agent,  and  transferred  the  bes 
them.  They  had  felt  it  necessary  to  make  a  litt! 
ment  at  Monte  Video,  in  consequence  of  some  d 
that  branch  and  Buenos  Ayies,  and  the  board  had 
of  Mr.  Ruding.  Those  differences  were  now  at  a 
in  future  the  two  branches  would  work  hannon; 
only  further  to  say  that  they  exj^ctedto  hear  of  i 
next  month,  and  from  his  advice,  and  the  person 
officers  of  the  bank  would  have  with  him,  the 
receiving  great  advantage  from  his  extended  ic 
which  could  not  but  be  productive  of  great  good 
the  shareholders.  (Hear,  hear.)  The  board,  at 
clared  an  interim  dividend  of  5  per  cent.,  which, 
in  December  last,  made  the  year's  dividend  at 
and  th^  had  no  doubt  that  not  only  would 
tained  in  future,  but,  without  pretending  to  pro 
^ot  see  into  the  future,  he  thought  that  from  tl 
gress  of  their  affairs,  they  would  be  able  to  ad 


I    i\ 


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London,  Buenos  At/res  and  River  Plate  Bank. 


855 


^ire  fund,  and  also  to  declare  a  very  satisfactory  bonus.  (Cheers.)  Li 
elusion,  Le  said  that  he  should  be  happy  to  answer  any  questions  that 
x>uld,  consistently  with  his  duty,  and  wiiii  the  general  interest  of  the 
reholders. 

ir.  Sichel  said,  that  as  one  of  the  persons  who  had  signed  the  letter  to 
ich  allusion  had  l^en  made,  and  which  expressed  the  opinion  of  share- 
iers  holding  something  like  2,000  new  shares,  he  thought  the  meeting 
i  that  dajr  had  answered  every  purpose  for  which  it  was  intended,  be- 
se,  at  a  time  when  their  pl'operty  was  depreciated  by  disturbances  in 
River  Plate,  and  when  the  slightest  rumour,  however  unfounded,  was 
^ated  to  bring  the  shares  down,  it  had  enabled  the  chairman  and  the 
rd  of  directors  to  give  an  assurance  to  the  shareholders  that  the  pro- 
^s  of  the  bank  had  been  satisfactory,  and  that  they  could  honestly  and 
ly  declare  an  ad  interim  dividend.  He  was  sure  that  the  shareholders 
lid  be  much  gratified  at  the  statement  they  had  heard,  and  he  had  no 
ti  to  press  foir  any  detailed  explanation  on  questions  which  the  board 
tight  it  would  be  iniurious  to  the  interests  of  the  company  to  discuss, 
'he  Chairman  said  he  should  be  most  happy  to  answer  any  questions, 
he  certainly  did  not  think,  in  the  present  state  of  affairs,  it  would  be 
edient  to  go  too  closely  into  matters.  He  would  take  this  opportunity 
ttating  that  Mr.  Kuding,  in  leaving  the  service  of  the  bank,  carried 
h  him  the  highest  respect  of  .the  board,  and  they  felt  perfectly  satisfied 
h  the  care  and  prudence  he  had  manifested  in  the  late  emergency.  He 
on  his  own  resignation,  and  it  was  due  to  him  that  the  board  should 
Ice  this  acknowledgment.  They  had  applied  for  certain  extensions  at 
nte  Video,  wnich  might  hereafter  render  an  addition  to  their  capital 
essary,  but  the  matter  was  not  a  pressing  one,  and  he  should  be  glad 
icar  the  views  of  the  shareholders  on  the  subject. 
'Ir.  Sichel  reminded  the  chairman  that  at  the  last  meeting  a  pledge 
}  given  that  if  more  capital  was  required  it  should  be  raised  in  the 
pe  of  new  shares,  to  avoid  the  contingency  of  making  a  call.  He 
ught  the  general  feeling  of  the  shareholders  was,  that  whenever  new 
>ital  was  issued  it  should  bo  at  such  a  price  as  would  add  to  the  wel- 
e  of  the  company  by  increasing  the  reserve  fund.  A  call  on  the  old 
kres  would  only  have  the  effect  of  lowering  the  market  value,  by  causing 
;reat  many  sales,  and  he  was  afraid  that  if  new  capital  was  at  present 
»ught  in  it  would  scarcely  realise  its  market  value ;  but  one  thmg  was 
tun,  that  new  shareholders  ought  not  to  be  allowed  to  come  in  at  a  lower 
G  than  the  old  shareholders.  If,  therefore,  new  share  capital  was  issued 
)ught  to  be  at  a  premium,  which  should  go  to  the  reserve  fund, 
rhe  Chairman  admitted  that  such  a  plc^e  aa  that  alluded  to  had  been 
en,  but  as  the  question  had  been  raised  he  had  mentioned  it  for  the 
npc^  of  ascertaining  the  views  of  the  shareholders. 
A.  Shareholder  said  that  he  understood  Mr.  Bruce  to  say  at  the  last 
ieting  that  no  further  issue  would  be  made  until  £10  was  paid  up  on 
B  old  shares,  and  another  £2. 10a.  on  the  new. 

The  Chairman  explained  that  what  Mr.  Bruce  said  was,  that  there  would 
t  be  more  than  £40  paid  up  on  the  £100  shares,  and  £10  upon  the  £25, 
uch  would  be  equivalent. 

The  ad  interim  dividend  of  £5  per  cent,  was  then  declared,  and  a  cordia 
^  of  thanks  to  the  chairman  and  directors  terminated  the  proceedings. 


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856 


BRITISH  LINEN  COMPANY 

At  the  general  meeting  of  the  proprietors  of  tl 
Bank,  held  at  Edinburgh  on  the  19th  June,  the 
balance-sheet  of  the  books  on  the  15th  April, '. 
with  the  reports  of  the  directors  : — 

LIABILITIES. 

Deposits       

Acceptances  by  the  company  and  their  London  corre 

and  letters  of  credit  outstanding      

Notes  in  circulation  


Capital         

Reserved  fund  or  rest        

Net  profit  of  the  year  to  15th  April,  1865,  after  fall} 
for  bad  and  doubtful  debts 


ASSETS. 

Advanced  on  cash  and  credit  accounts 

Bills  under  discount  

Bank  premises  at  Edinburgh,  and  the  branches 

Government  stocks,  short  loans  in  London  on  g 
securities,  and  cash  balances  with  London  corre 
£1,577,400.  4s.  dd.  Stock  in  the  Bank  of 
and  other  stocks,  bonds,  railway  debcnti 
i:<)92,lP2.  7s,  Id,  Gold  and  silver  coin,  no 
Bank  of  England,  and  other  banks,  £426,876.  i: 


After  declaring  a  dividend  for  the  year  of  11 
tax,  which  absorbs  £110,000,  the  meeting 
£41,042.  9s.  7d.  to  be  applied  as  follows  : — In  re 
bank  houses  and  offices,  £10,000 ;  in  reduction  ( 
meut  funds,  £10,000;  to  be  carried  forward 
£21,642.  95.  ld\ 


SOUTH  AUSTRALIAN  BANKIN 

The  twenty- fourth  annual  general  meeting  oi 
South  Australian  Banking  Company  was  held  < 
bank  offices,  Old  Broad  Street ;  G.  Martin,  Esq. 
Mr.  W.  Purdy  read  the  following  report  and  i 
"Tlie  court  of  directors  have  the  satisfacti 
Australia  continues  in  a  sound  and  progressi^ 
resources  of  the  colony  are  being  developed,  and  it 
The  agricultural  interest  has  been  particular] 
prices  for  wheat  and  flour,  and  one  of  the  imme 
bring  a  greater  acreage  under  cultivation.  Wit 
lias  enlarged  the  area  of  its  business.     The  com 


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.South  Australian  Banking.  Con^pany. 


857 


IB  done  so  with  safety,  as  operations  have,  for  the  most  part,  been  based 
lie  staple  productions  of  the  oolony,  and  are  always  conducted  with  a 
t  regart  to  the  security  of  the  assets.  An  increase  of  banking  aocom- 
ation,.  however,  has  been  witnessed,  which  has  tended  to  produce  a 
T  rate  of  profit  than  might  have  been  expected ;  but  this  bank;  it  is 
A  will  be  able  to  meet  any  undue  competition,  should  such  arise, 
out  material  prejudice  to  its  resources.  Two  new  branches  have  been 
^lished ;  one  at  Moonta,  which  is  an  active  mining  district,  and  the 
r  at  Tanunda,  to  afford  facilities  to  a  Grerman  agricultural  settlement 
luch  promise.  The  court  have  to  regret  the  decease  of  their  late 
rinan,  Mr.  Edward  Divett,  who  for  many  years  presided  over  their 
>erations,  and  they  feel  assured  the  proprietors  will  concur  in  their 
eciation  of  his  high  character,  wdl-informed  judgment,  and  the 
Lent  services  rendered  by  him  during  his  long  connection  with  the 
L.  The  accounts,  duly  audited,  are  annexed,  and  from  the  balance  of 
its  the  court  have  the  pleasure  to  recommend  a  dividend  of  10  per 
;.  per  annum,  free  of  inoome-tax,  payable  half-yearly." 

Balance'Sheet,  SlMt  December,  1864. 

LIABILITIES. 

olation       •• •     

)sit8  and  current  accounts    

t8  dae  to  colonial  banks  and  other  liabilities      

payable 

tal  paid  up       

:rved  Fand ...     ••• 

rest  on  ditto     

it  and  loss 


.    £105,700    0  0 

.       464,205  16  4 

.       206,599  15  6 

157,655    9  11 

500,000     0  0 

104,400     0  0 

5,600    0  0 

52,890     1  2 

£1,597,051     2  11 


ASSETS. 

I  and  ballion        

( receivable  and  secnrities 

ts  due  from  colonial  banks  and  other  assets 

k  premises 

istments  for  reserved  fund 


.     £166,425    3    3 

1,060,160  13  11 

252,591   14    4 

18,314  11     5 

109,550    0    0 

£1,597,051     2  11 


PROFIT  AKD  LOSS  ACCOUNT. 


idcna,  July,  1864.. 
'0,  January,  1865.. 
ance  this  year    ... 


Ance  Ust  year...    . 

•fit.iroiQ  all  offices . 


£25,003  2  4 
25,003  2  4 
52,890     1     2 


£102,896 

5  10 

£63.776 
49,120 

3    3 

2     7 

£102,896 

5  10 

rhe  Chairman,  in  moving  the  adoption  of  the  rejwrt  and  accounts,  said, 
ice  they  had  last  met  they  had  sustained  a  nreat  loss  by  the  death  of 
f '  Edward  Divett,  whose  loss  the  directors  fdt  as  deeply  as  any  body  of 


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858  South  Australian  Banking 

men  could  do.    He  was  a  man  fully  acquainted 

bank,  and  whose  conduct  was  imiversally  appro 

by  every  one  who  happened  to  make  his  acquai: 

that  period  no  chairman  of  the  company  had 

taken  the  chair  that  day  at  the  request  of  his 

knowledge  was  not  at  all  equal,  relative  to  i 

their  late  chairman.     Since  they  met  last,  chai 

place  in  some  parts  of  the  arrangements  of  the 

at  Adalaide,  Mr.  Dixon,  on  account  of  great 

leave  the  colony  for  a  short  period,  and  had  c< 

and  they  had  great  pleasure  in  inducing  Mr.  W 

for  a  short  time.     They  had  also  felt  great  pl( 

Stirling,  who  would  be  the  successor  of  the  olc 

Mr.  Stirling  was  a  gentleman  who  had  a  consid 

banking  business  in  the  colonies,  and  from  his 

his   great  capabilities,  it  was  of  great  imports 

board,  well  acquainted  as  he  was,  by  residei 

with  tlie  various  parties  with  whom  they  had  t 

doubt  they  would  derive  great  benefit  from  the 

amongst  them  (hear,  hear).    With  regard  to  tl 

the  report  stated  very  fully  how  that  stood.    H 

perous  year,  though  they  did  not  think  the  pr 

so  large  as  they  ought  to  be,  considering  the 

but  they  had  made,  notwithstanding,  a  profit  wi 

would  be  well  satisfied  (hear,  hear).     South  Aus 

and  progressing  condition.     That  was  stated  in 

that  shape  to  satisfy  anybody  that  might  be  in< 

had  prepared  a  comparative  statement  of  the  y< 

would  show  how  much  the  colony  had  increi 

18G3  was  140,000;  in  18C4  it  was  148,000. 

£2,358,817 ;  in  18C4  they  were  £3,305,546;  or  i 

The  imports  in  1863  were  £2,028,279;  and  i 

revenue  in  1863  was  £625,000,  and  in  1864,  £C 

in  18G3  was  £635,000;  in  1864,  £612,000.     The 

£181,084 ;  in  1863,  £269,000.    Banking  deposit 

were  £777,000 ;  and  in  1864  they  were  £l,15fi 

1863  was  £261,000;    and  in  1864,  £327,000; 

£2,079,000 ;  and  in  1864,  £2,266,061.   The  savi] 

wore  £189,063 ;  and  in  1864,  £231,800 ;  the  ass( 

and  in  1864,  £245,000.     So  that  by  every  mea 

sperity  of  the  colony  was  shown  to  be  progress 

bank  last  year  was  extremely  favourable.    In 

balance  for  division  was  £2,000  more  than  this 

year  enabled  tliem  to  oflfer  a  dividend  of  fully  1 

great  reason  to  hope  that  it  would  go  on  as  fo 

business  the  bank  did,  and  that  the  profits  wei 

one  time  anticipated  they  would  be,  they  were,  oi 

very  satisfactory  to  the  directors,  and  he  trusted 

so  by  the  shareholders.     So  far  as  they  had  an 

the  liabilities  of  the  bank,  they  were  all  safe.   IS 

to  their  expectations  during  the  year,  and  they  "v 

dition.     (Hear,  hear.)    He  begged  to  move  the  a 

accounts. 

Mr.  Kerr  bagged  to  second  the  motion. 


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South  Australian  JBanling  Company. 


859 


r.  MoTphett  asked,  of  the  profits  of  last  year  bow  mach  was  made  in 
olonies  and  how  mnch  at  home.  He  also  wished  to  know  in  what 
rities  the  reserve  fund  was  invested. 

16  Chairman  tiliought  that  these  were  mattes  far  th.^  discretioii. 
r.  Morphett  asked  whether  there  were  any  braodtieB  established  with- 
mthority  from  the  home  board. 

te  Cbairman  said  there  was  a  little  oompficationy  but  the  establishment 
I  branches  wu  sanctioned,  but  sometimeB  they  were  oUiged  to  eetab- 
\  branch  before  they  could  assent  or  know  of  it. 
r.  Morpbett  adked  whether  the  board  in  London  were  aware  that  in 
last  balance-sheet  the  local  directors  and  managers  had  struck  6S.  all 
>ad  debts,  and  reduced  all  the  secunties  to  their  ytopet  value. 
le  Chairman  said  they  had  used  every  possible  precaution,  and  they 
satisfied  they  were  fidly  covered. 

r.  Morphett  said  the  proprietors  ought  to  come  to  some  decision  as  to 
her  the  reserve  fund  was  of  a  sufficient  amount.  It  was  fixed  at 
),000,  or  one-fifth  of  the  whole  capital,  and  it  then  stood  at  £110,000. 
loped  this  would  not  be  allowed  to  go  on,  and  that  it  should  not  be 
inued  for  their  successors'  benefit.  A  large  reserve  fund  operated  to 
n  the  vigDance  which  in  banking  a£fairs  ought  to  be  exercised.  On 
subject  of  branches,  they  had  established  a  considerable  number. 
Stevcn£»  was  always  opposed  to  the  lestablishmeni  of  brandies  to  any 
idc  rablo  extent.  Of  course  they  muftt  meet  the  wants  of  a  new  district 
le  p<3|nilation  increased,  but  they  required  great  care  and  vigilance, 
he  believed  several  of  the  branches  aid  not  pay  their  expenses.  He 
ratulated  them  on  the  appointment  of  Mr.  Stirling^  a  gentlaaian  of 
t  colonial  experience  and  knowledge. 

X.  Wheeler  quite  concurred  in  what  had  been  said  about  the  reserve 
I,  but  be  attached  very  little  importance  to  the  opinion  of  Mr.  Stevens 
be  subject  of  the  branches. 
be  report  was  unanimously  adopted. 

r.  G.  Sillman  then  moved  the  adoption  of  the  dividend  at  the  rate  of 
er  cent,  per  annum. 

r.  C.  Chippendale  seconded  the  motion,  which  was  also  unanimously 
)ted. 

r.  Alexander  Morrison  moved  the  reappointment  of  James  Henry 
tie  and  Fred.  C.  Wilkins,  Esqs.,  as  directors,  and  of  Mr.  C.  Chippen- 
and  Mr.  Jonah  S.  Wells,  as  auditors.  He  also  proposed  the  election 
Ir.  Stirling  in  the  place  of  the  late  Mr.  Divett. 

^.  Bedford  seconded  the  motion  which  met  with  a  unanimous  ap- 
ral. 

he  Chairman  moved  that  the  thanks  of  the  meeting  be  given  to  the 
nial  managers,  for  their  services  during  the  past  year. 
his  motion  was  also  agreed  to. 

^'  Morrison  proposed  that  the  best  thanks  of  the  meeting  be  given  to 
W.  Purdy. 

Jiis  motion  was  carried  by  aoclamation.  , 

(r.  Stirling  briefly  returned  thanks.  He  was  miich  obliged  for  the 
onr  done  him  in  ^ectxng^  him  a  member  of  the  board.  He  could 
J^e  that  any  knowledge  he  possessed  would  always  bo  at  the  service 
ue  company. 

J^.  Pttrdy  also  returned  thanks. 

^  the  motion  of  Mr.  Maclaren,  seconded  by  Mr.  Bichardson,  thanka 
-e  voted  to  the  chairman,  and  the  proceedings  were  brought  to  a  close. 


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8G0 


LONDON  JOINT-STOCK 

A  MEETING  of  the  proprietors  of  this  bank  wa 
at  their  house,  Princes  Street ;  Mr.  Blount  in  t 

The  Chairman  briefly  explained  that  it  so  h 
tors  had  resigned  at  one  time ;  the  first,  Mr 
•having  to  go  abroad;  Mr.  Delafosse,  on  ace 
SiWa,  from  the  fact  of  his  having  partially  1 
holders  were  called  together,  therefore  to  fill  n 
proposed  that  Messrs.  F.  J.  Jordain,  G.  G.  Nice 
<lirector8  of  the  bank. 

The  motion  was  agreed  to  and  the  meeting  s 


OTTOMAN  BANK  (IN  LIQI 

A  MEETINO  of  the  registered  holders  of  shares  : 
tion,  was  held  on  the  26th  June,  at  the  London 
of  the  remaining  assets  and  the  final  liquidatio: 

I  pany  ;  Sir  W.  Clay  presided. 

The  following  report  was  taken  as  read : — " ' 

}  the  meeting  that,  acting  on  the  authority  of  th 

I  shareholders  on  the  5th  of  March,  1863,  and  in 

of  incorporation,  they  have  completed  the  liqui 
bank,  and  they  are  now  enabled  to  present  the 
balance  shown  by  this  account  will  allow  a  th 
lus.  per  share  on  the  old  shares,  and  Is.  Gd.  pe 
second  issue  of  the  late  bank.  The  directors  1 
a  considerable  sura  beyond  the  reserve  fund,  ai 
to  make  a  total  distribution  of  £5.  5s.  per  shai 
per  share  on  the  shares  of  the  second  issue, 
tlie  whole  of  the  company's  capital.     The  resi 

*  received  with  great  satisfaction." 

Final  Balance-Sheet,  26/A  Jt 
Dr. 

January  5th,  1864.    To  first  distribution  (£4  per  oJ 

'  8 J.  per  share  of  the  second  issue      

April  5th,  1805.     To  second  distribution  (10«.  per  o 

\s.  per  sliare  cf  the  second  issue)     

'  June  26th.     To  proposed  final  distribution  (15j.  pt 

and  Is,  6d,  per  share  of  the  second  issue)  ,•. 


Cr. 
March  5th,  1863.    By  balance,  after  appropriation! 

*by  irencral  meeting  of  shareholders,  on  5th  M 
June  '26th,  1805.     By  assets  realised  m  liquidatioi 

reserve  fund  and  interest  less  discharge  of  liu 

expenses  of  liquidation  ...         


*  The  Chairman  cxidaincd  that  the  meeting  w 

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Otlaman  Bank  {in  Liquidation). 


861 


nation  given  at  the  meeting  on  the  9th  of  April,  which  meeting  was 
^Ijoumment  from  the  important  meeting  of  the  5th  of  March,  at 
h  resolutions  had  been  passed  for  the  dissolution  of  the  bank,  for 
ig  the  formal  sanction  of  the  shareholders  to  the  arrangements  by 
li  they  became  shareholders  of  the  new  Imperial  Ottoman  Bank,  and 
for  empowering  the  directors  to  take  the  necessary  steps  for  carrying 
J  resolutions  into  effect,  and  for  winding  up  the  aflairs  and  liquidating 
-ssets  of  the  Ottoman  Bank.  The  meeting  of  the  9th  of  April  was  a 
lutionary  step  merely,  it  having  been  thought  possible  that  difficulties 
it  arise  with  regard  to  some  of  the  contemplated  measures.  Ko 
iiities,  however,  had  arisen,  and  in  consequence  the  meeting  was  ad- 
led  sine  die  without  any  resolution  having  been  come  to,  but  an 
lation  was  given  that  a  final  meeting  would  be  held  for  the  liquida- 
of  the  remaining  assets.  It  had  been  found  necessary  to  retain  the 
ve  fund,  which  was  the  great  bulk  of  the  assets  they  had  to  divide, 

the  assets  of  the  bank  were  taken  over  by  the  Imperial  Bank,  and 
could  not  be  done  until  after  certain  proceedings  and  formalities  had 
gone  through  at  Constantinople ;  and  this  had  occasioned  a  longer 
'  than  had  been  anticipated  in  completing  the  windiDg  up.  It  was 
intil  the  5th  of  January,  1864,  that  they  were  able  to  make  the  first 
ion  of  the  assets,  and  they  then  paid  £4  upon  the  ordinary  shares, 
\3.  upon  the  new  shares.  About  a  year  afterwards  a  distribution  was 
■  of  lOs.  upon  the  ordinary  shares,  and  Is.  upon  the  new  shares,  and 
it  was  proposed  to  make  the  final  distribution.    The  sum  with  which 

had  to  deal  was  a  very  large  one,  consisting  of  the  reserve  of 
,000,  the  profit  between  the  first  of  January,  1863,  and  the  10th  of 
i,  when  the  functions  of  the  old  bank  ceased,  and  certain  amounts  of 
ests  and  assets,  with  regard  to  which  at  one  time  it  seemed  probable 
legal  proceedings  would  be  required.  However,  the  residt 
now  that    they  had    for   division    £141,550,  which  would    enable 

to  make  a  division  of  15^.  uix)n  the  old  shares,  and  la.  Qd. 
tlie  new,  or  a  total  distribution  of  assets  equivalent  to 
w.  ui)on  each  of  the  old  shares.  (Hear,  hear.)  He  could  not 
hink  that  that  would  be  considered  as  not  an  inappropriate  termiua- 
to  a  career  of  great  success:  (Cheers).  The  bank  was  established  in 
uary,  1856 ;  it  was  dissolved  in  March,  1863,  and  during  seven  years 
B  existence,  the  mean  dividend  had  been  rather  more  than  10  per 
At  the  time  of  the  creation  of  the  new  bank  every  proprietor  of  the 
)ne  was  entitled  to  two  shares  of  the  Imperial  for  every  old  share  of 
Ottoman  Bank  and  one  share  of  the  Imperial  for  each  new  share  of 
Xtoman  Bank,  and  if  any  proprietor  had  then  sold  he  would  have 
sed  upon  his  £20  share  a  profit  of  150  per  cent.  The  shares  had 
n,  in  common  with  every  other  security,  but  even  at  the  present  price, 
I  original  shareholder  were  to  realise  his  profit  it  would  be  100  per 
.  upon  bis  shares,  plus  the  £5.  6s.,  which  was  equal  to  26^  per  cent, 
i  extraordinary  success .  was  due  to  some  little  good  management, 
d  to  great  good  fortime.  The  Ottoman  Bank  had  in  its  constitution 
3  of  the  greatest  elements  of  success,  but  something  was  no  doubt, 
due  to  the  harmonious  action  of  the  board,  to  their  vigilant  attention 
le  affairs  of  the  bank,  and  to  the  confidence  of  the  shareholders,  which 

enabled  the  directors  to  pursue  that  policy  which  had  proved  so  ad- 
tageouB.  The  present  division  exhausted  the  whole  of  the  assets  with 
exception  of  £400  which  would  be  given  to  those  who  had  taken  much 


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Imperial  Ottoman  Ban 


trouble  in  carrying  out  the  liquidation.     (Hea: 
matter  of  form,  the  adoption  of  the  report. 

Replying  to  a  question, 

The  Chairman  announced  that  the  dividend  w 
of  July,  but  as  the  Imperial  dividend  was  to 
there  might  be  some  little  delay. 

The  motion  was  carried,  and  a  very  cordial  vo 
the  chairman  and  directors. 

The  Chairman  acknowledged  the  vote,  and  in 
hearty  farewell  after  some  years  of  pleasant  i 
expressed   his  hope  that  in  other  undertaking? 
bark  they  would  not  meet  with  worse  fortune  ' 
tbe  Ottoman  Bank. 

The  meeting  then  separated. 


IMPERIAL  OTTOMAN  B. 

Thr  second  annual  general  meeting  of  propriei 
June  at  the  London  Tavern  ;  Sir  W.  Clay  in  th< 
The  following  report  was  read  by  the  Secret? 
mittee  have  the  honour  to  lay  before  the  shjureh 
report.  The  accounts,  made  up  to  the  3Ist  De 
profit  for  the  preceding  twelve  months,  after  pre 
ful  debts,  of  £336,992.  Under  ordinary  circ 
looked  upon  as  a  highly  satisfactory  result,  bu 
viewed  in  connexion  with  the  severe  commerc 
prevailed  throughout  Turkey ;  added  to  the  fall 
the  reaction  after  excessive  speculation.  In  the 
the  period  now  imder  review  a  considerable  po 
arose  from  the  issue  of  the  Turkish  Loan  of  li 
loan,  two  millions  sterling,  was  issued  in  1864, 
from  it  a  portion  of  its  present  profits.  It  is,  1 
to  be  able  to  state  that  to  the  extension  of  the  I 
and  not  to  any  exceptional,  sources  the  favoura' 
sheet  is  mainly  due.  The  profits  arising  from  ii 
mercial  business  have  increased  more  than  30  p 
year  of  the  bank's  existence.  There  is  no  reai 
the  business  should  not  continue  to  increase,  the 
in  the  selection  of  bUls  fulfilling  the  conditions 
bank,  and  especially  a  bank  of  issue.  The 
liberally  performed  its  duties  to  the  imperial  gov 
of  its  transactions  with  the  government  hav 
During  the  past  year  agencies  have  been  establis 
Lamaca  (Cj^rus),  Afioum-Kara-Hissar,  and  A 
bank  receives  revenues  on  account  of  the  govern 
to  Constantinople  on  terms  much  less  onerous 
government  was  formerly  obliged  to  submit.  Tt 
a  considerable  increase  of  business  at  these 
dc<hicting  from  the  net  profit  the  interest  paid  o: 
the  addition  to  the  reserve  fund,  and  the  per 
statutes,  there  remains  a  balance  of  £135,817  5a. 
pose  a  dividend  of  £1  per  share,  which,  togetl 
January  last,  makes  a  total  dividend  at  the  ra 


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Imperial  Ottoman  Bank.  8G3 

s    £817  5s.  8d.  to  be  carried   forward  to  the  next 

ihiUties  and  Assets,  Z\st  December,  1864. 

LIABILrriES. 


tlOLI 

ficcount  of  the  government 
accouut  of  sundries 

iding  £44,  11*.  8<i.  balance  from   last 


£2,700,000 

0 

0 

18,508 

0 

1 

6,7G0 

0 

0 

885.849 

10 

0 

503,199 

11 

0 

979,136 

2 

0 

408,150 

10 

0 

242.665 

4 

0 

£5,804,328  17     1 


.«. 

...    £1,350,000 

0 

0 

Lintinople 

237,752 

4 

0 

rnriches 

179,132 

12 

5 

ther  securities 

...       2,080,798 

5 

6 

accaant  of  the  p^overnment 

246,302 

8 

4 

uccnnnt  of  sundries 

...       1,178,403 

7 

0 

;eiiritie3  and  merchandise 

525,407 

16 

7 

Tuiturc 

6,472 

3 

3 

£5,804,328  17     1 


r  Account  from  \st  January  to  Zlst  December,  1864 


>T  share  made  on  the  1st  January,  1865, 
per  cent,  per  annum,  in  accordance  with 

,  transferred  to  the  reserve  fund 
lialmice  provided  by  the  Statutes  to  be 
((!  founders  of  the  bank 
IjiiUnce  appropriated  to  the  adrainis- 

rablc  on  l^t  July,  of  20*.  per  share  ... 
ml  forward     ... 


£242,665     4     0 
£242,065     4     0 


£67,500  0  0 

24,202  1  2 

7,542  18  7 

7,542  18  7 

135,000  0  0 

817  5  8 

£242,665  4  0 


moving  its  adoption,  said  the  report  wliich  was  laid 
lers  twelve  months  ago,  with  the  observations  ho 
11  submitting  it,  had  placed  them  in  possession  of  a 
lie  foundation  of  the  bank,  and  a  full  statement  of  its 
d  rights.  It  would  be  remembered  that  the  committee 
rferred  to  ventured  to  anticipate  for  the  institution  a 
Those  anticipations,  he  was  happy  to  say,  had  been 
aod  he  could  assure  them,  on  a  full  consideration  of 


864 


Imperial  Ottoman  Ba 


the  affairs  of  the  bank,  that  its  state  and  conditi 
and  its  progress  for  the  future,  were  in  aver) 
(Clieers.)  It  was  stated  in  the  report  that  the 
past  year  had  arisen  from  no  exceptional  sources 
tion  of  a  portion  of  the  commission  on  the  Turk 
rest  arose  from  the  profitable  disharge  of  their  1 
banking  functions.  He  had  some  tigurea  as  t< 
transacted  in  each  of  the  two  years  with  which 
showing  the  rate  of  increase.  The  mass  of  thei 
account,  the  London  and  Constantinople  estab] 
branches  at  Bucharest,  Beyrout,  Smyrna,  Sa 
amounted  in  the  year  ending  Deceipber,  1863, 
to  say,  for  nine  months  of  actual,  and,  to  enab 
parison,  three  months  of  assumed  operations ;  bul 
three  months  of  assumed  business  was  larger  ii 
tionate  i)eriod  of  actual  business,  and  that  thei 
impression  somewhat  more  favourable  for  1863 
year  ending  31st  December,  1864,  the  gross  amo 
was  £06,000,000,  and  he  submitted  that  it  was  ii 
a  small  compass  more  conclusive  evidence  of  t 
thao  this  comparison  of  results  of  the  two  yeai's 
this  statement,  too,  was  omitted  one  item,  im|x>i 
large  in  amount,  viz.,  the  consignment  busines 
increased  rather  more  than  50  per  cent.  Tliis  v 
their  business,  as  yielding  a  great  profit,  acoompr 
They  had  heard  from  the  report  of  the  increase  i; 
At  the  last  meeting  the  committee  stated  that 
that  the  bank  should  take  shares  in  and  other 
an  institution  of  great  power  and  importance  at 
Socicte  Gcne'rale  Ottoman.  He  was  happy  to 
with  which  they  entered  into  that  alliance  had  1 
That  society  had  been  eminently  prosperous ;  an 
and  in  doing  business  ■with  it,  the  bank  had  obt 
whicli  prospectively  formed  the  motive  for  enteri 
matter  only  had  not  answered  the  expectations  c 
issue  of  promissory  or  bank  notes,  payable  on  < 
reasons  for  their  disappointment  in  this  respect, 
time  to  accustom  the  public  to  a  note  circular 
growth  of  time,  and  in  Turkey  hitherto  the  coui 
such  as  to  inspire  confidence  in  paper  money,  a 
tlioroughly  assured  of  the  constant  convertibilit 
naturally  hesitate  to  take  them.  The  second  : 
mercial  business  of  Turkey  was  carried  on  genei 
denominations,  both  native  and  foreign,  and  the: 
currency  of  a  known  and  recognised  kind,  for  w 
be  se<jn  at  once  as  the  equivalent  and  substiti 
perhaps  be  got  over  if  they  had  the  co-operatioi 
he  hoped  that  ultimately  they  would  obtain  it, 
ment  must  be  aware  that  a  well-established  ai 
would  be  of  the  greatest  assistance  to  their  o^ 
operations.  Therefore  he  was  still  of  opinion  \ 
the  power  of  issuing  bank  notes  would  become 
Turkey  and  of  profit  to  the  Imperial  Ottoman 
thought  would  naturally  arise  from  the  figures  1 


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Imperial  Ottoman  Bank.  ^       865 

ition  he  had  given,  viz.,  that  with  the  growiug  prosperity  of  Turkey^ 
prosperity  of  the  bank  was  intimately  mixed  up.  They  had  a  deep 
m  abiding  interest  in  the  welfare  and  prosperity  of  Turkey.  (Cheera.) 
her  great  resources  should  bo  developed,  that  her  financial  system 
d  be  established  on  a  firm  basis,  and  that  her  credit  should  be  main- 
d  and  advanced  in  the  great  European  centres  of  commerce  and  wealth — 
ese  should  be  the  object  of  the  government  of  Turkey — but  they  should 
ise  be  the  object  of  the  bank.  (Cheers).  If  they  were  actuated  by  ur> 
ir  motive,  an  enlarged  and  enlightened  view  of  their  own  interestn 
1  prompt  them  to  lend  a  willing  assistance  to  that  government  in  thf 
iplishment  of  these  objects.  (Cheers).  It  would  never  be  worth 
while  to  obtain  a  transitory  or  temporary  profit  or  advantage  by  any 
eding  not  only  that  should  damage  but  that  should  not  promote  the 
ist  of  the  Turkish  empire.  And  the  proprietors  might  rest  assure<l 
as  these  were  the  principles  by  which  the  committee  had  hitherto 
[^ded,  so  they  would  continue  to  be  the  principles  by  which  they 
I  continue  hereafter  to  be  actuated ;  and  in  addition  to  dL^'chargii)^'^ 
mctions  confided  to  them  by  the  imperial  concession  whicli  maile 
s  the  Bank  of  Turkey,  they  would  always  be  ready,  when  it  shoiiUt 
>  the  Turkish  government  to  ask  their  counsel  and  assistance,  to  give 
ial  and  ready  assent  to  any  such  invitation,  and  to  join  with  them  in 
icompliahment  of  those  objects  of  national  interest  to  which  he  had 
bed.  (Cheers.)  There  was  one  other  matter.  The  proprietors 
.  see  by  the  figures  the  vast  increase  which  had  taken  place,  and  -was 
I  place,  in  the  legitimate  and  profitable  operations  of  the  institution, 
le  committee  thought  it  very  likely  that  it  might  lead  to  the  necen- 
l  a  further  issue  of  capital.  He  was  not  prepared  to  say  at  present 
at  mode  it  might  be  thought  best  to  raise  such  additional  capital, 
hen  it  was  resolved  upon  the  shareholders  would  be  called  together 
[)ecial  meeting  to  consider  the  subject.  The  authority  of  the  Turkisli 
ament  they  had  already,  and  it  would  of  course  depend  upon  them- 
what  resolutions  should  be  adopted.  Although  ho  could  not  state 
rms  on  which  it  might  be  proposed  to  raise  the  new  capital,  the  com- 
)  desired  to  follow  the  example  of  the  old  Ottoman  Bank  in  raising 
n  such  terms  as  would  be  acceptable  to  the  i^roprietors.  In  couclu- 
le  moved  that  the  report  and  accounts  now  read  be  received  aiid 
}d,  and  that  the  dividend  for  the  year  ending  31st  December,  1864, 
^d  at  30«.  per  share,  and  that  that  dividend,  less  the  10s.  paid  on  ao 
in  January  last,  be  paid  on  and  after  the  1st  July  next. 
Rate  seconded  the  resolution. 

hareholder  inquired  whether  the  sum  stated  as  profits  represented 
profits,  from  which  the  expenses  of  management  had  to  be  de- 
li 

1  Chairman — The  profits  are  gross,  from  which  the  whole  of  the  ex- 
i  of  the  London  establislmient  and  of  our  ten  branches  have  to  be 
ted. 

!  shareholder  a^kcd  what  amount  had  been  realised  in  the  shape  of 
isj^ion  on  the  Turkish  luau  ]  Supposing  it  to  have  been  as  larse  an 
13,  their  ordinary  profits  liid  not  show  such  progress  as  might  hava 
looked  for. 

t  Chwrman  replied  that  in  1863  the  profit  obtained  from  the  loan 
ery  large,  whereas  in  1864  it  was  very  small.  The  profit  shown  in 
resent  accounts,  therefore,  arose  for  the  most  part  from  ordinary 
ag  opecations^  and  not,  i\s  in  1863,  mainly  from  the  oommission  upon 
VOL,  XXV,  68 


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the  loan.    It  wotild  not  be  judicious  to  state  tl 
tive  sources  of  profit. 

Another  Sharehohier  inquired  why  it  was  t 
was  is.sucd  through  the  agency  of  the  Greneral 
that  of  the  Imperial  Ottoman  Bank  ? 

The  Chairman  had  almost  rather  the  questi< 
he  would  answer  it  as  unreservedly  as  he  coti 
in  the  first  place,  that  a  large  financial  operatic 
the  government  of  Turkey  in  whicli  the  banks  i 
in  April  they  were  informed  that  a  commiss 
government  was  in  Paris  to  make  the  arrangei 
tended  to  ofi'ertho  bank  the  opportunity  of  part 
Accordingly,  a  delegation  from  the  board  went 
niissioner.  The  ofi'er  was  then  formally  made 
the  operations  on  certain  terms  and  conditions, 
once  to  say  "aye"  or  "no."  This  state  of 
from  much  difficulty ;  for  they  could  have  no  c 
.stances,  in  refusing  to  take  part  in  an  opor 
of  which  they  had  not  been  consulted,  and  cc 
desirable  for  them  to  engage  in  it,  and  doubti 
would  conduce  to  the  interests  of  the  bank,  or  i 
the  subject,  it  would  promote  the  financial 
empire,  they  did  not  hesitate  to  decline  the  ofie 

A  Shareholder  remarking  ujwn  the  fall  in  t 
per  cent,  since  last  year,  inquired  whether  it  w 
the  rumours  that  had  prevailed  of  heavy  losse 
management,  and  whether  there  was  any  found 
The  Chairman  knew  nothing  of  any  losses ; 
leagues  and  himself  gave  the  most  unqualified 
ment.  (Cheers.)  With  regard  to  the  fall  in 
kinds  liad  fallen  since  la.st  year,  but  he  believe 
a  rise  in  the  Imperial  Ottoman  Bank  shares. 

The  motion  was  then  put  and  carried  unanin 
of  thanks  to  the  chairman  and  his  colleagues  cc 


EUROPEAN  ASSURANCE 


The  annual  general  meeting  of  the  shareholder 

•  June  1st,  at  St.  James's  H^,  Mr.  Wickham,  ]W 
Cleland,  secretary,  read  the  report.  It  stated  t 
new  life   and  guarantee  policies  issued  durii 

'  i!23,149.  16s.  (j(L    In  accordance  with  the  reo 

holders  at  the  last  annual  general  meeting,  the 

business  of  fire  insurance  in  June  last.     The 

!  ilepartment  amounted  to  £13,259. 17s,  lid.    T 

I  received  in  premiums  during  the  year  was  £ 

•  and  gfuarantee  claims  paid  during  the  year,  i 
I  amounted  to  £80,717.  4s.  lOd.  The  increase  in 
j                        during  the  year  had  been  £52,925.  18s.  lOd. 

I  and  the  British  Nation  Life  Assurance  Associati 

and  recommendation  of  Mr.  Finlaison,  the  Grove 

I  pleted.     The  results  of  the  union  the  directors 


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jiikmtia  and  Great  Westeim  Railway, 


86r 


» ahareholdfiis  with  great  satisfaction.  The  Bubscribed  ci^tal  is  raiflecl 
upwards  of  £700,000,  the  number  of  shareholders  to  more  than  1,200, 
>  annual  income  to  upwards  of  £300,000,  while  the  new  premium  income 
the  united  companies  for  the  year  1864,  amounts  to  £46,507.  The 
>gress  of  the  societies  since  the  union  had  been  highly  satisfactory.  The 
smiuna  income  derived  from  new  business  during  the  last  two  montlis  was 
bhe  rate  of  more  than  £60,000  a  year,  an  amount  considerably  in  excess 
that  efifeeted  by  the  two  societies  in  their  separate  condition,  and  tht- 
ectors  folly  anticipated  that  this  rate  woi4d  be  still  further  increased 
the  various  agencies  were  brought  into  a  greater  degree  of  efficiency. 
[]he  Chairman,  in  moving  the  adoption  of  the  report,  referred  to  tlitj 
iouB  operations  of  the  society  during  the  past  year,  and  congratulated 
shar^olders  on  the  results  that  had  accrued.  At  the  previous  meet- 
he  had  the  pleasure  of  congratulating  them  on  the  position  in  which 
society  then  stood,  but  he  now  felt  more  strongly  justified  in  con- 
tulating  them,  for  he  never  met  the  proprietors  under  such  advantageoas 
mmstanoes  as  at  the  present  time.  "With  respect  to  the  amalgamation 
this  company  with  the  British  Nation  Life  Assurance  Association  art  J 
Mercantile  Union  Fire  Company  mentioned  in  the  report,  he  believed 
t  that  amalgamation  would  be  of  great  benefit,  and  he  congratulates  I 
s  company  on  having  obtained  so  much  increased  and  good  business, 
eir  premium  now  amounted  to  £1,000  a  day,  and  their  new  business  iv 
,000  a  week.  This  was  quite  enough  to  show  tho  prosperous  condition 
he  society.  Mr.  J.  E.  M*Connel  seconded  the  motion,  and  it  was  agreed 
unanimously.  Dr.  Watts  moved  a  vote  of  thanks  to  the  chairman 
I  board  of  directors  for  their  attention  to  the  interests  of  the  p>ociety, 
\  for  the  highly  satisfactory  report  of  its  condition  and  prospects 
ich  had  been  presented.  The  motion  was  most  cordially  agreed  to, 
I  the  chairman  returned  thanks.  The  retiring  directors  were  unani- 
usly  re-elected ;  Mr.  J.  Parker  was  elected  auditor. 


ATLANTIC  AND  GREAT  WESTERN  RAILWAY. 

£  accompanying  letter  and  report  received  from  Mr.  Moseley,  who  ha£ 
ently  visited  the  United  States  and  minutely  inspected  the  Atlantic 
1  Great  Western  Railroad,  will,  we  think,  prove  interesting  to  holders 
this  oompany's  seciuities,  showing  as  it  does  of  the  great  variety  of  tho 
^roes  from  which  traffic  will  be  derived,  and  the  vast  amount  whicli 
St  immediaitely  accrue  and  will  ultimately  swell  into  an  aggregate 
lal  to,  if  noft  greater  than,  that  of  any  railroad  of  similar  lengthin  any 
■t  of  the  world  • — 

«  New  York,  May  29th,  1865. 
^  Idw.  3.  Satterthwaite,  Esq.,  London. 

'Bv4B  SzB, — In  accordance  with  your  instructions,  I  have  made  a 
'efol  exaznination  of  the  Atlantic  and  Great  Western  Railway,  and  also 
^e  lines  connectmg  with  it  at  Dayton,  and  on  to  St.  Louis. 
^  The  main  line  commences  at  Salamanca,  on  the  Erie  Railway,  414 
Im  from  New  York,  in  the  State  of  New  York,  and  passes  through  the 
Ltes  of  Pennsylvania  and  Ohio,  terminating  at  Dayton,  a  total  distanct: 
the  38e  miles.  > 


Digitized 


|Coog 


le 


S63 


Atlantic  and  Great  Weitern 


^  Tbe  broad  gt^Qge  lines  in  direct  oonunmiicat 
Gre^  Western  axe  : 

The  Y^^  Rail  war,  ^-rw  York  to  Salamanca 
The  Cincinnati  Hamilton  an«l  Dayton  Kailw 

The  Ohio  and  3li<sLS;?ippi  Railway 

*  The  mlr^ad  cn^siiini^  and  connection  of  the 


A?  Salamanca 
Corry 


31eadville    . 

Cleveland 

GpeenTilie 
Ravenna  .«• 

Akr»n 


rith  Erie  Railway  ^. 

»  CKl  Creek  Railway 

"   (  P  tiilat  leipiiia  and  £  rie  I 

I  Franklin  and  Oil  City  1 

"  \     G.W.  Ry 

„  Cleveland  ami  Toled»3 1 
„  Erie  and  Pittsburgh  Ra 
„     Clereland   and  Pitisbi 

r  Cleveland  Zanesville  a 
"  \      Railnxul , 

iPittsbunrh  Fort  Wayn« 
Railnxid 
Saiidiisky     ^Mansfield 
Railroad 

r  Cleveland  Columbus  a 

n  „-<      Railnxul 

(  Belletoniaine  Railway 
i  Great  Central  Railway 
J,  -  Sandusky    Dayton    au 

(     R;iilrokd 

Springdeld  lui-.l  Colimib 
Spriuij'tield    Mt.    Vem( 

„  bur^h  Riiilroad  

Siui dusky    Dayton    ai 

Railroad , 

i  I>a>-ion  and  Michigan  1^ 

„  <  In«Uaua   Central    and 

\     Western  Railroad  .^, 

iOhio  and  31issiij5ippi  R; 
Indianapolis  and  Cinoij 
Kentucky  Central  Rail 
Louisville  and  New  Orl 

"  It  atforvL9  me  mnch  pleasure  to  be  able  to  rep 
Great  Western  Une  is  in  most  excellent  order,  the 

^i    . ^_- -^ .-u-k  .,_:i t  . x-i X    -•^  Q 


MansStld    

Galion  and  MarU 
Urbana    ••• 

SpriD^deld 


Davton 


Cincinnati  , 


'  o.'i:aui''!K 


1  lit^^l    2"  III  IKS  Lirr  llrJW  OLJIJ 


raiU  laktii  uj*  will  Iv  usol  for  adilitioual  sitli 
uuix^nani  faints  on  tLe  line,  and  which >  when 
a  Knit  ir»  imlf5  in  leiiijtU. 

"  It  is  also  uji«4t  satisfactory  to  be  able  to  eonfiri 
lu  Marth  L%'=t,  that  during  thy  KT*?^t  flooiLs  the  ] 
the  ainoiuit  of  damage  done  to  the  permanent  w 
tritliiii;,  anvl  that  ail  reftairs  were  executed  with 
silAff  of  "  track  layers/'  The  statjoos  on  the  lij 
mon?  or  less  of  a  tem|x»rarj*  cliaracter,  with  the  e 
htNui  miiuters  of  the  Company,  a  verj'  fine  built 
for  thtj  raiioiis  departments^  refreahineut-roomf 


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Attantic  and  Great  Western  Railway, 


869 


at  class  hotel  (admirably  managed),  but  ntill  far  too  small  to  accommo- 
te  the  greatly  iocreasing  buBiness.  In  due  time  great  alterations  ani] 
ditions  will  be  made  to  all  the  stations,  but  at  present  they  are  weli 
apted  to  the  traffic,  and  it  is  policy  to  thoroughly  develope  the  trafiii- 
fore  expending  large  sums  upon  improyements,  that  in  the  course  of  h 
ur  or  two  are  sure  to  prove  inadequate.  There  are  in  course  of  cou- 
uction  at  Meadville  large  workshops  and  engine-sheds,  which,  with  tLe 
uses  belonging  to  the  Company  and  rented  by  employ^,  cover  an  area 
about  60  acras.  At  the  Kent  station  there  are  also  large  works  bciuL^^ 
^cted,  consisting  of  car  and  smiths'  shops,  and  engine-sheds,  all  beiui; 
lit  in  a  most  substantial  manner. 

'  All  the  heavy  works  now  in  hand  are  being  pushed  on  with  vigour, 
re  especially  the  engine-sheds  which  will  be  completed  before  the 
Qing  winter. 

*  The  rolling  stock  consists  of —  * 

91  Locomotives  on  line. 
35         Ditto       building. 
51  Passenger  cars  (to  carry  60  persons) . 
40      Ditto      building. 
16  Baggage  and  Mail  cars. 
2,566  Freight  cars. 

^  It  is  all  in  splendid  order,  the  engines  being  of  a  particularly  fijit? 
icription. 

*  From  Dayton  to  Cincinnati  the  line  belongs  to  the  Cincinnati,  Ham il- 
L,  and  Dayton  Railway  Company.  This  Company  expended  $1,500,004)  in 
ing  a  broad  guage  '^straddle"  track  (rails  on  either  side  of  narrow 
3ige  rails),  and  building  passenger  stations  aod  freight  houses  to  accoiu- 
date  the  Atlantic  and  Great  Western  traffic.  The  passenger  station  ut 
icinnati  is  one  of  the  best  and  most  convenient  in  the  States,  containing 
angements  for  the  comfort  of  passengers  not  usually  to  be  met  with  tm 
lerican  lines.  A  fine  suite  of  offices  are  nearly  completed  for  the  use  u^ 
J  Atlantic  and  Great  Western  Company.  The  freight  houses  adjoin  tlu- 
tion  and  are  rented  by  firms  who  take  the  freights  from  the  Kail  way 
mpany,  charging  for  storage,  and  assimiing  all  the  responsibility  of 
livery ;  an  excellent  arrangement  that  relieves  the  Company  of  a  viist 
loimt  of  risk.  The  line  from  Dayton  to  Cincinnati  is  in  perfect  order, 
irell  ballasted  and  maintained,  the  stations  are  good,  and  there  is  ever}' 
iility  for  conductiug  a  very  large  traffic  with  regidarity.  The  junctian 
th  the  Ohio  and  the  Mississippi  Bailway  is  about  half  a  mile  from  tht^ 
in  station.  Arrangements  are  contemplated  by  which  the  two  lines  will 
ite  at  the  main  station.  The  line  to  St.  Louis,  considering  the  severt^ 
Qter  and  the  flbods,  is  in  very  good  condition.  The  track  is  being  carc- 
ly  repaired,  and  a  large  amount  of  iron  is  being  re-rolled  and  re-laitl. 
is  the  intention  of  the  Dir3ctors  to  reroll  nearly  all  the  metal  now 
wcL.    The  line  is  broad  gauge  throughout. 

'*  The  Franklin  Branch  has  been  extended  from  Franklin  to  Oil  City,  S^ 

very  imjKji-tatit  addition  to  the  line.    From  Meadville  to  Franklin 

!  >  originally  laii  i  are  very  light,  but  from  the  fact  of  the  joints  being 

liey  Envw  woni  most  surprisingly  well,  and  would  last  for  years  to 

[iie.    However,  it  i«  intended  to  replace  them  with  the  same  description 

rail  used  on  the  main  line.    The  light  raib  will  be  kept  in  stock  in  all 

iibabiiity  for  sidings.     The  track  is  well  maintained,  and  the  enormous 

^c  over  this  branch  is  admirably  manage^ 


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870 


Atlantic  and  Great  Western 


"  T\\e  Cleveland  Extension  runs  over  the  Mah 
the  Atlantic  ami  Great  Western  Company  for  99 
track ;  the  narrow  gauge  cars  and  engines  belong 
are  therefore  useil  in  common  vrith  the  broad  gai 
gauges  being  run  with  the  greatest  safety.  The 
and  the  traffic  oVer  it  immense. 

"  The  works  of  the  Buffalo  Extension  and  Ne\^ 
be  energetically  carried  on.  Those  on  the  Ei 
nearly  complete. 

"  Having  thoroughly  satisfied  myself  that  the 
in  proper  order,  I  have  devoted  considerable  tim< 
the  traffic  prospects  for  the  future.  I  append  a 
villages  within  a  radius  of  about  20  miles  from  1 
it  will  be  seeu^hat  the  railway  passes  through  i 
tricts.  In  fact,  from  Saegar  Town,  (97  mile^^  fi 
country  is  as  highly  cidtivated  as  any  part  of  th 

"  I  am  prepared  for  somewhat  lower  traffic 
months  of  this  year,  and  believe  that  they  will  h 
X)eriod,  for  the  following  reason  :  The  heavy  di 
kets  (consequent  upon  the  largo  fall  in  gold)  in 
ducts,  such  as  tobacco,  grain,  hemp,  and  hogs,  ] 
ments  to  the  seaboard,  hoMers  generally  hoping 
and,  as  a  rule,  being  imwilling  to  face  a  suddei 
in  the  west,  and  sooner  or  later  must  come  easi 
harvest  there  will  be  an  immense  pressmre  of  fr 
be  enabled  to  a<.lvance  their  rates. 

"  The  connections  with  the  various  cross-roa 
and  when  arrangements  are  completed  for  ac 
houses,  (fee,  will  open  up  to  the  Atlantic  and  Gn 
ns  Cony,  Clarkesville,  Mansfield,  and  Galion,  ft 
any  now  in  existence,  and  in  addition  a  class  of 
sought  after — I  mean  the  stock  traffic.  Dull  as 
tlie  present  time,  a  neighbouring  line  for  install 
50  cars  per  diem.  This,  at  30  dols.  (a  minimuu] 
numbers  1,200  dols. 

"  I  anticipate  that  the  Atlantic  and  Great  Wes 
same  traffic  in  dull  times  from  Cleveland  to  Sa 
stock,  however,  to  be  conveyed  from  Cleveland  t" 
wliich  will  be  forthcoming  from  Mansfield,  Gali 
The  States  of  Kentucky,  Southern  Illinois,  and 
stock -producing  States,  and  the  Atlantic  and 
these  points  (aiTived  at  by  the  Ohio  and  Mississip 
and  Dayton,  and  Cincinnati  and  Indianoix>lis, 
stock  producers  an  unbroken  broad-gauge  line  tc 
calculation  to  estimate  the  stock  traffic  over  the 
the  road  at  from  50  to  100  cai*s  per  diem.  Takii 
average  of  50  dols.  to  75  dols.  per  car,  and  the  h 
dols.,  which,  added  to  the  Cleveland  estimate  of 
of  3,700  dols.  per  diem,  or  22,200  dols.  per  wei 
traffic  alone. 

"  A  great  source  of  traffic  at  present  is,  and  will  I 
the  oil  from  the  Pennsylvania  wells.  Notv^-ithsta 
for  t]iv  LisE.  [h  r  oi;  veari^*  tlie  supply  shows  no  sign  oJ 
ne-iuencc  fresh  adventurers  are  daily  arriving  anc 


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iilantic  and  Great  Western  Railicay,  871 

I  oil."  The  large  number  of  companies  formed  of  late,  has 
lie  of  land  to  an  enormous  extent,  and  materially  added  to 
i  Franklin  Branch.  It  is  estimated  that  neai-ly  2,000 
e  started  this  season ;  the  pumping  engines  for  those  neiv 

scattered  in  all  directions, — 200  were  on  the  Franklin 
iine  last  week.  The  extension  of  the  line  to  Oil  City  will 
)  an  immense  amount  of  oil  traffic,  that  last  year  Avas 
by  other  routes.  A  large  plot  of  land  has  been  presented 
n  the  neighbourhood  of  Oil  City,  on  the  river  bank,  upon 
•ves  and  slieds  will  bo  built  exclusively  for  Petroleum 
^ill  be  sent  direct  from  the  wells  on  the  creek  to  these 
\  saving  of  some  seven  miles  of  road  hauling  will  be 
to  suppose  that  a  largo  amount  of  traffic  that  has  hitherto 
1  be  cUverted  to  the  ridl.  The  number  of  barrels  trans- 
Eintic  and  Great  Western  lino  last  year  amounted  to  the 

of  675,028. 

ourse  of  a  very  short  time,  will  form  one  of  the  largest 
rhe  facilities  for  shipment  at  Cleveland  are  so  great  (the 
been  3,000  and  4,000  feet  of  river  frontage)  for  the  West 
railways,  that  it  is  impossible  to  estimate  v/hat  tlie  value 

be.  At  present  it  is  oidy  beginning  to  bo  develoj)ed.  In 
estern  shipments,  there  will  be  an  enormous  demand  for 
3uflalo  Extension,  and  Erie  and  Niagara  line.  Cheap 
Dg  a  large  number  of  manufactories  to  the  towns  in  the 

the  coal  fields.  It  is  a  satisfactory  feature  that  the 
>m  Youngstown  (the  southern  terminus  of  the  Mahoning 
B  ox  the  coal  district)  to  Cleveland,  return  with  iron  ore 
or.  The  "Mahoning  Works,"  at  Youngstown,  consume 
:  240  tons  of  coal,  and  turn  out  in  bars,  sheets,  and 

iron  per  day.  The  freight  business  of  these  worlis  in 
d,  and  manufactured  iron  to  different  parts,  is  worth 
annum.      Two  other  firms  liero  contribute  75,000  dols.  ' 

Old  others  from  50,000  dols.  to  G0,000  dols. 

the  sources  of  revenue  alluded  to,  there  is  a  very  large 
freight  traffic  at  present  derived  from  dairy  produce, 
a  higher  rate  for  transport  than  any  other  description  of 

being  fully  open  to  Cincinnati  and  St.  Louis  for  through 

lo    doubt    that    the    most    sanguino  ex|>ectation3    will  * 

At  present,  owing  to  the  want  of  rolling  stock, 
have  not  been  caiiviussed  for.  One  througii  train 
to  nm  on  the  8th  instant,  another  will  be  placed 
:he  middle  of  June,  and  a  tliird  by  the  middle  of 
ing  of   the  through  line  for  piussongers  will,  however,  ' 

tjsement  for  freights,  and  as  new  cars  are  added  to  the  ■ 

y,  energetic  measures  will  be  taken  to  secure  a  class  of  f 

»t  competed  for,  viz.,  general  merchandise  bound  west.  ' 

go  amount  of  goods  traffic  to  be  obtained  from  the  Cleve-  ; 

,ud  Michigan  lines  running  from  Micliigan  to  Chicago.  ! 

ill  be  in  a  position  to  give  more  than  double  the  auiount  \- 

iveyanco  east  compared  with  the  total  now  carried  for 
antic  and  Great  Western.     The  relations  between  these  \\ 

mtic  and  Great  Western  are  of  a  very  friendly  nature,  i 

vident  anxiety  on  the  part  of  the  managers  to  assist  in  j 


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872  Atlantic  and  Great  Westen 

developing  the  Atlantic  traffic.  It  is  also  gn 
that  both  at  Cincinnati  and  St.  Louis,  all  the 
the  pleasure  of  meeting  spoke  in  the  most  e 
traffic  prospects,  and  expressed  themselves  higl 
early  opening  of  the  through  route.  Apart,  h 
of  through  traffic,  I  am  convinced  that  the  Iocs 
the  present  time  has  been  the  great  source  of  < 
ment  and  development  will  yield  a  revenue  m 
the  requirements  of  the  bondliolders.  No  i 
United  tState^^  passes  through  more  highly  culti 
tricts,  which  from  the  very  lirst  have  thrown  an 
upon  the  line. 

"  When  it  is  considered  that  this  great  railway 
five  years  ago,  during  a  period  of  civil  war,  w] 
wages  higher,  than  ever  remembered ;  I  think  i 
may  fairly  congratulate  themselves  upon  the 
X>reseut  time.  To  the  amazing  energy  of  Mr. 
Chief,  in  the  face  of  every  possible  oppositiou 
due. 

"Under  the  active  presidency  of  Mr.  L'Ho 
ment  of  Mr.  McLaren,  the  General  Superintenc 
vast  improvements  in  the  conduct  of  the  tral 
Indeed,  already  important  sa\'ings  have  been  c 
penses  of  the  road.  Both  these  gentlemen  spe; 
success  of  the  imdertakiug,  and  of  the  large  i: 
miLst  follow  upon  the  perfect  equipment  of  the  J 

"  The  following  are  the  stations  on  the  Atlan 
with  the  towns  and  villages  alluded  to. 

•*  I  am,  dej 
«  Y< 


The  number  of  miles,  after  the  name  of  the  e 
;  of  eacli  place  from  Salamanca,  which  is  the  com 

way  and  transfer  station,  situated  in  Cattara 
J  population  of  the  county  is  43,735. 

',  Steamburgh  (12  miles).     A  small  place ;  lum 

ness  derived  from  this  station. 
I  Kandolph  (18  miles),  population  1,500;    Ri 

station,  ix)pidation  500.     • 
^  Kennedy  (25  miles),  population  1,200;  Ellin^ 

population  1,200. 

Jamestown  (34  miles),  population  5,000 ;  imp( 

and  shipping  point.     Towns  tributary  thereto 

400;    Frewsbury,  600 ;    Ellery,  400;    Fentonvi 

Russelburg,  600 ;  Sugar  Grove,  1,000;  Geary,  5 
j  Stockton,  700 ;   Maysville,  1,500.     These  townj 

I'  station  in  Chautauqua  County,  the  population  o 

passes  through  south  part  of  county;    Lake  Sh 
i  miles.     There  is  a  pleasant  route  to  the  Lake  S! 

«  miles  east  of  Buffalo,  via  steamboat  on  the  Chau 

I'  aiid  thence  by  coach,  7  miles  to  the  railway ;  this 

in  the  summer  months, 
i  Ashville  (41  miles),  population  1,000. 


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Atkmtio  and  Oreat  Western  RailuHiy 


873 


*anam&  (48  miles).    Town  of  same  name  diHtant  2  miles ;  populatioti 

K). 

olmnbns  (67  miles),  population  800 ;  in  Warren  County,  Pensylvaniaj 

Illation  of  which  is  19,190. 

orry  (61  miles).    This  town  is  five  years  old,  population  4,000.    OrosA- 

of  the  Philadelphia  and  Erie  KaiLroad,  and  Junction  with  the  Oil 

;k  KaUroad,  an  important  point  for  forwarding  oil,  and  receiving 

chandise  and  machinery  for  the  oil  regions.    Here  are  the  Downer  Oil 

nery  Works,  containing  iron  tanks  which  hold  10,000  barrels  of  oil. 

860  the  site  of  Corry  was  a  forest,  not  a  house  to  be  seen. 

uncord  (66  miles).    A  small  village. 

ill  Village  (79  miles).    Only  a  station,  no  village  of  any  consequence, 

erford,  4  miles,  i)opulation  4,000.    Philadelphia  and  Erie  Kailroad 

i  directly  alongside  Atlantic  and  Great  Western  Eoad  from  this  station 

orry. 

illers  (85  miles).    Small  places. 

imbric^e  (88  miles),  population  2,000.    Edenboro,  6  miles,  popula- 

600.  - 

eger  Town  (97  miles),  population  500.    From  this  station,  west,  a 

ked  change  is  visible  in  the  counbry ;  up  to  this  point  there  is  much 

it  land,  and  the  resources  of  the  country  are  undeveloped.      Still, 

h  has  been  done  during  the  last  years,  and  a  daily  improvement  may 

cpected. 

eadville  (103  miles),  population  8,000;  important  commercial  and 

ufacturing  town.    General  offices  of  the  railway  are  at  this  place,  and 

rge  and  admirably  managed  hotel,  the  "  Mc  Henry  House,"  where 

angers  dine,  ko.^ — indeed,  if  it  were  twice  the  size,  it  would  always 

Eight  distinct  table  d'hote  dinners  are  served  here  for  the  conve- 
ne of  persons  living  in  the  house,  and  passengers  arriving  by  the  trains, 
company's  workshops  are  in  a  forward  state,  and  w2l  be  of  great 
ice  when  completed.  Tributary  towns — Kiceville,  18  miles,  population 
) ;  Cooley,  12  miles,  population  500 ;  Conneout  Lake,  7  miles,  popii- 

600 ;  Oochranton,  Utica,  Evansbridge,  Sugar  Creek,  small  villages 
'ranklin  Branch,  which  joins  the  main  line  at  Meadville,  in  Crawford 
ity,  the  population  of  which  is  48,755. 

anklin  (131  miles^,  on  the  branch  from  Meadville,  population  5,000 ; 
b  point  for  the  smpment  of  oil.  This  station  is  at  the  junction  of 
eh  Creek  and  Allegheny  Biver. 

1  City  (8^  miles  from  Franklin)  furnishes  a  great  amoimt  of  traffic 
isscngers  and  freight  to  the  roaa,  population  10,000 ;  situated  at  the 
tiou  of  Oil  Creek  with  the  Allegheny  River.  In  the  spring  and  fall,  when 
^ater  is  high,  but  before  the  opening  of  the  line  to  Oil  City,  most  of 
>il  went  down  the  Allegheny  te  Pittsburgh,  and  thence  east.  In  the 
ner  when  the  water  is  low,  and  all  tlurough  the  winter,  all  the  oil 
»  over  the  Franklin  branch. 

itton  (110  miles.)    No  village,  but  a  good  lumbering  point, 
rausburg  (115  miles.)    Town  of  same  name  is  4  miles  from  station^ 
ilation  800.     Hackfftown,  5  miles,   population,  500;    Georgetown^ 
ule«,  population  700. 
lamsTille  (121  miles).     Population  500. 
igar  Qrove  (124  miles).    Small  station, 
reenville  (129  miles).    Population  4,000. 
uiles,  population  2,000;    Kew  Hamburg, 


Tributary  towns— Miner, 
7  miles,  population  600; 


5ware  Grove,  9  miles,  population  100 ;  Centreville,  28  miles,  population 


DigitizedJ 


i^GoogK 


874  Atlantic  and  Great  JTiiier 

200;    Balm,  25  miles,  population   100;    Xe 
[jopulation  100  each  ;  Sliackleyrille,  10  mile?, 

CrossiDc:  on  Erie  and  Pittsburgh  Kailroa^i, : 

Clarksville  (1^36  miles.)  Populati^'n  VA)0, 
runs  parallel  with  Atlantic  and  Great  Wcneri 
towns — Newcatfctle,  17  miles,  population,  3,5'.N> 
tion,  800;  West  Mid^Ucsex,  2U  miles,  populati 
p^jpuiation  1,500;  Jamestown,  10  niiifc:*,  pop 
population  300 ;  Lindenviile,  pox>nlation  2<>0 ; 
ConueautviUe,  population  1.5'X) ;  Linesville,  \* 

Crawfords  (luO  miles.)     Large  coal  fields  at 

Orangeville,  Ohio  (141  miles).  Population 
Sharon,  7  miles,  population  5,000;  Hartford,  4 
Kinsman,  4^  miles  ;  MaysvUle,  6  miles  ;  Shar 

The  above-mentioned  to^vns  Lave  a  jjo^mI 
each. 

Burghill  (145  miles).  Tributary  to  this  st 
stations,  under  head  of  Orangeville. 

LarLje  dairy  farms  are  along  the  line  of  the 
and  Akron,  and  consequent] y  large  shipment? 
made  from  these  point?.  The  amount  varies 
annum  from  each  station. 

JoliiiBon's  Summit  (149  miles).  Fowlcr,  5  i 
tion  700. 

The  remarks  appended  to  Burghill  station  a 
as  well. 

BaconsbuTg  (154  miles).  Population  500; 
1,0CK3 ;  John««on'8,  C  miles,  population  500 ;  < 
tion  500 ;  William sfi eld,  20  miles,  population  '. 

This  is  called  the  Mecca  oil  region  ;  and  pre 
rate  quantities. 

Warren  (J  G2  miles).  Population  4,000 ;  en 
power,  f urnishetl  by  the  Mahoning  Kiver,  whic 
power  in  mills,  <fec,,  &c.  Tributary  towns — Gii 
COO ;  Bristol,  9  miles,  population,  500 ;  Fam 
000;  South iijgton,  10  miles,  population  500; 
I)opulation,  800. 

Above  towns  are  in  Trumbull  County,  Olii 
30,813. 

Lcavittsburgh  (164  miles).    Crossing  of  Cle 

«  here,  but  is  an  important  transfer  point,  b<ith  : 

and  west.     Towns  on  this  brancli  between  Lcav 

Braceville,  Windham,  Garretsville,  Mantua,  A\ 

The  above-named  towns  are  the  centres  of 
largo  shipments  of  butter  and  cheese  go  from  t 
west. 

Cleveland  (214 J  miles).     Terminus  of  the 
,•  Atlantic  and  Great  Western  Railway  ;  Populat 

J  well  lairl  out  to^vn,  and  large    manufacturing 

'*  hero,  encouraged  by  the  unequalled  railway  fj 

(I  The  following  roads  centre  at  this  pc/int : — C 

V  Sliore  Line  :  Cleveland,  Columbus  and  Cincin: 

Great  Western  Railways,  and   the   Cleveland 
•  Largo  quantities  of  iron  ore  pass  through  on  it 


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lantic  and  Great  Western  Hailicay. 


875 


Lffording  a  lucrative  business  to  the  Atlantic  and  Great 

CJompany. 

n  increasing  town  of  4,000  inhabitants,  at  the  southern 

ng  Branch,  and  in  the  centre  of  the  cold  fields  of  Oliio. 

n  works  supplied  via  the  Cleveland  Branch,  with  ore 

r. 

rery  rich  in  coal,  and  the  traffic  derived  from  it  from 

d,  and  elsewhere,  cannot  but  prove  a  lasting  source  of 

ipany. 

,  however,  in  consequence  of  a  strike  amongst  the  coal 

ia.s  suifered  much.     The  miners  belong  to  a  trade's  union, 

t  for  higher  wages,  but  being  now  baoly  off  for  money. 

Time  work  in  two  or  three  weeks. 

to  Youngstown  are— Sharon,  Pa,  which  has  also  an 
and  canal  to  Erie ;  Kew  Castle,  Lowell,  and  Mahoning 
manufacturing  towns,  the  business  of  which  is  largely 

coal  banks  underlie  nearly  all  this  region,  to  which 
is  transported  for  smelting. 

niles).  Situated  between  the  main  line  and  Cleveland 
I  1,500.  Tributary  towns— Sclliugton,  5  miles,  popula- 
ton,  10  miles,  pojmlation  1,000  ;  Measopotamia,  15  miles 
ewton  Falls,  3  miles,  population  1,000  ;  Lordstown  and 
;  Yv' indsor,  20  miles,  population  800  ;  dairy  farms  supply 

iles) .  Small  town ,  but  country  in  the  vicinity  is  der  sely 
►al  articles  of  freight  are  butter  and  cheese,  for  New 
md  St.  Louis. 

nilcs),  population  1,000.  Tributary  towns — Painesville, 
n  800;  Palmyra,  10  miles,  population  500,  freights, 
all  the  region  from  Akron,  eastward  to  Grangcvilie,  is 
iintry;  although  small  towns,  some  of  them  furnish 
tons  of  cheese  and  butter  per  annum ;  it  is  desirable 
ces  being  paid  for  its  transportation  than  for  any  other 

iles),  population  4,000;  in  Portage  Coimty,  populntion  of 
>fisiiig  of  Cleveland  and  Pittsburgh  Railroad.  Towns 
>wn,  4 J  miles;  Randolph,  12  miles,  population  500; 
les,  population  600  ;  Strcatsburg,  5  miles  ;  SLalersville 
towns.  The  Cleveland  and  Pittsburgh  road  is  a  good 
central  portion  of  Atlantic  and  Great  Western  Railway. 
i).  Lately  called  Franklin  Mills,  is  a  midway  station 
LOG  miles  from  Dayton,  and  in  consequence  of  its  situa- 
position  ioT  the  workshops,  6zc.,  of  the  Compauj^.  The 
of  white  saudstone  found  on  the  spot,  and  are  substantial 
ley  consist  of  two  largo  car  sheds,  one  of  which  is  now 
ne  shop,  a  CO-horse  engine  working  some  valuable 
smith's  shop  and  engine  shed  with  room  for  eighteen 
ward  state,  the  latter,  when  completed,  being  designed 
iber.  The  foundations  are  laid  for  a  fine  machine  shop, 
J  house  and  paint  shop ;  these,  together  with  a  tank  for 
djoining  the  works,  will  complete  a  very  perfect  system, 
prove  of  gi'eat  sci-^'ice  to  the  Company. 
miles),  small  town,  population  500;  Cuyahoga  Falls, 
m  1,500. 


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876  Atlantic  and  Great  JTeste) 

Akron  (202  miles),  population  7,000;  the  n 
point  in  the  State,  capacity  of  mills  being  1,5(j 
on  the  Ohio  Canal,  and  on  the  Cleveland  an( 
Railroa/i ;  has  the  be?t  water  power  of  aoy  to 
large  agricultural  implement  shops  here.  1 
miles,  population  400;  East  Liberty,  11  mi 
Town,  13  miles,  population  800;  Manchesi 
Mid'ilebury,  2  miles,  TX)pulation  1,000. 

i^ew  Portage  (207  miles.)  On  canal  fron 
from  which  much  business  may  be  secured.  ' 
and  fertile  valleys  of  the  Scioto  and  3Iusk 
cities  uf  Xewark,  Chillicothe,  Circleville,  <S:c. 
10  miles,  pi»pnlation  2,(HX> ;  Hinckley,  5  miles,  i 
10  miles,  population  1,00<);  Liveri>ool,  15  miles 
ville,  25  miles,  population  2,500;  Albion  aj 
population  600.     Large  earthenware  works  at 

Wads  worth  (215  miles),  population  500,  I 
River  Styx,  to  the  north  ;  Doylestown  and  C 
villages  with  a  popidation  of  500  to  800 ;  dive 
Silver  Creek  branch  of  the  Atlantic  and  Great 
long,  being  the  first  coal  field  reached  on  the  ] 
Mining,  now  200  tons  per  diem  ;  two  more  m 
soon  be  ojMined.  It  is  expected  to  supply  the 
the  coal,  which  is  of  the  celebrated  Chippe^ 
gas  purxKJses,  situated  in  Summit  Coimtry ;  p< 

Seville  (220  miles),  population  1,200.  Tri 
mileri,  population  500 ;  3Iedina,  9  miles,  poj 
miles,  ix)pulation  1,000  ;  Lafayette,  7  miles,  p 
13  miles,  population  1,500. 

Bridgeport  (232  miles),  population  800  ;  L< 
Windsor  6  miles,  population,  4lM). 

West  Salem  (238  miles),  population  1,000  ; 
population  22,700.     Tributary  towns — Perry 
300  ;  Converse,  3  miles,  population  800  ;  Hor 

Polk  {2U  mdes).  Population  400.  Tribui 
l)opulation  500 ;  Kuusburg,  8  miles,  popidatio 

Asldand  (252  miles),  population  3,000 ;  .A 
2],G93.  Product  principally  wheat.  Trib 
miles,  popidation  1,000 ;  Jeromesville,  8  mile 
4  fniles,  population  500 ;  Savannah,  7  miles,  ] 

Windsor  (2G1  miles).  Population  300.  Tr 
and  Mifflin,  4  to  6  miles. 

Mansfield  (269  miles).  Richland  County, 
of  county,  31,121.  The  road  crosses  Fort  Wa 
Sandusky  and  Newark,  with  both  of  which  f: 
nect  at  this  station  for  Pittsburg  and  Chicagc 
Company  have  agreed  to  sliare  equally  the 
station  liere. 

Ontario  (277  miles).    Population  500. 

Gallon,  Ohio  (283  miles).  Popidation  2,6( 
Columbus  and  Cincinnati  Railroad,  eastern  te 
Indiana  Railroad  in  Crawford  Country,  popul 
Marion  (<listance  21  miles)  run  side  by  side  w 
Railroad. 


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iniie  and  Great  Western  Raihcay, 


877 


lies).     Pt.pi3lation  600. 

a),     ropiilatioii  3,000;  county  population,  15,801. 
es).     T'lNpLitation  700.     From  heuce  to  Korth  LewiR^ 
^j  tlie  cdiiJitry  is  new  and  thinly  settled.     The  wooils 
k  timbLi".     From  Marion,  east,  the  country  is  highly 

liles).    Population  800.    Bryant,  4  miles;    Carey,  7 
,  0  inUivs.     500  to  800  each  in  population. 
;s).     Nn  t<j\vnonline;    small  village  1  mile  distant; 
aiber  (tiniber)  sent  from  this  station  to  Dayton  and 

(338  iiiiU  -).  Population  1,000 ;  Bellefontaine,  popula- 
r>erty,  VI  miles,  population  2,O0iO;  Woodstock,  popula- 
rly, Li  mil  (H  ;  East  Liberty,  8 J  miles;  Maysville,  10 
miles  ;  Middletown,  4  miles  ;  Pickerstown,  8  miles  ; 
,  These  towns,  from  500  to  2,000  inhabitants.  Pail- 
he  ceutro  of  the  coimty. 
43  mile?).  No  village  here, 
milen).     No  town  ;    small  village  north  of  it  of  300 

s»).  Population  5,000,  in  Champaigne  County,  Ohio  : 
y,  lCi,50L  To  this  point  from  Dayton  the  line  ruup, 
andiiaky,  Dayton,  and  Cincinnati  Kailroad,  and  hero 
(>m  Iudiija[>olis,  Indiana^  to  Columbus.    A  f:ur  business 

rt>ail.  A  large  live  stock  trade  from  the  States  of 
\  wiLl  strike  here. 

Ucs).  A  small  village  ;  population,  300.  The  road 
>n  nms  near  Mad  Kiver.  This  valley  is  not  excelled 
agricultural  resouixes  by  any  portion  of  the  West, 
k  County  (;iGG  miles,  population  8,000 ;  a  large  maini- 
lling  cai^Licity  ] 30,000  barrels  per  annum;  town  is  1\ 
,  a  very  t-uterprising  place, 
es).     No  town  here. 

,  population  1,000  ;  town  one  mile  from  station  ;  popu- 
445.     Read  traverses  centre  of  county  east  and  west. 

County  (378  miles),  population  1,200;  of  county 
airlield  2  miles,  population  1,000;    Carlisle  4  miles, 

miles).     No  village,  6^  miles  from  a  station;  a  large 
)arrebi  flttur  per  diem,  and  an  extensive  distillery, 
inei-y  County  (387  miles),  population  of  city  22*000,  of 

I  manufacturing  town,  largest  item  of  production  bein;^ 
of  150,tH}0  to  200,000  barrels  per  annum  ;  the  tumiagt^ 

f  Rtatenients  from  books  of  various  railroads  to  New 
hiladelphia  and  Baltimore,  was  24,699  tons ;  it  is 
BUS  of  the  Cincinnati,  Hamilton,  and  Dayton  Railroad 
astern  ttrminus  of  the  Dayton  and  Western  Railro.irt 
terminus  of  the  Greenville  and  Miami  Railroad  42 
ninus  o!  tlie  Little  Miami  Railioad  70  miles  from 
of  the  State).  The  southern  terminus  of  the  Dayton 
ilniad   14U  miles ;  also  of  the  Sandusky  Daytc»n  and 

II  154  tnilew.  Not  much  trade  will  be  drayvn  from  thn 
mtic  and  Great  Western  Railway,  but  a  large  amount 
iQ  fioiitli  and  west.    A  L'lrge  mauiifacturing  and  mer- 


Digitize( 


878     Post-dated  Cheques — Are  they  TFi 

c?uitile  jobbing  business  is  carried  on  here 
The  road  traverses  the  centre  of  the  countj 
cinnati,  Hamilton,  and  Dayton  Railroad  with 
mercial  and  manufacturing  city  of  the  West, 
2(K»,000. 

In  the  alx-jve  rei>ort  tlie  population  has  \ 
census  of  1800,  since  irhich  time  it  has  consid 


POST-DATED  CHEQUES— ARE  TK 
VALID? 

[From  a  Correspondi 
A  CASE  of  great  commercial  importance,  a 
legal  world  of  Westminster  Hall  in  a  state 
for  some  time,  has  just  been  decided, 
mind  of  the  public,  and  especially  the  mi 
have  been  relieved  by  the  decision  just  con 
that  a  post-dated  cheque  is  not  illegal  s 
nothing  illegal  in  drawing  a  cheque  on,  sa 
and  dating  it  on  the  fii*st  of  the  succeed 
will  indeed  be  a  relief  to  many  of  our  read 
court  had  been  otherwise  than  it  has  bee 
liave  been  veiy  serious  indeed  :  for  nothi 
gi-eat  commercial  London  than  for  mere 
cheques  in  payment  of  bills,  accoimts,  and 
purix)ses.  And,  therefore,  if  it  had  been  c 
dated  cheques  cannot  sue  upon  them,  and 
and  purjx^ses  null,  void,  and  ineflectual, 
unscrupulous  and  miprincipled  dmwer  of 
fatal  objection  that  it  is  post-dated,  and 
claim  of  bond  fde  holders  who  may  ha-s 
for  the  cheques. 

The  main  facts  of  the  case  which  has 
same  as  occur  in  this  city  every  day  of  on 
the  24  th  of  June  hurt;  year,  the  defendant  1 
£350,  dated,  however,  on  the  24th  Julj 
that  the  cheque  was  not  to  be  presented  i 
mentioned  diate.  A  endorsed  it  to  B,  £ 
j)laintiff  in  the  action  on  the  di\y  it  bore  d 
no  intimation  whatever  rtf  the  feet  that  t 
The  plaintiff  having  sued  the  defendant  foi 
the  objection  was  taken]  (first)  that,  beii 
was  illegal,  and  so  void  ;  and  (secondly)  tl 
post- dated  it  was  in  effect  a  bill  of  exchans 
perly  liable  to  a  stjunp  duty  of  four  shilli 
one  penny  chargeable  on  cheques,  in  gene 


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Dmth  of  Sir  J.  W.  Luhhock. 


879 


ilv  staTJa|)ed  document,  and  on  that  account  inadmis- 
in  liny  court  of  law  or  equity.  These  objectioiLs 
md  kivrnedly  argued  before  the  Court  of  Queen's 
tl  be  seen  from  our  short  report  of  the  case  else- 
lurd ships  have  pronounced  an  unanimous  decision 
so    obj  tactions ;    and    the   pkintitT    thus   recovers 

^sion  ^vill  give  the  greatest  satisfaction  to  the  bank 
ideed,  to  all  commercial  people,  into  whose  hands 
:3  are  every  diiy  liable  to  come,  and  who,  if  thi^; 

the   other  way,  would  be  continually  exposed  to 

ubjections  incident  to  post-dating,  it  would  be  wlU 
that  this  decision  Ls  subject  to  appeal  to  the  Couii;  of 
iher,  and  that  in  all  probability  it  will  be  taken 
iinn  can  hardly  be  coiLsidered  as  ha\ing  finally  aiid 
1  the  ipiestion,  until  it  has  gone  through  the  tryinr; 
lurt  <jf  error."     Our  bankers  and  merchants  would ^ 

meantime,  do  well  still  to  be  chary  of  acceptuig 
■y  liav3  reason  to  suspect  are  post-dated, 
ly  if  the  decision  stands  unreversed,  that  the  Legisla- 
t  to  bring  in  a  Bill  specifically  prohibiting  and 
-st-dating  of  cheques  :  because,  they  will  say,  such  u 
H^jry  for  the  protection  of  the  revenue,  which  .would 
nidedj  or,  at  least,  deprived  of  the  dilFerence  between 
in  a  ]*ost-dated  cheque,  and  the  stamp  duty  on  a  bill 
he  same  amount  aa  the  cheque.     There  can  certainly 

if  tlie  decision  just  pronounced  remains  law,  post- 
11  become  the  nde  and  not  the  exception,  and  bilJs 
ixccption  and  not  the  rule.  For  who  Avill  be  lavish 
y  four  shillings,  to  Groveniment,  when  one  penny  will 
.lids  ?  In  tlie  case  we  are  referring  to,  for  instance, 
elei^^rly  lost  a  sum  of  three  shillings  and  eleven  pence, 
»ver  of  the  cheque  has  cleverly  saved  himself  that 

iT,  however,  may  eventually  be  the  law  on  the  subject 
ia  very  much  to  be  hoj>ed  tliat  bona  fide  holdei's  of 
mloo  and  without  any  knowledge  of  the  fi-aud  will 
will  be  allowed  to  recover  as  against  the  dravrer  of 
igainist  holders  antecedently  to  himself 


)EATH  OF  SIE  J.  W.  LUBBOCK. 

pi  LruBOCK,  Bart,  of  the  well-known  banking  firm 
jock,  and  Co.,  a  gentleman  who  devoted  much  of  his 
:m  to  philosophical  and  scientific  pursuits,  died  at  hL^ 
Elnii^,  near  Farnborough,  on  the  ^Oth  June. 


Digitiz^S^PI^it^^?  iC 


880  Death  of  Sir  J.  W.  Lul 

■  The  late  Sir  J.  W.  Lubbock,  wlio  was  the 
in  1803,  was  eclucated  at  Eton,  and  at  Trii 
where  he  graduated  in  1825,  being  fii-st 
He  was  many  yeara  Treasurer  and  Vice-' 
Society,  Yice-Chancellor  of  the  University  o 
of  most  of  the  principal  scientific  societies 
,  American  Academy  of  Arts  and  Sciences,  j 

•  Turin  and  Palermo.  He  spent  much  labour 
Moon,  which  is  thus  referred  to  in  Graut's  *'  I 

"  Sir  John  Lubbock  has  iuvestigated  tho  lu: 

•  valuable  papers  which  have  appeared  in  the  vol 
and  also  in  a  special  treatise  on  the  subject.  ^ 
vation  which  he  lias  introduced  into  his  researcl 
mean  longitude  of  the  moon  as  the  independ 
practice  which  lias  always  been  pursued  in  tht 
the  lunar  it  ha<l  been  hitherto  deemed  more  con 
longitude  in  terms  of  the  true,  considered  as  th( 
then  by  the  reversion  of  series  to  obtain  the  exi 
tudo  in  terms  of  the  mean.  The  eminent  geon 
ceives,  however,  that  the  use  of  tho  mean  lon^ 
variable  conducas  to  greater  simplicity  in  practi 
relates  to  the  lunar  jperturbations.      His   exai 

I  followed  by  Poisson,  who  introduced  another  i 

the  lunar  theory,  by  employing  in  his  researche 
tion  of  elements.  The  only  difficulty  which  a 
the  lunar  theory  arose  from  the  errors  in  the  i 
occasioned  so  much  fruitless  dj^cussion  since  1 
,  nineteenth  century.     Although  the  inequality  o 

tho  action  of  tho  sun,  which  Laplace  suggestec 

•  tion  of  these  anomalies,  was  generally  believed 
no  attempt  ha^l  been  made  to  calculate  its  real  t 

i  adequacy  to  account  for  the  errors  of  the  table 

in  doubt.     Poisson,  having  examined  this  poiii' 

;  covered  the  important  fact  that  the  disturbing  i 

produce  an  inequality  in  the  moon's  mean  lougi 

j  by  Laplace.     Ho  then  considered  the  inequality  ( 

•  in  tho  compression  of  the  two  hemispheres,  an( 
already  done,  that  it  was  quite  insensible.     Sir 
same  time,  very  siiux)ly  arrived  at  a  similar  cone 

•  own  formula." 

Sir  John  also  did  much  to  improve  the   t 
(  which  he  rcci^ived  one  of  the  Royal  Medals 

I  the  "  Nautical  Almanack  "  were  for  some  ti 

.  tables.     The   Nautical    Almanack    for   184 

•  subject : — 

i(  "It  is  to  Mr.  Lubbook  that  we  are  indebted  f( 

I  parison  of  the  theory  of  the  tides  as  given  by  '. 

I  "  Du  Flux  et  Reflux  de  la  Mer,"  with  tho  results 

from  a  period  of  nineteen  years  in  the  port  of  I 
which  was  published  in  our  transactions  for  183 

;  elaborate  discussion  by  Mr.  Depiou^  under  Mr, 


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Death  of  Sir  J.  IF.  Lubbock. 


881 


►re  than  13,000  observationB,  and  the  results  were  of  great  importance, 
b  merely  as  furnishing  the  materials  and  the  general  rules  for  the  cou- 
uction  of  tide  tables,  but  also  for  the  general  accordance  which  they 
libited  with  the  equilibrium  theory  of  Bemouilli,  particularly  with 
pect  to  the  semi-menstrual  inequality.  This  agreement  was  the  more 
portaDt,  as  affording  the  indication  of  the  real  existence  of  a  physical 
nection  between  the  theory  and  observation,  and  as  consequently  justi- 
ig  such  a  further  examination  of  its  consequences  as  might  lead  to  the 
x)very  or  suggestion  of  such  modifications  of  it  as  would  lead  to  its 
eral  accordance  with  the  laws  of  all  the  facts  observed." 

Lnd  on  the  same  subject,  Grant's  History  of  Astronomy  says  : — 

The  important  question  of  the  tides  has  recently  attracted  consider- 
3  attention  in  this  country.  The  *  Encyclopaedia  Metropolitana' 
tains  a  valuable  essay  on  the  mathematical  part  of  the  subject,  by  Mr. 
y,  founded  on  the  theory  of  undulations.  Sir  John  Lubbock  and  Dr. 
ewell  have  been  engaged  during  many  years  in  determining  the  laws 
he  tides  by  observation,  and  in  tracing  their  connexion  with  the  places 
he  sun  and  moon.  The  results  to  which  they  have  been  conducted  by 
r  researches,  are  contained  in  a  series  of  admirable  papers,  which 
tinue  to  be  published  from  time  to  time,  in  the  volumes  of  the  Royal 
iety.  These  distinguished  philosophers  are  now  endeavouring  to  do 
the  theory  of  the  tides  what  astronomers  had  done  for  the  lunar  theory 
rious  to  tne  establishment  of  the  theory  of  gravitation." 

n  conjunction  with  Mr.  Drinkwater  Bethune,  he  wrote  an  Essay 
Probabilities,  for  the  Society  for  the  Diffusion  of  Useful  Know- 
;e.  This  was  subsequently  reprinted,  but  owing  to  some  mistake 
he  binder,  it  was  described  as  "  De  Morgan  on  Probabilities/' 
a  extraordinary  mistake  was  not  diucovered  until  the  work  had 
Q  in  circulation  for  some  years.  His  treatise  on  "  Astronomical 
ractions,"  originally  published,  we  believe,  in  1840,  was  also  re- 
lished. Annexed  is  a  list  of  the  titles  of  some  of  Sir  John's  prin- 
il  publications  : — 

On  the  Theory  of  the  Moon,  and  on  the  Perturbations  of  the  Planets." 

uts. 

Account  of  the  *  Traite  tur  le  Plux  et  Beflux  de  la  Mer '  of  Daniel 

nomlli." 

An  Elementary  Treatise  on  the  Computation  of  Eclipses  and  Occulta- 

Bemarka  on  the  Classification  of  the  different  Branches  of  Human 
Jwledge." 

An  Elementary  Treatise  on  the  Tides." 
On  the  Heat  of  Vapours  and  on  Astronomical  Refractions. 
Ou  Onrreuty:*' 

t^^n  the  deter tiiinatioii  of  the  numerical  Values  of  the  Co-efficients  in 
series  consiBtiiig  of  Sines  and  Cosines  of    Multiples  of  a  variable 
^Ics." 

On  Shooting  Stars." 
<^  the  Attraction  vi  Ellipsoids." 
On  Cask  Gauging." 

'  Note  on  the  Caitulation  of  the  Distance  of  a  Comet  from  the  Earth." 
VOL.  XXV,  69 


Digitized^pOOgl^ 


882  Jieath  of  Sir  J.  W.  Li 

"  On  the  Limits  npon  the  Earth's  Surface  wil 

a  Star  or  Planet  by  the  Mood  is  visible." 
"  On  the  Divergence  of  the  numerical  Co-efl3 

of  Longitude  in  the  Lunar  Theory." 
"  On  the  Census." 

"  On  some  Elementary  Applications  of  Abel 
"  On  the  Double  Achromatic  Object  Glass." 
**  On  some  Problems  in  Analytical  Geometr 
"  On  a  Property  of  the  Parabola." 
,  "  On  a  Property  of  the  Conic  Sections." 

**  On  the  Wave  Surface  in  the  Theory  of  Dc 
"On  the  Variation  of  the  Arbitrary  Com 

lems." 

"  On  the  Arabic  Names  of  the  Stars." 
<•  On  the  Stability  of  the  Solar  System." 
"  Proceedings  of   the  Excise   Committee, 

thereto." 

"  Table  of  the  Sines  and  Tangents  (natur 

Quadrant." 
"  Table  of  the  Logarithms  of  the  Sines  and 

the  Quadrant." 

"  On  the  general  Solution  of  Algebraical  E( 
"  On  the  Wave  Surface  in  the  Theory  of  Dc 
"  On  the  Vapours  of  JEther,  Alcohol,  Petr 

tine." 
i  "  On  the  Conditions  of  the  Atmosphere,  and  < 

by  the  Barometer." 

"  On  Astronomical  Ecfractions." 
**  On  the  Gnomouic  Projection  of  the  Sphei 
**  The  Stars,"  in  six  maps,  on  the  gnomoi 
*  the  Society  for  the  Diifusion  of  Useful  Knowh 

The  folio  win  £^  are  extracts  from  the  addi 
,  the  Duke  of  Sussex,  President  of  the  Roy 

Nov.  30,  1837  :— 

"  It  is  now  three  years  since  the  Ttoyal  I 

Lubbock  for  his  researches  on  the  tides,  an 

themselves  of  the  first  opportunity  which  was 

of  the  cycle  of  the  subjects,  which  are  succes 

medals,  to  make  a  similar  award  to  his  coUci 

this  very  interesting  and  important  series  of  i 

me  to  attempt  to  balance  the  relative  claims  aj 

this  su]:»ject  of  these  two  very  emincDt  philoe 

to  remark  that  the  first  who  ventured  to  appi 

neglected  inquiry  was  the  first  also  who  was 

V  have  long  noticed  with  equal  pride  and  satisi 

, '  with  which  they  have  carried  on  their  co-ordii 

J  diiferent  to  every  object  but  the  attainmen 

I  superior  to    those   jealousies  which   too  free 

j  amongst  rival  and  contemporaneous  labourers 

science." 

Sir  John  Lubbock  was  one  of  the  treasu 
I  tion  of  1851,  and  was  a  member  of  several  < 


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'rawal  of  the  Bank  Notes  Issue  Bill, 


883 


y  mention  that  for  determining  the  standard,  and 
Lilted  to  investigate  the  question  of  weights  and 
s  for  many  years  senior  partner  in  hia  bank,  and 
i  of  importance  was  one  on  the  Clearing  of  the 
1  which  he  appended  as  a  motto  the  well-known 
ig:— 

cqaidem,  extremo  ni  jam  sub  fine  lahorum, 
:r:iham,  et  terns  festinem  advertere  proram." 

principally  at  his  seat  in  Kent,  whei'e  he  took  the 
terest  in  the  education  of  the  neighbouring  poor, 
inch  time  to  agricultural  pursuits,  and  was  a  sue- 
ock,  lus  South  downs  and  Shorthorns  having  carried 

riet,  daughter  of  Colonel  Hotham,  by  whom  he 
ren. 


ro  COMiVIERCIAL  PERMANENT  BENEFIT 
BUILDING  SOCIETY. 

y  has  been  established  under  favourable  auspices,  for 
rs'  clerks  and  others.  The  shares  are  £20  shares,  and 
shares  will  be  at  the  rate  of  5s.  "per  month.  The 
rf«i)ectable,  and  associated  as  the  whole  working  staff 
interest  of  London  it  iniLst  be  successful.  Tlie  ofhces 
mibers,  Threadueedlo  Street,  and  we  should  advise 
vi4  to  look  into  tho  objects  of  the  society  and  participate 


'AL  OF  THE  BANK  NOTES  ISSUE  BILL. 
this  Bill  was  announced  in  the  House  of  Commons  on 
(.'hauceUor  or  the  Exchequer,  who  said,  in  reply  to  a 
'n-Titinck, 

li'h,  in  the  view  of  the  government,  contains  conccs- 
>f  private?  notes  which  they  would  not  bo  justified  in 
i  make,  but  for  the  hope  of  producing  the  advantage 
A..  But  recent  proceedings  out  of  doors  have  shown 
h  »es  not  exist,  and  consequently  it  is  not  tlieir  inten- 
tliat  bill.  (Cheers.)  I  must  explain  tliat  tliey  do  not 
'u  of  prosecuting  the  subject;  and  in  the  absence  of 
have  referred  to,  it  may  be  their  duty  to  take  it  upon 
l^yjir) — and  they  reserve  to  themselves  to  consider 
would  not  b*o  right  at  tho  first  convenient  opportunity, 
'ill  not  occur  tliis  session,  to  invit^^  the  assistance  of 
s^  of  an  inquiry  before  a  committee." 
third  reading  of  the  bill  was  then  read  and  discharged. 


r 


Digiti 


884 


DEATH  OF  MR.  ANDREW  DI 

AVe  deeply  regret  to  aunoimce  the  death  of  M 
Cadlainl,  and  head  of  the  eminent  banking  fini 
took  phice  on  the  10th  June.     Mr.  Drummond 

I  by  a  large  circle  of  attached  personal  friends,  tc 

j)opular  qualities  had  rendered   hira  very  dear. 

J  Andrew  Berkeley,  eldest  son  of  the  Hon.  Rolx 

of  the  fourth  Viscount  Stratliidlan,  by  Lady  Mt 

[  the  second  Earl  of  Egmont.      The  late  Mr.  1 

Elizabeth,  second  daughter  of  John  Henry,  lifl 
survivf??  him.  He  leaves  issue  several  soup,  ai 
married  to  the  Earl  of  Scarboroui'h  and  Mr.  Bai 


^iipif: 


DEATH  OF  MR.  RICHARD  TJ 

The  death  of  Mr.  Richard  Thornton,  of  the  f 
and  West,  of  Old  Swan  Wharf,  and  Lloyd's, 
June,  at  the  advaoced  ago  of  80.  Mr.  Thornt 
and  his  piiucipal  operations  were  in  the  days  \ 
and  other  leviathan  bankers  and  merchants  mad 
computed  that  ho  will  at  least  leave  £2,500,000 
proportion  of  which  is,  no  doubt,  bequeathed  t 
for  many  years  been  associated  with  him  in 
recent  period  he  attended  the  City,  and  was  ] 
with  all  that  was  going  forward,  though  he  did 
in  financial  life  as  he  did  five  or  six  years  ago. 
a  world-wide  reputation,  and  its  transactions 
magnitude.  Mr.  Thoniton,  throughout  all  cii 
and  privately  he  disi>osed  of  a  large  amount  in 
many  years  since,  schools  and  almshouses  in  his 
handsome  allowance  for  the  support  of  those  wIk 
located  there,  the  ajc^sistance  thus  aflforded  being 


SWISS  LAW  WITH  REGARD  TO  BILI 

A  JUDCJMENT  h;us  recently  been  pronounced  by  tl 
republic  and  canton  of  Neufchatel,  which,  as  i 
generjilly  received  notion  of  the  common  law 
exchange,  is  of  great  importance  to  the  commerc 
lars  are  as  follows  : — A  London  banker,  at  the  t 
certain  Swiss  house,  held  two  of  their  drafts  uix)i 
in  London.  The  latter  were  unable  to  meet  thei 
consequently  sent  back  to  Switzerland  for  prese 
due  form.  The  bills,  of  course,  were  not  take 
that  a  meeting  of  the  Swiss  creditors  of  the  firm 
drawn  had  been  held  some  time  previously,  and 
that  no  claim  should  be  allowed  to  rank  on  th< 
certain  date,  which  date  haj)peuod  to  be  before  tl 
matured.  Tlie  London  creditor  appeided  to  the 
decision,  which  excluded  him  from  all  claim  on  tl 
judgment  of  the  highest  court  has  been  given  ag 


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885 


REDUCTION  m  THE  BANK  RATE  OF  DISCOUNT. 
HERE  hav«  been  two  reductions  in  the  rate  of  discount  this  month — 
le  first  on  the  1st  of  June,  and  the  second  on  the  15th  of  Jun- 
riien  these  alterations  were  made  it  v  as  remarked  as  follows  : — 
The  Bank  court  met  at  an  early  hour,  and  after  a  shoi-t  delibem- 
on  reduced  the  rate  of  discount  from  i  per  cent,  at  which  it  was 
laced  a  short  time  ago,  to  3^  per  cent,  until  further  notice.  Before' 
le  close  of  business  telegrams  from  Paris  arrived  announcing  tliat 
le  Council  of  the  Bank  of  France  had  reduced  their  rate  of  discount 
om  3^  to  3  per  cent  These  movements  show  that  the  value  <  f 
onej  is  rapidly  cheapening,  and  the  general  impression  prevails  timt 
8  may  even  yet  see  the  quotation  lower.  Before  the  Bank  directors 
parated  there  was  very  little  discount  business  transacted ;  later  ;i 
Loderate  degree  of  activity  was  noticeable,  at  the  official  rate  of  ^} 
2r  cent,  but  a  scarcity  of  bills  was  still  said  to  be  experierced.  In- 
3ed,  some  mercantile  houses  in  consequence  made  investments  in 
purities  in  preference  to  allowing  their  money  to  be  placed  out  in 
le  open  market  In  the  coui*8e  of  a  day  or  two  the  rates  will  be- 
>me  more  settled,  and  again  indicate  the  tendency  of  quotation  h. 
he  favourable  weather  for  the  harvest  is  exercising  a  beneficiiil 
feet,  and  with  the  present  low  terms  of  accommodation,  trade  shouM 
eadily  improve.  The  joint-stock  banks  worked  at  3|  per  cent,  and 
ere  enabled  to  employ  the  chief  portion  of  their  resources. 
On  the  occasion  of  the  second  alteration  it  was  observed — 
The  directors  of  the  Bank  of  England,  at  their  weekly  court  to-day, 
niuced  the  rate  of  discount  from  3  J  to  3  per  cent  until  further 
otice.  Although  the  alteration  was  not  generally  looked  for,  the 
ate  of  the  accoimt,  when  published  this  afternoon,  showed  that  the 
ovemor  and  his  colleagues  are  thoroughly  consistent  in  the  counju 
ley  have  pursued,  some  parties  even  linking  that  the  official  rate 
lay  descend  another  half  per  cent  Tha  favourable  condition  of  the 
weather,  the  quiet  state  of  trade,  and  the  presumption  that  the  next 
vo  months  will  pass  over  without  any  special  activity,  are  circum- 
tances  which  create  much  firmness  in  prices,  and  lead  the  public  Ui 
enew  their  operations  in  their  various  classes  of  securities.  It  i^ 
ighly  probable  that,  with  the  allowance  of  2  per  cent  only  for  de- 
osits  at  the  joint-stock  banks,  there  will  be  withdrawals  for  invest 
^ents,  and  should  the  official  minimum  again  decline,  a  greatei- 
ticentive  than  ever  will  be  offered  to  take  out  money  for  employ- 
lent  in  the  manner  described.  The  accounts  of  the  harvest  are,  on 
he  whole,  satisfactory,  but  it  must  be  remembered  that  we  have  a 
loubtful  period  still  to  pass  through  before  the  actual  result  is  ascer- 
ained.  The  tone  of  the  different  markets  was  exceedingly  satisfactory 
his  afternoon,  and  though  the  prices  were  not  in  ev^ry  instance 
naintained  at  the  extreme  advance,  the  prospects  of  steadiness  aro 
^nsidered  to  be  thoroughly  assured. 


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886 

BARNED'S  BANKING  CO 
It  is  intimated  that  the  baDking  business  c 
Co.,  of  Liverpool,  is  about  to  be  transfer! 
company,  under  the  title  of  Bameda  Ba 
capitiil  of  £2,000,000,  in  40,000  shares  of 
not  intended  to  call  up  more  than  £20  per  a 
with  regard  to  directors  are  not  quite  con 
prospectus  will  not  be  regularly  published  ti 
price  to  be  paid  for  the  business  is  fixed  at  . 
Htalments  spread  over  two  years,  as  stipu 
Encoui-aging  promises  of  support  have  been 
pool  and  London,  and  the  present  partner 
du-ectoi-s  for  five  years,  retaining  at  the  same 
the  undertaking.  Annexed  is  a  circular  ac 
friends  and  connections  : — 

"  Bank,  I 

*•  Dear  Sir,— We  beg  to  inform  you  that  w 
transfer  of  our  business  to  a  joint-stock  compan 
Banking  Company  (Limited),'  in  which  we  sha 
siderable  interest,  but  continue  our  personal  su 

"  The  prospectus  of  the  company  and  the  nan 
published  immediately,  but  we  think  it  only  pi 
and  respected  friend,  should  first  hear  of  the  alt 
through  any  extraneous  channel. 

"We  trust  that  the  confidence  which  has  bee 
us  for  more  than  half  a  century  may  be  continn 
ment.— We  are,  dear  sir,  yours  faithfuUy, 


CAPE  OF  GOOD  HOPE  DEBI 

o^nfnff  ^.^^  ^"^  Hope  Six  per  Cent.  Debenture 
complete  the  nnprovements  of  the  harbour  of  Al 

100  to  107.     The  total  amount  applied  for  was 
quotation  was  100.  ^«  n»r  ivas 


€ommxxmcixtm\$^ 

To  the  Editor  of  tW  Baiiker^  ^ 
MR.    GOSCHEN,   AND  MR.   E 

ict^  hi^  ^''  t^'^  ^*>^"  ^''y^  Institution  wh 

man  8  definition  of  a  «  pound."     Mr.  Enderbv  rei 

doinoT^rP/^""^^-     ^^--Enderby^so^^^^^^^ 

Fuwng  lo  Mr.  Goschen  an  inferiority  which  wou 


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Oommunicatione. 


887 


an  enooimter  with  Mr.  Bnderby.  He  says : — "  Mr.  Goschen  is  a  yoiin  l; 
an  having  a  reputation  for  great  talent/'  and  Mr.  Enderby  supposes  that 
r.  Goschen  "  considers  himself  equal  to  a  disputation  with  those  undt  r 
lom  he  has  studied,  (kc."  Mr.  E,  tells  Mr.  Goschen  how  many  wordfi  lio 
Q  define  a  "  pound  "  in—"  iiVe,  or  at  most  eight " — not  a  hair  more.  This 
Us  to  mind  the  acumen  of  Shylock. 

Mr.  Enderby  "  entertains  very  decided  opinions  on  these  matters,"  so, 
less  Mr.  Goschen  wishes  to  engage  in  an  economically  political  conflict 
th  the  Boyal  Institution  ad  ii^nitum  he  is  very  wise  not  to  answer  this 
imple  question." 

K  these  questions  have  commanded  Mr.  Enderby's  attention  for  years, 
)  are  surprised  that  he  should  fancy  his  notoriety  will  become  inflated  by 
ing  small  shot  from  an  imknown  gun  at  a  public  man  who  has  fairly  won 
3  position  by  good  sound  knowledge,  and  more  particularly  from  his 
lowing  what  a  "  pound  "  is,  and  the  difficulty  of  getting  it. 
Mr.  Enderby  says  Sir  Robert  Peel  shunned  the  universities  as  regards 
Formation  upon  political  economy  or  currency.  This  we  cannot  vouch 
: ;  the  probabilities  are  immensely  in  its  favour.  Sir  Robert  ktie\%' 
ry  little  about  it  himself,  and  we  can  quite  believe  the  good  people  froui 
lom  he  learnt  were  left  far  behind  at  an  early  stage  of  the  tuition. 
^litical  economy  and  currency  questions  are  subjects  the  least  underst<xMl 
universities,  and  can  never  be  thoroughly  so  until  their  practical  appli- 
tion  has  been  studied  also.  A  university  lecture  dilating  upon  a  few 
the  leading  theorems  of  political  economy  does  extremely  well  to  be  stt 
wn  as  aji  ornamental  part  of  a  student's  education ;  but  is  there  ouo 
ident  in  any  university  in  England  who  cares,  or  is  interested  to  know, 
lether  rent  forms  an  element  in  production  or  not  ?  Whenever  infor- 
eition  has  been  reqiiired  respecting  commercial  changes  of  great  magui- 
de,  alterations  in  bank  acts,  or  note  issues,  or  taxation,  recourse  haM 
wrays  been  had  to  men  whose  daily  occupation  has  been  the  practic;U 
vestigation  of  such  subjects ;  such  men  as  Toojie,  Ricardo,  Lord  Ovoi  - 
one,  and  Gilbart,  are  the  persons  who  have  enlightened  parliamentai  y 
mmittees,  who  sit  puzzling  their  brains  imtil  they  are  obliged  to  givu 
,  and  confess  they  know  nothing  about  it.  Who  ever  heard  of  sendiiJi^ 
a  university  to  know  whether  the  Bank  of  England  should  continue  to 
i  the  only  issuer  of  notes  in  London  ? 

Mr.  Goschen,  whom  our  friend  pretends  to  have  instructed,  has  had  ex* 
srience  upon  the  field  itself,  and,  consequently,  has  produced  a  book  upon 
reign  exchanges,  which  he  never  would  have  written  had  he  remaint  d 
ways  at  the  university,  and  has  consequently  secured  the  chaplet  Mr. 
nderby  looks  upon  wiUi  such  unconcealed  envy. 

A  very  superior  intelligence,  such  as  Mr.  Mill's,  will  drive  its  way  very 
;r  through  the  difficulties  which  ordinary  mindB  oajmot  grapple  witli  nt 
11  without  the  assistance  of  a  practical  experience.  Mr.  Mill's  book, 
'  must  be  remembered,  is  a  very  clear  exposition  of  the  conclusioiin 
rrived  at  by  commercial  men — men  who  have  passed  years  in  the  study 
I  commerce.  Mr.  MiU  could  never  have  raised  such  a  fine-looking 
ibrio  as  his  two  volumes  on  the  principles  of  political  economy,  had  ho 
ot  commenced  the  structure  on  the  solid  foundations  laid  by  Adam 
'ittiih,  Fullarton,  Ricardo,  <kc. ;  and  the  very  slow  progress  which  is 
lade  in  this  science,  proves  how  few  are  the  minds  which  find  a  pleaisure 
^  its  study. 

We  tincerely  hope,  in  the  cause  of  science,  Mr.  Enderby  may  throw  sonip 
ight  upon  the  subject  in  his  forthcoming  work ;  but  we  must  remark 


Digitized 


d^^OOgl 


888  Communications. 

that  he  does  Dot  pave  the  way  to  a  favourable  n 
public  man,  froui  whom  we  are  at  present  uude 
in  a  manner  savouring  of  ooutumeiy. 


Stockholm. 


BANKING  QUERIEI 

Sir, — I  should  be  much  obliged  if  you  wo 
questions. 

I  am. 
You 

20th  June,  18G5. 

Ist.  It  appears  by  your  answer  to  a  note  m 
your  Magazine,  that  a  banker  may  hold,  until 
ceipt,  a  checpie  remitted  to  hiiu  by  another  ban] 
return  unpaid.  May  a  cheque  which  reaches  a 
his  London  agents,  havijig  been  passed  tlirouj 
likewise  held  a  day,  or  is  it  affected  by  the  loi 
sent  it  ? 

2iid.  May  not  a  cheque  which  arrives  in  tlie  ( 
business,  be  treated  as  if  it  had  been  received  th 

3rd.  Are  all  forms  of  deposit  receipts  and  cun' 
to  stamj)  duty  ? 

[Ist.  The  banker  receiving  a  cheque  has  the  ' 
for  its  presentment,  and  must  not,  therefore. 
The  time  required  for  transmission  through  the 
wise  provided  for, — See  case  "  Hare  v.  Henty," 
June,  1801. 

2nd.  We  think  it  may. 

3rd.  They  are  not  liable  to  stamp  duty,  provi 
the  terms  of  exemption. — 16  and  17  Vict.,  c.  59. 


MATURITY  OF  NOTES  FALI 

Sir, — Will  you  kindly  answer  the  following  q 
of  your  valuable  periodical. 

Does  a  bill  drawn  in  the  following  terms  beoor 
the  month  i — 

"  On  the  First  of  August  I  promise  to  pay  J 
Pounds."  Your 

[On  the  4th  August.] 


FURTHER  BANKING  QU: 

Sir, — I  am  obliged  for  your  reply  to  my  comn 
page  532. 

1  St.  On  referring  to  your  report,  page  550,  veai 
reserved  to  move  the  Court  above  for  plaintiffs. 


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Estates  of  Failed  Firms. 


any  farther  stepe  were  taken,  and  also  state  whether  you  consider  this 
on,  approving  endorsements  per  pro,  or  the  opinion  of  your  corre- 
ent  at  page  618,  1860,  the  safer  to  act  upon  ? 

I.  I  must  trouble  you  again  on  cheques  crossed  to  a  particular  bank.  D6 
>n8ider  it  necessary  for  such  to  bear  the  endorsement  of  the  bank  in 
)  name  the  crossing  is  made,  or  is  a  payment  to  any  clerk  from  the 
ishment  sufficient  ?  Most  respectfully  yours, 

A  SUBSCBIBEB. 

).  We  believe  no  steps  have  been  taken  to  reverse  the  decision  then 
;  the  opinion  of  our  correspondent  is  of  a  prior  date  to  the  judgment 
»tion,  and,  of  course,  over- ruled  by  it. 

!.  Cheques  specially  crossed  to  a  banker  do  not  require  his  endorso- 
;  payment  to  his  clerk  is  sufficient.] 


MR.  GOSCHEN  AND  7  PER  CENT. 

BlackbiuTi,  June  22,  1865. 
, — In  your  last  impression  is  a  letter  by  Charles  Enderby  on  Mr. 
en  on  **  Seven  per  Cent.,"  <kc.,  in  which  the  writer  says  that  the 
ity  of  sold  a  sovereign  must  contain  is  fixed  by  the  Act  of  1819 


( J,-t  grains,  is  it  not  123-274  grains  ? 
I.  Wm  you 


you  kindly  explain  why  Australian  sovereigns  are  not  a  legal 
r  in  England,  seeing  that  there  has  been  an  Act  passed  to  make  them 

.  In  your  magazine  for  this  month  your  correspondents,  "  Old  Sub- 

rs,"  ask  if  the  endorsement  of  a  cheque  is  a  "sufficient  and  legal  '* 

t  for  payment  of  a  debt,  which  question  I  do  not  think  that  you 

T  by  saying  that  it  is  usual  to  accept  the  endorsement  as  a  receipt. 

1  such  endorsement  be  admissible  as  a  legal  receipt  in  a  court  of 

e? 

idly  excuse  the  number  of  questions. 

Your  obedient  Servant, 

T. 

i  and  2nd.  We  have  no  immediate  meanb  of  reference  to  these  matters, 
.  We  do  not  think  the  endorsement  on  a  cheque  is  a  sufficient  atu] 
receipt  for  payment  of  a  debt,  but  only  for  the  amount  of  the  cheque 
:  the  oonneotion  between  such  amount  and  the  debt  is  a  matter  of 
Dce.] 


(BBiixtt^  of  Jfailiir  Jfixms- 


IHE  ESTATE  OF  MESSRS.  DIROM,  DAVIDSON,  A  CO. 
creditors  of  Messrs.  Dirom,  Davidson,  and  Co.,  of  Liverpool,  who 
itly  failed  in  the  East  India  trade,  met  on  the  16th  June,  when  it  wa8 
3d  to  accept  a  composition  of  IOji.  in  the  poimd.    The  unsecured  lia- 
ies  ranged  from  £140,000  to  £150,000. 


019111261**7 


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890 

THE  ESTATE  OF  MESSRS.  WOODHC 

A  Meeting  of  creditors  was  held  on  the  23rd 
hoiiRe,  Kerrich,  and  Co.,  of  Abchurch  Chan 
announced  on  the  27th  May,  when  a  statemei 
Messrs.  Hart,  Brothers  and  Co.,  showing  tota 
with  assets  stated  approximately  at  £2,53,932 
fully  the  various  matters  connected  with  tl 
mously  resolved  to  liquidate  the  afi'airs  of  th 


MERCANTILE  SUSPE 

The  suspensions  announced  during  the  month 

Messrs.  Fulcher,  Cooper  &  Co.,  Liverpoo 
Messrs.  Bryon,  Hughes  <k  Co.,  London,  i 
Messrs.  Levick  &  Co.,  London,  iron  trad 
Messrs.  Levick  <fe  Simpson,  Blaina,  iron 
Messrs.  A.  G.  Eumorfopulo  <fe  Co.,  Lond( 
Messrs.  Ernst,  Brotliers,  London,  silk  aj 


MONTHLY    CHRON( 


June  1 — The  directors  of  the  Bank  of  Enj 
rate  of  discount  from  4  to  3i  per  cent. 

The  directors  of  the  Bank  of  France  reduc 
3^  to  3  percent. 

Suspension  announced  of  Messrs.  Fulcher, 
in  the  East  India  trade,  with  about  £400,00( 

2. — Failure  of  Messrs.  Bryon,  Hughes  <fe  C 
provision  trade,  with  liabilities  to  the  extent 

14. — Suspension  of  Messrs.  Levick  <k  Co.,  c 
&  Simpson,  of  Blaina,  Monmouthshire,  in  th 
reaching  to  between  £350,000  and  £400,000. 

15. — The  directors  of  the  Bank  of  England 
discount  from  3}  to  3  per  cent. 

15. — Failure  of  Messrs.  A.  G.  Eumorfopul 
chiefly  in  the  Levant  trade,  with  about  £35,C 

26. — Suspension  reported  of  Messrs.  Emsl 
silk  agents,  with  debts  reaching  to  about  £15 


BANKING  OBITI 

On  the  28th  May,  at  Tallymore,  near  Hei 
Corbould,  late  of  the  Bank  of  Ed  gland,  in  h 

On  the  12th  June,  at  his  residence,  FalcoD 
Nichols,  of  the  London  and  Westminster  Bank 

On  the  17th  of  June,  at  Clent,  near  Stourl 
Adams,  of  the  Stourbridge  and  Kidderminst< 
bridge,  aged  54. 


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891 


^  the  18th  of  June,  at  Park  Walk,  Chelsea,  Mr.  Walter   Powell, 

aerly  of  Lombard-street,  banker,  in  the  95th  year  of  his  age. 

n  the  20th  June,  at  High  Elms,  Kent,  Sir  John  William  Lubbock  ^ 

t.,  of  Lombard-street,  banker,  in  the  93rd  year  of  his  age. 

Q  the  20th  June,  at  Bryanstone-square,  Andrew  Robert  Dnunmond, 

,  of  (Glaring  Cross,  banker,  and  of  Cadland,  Hants,  in  the  Tlst  year 

is  age. 


BANK  MOVEMENTS. 

e  directors  of  the  Chartered  Mercantile  Bank  of  India,  London,  and  China, 
annoonced  a  dividend  of  eight  and  a  half  per  cent.,  free  of  income-tax,  for 
urrent  half-year,  payable  to  the  proprietors  on  the  London  register  on  and 
the  1st  of  July. 

e  retirement  of  Mr.  Bassett  Smith  as  the  manager  of  the  Birmingham  Town 
)istrict  Bank  has  been  announced,  and  he  is  succeeded  by  Mr.  T.  Barney,  latu 
ger  of  the  Stamford,  Spalding,  and  Boston  Banking  Company. 

.  William  James  Touell,  of  the  Commercial  Bank  Corporation  of  Imlia  and 
last,  has  been  appointed  general  manager  of  "  The  London  and  Bombay 
and  General  Financial  and  Insurance  Agency  Corporation,  Limited.'* 

3  directors  of  the  Bank  of  Delhi  have  opened  o£Sces  in  London,  and  a  regis- 
Q  of  shares  is  to  bo  arranged  in  this  country. 

iranch  of  the  Anglo-Italian  Bank  at  Naples  has  Just  been  opened. 

I  East  India  Financial  Association,  Limited,  have  received  their  certificate 
inge  of  title  to  the  East  India  Land  Credit  and  Finance  Company,  Limited. 


TRADE  OF  THE  UNITED  KINGDOM. 

Board  of  Trade  returns  for  the  month  and  four  months  ended  tlie 
April  were  issued  on  the  Slst  May,  and  again  show  a  rather  consider- 
iecline  in  the  -value  of  exports,  which  is  to  be  attributed  chiefly  to 
illing  off  in  wool  and  woollen  manufactures,  but  as  regards  other 
»  the  changes  are  not  of  much  importance.  The  totsd  declared  value 
wrts  for  the  month  last  past  was  £12,071411,  against  £13,225,039 
64,  and  £11,897,177  in  1863,  being  a  decrease  on  the  first-named 
I  of  £1,153,928,  but  an  increase  over  the  latter  of  £173,934.  For 
ur  months  of  the  present  year  the  total  was  £47,706,818 ;  for  1864, 
92,420;  and  for  1863,  £39,458,381,  showing  a  decline  of  £2^85,602 
Qpared  with  1864,  but  an  increase  of  £8,2418,437  as  contrasted  with 
The  chief  variations  as  regards  exports  have  been  an  increase  iit 
iiDd  ale,  coals  and  culm,  cotton  manufactures,  haberdashery  and 
lery,  linen  manufactures,  machinery  and  seed  oil ;  but  a  decrease  in 
,  cotton  yam,  earthenware,  linen  yarn,  metals,  silk  manufacturefl, 
%  wool,  woollen  and  worsted  yarn,  and  woollen  manufactures.  As 
lU  iinporte  an  increase  is  exhibited  in  clocks  and  watches,  guano,  raw 
talluw,  wool,  woollen  macnufaotures,  tea,  and  tobacco.  On  the  other 
there  has  been  a  falling  off  in  raw  ootton^  flax  and  hemp,  leather 


Digitize! 


jGooglei 


892 


Trade  of  the  Unitti 


mamifactures^  flaxseed  and  linseed,  cocoa, 
wine.  In  the  case  of  cereals,  there  has  bee 
of  barley,  oats,  and  beans,  but  a  decline  i 
wheat-meal,  and  flour.  As  respects  pro"^ 
and  lard,  show  an  increase,  but  salt  be< 
decline^  The  annexed  tables  will  exhibit  1 
tef erred  to  : — 

Exfoets. 


Coals  and  culm 

Cotton  manufactures    ... 

Cotton  yarn       

Haberdashery  and  milHnery 
Linen  manufactures     ••• 

Linen  yam         

Iron,  pig  

Ditto,  railway 

Copper,  unwrought 
Ditto,  sheets,  nails,  &c. 

Oil,  seed  

Bilk  manufactures        .•• 

Ditto,  thrown     

Spirits,  British 

Woollen  cloths,  &c. 
Woollen  and  worsted  yam 


tone 
,  yard 
.  lbs. 
.  value 

►  yardi 
.     lbs. 

tona 
i» 
,    cwts 

'         »» 
.  galloi] 
.  value 
.     lbs. 
.  gallor 

►  yard; 
.     lbs. 


Imports. 


Cocoa      

Coffee 

Wheat 

Wheat-meal  and  flour 

Cotton,  raw       

Flax        

Hemp      

Hides,  tanned,  &c. 

Leather  manufactures  .. 

Butter 

Cheese < 

Flax-seed  and  linseed  .. 

Silk,  raw 

Silk,  thrown      

Silk  manufactures 

Spirits     

Sugar,  unrefined 

Tallow 

J.  ea         ••>         •••         ••• 

Tobacco  

wine       •••         •••         ••■ 

Wool       

Woollen  manufactures... 


lbs. 

»» 

qrs. 
cwts 


lbs. 
pairs 
cwts. 


qrs. 
lbs. 


.  gallon 
.    cwts, 

II 
lbs. 

ft 

,  gallon 
,  lbs. 
.  value ; 


Digiti 


ized  by  Google 


^  893 

^0iwtarg  lirtellijjeiuc. 

MONETARY  KEVIBW  FOR  THE  MONTH  OF  JUNE. 

IE  cannot  be  said  to  have  been  any  great  alteration  in  the  position  of 
cial  and  commercial  affairs  during  the  month  just  concluded.  A 
Ttion  has  occurred  in  the  Bank  rate  of  discount  to  3  per  cent.,  it 
3g  previously  stood  at  SJ  per  cent.  The  condition  of  the  Bank  of 
and  and  the  Bank  of  France  show  that  both  establishments  possess 
■ge  amount  of  resources.  The  terms  of  accommodation  would  no 
t  have  gone  lower  but  for  the  expectation  that  there  would  be  a  strain 
le  end  of  the  half-year  and  quarter,  which  would  tell  upon  the 
ral  market.    The  average  quotation  out  of  doors  for  first-class  paper 

to  3  per  cent. ;  and  a  great  deal  of  business  has  been  done  at  3  and 
$r  cent.,  with  a  disposition  to  turn  business  away  and  send  it  to  the  bank, 
effect  of  this  has  been  to  create  a  heavy  pressure  there,  and  between 
►resent  date  and  the  fourth  the  inquiry  will,  in  all  probability,  be 
itained.  The  bankers  and  brokers  generally  complain  of  the  deposits 
r  short,  a  circumstance  always  the  case  at  the  present  season,  when 
ultural  operations  are  setting  in  with  vigour.  The  value  of  money 
16  continent  is  generally  becoming  easier,  and  with  the  present  state 
lings  there  can  be  no  immediate  important  rise. 
le  market  for  English  securities  has  drooped,  although  the  engage- 
rs have  not  been  very  extensive.  The  government  broker  has  just 
Luded  his  purchases  of  Reduced  and  New  for  the  sinking  fund,  and^ 
sfore,  this  portion  of  support  has  been  withdrawn.  At  the  same  timu 
\yj  speculative  account  for  the  rise  has  been  closed,  showing  prices  in 
ak  situation.  Consols  were  rather  firm  on  the  2t>th  at  90  to  |  for 
ey,  and  the  account  exchequer  bills  exhibit  steadiness. 
[>  movement  of  interest  has  been  apparent  in  foreign  stocks.  Mexican 
l>een  a  little  firmer ;  Turkish,  after  fluctuating,  has  again  been  dull ; 
ik  and  Spanish  exhibit  heaviness.  The  Confederate  loan  is  nearly  a 
1  letter,  and  the  quotation  remains  perfectly  stationary  at  6  to  8, 
3ral  stocks  and  railway  shares  have  latterly  improved, 
lie  railway  market,  after  having  been  buoyant  and  good  in  the  early 

of  the  month,  has  latterly  presented  weakness.     Though  the  traffics 
i  been  well  sustained,  the  operators  do  not  seem  inclined  to  go  for  the 

preferring  to  wait  till  the  elections  and  the  harvest  have  passed, 
ank  finance  and  credit  shares  manifest  little  revival.  A  moderate 
!nt  of  business  only  is  transacted,  and  the  public  are  not  likely  to  bu 
e  buyers  while  an  absence  of  confidence  continues  general.  The  Bank 
(lends  will  be  satisfactory,  and  so  will  those  of  the  finance  and  credit 
panies.  In  the  course  of  the  next  fortnight  we  shall  be  able  to  ascer- 
L  the  prospects  of  many  of  the  establishments. 

he  produce  markets  are  still  very  heavy.  The  accounts  from  India 
Hi  appear  discouraging,  and  with  the  exception  of  cotton  there  ban 
1  no  general  recovery  in  prices.  The  state  of  credit  in  Bombay  still 
aina  very  doubtful. 


THE  GRAIN  TRADE. 
n  the  early  part  of  last  month  the  com  markets  had  a  tightening  ap- 
ranee,  and  there  was  a  slight  advance  in  prices,  but  the  continuation  of 
y  favourable  weather  for  the  growing  crops  had  the  effect  of  stopping 


zedbyGoOgk 

4 


894 


Notices  to  Corresp 


any  further  rise,  and  quotations  for  the 
lower,  but  before  the  close  of  the  month, 
rain,  and  some  apprehensions  that  the  Ions 
have  a  prejudicial  effect  upon  the  yield  of  1 
an  upward  tendency.  The  demand  for  w 
but  the  supplies  continue  abundant,  botli 
descriptions.  Barley  and  oats  have  not  t 
prices  remain  steady.  The  latest  official  qi 
per  qr. ;  barley,  27«.  3d!.,  and  oats,  23s.  8d, 
The  Gazette  returns  for  England  and  Wj 

Week  Wheat.  Weekly 

ending,  Qrs.  sold.  Average. 

IbOo,  «.    d. 

May    27  80,224       .•.        41    9 

June     3  70,443      ...        41  11 

„       10  57,704      ...        41    5 

„       17  51,802      ...        41    1 

The  importations  since  the  harvest  of  18 

V 

Forty- four  weeks  ended  20th  May  ...     13,J 
Four  weeks  ended  17th  June  ...      2,- 

16; 

And  the  weekly  averages  have  been : — 
Forty-four  weeks  ended  20th  May      ...       I 
Foiur  weeks  ended  17th  Juno i 

More    ! 


STATE  OF  TR. 


The  state  of  business  in  the  provinces  is  rati 
that  the  approaching  elections  will  interfere 
the  harvest  in  some  districts  will  occasion 
nevertheless,  it  is  expected  the  year  will 
nanner. 


NOTICES  TO  CORRES 

We  have  nrrAHfrod  in  futnro  to  issnc  a  dorible  numbc 
formerly  iu  Mav  and  November.  This  has  bcou  rcade 
tho  Meetiii;f.s  ul"  the  Baak!>  aud  Discount  Companies,  wl 
in  the  iJiiLTu'S  of  tho  Bunkers'  Magazine.  We  shall  aLs 
Credit  and  Finfinco  CompaiiiL's  aa  they  are  more  ( 
that  our  Bubscribers  and  readers  can  r.d'or  to  them 
will  please  Ibrward  comiiiixnicatiou.s  adilre^sod  to  th 
scriptiouei  and  orders  as  usual  to  Messrs.  Groombri 
Messrs.  "\VaU»rlow  aud  Sons,  Cariiouters'  Hall,  Lom 
A2VECDOTKS. — It  will  bo  perccived  from  notice  olsewl 
Mii(/aziue  is  collectin.tr  and  aiTan<.'in,'j  a  seriea  of  Bank 
contributions  fmm  subscribers  aud  readers  of  tho  21 
particularly  if  the  8u))Jcci-matter  .shall  not  liave  pre 
personal  or  offenaivo  Will  receive  pablicity.  The  rocei 
acknowledged. 


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ized  by  Google 


BAKK  OP  FRANCE, 

DKBXQE. 


AloflbeBftak  .. 
to  fn  addiyaxi  to 
itthl  (Ark  8,  Law 

roxto  »,  idST) 

rvo  of  the    Bajik 

1  iu  bxiuichM     ..« 

rro  in  luitlod  pfpfr- 

tjr   .« 

I  in  circalfttion  ,.. 

>&otea    to     order 

IreoelpfiB  payable 

light 

ntj  ftocount  cnr- 

ii  ereditor... 

nn  iicooimt«T  Piuii 

••nch  bucks 

leodi  pftj»blo     ... 

KllllB  nod  fiuodry 

kvoonloa  tho  last 
rafmUiS    

Inea..,        ,,, 

Total    ,.. 


JxmG  1. 


V.  c. 

183,600,000    0 


7.0«.R71  HI 
22,105JfiO  14 

7,550,890  25 

1«6.374,475  77 

30.7rt3,9^3    0 

008,lWtt  75 

ll,9Si3yO  33 

2,7'^,  *I4    f» 
n,<Wl!J,H(l7  60 

I.ai5,©8,075  SI 


jufi^a 


18£,SO0,OD0    U 

7,0-l'4,734  81 

S2,10&,7M  H 

4,000,000    0 
795,612,075    0 

6,543,803  47 

&l,80t2J5D  10 

1 73,61 4.9  W  35 

30.01 5, !»«    0 

&15,1&1  75 

19,426.000  16 

£.789,444    5 
ll.Ct2,6fi7  77 


1,^143,807,430  m 


June  IS. 


182,500,000    0 

7,044,724  81 

S3,10S,7M  14 

4.0(>},000    0 
623.371,036    0 

7,166,042  83 

ioa.i:u,f>24  8 

J57,77H,Mt2  56 

2d,7S2,186    0 

et»,0(}l  76 

12,908,868  eO 

2,780.444    fi 
ll,a.\l,a^lfl    3 


L,yU8.74o,024  55 


Jiuio22, 


182^500,000    0 

7,011,770    a 

22,105,760  14 

4,000,000    0 
7»7,822,976    0 

7,089,818  10 

131.400,116    0 

l71.«iH,0O2  89 

3<i,234,75»    0 

507,100  74 

13,330,333  60 

2,7^,4M    6 
10,613,460  92 


l,J-S0,07y,WJU   47 


CREBITOB, 


1  e«i!i 

I'lanks 


I    lulls    dlft- 
lat  vet  ilau 


,  W67) 

i£  re* 


Jtine  L 


Total    ,., 


r.  0. 

490,8M,024  93 

lS,199,83fJ  31 

222,027.337  &i 
2fli,U7.aai>    U 

ltJU,If88    0 

l4,MI,6n[>    0 
0,63 1, I5f)    tl 

ao.iousoo  0 
if*,ui2,:6<>  0 

nsiAoo  0 

*IXJ,5(M>    0 
00,000,000    0 

1*''TC#>TS0  14 

-     7  01 


8,104,9^    0 

1.951v47«  Jl 
H,S<i2,i*l»  ;<i 


i,afcr..o^,tfrfi  ei 


Jojie^, 


498,927«Z31  06 

68C.727  4i 

234.197,887  91 
:*ii7,7Jl,i*03    0 

r{0,O2»,29Ct  35 
lO,17r.lSO    0 

14,0!H,500    0 

30,.115,1'W    0 
lU,15i».260    0 

Wr.S'X)    0 
4L>J,7<WJ    0 

oo,0'>a,o[K>  0 

100,000,000    0 
g/12i,C02    0 

i.873.airj  10 

11,007,797  21 


I,»i2.f^»4a0  69 


JunD  IS. 


4S:),994yS31  00 

4i4,718  71 

3;t\4e5,3tfl  40 
2»),170,5«J5    fl 

39,AO4,0S6  1.^ 
10,841,0:^0    U 

15,122.000    0 
9,7«8,160    0 

30,510^300    0 
ll),2U0,^0    0 

sn.ioo  0 

430,200    0 

00,000,000    0 

12,9B0.7RO  U 
3(^,&57,IB7  01 

100,000,000    0 


8,380,212    0 

1.803,781  16 
10,773,t«5  43 


Jimo  22. 


497,620,650  43 

611,^7  &2 

SSS.^tiS.tWl  14 
2iW,lJ*7,7iXi    0 

43,23«,2HS  15 
ll,7r»J,>iO    0 

15,320.000    0 
9^H<)fc.35<»    0 

»fy,43«,flt)0    0 
li>,<K3  7,350    0 

000.100    0 
43^,000    0 

00,»»0.000    0 

12,0'«>,75ii  14 
30,5-17,1^7  M 

lOO.QOU.OCiO    0 


8,383,912    0 

2,220.a>2  55 
U,fc*li.55S  33 


1,308,746,024  U  l,3aO,o;iS^S30  47 


-L 


Digiti 


izedbyGoOgk 


k;6 

fluctuations  in  english  and  f( 
railway  shari 


Piice  on 

;  Hii 

May  29. 

English  Funds. 

Consols            

... 

80J  to  Jxd 

90 

Exchequer  Bills 

... 

2  pm 

5 

Foreign  Stocks, 

Brazilian          



< 

Buenos  Ayres 



i 

Chilian            



U 

Dutch  2 J  per  cents.   ... 

— 

( 

Mexican           

24i 

<■ 

Peruvian  4J  per  cents. 

80J 

I 

Russian            

9Gi 

c 

Spanish            

48i 

4 

Turkish  6  per  cents. 

9U 

c 

Ditto  4  per  cents. 

lOOi 

IC 

Railway  Shares. 

Brighton          

106| 

K 

Caledonian       

im 

11 

Great  Eastern 

40^ 

4 

Great  Northern 

131 1 

l: 

Great  Western 

75i 

7 

Lancashire  and  Yorkshire 

122 

1^ 

London  and  North  Western... 

122| 

12 

Midland           

... 

135 

1^ 

North  Staflfordshire  ... 

... 

77| 

8 

South  Eastern 

... 

85i 

8 

South  Western 

... 

98t 

IC 

York,  Newca/*tle,  and  Berwick 

llOJ 

11 

York  and  North  Midland 

«.. 

102i 

10 

East  Indian     

... 

104 

10 

Northern  of  France    ... 

... 

— 

4 

CREDIT,  FINANCE  AND  DISCOl 


Shore. 


LondoTi 
Paid,     l.iftv^t 


I       I-   ' 


AiiBtralian  Mortjrnpe,  Land 

and  Finance  (Lim,) 
Consolidated  Piscouut  CT..im.) 
Contract  Coq^oration  (Lini.) 
CrC'dit  Foncier  of  Muuritiua 

(Limited)      

CrC'dit  Foncier  and  Mobilier 

of  England 

Discou.it  Corporation  (Lim.)     100 
East  India  ^'inancial  ...      60 

E^  vptian  Commercial   and 

Tnidiugr       

En^fliHh  and  Foroiirn  Credit 
Financial  Corporation 
Financial  Di^cnnit  i^l.im.)... 
Gonerul  Credit  and  Finance 

of  London  (Lim.) 

International  Financial 

RiiK'k'iy  iUui,)         20 

I nt<! initi i  .luii  Cl Jiti^ac t        ...      60 


25 

60 

100 

60 

20 


20 
60 

im 

60 
23 


3 
10 
6 


5 

20 


4 
7\ 

2 

10 

ft 
10 


3i 
6 
Ud 

e\ 

13 
3i 

H 

4* 

H 

6i 
7* 


Imperial 

(LUn.)... 
InTernatioi 
Joint  Stocl 
Land  Cred 
Land  So<;u 
London    F 

tion  (Lin 
lAindf>n  Mt 
Mauritius 

Agency  ( 
National  D 
Naliorifd  F 
Oriental  F 
Ottoman  F 

ti.ni  (Lin 
SoeiiHC  Fin 
•  (Lim.)... 
Bontli  Afri< 

Investmc 
Warrant  F 


Digiti 


ized  by  Google 


897 


JOINT-STOCK  BANKS. 


Share 

Paid 

latent 
Pr>c«a 

1 

4 

J 

nd      MaeUrman^s, 

igo 

o<> 

llSi 

r«r  .'"      .'.V     '" 

60 

2.J 

59 

SO 

10 

5i 

Bank    of  T^^ndoa 

orpool,  LimiUNl    ... 

IW 

2ri 

29J 

Uvued  fit»pm. ... 

KW 

30 

24 

9truui  ]|»nk 

20 

0 

^% 

rplian  (Lam,) 

&J 

m 

ti«i(Lim.>  .. 

54> 

lo 

11 

AktzMC  Corporation, 

uutn  iMai-d  ut  415 

vrhicli  £7.  104.  Ij 

♦ 

SO 

21 

7i 

ti9tniLtt4la  ... 

40 

4i> 

75 

K«w 

•If) 

4a 

74 

SSJiL-    :::    ::: 

25 
100 

&) 

31} 
141 

aeftUttliinAl,  Limited 

SfO 

H 

6 

IrW 

ij.^ 

20t 

CftUforoian  {Urn.) 

5)> 

n 

4t 

*»r  Zf»iiland          ,., 

10 

V} 

%17i 

--■  vriii,  Aurttnvlla 

60 

2h 

43 

:    I  LagTtc:^(IJLm.) 

20 

10 

9 

i^l*  Aiueriom     ..* 

60 

6i> 

45xd 

HAnk   of    BritiiOi 

it!      ... 

20 

lo 

m 

I    B»uk    of    InOi* 

laiuid  Chiim 

20 

20 

261 

Mercaatile  Bank 

^  Loudoa  &  CMnm.. 

2S 

2-> 

40 

c 

luo 

CO 

llOi 

*tink 

loo 

a.j 

41 

U(.t  B»nk  of  ConA^lA 

SO 

20 

ml  Bftnk  Qf  Indift 

E*«*            

25 

25 

tmd  Ba&k  (Um.)  .., 

10 

4 

m 

IaI     

im 

2-5 

K«w         

ILO 

ir> 

I-   OJm.) 

fio 

5 

"i 

.ek  (Lira. v.. 

20 

•a 

6 
10 

a^ 

so 

20 

m 

) 

»> 

2<J 

IH 

IK) 

15 

12 

^«Ctiiiia  And  .Iftpant 

4        ,„ 

ino 

26 

20\ 

'    *'^*^Jcdat2piii. 

100 

n 

a>t 

, 

ll»0 

15 

10 

ed)    _        .. 

1«K) 

20 

291 

-t.vuiiiiiimi     j^,       ,., 

20 

10 

164 

•«*       .HI. 

u 

25 

27 

J^«w     „ 

S5 

& 

S 

»n«;iB«Bk.of  tndJa 

so 

4 

H 

Shart.   Paid    lar^ft 
Pctf4;i 


London  Bank  of  Mexico  nnd 

South  America  (Linii':erl) 
London    Bonk    of   ticotlund 

(I^irn.)  

London  and  Brazilian  Bank 
London,  Kuenos  A;\TCd  and 
River  Pliite,  Limited 
Ditto,    New,    i&iued    at 

14  pm 

London  Chartered  of  Au.stralia 
London  and  County  Bank   .. 
London,     lIanil)iirV,     Cont. 

Exchani,'e  (Liin  ) 

London  Joint  Stock  Bank  ... 
London  Jk  South  Alricfm  Bk. 
London  and  South  Western 

(lamit^di      

Ditio,  ditto,    New 

Londonaud  Veuezuchi  (Lim.) 
London  &  Westminsror  Hank 
Merchant  Bank  (Litaitod)  ...^ 
Mercantile  Exchanuro  (Lim.)* 
MetronoUtan  and  I'rovincial 

Bank,  Limited        

Ditto.  New  

MidhiTid  Bank  (Limited)    ... 

National  Bank 

Ditto,  Now  

National  of  Liverpool  (Lim.) 
National  Provincial  Bank  of 

Enirland       

Ditto,  New  

Ditto,  ditto  

Now  South  Wales      

New  Zealand  Bank  Corpora- 
tion (Limited)        

Ditto,    Now     

Northwestern  

Oriental  Bank 

Do.   New,  i.s-sued  at  20  pm. 
Provincia'    Banking   Corpo- 
ration  

Ditto,  ditto 

Provincial  Bank  of  Ireland... 

Ditto  New  

Scinde,  Punjaub  and  Delhi 

(Limited)      ...        

Ditto,  issued  at  2  pm. 

South  Australian       

Standard  of  British  Africa 

i Limited)  
)o.  New,  iflsncd  at  8  pm. 
Union  Bank  of  Australia  ... 
Dnion  Bank  of  Ireland,  Lim. 
Union  Bank  of  London 


60       12i 


100 

13 

0 

100 

40 

45 

100 

40 

51)1 

25 

10 

\2\ 

20 

2i) 

2:1  ltd 

60 

20 

'^1 

100 

13 

50 

15 

m 

20 

20 

19 

100 

20 

»vk 

100 

171 

17  » 

r,o 

12i 

H 

100 

20 

r^ 

100 

25 

m 

50 

10 

7i 

100 

20 

15 

l.K) 

1.1 

11 

100 

20 

IH 

50 

30 

101 

50 

25 

94 

100 

10 

17 

100 

42 

20 

12 

**• 

20 

12 

**• 

20 

20 

\1 

10 

1 

I 

10 

1 

, 

20 

7i 

Hi 

25 

25 

59 

25 

25 

... 

50 

7i 

4| 

50 

10 

7 

10() 

25 

80 

10 

10 

20 

10 

«l 

20 

2 

25 

25 

37 

100 

25 

U 

100 

10 

6 

25 

25 

55 

1(K) 

23 

IS 

60 

15 

63* 

»w-ntT. 


70 


Digitiz^ 


35ank  of  (Cnglantr  zmtt\ 

Aocount,  pursuant  to  tho  Act  7th  anl  Sbh  of  Victoria,  cap.  3 

I8SUK  DKPAHTMEN 


Notes  issued         

ISCm. 
May  31. 

29..''>60.375 

2v 

GovcmineTit  debt           

Other  securities 

Gold  coin  and  bullion 

Bilver  bullion       

ll.Ol.MOl) 
U,9i  9,375 

1 
1- 

2H,r,0!),37o 

2 

BANKING  DEPARTM 

Proprietors' capital       

Rest 

Pnblic    clepoftit«    (Incln.lin!;   Exchfvinpr 

8!ivin!.'s  rinnl.v.  ConuniKsion*  rs  of  National 

T'lht.  iirul  l>ivuUiid  Accouuta) 

Other  Deposits     

Seven  day  and  other  bills      

IftOo. 
May  31. 

£ 

li.'.5M,000 
3.1V0.279 
8,700.8-18 

13,019.  m 
Cll.rkXJ 

1 

40,Ssl,lGl 

Si 

Gxn'ornment     Pocnritics     (including 

Dead  Woitrht  Anuuities)      

Other  Socuritiea 

Notes          

Gold  and  Silver  coin     

ll.i^n.025 

19.s_>n.2U> 

8,«)oS.7s«) 

919,116 

K 
V. 

40,681,161 

3i 

THE  EXCHANG 


Amsterdam,  phort 
Ditto  3  nionthg 
Rotterdam,  ditto... 
A7it\\erp,  r.itto  ... 
Prnssels,  ditto 
Untuburtr,  ditto   ... 

I'aris,  short   

I'avis,  3  months  ... 
Marseilles,  ditto  ... 
I'mnkfoi-t.  ditto  ... 
Vicuna,  ditto 

Trieste,  ditto 

JVtorsbt:rj-h,  ditto 
Madrid,  ditto 

Cadiz,  ditto   

To« horn,  ditto     ... 

Jlilan  ...        

Genoa,  ditto 

^■nples,  ditto 

Palenno,  ditto 
Me.«sina,  ditto      ... 

Li^^ljou 

Oporto 


June  2. 


11 
11 
11 
25 
26 
13 
25 
25 
25 


18 

19i 

19i 

47i 

47i 

22i 

45 

47* 


12(V| 
11  20 
11  20 

31 

47i 

4HJ 

25  f.7i 

25  67^ 


25 
25 
26 
25 


C7i 
60 
60 
60 


61? 
61i 


PHICES  OF  BULLIO] 


Foroicm  Gold  in  Bars  (Standard) 

Mexican  DoIIrtt*  

Silver  in  Barn  (Standard)       I 


Per  Oz. 

P 

£    8.   d. 

£ 

3  17    9 

3 

0    0    0 

0 

0    6    Of 

0 

Digiti 


zed  by  Google 


iifeer0*  mittkly  Cirnilatuin  JUtuntjf* 

e  Act  7  4*  8  Victoria^  e,  32;  extracted  from  the  Londoit  Gazette. 
PRIVATE    BANKS. 


OF  BANK. 


Ai4iijMr- 


IBank.,,, ,1 

Jig^leswade  Bank  ,p.| 
Ilk    *.,,„. .,•„,. I 

|! 

IxforJshlro  Bank   , 
-  Clay  pons  liml  Co.. 

-Gee  and  Cu 

Eank.,.,,,,., ,.,«. 


Sridgnorth  Bunk 

iank.* 

blk  Bank,,.. 


Bank    .„.„„.„ 

jcifjliton  Bu^^ard  Bk,' 
tk,— Lloyda  &  Co,  ,., 

Lnk  *,, „,. 

m  Bank  , 

li  Drilli^Iil  Bank 

tind'fi  Bank. 

k.— Mortlock  &  Co,! 
1  Catnbridgesbiro  BkJ 

ink   „,„ .„.! 

ank  ,•**•*„ .,„. 


nk .„.„, 

i  Eaaex-Bank 

—Tweedy  &  Co.  „. 

k  ,.* »...,.,„. 

tcter „. 

— Alcocks  &  Co,    .., 

Bank  , 

-Measrs.  Evans  &  Co* 

-Sratthand  Co 

mk «. 

t'jkshirti  Bunk    ! 

^k  and  Betford  Bank 

ink   *,...,**... 

mk ...J 

d  Bank     ,.. ..J 

I  Bk.— Rtibins&Co*  , 
Jank — Bower  At  Co.  i 
tiAhop*B  ^tortford  Bk, 


k  „....„•.,., 

iink  .•»....»•...,»••.•. 

ank 

nk 

ilk — Hardv  and  Co. 
Eun-upoO'lluit  Bank, 
["own  &  Coatity  Bank 

«HitchiQ  Bunk    ..... 


£ 

48,461 
37,223 

17,' Si 
34,118 

75,069 
15,161 

26,717 

i9/-'57 

43.457 

38,Si6 

33,794i 

W,745 
3,zoi 

a5r744, 
49,]H6l 

33*671 

23>597 

5»43<> 

z5,o8i 

4«t7C4 
49,369! 
1^,045 

77.154 

9.3*^7 
13,332 
4»o04 
37.^37 
10,^74 
ic»657' 
77.400 
S6,ii8 
10,664 
48,807 
iJ2,z8o 

69,637 

37,^94 
i4,iOA 
6,68 1 
6»3iz 
H,5H 
30,37- 

5>*'78 
3^1764 


AVERAGE  AMOUNT. 


I  z , 046 

22y006 

<7,347 

3.817 

29, 282 

I4,8S8 

73,i»5 
i5»478 
7,738 
19,688 
13,880 
20,12? 
48,202 
:»4,535 
io,775 
33.J^5 
12,3^5 
4*»730 
18, 7^3 
11,966 

3.035 
12,817 

40,074 
28,2*9 
ia.837 

2,738 
18,414 
31,588 
27,5'5 

4,185 
i5»8i7 
76,358 

7,890 
11,366 
36,016 
24,050 

7iiI4 

9.74» 
68,43» 
85,000 

6,153 

37,358 

75i35> 

5'. 938 

38,999 

20,495 

5,846 

5i5i> 

5.48* 

11,598 

27,035 
18,805 
34, 268 
5»222 
34.797 
18,845 


May  13. 

May  20. 

May  27. 

£ 

£ 

£ 

11,904 

11,477 

11,646 

21,755 

21,762 

21,190 

17,384 

17,068 

16,794 

3.7*3 

3,753 

3,457 

27,4'-'4 

26,615 

26,163 

<5»»75 

14,731 

14, 168 

77,695 

72,320 

71,564 

15,675 

14,4»7 

13,837 

7,764 

7,154 

6,834 

19,412 

19,642 

18,240 

14,040 

13,775 

13.894 

20,070 

19,299 

19,132 

48,59* 

47,604 

47,417 

24.195 

23,995 

24,012 

20,288 

20,214 

20,448 

33*396 

33,553 

33,871 

8,37* 

6,390 

5.207 

44>337 

43,587 

44,440 

18,711 

l8,7^5 

17,986 

11,449 

12,439 

11,570 

2,891 

2,885 

2,884 

12,731 

12,225 

12,092 

39,84* 

40,136 

40,767 

26,520 

26,001 

25,908 

13,858 

14,133 

15,052 

2,617 

2,786 

3,096 

20,119 

1^,925 

18,468 

31,055 

30,212 

30,263 

27,262 

26,681 

26,628 

3,920 

4,218 

3,984 

15,852 

15,747 

15,370 

75,630 

74,*75 

72.087 

7,122 

6.544 

6,565 

10,866 

10,292 

9,901 

33.797 

3-,5'7 

32.703 

25>829 

26,4+0 

25,200 

7,015 

6,562 

6,360 

9,954 

10,140 

io,3>9 

66,825 

66,562 

66,161 

88,?67 

83.898 

79,777 

5.645 

6,249 

6,566 

37,455 

38,268 

37,204 

75,918 

75,358 

74,458 

51,375 

52,049 

5«,75i 

38,619 

38,505 

38,030 

19,729 

19,3^8 

19,260 

5,562 

5.757 

5,863 

5,797 

5,532 

5,699 

5,320 

4,875 

4,845 

12,756 

11,904 

ii,5»5 

27,997 

28,437 

26,102 

18,745 

18,147 

17,890 

34.636 

33.543 

33,359 

5,130 

4,708 

4,754 

33.912 

33,033 

32,567- 

18,309 

17,965 

17,676 

Digitiz 


900 


WEEKLY    RETURNS    OF    BANRS 


KAilE  OF  B.VNK. 


Author- 
ized 
Issue. 


I 

I         I 


«;7  Ipswich  Si  Nccdbani  Mil rkct  Bank 

58  Kentish  Uaiik — Mercer  &  Co.   ... 

59  Kir.'^ton  and  Kadnorshiro-Uaitk... 

60  Kiuucshovou^h  Old  Bank  

61  Kendal  Bank     

6z  Lon-inn  StatTordshire  Bank 

63  Leeds  B.mk  

04  Leeds  Union  Bank  

6^  Leicesier  Bank 

*»6  Lewes  Old  Bank  'I 

67  Lincoln  Bank  1 

i'8  Llandovery  BankcS:  LlandiloBunU  i 

^^9  Louixhboronuh  Bank   ') 

70  liVniiiiLrton  Bank | 

7*  Lynn  lie*; is  and  LincolnshireBank  < 
'2  Lvnn  Uejrisand  Norfolk  Bank  ... 

73  Maecleslield  Hank    

74  Manninixtree  Bank    

75  M 'rionelhshirc  Bank    

76  Miners'  Bank    

77  M  JMnioutlishire  Ajrricultural  and 

Comniercinl  Bank 

78  :\r..nn)()uiii  Old  Bank  

79  New-ark  Bank   

i<o  Newark  and  Sleatord  Bank    

>^\   Newbury  Bink 

8*  Newmarket  B.mk 

83  Norwicli  Crown  Bank  and  Norfolk 

and  SiilVolk  Bank  

84  Norwich  and  Norfolk  Bank    .., 
8<  Nottinjliam  &  XotliniibaniFh.Bk. 

86  Navil  Bank,  Plynionth   , 

87  NewSarnni  Bk. — rinckney8,Bros. 

88  Nottinjrbam  Bank    

89  Oswestrv  Uank     

90  Oxford  Olil  Bank 

91  Old  Bank.  Tonbrid-e 

92  Oxfordshire  Wilnev  Bank 

93  rease\s()!d  Bank,  Hull 

94  Penzance  Bank     

95  Pe'iihrokeshire  Bank    

96  Ke.idinjiB  mk — Simonds  &Co.... 

97  K?ndin;,'  I5k.— Stonbens.niandy&Co.  | 

98  luclinKnid  Bank,  Ytakshire    ,., 

99  liOeh(lale  Bank    

100  ]{oyston  Ihink  

101  Bn«ihv  Bank 

IC2  IJye  Bank 

IC3  Palhon  WnUlcn  &NonhEsscxBk. 

IC4  Salop  Bnnk  

105  Scarbovonixh  Old  Bank    

10^  Slircwsbnry  Old  I^ank 

107  Sirfipirb  )nr?ic  .'ind  ^lilfon  Bank  . 
ir«  Sontliani]>ton  'i'own  &  County  Bk 

109   SonjJiwell  l^jnik    ! 

lie  Soi'tlianmton  and  llanip.sbire  Bk. 

111  SradMrdOM  Bnnk   

112  StjjTuford  mui  l»nti:nid  l^mk 

11:   S)lve^^^llm•^  ^ind  Wclbb  Pool  Bank 

114   'J'attnton  Bank..  

1'5  Tavi^^t(»ek  liank I 


£ 

80,699 

*  9.^95 

26,05c 

11,825 

44,663 

5,624 

53,357 

57,459 

3^,312 

44,836 

100,342 

3^,945 

7,359 

5,0^8 

42,8*1 7 

i<;,76c 

7,692 

10,906 

i8,6»b 

29,3^5 

i6,^.8c 

28,788 
i;i,6i^ 
36,787 
23,098 

49,671 
105,519 
10,86(' 
2  7,;2i 
'5,659 
3 ',047 
18,471 
34,391 
I3,»83 
11,852 
48,807 
11,405 
12,91c 
37,5 » 9 

4?. 271 
6,889 
5,59c 

» 6,393 
17.250 
29. ^^'4 
4.7.646 
22,338 
24,813 
43,191 
/'.7>^9 
18,5891 
14.74-;  I 

14,166  I 
31,858' 

25,3  J6i 

29,799  i 
»3.42i  i 


Digitized  by  LjOOQIC 


WEEKLY   RETURNS   OF   BANKS   OF    ISSUE. 


901 


E  OF  BANK. 


Bank | 

1(1  Devonshire  Bank... 

and  Kettering  Bank..' 
c  and  Cheshani  Bank..! 

Old  Bank   i 

k,  Cornwall   ' 

)ld  Bank     I 

d  Bank    

id  Warwickshire  Bank 

Bank,  Somerset  i 

ig  Bank  ' 

d  Bank    j 

;  Alresford  &  AltonBk. 

Old  Bank 

1  and  Derbyshire  Bk.  i 
ind  Lincolnshire  Bank 

ibe  Bank ' 

Old  Bank  ' 

i.Bk.— K.  &  W.f^ryeri 

and  Suffolk  Bank ' 

Norfolk,  &  Suffolk  Bk. 


Author- i 
i?ed 
IhKue, 


£ 
io,oz6 
13,470  I 
"»559 
>3,53i 
10,801 
17,003 
»5,U6 
17,064 

30.504 

46,1581 
14,258  I 

25,89* 
1 6,46 1 
37,602 

59.713 
7,602 
87,448 
11,867 
53,06c 
»3,2*9 
46,387 

JOINT  STOCK 

istmorland  

nking  Company    

inking  Company    

rict  Banking  Company 

litehaven 

immcrcial  Banking  Co. 
)xeter,and  Staffordshire 

lankinir  Co.     ,. 

&  N.Derbysh  Bk.  Co. 
I  Union  Hanking  Co  ... 
d  Warwickshire  Bk.  Co. 
tiion  Banking  Company 
Gloucester  Bankinj.^  Co. 
uniberland  BankingCo. 
r  and  District  Bank  ... 
ITcst  Bromwich  Bk.  Co. 
)erby8hire  BankingCo. 
Dist.'jointStockBk.Co. 
lire  Banking  Company 

nt  Stock  Bank 

d  Banking  Company... 

ig  Company    

nmercial  Banking  Ca.. 
liitldcrsfield  Union  Bk. 

iking  "Company 

uj;}i  and  Olaro  Bk.  Co. 

imiking  Company  

,re  naiiikinf:  Company... 
J  XiiulM,y  BankingCo.. 
I  Priors  and  Warwick- 

anking  Co 

I  Teul'tiry  Bank 

abini^tJitVKott*.  Hank... 
land  NdTfft. BankingCo. 
ov  iiu' in  Hi  k.  of  England 
s  Bunking  Company 


AVERAGE  AMOUNT. 


May  6. 


£ 

9,»93 
11,302 
ii,6c8 
12.885 

6,000 

14,153 
8,282 

5^397 

17,442 

2,084 

42.725 
13,837 

9,810 
16,093 
36.792 
40.440 

3,320 
46,  f'iO 

7,231 

37,295 
8,502 

42i5*7 


May  13.      May  20.  I    May  27. 


£ 

9,060 
10,423 
11,437 

I2,8cO 

6,239 
14,203 
8,235 

5,399 
18,018 

1,838 
41.758 
14,009 

9,9»9 
15,319 
3^.043 
39,9C5 

3»7o8 

45,291 

7,529 

35.886 

9,015 
42,612 


£ 

X 

8,896 

7,873 

9,799 

9.812 

11,085 

11,615 

12,470 

12,802 

6,018 

6,286 

13,308 

13,088 

8,329 

7.702 

5.425 

5,225 

17,756 

17.092 

1.664 

1,713 

40.9S8 

39,361 

14,068 

13.711 

9,690 

9,402 

15.919 

15.897 

36,006 

35,843 

39,176 

37,i>33 

4,755 

4,466 

45.136 

44,098 

7,275 

6,916 

36,236 

35.709 

8,784 

«>,175 

41.546 

41,082 

BANKS. 


12,225 

12,015 

11,887 

".951 

9-563 

9,419 

%.i97 

9,215 

49.292 

48,362 

4«,523 

48,409 

9,418 

7,co7 

7.762 

7.695 

32,681 

3>,208 

30,423 

29.973 

20,084 

19,774 

19,93* 

20,222 

60,701 

59,395 

58.184 

56,950 

10,42) 

9.450 

9.634 

9.9f'5 

35,395 

34,950 

34,256 

34,725 

2^734 

14,593 

14.395 

14.030 

16,251 

11,985 

11,253 

12,277 

'44,352 

103, 9>o 

101,026 

99.194 

25,61c 

27,115 

27,225 

26,022 

19,972 

19,991 

19,884 

19,541 

37,696 

22.963 

22,928 

23.843 

20,093 

19,038 

18,967 

i8,6c7 

26,134 

29.513 

28,868 

24,685 

K^,92C 

140,966 

142.509 

143,801 

1^,534 

16,562 

16,941 

16,910 

37,354 

33,299 

32,784 

32,834 

29.333 

26,736 

28,594 

29,625 

13.733 

13,700 

13,668 

13.500 

44.137 

34.973 

35.088 

34.896 

1,503 

1,528 

1,462 

1.535 

28,059 

28.53V 

27.163 

26,380 

64,311 

65,876 

61.575 

60,194 

86,060 

71,345 

71,075 

68,547 

51,620 

53.686 

54.984 

51.408 

13,875 

10, 280 

9.676 

9,681 

10,215 

1     9,732 

9,425 

9,483 

3.5,813 

;  27,683 

28,198 

26,754 

1  29,477 

29,322 

28,192 

28.620 

442,37« 

426,069 

429,830 

433-»ii 

63,939 

43,530 

44,139 

42.898 

11,690 

9,018 

47,244 

7,973 
29.869 
20,048 

53,893 

9,459 
34,649 
13,926 

12,1C6 

97,405 
21,707 
19.923 

24,3'8 
18,208 
21,120 
138.685 
16,477 
32,041 
29,698 
13.0C0 
33.255 
1,458 
26,320 
59.067 
63,201 
43.833 

9,533 

8,830 

25,601 

27,220 

424,433 

39,364 


Digitized  by 


m 


:  u  J>' 


902 


WEEKLY    RETURNS   OF   BANKS   Ol 


NAME  OP  BANK. 


35  Northamptonsliire  Union  Bank   .. 

36  Northamptonshire  Banking:  Co.  „ 

37  North  and  South  Wales  P/ank....! 

38  Fare's  Lciccstersliire  Banking  Co.. 

39  Saddlcworth  Banking  Company  .. 

40  Shcflield  Banking  Company 

41  Stamford.SpaUling&BostonBk.Co' 

42  Stuckey's  Banking  Company    .. 

43  Stiropshire  Banking  Company 

44  Stourbridge  and  Kidderminster  Bk. 

45  Shcflield  and  Hallamshirc  Bank  ... 

46  Shetheld  &Kotherham  Jt.StockBk. 

47  Swaledale  and  Wenslevdale  Bank.. 

48  Wolverhampton  &  StalVordsh.  Bk.. 

49  Wakefield  and  Barnsley  Union  Bk. 

50  Whitehaven  Joint  Stock  Bank     ... 

51  W^arwick  and  Leamington  Bk.  Co. 

52  WestofEug.&S.WaU-sDistrictBk. 

53  Wilts  &  Dorset  Banking  Companv 

54  West  Riding  Union  Banking  Co.... 

55  WHiitchurch  and  Ellesmere  Bk.  Co. 

56  Worcester  City  and  County  Bk,  Co. 

57  York  Union  Banking  Company  ... 
^S  York  City  and  County  Banking  Co. 
59  Yorkshire  Banking  Company | 

\\ 


Anthor- 

ized 

Ibisue. 


'  84.35^'! 

I  2t,40'| 

!    63,95^1 

i    59.300 

'  35.843; 

:  55.711 
356,976' 
1  47,9511 
!  5M30, 
,  23,5i4 
,  52,496 
!  54,372! 
I  35,3781 
I  14,604! 
31,916^ 
,  37.124 

!  76,162 

34,029! 
7,475 ' 

6,848  j 

94,695 
122,532 


May  6. 


£ 
67, 100 

io,737 
62, 113 
54»8co 
335 
37,711 

52,795 
325,859 

37,545 
51,139 
23,074 
53.931 
53,248 
21,610 

>4,564 

26,040 

*6,337 
79,206 

74,  VI 

32,538 

5,896 

6,686 

70, 150 

89,096 

113,922 


Jrisifj  anlr  ^rotrf)  Cirnilatioi 

Average  Circulation,  and  Coin  held  by  the  Irtsu  and  Sc 
weeks  ending  Saturday,  the  27  th  day  of. 

, _^  IRISH    BANKS. 


NAMS  OF  BANK. 


I  Authorized 
Ij  CireulAtioD. 


Bank  of  Ireland (3  7,^   .^8 

Frovincial  Bank  of  Xreiami,,'  '927;667 

Belfast  Bank   Ij  U[]e^{ 

Northern  Bank  '  2^,    .^o 

Ulster  Bank ::::.: I  IVi'X 

The  National  Bank...;!.'".'".*;]  8fi\  269 
Totals  (Irish  Banks)        ' 


Average  Circulatior 


Jtb  find 
upward*. 


Undc 


Bank  of  Scotland   ,1     wo  aSk 


1,598,200  r,020 

398,338     457 

123,214   290 
104,145   253 

■65,5*0        296 

. :    _6_63.i^6  I     559 

■|6, 354,49413,052,761   (2,677 

SCOTCH    BANKS 


Royal  Bank  of  Scotland    ... 

British  Linen  Company 

Commercial  Bk.  of  Scotland 

National  Bank  of  Scotland.. 

Union  Bank  of  Scotland  ... 
Aberdeen  Town  and  Co.  Bk. 
North  of  Scotland  Bk.  Co... I 
Clydesdale  Banking  Co.   ...' 

City  of  GlasnrowBank  ' 

Calcdoni.in  Bankinjr  Co.   .. 

Central  Bank  of  Scotland.. 

Totals  (Scotch  Banks).. 


16,451 
438,024 
374.88c' 
297,024 
454,346 

70, lii 

154,319 
274,321 

72,921 
42,933 


188,016 

2'8,537 

>95,453 
201,836 

177, 55» 

202,096 

72,247 

iji,828 

■48.133 

126, 7Z3 

26,312 

27,183 


34»; 

362, 

328, 
370, 
312, 
3^5, 
«3, 
117, 
250, 

239, 

49, 
38, 


12,749. 271  ((i,7i5»9»5  !2,8'8"i7« 

Digitized  by  VjOOQIC 


CIRCULATION   RETURNS. 


903 


8UMMAEY  OF  WEEKLY  RETURNS  OP  BANM   OP  ISSUE 

Fixed  Issues.        May  6.      I     May  13.  May  20.  May  '17. 

£4,189.091   £3«042,4.42  i£3,035,98i   £2,994,894  £2,9^8.868 
3,2i6,357      2,915.35' I   ^.907,5»9     2,881,892      2,786,716 


Private  Banks 

Joint-Stock  Banks 


Totnl? 


7,415.443      5.9:7.799  1   5.943,5oo  I   5.87^,786 


5»7i5i5S4 


m$*  Weekly  Circalfttioo  of  these  Bimka  for 
Emth  BmliBg^  Mny  27lli  :-^ 

»B«aJcs      »«        « £l,<i4<w,!jt(J 

BlO«ikB*tika         2,xl7,H71 


p}  W«olcly  Cii^rnlatlon  of  PriTat43 
Joiafc-Stock  Baiitai  ending  a^ 

r* fifj.SWjn 

I  coTnpariAOTt  of  the  above  with  the  Returtia 
)  moiith  cDdm*;  ApriJ  23  th  ln«tp  itHhowa  3— 
T*a*€  in  tbo  notes  of   Private 
fcfl.  of,.        ...        ...        ...         ..       £3D,9da 

*#««  in  the  notes  of  Jouit-Stock 

Jr*,of,„         „.         ...        ...        ...  4H,na0 


\X  d*tna*0  on  tho  month.. 


i^6S,021 


And   as  compared  with  the  month  ending 
JtTiy  28th,  18W,  it  eho^s  :— 
A  dfcrea$e  in  the  notea  of   Private 

Batiks,  of £217,B73 

Affr^rfcue  in  the  notes  of  Joint- Stock 

Oiinks,  of 1 K755 

Ti  .tfll  decrease,  as  compared  with  the 

51^ I Tno  period  of  last  year       ii'li\fi^4!'m 

Tlie  following  is  the  com])arative  state  of  tho 

ei  I  lilation  as  regards  the  fixed  issues : — 

Ti]»'    Private   Banks   are  below  their 
n-xl  issues         "^Iplsa^S^G 

TliE:*  Joint-Stock  Banks  are  below  their 
ibLed  issues        ^       ...      979,  ISO 

Total  BBLOW  their  fixed  issues       ...  £1;&|>7,0U1 


SUMMAKY  OF  IRISH  &  SCOTCH  RETURNS  TO  MAY  27,  186&. 


Retains  of  Circulation  of  the  Imh  and 
I  Banks  for  tho  four  we*ks  ending  May 
rten  added  tr>Retber.  give  tho  full.jwtng  as 
reni|j^  weekly  circultttion  of  the^e  D&nlu 
r  *bo  past  month,  yve., : 
(•CirBnlfltlonorthelmh  Bank*  £^.aK),44<l 
f6 ClrDnJatLoa  of  the  Sootcli  Banks  i,  tam,&oI 

iTcragreCirciilatfon  of  those  banks 

ka  past  month    ,..,U  10,527,400 

Knnporing  Vtic^  nmoontawith  the  Returns 
laonUi  omlin+r  29th  April  ht^t,  they  attow— 
^intbeCircul»tiQnoffrij4h  UunkA  £'72,352 
kseiatbeCirculutionof  SootchBankjft  Vko.rm 


il  buxreaso  on  the  month    ,.,.^ 


i^lB.W 


i  as  entnpared  with  tiis  month  ending 
9Ui,mR|,  tSieyshow- 
weintheCircJiilationofTrUhBanks  JClSS.esi 
•o^utttieCirciihitionofSoQtchBankft  til,4U 

J  inGTMssoQtheyeSkr £20a,ao3 


Tha  fixed  issues  of  the  Irish  and  Scotcli  Brrnks 
St  the  present  time  are  given  in  the  BanHn^ 
Almanne,  as  follows: — 

«  Banksinlreland.allowcdtoissne...  £6,v^"»i,i9* 
12  Banks  in  Scotland,  allowed  to  issue     2,7l^>,271 


1  s  Banks  in  all,  allowed  to  issue  £9,1  iy\7Q5 

The  following  appears,  therefore,  to  ha  tho 
CTunparative  state  of  the  circulation : — 
Irish  Banks  are  below  their  fixed  issue     £I2(.0|£ 
B  LDt  i:h  Bonks  are  above  their  fixed  issue  I  ,H  17  ,<W0 


Total  above  the  fixed  issue £1,  ir^,  1)35 

The  amounts  of  Gold  and  Silver  held  iit  the 
head  oflScesof  the  several  banks,  during  the  past 
nuMiih,  have  been  as  follows  :— 
Gold  and  Silverheld  by  the  Irish  Banks  £2,lOt.»l0 
Gold  and  Silver  heldbythe  ScotchBanks  2,49'] ,  im 


Total  of  Gold  and  Silver  Coin £4,(Uii>.014 

Being  a  decrease  of  £19,062  on  the  part  of  the 
Irish  Banks,  and  an  increase  of  £177,030  on  tho 
purt  of  the  Scotch  Banks,  on  the  several  aniuimia 
netd  by  them  during  the  preceding  month. 


CIRCULATION  OF  THE  UNITED  lONGDOM  TO  MAY  27,  1865. 

1*9  fntiowing  is  the  state  of  the  Note  CircuhitiQii  of  the  United  Kingdom  for  the  month  ending 

ih  Mjiy,  im$  :— 

sttou  of  Kotee  for  the  Month  ouding  27th  May,  as  compared  with  the  previous  month  :— 

Of  Sofldftiid  (month  ending  May  24) 
ifid ,,  _  „.  .  . 

^ ..:::..i .:::::"''::::::::: : 


April  20. 
£21,  ()5 1, 6  70 

May  27. 
£21,251,647 
3.000.546 
2,847,871 

Increase. 
199,977 

Decrcfii?a. 

4s,LWtt 

M,9as.oii 

6,858,007 

27,099,964 
4.696,951 
6,930,419 

199,977 
416,796 
72,362 

83,034 

iSM,997,SSI 

£37,627,364 

£718,124 

88.024 

nsrifiOD  of  the  month  endinx  May  S^th,  1864,  with  the  month  ending  May  27th,  1S06« 

r^rtf  la  the  Bank  nf  £nglaij4  cirenbition  of  £331,687,  a  decrease   in    Private  Banks  ot 

I'ffiut  in  Joint-Stock  Bankh'  ;  lioingatotal  decrease  in  England  of  i^,  741 ; 

1  there   in  «ul  incrt^te*:  01  l4  in  Ireland  an  increase  of  £138,961,    Thus 

laiith  endin};  27th  Miiy,  \  ^vith  the  same  period  last  year,  prosonts  % 

.'1  in  the  United  Kingdom, 
;V»r   the  month   ending    May  24th,  gives  an 
On  a  comparison  of  this  wi^  the  Betnni  for 
Pptu«  to  bo  u  tit  crease  of  £14,090;  and  an  increase  of  £l,fi:tl^0|}9 
t  yoftr. 
j  tanks  in  Scotland  and  Ireland  during  the  month  ending  27tli 
''^'/^■'*^V*ll;  bciiii;  au  i>jTfi>w  of  4157,04)^  as  compared  with  the  Return  of  the  piOTloai 
"i*  iLd  an  i^creas*  of  J^09,^^  iis  compared  with  the  corresponding  period  hist  year. 


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W»Urlow  and  Son*,  Prlatora,  CarpsnUnr  Ha] 

Digitized  by  LjOOQIC 


PHE  BANKERS'  MAGAZINE, 

AND 


AUGUST,  1865. 


OYEEEND,  GURNEY  AND  CO.,  LIMITED. 

IK  transformation  of  Overend,  Gumey  and  Co/s  far-famed 
\count  establishment  into  a  joint-stock  company,  marka 
otlicr  era  in  the  historj^  of  limited  liability.  The  progress  of 
a  lately  naturalised  principle  towards  universal  adoption  has 
leed  been  little  short  of  marvellous.  Only  four  years  ago  it 
Ls  introduced  to  the  commercial  world  as  a  doubtful  experi- 
mt.  Its  failure  waa  prophesied  by  enemies,  numerous  and 
nfident,  and  its  most  earnest  advocates  did  not  venture  to  an- 
ipatc  for  it  more  than  a  qualified  success.  That  "limited  '* 
iieems  might,  perhaps,  be  able  to  hold  their  own  in  competition 
th  private  firms  and  companies  with  unrestricted  partnership 
sponsibilities,  was  what  only  a  few  very  sanguine  spirits 
ntured  to  hope.  A  formidable  band  of  financial  magnates 
rayed  themselves  against  it,  and,  with  few  exceptions,  the 
presentatives  of  the  money^  interest  looked  upon  it  with 
iconcealed  dislike  and  apprehension ;  and  yet,  so  completely 
L5  the  experiment  succeeded,  that  all  these  vaticinations  have 
i^^ady  passed  out  of  memory.  Limited  liability  is  the  one 
rand  resource  of  every  one  with  a  business  to  sell,  an  idea  to 
5vclop,  a  trade  to  create,  or  a  fortime-making  scheme  to  pro- 
I .  From  £100,000,000  in  1863,  the  limited  liability  com- 
-  rose  to  over  £188,000,000  in  1864,  and  during  the  present 
ciir  they  have  gone  on  increasing  at  a  still  more  rapid  rate. 
iike  the  fabled  Sphynx,  limited  Hability  threatens  to  devour 
verything  that  cannot  fulfil  its  conditions ;  or,  to  change  the 
■  t  it  may  be  regarded  as  a  tree  which  has  had  no  sapling 
b,  but  naa  passed  at  once  from  the  condition  of  a  tender 

VOL.  XXV.  71 


DigitizecjgGoOgle  _ 


906  Overendy  Gurnet/  atw 

I  and  fragile  shoot  to  that  of  a  sturdy  an 

of  the  forest.     Not  only  has  it  taken  ro 

•  has  sent  out  its  feeders  deep  and  wide  i: 

rounding  soil.  Not  only  has  it  raised  i 
its  branches  fur  and  near,  and  has  bom 
an  extent  that,  before  long,  half  the  pre 
be  borne  upon  it. 

It  may  be  taken  as  a  conclusive  proo 
principle,  that,  within  so  short  a  period, 
bitter  opponents  into  fast  friends  and  ( 
benefits  they  had  once  decried.  Our 
how  coolly  it  was  looked  upon  by  the  b; 
many  thought  that  public  confidence  c( 
establishments  whose  every  shareholder 
which  actually  overtook  the  unfortun 
Hoyal  British,  the  Northumberland  am 
Western  of  Scotland,  and  sundry  othc 
porations.  When  the  •  directors  of  t] 
resolved  to  reconstitute  their  compan 
there  were  many  who  shook  their  hei 
coming  of  some  great  disaster  to  the  bol 
course  so  unusual,  and  when  one  or  t 
followed  suit,  the  course  they  took  was  w 
and  no  little  astonishment. 

A  glance  down  the  share  list  will  she 
these  apprehensions.  The  share  list  : 
Masterman's,  a  "  limited  '*  establishme 
private  bank  with  a  joint-stock  concern  o 
The  Albion  Bank  has  swallowed  up  the 
ChaUis,  and  the  London  and  Westmlnste 
Co.  It  is  true  that  in  this  last  instance,  1 
the  old  footing,  but  it  is  well  known  i 
Loyd  and  Co.  with  the  London  and  Wes 
the  merging  of  Ilankey's  and  Kennard' 
Consolidated  Bank,  Limited.  Going  in 
among  many  others,  that  Loyd,  Entwisl 
have  gone  into  one  limited  company,  an 
mingham  into  another.  Bamed's  of  Li 
:  in  its  new  dress,  while  in  the  small  to 

Stock  Bank  has  absorbed  concerns  < 
credit  and  respectability  as  Days,  of 
ilargate ;  Deedes,  of  Canterbury ;  and 
After  the  successful  adoption  of  th< 
estabhshments  of  long  established  re 
i  ..  prising  to  find  an  increasing  dispositi< 

It  -  , 


I 


\mik^ 


Digiti 


ized  by  Google 


OcfremU  Guniey  and  Co. 


907 


commercial  enterprise.    Already,  we  have  almost 

manufLicturiiLg  business  conducted  by  limited 
me  of  our  lurj^est  sliip-building  and  engineer- 
passed  from  I  lie  hands  of  private  firms.  Three 
t  corporations  are  competing  for  business  which 
sen  in  tlic  hands  of  commercial  mammoths, 
conveyance  companies,  limited,  are  numerous. 
>iis  on  tho  new  principle  have  sunk  iron  mines 
[ck  '*  oil  wells  in  Trinidad,  planted  tea  in  Assam, 
t  Canada  ;is  a  field  for  investment.      Limited 

undertaken  to  teach  the  Eg}^tians  the  prin- 
erce.  and  the  Russians  the  practice  of  ship- 
3n-workin!>  ;  to  improve  South  American  cities, 
as-works  at  the  antiiDodes.  Of  financial  com- 
notliinj;,  as  tliey  may  be  called  the  creatures 
ability  lias  called  into  existence,  but  if  we  may 
e:^,  we  are  as  yet  only  at  the  beginning  of  the 
I  all  that  limited  liability  has  done  is  but  an 
it  is  destined  to  do. 

(  wc  Imve  already  enumerated,  many  ha\'e  always 
:  peculiarly  within  the  province  of  joint-stock 
I  with  them  recent  legislation  has  wrought  no 
?r  change  tliim  has  been  effected  by  diminishing 

individual  speculator.  But  it  had  become  a 
ird  some  branches  of  commerce  as  fitted  only 
jrs.  Companies,  it  was  said,  could  only  manu- 
ully  when  they  went  into  those  exceptional 
hicii  requii-ed  capital  beyond  individual  means. 
Gned  to  merc^  bujing  and  selling,  we  were  told 

never  compete  with  concerns  of  which  some 
man  of  business  was  the  head.  But  though, 
ere  is  an  ap|X'arance  of  plausibility  in  all  this, 
les  that  it  is  an  appearance  only.  The  shares 
Bet  Warehouse  stand  at  a  premium  of  70  per 
CSS  has  brought  competitors  of  the  company 
eld  already,  and  others,  we  believe,  will  appear 
^,  Some  of  our  most  celebrated  printing  and 
bHshmcnts  arc  now  doing  business  as  limited 
multiplication  of  hotels  owned  by  similar  organi- 
:emplification  of  the  principle  which  has  tended 
*  towns*  and  which  promises  greatly  to  benefit 
mting  public.  Only  the  other  day,  three  first 
lents  coalesced  that  they  might  carry  on  the 
chants  in  conjunction  with  £100  shareholders. 
ve  the  latest,  nnd  probably  the  greatest  triumph 


908  Ocerendj  Gurnet/  and 

which  limited  liability  has  yet  achieved,  i 

the  Messrs.  Gumey  have  followed  the  e 

extensive  establishment  into  a  similar 

and  Co.,  Ibnited,  will  henceforth  be  a  si 

official  lists,  side  by  side  with  the  Conso 

the  National,  and  other  discomit  establis 

any  claim  to  the  gift  of  prophecy,  we  m 

that  the  position  of  the  new  company  t 

as  the  standing  of  the  house  to  whose  buf 

is  indeed  one  feature  in   the  prospectu 

room  for  great  difference  of  opinion.     1 

of  half  a  million  for  the  goodwill  of  the 

seen  that  this  sum  amounts  to  one-third 

is  proposed  to  call  up  at  present,  so  th 

of  future  profits  will  be  absorbed  in  pajH 

which  has  ceased  to  be  actively  produd 

however,  that  the  consideration  is  exc 

simie  that  the  eminent  gentlemen  who  ( 

of  the  board,  have  carefully  calculated  t 

bupng.     It  is  said  that  the  sum  fixed 

profits  realised  during  the  last  three  j 

also  that  the  house  has  always  possei 

and  that   its   connexions   have  been 

character,  the  wealth  of  the  Gumeys 

a  proverb.      Under  these  circumstance 

not  be  too  large  a  sum  for  the  vendors 

ever,  is  a  question  of  detail  which  intei 

settle  for  themselves,  and  into  which 

enter  minutely.     The  great  fact  remai 

which  the  modem  practice  of  mercant 

first  carried  to  a  great  pitch  of  success, 

abandon  its  old  traditions.     Not  even  th 

as  Jones,  Loyd,  or  Loyd  Brothers,   o 

has  been  proof  against  the  inducements 

which  limited  liability  holds  out.     In  s< 

the  transition  may  awaken  a  sen  time 

whole,  every  one  has  reason  to  be  gratii 

members  of  the  firm,  if  they  lose  some 

good  deal  in  pocket,  and  somctliing  also 

ciivii^ioii  of  tlioir  rcj^pon^ifiilitT.  ospeciaJ 

diihculty.     T<*  fk'po??itors  iiiid  di^eounte] 

an  Mil  Mintage  tu  h;ive  the  unpaid  capita 

holtlcr^,  iis  li  jiracticidly  ini*xlraustible  re 

And  to  tho  ]jolitJcal  ecunomist  it  is  a  so 

sec  the  ma?>$  of  smaU  capituUsts  adniittc 


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The  New  Law  of  JPartnership. 


909 


;  profits  which  result  from  great  commercial  midertakings. 
few  years  ago,  it  seemed  as  if  all  who  lived  by  trade  would 
ve  to  separate  into  two  classes — the  large  capitalists  and 
ir  employes.  The  small  trader,  who,  in  the  days  of  our  fore- 
hers  began  with  a  few  hundreds,  or  as  many  thousands,  was 
danger  of  being  improved  off  the  face  of  the  earth.  Like  tlie 
:ty  German  princes,  he  was  to  lose  the  advantage  of  a  separate 
Btence,  and  to  become  the  paid  servant  of  some  commercial 
iathan,  who  ground  his  gold  out  of  other  people's  boneg. 
is  tendency  to  make  the  rich  richer  and  the  poor  poorer,  has, 
are  glad  to  say,  received  a  check.  By  joint-stock  associa- 
as  with  limited  liability,  every  one  who  has  a  few  pounds  to 
rest  can  become  a  partner  in  some  great  trading  concern, 
at  after  making  great  allowance  for  errors,  failures,  and  frauds, 
5  system  works  well  for  the  shareholders,  every  one  knows  ; 
i  the  conversion  of  Ghimey  and  Overend*s  business  into  a 
operation  on  the  new  principle,  is  only  an  additional  lUustra- 
n  of  its  soundness,  and  of  the  confidence  with  which  it  may 
regarded  by  every  class  of  investors. 


THE  NEW  LAW  OF  PARTNERSHIP. 
IE  Act  to  amend  the  Law  of  Partnership,  can  hardly  be 
nsidered  as  a  triumph  of  commercial  legislation.  Its  enact- 
mt  may  be  considered  as  yet  another  tribute  to  the  power  of 
aited  liability ;  a  principle  which  has  already  done  much  to 
cilitate  commercial  oi)erations,  and  to  bring  a  share  of  the 
ofits  of  trade  within  the  reach  of  every  man.  The  success  of 
^nipanies  formed  upon  this  basis,  has  been  so  decided  as  to 
v'aken  a  desire  for  private  partnerships  of  a  similar  character, 
to  which  traders  might  enter  without  making  their  entire 
roperty  liable  for  the  debts  of  the  firm ;  and  to  this  feeling  we 
ve  the  present  measure,  which  attempts,  but  not  very  satis- 
tctorily  attempts,  to  supply  the  desideratum. 
We  are  far  urom  saying  that  joint-stock  companies  are  the 
^y  commercial  organizations  to  which  limited  liability  can 
roperly  be  applied.  On  the  contrary,  we  believe  that  it  may 
ery  advantageously  be  adopted  in  ordinary  trading  concerns, 
nd  that  the  opposite  rule  has,  in  some  instances,  been  pushed 
ather  too  far.  Perhaps  we  ought  to  be  thankful  for  the  new 
^ct  as  the  first  step  in  the  right  direction,  but,  nevertheless,  we 
^Tist  confess  that  we  cannot  regard  it  without  grave  dissatisfac- 
ion.    It  is  a  piece  of  legislative  patchwork;  an  experiment 


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The  New  Law  of  Partners 


I 


whose  success  is  more  than  doubtful ;  a 

persons,  who  up  to  this  time  would  ha^ 

contemplation  of    law,    at    the   expense 

remain  or   become  creditors    in  fact.      ' 

pro\d8ion    whatever    for   enabling    a  ere 

between  a  limited  and  an  unlimited  cone 

or  more  persons  interested  in  the  same 

is  responsible  only  for  what  he  has  adva 

remains  liable  for  the  debts  of  any  and 

Act    is  simply,  a  tribute  to  the    argun 

Because  the  application  of  the  legal  print 

ship   involves,  has  been  attended  with  so: 

produced  certain  apparent  hardships,  the 

have  prevailed  upon  the  legislature,   n« 

principles  erroneous,  but  to  declare  by  stat 

instances,  they  shall  not  apply.  Such  a  m< 

and  never  can  be  satisfactory.     It  is  as  en 

quack  doctor  who  tries  to  make  local  appl 

of  curative  medicines,  or  as  the  attempts 

to  define  the  extent  to  which  nature  abho 

The  provisions  of  the  Act,  though  ve 

very  numerous.     In  half-a-dozen  clause 

to    settle  off-hand  some    of  the   nicest 

arise    in   commercial   transactions.     The 

that  the  loan   of   money  to  a  person 

engage  in  any  undertaking,  upon  a  coi 

receiving  interest  varying    with  the  pi 

the  profits,   shall   not    of  itself  make 

We  should  imagine  that  every  legal  pi 

this  clause,  with   the   liveliest  satisfacti 

some  issues  out  of  this,"  we  once  heard 

to  some  professional  brethren,  with  wh 

testing  the    rights  of  their  respective 

court.     "With  equal  satisfaction,  sharp  p 

upon  the  new  Partnership  Act  in  genen 

in  particular.     In  the  first   place,   the 

writing.'*     But   will  a  mere   memorand 

satisfy  the  requirements  of  the  Statute  oi 

The  wording  of  the  statute  would  certai 

80,  but  on  the  other  hand,  will  not  ever 

necessity  be  in  the  nature  of  "  an  agr 

stamp  is?  necessary  t  Ex  ahvndanti  cautela, 

our  readers  not  to  give  themselves  the 

when    considering    this   point.     But   th 

contain    a   much   grander   element   of 


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hough  the  loan  of  money  of  itself  i&  not  to  make  a  partner 
I  a  man  who  takes  part  of  the  profits,  yet  the  loan  taken 
L  conjunction  with  other  acts  may  do  so.  Therefore  if  the 
nder  would  be  safe,  if  he  would  not  have  the  Act  to  amend 
le  law  of  partnership  lure  him  on  to  destruction,  he  must 
ke  eq>ecial  care  how  he  buys  goods,  makes  contracts,  visits 
le  premises,  or  does  anything  else  that  may  be  tortured  into 
holding  himself  out  to  the  world  "  as  a  partner.  Let  him  fail 
L  his  precautions,  let  him  relinquish  his  reserve,  and  he  may  be 
ire  that  each  ambiguity  in  the  written  contract  will  be  closely 
anned  by  astute  attorneys  and  clever  coxmsel ;  each  doubtful 
}t  of  lender  or  borrower  will  be  scrutinized  and  magnified,  and 
le  question  of  fact,  whether  he  has  or  has  not  impliedly  made 
imself  responsible,  will  have  to  be  tried  before  a  jury  of  traders, 
hose  instinct  and  interest  alike  will  lean  towards  the  plaintiff, 
n  the  other  hand,  the  struggle  will,  in  most  cases,  be  for  very 
dstence,  for  escape  from  utt^r  ruin.  So  that  we  confidently  look 
)r  rules  nisi  and  absolute,  new  trials,  points  reserved,  appeals  to 
be  court  in  boiwo,  proceedings  in  error  and  in  the  House  of 
iOrds,  to  an  extent  which  we  have  no  doubt  will  be  highly 
ratifying  to  dwellers  in  the  Temple  and  Lincoln's  Inn,  but  not 
ear  so  satisfactory  to  those  who  congregate  on  'Change  or  do 
osinesB  in  Threadneedle  Street. 

The  second  clause  provides  that  a  contract  for  remunerating 
servant  or  agent  by  a  share  of  the  profits  shall  not,  qf  itself, 
lake  the  servant  a  partner ;  a  provision  which  after  the  decision 
1 "  Harrington  v.  Churchward  "*  seems  hardly  necessary.  The 
bird  daase  gives  a  similar  exemption  to  widows  and  children  of 
ieceased  partners,  who  receive,  by  way  of  annuity,  a  portion  of 
he  profits  of  a  business ;  and  the  fourth  clause  provides  that  no 
person  receiving  by  way  of  annuity,  or  otherwise,  a  portion  of 
he  profits  of  any  business,  in  payment  for  the  goodwill  thereof, 
'hall  be  deemed  a  partner  by  reason  only  of  sudi  receipt.  This 
B  a  very  singular  section.  It  gives  an  advantage  to  the  vendor 
>{  a  goodwill  on  credit,  which  it  witholds  from  the  vendor  of 
^tock-in-trade.  Let  A  B  sell  his  stock-in-trade  for  £6,000,  and 
^  goodwill  for  £2,000.  If  he  lets  the  £2,000  stand  over  on 
^irangement  to  pay  it  out  of  a  specified  portion  of  the  profits, 
lie  is  a  creditor,  but  if  he  gives  the  purchaser  credit  on  the  same 
^nns,  for  any  portion  of  the  stock,  he  becomes  a  partner,  for 
^hat  reascHL  we  cannot  for  the  life  of  us  divine. 

Another  element  of  ambiguity  is  to  be  found  in  the  use  of  the 
^«nn  /'portion  of  the  profits,'*  in  the  third  and  fourth  clauses. 

*  29,  Law  Joomal,  N.8.,  ch.  521. 


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The  Netc  Law  of  Partneni 


'M;'! 


No  widow  or  child  of  a  deceased  partner  wl 

of  the  profits'*  by  way  of  annuity,  is  to  be 

that  account  alone,     but  how  will  such  p 

receive  their  annuities,  though  no  profits  b 

ments  to  them  in  any  particular  year,  si 

below  their  claim?     And  if  the  trader  c 

the  third  or  fourth  section  with  the  payi 

bankrupt,  how  will  matters  stand  betweei 

the  creditors?     The  fifth  section  providi 

becomes  bankrupt,  or  takes  the  benefit  of  a 

of  insolvent  debtors  (this  proviso  having  i 

through  a  happy  forgetfulness  of  the  abolil 

by  Lord  Westbury's  Bankruptcy  Statute 

his  creditors,  the  money  lender  or   good 

postponed  to  other  creditors,  and  shall  noi 

their  debts  are  satisfied.     It  may  be  doubi 

the  interests  of  creditors  are  suflSciently  e 

visions.     Cases  may  arise  in  which  mom 

account  of  these  annuities,  at  a  time  when 

insolvent.     Nay  more,  it  may  be  proved  t< 

the  insolvency  of  such  creditors,  has  arisei 

payments.     It  will  then  be  a  question  w 

is  entitled  to  retain  the  moneys  paid,  or 

to  refund  what  he  has  thus  improperly  r 

out  these  defects,  we  are  not  influenced  bj 

principle  of  limited  liability,  as  applied  to 

We  believe  that  a  measure  with  this  objc 

beneficially  be  passed,  and  that  it  would  1 

by  the  great  body  of  the  mercantile  conu 

ject  to  the  Act  as  it  stands,  as  a  halting  < 

a  new  piece  put  into  an  old  garment,  ai 

old  bottles.     The  true  test  of  partnershi] 

lish  law,  was  well  laid  down  in   the  caa 

Hickman."*    A  firm  of  iron  merchants  g( 

executed  a  deed  of  arrangement.     They 

perty  to  five  trustees  (the  defendants),  wl 

carry  on  the  business  and  divide  the  profit 

themselves  included.     They  did  so,  and  as  ti 

expectation,  a  creditor  wnose  debt   had 

the   deed    of   arrangcnient   had    been    ex 

to  make  the  trustees  personally  liable,  on  1 

had  partieipated  in  tlie  profits,  and  were  tl 

iosges.     It  was    very  properly   held   that 


*  Sf  Houie  of  LorJs  Cesei ,  2 


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913 


ient;  that,  as  stated  by  the  present  Lord  Chancellor,  ''the  real 
^ound  of  partnership  liability,  is  that  the  trade  has  been  car- 
ied  on  bt/  persons  acting  on  the  defendants*  behalf,'*  for,  as  Lord 
Yensleydale  added,  "the  principle  is  that  of  principal  and 
gent."  Our  great  objection  to  the  new  measure  is  that  it 
^nores  this  principle.  The  man  who  puts  money  into  a  concern 
iiat  another  may  use  it  for  his  profit,  seems  to  authorize  that 
erson  to  act  on  his  behalf^  and  therefore  it  would  seem  that  he 
aght  to  be  liable  for  what  happens.  But  the  Act  says  no  to 
U  this.  It  gives  advantages  to  certain  classes  of  ^t^o^t  partners, 
t  the  expense  of  bond  fide  creditors.  The  capitalist  who  lends 
is  money  to  a  trader ;  the  successful  merchant  who  sells  his 
usiness  and  leaves  the  price  of  his  goodwill  to  be  paid  for  out 
f  future  profits ;  and  even  the  widow  or  child  of  a  deceased 
rader,  may  go  on,  with  the  reputation  of  "  having  something 
y  do  with  the  concern,**  and  in  the  actual  receipt  of  money  from 
«  funds,  while  ordinary  creditors  have  no  satisfactory  means 
f  ascertaining  what  their  relations  to  the  concern  really  are. 
tare  need  be  no  difficulty  in  remedying  this,  or  in  framing  a 
leasure  which  shall  secure  the  end  proposed,  without  jeopaidi- 
ing  the  interests  involved.  Let  registration  be  made  compulsory 
Q  limited  partnerships,  as  well  as  on  limited  companies,  and  let 
tie  former,  like  the  latter,  be  compelled  to  adopt  some  addition 
)  the  style  of  the  firm,  that  shall  at  once  let  the  world  know 
iie  position  of  the  house.  There  will  then  be  no  cause  of  com- 
laint  on  the  part  of  creditors,  and  but  little  room  for  evasion 
Q  the  side  of  debtors.  If  an  agreement  stamp  be  held  un- 
ecessary,  it  will  be  in  the  power  of  any  two  persons  who  may 
gree  so  to  act,  to  get  rid  of  partnership  liability  by  a  docxmient 
caring  date  at  the  commencement  of  the  partnership,  though 
Bally  written  long  afterwards.  Annuitants  of  certain  favoured 
lasses,  may  draw  upon  the  partnership  funds,  and  ruin  the  part- 
ershi^  prospects,  without  taking  any  share  of  the  partnership 
labilities ;  and  from  the  sense  of  injustice  which  this  state  of 
bings  will  infallibly  engender,  we  may  confidently  augur  a 
accession  of  hard  fights  at  the  bar,  irreconcilable  verdicts  from 
he  jury  box,  and  anomalous  decisions  from  the  bench. 


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914 


IIE\TEW  OF  THE  DsDIA: 

One  of  tlie  most  important  discussioas 
Commons  was  engaged  took  place  at  tl 
a  thin  house,  and  by  a  sickly  minister, 
position  under  which  Sir  Charles  Wood 
ho  came  down  at  the  end  of  Jime  to  n: 
Indian  Budget,  much  sympathy  was  fc 
made  such  a  gallant  struggle  agains 
triumphing  over  and  bending  to  its  pur; 
powers.  But  the  question  remains  :  \^ 
of  the  affairs  of  India  be  delayed  to  so  la 
Now  that  Parliament  has  become  dire 
good  government  of  that  teeming  pop 
annual  survey  of  its  condition — its  soc 
so  deeply  embedded  in  its  financial  ] 
when  the  session  counts  the  remainder 
weeks  but  by  days,  when  the  memberj 
seeing  there  can  be  no  further  adjoumr 
the  minister  might  deprive  Parhamcnt 
budget  for  a  whole  twelvemonth.  The 
been  asked  before,  and  no  satisfactoi 
obtained.  Some  slight  attempt  at  an  i 
occasion  by  Sir  Charles  Wood,  which  w 
is  very  far  from  cheering  to  sanguii 
appears  that  the  Indian  minister  has  f 
to  the  inconvenience  and  the  discredit 
state  of  affairs,  and  has  made  repeatc 
accoimts  home  from  India  so  that  he  n 
them  to  the  House  of  Commons  at  a  pe 
there  would  be  time  and  men  to  discuss 
ever,  have  invariably  been  thwarted  1 
entanglement  into  which  the  Indian 
Minister  after  minister  has  striven  to  cl 
but  hitherto  in  vain.  Mr.  Wilson  die 
still  more.  Sir  Charles  Trevelyan  v 
marvellous  energy;  active  official  sub 
from  England ;  but  in  spite  of  all,  the  tt 
finances  remains  still  to  be  accomplisl 
can  only  hope  that  ilr.  Massey,  workii 
carrying  out  the  reforms  begun  by  his 
plete  the  work  they  have  left  unfinishe 
there  is  no  hope  of  an  inquiry  throuc 
thorough,  searching  discussion  on  Jndii 
Yet  the  necessity  for  such   a   disc 


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^parent  than  at  the  present  time.  The  condition  to  which 
idian  finance  has  been  brought  by  the  combined  action  of 
le  Indian  minister  and  the  secretary  of  state^  ia  perhaps  un<^ 
iralleled  in  the  history  of  nations.  Here  we  see  an  ever- 
•owinff  rerenue  side  by  side  with  a  deficit — a  minister  obliged 
confess  his  need  of  a  loan  in  time  of  peace,  and  at  the 
me  time  remitting  taxes  which  only  enhance  the  deficit  the 
an  was  meant  to  cover ;  while  the  minister  at  home  dissents 
om  all  the  proposals,  scolds  his  subordinate  for  giving  up 
le  tax  while  he  refuses  his  assent  to  others,  and  winds  up  by 
sisting  that  if  there  is  to  be  a  loan  at  all  it  shall  be  raised  in 
idia,  where  money  is  dear,  instead  of  in  England  where  it  is 
Leap.  This  is  a  muddle  at  least  as  puzzling  as  any  that  the 
edition  of  Indian  accounts  can  present.  As  for  the  revenue, 
is  gratifying  to  see  that  upon  ttie  whole  it  is  in  a  prosperous 
ate ;  with  one  exception,  all  the  great  sources  of  taxation 
e  increasing,  showing  that  the  prosperity  is  based  on  a  broad 
undation,  and  that  the  material  resources  of  the  people  are 
•eatly  improved.  The  one  exception  to  which  we  refer  is  that 
'  opium,  and  all  who  are  acquainted  with  the  condition  of  India 
low  that  opium  has  been  a  precarious — ^it  might  almost  be 
illed  a  gambling — source  of  revenue.  But  in  point  of  fact  it 
not  to  the  fickleness  of  the  trade,  but  to  the  unwise  measures 
iken  by  the  Indian  government  that  the  recent  extraordinary 
jficit  in  the  opium  revenue  is  due.  A  few  years  ago  there  was  a 
reat  demand  for  the  drug,  which  consequently  fetched  a  high 
rice,  and  the  gains  of  the  Indian  government  were  proportion- 
:ely  uicreased.  The  conclusion  was  hastily  formed  that  this  high 
rice,  which  was  really  the  exceptional,  had.  become  the  nor- 
lal  condition  of  things,  and  that  to  fill  the  treasury  there  was 
othing  better  to  be  done  than  to  increase  the  supply  of  opium, 
ad  sefl  it  at  the  price  at  which  it  then  ruled  in  tne  market, 
>ut  how  to  increase  the  supply  was  the  diflBculty.  The  price 
llowed  to  the  poppy  growers  was  complained  of  as  too  low,  and 
le  Indian  husbandman  manifested  a  growing  reluctance  to  cul- 
Ivate  a  crop  which  yielded  him  a  less  return  than  any  other 
1  which  he  could  engage.  The  government  undertook  to  re- 
love  this  objection  by  increasing  the  allowance  to  the  grower, 
nd  this  they  did  so  effectually  that  in  a  short  time  the  supply 
greatly  exceeded  the  demand.  The  price  of  opium  fell  at  once 
ar  below  the  estimate  which  the  minister  had  calculated  on,  and 
he  government  found  itself  in  the  double  inconvenience  of  having 
0  pay  more  to  the  producer  for  the  production  of  the  opium, 
^mle  they  realised  less  from  the  consumer  by  its  sale.  The  double 
rorking  of  that  loss  made  the  actual  state  of  things  worse  than  the 


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estimated  revenue  by  more  tlian  a  milli 
happened,  too,  at  a  time  when  the  loss  co 
lie  attention  has  been  aroused  of  late  to 
improvement  in  India.  The  police  has 
courts  of  justice  to  be  improved,  the  he 
for  in  the  construction  of  new  barracks;  i 
forward  with  accelerated  step;  and,  last 
some  Bhootan  war  to  be  provided  for. 
are  essential  to  the  material  impro^ 
and  to  the  development  of  its  interne 
be  looked  upon  therefore,  in  the  lig 
capital  which  is  sure  to  yield  a  good  re 
from  which  the  investment  was  ex 
was  expected,  the  question  was  force 
of  the  Indian  rulers.  What  was  to  be 
course  to  men  uninstructed  in  Indiai 
fast  at  any  rate  to  those  sources  of  Ind 
remained  and  which  showed  no  sig 
course  was  too  simple  and  straighl 
ingenuity  of  Sir  Charles  Trevelyan.  Tl 
been  enforced  like  our  own  for  a  term 
of  years  had  come  to  an  end ;  when, 
deficit  staring  him  full  in  the  face, 
determined  not  to  renew  it.  His  re 
curious.  It  was  an  unpopular  tax ;  it 
dissatisfaction,  though  no  one  denied 
pretty  regularly  and  was  yearly  rising 
all,  the  Indian  Government  had  come 
express  or  implied,  that  it  would  cease 
first  term  of  years  for  which  it  ha( 
were  the  ostensible  reasons  whicl 
minister  for  India,  deliberately  to 
revenue  at  the  moment  that  anotl 
his  grasp.  But  to  those  who  remembei 
former  connexion  with  this  tax,  anoth 
cogent  personal  reason  Avill  present 
forgotten  that  Sir  Charles  Trevelyan  i 
when  the  income-tax  was  first  propose 
resisted  its  imposition,  made  public  p 
had  been  resolved  on,  and  conducted 
temperate  manner  that  Sir  Charles  Woi 
to  recall  him.  It  may  be  suppos 
personal  antipathy  to  the  tax  outweig! 
fiiderations  which  are  so  elaborately  set 
Having  by  thus  getting  rid  of  the  i 


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Bficiency  it  was  his  business  to  fill  up,  the  minister  naturally 
imed  to  other  sources.     These  were  two  in  number.    He  pro- 
wed  a  tax  on  the  exportation  from  the  country  of  the  articles 
[jute  and  tea ;  and  he  proposed  that  the  temporary  difficulties 
lould  be  met  by  a  loan,  which,  ostensibly  raised  for  the  pur- 
)8e  of  being  spent  in  reproductive  works,  would  in  reality 
►ver  the  deficit  thus  created.   These  projects  Sir  Charles  Wood 
it  his  veto  upon  ;  and  we  apprehend  that  so  far  as  the  dis- 
lowing  of  the  new  taxes   was  concerned  few  persons  will 
id  fault  with   the  reasons   he  assigned    to    the  House    of 
ommons.     Taxes  on  the  exportation  of  a  country's  products 
e  always  bad,  especially  when  those  products  are  the  raw 
aterials  of  industry.     "VV e  do  not  say  that  they  are  never 
stifiable,  but  at  least  they  are  always  suspicious,  and  the  justi- 
jation  offered  for  them  must  be  narrowly  looked  at.     In  the 
ae  of  Sir  Charles  Trevelyan's  taxes,  no  justification  could  be 
und.      They  were  not  only  laid  on  the  exportation  of  raw 
*oduct8,  but  the  articles  selected  were,  by  a  curious  infelicity  of 
irpose,  exactly  those  where  India  already  had  to  endure  a 
mpetition  with  other  countries,  and  where  the  imposition  of  a 
X  was  therefore  like  to  turn  the  scale  against  the  exportation 
together.   The  cultivation  of  tea  is  a  new  article  of  inaustry  in 
idia,  and  has  already  made  great  progress  there,  but  of  course 
has  to  contend  with  a  powerful  rival  in  the  neighbouring 
•untry  of  China,  and  if  it  is  ever  to  be  brought  into  general 
ie  in  Europe,  no  artificial  shackles,  no  financial  burdens  must 
)  imposed  on  its  exportation.     The  same  thing  may  be  said  of 
le  tax  on  jute,  which  is  also  supplied  from  other  countries,  and 
IS  at  all  times  a  powerful  rival  in  the  article  of  Peruvian  hemp. 
T   Charles   Wood   therefore   carried  the   sympathies  of  the 
ouse  of  Commons  with  him  when  he  announced  that  he  had 
sallowed  the  imposition  of  taxes,  which,  however  they  were 
[tended,  were  likely  to  have  the  effect  of  ruining  the  indus- 
ies  on  which  they  were  imposed.    There  remained,  therefore, 
ily  the  qhestion  of  the  loan  to  be  disposed  of;  and  one  would 
[ive  supposed  that  as  all  the  other  means  of  supplying  the 
ants  of  the  Government  were  taken  away,  or  the  mcome  tax 
ad  been  struck  down,  and  the  export  duties  were  disallowed, 
lere  was  all  the  more  need  for  holding  by,  if  not  for  increasing 
ic  loan  which  the  finance  minister  had  recommended.     But 
ere  again  the  secretary  of  state  differed  from  and  thwarted 
le  finance  minister.      The  project  of  a  loan  shared  the  fate 
i  the  export  taxes,  and  a  difficult  task  has  therefore  been  im- 
osed  on  &r.  Massey,  Sir  Charles  Trevelyan's  successor. 
On  the  whole,  the  state  of  India,  as  thus  sketched  out  by  its 


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918 


Revieio  of  the  Indian  2 


minister  in  tlie  House  of  Commons,  ii 
The  flattering  prospects  which  it  pres 
years  of  Lord  Canning's  administratioi 
Elgin,  appear  to  be  fading  away.  Th< 
annually  increasing  surplus,  which  for 
our  eyes,  has  already  faded  away,  and  \ 
years  was  India's  normal  condition — tha 
confessed,  this  is  rather  disheartening,  ai 
no  immediate  prospect  of  improvement, 
ing  to  the  figures  presented  by  Sir  Chj 
is  every  year  increasing,  showing  t 
dition  of  the  people  is  improving,  a 
prosperity  are  everywhere  visible ;  bul 
creases,  the  expenditure  increases  in  a  g 
employment  of  80,000  European  trooj 
enormous  drain  on  its  resources,  such 
dured.  It  is  sometimes  said  that  the 
army  has  been  got  rid  of ;  but,  in  point 
There  is  still  a  large  native  force  emb( 
them  the  new  police  force  which  is  kep 
ment,  we  apprehend  it  will  be  found 
numbers  the  new  force  does  not  greal 
Then  there  are  the  expenses  arising  ou 
dition  of  the  barracks  for  the  military,  1 
their  maintenance,  the  improvements  L 
law  and  justice,  the  re-organization  of  p] 
port  of  schools,  and  all  the  clianges  ar 
the  claims  of  humanity  and  civilization  ] 
It  may  be  said  that  the  expenditure  ai 
will  repay  itself :  and  so  it  will  indirectl; 
its  development ;  and  wliile  the  revenue 
does  not.  The  principal  source  of  inc 
tax,  and  that  is  naturally  inelastic ;  om 
ever.  All  these  considerations  show  1 
requires  to  be  closely  looked  at,  and  to 
and  unsparing  hand.  One  of  the  most 
be  considered,  is  whether  India  really  i 
soldiers  for  its  government.  England 
men,  as  India  can  afford  the  means 
If  India  cannot  be  held  without  them, 
said  ;  but  looking  to  the  handful  of  t 
mutiny  was  actually  put  down,  and  to 
have  been  made  since  in  railroads  and 
which  danger  at  one  part  of  the  empi] 
And  assistance  sent  from  another,  we  ai 


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Banking  and  Financial  Anecdotes 


919 


reduction  can  be  effected  in  this  department ;  and  it  is  only 
this  department,  as  we  believe,  that  any  material  lightening 
the  Indian  expenditure  can  for  some  time  to  copie  be 
scted. 


BANKING  AND  FINANCIAL  ANECDOTES. 


No,  JX. 

THE  BAITKEB  AND  THE  LADYE  FATBS. 

B  morning  a  very  elegantly  dressed  female  entered  the  banking 

ase  of ',  and  presented  a  cheque  for  payment,  at  the  same 

16  requesting  that  she  might  have  gold  in  exchange.  The  lady  was 
b  only  well  dressed,  but  she  was  very  beautiful,  so  much  so  that  the 
ention  of  the  cashier  was  riveted  upon  her.  He  weighed  fifty 
'ereigns,  which  he  handed  to  the  lady  ;  and,  supposing  that  she 
uld  count  them  one  by  one,  he  anticipated  that  the  pleasiure  he 
ioyed  in  looking  upon  her  would  thereby  be  prolonged ;  but  he  was 
staken,  for  to  his  surprise,  instead  of  counting  them  she  huddled 
3m  all  up  together,  and  put  them  in  a  white  pockethandkerchief. 
16  cashier,  observing  this  unusual  mode,  said,  "  You  had  better  count 
2m,  madam; "  but  the  lady,  looking  at  him  with  a  most  gracious 
ile,  said,  **  I  am  quite  satisfied,  sir,  that  you  are  rigl.t ; "  and,  with 
other  bewitching  look,  wished  him  good  day,  and  walked  leisurely 
t  of  the  bank. 

The  cashier  was  so  overpowered  with  the  beauty  of  his  customer 
at  immediately  on  her  retiring  he  went  a  few  paces  to  a  fellow 
shier,  and  asked  him  if  he  had  ever  seen  such  a  lovely  creature. 
^^Tiat  a  bewitching  woman  ! "  said  he ;  "  what  a  sparkling  bril- 
^cj  in  her  eye  !  I  wonder  who  she  is  ? "  This  caused  him  to  look 
the  cheque,  which,  on  first  receiving,  he  had  placed  on  his  book 
ithout  entering ;  when  he  discovered,  to  his  utter  astonishment,  that 
was  for  £5  instead  of  j£50.  Uttering  an  exclamation,  he  jumped 
'er  the  counter,  and  was  in  the  street  in  a  second.  He  looked  to  the 
ght  and  the  left,  but  could  distinguish  no  trace  of  the  beautiful  lady. 
Itmiately  it  was  thought  best  that  he  should  apply  to  the  drawer  of 
^e  cheque  for  the  name  and  address  of  the  party  to  whom  he  paid  it, 
le  cheque  simply  bearing  the  words,  "house  expenses  or  bearer." 
Th©  drawer  of  the  cheque,  on  being  asked  by  the  cashier,  to  furnish 
im  with  the  desired  information,  expressed  his  surprise  at  what  he 


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920  Banking  and  Financial  A 

called  liis  impertinent  curiosity ;  but  on 
mistake  that  liad  been  made,  he  immedia 
address,  "  Miss  Thompson,  Bury  Street,  1 
beg  you  will  not  utter  a  word  of  tliis  affair  i 

come  to  the  ears  of  Mrs.  P I  feai-  the 

would  result  from  my  indiscretion,  for  the  j 
only  too  celebrated." 

The  cashier,  anxious  to  catch  the  lac 
assured  the  gentleman  of  his  silence,  and  j 
expedition  to  Bury  Street.  The  door  waj 
looking  girl,  who,  on  being  asked  if  Miss 
replied  with  great  simplicity,  "No,  sir, 
home,  and  I  don't  think  she  will  come  bacls 
It  uUimately  came  out  that  the  moi 
returned  from  the  city,  she  packed  up  her  1 
•  of  coui-se  without  leaving  her  address  ;  enjc 
faction  of  having  proved  the  truth  of  tlie  sa 
for  she  had  by  a  judicious  exercise  of  her  c 
eyes  of  a  city  banker,  that  he  could  not  dis 
£i>0.  On  his  return,  he  was  ashamed  to 
to  the  house,  and  it  was  an*anged  that  tl 
should,  by  way  of  piurchasing  the  silence  of 
the  amount,  and  the  casliier  the  other,  whi 
was  kept  a  profound  secret  for  some  time.^ 


THE   BANKER   V.    THE   E 

It  is  scarcely  to  be  expected  that  a  bank< 
all  his  customers,  and  a  rather  ludicrous  e^ 
ignorance  of  a  Lombard  Street  banker  of 
clients,  a  baker.  Tlie  latter,  who  had  so 
just  paid  another  £500  in  to  it,  and  was  st 
bank,  gathering  his  scattered  thoughts,  and 
which  way  he  should  go.  He  was  in  a  brc 
were  white  with  flour,  and  the  head  of  the 
moment  essayed  to  enter  liis  own  establish] 
without  an  unpleasant  contact  between  th( 
the  floury  habiliments  of  a  man  who  was  a 
**  Move  away,  fellow,"  said  the  banker.     Si 


V    .  !  I  *  Lawson's  History  of  Bar 

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Banking  and  Financial  Anecdotes. 


921 


ay  drcomstances  to  a  tradesman  would  probably  move  his  ire ;  but 
le  baker,  possibly  inflated  with  his  recent  monetary  transaction,  Dot 
ily  refused  to  budge  an  inch,  but  applied  irritating  language  to  the 
inker.  The  latter,  all  unused  to  disrespectful  language,  and  nettled 
finding  a  difficulty  in  getting  into  his  own  house,  again  authorita- 
rely  ordered  the  baker  to  move,  *'  or,"  said  the  banker,  "  111  soon 
b  you  know  who  I  am."  The  conflict  then  grew  as  fierce  as  an 
isode  in  that  familiar  pictorial  representation  of  <^ntrariety  of  views 
L  the  part  of  a  baker  and  another  personage  not  a  banker ;  and,  in 
:t,  the  baker  knocked  the  banker  down.  Foaming  with  rage,  he 
shed  into  the  asylum  of  his  own  bank,  followed  by  the  baker.  A 
Qstable  was  being  sent  for,  that  the  oflending  baker  might  be  given 
io  custody,  when  a  derk  whispered  to  the  irate  and  insulted  but 
t  humbled  banker,  "  That  is  Mr,  such-a-one,  our  customer."  Mu- 
ll explanations  ensued,  and  preliminaries  of  peace  were  entered  into, 
ich  were  afterwards  i*atified. 


A  BAKE   CLEBK  OF  THE   OLD  SCHOOL. 

rhe  banking  house  of  Barclays  required  the  aid  only  of  three  clerks 
ing  many  years  of  its  earlier  history.  A  clerk  who  had  been  up- 
rds  of  fifty  years  in  the  bank  (says  Mr.  Lawson),  used  to  tell  an 
using  story  of  the  first  appearance  of  a  new  clerk.  There  were 
',  two,  and  on  the  first  occasion  of  the  third  clerk  coming  to  the 
ce  he  was  dressed  in  the  following  fashion.  He  wore  a  long-flapped 
t  with  large  pockets  ;  the  sleeves  had  broad  cufis  with  three  large 
tons,  somewhat  like  the  coats  worn  by  the  Greenwich  pensioners 
;he  present  day  ;  an  embroidered  waistcoat,  reaching  nearly  down 
lis  knees,  with  an  enormous  bouquet  in  the  button-hole  ;  a  cocked 
;  powdered  hair  with  pig-tail  and  bag-wig ;  and  gold-headed  cane, 
ilar  to  those  of  the  present  day  carried  by  the  footmen  of  ladies 
-ank.  The  gentleman  who  cut  so  curious  a  figure  remained  in  the 
Lse  many  years,  aud  died  a  few  years  ago  at  a  very  advanced  age, 
ch  respected  by  his  employers. 


THE  BANK  OF  EKOLAND  BEPL'DIATES  A   GOOD  NOTE. 

[n  1819  an  action  for  false  imprisonment  was  brought  against  the 
ik  of  England  by  a  gentleman  who  had  paid  away  a  £1  note  which 
Bank  declared  to  be  forged.     The  Bai^  at  that  time  kept  forged 
VOL.  XXV  72 


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922 


Banking  and  Financial  1 


notes,  but  by  some  means  or  other  the  plaii 
got  possession  of  this  note,  and,  refusing  to 
before  a  police  magistrate  on  the  chai-ge  oi 
note  knowing  it  to  be  forged.  An  inspect 
boi-e  witness  that  the  note  wan  counterfeit 
holder  of  it  was  committed  to  prison.  Th 
released  on  bail,  being  bound  over  to  appes 
having  been  called  jon  for  a  year,  he  then 
the  Bank  for  fidse  imprisonment.  The  no 
this  being  clearly  substantiated  the  plainti 


▲  WILLING  SLAVE  TO  BAlTEl] 

Mr.  Kippon,  chief  cashier  of  the  Bank  o 
who  devoted  himself  most  assiduously  to 
his  all-absorbing  pursuit.  He  was  precis 
businesslike  throughout  his  life,  the  Bank 
For  fifty  years  he  piu'sued  his  business  unin 
ment,  and  never  asked  for  a  holiday,  exce 
medical  adviser  insisted  on  change  of  air 
last  made  up  his  mind  to  have  a  fortnight 
from  London  with  that  object.  But  he 
parently  of  the  same  opinion  as  Dr.  Johns 
seen  one  green  field  had  seen  all  green  fiel 
three  days  to  Ms  figures,  declaring  that  cot 
for  him.  No  wonder  perhaps  that  sucl 
£60,000. 


\:\ik 


THE  BANKER  AND  THE  TWO  GENT! 

A  country  banker,  in  1825,  had  occasio 
town  with  a  large  amount  of  property  ii 
procured  from  his  London  agent  The 
in  the  mail  coach,  so  that  he  might 
and,  to  make  doubly  sure,  he  placed  ] 
seat,  and  locked  them  in.  Two  very 
to  the  coach  soon  after  the  banker  w 
the  coach  rolled  onwards.  When  arr 
coach  usually  put  up  while  the  pas 
gentlemen  invited  the  banker  to  take  s 


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The  Will  of  the  Me  Mr.  SicAard  Thornton. 


923 


J  to  qmt  his  treasure,  even  to  satisfy  the  cravings  of  his  innci- 
lined  the  inyitation,  A  second  application,  however,  from 
I  quartez^^tbe  picture  of  a  nice  roast  fowl,  just  doQe  to  a 
ig  tiiken  up  for  h upper,  being  rapidlj  sketched — ^was  more 
:,  mid  the  liaitkcr  left  his  seat,  fullj  convinced  that  the  notes 
rertlielass  he  salb,  locked  in  as  they  were,  and,  so  far  as  he 
eir  existence  not  heing  known  to  his  fellow-passengers, 
oded,  one  of  the  gentlemen  returned,  and  the  coach  sped 
the  booker  s  inqnlry  after  the  other  passenger  being  answered 
idj  remark,  that  the  latter  had  changed  his  mind,  and 
to  siaj  at  the  Inn  at  wliich  the  roast  fowl  had  been  discussed. 
xt  stage  the  banker's  companion  got  out  and  bade  him  good 
left  alone  the  banker,  not  suspecting  anything  wrong, 
isi  Just  examined  the  seat  under  which  he  had  deposited 
of  notes.  They  were  gone,  like  his  fellow-travellers,  and 
agency.  The  robber^'  had  been  planned  in  London,  and 
two  gentlatu^j  men  had,  in  company  with  the  banker, 
tng  on  the  roast  fowl,  confederates  had  been  quietly  forcing 
id  aljstracting  the  notes. 


iL  OF  THE  LATE  MR.  BICHABD  THORNTON,  THE 
MILLIONAIRE  OF  THB  CITY. 

>f  thxa  gentleman,  so  well  known  at  Lloyd's,  Jerusalem,  and 
y  oommerci&l  establishment  in  the  City,  and  who  died  a  few 
leaving  the  enoimous  watdth  of  £3,700,000,  has  just  been  proved 
Commons,  Mr,  Thornton's  career  as  a  merchant  in  the  City 
xtraordinaTy.  He  was  the  son  of  a  north-country  ffentlemau, 
rn  in  177 G,  at  Bnrton,  a  village  in  Lonsdale,  Yorkshire.  The 
hat  sequestered  region  will  find  a  handsome  monument  of  Mr. 
iiomton's  attAebment  to  his  birthplaoo*  in  the  charity  school^ 
^uilt  at  a  cost  of  £40,000,  and  endowed  for  the  lodging,  board- 
ichlng  of  poor  cbildren  in  i^e  parishes  of  Burton  and  Thornton, 
dacated  at  Chrifit*a  Hospital,  and  on  leaving  school  he 
to  business  in^  South wark.  But  very  few  of  the  oldest  City 
iraemher  Mr.  Thornton's  first  start  in  his  commercial  career, 
jrtanoes  of  that  time  were  very  different  to  our  oonditionB  in 
It  was  during  our  great  war  with  the  French  empire,  when 
IS  exduded  from  tlio  mai-kets  of  Europe,  and  when  the  Conti* 
i  was  of  immensely  greater  importance  to  us,  that  Mr.  Thornton, 
en  eanying  on  btiBineifS  ie  partnership  with  his  brother  as  a 
rt^iant  and  ship  broker,  devoted  himself  with  fearless  resolution 
rough  the  prcinibition  of  English  trade  with  the  Continent. 
4d  made  the  most  denperate  ^orts  to  destroy  the  whole  of  our 
lunerce.  To  enforce  his  decrees  an  entire  division  of  the 
my,  under  the  command  of  General  Happ,  was  stationed 
e,    and    every   port    in  Northern   Germany    was   jealously 


'I 


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924 


The  Will  of  the  late  Mr.  Ric. 


<^. 


guarded.    The  Messrs.  Thornton  were  amon 

bold  and  adventurous  spirit.     On  one  occasio 

board  a  vessel  of  his  own,  entering  the  Baltii 

by  a  Danish  gunboat,  and  the  story  goes  that 

gun  or  two  of  his  own,  as  was  not  unusual 

days,  refused  the  summons  to  surrender,  an( 

beating  off  the  Dane,  after  a  vigorous  cannona 

In  that  year,  1810,  he  got  a  commission  fro 

as  much  hemp  as  could  be  procured  from  Ri 

fleet.     This  errand  was,  of  course,  attended  i 

since  all  the  English  hiid  fled  from  or  had  t 

St.  Petersburg.     But  Richard  Thornton  was  i 

such  risks.     He  landed  at  Memel,  and  succeet 

ing  to  England  many  thousands  of  tons  of 

vernment,  in  spite  of  difficulties  wliich  woul 

man.    A  splendid  I'ecompense,  however,  awa 

wards  an  express  communication  reached  hin 

in  that  country  at  the  time  of  the  French  in"^ 

prised  of  the  fact  of  Napoleon's  retreat  from 

was  known  either  to  our  ministers  or  to  any  c 

profited  by  it  to  something  over  £200,000. 

out,    after  a   short  interval,    in  the  kingdc 

excited  Mr.  Thornton's  sympathy.    He  saw 

Miguelite  pretensions  in  Portugal,  as  well 

Spain,   and   he   judged   that   by   subscribing 

he   might   do   a   good   thing   and    make   a 

tary   munitions   were   laid   up   in   the    Azc 

use  of  Don  Pedro's  adherents— either  to  repb 

Portuguese  throne.    It  was  Mr.  Thornton  wl 

the  money  for  these  preparations,  and  who,  "w 

the  field,  contracted  for  its  equipment,  find 

required.     That  enterprise  was  successfully 

friendly  intervention  of  the  English  govemnn 

young  protege  got  safely  seated  on  the  throne 

assist  another  infant  queen  against  another  pr 

not  hesitate  to  take  the  odds  in  favour  of  the 

the  Portuguese.     He  contributed  much  to  the 

her  behalf,  and  what  with  his  claims  as  a  bon 

they  owed  him,  <fec.,  he  was  a  creditor  of  the  y 

of  not  less  than  two  millions  sterling.     With  i 

failed  among  the  Peninsular  bondholders  to 

those  governments  would  ultimately  redeem  \ 

Mr.  Thornton's  personal  services  to  the  P 

acknowledged  by  conferring  on  him  the  rank 

the  Order  of  the  Tower  and  Sword.     Mr.  Tl 

underwriter  at  Lloyd's  from  the  year  1798. 

ordinary   underwriters,    who  are    in   the   h 

sponsibilities  with  one  another,  so  that  the  lo 

cargo  would  fall  perhaps  on  twenty  or  thirty 

taken  a  leonine  share  of  the  most  tempting 

othor  man  would  be  disposed,  even  forapremi 

take  the  insurance  of  £100,000  on  one  bottoi 

rotirement  from  that  scene  of  action,  was  beyo 

man  at  Lloyd's,  and  though  single-handed,  his 

tlio  great  marine  insurance  companies  which  1 

those  days.    Previously  to  the  late  war  with 


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The  Will  of  the  late  Mr.  Richard  Thornton.  925 


isnre  for  the  Impeoial  goverment  such  a  thing  aa  a  steam  frigate  built 
i  the  English  dockyards ;  and  once,  it  is  said,  having  entered  into  a  similar 
ibility  towards  that  or  another  foreign  state,  on  being  asked  by  a  friend 
)w  he  could  insure  the  fleets  of  the  different  European  kingdoms,  he 
plied, "  Oh ;  if  they  lose  the  men-of-war  that  I've  insured,  I  can  pay  for 
lem  in  their  own  bonds."  Besides  being  the  largest  holder  of  Consols 
England,  Mr.  Thornton  was  also  one  of  the  largest  holders  of  foreign 
curities ;  he  was  noted  for  the  extent  and  multiplicity  of  his  investments, 
well  as  for  his  dexterous  use  of  such  opportunities  as  have  frequently 
en  presented  by  the  variable  moods  and  opinions  of  the  Stock  Exchange. 
at  ordinary  trade  has  not  been  Mr.  Thornton's  only  resource.  He  some- 
nes  won  largely  on  the  affairs  of  the  turf,  and  at  other  times  has  taken 
nsiderable  bets  on  the  result  of  a  military  campaign  or  a  ministerial 
Lsis.  During  our  war  with  Kussia  it  is  said  he  laid  the  sum  of  £10,000 
ainst  £500  with  a  well-known  Greek  merchant  that  tiie  price  of  Consols, 
lich  was  of  course  somewhat  declining,  would  not  %J1  below  85  until 
e  oondusion  of  peace.  One  dark  morning  in  the  winter,  which  found 
in  a  shocking  mess  at  Sevastopol  and  Balaclava,  the  price  actually  came 
wn  to  85^,  and  those  who  had  envied  Mr.  Thornton's  invariable  luck 
Te  rubbing  their  hands  at  the  prospect  of  his  defeat.  But  Consols  fell 
lower,  and  Mr.  Thornton  pocketed  the  modest  stake  of  his  antagonist, 
Ting  risked  such  odds  against  it. 

Before  dosing  we  should  refer  to  his  acts  of  charity  and  beneficence 
a  fitting  accompaniment  of  such  extraordinary  good  fortune.  The 
^ools  which  he  founded  in  his  native  village,  far  away  in  the  York- 
ire  dales,  have  already  been  noticed*  But  there  is  another  pleasing 
)phy  of  his  liberality — a  double  row  of  almshouses,  neatly  built, 
d  situated  in  a  very  pretty  open  garden,  at  the  edse  of  Bamet 
»mmon,  just  outside  that  neighbourly  Sttle  town.  The  Leathersellers' 
»mpany,  which  boasted  in  him  as  its  father  or  senior  member, 
sctod  one  block  of  these  houses  in  18^,  with  money  given  by  him 
len  he  filled  the  office  of  master  in  that  worshipful  guild.  A  second 
nation  of  his  in  1850  enabled  them  to  build  a  new  range  of  these  com- 
-table  lodgings,  in  which  altogether  thirteen  aged  men  and  women  £n- 
j  a  stipend  each  of  10«.  weekly,  with  coals  and  candles.  Ever]^  year 
used  to  go  to  Barnet  with  the  worshipful  master  and  wardens,  in  the 
t  week  in  May,  to  ^ake  hands  with  the  poor  old  pensioners,  to  compare 
sir  length  of  years  with  his  own,  and  then  to  dine  in  good  old  English 
thion  with  his  colleagues  in  that  andent  corporation.  Such  was  the 
^ty  and  recreation  of  a  London  merchant  of  the  old  school.  Mr. 
lomton  in  his  wiU  makes  the  following  bequests : — £1,000,000  to 
r.  Thomas  Thornton,  who  likewise  is  to  inherit  the  deceased's  estates ; 
1,000,000  to  Mr.  Richard  Thornton  West ;  £500,000  to  be  divided  among 
ber  relations  and  friends ;  a  handsome  provision  for  Mr.  Neil,  and  other 
the  deceased's  derks ;  £100,000  to  be  divided  among  all  the  charities, 
T^pitals,  oayliiuis,  arid  benevolent  institutions  in  London,  4&c.,  the  sums 
lug  duly  pnDp<L)rtioBcil  in  each  bequest ;  £15,000  to  Christ's  Hospital 
rliere  deceased  wjyi  educated) ;  £10,000  left  in  trust  for  the  benefit  of 
e  schools  itx  Merton ,  in  Surrey ;  £10,000  left  in  trust  for  the  schools 
Mr.  Thomton'a  native  village.  Burton,  in  Yorkshire ;  £1,000  left  for 
e  benefit  of  the  aged  poor  at  Burton ;  £500  left  for  the  poor  at  Merton. 
icro  are  mauy  other  bequests  contained  in  the  will.  The  executors  are 
r.  Thomas  Thomtou^  Mr.  R.  T.  West,  Mr.  Pulford,  and  Mr.  Lea.  It  is 
presented  that  the  probnte  duty  of  the  whole  cost  £42,000,  and  the 
jacy  duty  will  amount  to  upwards  of  £100,000. 


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THK  WrSDUXQ  UP  OT  THE  BAST  OF  EITOl 
ISAAC  BUOO. 

This  case  was  decided  in  Cliancery  by  Vioe-C] 
24th  June. 

It  was  a  summons  on  the  question  whether 
to  be  placed  upon  the  list  of  contributories  in 
pany.  About  a  year  since  Mr.  Bugg  was  desi 
this  company ;  but,  being  already  the  solicit 
Gumey  and  Co.,  and  Harvey  and  Hudsons, 
that  he  had  become  a  shareholder  in  a  joint-E 
Mr.  John  Bugg,  his  brother,  at  Norwich,  to  pi 
and  he  accordingl^ought  135  shares,  60  old 
Mr.  John  Bugg,  and  in  that  of  Mr.  Stevens 
accepted  by  the  board  of  directors  as  transfer 
then  known  that  Mr.  Isaac  Bugg's  money  ha 
chase.  A  very  brief  period  elapsed  between  th 
of  the  bank,  when  the  official  liquidators,  refi 
R  committee  of  shareholders  took  the  presem 
tion  whether  he  was  liable. 

Mr.  Baily  and  Mr.  Swanston  appeared  for 
for  the  official  liquidators ;  Mr.  Lawrence  an 
John  Bugg  and  Mr.  Stevens ;  and  the  Atton 
Mr.  John  Cutler  for  Mr.  Isaac  Bugg. 

Tlie  Vice. Chancellor  said  that  by  the  deed  < 
that  no  person  should  be  considered  a  proprie 
in  equity  whose  name  did  not  appear  on  the  i 
that  no  transfer  or  sale  should  take  place  wit" 
tors.  It  was  well  established  that  a  person  n 
professed  object  of  escaping  liability,  but  the: 
iiiul-out  sale,  and  if  it  was  only  in  such  a  m 
HplHng  might  still  get  benefit,  but  escape  J 
Here  there  was  no  doubt  that  it  was  a  boni  fi 
Bugg  or  Mr.  Stevens  had  disclosed  that  they 
the  company  would  have  said, "  We  have  notl 
tlie  parties  we  look  to."  Therefore,  the  case 
fide  transfer  did  not  apply  here ;  there  was  nc 
must  be  refused  with  costs. 


TUE  AUSTBIAK  BAKK  CONCESSION.— THE  BABO 
v.  LOBD  FBRMOT  AND  A. 

JrnoMTCNT  was  delivered  in  this  case  in  the 
tlie  4th  July ;  there  being  present  the  Lore 
Blackburn  and  Shee. 

This  was  the  action  by  the  Baron  de  Tl 
ngainst  Lord  Fermoy,  and  another  gentlei 
ti-iirt  contain(?d  in  a  memorandum  of  agree 
18113,  by  which  the  phiiutiflf,  who  had  obtaine 
/iient  a  prelLaiinary  concession  for  the  establif 
of  limited  liability  at  Vienna,  subject  to  appi 


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ition  (or,  as  th«y  were  called,  ^  statoteB  ")  bv  the  Austrian  government, 
preed  to  tranafer  all  their  present  ri^^xtR,  nnder  that  preliminary  conces- 
on  to  the  defeodanta  (Lord  Fermoy  and  a  friend  of  his),  and  to  assigB 
\  them  the  definitiye  oonoeasian  so  soon  aa  it  should  be  obtained,  the 
sfendania  agreeing  to  do  all  things  neeessary  on  their  parts  to  obtain  the 
jfinitire  oonoession  witii  the  least  possible  deUy,  andj»  pay  to  the  plain- 
ffii  £20/)00  (hall  in  cash  and  liau  in  shares  of  the  bazik)  for  such  eon- 
ssion,  the  payment  to  be  within  90  days  after  the  allotment  of  shares  in 
le  bank ;  and,  forther,  to  acoept  the  ^statutes''  as  they  stood,  and  to  pay 
1  expenses. 

Such  being  the  agreement  between  the  parties,  it  appeared  that  the 
rfinitiTe  oonoession  was  granted  by  the  Austrian  goyemment  on  the  2nd 

September,  1863^  and  that  the  allotment  of  shares  was  completed  on 
e  2nd  of  October  in  that  year.  And  the  30  days  speeiQed  in  the  contract 
iTing  eapired,  the  plaint^a  daimed  fulfilment  of  the  contract  and  de- 
andad  the  moneY  and  shares  stipulated  for  in  the  agreement ;  but  the 
ifendants  refused  to  accept  the  definitive  concession  or  to  pay  the  cash 
id  hand  over  the  shares,  and  hence  the  present  action  by  tiie  plaintifla 
r  compensation.  The  defendants,  in  answer  to  the  action,  contended 
at  the  agreement  had  been  entered  into  on  the  basis  of  the  statutes,  and 
lal  these  had  been  altered  by  the  government  in  certain  important  par- 
colars,  whereby  the  position  of  the  defendants  was  materially  alt^ed, 
kd  the  carrying  out  the  agreement  as  it  was  originally  contemplated  was 
ndered  impoBuble ;  and  wat,  in  consequence,  the  defendants  were  relieved 
tna  their  obligations  to  fulfil  their  part  of  tiie  contract. 
The  arguments  were  reported  at  length  in  tiie  jBanJbers'  MagazvM  for  July. 
Mr.  BovilLy  Q.C.,  Mr.  Mellish,  Q.C.,  and  Mr.  Kingdon  argued  for  the 
aintiffe  ;  Mr.  Lush,  Q.G.,  Mr.  Hawkins,  Q.G.,  and  Mr.  Garth  argued  for 
te  defendants. 

The  Lord  Chief  Justice  now  detivered  a  written  judgment,  embodying 
le  unanimous  judgment  of  the  Court  in  &vour  of  the  plaintifib.  Having 
ated  the  material  facta  his  Lordship  proceeded  thus : — The  defendants 
intended  that  by  the  oonvendon  of  the  absolute  power  originally  vested 
the  direetoTB,  of  providing  for  the  payment  of  the  price  of  the  concession 
id  the  other  preliminazy  expenses  out  of  the  funds  of  the  company,  into  a 
>wer  conditional  upon  ratification  by  a  general  meeting,  and  by  requiring 
le  board  to  be  locatedat  Vienna,  their  position  was  entirely  altered;  that 

was  never  contemplated  that  they,  the  assignees  of  the  concession, 
lonid  bear  these  expenses  out  of  their  own  pockets ;  that  they  had  been 
iduced  to  enter  into  the  agreement  from  their  knowledge  that  the  London 
ipitalists  with  v^iom  they  were  associated,  andby  v^m  the  future  com- 
my  was  intended  to  be  formed,  would  at  once  exercise  their  powers  for 
Le  purpose  of  appropriating  the  necessary  funds  to  the  discharge  of  their 
abilities ;  tiiat  thus  their  position  became  substantially  different ;  and 
lat  in  ihia  state  of  things,  which  neither  they  nor  the  concessionaires  had 
mtemplated,  they  were  released  from  their  part  of  the  contract,  whidi 
ley  had  entered  into  <mly  on  the  basis  of  the  statutes  as  they  stood,  and 
le  adoption  of  idiicb  by  the  government  was  expected  by  both  parties. 
t  waa  an  undoubted  fact  that  the  alteration  of  the  statutes  materially 
Itered  the  position  of  the  defendants,  and  in  the  end  seriously  damnified 
^m.  The  boerd  of  directors  having  been  iq[ypoiinted  at  Vienna,  dedinad 
>  act  unless  relieved  from  the  re^Kmsibility  of  erercising  the  powers 
eited  in  them,  subject  to  confirmation  by  a  general  meeting  of  the  ahare- 
olden,  of  resolving  to  appropriate  the  funds  of  the  company  to  the  pur- 
ose  of  sitis^jing  the  dainis  of  the  concessionairee  under  the  agreement,  or 


f 


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the  preliminaiy  exx)eii8e8,  and  they  broke  np  t 

In  answer  to  this  defence,  it  was  contended — 1 

in  no  respect  conditional  upon  the  adoption  of 

government  in  their  original  form ;  that  thespir 

ment  was  that  the  defendants  should  take  the 

of  the  concessionaires  in  the  preliminary  "  co 

according  to  established  practice,  to  an  eng£ 

government,  on  the  approval  of  the  statutes 

grant  a  definitive  concession,  and  that  these 

transferred  by  the  concessionaires,  then,  provi 

their  obligation  of  transferring  the  definitive 

parties  wore  not  aflfected  by  the  alteration  of  i 

stood  that  it  was  only  inchoate  rights  which  "w 

Austrian  government  reserved  to  itself  the  righ 

tion  in  the  statutes  as  a  condition  of  the  final 

contended  for  the  plaintiffs,  that,  even  suppos 

in  such  material  respects  that  the  concessic 

contract  could  not  be  avoided  unless  it  wa 

still  less  if    adopted  and  acted  upon ;    and 

defendants,  with  full  knowledge  of  the  altera 

upon  the  agreement,  and  had  thereby  precli 

diating,  even  if  there  was  not  a  lapse  of  a 

election  to  abandon.    After  stating  the  materi 

of   delay,  in  substance   as   above   mentioned 

Two  questions  present  themselves  on  the  fa 

of  the  alterations  made  in  the  statutes  by  t] 

ants  were  relieved  from  the  obligations  unde 

whether,  if  so,  they  were  precluded  from  tal 

tions,  and  from  annulling  the  contract  by  rea 

or  omitted  to  be  done  by  them  after  these  alt 

ledge.    The  first  question  is  one  of  considera 

cessary  to  determine  it,  because,  upon  the  othe 

that  our  judgment  must  be  for  the  plaintiflis 

purpose,  that  the   alterations  in  the  statute 

interests  of  the  defendants,  and  displaced  th 

were  acting  to  such  an  extent  as  to  authorise 

contract,  the  effect  of  these  alterations  was  r 

nullity.     The  plaintiff?  could  not  have  treat 

defendants  could  have  insisted  upon  its  fulfiln 

directors  had  not  refused  to  act,  and  if  the  c 

had  ratified   the   application  of  funds   to  t 

could  have  insisted  upon  the  transfer  of   tl 

the    plaintiffs  would  have  been  compelled 

then,  was  subsisting,  and  one   which,  if   t" 

avoided,  they  might  also  have  adopted  and  in 

to  us  that  the  defendants,  so  far  from  repudi 

of  the  alterations,  adopted  and  acted  on  the 

plaintiffs  to  transfer  to  them  the  concession 

statutes.    Besides  this  there  was  an  actual  al 

basis  of  the  altered  statutes.    All  these  acts  a 

the  contract  by  the  defendants,  and  a  waiver  i 

the  ground  of  an  al  teration  of  the  statutes.    Ani 

option,  they  were  bound  to  exercise  it  in  a  r 

aware  of  the  alteration   of  the  statutes  earJ 

allowed  the  formation  of  the  company  to  go  o 


■  :'fL 


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loe  withont  any  objection,  and  they  took  no  exception  nntil  after  the 
khdrawal  of  the  Austrian  directors  at  the  end  of  October ;  and  we  think 
it  six  weeks  was  an  unreasonable  time  to  take  to  decide  upon  adopting 
rejecting  the  contract.  It  is  obvious  that  such  delay  must  have  been 
iterially  injurious  to  the  concessionaires,  as  it  deprived  them  for  so  long 
ime  of  the  opportimity  of  securing  other  capitalists  to  whom  to  transfer 
iir  rights.  We  are  of  opinion,  therefore,  that  our  judgment  must  be  for 
)  plamtifis.  All  that  remains  is  to  consider  the  question  of  damages,  as 
which  it  is  to  be  considered  that  the  plaintiffs  lost  all  benefit  to  be 
rived  from  their  concession.  We  may  fairly  take  the  value  of  the  con- 
sion  to  have  been  what  the  defendants  had  agreed  to  give  for  it — ^that 
£10,000  in  cash  and  £10,000  in  shares  of  the  bank.  The  plaintiffs, 
nrefore,  are  entitled  to  recover  £10,000  and  the  value  of  the  shares, 
t  as  to  the  value  of  the  shares  it  is  difficult  to  form  an  estimate.  There 
s  nothing  to  bind  the  defendants  to  go  on  with  the  company ;  they  were 
liberty  to  throw  up  the  scheme,  and  retirm  the  deposits,  and  dissolve 
»  company ;  and  such,  in  fact,  was  the  ultimate  result.  It  is  impossible, 
der  these  circumstances,  to  assign  any  real  value  to  the  shares  which 
ght  have  been  handed  over  to  the  plaintiffs  as  performance  of  the  con- 
ct.  We  do  not,  therefore,  feel  warranted  in  awarding  substantial 
nages  to  the  plaintiffs  in  respect  of  the  value  of  the  shares,  as  it  would 
merely  nominal.  In  effect,  therefore,  our  judgment  ha  for  the  plaintiffs 
the  sum  of  £10,000,  and  also  for  the  expenses,  the  amount  of  which  was 
be  determined  by  arbitration. 

[t  wafl  stated  to  be  the  intention  of  the  defendants  to  take  the  case,  by 
[>eal,  to  the  House  of  Lords. 


R   COMPANIES  ACT. — THE  CASE  OF  MB.  JAMES  B.   HICWS. — BE  THE  BANK 
OP  HINDUSTAN,  CHINA,  AND  JAPAN,  LIMITED. 

LIS  case  was  decided  in  Chancery  by  Vice- Chancellor  Sir  W.  P.  Wood, 
the  29th  June. 

Lt  was  a  motion  under  section  35  of  the  Companies  Act,  1862,  that  the 
pster  of  members  of  this  bank  might  be  rectified  by  striking  out  there- 
»nL  the  name  of  the  applicant,  Mr.  James  Brooksbank  Higos. 
In  a  similar  application  before  the  Master  of  the  Rolls  a  aix»  Los  suc- 
xied  in  getting  his  name  moved  from  the  register,  and  as  his  case^ 
lich  was  made  upon  the  same  state  of  facts  wi&  the  present,  was  fully 
sorted  in.  the  jSanfcers'  Magaaine  for  July,  a  short  statement  only 
the  circumstances  on  which  the  application  was  based  will  be  suffi- 
oit. 

It  appeared  that  on  the  22nd  of  April,  1864,  a  joint-stock  banking 
mpany  was  registered  by  the  name  of  the  Imperial  Bank  of  China, 
dia,  and  Japan ^  Limited,  and  in  July  of  that  year  Mr.  Higgs  became 
e  regiatereiL  holder  of  50  shares  in  the  company.  About  this  time 
gotiations  were  entered  iato  between  the  board  of  directors  of  the 
iperijil  Bank  of  Chma,  luiiia,  and  Japan  and  the  board  of  directors  of 
e  Bank  of  Hindustan  ior  an  amalgamation  of  the  Imperial  Bank  with 
e  Bank  of  Hindustan.  The  latter  bank  was  registered  in  1862,  and  its 
l>ital  was  divided  into  sliares  of  £100  each.  On  the  24th  July,  1864, 
ti  manager  of  the  Imperial  Bank  forwarded  to  their  shareholders  a 
rcular  stating  that  the  negotiations  for  an  amalgamation  had  been 
i  flight  to  a  HUCceMful  issue,  and  that  as  early  as  practicable,  in  accord- 
ice  with  the  articles  of  aiSBociation,  an  extraordinary  general  meeting  of 


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the  sliareholders  of  both  companies  wotild  b 

arrangements,  previous  to  which  all  details  of 

before  the  shareholders.    This  circular  was  fol 

10th  of  August,  1864,  stating  in  substance  t 

of  which  the  first  was  that  20,000  new  shares  c 

Hindustan  were  to  be  issued  to  the  holders  < 

each  in  the  Imperial  Bank.     The  issue  was  to 

share,  and  £5  x)er  share  of  the  premium  to  b 

.  of  the  united  bank,  and  the  remaining  £1  pe 

'  pay  off  the  preliminary  expenses.     On  the  25t 

of   September,  1864,  extraordinary    general 

Bank  were  held,  at  which  resolutions  were  a( 

raent  of  the  24th  of  August,  1864,  between  th 

mations,  and  directing  that  the  Imperial  Bai 

and  appointing  liquidators  for  the  purpose. 

adopted  to  the  effect  following—"  That  the  1 

feceive    in    compensation,    or    part    compe 

and    property   of    this   company    (the   Impe 

Bank    of    Hindustan    upon    the    terms    spe 

and    if    any   member  shall    express   his   di 

by  a  notice  in   writing   to  the  liquidators 

after  the  meeting  at  which  the  resolution  is  pa 

liquidator  to  purchase  the  interest  of  such  dis 

dators  shall  raise  the  purchase-money  to  l 

'  membel"  by  the  sale  of  the  share  or  shares 

which,  under  the  terms  of  the  agreement,  won 

dissentient  member."      Mr.  Higgs  went  abro 

on  the  Continent  until  the  24th  of  September 

the  meetings  nor  give  a  proxy,  and  on  his  ret 

his  office  a  circular  from  the  secretary  of  the  I 

him  that  in  right  of  his  50  shares  in  the  Im] 

under  the  terms  of  arrangement  to  an   alloi 

shares  in  the  Bank  of  Hindustan  at  £6  per  shj 

*  "  To  entitle  you  to  the  above  option  you  must 

transmit  the  same  to  this  bank  on  or  before  1 

at  once  called  at  the  offices  of  the  Hindustai 

[  there  whom  he  believed  to  be  the  secretary 

]  whatever  to  do  with  the  Bank  of  Hindustan, 

(arrangement  entirely.     In  the  meantime  th 
entered  on  the  register  of  shareholders  in  th( 
I  holder  of  60  shares,  and  in  May  last  these  si 

J  for  non-payment  of  calls.     Mr.  Higgs  now  ap 

}  Companies  Act,  1862,  to  have  his  name  remo^ 

,  *  ground  that  he  was  a  shareholder  in  the  Im] 

Bank  of  Hindustan,  in  which  company  he  had 
nor  bought  any  shares,  nor  in  any  way  acted  i 
Mr.  Holt,  Q.C.,  and  Mr.  J.  N.  Higgins,  ii 
;;  contended  that  the  arrangement  was  ultra  t 

panics  Act,  1862,  and  also  under  the  articles  ( 
I  Bank,  and  was  in  no  way  binding  upon  Mr.  H 

also  unreasonable  in  its  provisions,  inasmuch  j 
the  shareholders,  and  compelled  them  to  pay  s 
iipon  the  new  shares,  of  which  £1  per  share,  a 
U'  dt*voted  to  "preliminary  expenses." 
Mr.  Giffard,  Q.O.,  Mr.  Jessel,  Q.C.,  and  1^ 


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ink  of  Hindustan,  oonteuded  that  Mr.  Hiffgs,  by  oxecnting  the  article$» 
association  in  the  Imperial  Bank,  had  authorised  the  directors  tu 
lalgamate  and  made  them  his  agents  for  the  purchase  of  shares  in 
other  company.  If  the  directors  had  power  by  the  articles  of  associa- 
m  and  sec.  161  of  the  Companies  Act,  1862,  to  declare  him  a  share- 
•Ider  in  the  Bank  of  Hindustan,  and  it  was  submitted  that  they  were  so 
thorised,  then  they  had  fully  exercised  that  power.  But  in  any  case 
r.  Higgs  was  bound  by  acquiescence.  If  he  disapproved  this  arrange- 
3nt,  which  was  carried  out  on  terms  that  had  been  sanctioned  by 
e  directors  of  both  companies,  he  ought  to  have  taken  some  formal 
ips  to  repudiate  it  within  the  time  limited  by  the  circdlar ;  and  it  was 

>  answer  to  say  that  he  was  abroad  at  the  time,  as  if  he  went  on  the 
»ntinent  and  1^  no  one  to  look  after  his  affairs,  that  was  his  own  fault. 
e  had  retained  the  sharea  for  nearly  a  whole  year,  and  now  when  they 
id  fallen  in  the  market  he  had  sought  for  the  first  time  to  escape  from 
kbility.  Assuming  that  he  had  been  anxioxis  to  retain  these  shares  the 
rectors  could  not  have  deprived  him  of  them  on  the  strength  of  that 
sual  conversation  in  the  office  of  the  bank  on  the  24th  of  September, 
i64,  whidi  certainly  did  not  amount  to  a  repudiation  of  the  shares. 

The  Yioe-Ghancellor  (without  hearing  a  reply)  said  that  he  had  no 
ubt  as  to  the  order  that  he  ought  to  make  upon  the  present  occasion. 
10  argument  on  behalf  of  the  bauk  proceeded  on  two  grotmds — namely, 
^iy  upon  sec  161  of  the  Companies  Act,  1862 ;  and,  second,  upon  th« 
ovisions  of  the  articles  of  association  of  the  Imperial  Bank,  which  were, 
course,  binding  upon  the  shareholders  of  that  company.  It  was  also 
-ged  on  behalf  of  the  bank  that  the  present  applicant  had  full  notice  of 
erything  that  was  beinff  done,  while  the  arrangement  was  in  course  of 
;ing  carried  out,  and  that  he  had  barred  himself  from  disputing  the 
lidity  of  the  arrangement  by  his  acquiescence  and  delay.  As  to  sec.  161, 
)  was  of  opinion  that  its  {provisions  did  not  authorise  any  such  arrange- 
ent,  and  Ijiat  the  Bank  of  Hindustan  could  not  thereunder  compel  the 
>plicant  to  become,  or  treat  him  as  having  become,  a  member  of  that 
mpany.  By  the  articles  of  association  the  directors  were,  no  doubt, 
ithorised  to  ''  amalgamate  "  the  Imperial  Bank  with  another  company  of 
similar  character.  He  might  observe  that  no  legal  or  technical  definition 
as  to  be  found  of  the  term  ''  amalgamate,' '  and  it  was  very  difficult  to 
y  what  was  its  exact  meaning.    But  whatever  meaning  might  be  given 

>  the  term,  it  certainly  did  not  imply  an  authority  from  a  shareholder  to 
L3  directors  for  them  to  execute  the  deed  of  another  company  in  his  name, 
id  make  him  liable  for  all  the  engagements  of  that  company.  If  the 
rticles  of  association  were  identical  in  both  companies,  as  might  possibly 
3  the  case,  then  no  new  obligations  would  be  incurred,  and  the  (ufficulty 
ould  be  less.  The  proper  notion,  perhaps,  of  an  amalgamation  would  be 
here  two  companies  coalesced,  and,  each  abandoning  Uieir  original  arti- 
les  of  association,  proceeded  thenceforth  imder  a  new  deed  of  e^tlement 
r  new  articles.  With  respect  to  acquiescence  and  alleged  laches,  he  was 
q[uaLLyin  favour  of  the  applicant.  His  evidence  was  imcontradicied  as  to 
is  having  in  no  way  accepted  or  complied  with  the  allotment  of  shares  in 
^e  Bank  of  Hindustan,  or  any  part  of  the  arrangement.  On  the  contrary, 
e  called  at  the  bank  immediately  on  his  return  from  abroad  and  dis- 
ioctly  repudiated  the  arrangement.  It  was  remarkable  that  the  circular 
mt  forth  by  the  Bank  of  Hindustan  reqidred  the  shareholders  of  the  Im< 
lenal  Bank  to  exercise  their  option,  and  si^  the  enclosed  form  to  be 
ransmitted  to  the  bank  by  a  certain  day.  [railing  to  comply  with  this 
hey  were  not  to  have  the  shares.    Mr.  Higgs  did  not  do  so,  and  he  took 


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932  Legal  Miscellanij 

no  notice  whatever  of  the  circulars,  except  to 
action.  How,  then,  in  the  face  of  their  own 
Hindustan  insist  upon  treating  as  a  sharehol 
comply  with  its  terms  ?  But  independently 
cence  and  laches,  on  the  higher  grounds  alreac 
bound  by  the  arrangement,  and  was  entitled 
from  the  register.     The  bank  must  pay  the  co 


SINOULAE  ACTION  AGAINST  A  BANK  CLERK  F( 
i  THE  MERCANTILE  BANK  OF  NEW  Y 

i  This  case  was  tried  in  the  Court  of  Queen's  1 

-Justice,  on  the  13th  July. 

It  was  an  action  to  recover  certain  money 

to  and  for  the  use  of  the  plaintiffs.    The  d 

debted ;  payment ;  that  the  cause  of  action  ] 

years ;  that  the  plaintiflGs  had  accepted  certain 

amount  claimed ;  and  lastly,  that  the  plaintifi 

and  entitled  to  sue — but  the  latter  plea  was  w 

Mr.  Karslake,  Q.C.,  Mr.  J.  Brown,  Q.C.,  j 

^counsel  for  the  plaintifb  ;  Mr.  Clarke  was  cou 

The  case  involved  an  inquiry  into  very  min 

of  the  evidence  comprised  depositions  taken  i 

already  been  twice  before  the  public  under  th< 

Bow  Street  and  afterwards  in  the  Queen's  ] 

plaintiffs  are  a  banking  association,  establishe 

they  resemble  in  some  respects  a  joint-stoc 

country.    The  defendant  up  to  1864  was  what 

the  bank,  and  he  had  charge  of  the  money  of 

As  first  paying  teller  it  was  the  defendant's  di 

first  teller's  proofs,  into  which  he  had  to  ent 

ceived  and  the  sums  he  had  paid  out  on  accc 

28th  October,  1864,  the  defendant  professed  to 

to  the  practice  of  the  bank,  whereby  he  she 

i'  dollars  65  cents  in  his  possession  in  the  coffer 

T  of  the  day  the  defendant  informed  Mr.  Hind, 

J  felt  unwell,  and  as  it  was  probable  he  would 

i  following  day,  he  asked  that  gentleman  to  at 

*'  wards,  however,  transpired  that  on  the  folio 

»  the  defendant  left  New  York  by  the  Teutonia 

'^*  in  course  of  time  arrived  in  this  country.    ' 

defendant  had  absconded  from  New  York  wi 

2nd  November,  and  then  an  investigation  wa£ 

accoimts,  when  it  was  discovered  there  was  a 

tind  currency  notes  to  the  value  of  207,028  c 

followed  to  this  country,  and  afterwards  arre 

the  extradition  treaty ;  and  on  an  applicatio 

Bench,  that  court  held  that  the  local  act  of  ^ 

he  was  released.     The  defendant  was  then  a 

about  to  leave  this  country  for  Germany,  and  i 

required  bail  he  had  had  to  remain  in  prison  i 

claim  against  the  defendant  was  between   £ 

estimated  according  to  the  value  of  the  curre 


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raction  of  the  money.  The  money  in  defendant's  possession  was  kept  in 
itrong  room  under  lock  and  key,  the  key  being  kept  by  him.  The  de- 
tulant  had  on  a  former  occasion  expressed  his  extreme  annoyance  at  a 
pposed  discrepancy  in  one  of  the  customer's  accounts,  but  it  was  after- 
urds  found  to  be  correct.  Just,  however,  before  the  defendant  left  New 
>rk,  Mr.  Black,  one  of  the  managers  of  the  bank,  had  expressed  his  in- 
Qtion  of  flTamining  the  currency  in  the  defendajit's  possession,  and  it 
IS  asserted,  on  the  part  of  the  plaintifi[s,  that  the  defendant  had  excused 
s  leaving  for  England  because  he  felt  so  much  insulted  at  the  proposed 
amination  of  his  accounts,  and,  further,  that  he  had  described  the 
rectors  as  a  set  of  ^  old  fogies,"  and  that,  as  he  did  not  wish  them  to. 
low  anything  about  his  speculations,  he  had  desired  certain  parties  not 
give  them  any  information  respecting  them.  The  suggestion  on  the 
ft  of  the  defendant  was  that  as  tae  directors  allowed  customers  to  enter 
e  strong  room  and  examine  their  securities  and  remove  them,  if  they 
ought  proper,  it  was  probable  that  some  other  person  had  taken  the 
>ney.  To  that  the  directors  replied  that,  although  one  or  two  customers 
ght  have  been  allowed  to  enter  the  strong  room,  no  one  could  go  there 
come  out  with  anything,  without  being  seen  by  the  president,  who  com- 
mded  a  view  of  the  strong  room  from  his  desk. 

Mr.  Clarke,  in  addressing  the  jury  for  the  defendant,  asked  their  for- 
arance  in  the  absence  of  one  learned  Serjeant  and  two  Queen's  counsel, 
10  had  been  retained,  and  it  had  devolvea  upon  him  to  conduct  the  case,, 
lich  was  one  of  considerable  importance  to  his  client.  The  charge  was 
e  more  of  a  criminal  character  uian  a  civil  one,  and  there  could  be  no 
ubt  that  if  their  verdict  was  against  the  defendant  it  would  brand  him 
th  embezzlement.  By  an  indiscretion  in  absconding  himself  from  New 
»Tk,  after  it  was  intimated  that  an  examination  of  the  currency  in  his 
ssesaion  would  take  place,  he  had  laid  himself  open  to  the  criminal 
arge ;  but  it  by  no  means  necessarily  implied  guilt.  The  learned 
onsel  remarked  on  the  lax  manner  in  which  the  plaintiffs  conducted 
eir  business,  and  to  the  especial  fact  that  three  or  four  persons  had  keys 
the  safe  door,  but  not  the  defendant,  who  was  most  interested  in  the 
fety  of  the  money,  though  he  kept  the  key  of  the  compartment  where 
s  money  was  kept.  It  was  contended  that  sufficient  proof  had  not 
en  given  to  show  that  the  defendant  had  abstracted  the  money,  but 
ther  that  it  led  to  the  supposition  that  it  was  taken  by  some  other 
rson.  It  would  also  appear  that  the  business  of  the  bank  was  so  large, 
d  the  pressure  was  so  great  on  the  few  clerks  kept,  that  it  was  impossible 
accurately  count  the  specie  or  the  currency  daily,  and  no  doubt  the 
ficien<^  might  have  arisen  wholly  or  in  part  from  that  circumstance. 
e  should  caU  the  defendant  before  them,  and  he  would  inform  them  how 
e  business  was  conducted  in  New  York,  The  currency  had  not  been 
unted  or  checked  for  two  years,  and  there  was  even  now  a  disinclination 
^  the  part  of  the  bank  to  count  their  assets  and  really  ascertain  whether 
not  there  was  the  alleged  deficiency.  It  was  a  mere  question  of  pre- 
iTijTtion^  ;iud  lie  felt  certain  the  jury  would  not  give  a  verdict  upon  such 
^  itisf iictory  evi<lei  i  ce .  The  cashier  had  a  duplicate  key  of  the  defendant's 
sipartment,  and  as  it  was  kept  in  his  drawer  it  was  accessible  to  others, 
id  might  have  hetm  used  without  his  or  the  defendant's  knowledge.  In 
ct,  it  was  misAod  for  some  time ;  and  might  not  the  person  who  took  it 
iXQ  helped  himself  to  some  of  the  money  1 

Cbarles  Windsor,  the  defendant,  was  called.  He  deposed — I  have  been 
r  fourteen  years  paying  clerk  in  the  plaintiffs'  bank.  I  kept  the  keys 
my  compartment  in  the  safe,  but  not  of  the  iron  doors.    The  latter 


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934  Legal  Mkcellan 

were  always  open  when  I  came  in  the  moi 
evening.  The  lock  of  the  iron  doors  was  a  o 
there  was  no  key  to  it.  I  attended  the  bufiin 
to  half -past  three  o'clock.  The  same  descrip 
partment  where  the  money  was  kept,  and  also 
and  to  all  appearance  one  key  unlocked  the 
boxes  were  kept  over  the  compartments.  S 
clerks,  and  porters,  were  in  the  habit  of  going 
The  boxes  contained  securities  placed  with 
Many  of  them  were  taken  away  every  mom 
at  night.  The  presi  lent's  seat  was  near  the 
was  away  from  the  bank  two  hours  every  di 
meetings  of  the  directors.  The  currency  was  ] 
of  paper  round  them,  and  the  amount  mark< 
generally  handed  to  me  about  middle  day. 
took  them  from  the  receiving-teller  as  they  t 
been  impossible  for  me  to  hav«  counted  tl 
took  two  or  three  assistants  to  make  up  t 
remained  on  the  counter  until  I  had  made  ^ 
I  placed  them  in  the  vault ;  the  packages  we 
the  drawers  were  only  eight  or  nine  inches  c 
them  away  until  the  evening ;  they  were  m 
cash  of  the  bank  had  not  been  counted  for  tw 
was  then  counted  by  the  president  and  the 
complained  that  the  vault  was  not  safe,  but 
the  old  bank  I  had  the  combination  of  the  1( 
vault,  but  I  had  not  that  at  the  new  bank.  ] 
of  the  compartments.  On  one  occasion  I  left 
I  asked  Mr.  Blake,  the  cashier  for  his,  he  coi 
about  four  months  before  I  left  the  bank.  O: 
in  the  bank  which  fitted  the  locks.  I  have  ] 
I  gave  9,000  dollars  for  my  estate  on  Staten  '. 
I  paid  for  it  out  of  14,000  dollars  left  me  by  s 
For  the  last  18  months  I  have  kept  two  hoi 
the  only  change  I  have  made  in  myestablishi 
OdisviUe  Copper  Company,  and  I  held  one-th 
tal  was  500,000  dollars,  but  only  5,000  dollars' 
taken,  and  that  had  been  used  in  developing 
dollars  in  addition  to  the  stock  sold.  The  c 
the  currency  was  proposed  by  the  cashier,  ] 
ficiency.  Mr.  Blake  had  examined  the  specie 
was  about  eight  or  nine  days  before  I  left.  \ 
three  o'clock  and  said  he  wanted  to  count 
coimt  the  currency.  I  told  him  it  was  an  unl 
to  examine  the  cash  alone,  tliat  I  thought  h 
and  that  if  it  must  be  done  it  must  be  ooun 
the  presence  of  the  president  and  the  director 
Presuming  that  the  currency  would  be  con 
however,  was  not  done),  I  determined  to  strai 
it  ready  should  the  directors  be  disposed  to  o 
prise  that  there  was  a  deficiency  in  three  pa< 
bank  for  some  time,  amounting  in  the  whole 
next  morning  when  I  came  to  the  bank  it  waf 
tion  it  to  the  officials  of  the  bank,  but  I  did 
was  in  the  power  of  tlie  bank,  and  that  tl 


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gainst  me  which  would  not  allow  me  the  means  of  defence  or  explanation. 
never  appropriated  any  of  the  q>ecie  or  currency  to  my  own  nse. 
CrosB-ezamined  by  Mr.  Kandake. — ^I  add  my  property  to  my  brother- 
I- law  two  or  three  weeks  previoos  to  my  discoyering  the  deficiency  in  the 
urency.  The  deed  conveying  the  property  was  executed  between  the 
Hh  and  25th  October.  My  brother-in-law  had  practised  as  a  dentist  for 
iree  or  four  years  in  New  York,  and  he  had  lived  daring  that  time  in  my 
)U8e  as  a  guest.  Part  of  thai  time  he  was  studying  as  well  as  practising 
intistiy.  Before  thai  he  was  engaged  in  a  business  in  Chicago ;  that 
as  five  or  six  years  a^.  There  was  a  6,000  dollar  mortgage  upon  my 
-operty.  My  brother-in-law  gave  me  80,000  dollars  for  the  kind.  I  left 
y  wife  and  daughter  there  when  I  came  to  England  in  the  Teutonia,  and 
understand  tttey  have  been  living  there  with  lum  ever  since.  He  bought 
'erything  I  possessed.  He  gave  me  5,000  dollars  for  the  personal  pro- 
Tty.  The  deed  was  executed  on  or  about  the  23rd  October,  and  I  left 
i  the  30th.  No  mon^  passed  when  I  sold  my  property  to  Jacob  Bodeen, 
y  brother-in-law.  I  naii  two  building  plots  of  ground  in  New  York, 
it  I  do  not  know  what  has  become  of  them.  I  have  heard  that  the  bank 
M  attached  them.  I  had  speculated  with  Bodeen's  money  in  purdiasing 
)ld  and  stodL  for  him.  I  was  to  hold  his  money  and  give  him  notes 
cm  time  to  time ;  and  I  had  given  him  14,000  dollars  currency,  and  I 
^ed  him  6fi00  dollars  in  cash.  There  was  some  profit.  I  kept  memo- 
mda,  but  they  have  been  destroyed.  When  I  discovered  the  deficiency  I 
itered  it  in  my  book  as  charaeable  to  the  vault,  it  being  the  reserved 
ioney  of  the  bank.  I  remained  in  the  bank  sev^i  days  after  I  discovered 
te  deficiency.  It  would  appear  from  my  book  that  there  was  the  proper 
notmt  in  the  vault.  The  practice  was  to  keep  the  specie  in  6,000  dollar 
igi.  My  private  niemorandum  book  does  not  show  tiie  deficiency  of  the 
^7,000  dollars.  I  purposely  omitted  it.  My  brother-in-law  met  me  at 
ie  steamer  with  my  ctfpet  bag.  I  had  a  doak  and  a  bundle  of  things  I 
mid  not  get  into  my  bag ;  that  was  all  the  luggage  I  had  to  come  to 
ngland.  X  entered  my  name  as  Wilson  in  the  steamer's  book.  About 
fortnight  or  a  month  before  I  left  I  asked  the  messenger  to  get  me  two 
ags  of  gold,  each  containing  5,000  dollars,  and  to  bring  them  into  the 
£er  entranoe  of  the  bank — ^that  is  through  the  cellar.  The  bank's  gold, 
hich  was  brought  at  the  same  time,  was  brought  in  the  usual  way.  My 
¥0  baffs  of  gdd  where  put  in  a  cupboard  in  the  cellar.  He  brought 
le  gold  for  me  from  a  broker  in  Wall  Street,  in  exdiange  for  notes.  I 
)ld  the  messenger,  as  I  always  did  in  reference  to  my  own  affairs,  not  to 
lention  it  to  the  ofiScers  of  the  bank.  He  had  fetdbed  gold  for  me  on 
frmer  occasions  that  had  been  got  in  exchange  for  notes.  I  afterwards 
ut  the  two  bags  in  one  of  my  compartments  in  the  vaults,  where  they 
imained  a  few  days,  and  then  I  sold  them  to  a  broker  in  Wall  Street.  I 
^t  one  bag  by  a  messenger,  and  the  other  by  a  derk  in  the  bank.  I 
^ived  payment  for  them  in  cheques,  which  I  cashed  into  notes, 
ith  whidi  1  bought  some  stock.  The  broker  has  still  the  stock.  I  made 
00  or  300  dollars  by  the  transaction.  I  frequently  turned  over  money  in 
bat  way.  My  saleunjr  at  the  bank  was  2,600  dollars  a  year.  I  had  a 
>rother-in-law  (another  Bodeen^  in  the  bank ;  he  was  not  my  assistant, 
le  was  appointed  and  retained  in  the  bank  at  my  solicitation.  He  was 
he  clerk  who  took  one  of  the  bags  of  gold  for  me. 

Ke-examined  :  In  August  last  Mr.  Hyde,  one  of  the  dorks,  discovered 
iuring  my  vacation  a  deficiency  of  10,000  dollars,  but  we  neither  reported 
t,  thinking  it  would  be  made  right  Bome  tkne  or  other.  The  deficiency 
7.14  in  Mr.  Hyde's  daily  cash  accounts,  and  not  money  had  from  the  vault. 


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936  .Legal  Miscella 

The  two  bags  of  gold  were  purchased  wiil 
law's  notes.  They  did  not,  nor  any  part  of 
never  carried  gold  oat  of  the  bank. 

Albert  Bodeen,  formerly  clerk  in  the  1 

defendant  left,  the  gold  and  currency  wei 

between  one  counting  and  the  other  a  6, 

•:  missed.    Mr.  Arnold,  the  president,  said  IV 

have  stolen  it,  as  they  only  had  had  to  wit] 

i  In  cross-examination,  he  said  he  did  not 

dollars  when  he  was  examined  in  l^ew  l 

>  about  it«    He  was  now  in  partnerhip  with  ' 

J.  York. 

;  Mr.  Edward  Clarke  then  reviewed  the  ev 

and  ability  that  there  was  not  the  sligh 

defendant  with  having  abstracted  this  mon 

Mr.  Karslake  then  summed  up,  remarkii 

suffered  from  his  learned  friend's  advoca 

learned  friend's  leaders,  for  he  had  displaye 

.,  courage  in  defending  a  case  of  so  much  imp 

,  He  repudiated  the  charge  of  laxity  in  the  i 

The  Lord  Chief  Justice,  in  summing  up, 

i'  counsel  for  the  defendant  that  the  real  is; 

had  stolen  the  gold  and  the  notes.    If,  h 

.1  elusion,  although  the  defendant  could  noi 

he  was,  however,  civilly  resixjnsible  for  th« 

last  counting  took  place  in  1862  everytt 

;  defendant  left  New  York  a  large  deficien 

J\  gold  and  in  the  currency  notes.    After  alli 

evidence  given  by  the  defendant  and  that 

York,  which  give  a  very  different  comp] 

evidence  given  by  the  defendant — ^referri 

of  the  discovery  of  the  deficiency  of  197,00 

t'  said  that  the  course  a  man  should  adopt  y 

if  he  knew  he  was  honest  and  was  not  in 

as  honest  men  seldom  entertain,  he  ne€ 

J  should  have  been  to  have  at  once  called  th 

j^  of  such  grave  importance,  with  reference 

^  bank,  but  also  to  his  own  personal  char: 

f  making  a  communication  to  the  bank  au 

1  in  his  book  daily,  as  if  the  amoimt  was  ac 

•*  he  absconded,  but  before  doing  that  he  mi 

;  when  he  was  apprehended  in  England  he  h 

j  ance.    The  whole  proceeding  was  one  of 

On  the  other  hand,  there  was  nothing  to  she 

co-extensive  with  the  money  deficient,  o; 

increased  proportionately,  or  that  he  had  « 

lations. 

.)  The  Jury,  after  being  locked  up  over  i 

with  a  verdict  for  the  plaintiffs,  at  the  B£ 

approval  of  the  lax  manner  in  which  the  b 

The  verdict  was  entered  for  the  plaintifS 

r  This  terminated  the  sittings. 

I  — 

I 

i 


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ll^porls  of  ^mA'S^iotk  %Knku. 


BANK  OF  NEW  SOUTH  WALES. 

H£  half-yearly  general  meeting  of  the  shareholders  of  the  Bank  of  New 

>uth  Wdea  was  held  in  Sidney  on  the  26th  day  of  April  last. 

The  Hod.  G.  Allen,  M.L.C.,  in  the  chair. 

The  Secretary  read  the  following  report  and  balance-sheet : — 

The  directors  have  the  pleasure  to  report  a  steady  progress  in  the  busi- 

as  of  the  baok  dnring  the  past  half-year,  and  to  submit  herewith  a  state- 

ent  of  its  assets  and  liabilities  on  the  31st  ultimo : — 


le  net  proBts  for  that  period,  after  dedactmff  rebate  on 
current  bilb,  interest  on  deposits,  proyidinK  tor  bad  and 
doubtful  debts,  and  reducing  valuation  of  bank  premises  and 
ctfficefainitu re,  amount  to     

>  which  is  to  be  added — 

coTeries  from  debts  preyiously  written  off  as  bad  or  doubtful 
idirided  bahince  from  last  half-year       

Giving  for  distribution       


Xd6,d51    8  10 


1,483  11    0 
2,809  19    8 

£90,844  19    6 


hich  the  directors  appropriate  as  follows  : — 

pajrment  of  dividend  at  the  rate  of  15  per  cent,  per  annum  on 
>ld  stock  for  six  months,  £69,846 ;  on  new  ditto  for  5  months, 

it£f9Wtm»»  •••  ...  .•■  ■■•  •••  •••  •••  •••  ••• 

bonus  at  the  rate  of  3  per  cent,  per  annum  on  capital  paid 
balance  carried  to  "  Profit  and  Loss,'*  new  account 


£72,646    0  0 

14,529    4  0 

3,669  15  6 

£90,844  19  6 


By  the  final  pajmeni'ij  due  this  day,  on  account  of  the  new  capital,  the 

ik  stock  Eu^comit  will  be  increased  to  £190009000,  and  the  reserve  fund 

£333,333-  6^.  Sd.,  the  limits  fixed  by  the  act  of  incorporation  and  the 

<i  of  settlement. 

[>urLag  the  past  half-year  new  branches  of  the  bank  hare  been  estab* 

led  in  this  colouy  at  Quuilagai  and  Wagga  Wagga. 

iuioe  the  lofit  half-yearly  iueetin|;  the  bank  has  sustained  a  loss  in  the 

ih  of  its  late  general  manager,  Sfr.  Robert  Woodhouse,  in  recoffnition 

vrhoBe  loTjg  and  faithful  ^rvices,  the  directors  have  presented  to  hia 

lorw  the  sum  of  £1,000. 

The  T&oancy  created  at  the  board  by  the  resignation  of  Mr.  James 

adersODj  on  his  departuro  for  England  in  February  last,  was  tem- 

Mily  filled  by  the  appointment  of  Mr.  Joseph  Scaife  Willis,  who  now 

TS  himself  for  election,  aud  is  the  only  candidate. 

lie  dividenil  will  be  payable  at  the  head  office  to-morrow,  and  at  the 

nches  on  receipt  of  advice. 

For  and  on  behalf  of  the  board  of  directors, 

Geobob  Allen,  President. 


VOL.   XXV. 


73 


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Bank  of  New  South  TTi 


Aggregate  Balance-sheet,  of  the  Bank  of  New  Sou 
including  the  London  Bramh  to  aiJt  Bcccpnbet 
Branches  to  ^th  March,  1865. 

Br. 
To  bank  stock,  old  stock  £750,000,  new  stock,  £226 

Reserve  fund       ... 

Notes  in  circulation     .^ — 

Bills  payable    ...      ,^^  ^   •—      ••      •- 

Deposits  and  otber  liabilities       ...      ..•      ..♦ 
Profit  and  losa     .«>  *••      —      .—      —      


Cr. 

By  coin  and  cash  balances    ...    • ■ 

Bullion  in  hand,  and  in  transit  to  London,  31st  Ma: 

Government  securities      

Notes  of  other  banks  • 

Bank  premises        ...        ••• 

Bills  receivable,  bills  discounted,  and  other  debts 

bank         

Insurance  account 


Dr. 

1865. 


FBOFIT  AND  LOSS,  MABCH  31 S 


Mar.  31.  To  rebate  (at  current  rates)  on  bills  disc 

due  at  this  date        

To  dividend  at  the  rate  of  15  per  cent,  pe 
To  bonus  at  the  rate  of  3  per  cent,  per 

paid-up  capital         

To    balance    carried   to    profit    and     ] 
account*'        ...        • 


Cr. 

1864. 
Sept.  30.  By  amount  from  last  account 

1665. 
Mar.  31.  By  recoveries  from  bad  and  doubtful  del 
By  balance  of  half-years  profits,  after  wii 
and  doubtful  debts  .^ 


Audited  25th  April,  1865. 

John  Richj 
Faakcis  Mj 

The  report  was  adopted,  Mr.  Joseph  Scaife 
the  place  of  Mr.  James  Henderson,  and  the 
given  to  the  president  and  board  of  directors 
ment  of  the  affairs  of  the  bank. 


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BANK  OF  NEW  ZEALAND. 

early  general  meeting  of  the  proprietorfl  of  this  bsnk  was  held 
L  of  April  last,  at  the  banking-house  in  the  colony,  for  the  pnf . 
living  the  report  of  the  directors  for  the  half-year  ending  the 

38  Williamson,  president  of  the  board  of  directors,  took  the 
^ed  upon  the  secretary  to  read  the  advertisement  convening 

done  this,  the  secretary  read  the  ininutes  of  the  last  meeting, 
>  oonfinned,  and  then  proceeded  to  read  the  half-yearly  reporti 


ectors  have  much  satisfaction  in  again  laying  before  the  pro- 
I  result  of  another  half-year's  operations,  which  affords  very 
idence  of  the  continued  success  of  the  bank.  The  state  of 
roughout  the  colony  during  the  past  six  months,  combined  with 
B  of  money  in  England,  has  led  to  increased  caution  throughout 
hment,  and  the  directors  are  glad  to  be  able  to  assure  the  pro- 
^t  every  doubtful  dependency  has  been  provided  for,  and  a 
ywed  for  prospective  losses.  It  is  in  contemplation  to  initiate 
[>ank  on  1st  January,  1866,  a  guarantee  and  provident  fund  for 
of  the  establishment,  to  whidi  the  directors  recommend  the 
d  now  contribute  ^,500  as  a  free  donation ;  and  that  this 
lupplemented  hereafter  by  further  donatioiis  of  £SO0  each  for 
ree  succeeding  half-years.  The  net  profit  for  the  half-year 
&(arch,  after  providing  for  all  debts  supposed  to  be  bad  or 
id  making  a  liberal  reduction  in  bank  premises  and  furniture 
uounts  to  £60,668.  IBs,  lOd.  To  which  is  to  be  added,  imdi- 
oe  from  last  half-year,  £2,207. 18«.  Od. ;  making  a  total  avaU. 
Lsion  of  £52,876. 14«.  7d,  Of  the  above  profits,  the  directors 
the  following  appropriation  :  to  payment  of  dividend  at  the 
per  cent,  per  annum,  £22,456.  IO5.  2d, ;  to  bonus  equal  to  5 
it  annum,  £11,228.  5«. ;  to  addition  to  reserve  fund,  £15,000  ; 
,  towards  starting  guarantee  and  provident  fund,  £1,500;  to 
ried  to  profit  and  loss  ^'new  account,"  £2,691. 19$,  Sd,  Total 
9.  7d,  The  dividend  and  bonus  will  be  payable  at  head 
onday,  the  Ist  proximo,  and  at  the  branches  on   receipt  of 


jt  on  Slit  March,  including  London  office  bcUances  ^3lst  Deeemler, 
1864. 


I 
alation 


to  other  hanks 

rofit  and  loss  aocount  at  30th  September,  1864 . 

r  half-year    ... 


£485,0^ 

0 

0 

100,000 

0 

0 

297,989 

0 

0 

850,246 

1 

8 

1,194,656 

2 

1 

85,272 

8 

8 

2,207 

18 

9 

50,668  15  10 

^2,566,114 

1 

7 

Digitized  by 

G( 


940 


Bank  of  New  Zealam 


Cr. 

Coin  and  bullion    ^  _         .... 

Government  securities 

Landed  property  ...  ^    ... 

Bank  premises,  furniture  and  stationery 

Balances  due  bv  other  banks 

Notes  of  other  banks 

BilLs  receivable  and  all  other  advances 


PROFIT  AND  LOSS  ACCOUST 


Increase  of  reserve  fund  ... 

Dividend  at  the  rate  of  10  per  cent,  per  annum  ... 

Bonus  at  2^  per  cent  for  the  half-year 

Donation  towards  starting  guarantee  and  provident 

Amount  carried  to  profit  and  loss  (new  account) 


Balance  of  profit  at  30th  September,  18G4 
Net  profit  lOT  half-year    ... 


Besebve  Fusd. 

Balance  from  last  statement 

Amount  transferred  from  profits  of  past  half-year 


The  Chairman,  in  proposing  the  adoption  c 
felt  it  would  not  be  necessary  for  him  to  say  ai 
holders  that  the  prosperity  of  the  bank  was  stil 
thing  different  in  this  report  from  any  the  dir< 
duced  was  the  intention — if  they  foimd  that  t] 
form  a  guarantee  and  provident  fxmd  for  the  offi< 
tors  had  found  that  the  ofl&cers  had  seconded  tl 
institution  to  a  successfid  issue,  and  that  someth 
them  that  their  efforts  had  been  appreciated, 
need  say  anything  further,  as  the  rejwrt  said  eve 
necessary.  He  had  much  pleasure  in  prop 
report. 

Mr.  W.  Williams  seconded  the  adoption  of  t 
having  been  put  to  the  meeting,  was  carried  ne 

The  Chairman  then  said  that  there  w^as  no 
meeting,  with  the  exception  of  reading  the 
gentleman  wished  to  ask  a  question,  or  had  anj 

The  rough  minutes  were  read,  and 

Mr.  T.  Macfarlane  said  that  it  would  be  un 
separate  without  recording  their  sense  of  the  a 
officers  of  the  bank.  He  would,  therefore,  m< 
meeting  be  given  to  those  gentlemen,  and  wou] 
saying  that  he  most  cordially  concurred  in  the 
posed  guarantee  and  provident  society  among  \ 
that  it  would  secure  the  services  of  honest  and 


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941 


Mr.  D.  BnTD  seconded  the  motion,  which  was  carried. 

The  Chairman  said  that  he  had  much  pleasure  in  returning  thanks  for 
lie  Tote  that  had  been  just  recorded.  In  fact,  seeing,  or  rather  believing, 
Iiat  they  were  going  to  retire  without  making  any  motion  of  this  kind, 
le  still  felt  perfectly  satisfied  that  the  meeting  acquiesced  in  the  conduct 
»f  the  directors,  as  there  had  been  no  questions  asked  or  observations 
oade.  Bat  he  had  now  much  pleasure  in  returning  thanks  for  the  vote 
hat  had  been  proposed  by  Mr.  Macfarlane. 

The  meeting  then  separated. 


LONDON  AND  COLONIAL  BANK,  LIMITED. 

Lk  extraordinary  meeting  of  the  shareholders  was  held  on  the  3rd  Jiily, 
^t  the  London  Tavern,  Bishopsgaie  Street,  to  consider  an  agreement  for  the 
ale  of  the  assets  of  this  bank  to  the  International  Bank,  Limited ;  and 
ifio  to  consider  as  to  the  winding  up  of  this  company  voluntarily,  if  such 
agreement  for  the  sale  of  the  assets  be  confirmed,  and  to  pass  special 
esolutionsfor  giving  effect  to  the  opinions  of  the  meeting  on  the  above 
ubjects.  Mr.  John  Geary  in  the  chair.  The  notice  convening  the  meeting 
Old  the  minutes  of  the  meeting  held  a  month  since  were  read  and 
onfirmed. 

The  Chairman  said  that,  in  conformity  with  the  resolutions  carried  at 
Jie  meeting  held  a  month  ago,  the  committee  had  met,  he  might  almost 
Lay,  de  die  in  diem,  and  the  resiUt  was  the  agreement  which  he  called  upon 
)ir.  Grillier,  the  derk,  to  read. 

The  agreement  set  forth  that  the  International  Bank  proposed  to  take 
>ver  the  whole  of  the  assets  of  the  company,  on  the  payment  of  a  sum  equal 
io  a  distribution  of  £7. 10^.  on  the  old  shiu:^,  and  of  £3.  lbs,  on  the  new 
ihares,  the  International  Bank  taking  a  warranty  from  the  Colonial  Bank 
igainst  proceedings  past  and  present. 

The  Chairman  proceeded  to  explain  the  case,  and  the  circumstances  under 
i^hich  the  agreement  was  submitted.  Much  discussion  had  arisen  between 
.he  directors  and  the  committee  as  to  the  terms  proposed  by  the  Inter- 
latienal  Bank,  and  the  result  was,  after  a  very  lengthened  correspondence 
irith  the  directors  of  the  International  Bank,  finding  no  impression  could 
3e  made  on  them,  the  committee  and  directors  of  the  bank  resolved  to 
taring  the  whole  subject  before  the  shareholders,  and  to  leave  it  in  their 
'  >Tvb.  Nijw,  with  re^ ctrd  tr.  the  warranty,  that  which  the  International 
f  Vink  re<juired  vtas^  that  m  the  event  of  any  of  the  shareholders  succeeding 
)  -^tahUsiiiiig  their  right  uuder  the  former  agreement  of  amalgamation,  to 
-  liangc  their  shares  for  Xntcmational  shares,  the  Colonial  Bank  should 
iHiuiimify  thorn  againpt  any  damage  resulting  from  their  refusal  to 
Bxcbange  their  shares,  Tlie  principle  or  question  of  a  warranty  thus 
iemanded  was  very  uuwillmgly  admitted  by  the  directors  of  this 
L^impany,  but  oa  the  proposed  agreement  gave  to  the  shareholders  a 
guarantee  of  £7.  lO^.,  it  coiild  not  be  expected  that  the  International 
ihould  be  debarred  from  recovering  that  sum  in  case  the  shares  on 
which  it  waa  paid  E^houlU  ho  exchanged  in  consequence  of  individual 
shareholders  proving  their  legal  riffht  to  insist  upon  the  exchange.  The 
warranty,  indeed,  dematided  by  the  Litemational  Bank  went  much  further, 
LQAsmuch  OB  that  in  cose  such  right  of  exchange  should  be  established, 
tho  International  Bank  should  deduct  &om  the  sum  to  be  paid  to  the 
Ooionial  Bank  tho  sum  c»f  £2Q  from  each  share  so  exchanged.    To  this 


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London  and  Colonial  j 


the  directors  woiild  not  give  their  assent,  j 
IntemationaJ  Bank  should  have  the  control 
proceedings  in  the  event  of  the  shareholders 
legal  right  under  the  amalgamation ;  but,  as  in 
for  the  advantage  of  the  International  Bank 
while,  on  the  other  hand,  it  was  their  duty  ' 
shareholders,  the  International  directors  had 
of  that  condition  to  the  effect  that  the  defei 
them  conjointly  with  the  Colonial  Bank.  Awf 
the  subject,  the  directors  determined  to  brinj 
shareholders,  and  to  ask  their  views  upon  it  b( 

Several  shareholders  here  called  upon  the  e 
plain  more  fully  what  the  position  of  the  com] 

Mr.  Morris  said  that  by  the  original  agreemen 
were  to  be  exchanged  sliare  for  share,  but  thai 
ing  of  the  International  directors,  a  resolul 
exchange  any  more,  in  cod  sequence  of  whi< 
were  struck  out  of  the  quotations  at  the  6tc 
]X)sition  of  the  Colonial  Bank  warranted  tl 
came  out  right  £7.  10s.  would  represent  the  v; 
voluntary  winding-up  would  render  the  shai 
ending  difficulties,  which  would  be  sure  to  arii 
each  should  propose  to  work  out  its  strict  r 
suggested  that  the  difficulties  shoiUd  be  av 
Company  paying  a  sum  equal  to  what  t 
ceive  if  a  voluntary  winding-up  were  to  ti 
to  the  new  shares,  which  were  not  e] 
existed.  No  difficidties  would  arise  in  the 
who  had  exchanged  both  the  old  and  n 
accident  or  design,  565  new  shares  remai 
International  Bank  now  refused  to  exchan 
gieat  injury;  but  inasmuch  as  the  princip] 
amount  of  £3.  15^.  for  new  shares  on  whi 
admitted,  he  considered  tliat  an  arrangement 
between  the  old  and  new  shareholders  of  this 
national  Bank,  might  be  made  whereby  the  o 
little  less  than  £7.  10c;.,  the  new  at  a  little  i 
that  difficulty  might  be  removed.  Otlier  di 
Kow,  really  the  only  alternative  they  had  wai 
and  they  could  then  show  the  Internationa 
rope  of  sand,  but  were  resolved  to  carry  oul 
for  he  must  in  all  candour  confess  that  he  had 
directors  would  consent  to  any  modification  o 

The  Rev.  Mr.  Bobinson  objected  in  strong 
moved  a  resolution  to  the  effect  that  the  pro] 
with  the  omission  of  the  warranty,  and  the 
set  down  as  bad  and  doubtful  debts, 

Mr.  Taylor  seconded  tlie  motion. 

Mr.  Morris  urged  the  withdrawal  of  the  la 
which  was  agreed  to. 

Mr.  Balster  referred  at  some  length  to  the  i 
assets  which  might  bo  fairly  counted  on  anion 
it  was  an  insidt  on  the  part  of  the  Internatio 
£30,000. 

Mr.  Morris  explained  that  that  sum  would  n 


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ColonialJBunk.  943 

Lboae  Bhftraholden  who  had  exchanged  their  shares,  and  if  thev  were  to  be 
;aken  into  aoeouni,  the  offer  of  the  Intarnatumal  Bank  would  amount  to 
lamewliflre  about  £50,000. 

In  reply  to  inquiriea  as  to  the  exohange  of  some  and  the  refusal  to  ex- 
change other  shiues,  the  Chairman  explained  that  a  circolar  was  sent  ont 
n  December  last  by  the  International  board,  calling  upon  both  the  old 
md  new  shareholders  of  the  Colonial  Bank  to  exchange  their  shares. 
Vlany  did  so,  but  others  neglected  to  come  in,  and,  subsequently,  on  the 
^th  January,  the  International  board,  mainly  through  the  instnunentality 
)i  the  Liverpool  directors,  passed  a  resolution,  against  which  the  Colonial 
xtard  protested  at  iJie  time,  refusing  to  exchange  any  more.  After  some 
iiscussian  the  Chairman  put  the  resolution,  which  was  carried  by  15  to  7. 

Mr.  Balater  made  an  objection  to  some  of  the  persons  who  had  voted, 
irbo  he  declared  had  not  paid  their  calla,  and  handed  in  a  protest  signed 
yj  himself  and  other  shareholder^  against  the  resolution. 

A  second  resolution  was  passed,  on  the  motion  of  Mr.  Balster,  seconded 
:)y  Br.  Cooke,  to  the  effect  that  in  the  event  of  the  International  Bank 
not  agreeing  to  the  modification  of  the  agreement,  the  directors  should  be 
requested  forthwith  to  take  steps  to  complete  the  share  list,  and  to  enforce 
the  terms  of  the  original  amalgamation  with  that  bank. 

Mr.  Morris  having  again  impressed  upon  the  shareholders  the  necessity 
>f  completing  the  sluure  list  in  order  to  place  the  directors  in  a  position  to 
fflforce  the  amalgamation,  several  added  their  names  to  the  list  for  an 
increaaed  number,  and  the  proceedings,  which  lasted  neady  three  hours, 
irere  brought  to  a  dose. 


COLONIAL  BANK. 

Fhs  half-yearly  general  meeting  of  the  proprietors  of  this  bank  was  held 
)n  the  5th  July,  at  the  London  Tavern,  to  receive  the  report,  C.  MEUTyat, 
Esq.,  in  the  chair. 
Mr.  Calvert,  the  secretary,  read  the  following  report : — 
"  Pursuant  to  the  provisions  of  the  charter  the  directors  present  to  the 
proprietors  the  following  statement  of  the  debts  and  assets  of  the  cor- 
poratbn  on  the  31st  December,  1864,  and  of  the  net  profit  of  the  half-year 
terminating  at  that  date  ; — 

DEBTS. 

Grculation       £251,491  10  10 

Deposita,  bills  payable,  and  other  liabilities         1,905,707    1  9 

Paid-up  capital         500,000    0  0 

Reserved  fund 125,000    0  0 

Balance  of  profit  from  last  half-year 405  19  11 

Ket  profit  for  the  half-year       89,638    2  4 

£2,822,242  14  10 

▲SSETB.  S==== 

Specie     £362,456  18  9 

Due  to  the  bank  in  the  colonies  on  bills  discounted  and  pur- 
chased, indading  those  past  due,  &c -      —      •••  1,2C6,006  11  0 

Doe  to  the  bank  in  the  colonies  on  current  accounts 28,026  10  3 

Dae  to  the  bank  in  London  on  bills  remitted,  cash  at  bankers, 

&c 1,154,921  14  10 

Bank  prendses  and  fdmiture  in  London  and  in  the  colonies  ...  9,931    0  0 

£2,822,242  14  10 


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Union  Banh  qf  Austr 


♦*  Tho  dire<*tora  haves  Ibo  pleasure  to  report  1 
posseastton  from  the  branchca,  the  business  of  the  b 
factorily»  They,  Lhcrcfoi'e,  feci  warranted  in  aga 
the  net' profit,  which  amount**,  aa  per  above  stAt 
hfld  and  bo uht fill  debts  and  for  income-tax,  to 
An  ordinary  dividend  be  made  of  6  per  cent,  for  1 
ending  the  3lst  December,  1864,  Being  at  the  i 
cent,  per  annnm  on  the  paid-np  capital  of  the 

which  will  require  ...       » 

And  nn  extiaordinary  dividend  of  I  per  cent.,  wl 
will  require     


Leaving    >.. 
To  which  add  biihuice_brt>nght  forward  from  last 

Together 

From  thia  amount  the  dirccton  propose  to  carry 
fund     

Increased  into  £129,000,  and  the  balance  of 
carried  forward  to  the  next  half-year.*' 

The  Chairman,  in  moving  that  this  report 
was  a  very  short  one,  b\it  as  it  was  very  Ratia 
for  that.    Ab  to  the  future^  he  was  h&ppy  to 
half-year  ending  30tb  J^ne^  were  perfect! 
braiichea. 

Mr.  G,  Hoare  Heoonded  the  motion. 

A  Sbarehokler  asked  if  any  portion  of 
Jamaica,  which  had  l}«cn  taken  over  since  tl 
in  the  present  balaiice-sheet. 

The  Chairman — About  two  months  of  tl 
included. 

Tho  m  otion  was  carried  mianinioualy. 

The  dividend,  as  recommendeil  in  the  rej 
payable  on  and  after  tho  13th  July,  was  the 
inga  terminated  with  the  usual  vote  of  t 
ilirectors. 


UOTON  BANK  OF  AVi 

The  twenty- bo vontb  annual  meeting  of  the 
10th  July  at  the  offices,  Old  Broad  Street, 
directors  and  on  otlier  business ;  J.  J.  Cumu 

Mr.  H.  W.  D.  Saunders,  having  read  the 
read  the  following  report : — 

"  It  is  again  the  pleasure  of  the  directors  i 
statement  of  the  bank's  alMrs,  embodying 
prove  satisfactory.  The  course  of  business 
more  than  ordinary  circumspection  ;  aff^n 
disturboil  and  progress  arrested  by  the  nai 
tinuecl,  while  in  some  of  the  AustraHaii  mai 
and  cull Bider able  depression ^  of  no  material  el 
of  the  bank,  owing  to  the  sound  judgment  an 


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945 


lent  has  been  oonducted,  and  for  wliich  the  oolonial  staff  are  indehted  to 
lie  oommendation  of  the  projprietors.  The  directors  have  had  the  adyao- 
age  of  oozif  erring  with  Mr.  M^ullen,  their  inspector  and  general  manager, 
ow  in  this  country  on  leave  of  absence^  upon  all  the  important  interests  of 
Lie  bank  ;  these  interviews  have  fully  sustained  their  appreciation  of  Ms 
haracter,  and  have  enabled  them  to  make  and  receive  suggestions  which 
annot  fail  to  prove  beneficial.  The  latest  advices,  although  indicating 
ontinued  depression  in  some  of  the  colonies,  and  the  danger  of  its  extend- 
Dg  by  reason  of  a  severe  drought,  which  affected  pastoral  and  mining 
Qterests,  are  satisfactory  with  ren>ect  to  the  bank's  position,  and  its  affairs 
rere  being  so  administered  as,  whilst  fully  meetmg  the  wants  of  its  cus- 
omers,  to  keep  its  resources  under  proper  control.  William  Fanning,  Esq,, 
ind  Charles  Henry  Mills,  Esq.,  are  the  directors  who  retire  on  this  occasion, 
n  accordance  with  the  provisions  of  the  deed,  and  now  offer  themselves  for 
e-election.  The  subjoined  statement  of  accounts  presents  a  net  profit  of 
€113,882.  hs,  Zd,  available  for  division.  The  directors  have,  therefore^ 
ietermined  to  apply  the  sum  of  £112,600  as  a  dividend  of  £2.  6«.  per  share 
:or  the  half-year,  payable  in  London,  free  of  income  tax,  on  18th  July^ 
and  in  the  colonies  as  soon  as  the  inspector  shall  fix  after  receipt  of 
idvioes.'' 

Statement  qf  Liabilities  and  Assets  at  the  Branches  on  the  ^\st  December^  1864, 
and  at  the  London  Office  on  the  SOth  June,  1865. 


LIABILITIES. 

Circulation 

Deposits        

Bills  payable  and  other    liabilities  (Including  resenrcs  held 

against  doubtful  debts}] 

balance  of  undivided  profit 

Reserve  fund  

liisnrance  reserve  account 

Bank  premises  reserve  account 

Capital        


ASSETS. 

Specie  on  hand  and  cash  balances  

Mion 

Bank  premises  and  proper^         

Government  securities  (Bntish  and  Colonial)  .. 
w)cal  bills,  bills  receivable,  and  other  securities.. 
Reserve  fond ,  invested  as  per  statement 


STATEMENT  OF  PBOFITS. 

Balance  of  undivided  profits  at  June  30ih,  1864 

^Qt  of  which  a  dividend  was  declared  of  £95,000,  and  interest 
on  new  shares  paid  £5,005,  12*.  Id 


£482,979  10 
2,747,411  10 


l',07l,933 

113,882 

250,000 

75,000 

75,000 

1,250,000 


£6,066,206  10 

6 

£668,492  4 
118,946  19 
137,678  17 
139,500  0 

4,751,588  9 
250,000  0 

7 

7 
3 
0 

0 

£6,066,206  10 

6 

£104,313  14 
100,005  12 

9 

I 

Leaving  a  balance  of 


£4,308     2     8 


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946 


Union  Bank  of  Aurif 


Profits  of  the  p«t  ycur,  afler  tnnking  provinioQ  fbr 
doabtful  debU,  X329,O05.  13«.  74,  i  less  teillin«! 
I0C4I  diniciora,  and  salaries  and  allowances  to  this  oi 
£Gi,423, 12^.  4d. ;  general  expenses  In  the  cdisoie 
Vixts.  rmi,  ttationeiy,  flee,  £26»68d,  8^.^  reinii 
the  board  of  directors,  salaries  of  London  office 
taxcSf  ijtationery,  and  general  cxpenscSi  £lS|S2t 
income  tut,  £3,600 -£106,^31.  10* ., 


Dednct  diridend  paid  in  Janiiaiy 

Bulnnce  of  iindirided  profU  at  this  dale 


Txrsxi* 


New  Zealand  Imperial  Four  per  Cent.  Debeatnrei 
Colomal  Six,  per  Cent.  Debcntnrcs 


Tlio  Ch airman  then  said — Oentlemen,  I  beli 
vifthes  by  making  but  a  few  obiervatioiui  on 
report  gives  to  you  the  exact  views  of  the  boar 
affiuLrs  of  the  bank  generally^  and  I  may  be 
report  waa  nt  >t  jiropareil  for  your  acoeptiioe  u 
iBT«itigation  liml  been  made  into  the  aifairs  of 
with  the  aid  of  tko  council  and  the  informal 
and  general  ;n onager.    (Hear,  heat.)    I  aay 
&|Keaking  of  the  manner  in  whioh  the  acoountB 
and  inTeatigatedj  because,  from  cir cumstanott  i 
I  was  not  enabled  J  far  a  longer  j^eriorl  than  eT 
foundation  of  the  h;\nk,  to  give  that  attention 
always  proTiously  giv^en,  and  which  I  hope  stij 
hear.)     It  ia  very  gratifying  to  me  to  §na  that 
vision  Itas  been  made  for  all  bad  debts  we  are 
an  amount  of  profit  on  a  busineaB  earned  on  o 
banking  propriety  in  every  respeet.  (Hear,  hea: 
apart  from  our  banking  business  at  our  branch 
financial  operations  in  any  tlirection.     Wo  bi 
result  of  our  banking  business  carried  on  with 
legitimate  principles.    (Hear,  hear.)     It  is  ver 
themsfilvea  to  be  able  to  expreaa  tlioae  teat 
management  of  the  bank,  and  I  believe  there  i 
room  who,  perhaps,  are  inteivsted  jn  oUbm 
character,  who  can  testify,  as  well  as  I  ca 
carried  on  with  a  greater  dc^ee  of  prudent 
Australia.     (Hear,  hear.)      I  should  h^  sorry 
that  there  was  any  eroeption  of  an  opposite 
have  noticed  in  our  report  a  subject  on  wHi 
that  information  which  we  ouraelvce  pgest 
last  mail  of  the  oontinuanoe  of  the  droi 
possibly  ailect  your  general  in  tores  ta  for  a  un 
the  effect  of  the  war  in  New  Zealand  on  buaiaea 
ire  incidents  that  only  tend  to  make  it  mere  and 


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bosinefls  should  be  kept  within  strict  bounds,  so  that  it  may  not  be 
materially  affected  by  any  minor  changes  caused  by  events  of  that  descrip« 
lion.  (Boar,  hear.)  And  it  has  been  the  study  oi  our  administration 
abroad  so  to  manage  our  affairs  that  we  feel  no  alann  even  at  any  such 
events  tm  those  to  which  I  havre  alluded.  (Hear,  hear.V  We  believe  they 
may  £ar  •  time  produce  some  interruption  of  oiu:  pronts  in  the  colonies, 
but  we  are  satisfied  that  there  is  nothing  to  prevent  those  great  colonies 
irom  being  the  field  of  ccHumercial  enterprise  and  banidng  business  most 
satisfactory  to  all  those  who  are  engaged  in  such  undertakings.  (Hear, 
hear.)  I  have  nothing  more  to  say  than  that  I  shall  be  most  happy  to 
give  aoy  explanation  that  may  be  required,  and  will  now  conclude  by 
moving  tbat  ^e  report  be  received  and  printed  for  the  use  of  the  pro- 
prietors.  (Hear.) 

Mr.  Botley  expressed  his  entire  satisfaction  with  the  report|  and  begged 
to  second  the  motion  for  its  adoption.    (Hear.) 

A  Proprietor  inquired  what  was  the  amount  of  the  reserve  fund  against 
bad  and  doubtful  debts. 

The  Chairman  said  the  amount  reserved  for  bad  debts  had  been  care- 
fully considered  and  was  abundantly  suflficient  to  meet  every  possible 
liability.  It  had  not  been  the  custom  to  state  the  exact  amount.  The 
portion  Uist  had  fallen  on  the  bank  this  year  was  comparatively  small, 
and  the  question  was  not  one  that  affected  the  interests  of  the  bank.  Up 
to  the  present  time  there  had  not  been  any  lar^e  amount  of  deduction 
irom  the  profits. 

Another  Proprietor,  referring  to  the  item  "  local  bills,  bills  receivable, 
SDd  other  securities,"  thought  it  would  be  satisfactory  to  the  meeting  to 
know  the  nature  of  these  securities. 

The  Chairman  said  he  thought  the  statement  which  he  had  previously 
made,  that  the  directors  were  not  engaged  in  any  speculations  of  a  varied 
or  uncertain  character,  and  that  their  operations  were  strictly  banking 
operations,  would  naturally  lead  any  geutleman  to  believe  that  the 
securities  referred  to  were  merely  those  which  belonged  to  legitimate  ad- 
vances made  for  carrying  on  a  business  which  was  yielding  a  profit  of  18 
per  cent.  (Hear,  hear.)  If  they  had  not  that  means  of  employing  their 
money  they  would  be  unable  to  realise  such  a  profit.  He  repeated  that  all 
the  transactions  of  the  bank  were  legitimate  banking^that  every  security 
^as  worth  the  amount  attached  to  it-— that  the  directors  had  written  off 
erery  penny  that  was  doubtful.  If  the  nature  of  such  securities  was  re- 
quired from  any  bank  their  accounts  might  as  well  be  posted  on  the  Boyal 
Exchange,  and  he  was  confident  that  such  a  course  of  proceeding  would 
operate  Injuriously  both  at  home  and  abroad.     (Hear,  hear.) 

Mr.  Dalgety  (a  director)  said  that  some  of  the  securities  consisted  of 
colonial  dbbentures.  As  tnere  were  twentv-five  branches,  a  considerable 
time  must  elapse  before  the  accounts  coula  be  made  up  in  this  coimtry, 
wid  it  would  be  scarcely  x>ossible  to  give  them  in  detail.  Indeed,  if  that 
^©re  done,  he  believed  it  would  be  of  no  real  service. 

^.  Jephson  urged  on  the  directors  the  propriety  of  observing  the 
■*nctcst  economy  m  the  management  of  the  affairs  of  the  institution. 

Mr.  Campbell  (a  director)  assured  the  hon.  proprietor  that  the  subject 
hftd  at  all  times  received  the  closest  attention  from  the  board. 

Mr.  Dalgety  remarked  that  since  the  increase  of  capital  nearly  £000,000 
iBore  had  been  employed,  with  a  moderate  increase  in  the  annual  ex- 
Pcndituie. 

^^o*her  Propristcnr   expressed   strongly  his  discouragement  of  what 
^^ton  proved  to  be  false  economy. 


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English  and  Foreign  Or^ 


The  motion  lor  tbe  Arloptioii  of  the  rqiorl  ^ 
lyn^miTTOfrnkly. 

The  Chftinxian  said  the  directors  liad  d< 
January  next  the  dividend  warrantB  would 
uddien  of  ereiy  proprietor,  itnlem  they  raoei 
priietor  to  pay  the  amount  into  any  bank  to 
very  ocmTenient  to  many  propnetora.  'Dm 
the  ooDTenience  of  proprietoray  and  their  ooi 
and  receive  deposits  in  Londim  for  fixed  per! 
avoeriained  on  appUcatum  at  the  office. 

The  retiring  (urectors,  Messrs.  Fanning  ui 

The  Secretary  then  annotmoed  that  the  di 
and  after  the  18th  July. 

Mr.  Botlej  proposed,  and  Mr.  I>rtfiooU  sec 
chJurmaQj  which  haying  been  briefly  adnow 


EKGUSH  AND  FOREIGK  CREDIT 
A^v  extraordinary  genoral  meeting  of  the  a 
was  held  on  the  10th  July,  at  the  Londcm  Ti 
ehair. 

The  Secretary  Qlx,  Derrj-)  read  the  repor 
a  realised  balance  to  the  credit  of  profit  and 
it  was  proposed  to  treat  in  the  following  m!u 
payment  of  a  diyidend  of  T^.  l<i«  per  share 
the  rate  of  10  per  cent,  per  annum  ;  £5,00( 
was  proposed  to  i  a  vest  and  not  to  employ  in 
and  the  balance,  £1,686.  bs.  lid,,  it  was  int 
and  loss  account.  A  sum  of  £2,258.  5j.  hd,  w 
account,  being  rebate  on  trausacitiona  now  ot 

Tlie  Chairman,  in  moTing  the  adoption  of 
why  the  board  had  called  an  extraominary  i 
recollection  of  the  shareholders,  that  at  tb 
took  that  opportunihr  of  stating  what  was  1 
and  they  desired  to  do  that  as  frequentljr  as 
it  wiis  found  by  the  articles  of  the  aasociatio] 
hold  a  meeting  once  a  year  only.  Now,  he,  \ 
averse  to  declaring  an  interim  dividend  witt 
holders  being  first  obtained,  and,  therefi 
articles  of  association,  they  had  called  an  ^'  c 
had  lieen  induced  to  make  this  explanation  I 
to  the  word  ** extraordinary.**  The  shareho! 
of  seeing  the  accDUnts  of  the  company,  and 
except  that  those  accounts  were  certified  bj 
ser%^ant4  of  the  shareholderB,  and  he  hope* 
genuineness  of  the  accounts  ;  and  here  hi^ 
circmnstHiice  that  a  gentleman — a  sharehold 
body  of  shareholders  by  an  address  and  ci 
solutions.  Mr.  Harrison  had  a  right,  no  dot 
antl  to  take  his  own  view  of  the  pusition  ( 
Hrst  resolution  which  he  understood  the  hon 


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949 


be  begged  disiincily  to  state  that,  if  carried,  the  directors  would  res^ard 
It  as  a  vote  of  want  of  confidence  in  the  board,  who  would  act  accordingly. 
In  condusion,  he  moved  that  the  report  and  statement  of  accounts  be 
received  and  adopted. 
Mr.  Thomas  Stenhouse,  the  deputy-chairman,  seconded  the  motion. 
Mr.  W.  G.  Harrison  expressed  his  regret  that  he  should  have  been 
called  upon  to  bring  forward  the  resolutions  which  he  should  submit  for 
the  adoption  of  the  shareholders.  In  adopting  this  course  he  did  not 
desire  to  make  any  imoutation  on  the  directors,  but  he  thought  that  when 
the  results  of  18  montns'  trading  had  been  so  unsatisfactory,  they  had  a 
right  to  ask  the  directors  whether  they  deemed  it  advisable  for  the  in- 
terests of  the  company  to  continue  their  business  or  suspend  it.  They 
knew  thai  a  credit  company  was,  to  a  certain  extent,  of  a  speculative 
character,  but,  at  the  same  time,  he  considered  that  10  per  cent,  was  a 
paltry  diyidend,  and  when,  as  he  had  been  informed,  they  had  narrowly 
escaped  a  compulsory  windinff-up,  he  thought  there  was  every  reason  for 
inquiry  and  apprehension.  He  wished  to  know  if  it  was  true  that 
bills  for  £3,000  were  dishonoured.  If  the  directors  were  not  in  a  position 
to  give  a  negative  reply,  he  could  not  be  surprised  at  the  miserable  rate  of 
discount  at  which  their  stock  stood.  There  was  a  large  number  of  rich 
shareholders  in  the  company  who  could  wait  until  the  shares  got  up  to 
par,  but  the  poor  man  who  wanted  to  sell  was  placed  in  a  very  embarras- 
sing position.  Every  shareholder  should  have  his  portion  of  the  realised 
capital.  He  wished  to  know  from  the  directors  whether  the  state  of  the 
afi^rs  warranted  them  in  continuing  or  not,  and  whether  it  was  likely 
the  shares  would  go  up  in  the  market.  He  would  move  the  following 
resolution  as  a  substantive  amendment : — ^^  That  a  committee  be  appointed 
to  confer  with  the  directors  on  the  financial  position  and  prospects  of  the 
company,  and  as  to  the  most  advisable  course  to  be  taken  in  the  interest 
of  the  shareholders  with  reference  to  the  future  proceedings,  having  regard 
to  the  present  condition  of  the  money  market  and  the  depreciation  of  the 
company's  shares." 

Mi,  Groodyear  seconded  the  amendment. 

Mr.  Legett  inquired  whether  they  could  feel  secure  in  regard  to  the 
smn  £106,912  whidi  was  on  bUls  receivable.  He  believed  their  money 
under  that  head  was  jeopardised,  and  he  could  not  help  thinking  that  the 
statement  of  accounts  was  barren  in  every  respect. 

Mr.  Mowitt  expressed  his  surprise  at  the  entire  absence  of  proof  to 
substantiate  the  very  serious  idlegations  made  against  the  company.  It 
was  desirable  that  companies  should  be  explicit  in  dealing  with  details, 
but  he  thought  the  case  was  different  with  their  company.  He  had  no 
hesitation  in  saying  that  the  accounts  were  scanty,  and  the  items  referred 
to  contained  sums  upon  which  they  should  be  solicitous.  However,  as  far 
M  he  was  concerned,  he  was  thankful  to  the  management  for  having 
placed  them  in  such  a  good  position.  He  thought  it  was  a  mistake  to  have 
Issued  £50  shares,  and  as  otiier  companies  had  reduced  theirs  to  £20,  he 
thouffht  they  might  act  in  the  same  way.  He  believed  the  capital  was 
*?^,  and  he  wotdd  suggest  the  advisability  of  increasing  it  by  amalgama- 
tion or  otherwise. 

Mr.  Holland,  Mr.  Gusher,  and  other  shareholders  having  expressed 
themselves  adversely  to  the  amendment  proposed  by  Mr.  Harrison, 

The  Chairman  proceeded  to  reply  seriatim  to  the  questions  put  to  him. 
He  said  they  held  no  bill  which  was  not  covered  with  collateral  security. 
The  current  expenses  were  light  when  compared  with  other  companies, 
being  only  2^  per  cent    The  question  of  the  diminution  in  the  value  of 


Digiti 


ized  by  Google 


LL  ilMlf  to  f^  dttwlt 
Ml  iul  to  ottMoll  ilM  d 

Hie  roKiliitiOB  m  to  lim  idop&aa  of  tlie  repon 

^  #fiteid  «i  U IJL  p^^iM  WW  tbeii  dc 

1  ftyBvpu 


THE  LONDON  AKD  BOMBAY  B AKK  ^ 
AKD  INSURANCE  AGENCY  Cv 

FjnLSVAsrt  to  adTertewmeni,  m  «xknovdliu 
ahmlM3iLiiei8  of  tliiB  otMnpaaijr  wan  kdd  <m  ikm 
Cofibo-lioiuev  for  ihe  purpose  of  oooKfiimi^  iki 
wfaidi  was  ael  forth  in  tbe  adTerttnaBSBL  « 
"  ThAt  the  ]^i«seiit  nonunal  capital  ol  tlie  um 
General  Fmaneial  and  InamtuicQ  Agiiitn 
£2,000,000,  divided  into  200,000  shares  oi  ^ 
Domiiial  capital  of  £4/)00,000  by  the  add 
£2,000,1000,  divided  into  200,000  sham  of  £] 
tioiial  d^tal  ahali  form  part  of  the  mi^iHAl 
form  pointer]  out  bj  the  articles  oi  awwaatioB 

Mr«  Schala'i  was  in  the  ohAir,  and  aovad  a 
the  time  having  elapned  for  boLdingr  the  meeli 
until  Thursday,  the  20Ui  inat,  at  elevaa  o'oio 

Mr.  Charles  Tyler  haring  aeocsided  the  mol 


UNION  BANK  OF  L( 


TfiE  annual  general  meeting  of  proprietors  \ 
the  London  Tavern,  BLshopsgate  Street,  Mr, 
chair,  to  receiye  n  report  from  the  directora  o 
to  declare  a  dividend,  to  re-elect  directora  n 
^rectora  on  entering  the  room  were  received 

The  advertisement  convening  the  meeting 
man  called  upon  Mr.  W.  O.  Seville,  the  aan 
report,  which  waA  as  follows : — 

"  The  directors  have  much  satisfaction  \ 
of  the  bank  for  the  alx  months  ending  : 
all  charges  (induding  the  sum  of  £113,895.  i 
due  to  customers  on  their  current  and  deposi 
pKOvision  for  all  bad  and  doubtful  debts,  a 
with  £61^575. 19i»,  Id.  brought  forward  from 
to  £20(5,255.  8*.     The  directors  now  dedan 
per  cent,  per  annum,  and  a  bonus  of  7i  per 
being,  together,  at  the  rate  of  30  per  cent. 
months,  clear  of  income  tax.     After  paymen 
amounting  together  to  £180,000,  and 
inga'  investment  accoimt,  there  will 
£21,255.  %s.  to  be  carried  forward  to  a  new  pr 
course  of  tlie  pai»t  half-year,  Thomas  Augni 
obliged,  from  impaired  health,  to  tender  the  res 
tar :  and  the  directors  feel  assured  that  the  pn 


d  by 


Google 


Unum  Bank  qf  London. 


951 


(>atis{acii<m  that,  m  ptmnanoe  td  the  proTinons  of  the  deed  of  settleikient, 
they  have  filled  that  yacttncy  by  dectrng  Mr.  Scrimgeottr  a  (tireotor  of  the 
bank.  It  was  with  great  pleasure  the  directors  learnt  that  their  offer  would 
be  accepted  by  Mr.  Scningeotir,  as  a  recognition  of  their  strong  personal 
regard  for  a  valned  friend  and  officer ;  and  they  feel  assured  that  the  pro- 
prietary will,  with  equal  pleasure,  confirm  an  election  which,  in  some 
degree,  laarks  their  approbation  of  twenty-six  years  of  arduous  serrice, 
characterised  by  ability,  zeal,  and  disinterestedness  which  cannot  be  ex- 
ceeded. The  following  directors  retire  by  rotation,  under  the  proyisions 
of  the  deed  of  settkineivt,  Tiz. : — ^Archibald  Boyd,  Esq.,  Charles  Lyall,  Esq.. 
and  Peter  Northall  Laurie,  Esq.,  who,  being  eligible,  offer  themselves,  and 
are  recommended  by  the  court  of  directors  for  re-election." 


Qeneni  B^icmeefcr  the  half-^ecrr  ending  90tk  Jtme^  U05, 

UABlLmES, 


Dr. 


Capital  £10  per  share  paM  up  on  60,000  shares,  £600,000 }  £5 
per  share  added  oat  of  reserved  profits,  £300,000 ;  £15  per 


share  paid  up  on  20,000  shares,  1864,  £300,000 


Due  hy  the  bank  on  current  accoants,  deposit  receipts  (in- 

clnduiff  interest  aocnied)»  and  other  obligations       

VxQfiervea  tand  invested  in  Consols,  as  per  contra 

lUiildings'  inTestment  account  

Rebate  on  biUfl  not  due >^      

Balance  at  eredit  of  profit  and  loss    


.» £1^00,000    0    0 


ld,008,608  19 

800,000    0 

67,000    0 

37,745  19 

206,255    8 


ASSETS* 


Cr. 


Cash  in  the  bank  £899,363.  U,  84.,  kk  Bank  of  Ettgland 
£691,171.  5#.  Id.,  lent  at  call  £1,238,000       .^      

InTestments  in  Government  stock,  fisckeqaer  bills,  ieben- 
Mires,  A0*«««    •••      ¥»m      ••*      00m      00m      *•*      *«•      ••* 

£337,078.  13j.  Consols  reserve  fond...     «>»      ..«      **« 

Bank  premises— consisting  of  freehold  boilings  in  Princes 
Street,  Mansion  House  Street,  Argyll  Place,  Fleet  Street 
and  Chancery  Lane,  and  lease  and  fixtures  of  Ko.  4, 
Pall  Mall  East ^.      ... 

Loans,  bills  discounted,  &c 


1,073,878 
300,000 


192,624 
16,324,573 


£20,719,610    6    8 


£»,8S8,534    6    9 


£20,719,610    6    « 


raonr  jun>  loss  accouvt* 

j>indend  at  the  rate  of  15  per  cent,  per  annum * 

Bonus,  7^  per  cent •»      ... 

Amount  ap|m>priated  to  buildings'  inrestment  aeeonnt     ... 
balance,  being  undivided  proi&t  carried  ibrwaid  to  next  half- 

*  ***  •••   •••   •»»   •••   ••w   •••   «.•   •••   •«• 


£90,000  0  0 

90,000  0  0 

£180,000  0  0 

5,000  0  0 

21,255  8  0 

£206,255  8  0 


Digiti 


ized  by  Google 


I  952  Union  Bank  of  Lo 

]  Profit  onappropmted  on  Slst  December,  1864  .., 

Amount  of  net  profit  of  the  half-year  ending 

{  1865|  after  deducting  all  expenses  and  intei 

due  (£113,895.  195.  6<2.),  allowed  to  custom 

current  and  deposit  accounts 


The  Chairman  having  declared  the  divid( 

with  the  report,  and  announced  that  both  ^ 

Thursday,  the  2(Hh  Jnly,  proceeded  to  mov< 

\,  He  explained  that  the  reason  the  meeting  wa 

was,  that  the  new  room  at  the  bank  did  not  afl 

•<  and  while  this  circumstance  was  in  one  &< 

satisfactory  to  know  that  the  necessity  of  m 

t.  from  the  increased  number  of  proprietors,  an( 

in  the  affairs  of  the  bank.     (Hear,  hear.)     W 

there  would  be  no  regret  at  being  obliged  tc 

I  assembled,  and  he  hoped  that  by  next  yea 

,  inadequate  to  their  reception.     (Hear,  hei 

.  directors  had  been  received  in  a  manner  high] 

sion  had  they  ever  been  able  to  lay  before  the  p 

account  for  the  whole  year.     (Hear,  hear.) 

,  used  some  words  of  warning  with  reference 

'  profit  which  they  might  make  in  the  six  montl 

six  months  were,  as  they  would  all  recollect, 

in  January  the  rate  was  f  alling,'and  as  the  dire< 

tinuance  fall  for  a  very  considerable  time  (tt 

point),  he  and  his  colleagues  had  thought  that 

;  be  thrown  out  that  shareholders  might  not  be 

amount  of  profit  was  not  so  large  at  the  peric 

'  dealing  as  it  had  been  during  the  exceptional 

it  would  now  be  admitted  that  in  that  they  ha 

I  course.      (Cheers.)     At  the  same  time  the 

■  rather  to  moderate  than  overrate  anything,  i 

.  ;  greater  pain  than  to  attempt  to  mislead  or  b 

\  'i  hopes  that  they  had  not  the  fullest  anticipatioi 

5  They  did  not,  therefore,  divide  the  whole  of  t 

i  andjthough  he  knew  a  different  course  would  ha 

:^,  proprietors,  he  thought  the  general  body  woi 

dividing  the  whole  was  at  the  end  of  the  yeai 

taken  a  prudent  course.     (Cheers.J     They  w< 

carried  forward  from  the  last  half-year,  able 

• .  factory  account.     Undoubtedly,  there  was  a  te: 

to  have  as  large  a  dividend  as  possible,  but  tl 

I  saw  more  of  the  working  of  the  establishmeii 

,  appear  a  little  more  prudent  than  those  who  I 

'\  of  ascertaining  the  exact  state  of  affairs,  and  tl 

^  No  directors  had  ever  been  treated  with  mo 

i  this  bank  ;  for,  from  the  commencement,  the  < 

'l'  the  prudential  course  of  not  dividing  the  wh< 

:]  were  now  in  the  proud  position   of   having 

j  £300,000.     The  proprietors  had  been  told  i 

!  reserve  had  been  increased  one  effect  would  b 

)  i 

.1 


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ized  by  Google 


Union  Bank  of  London. 


953 


to  be  made,  aad  that  had  been  done.  The  directors  had  as  great  an 
iuterest  as  any  one  in  dividing  as  large  an  amount  as  possible,  and  on  this 
point  he  hoped  the  same  confidence  would  be  reposed  in  them  as  hereto- 
fore. Daring  the  last  six  months  the  average  rate  of  the  Bank  of 
^England  had  been  4^  per  cent.;  in  the  preceding  six  months  it  had 
been  over  8  per  cent.;  notwithstanding  which  the  board  were  able 
to  show  by  their  report  that  this  year  they  had  made  a  profit  of  £145,000 
against  £180,000,  which  waa  reported  as  the  profit  of  an  exceptional 
period.  (Hear.)  This  was  accounted  for  in  a  satisfactory  way  by  increase 
of  business  in  every  department.  Taking  the  two  reports  of  the  year,  it 
appc^ared  that  they  had  paid  to  customers  on  current  and  deposit  accounts 
the  enormous  sum  of  £278,000,  that  they  had  appropriated  out  of  the  profits 
of  the  last  half-year  £5,000  to  their  building  investment  account,  and  that 
they  paid  £300,000  for  the  year  in  dividend  and  bonus;  for  though 
the  divided  profits  of  the  last  half-year  were  properly  stated  at  30  per  cent., 
the  actual  payment  for  the  year  was  25  per  cent. ;  in  point  of  fact,  they 
received  one-fourth  of  their  paid-up  capital  back  again.  (Cheers.)  This 
was  no  boast,  but  a  plain  unvarnished  tale — a  simple  repetition  of  the 
hgures  of  the  account.  The  anticipations  for  the  coming  six  months  were 
highly  satisfactory ;  they  had  every  reason  to  hope  for  a  full  average  har- 
vest, they  might  anticipate  greater  commercial  activity,  and  he  hoped  at 
their  next  meeting  to  have  as  satisfactory  a  statement  to  make  as  on  the 
present  occasion.  The  bank  premises  in  Chancery-lane  were  not  in  so 
forward  a  state  as  had  been  expected,  but  they  were  proceeding  towards 
completion,  and  he  hoped  that  before  the  end  of  the  year  they  would  take 
possession  of  them,  and  so  afford  adequate  accommodation  to  the  largely 
increased  business  at  that  end  of  the  town.  (Hear,  hear.)  The  business 
of  the  branches  generally  was  in  the  highest  degree  satisfactory  and  profit- 
able. During  the  last  half-year,  which  had  been  a  period  of  great  anxiety, 
they  had  enjoyed  almost  an  immunity  from  bad  debts,  and  he  could  say  with 
cocdidence  that  they  had  not  a  bad  or  doubtful  debt  on  their  books  which 
was  not  in  the  most  ample  manner  provided  for.  (Cheers.)  Referring  to 
the  paragraph  with  reference  to  the  appointment  to  the  board  of  Mr. 
Scrimgeour,  he  said  that  no  proprietor  had  ever  had  a  more  faithful  or 
more  competent  officer,  and  no  <firector  a  more  fearless,  independent,  or 
^lisinterested  ooimsellor.  Differences  had,  of  course,  arisen  in  the  26  years 
of  service  between  Mr.  Scrimgeour  and  the  board,  but  when  his  views  had 
not  been  carried  out,  that  gentleman  had  always  been  ready  to  carry  out 
the  opinions  of  the  board  as  fully,  as  heartily,  and  as  loyally  as  if  they 
had  been  his  own.  (Hear,  hear.)  On  no  fewer  than  three  occs^^ions  hi 
the  earUer  sta^  of  the  bank  had  Mr.  Scrimgeour  refused  additional  re- 
muneration, ii^ch  the  shareholders  considered  his  services  entitled  him  to. 
Mr.  J.  A.  ^irton,  who  came  to  the  bank  as  a  young  man  from  the  Bank 
of  England,  who  had  always  devoted  himself  to  the  interests  of  the  bank, 
and  in  whom  the  directors  had  the  greatest  confidence,  had  been  appointed 
to  the  office  of  general  manager,  and  he  thought  it  a  matter  of  satisfac- 
tion that  they  were  not  obl^ed  to  go  out  of  the  bank  to  supply  any 
vacancies. 

Mr.  James  Farquhar  seconded  the  motion. 

Mr.  Hodgkinson,  on  the  part  of  the  shareholders,  expressed  approval  of 
the  manner  in  which  Mr.  Scrimgeour's  eminent  services  had  been  re- 
warded, and  satisfaction  that  that  gentleman's  high  qualifications  would 
not  be  lost  to  the  bank. 

The  report  was  adopted,  and  the  retiring  directors,  Messrs.  Archibald 
VOL.  XXV.  74 


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954 


ImtperM  Btmk. 


I-T»H. 


Peler  SottUa  L 


IP  Mr.  Lsa»  for  hit 


Kcf  IjDOOj 


-     ''J 
oabclaliafd 

^ttilca  for  tin 

voH&d  bq4  be  tiTMwJ,  wm  be  ww  oi 

ikmlcd  to  Ike  iBtsote  cf  the  bank,  wA  <M 

rmi4lbtt  tbe  ^pprobfllkn  of  the  shmkoU 

Kr.  Onh«B  oliMnr«d  Ibal  vim  thi|^  v« 
PidBiigcr  aflUr  €h0  pnprifllcio  sofliQited  i^ 
aod  tlttl  VM  in  bk  opinion  A  ivmd  bagfoad  ] 

Tbe»otionb«rxng  been  withdiMii, 

Mr.  Gralinni  mored  the  tiumke  of  the  meet 

Mr.  Hngglna  moved,  end  Mr.  Jeaee  BsH  m 
fHrectora  be  gmpeywered  to  make  ; 
Mr.  Scnageuor ,  to  be  pliu^ed  where  the  1 

Carried  qnanimoqaly, 

Mr.  Kottage  moved,  and  'Six,  Hlslop  secon- 
to  the  chairman  and  directors,  and  also  to  t) 
brancheay  which  waji  carried  with  aedamatioD 

The  Chairman  retiimed  thanks,  and  the  in< 


THE  IMPERIAL  Bi 

Tbi  oxth  ordinary  general  meeting  of  the 
bank  was  held  at  the  Londcm  Tareni,  od  tl 
Loak,  VLP.^  in  the  chair. 

The  following  report  for  the  hall- jear  end 
read: — 

"  The  acootinta  which  the  direotors  have  nc 
to  the  shareholdein  ahow  the  result  of  the  op 
the  past  half-year  to  liave  been  rery  aatixlacti 
commercial  depreasion  has  existed  for  some  ti 
the  bank  continnes  steadily  progressiTe,  Ki 
of  money  which  has  prevailed  during  a  gi 
laonthBf  and  that  the  dividend  will  have  to  fa 
which  previously  only  carried  interest  at  1 
aoBimiy  your  directors  are  able  to  recommen* 
per  cent,  per  annum,  &ee  of  inoome-tax.  Xf 
and  aU  charges  of  the  bank,  together  with  . 
difloouuted,  bad  and  doobtful  debts,  the: 
£6,^97. 1^9*  2d.f  wliich  the  directors  reooou 
foUowa,  vis. :— £3,000  to  the  reserve  fund,  £8 
preliminary  expouses^  and  £2flOS,  4s,  5d.  to  ' 
new  account/' 

Balanae^sheett  June  30, 

Capita]  paid  nn 

Amount  dne  ny   the  bank  on  corrent,  depoiii^ 

occonDts  ... 
Reserve  fund... 
itetlciiiption  of  premise?  Amd 

Carried  forward 


Digitized  by  VjiOOQIC 


Imperial  Bank. 

D  1       '    ^       ^         ,  ,  Brought  forwud    ... 

BaUmcd  of  profit  and  loaf,  3l8t  December,  £5.2l8.  18«. ; 
gross  profits  for  half-jear,  £^289^.  14«.  9d.,  making  a 
total  of  £48,124. 12t.  9d.,  less  mierest  paid  to  costomen, 
£9,286- 15j.  7d. 


Or. 

Consols  and  India  debentures 

Bills  disooanted,  loans  to  customers,  &c. 

Bank  premises,  fhmiture,  and  fixtures 

PWiminary  expenses     ... 

Cash  in  hsnd,  at  Bank  of  Bngland,  and  at  call  •- 


955 

1, 931,858    9    9 

38,837  17    2 


Dr. 


Pbofit  aho  Loss  Accx>uirT. 


£1,970,696     6  11 

£87,850    4    6 

1,666,212  14  11 

22,684  14    0 

1,889  13    9 

242,158  19    9 

£1.970.696    6  11 

£8,850    3 

18,000    0 

6,089  16 

889  13 

3,000    0 

3,008    4 

0 

0 

0 
9 
0 
5 

£38337  17 

2 

£38,837  17 

2 

Sm 

Current  expenses,  including  salaries,  directors'  remuneration, 
income-tax,  and  allowance  for  bad  and  doubtful  debts    ... 

"ayment  of  dividend  at  the  rate  of  8  per  cent,  per  annum,  for 
the  last  half-year        ...  ,..  C 

Amount  carried  to  profit  and  loss  new  account,  being  rebate 
on  bills  not  yet  due    ... 

Amount  written  off  preliminary  expenses 

Amount  carried  to  reserre  fund      ... 

Amount  carried  to  profit  and  loss  new  account... 


Or. 
Balance  brought  down  ... 

We  have  examined  the  abore  accounts  and  find  them  to  be  correct. 

The  Cludrmaxi,  in  rising  to  move  that  the  report  jnst  read  be  received, 
^opted,  and  entered  upon  the  minateSy  said  that  after  three  vears  expe- 
nence  of  the  working  of  the  bank  he  had  to  congratulate  the  anareholders 
Qpon  its  sucoessy  and  upon  the  fact  that  it  was  stronger  and  more  prosperous 
^  the  end  of  the  last  six  monthii  than  it  was  at  any  time  before.  rHear. 
bear).  The  directors  were  satisfied  that  the  progress  which  the  bank  had 
made  would  beer  favourable  comparison  with  tlu^  of  any  one  of  the  great 
jomt-stook  banks  founded  during  the  last  twenty-five  years  after  the  third 
year  of  its  establishment.  The  low  rate  of  interest  within  the  lasts  ix  months 
^however,  militated  against  the  profits  of  the  bank :  nevertheless,  they 
^ere  able  to  divide  8  per  cent,  per  annum  amongst  the  shareholders.  (Hear. 
1^^.  It  might  be  thought  by  some  that  the  dividend  should  be  raised 
^  ^0  per  cent.,  but  the  directors  preferred  that  the  difference  should  be 
^ded  over  to  the  reserve  fund.  The  preliminary  charges  would  amount 
w  only  about  £1,000,  which  would  be  mudi  more  than  covered  by  the 
snares  in  hand.  They  might  now  rest  satisfied  with  the  fact  that  the 
Imperial  Bank  was  an  accomplished  fact.  A  large  amount  of  capital  was 
employed.  The  most  complete  organisation  of  the  bank  was  established, 
•"^na  it  had  secured  a  safe  and  sound  business  which  was  growing  every 
^(iok.    (Hear,  hear).    In  oonclusian,  he  reminded  the  shareholders  that 


Digiti 


ized  by  Google 


Ami 


to  tte  tntiwrpnwp 


to  pad  fae  ^mbIi 

aUovft  lilUe  not^ 
Be  TOfced  to  mJc 

ioc  tk>  l»*i«l  to  gtT«  to  tba 

I  of  i^  dikj,  aa  iMlowat  ia  ^tomttituavt 
til  vttBiatoidBdtospiifylbaMsbsraitow 
ItoVy  M  flboqgiity  luij  sa 
itoilMiAwonmovBagMnto.  He  raf e 
i  cm  ikuw  llnl  were  unscdd. 
wkj  m  tosnaed  capitoil  slioald  not  be  uk< 
aaboB.  B0  koped  tkat  tlio  bcwrtl  iroultl  g 
polk^  to  luijiiitl  to  tlkOM  rceenred  shares. 

Tm  ObatrauB  swd  be  conoid  not  give  a  di 

1^  iNMcddid  not  »  y«t  kiuyw  whai  to  do 

avfttr  llKMMdii  of  Ibe  laaltcr,  end  tlierefore  1 

apoA  ik    The  direeloca  lud  not    oettaiiil^ 

le—ned  ekftra&.    Tkej  liad  w  much  cepits 

tlkea,  ahoiild  tliey  ttonkci  imiiii||:  more  saen 

)tr.  Kintroft:  Do  I  undentoiid  tlie»  cba 

iliiMtaB.  eonld  not  profiubly  employ  more  c 

Tlie  Ch&iniuui:  They  oouIdn<^  at  the  ['- 

Mr.  Kintrce  did  not  suppose  for  a  moT 

ooDoeel  ftny  importAut  fact  from  the  ah.^  ^ . 

tbon^t  it  would  be  mtercetitig  to  the  ahare 

mattor  of  the  x^eerved  sliares  dearly  underv 

that  tliie  was  one  of  the  nust  raeoeaBtol,  as 

bankij^  institutions  in  the  ooimkry.    (Hear, 

BIr.  Michel  said  that  no  doubt  ^Ir,  Kintres 

his  questian.     He  thought,  howeTer,  that  it 

left  to  the  decision  of  the  boaniy  namelT,  tl 

how  they  should  deal  with  those  Teeerred  aha 

the  existing  intereets  of  the  proprietors  wouli: 

the  directors. 

The  Chairmau  might  say  once  for  all  that 
consult  the  interests  of  the  proprietors  genera 
but  what  was  for  the  genenu  good.    They  ha 
they  wanttxl,  and  need  not  ask  for  any  more. 
The  resolution  w«is  then  unanimously  a_ 
The  Chairman  then  put  the  next  resolui 
at  the  rate  of  8  i>er  cent,  per  annum,  free  lu  l 
ending  the  30th  of  June,  be  paid  to  the  share 
day  of  Augii»t, 

CaiTieii  uniinimously, 

A  re&ulutigii  of  thanks  to  the  directors  hari 


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London  Financial  Association. 


9o7 


The  Chairman  returned  thanks  on  the  part  of  the  directors. 

Mr.  Eontrea  said  he  was  happy  to  say  he  heartily  concurred  in  the  reso- 
lution just  passed.  He  entertained  also  sentiments  of  the  highest  respect 
for  the  secretary  and  officers  generally  of  the  institution.  He  was  induced 
by  the  faith  and  confidence  he  felt  in  the  secretary,  as  well  as  in  liis  great 
ability,  to  take  shares  in  the  bank.  He  trusted  that  the  chairman,  however 
elated  he  might  feel  at  the  prosperous  state  of  the  establishment,  would 
see  the  propriety  hereafter  of  giving  a  little  more  attention  to  the  wishes 
of  the  snareholders,  and  of  avoiding  that  hasty  and  impatient  style  wliich 
he  (Mr.  Kintrea)  tiiought  he  had  displayed  that  day.  (Cries  of  "  No,  no.'') 

The  Chairman : — ^I  deny  that  I  displayed  any  haste  or  impatience, 
I  invited  the  shareholders  to  put  any  questions  they  pleased.  You  are, 
therefore,  wrong,  my  fine  fellow. 

Mr.  Kintrea  wished  that  the  chairman  would  not  be  quite  so  friendly 
with  him.  He  did  not  desire  that  the  chairman  should  be  on  such  familar 
terms  with  him.  He  tlien  moved  a  resolution  of  thanks  to  the  sc3retary, 
which  was  also  unanimously  assented  to. 

Mr.  Michel  next  moved,  and  Mr.  Flight  seconded,  a  resolution  of  thanks 
to  the  manager  of  the  Imperial  Bank,  for  the  valuable  services  he  had 
rendered  to  the  institution. 

Mr.  Bensham  having  acknowledged  the  compliment  paid  him, 

Mr.  Michel  moved  the  special  thanks  of  the  meeting  to  their  chairman, 
Mr.  Alderman  Lusk,  for  his  fair  and  impartial  conduct.  He  was  quite 
^XLTe  that  nothing  was  more  remote  from  the  disposition  of  that  gentleman 
than  a  feeling  of  discourtesy  towards  any  man.  He  thought  that  the 
shareholders  generally  might  congratulate  their  respected  cnairman  on 
being  placed  in  a  position  "vmere  he  would  have  an  opportunity  of  expressing 
his  opinions  upon  the  commercial  legislation  of  the  country  in  the  British 
House  of  Commons.  (Hear,  hear.^  He  hoped  that  the  worthy  alderman 
might  long  live  to  bear  his  ^  blushmg  honours  thick  upon  him." 

The  motion  having  been  agreed  to  nem,  con, 

Mr.  Alderman  Lusk  thanked  the  shareholders  for  their  great  kindness, 
^ui(]  pledged  himself  to  co-operate  with  his  brother  directors  in  every 
measure  having  for  its  object  the  progress  of  this  institution,  and  the 
making  of  it  a  thoroughly  good,  prosperous,  and  successful  bank. 

The  proceedings  then  terminated. 


LONDON  FINANCIAL  ASSOCIATION. 

The  fourth  half-yearlv  ordinary  general  meeting  of  the  shareholders  in 
this  company  was  held  at  the  South  Sea  House,  Threadneedle-street,  on 
the  17th  Jidy ;  Mr.  J.  Hackblock  in  the  chair. 

The  Secretary  (Mr.  Kock)  having  read  the  notice  convening  the  meet- 
mg,  and  also  the  minutes  of  the  previous  meeting,  the  following  report 
was  taken  as  read : — 

**The  annexed  statement  of  accounts,  made  up  to  the  3(Hh  June  last, 
^hows,  after  deducting  expenses  of  every  kind,  and  rebate  of  interest,  cal- 
c^ted  at  the  rate  of  5  per  cent,  per  annum,  a  total  of  £108,943.  Is,  to 
the  credit  of  profit  and  loss.  The  above  sum  includes  the  balance  of 
^40,663.  8«.  6d.  brought  forward  from  last  half-year.  The  directors 
recommend  the  payment  of  a  dividend  at  the  rate  of  6  per  cent,  per  annum, 
:^tid  a  bonus  of  10  per  cent,  per  annum,  free  of  income-tax,  which  together 
^^ill  absorb  £45,000  and  leave  a  balance  of  £62,660.1*.  to  be  carried  forward 


Digitized  by 


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I 


« 


958 


London  Financial  A$$ocf 


to  next  liiJf -year.    Tke  dividend  and  bontis  am 
per  ahar«,  and  will  be  payable  on  and  after  the 


Dr. 


Baianee-Mhecti  June  30, 


Capital  cMled  ap,  to.  : — £l5  per  ulurc  pAid  on  40,( 
Beserre  fund,  vk,  t— BalAnoe  at  Dec.  31,  18A4,  £& 

interest  thereon  sbt  monihs,  at  5  per  cent,  £2,088 
liiibilUtes  —  Compriainjj:  amoaaCs  da«  on   depoiit  i 

debcn tores,  intercut  thereoOi  und  current  accomitl 
FroUt  and  lo&s^^Vi  j>or  annoscd  statement 


Vf, 


▲>ero. 


Cash  at  bankers'  and  on  dcpoait 
Ijcwaa,  aecuritii^Sr  and  current  accoaats 


Pr<fit  and  Lqms  Account,  from  lit  Janum 
Br. 
OiUTent  expenflca,  inclading  direeton*  and  mam 
anee<,  salaries,  ftdrcrtlsing,  books,  8tationei7,  a 
rent,  and  all  other  charges        .».  *,« 

Bidanco  carried  down    .,.  #••  »*. 


Dividend  nt  the  rate  of  £5  per  cent,  per  anurn 
capital,  £15.000;  bonu*.  at  the  rate  uf  £lO  j 
annnm,  on  paid  (ip  capital,  £30,000 

Income-tax 

Bnlancei  being  nndirided  proits,  carried  lo  ne^nr  aci 


Or, 
Gross  profits,  riz.  j— Bnlance  of  nndirided  profits 
ward  from  3lst  December,  1864 »  £40.063.  8i. 
for  half-jrear  ending  30th  June,  1865,  £91,851 .  S 


Balance  brought  down   .., 

Dednct— 
Rebate  of  intereit  on  Umum 

annnm 


not  due,  taken  at  5  | 


BaUnoe  carried  forward  to  new  ncrotmt 


Tho  Chairman^  In  introauoiug  the  boainesf 
aocounta  was  extremely  clear,  and  required  Hi 
buiy  inaamuoh  as  the  number  of  proprioti>r%  ] 
600  and  (KK),  at  whioh  nnmber  they  hUKfd  tliii 


Digiti 


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London  Financial  Association.  959 

{ 000,  ftnd  as  they  were  spread  oyer  the  whole  of  the  United  King- 
im&  few  observ^ations  from  him  on  the  position  of  the  associatioii 
not  be  unacc^pi.ible — at  all  eventSy  to  the  absent  shareholders. 
the  stateaieut  of  accounts  before  them^  the  first  thing  to  whidi  he 
^1  the  attention  of  the  shareholders  was  the  item  of  liabiHticfj, 
mounted  fn  £649,187.  That  was  an  apparent  decrease  upon  the 
last  year,  but  in  reality  there  was  no  decrease,  because  it  so  hap- 
iai  several  lar^'i^  loans  fell  due  shortly  before  the  closing  of  the 
no  mm  of  £50,0(X»  fallii^  due  on  the  30th  of  June,  consequently, 
hiniiolders  wr>nl>l  see,  there  was  no  falling  off  in  the  business, 
ipeol  to  the  crcilit  side  of  the  account,  he  ¥nshed,  for  the  benefit 
iseot  shareholdeiB,  to  repeat  what  he  stated  on  the  last  and  previous 
s,  that  the  loaii.^,  securities,  and  current  accounts,  which  were  put 
the  balance  i^luot  at  £1,383,681,  did  not  represent  the  value  of 
ritiea  dep)sited  with  the  association ;  it  merely  represented  thts 
the  adTaj]ce.4.  The  securities  they  received  for  loans  and  advances 
7  much  larger  in  amount,  because  they  took  care  to  have  a  very 
ible  margin.  (Hear,  hear.)  It  did  not,  of  course,  signify  to  the 
der9  how  they  were  valued,  and  he  merely  named  the  droumstance 
mrpoae  of  point!  ag  out  that  it  was  the  amount  of  advances  for  whidi 
ities  were  given  that  was  put  down  in  the  balance-sheet ;  the  value 
(rarities  themseh  es  being  much  nearer  £2,000,000  than  £1,500,000. 
rities  they  hdd  were  taken  at  a  very  low  price,  certainly  far  Mow 
mnm  market  piice.  (Hear,  hear.)  The  result  of  the  half-year's 
wmiLd  be,  as  coni]>ared  withthelast  half-year,  as  follows:— In  the  year 
bib  December,  1 8  (H,  after  paying  all  expenses,  making  a  reduction 
^  of  interest  J  tLtid  making  an  allowance  for  eveiything,  the  net  profit 
630.  17^.  OJ  ,  while  in  the  half-year  ending  30th  of  June  last  it 
i  to  £68^79  12j.  6d.,  being  an  increase  of  £7,248.  14«.  9J., 
13  a  highly  BatLs&u:tory  state  of  thiuffs.  (Cheers.)  Then  again, 
year  they  adiled  £18,654  to  the  imdivided  profits,  making  the 
^Oea,  B3, 6c£.,  while  this  half-year  they  had  added  £22,596. 11«.  6d,, 
he  total  amount  of  reserve  £62,660.  (Cheei's.)  That  again  was 
>ry.  (Hear,  hear.)  During  the  last  half-year  and  the  half-year 
I  they  did  not  bring  out  a  single  company.  The  whole  of  these 
msequently  hj^i  l^en  earned  in  regiilar,  true,  and  legitimate 
business.  (Cheers.)  He  was  not  aware  that  he  had  anything 
a  Rtate^  b\it  should  be  happy  to  answer  any  questions  that  hon. 
rvi  migjit  pnt  to  him.    With  the  pmnission  of  the  meeting,  he 

0  move  that  the  report  and  accounts  now  before  the  meeting  be 
and  adopted. 

ctrristjn  seconded  the  moiion. 

lie  called  attention  to  the  increase  of  the  current  expenses,  whidi 

1  this  half-year  to  £13,924. 

lairman  explained  that  a  portion  of  the  increase  was  on  account 
pital  not  being  all  paid  up  last  half-year,  which  rendered  the 
on  to  the  directors  less  in  amount,  and  that  the  extension  of 
necessitating  a  larger  staff  and  better  offices,  accounted  for  the 
le  increiMse.  The  expenditure  on  this  item  during  the  previous 
bs  was  £12,833,  and  during  the  last-year  £13,924,  so  that  in 
(act  the  increase  was  not  very  large. 

ebolder  inquired  what  amount  of  deposits  was  included  in  the 
account. 

liiiirman  replied  that  the  whole  item,  comprising  deposits,  interestn 
and  current  accounts,  was  £649,187,  and  probably  out  of  that 


Digitized  by 


G-' 


«M 


Ciiy  Ami. 


MiOyOOO  w«M  OB  dsponi.     (Heir,  ^mt.) 
incftMe  thAt  item,  became  n  wap  mMxfy 
depcwifa  thfti  th^  wero  able  to  vork  the  ta 
ta  ffive  such  good  dirideiKb.     (CIm««.) 

£i  repl^  to  m  fnrthear  qncBtiOB^ 

The  Chaiiman  sud  Umj  did  not  aalidiiaii 
present  tlusi^  iria  doI  the  iVBciesI  cfankee  < 
entarad  utto  their  tiim^^ElB.    (Hev.) 

The  report  and  BMeiiMal  of  aoeovnti  w«r 
■Dd  a  diTide&d  and  hoimt,  amountiiig  toge 
were  dodaml^hetiig  at  the  rate  of  £t5  per  c 

A  otirdial  TOie  of  thanks  to  the  directoi 
hy  Kr.W.B^d^and  earried  hj 


THE  CITY  BAl 

Thx  ordtnary  half-yearlr  genend  meetiiig 
bank  was  held  on  the  18th  July  at  the  Lood 
port  of  the  direeton  and  declaration  of  t 
ending  the  90th  of  Jttne*  Mr.  Jonea,  in  o 
of  Mr.  B^^praided, 

Mr.  Worth,  the  seopetarT-,  having  read  the 
the  usual  formaJltiea  we  gone  throa|^ 
The  foUowing  repoft  and  haUnoB-afeiet  wi 
"  The  <lireclora  beg  to  snbmit  to  the  ahare 
«^f  accofinta  to  the  30th  June,  showing  a  gr> 
nndnding  the  amoimt  brought  forw^ard  fr 
£l»5^15.9i.  Thiarcndtenahlmthedirectc 
<aqienaiwrj  proYJdiDg  for  bad  and  donbtfol 
iniewl  on  hills  disoonnted  not  jet  due,  to  * 
£6  po^  cent*  per  annnm  on  £500,0au,  the  p 
of  cat  flu  per  ihare  on  10,000  abarw,  togei 
Munun,  and  to  carry  forward  £1,91^  13m.  2 
aeoowit.  The  following  gentlemen  retire 
Tis.— Mr.  Baal,  Mr.  HenriqneA,  and  Mr.  Y< 
aelvda  ibr  r»-deotton.  It  is  with  deep  re^ 
■amioetiiat,  fmrn  drcnmstanoei  which  have 
Ball  baa  deemed  it  neceasarj  to  teodar  his  r 
tnttftntiirn  ;  th^y  caamit,  howerer^  allow  th 
aeknowledgipg  the  imporfcAnt  serrioee  rend 
iti  formiitioD,  ajid  the  high  honour  whieh  lu 
faUtlons  with  it.  The  boaiDeaa  of  the  Be 
afford  highly  satisfactory  rosnlta.  The  ' 
ineome  tut)  will  be  payable  om  and  after  Tc 

J}r»  LialiUUcM  and  AfsUfJJu* 

Chpitat  paid  iqi^m..  £30  per  dtti«  on  10.000  a 
ABKiant  Off  letOTTe  fond     •••        .*•        ..* 
AxDomt  dm  by  the  bank  on  enneat  and  deposit 

payable,  letters  of  cndii,  &e.    .„        

To  piofll  and  losi,  for  the  balance  of  that  accoan 
fi9o6t  brought  fbnrard  horn  last  half-year,  £4 
nnee  added,  £€0^629. 19f.  U, 


Digitized  by  VjiOOQIC 


City  Bank. 


961 


Or. 

Excheqaer  bills,  Govenunent  securities,  and  East  ludia  deben- 
tures          

Other  securities,  including  bills  discounted  and  loans 

Baiik  premises  in  Threadneedle- street  and  Old  Bond-street, 
furniture,  fixtures,  &c 

Cash  in  hand,  at  Bank  of  England,  and  at  call 


£305,642  10 
4,691,576  15 

29,458  13 
651,100  12 


£5,677,778  10     8 


Profit  and  Loss  Account  qf  the  City  Bank  for  the  half -year  ending 

June  30M,  1865. 
Dr. 
i'arrent  expenses,  including  salaries,  rent,  stationeiy,  directors* 
remuneration,  proportion  of  building  expenses,    bad  debts, 

income-tax,  &c 

Amount  carried  to  profit  and  loss  new  account,  being  rebate  on 

bills  discounted  not  yet  due        

Dividend  account  for  the  payment  of  a  dividend  at  the  rate  of 
£6  per  cent,  per  annum  upon  £500,000,  amount  of  paid-up 

capittd  upon  10,000  shares  

Bonus  of  £2.  5*.  per  share  on  10,000  shares        

Undivided  profit  transferred  to  profit  and  loss  new  account 


Cr. 
Balance  brought  down,  viz.  : — Surplus  profit  brought  forward 
from    last    half-year,    £4,685.    9«.    \\d,\    since     added 
£60,629.  19#.  l(i. 


£20,938  13     8 
5,583     2     1 


15,000 
22,500 


1,293  13 


£65,315     9     0 


£65,315     9     0 
£65,315     9     0 


The  Chairman,  who  had  stated  proviously  that  he  occupied  the  chair  in 
consequence  of  the  resignation  of  Mr.  Peter  Bell,  said  that  the  figures  in 
tlie  report  elucidated  so  clearly  the  position  of  the  bank,  that  it  was  not 
necessary  for  him  to  make  any  comments  upon  them.  He  would  there- 
f  ijre  content  himself  with  simply  moving  the  reception  and  adoption  of  the 
reiK>rt  and  accounts.  At  the  same  time  he  should  be  happy  to  answer 
judiciously  any  questions  which  hon.  proprietors  might  put,  or  to  supply 
iUiy  information  which  they  were  desirous  of  receiving.  Before  putting 
the  resolution,  it  was  his  duty  to  declare  a  dividend  of  6  per  cent,  per 
iUinum  on  £500,000,  the  paid-up  capital,  together  with  a  bonus  of  £2.  6«. 
\i&T  share  on  10,000  shares,  which,  together,  was  equal  to  15  per  cent,  per 
;uaium.     (Cheers.) 

Mr.  Hackblock  seconded  the  resolution. 

Mr.  H.  S.  Brown  inquired  how  it  was  that  the  current  expenses,  which 
List  half-year  amounted  to  £14,000,  were  put  down  at  £20,938. 

The  Chairman  explained  that  the  increase  under  this  head  did  not  arise 
from  any  large  addition  to  the  working  expenses,  but  from  its  bein^  ne- 
cessary to  m^e  a  larger  allowance  tlmn  ordinary  for  bad  and  doiibtful 
4lebt8. 

Mr.  Brown  inquired  whether  the  £30,000  set  aside  last  half  year  to  meet 
the  bad  and  doubtful  debts  had  been  exceeded,  and  this  additional  amount 
rendered  necessary. 


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962  City  Bant. 

The  Ohairman  replied  that  he  had  already  explained  that  the  deficicDcy 
arose  from  bad  debts  exceeding  in  amount  the  ordinaxy  anm  set  i^^  on 
tiiat  acooont. 

Mr.  Knahfield  said  that  it  wonld  be  in  the  recollection  of  the  meeting 
that  on  the  last  occasion  he  called  attention  to  the  necessity  ol  appointiiig 
auditors  who  should  be  alike  independent  of  the  propnetois  and  the 
directors.  He  should  wish  to  see  first-rate  aoconntantis  quite  nnoonnectel 
with  the  bank  appointed.  He  was  satisfied  that  that  was  a  wholesome 
rule,  and  he  felt  so  strongly  upon  the  noint  that  he  was  of  opinion  that  at 
no  distant  day  the  Goyemment  woula  take  the  matter  up,  and  compel  a 
public  and  independent  audit,  not  only  of  banks,  but  of  all  joint-sto^ 
companies.  Sucn  a  proceeding,  so  far  from  being  injurious  to  the  bank^ 
would  increase  the  confidence  of  shareholders,  and  prevent  the  possibility 
of  a  recurrence  of  such  disasters  as  had  taken  {dace  in  respect  to  sever&I 
commercial  undertakings  of  a  similar  character.  He  was  quite  aware 
that  it  might  be  said  that  he  was  casting  censure  on  the  present  auditoxs 
by  bringing  forward  such  a  subject.  He  did  not  say  one  woid  against 
either  of  uie  auditors,  of  both  of  whom  he  had  the  hi^iest  possiblcf 
opinion,  but  he  did  say  that  it  was  but  human  nature  that  auditor? 
should  wish  to  become  directors,  and  if  he  himself  were  an  auditor  who 
wanted  to  become  a  director  he  should  feel  that  it  would  be  quite  im- 
possible for  him  to  attain  his  object  if  he  always  set  himself  in  oppodtioD 
to  the  board,  and  refused  to  accept  the  accounts  as  stated  by  them. 
Now  the  yery  question  that  had  been  raised  about  the  increase  of  the 
expenses  must  have  come  under  the  attention  of  the  auditors,  because  it 
appeared  by  the  statement  that  they  were  not  expenses  but  bad  debb, 
and  had  there  been  auditors  unconnected  with  the  bank  eveiything  would 
have  been  imder  its  proper  head. 

The  Ohairman  said  that  the  item  in  question  included  bad  debts. 

Mr.  Bushfield  understood  that  the  reason  for  putting  the  expenses  dowD 
at  the  increased  amount  of  £20,938  was  on  account  of  an  increase  in  had 
debts.  He  knew  very  well  that  there  were  some  banks  that  had  £<> 
auditors  at  all.  For  his  part  he  should  be  sorry  to  have  anything  to  d-» 
with  such  institutions,  and  thought  nothing  coiud  be  more  to  the  adran- 
taee  of  proprietors  generally  than  that  there  should  be  a  thoroughly 
independent  audit,  ana  he  pointed  to  the  beneficial  working  of  the  pfublic 
audit  of  the  gas  companies  of  the  metropolis,  which  had  been  insisted  tm 
by  the  Gbvernment,  alike  for  the  benefit  of  the  gas  consumers  and  the 
proprietors,  as  a  reason  for  the  introduction  of  some  such  system  ist^-v 
banks  and  oommeroisl  companies.  He  was  quite  sure  that  by  lis  adc^oo 
they  would  secure  a  course  of  prosperity  which  they  could  obtain  in  n** 
other  way. 

Mr.  Billing  thought  that  the  questions  which  had  been  asked  wodM 
have  been  rendered  unnecessary  had  the  chairman  made  a  detailed  state- 
ment of  the  position  of  the  baiJc.  Ko  imformation,  however,  was  givm 
as  to  the  sum  required  for  bad  debts,  and  at  the  time  it  was  sti^ed  that  the 
amount  reserved  for  that  purpose  was  ample  to  cover  all  the  losses.  The 
natural  question  to  ask  was,  had  it  done  so,  and  if  not,  whether  it  had 
been  necessary  to  take  a  portion  of  the  profit,  as  well  as  the  sum  reserved 
to  meet  the  losses.  What  he  wished  to  know  was,  whether  it  was  proposed 
to  set  aside  a  further  sum  as  a  reserve,  to  meet  future  losses,  as  well  as  to 
defray  those  which  had  been  incurred.  As  reference  had  been  made  to  ^e 
appointment  of  auditors,  he  wished  to  obserTO  that  be  considered  it  highly 
desirable  that  the  shareholders  should  have  some  voice  in  the  appointment 
of  directors  whenever  a  vacancy  arose.    Up  to  the  present  time  it  had 


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been  Tisiial  for  the  board  to  fill  up  all  TaeancieSyand  then  to  Bubmita  mere 
formal  motion  to  the  ■hareholdera  ocmfinniiig  the  appomtment.  He 
recommended  that  when  Taoaaciee  azoae  the  directors  shoold  submit  a  list 
of  the  shareholders  eligible  to  be  on  the  board,  and  those  whom  they 
reoommendedy  leaving  the  aotoal  election  to  the  general  body  of  the  pro- 
prietors.  Abore  all,  he  hoped  that  they  would  establish  a  resenre  fond 
for  the  purpose  of  meeting  current  losses,  which  reserve  might  come  out 
of  interasty  and  need  not  materially  effoot  the  dividend. 

The  Chairman,  in  reply  to  the  observations  made  respecting  an  audit 
by  persons  wholly  unconnected  with  the  bank,  said  that  the  board  pro- 
mised  on  the  last  occasion  to  take  the  matter  into  consideration.  They 
had  done  so,  and,  after  giving  due  weight  to  the  arguments  brought 
forward  by  the  hon.  proprietor,  they  had  come  to  the  conclusion,  unani- 
mouslyy  wat  it  was  not  desirable  or  for  the  interests  of  the  oompnuy 
to  appoint  a  paid  accountant  to  investigate  the  affairs  of  the  bank,  which 
were  conducted  prudently  and  discreetly,  being  known  only  to  the 
officials  and  the  directors.  When  accountants  were  introduced  from  with- 
out, the  work  was  not  usually  done  by  the  accoimtant  himself,  but  gentlemen 
deputed  by  him  were  sent  to  the  office,  who  saw  all  the  arrangements 
of  the  bank  and  the  nature  of  each  accoimt,  and  a  principle  of  vast 
importance— that  of  secrecy — ^was  immediately  upset.  In  addition  to 
this,  he  might  say  that  they  were  bound  in  this  matter  to  act  in  ac- 
cordance with  the  terms  of  their  charter,  which  was  drawn  up  under  the 
authority  of  the  Grovernment  and  had  been  strictly  scrutinised.  That 
charter  declared  that  two  of  the  shareholders  chosen  at  the  meeting  should 
be  the  persons  appointed  to  audit  the  accounts.  It  had  been  alleged  that 
shareholders  appointed  in  that  way  naturally  desired  to  become  (Erectors, 
asd  would  pass  the  accounts  submitted  by  the  directors  without  much  ex- 
amination. He  was  not  there  to  discuss  the  reasons  why  gas  companies 
should  have  public  auditors ;  but  they  all  knew  that  the  Bank  of  Eng- 
land and  several  of  the  chief  banks  of  London,  including  the  London  and 
Westminster,  the  Union,  and  other  joint-stodc  banks,  hi^  no  auditors  at 
all,  and  yet  were  most  flourishing  institutions.  With  regard  to  the  obs^- 
vation  aooxit  the  auditors  wishing  to  become  directors,  he  coidd  only  say 
that  no  gentleman  who  had  ever  sat  at  the  board  of  this  bank  had  been 
an  auditor.  Mr.  Billing  had  referred  to  the  circumstance  that  it  was 
stated  last  year  that  an  ample  reserve  had  been  set  aside  for  losses,  but 
the  fact  was  that  the  losses  of  last  year  were  ratlier  more  disastrous  than  had 
been  anticipated,  and  exceeded  the  amoujit  which  the  board  thought  would 
be  sufficient.  Everyone  who  was  connected  with  the  sale  of  produce  knew 
that  the  market  for  many  sorts  of  produce,  instead  of  responding,  had  de- 
clined with  the  declension  of  the  interest  of  money.  They  took  the 
valuations  at  the  current  rate  of  the  day,  which  proved  insufficient,  which 
was  the  reason  why  a  considerable  sum  had  been  added  to  the  present 
half-year's  account.  The  bank  had  not  suffered  in  the  present  half-year, 
for  a  very  small  sum  was  sufficient  to  cover  their  losses  upon  it,  and  they 
were  able  to  pay  a  very  handsome  dividend,  which  dividend  he  assured 
them  had  been  earned.  (Cheers.)  He  hoped  that  explanation  would  be 
satiMfactory,  and  he  had  endeavoured  to  make  it  as  dear  as  possible. 

Mr.  Perr^  inquired  whether  they  intended  to  fill  up  the  vacancy  on  the 
board  occasioned  by  the  resignation  of  Mr.  Bell. 

The  Chairman  stated  that  the  retirement  of  that  gentleman  had  re- 
duced the  number  of  directors  to  twelve,  and  it  was  proposed  to  retain  it 
at  that  numbor.  (Hear,  hear.)  If  the  board  considered  it  was  judicious 
at  any  future  time  to  recommend  the  addition  of  any  particular  gentle- 


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964        Imperial  Mercantile  Credit  Association,  Limited. 

man,  the  shareholdeati  would  have  full  opporimdty  of  expreBnng  tlneir 
concnrrenoe  or  otherwise  in  the  reoommenaatioD  of  the  directoxs. 

The  retiring  directorB,  Messrs.  East,  HeniiqueSy  and  Young,  were  thai 
unanimously  re-elected. 

Mr.  Buahiield  moved  and  Mr.  Perry  seconded,  the  re-election  ol  Means. 
Owen,  Lewis,  and  J.  Curry  as  auditors,  which  was  unanimously  agreed  to, 
a  vote  of  thanks  being  given  to  them  for  their  past  services. 

On  the  motion  of  Mr.  Alderman  Abbiss,  a  cordial  vote  of  thanks  was 
given  to  tlie  chairman  and  directors,  and  a  similar  compliment  to  the 
manager  terminated  the  proceedings. 


IMPERIAL   MERCANTILE    CREDIT  ASSOCIATION,  LMITEIX 

The  second  ordinary  general  meeting  of  this  company  washeldattiie 
London  Tavern,  on  uie  13th  July ;  Mr.  P.  D.  Hadow  in  the  diair. 

The  Secretary  (Mr.  Winterbottom)  having  read  the  advertisement  oon. 
vening  the  meeting,  also  read  the  following  report  and  statement  of 
accounts : — 

'*  The  directors  have  the  satisfaction  of  submitting  the  annexed  state- 
ment of  accoimts,  made  up  to  the  conclusion  of  the  past  half-year,  toa 
which  it  will  be  seen  that,  after  discharging  all  expenses  of  the  establish- 
ment, and  providing  for  rebate  of  interest  on  loans  and  bills  not  yet 
matured,  writing  off  all  losses  and  making  ample  provision  for  every  con- 
tingency, there  remains  for  disposal  the  sum  of  £103^5.  Is.  Bd,  This 
amount  the  directors  reoonmieDd  to  be  appropriated  as  foUovB*.— To 
dividend  of  10s,  per  share  or  20  per  cent,  per  annum,  free  of  income-tax^ 
£50,000 ;  to  income-tax,  £833.  6a.  8d. ;  to  balance  of  profit  uni^ropriflfced, 
£53,141.  16a.  The  operations  of  the  amalgamated  Company  have  nov 
extended  over  a  period  of  thirteen  months.  The  amount  of  profits  dis- 
tributed in  January  last,  added  to  that  now  exhibited,  shows  a  total  of 
£153,975.  la.  8d.  The  directors  consider  they  are  justified  in  oongratn- 
lating  the  proprietors  upon  a  result  which,  bearing  in  mind  the  difficolties 
which  almost  invariably  attend  new  undertakings,  and  the  exceptionallT 
imf  avourable  condition  of  all  monetary  affairs  during  a  considerable  portios 
of  the  time,  cannot  be  regarded  as  otherwise  than  satisfactory  for  the 
past,  and  encouraging  for  the  future." 

Balance^sKeetf  20th  June^  1865. 

CAPITAL  AND  LIABILITIES. 

Dr. 

Capital :  100,000  shares  of  £50  each,  £5  per  share  paid  up  X500.000  0  <^ 
Liabilities :   Cash  held  upon  deposit,  £2,129,325.  8a.  3d. ; 

credit  balances,  £209,747.  7a.  id. ; 2,339,072  15  ' 

Bills    payable,     £394,537.     16«.     lOd.;    bankers'     credits, 

£550,000 ;  endorsements  and  guarantees,  £946,708.  6#.  9d. ; 

sundry   accounts   for   commissions  and  chaises  unpaid, 

£19,674.  13*.  8d '      1,910,820  17  S 

Rebate  on  bills  not  due 15,404  10  10 

Profit  and  Loss  :  balance  being  net  profit  carried  down       ...       108,975   1 

£4,869,273 


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A8B£TB» 


Cr. 


Caah  at  bankers,  in  hand  and  at  call    ..» 

Bills  receiyable     

Loans,  secoritieB,  and  current  accounts 
iDTestments  and  interest  accrued  thereon 
Office  furniture,  fittings,  &c.      »^ 


£227,156  13 

1,444,996  11 

2,605,282  16 

591,006  13 

830  10 


£4,869,273    5    4 


Profit  and  loss  account,  from  Ut  January  to  30th  June,  1865. 
Dr. 

DiTidendoflO».  per  share  on  100,000  shares £50,000    0    U 

Income-tax  on  abore        833    6    H 

Balance  of  profits  unappropriated  ... 53,141  15    0 


Cr. 
Bjdance  being  net  profit  brought  down  .., 


£103,976 

1     8 

.    £103,975 

1     8 

£103,975 

1     8 

The  Chairman,  in  moying  the  adoption  of  the  report,  accounted  for  the 
absence  of  several  of  the  directors  who  were  down  in  the  country  as  can- 
didates at  the  general  election.  Whatever  report  Uiey  might  make  o£ 
tbemselyes  to  the  electors,  he  doubted  whether  it  would  be  so  entirely 
satisfactory  as  the  report  made  to  the  shareholders  of  this  company  that  day, 
and  which  was  a  report  that  he  confidently  predicted  would  meet  with 
general  approbation.  He  need  not  dwell  on  the  peculiarity  of  the  business, 
the  care,  experience,  and  vigilance  required  to  be  possessed  by  the  directors, 
or  the  amount  of  careful  discrimination  which  must  be  exercised  by  the 
managers.  Looking  to  results,  he  thought  all  that  might  be  taken  for 
granted,  inasmuch  as  at  a  time  when  there  had  been  a  most  exceptional 
rate  of  interest,  and  when  the  recent  speculative  mania  had  been  succeeded 
by  a  period  of  dullness  and  reaction,  they  had  still  been  able  to  present  to 
the  shareholders  a  most  favourable  balance-sheet.  (Hear,  hear).  He 
was  hai^y  also  to  say  that  the  business  had  improved  not  only  in  quantity 
but  in  quality.  (Cheers).  They  had  gained  experience,  and  now  stood  in 
a  position  much  more  independent  of  Sie  speculations  of  the  stock  market 
or  the  changes,  rapid  and  unexpected  as  they  were,  in  commercial  affairs. 
Whether  thmgs  were  in  a  state  of  dej^ression  or  elation,  this  company  was 
in  a  position  to  do  a  comfortable  business,  and  the  fact  that  their  deposits 
during  the  last  half-year  had  increased  by  more  than  £1,000,000  was  a 
proof  of  public  confidence  in  their  security  to  an  extent  far  b^ond  any- 
thing that  could  be  expected  by  a  young  association  of  this  kind.  Their 
wortliy  chairman  dilated  most  eloquently  upon  the  character  of  their 
securities  at  the  last  meeting,  but  as  a  plam  business-man  he  would  simply 
content  himself  with  saying  that  they  were  good,  and  he  believed  entirely 
sound*  The  directors  were  largely  interest^  in  the  success  of  the  imder- 
taking,  and  they  felt  that  while  they  were  watching  over  the  interests  of 
the  shareholders  they  were  watching  over  their  own.  (Hear,  hear).  He 
concluded  by  moving  the  adoption  of  the  report. 


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Mr.  M'Pherson  seconded  the  motion. 
Mr.  Beckford  called  the  attention  of  the  I 
last  balance-sheet  there  was  a  balance  of  bet^ 
appropriated ;  he  wished  to  know  what  had  I 
had  been  amalgamated  with  the  net  profit  ap 
of  £103,000. 

T]ie  Chairman  replied  that  it  was  in  the  sx 
of  profits  unappropriated,  £53441. 

Mr.  Beckford  expressed  au  opinion  that  i 
separate  item  in  the  accountti,  because  as  the 
8iou  was  created  that  the  net  profits  of  th 
£103,000,  wherejis  in  point  of  fact  they  did  i 
half  that  sum. 

Mr.  King  also  took  the  same  view,  and 
better  to  have  at  once  placed  the  earning 
making  them  appear  40  per  cent.,  as  was  done 
accounts. 

The  Chairman  explained  that  it  was  expr 
the  operations  of  the  amalgamated  company  h 
of  thirteen  mouths,  and  that  the  amount  of 
last  added  to  that  now  exhibited  showed  a  toi 
$o  that  it  was  perfectly  clear  what  was  meai 
it  would  be  better  to  have  a  separate  item 
the  account,  but  it  was  the  opinion  of  men  o 
that  the  present  form  of  the  accounts  waa  a 
Mr.  Kmg  called  the  attention  of  the  boar 
Humber  Iron  Works  Company,  which  was 
Mercantile  Credit  Association.  It  was  stai 
company  that  a  profit  of  20  per  cent,  mighi 
remunerative  contracts,  to  the  extent  of  £3 
the  facfc  being,  that  instead  of  being  remui 
contracts  involved  a  loss  of  £40,000.  The  c 
Works  declared  that  they  were  not  responi 
prospectus,  and  the  ultimate  result  was  that 
were  not  now  worth  5s.  a  piece.  It  was  the 
like  the  present,  scrupulously  to  investigat 
a  prospectus,  because  it  was  on  the  faith  of  g 
were  subscribed  for,  and  it  oould  not  be  den 
out  schemes  in  which  all  the  promises  in 
would,  in  the  end,  be  most  injurious  to  tl 
brought  them  out. 

The  Chairman  explained  that  the  Humbe 
not  really  brought  out  by  this  association  in 
the  old  Mercantile  Company,  who  were  de 
made  to  them  by  those  who  proposed  to  brii 
be  satisfactory  to  the  meeting  to  know  that  n 
which  had  been  sustained,  part  of  which  iv 
the  amplest  allowance  had  been  made  in 
(Cheers.)  The  present  account  was  rather  l 
because  tliey  then  carried  over  £53,000,  wil 
the  loss  sustained  through  the  Humber  Iron 
applicable  to  that  year,  although  its  amount 
They  now  carried  over  £103,000  with  a  b( 
Hhareholders  might  be  well  assured  that  a  sin 
Works  would  not  again  occur. 


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Imperial  Mercantile  Credit  Association^  Limited.       967 

A  Shareholder  thought  that,  even  takuig  into  aoooant  what  had  beeu 
l)ronght  forward,  there  was  great  reason  to  be  satisfied. 

Mr.  Cope  was  also  ci  opinion  that  the  shareholders  ought  to  be  grateful 
to  the  directors  for  having  pulled  them  through  the  difficulty  so  manfully. 
He  was  very  glad  tlie  question  had  been  brought  forward,  because  it  had 
elicited  the  very  satisfactory  information  that  they  were  now  quite  dear 
of  this  miserable  concern.     (Hear,  hear.) 

The  Chairman  observed  that  the  bringing  out  of  new  companies  was  a 
class  of  business  which  in  most  cases  was  very  successful,  but  it  was  of 
course  attended  with  a  considerable  degree  of  risk.  He  was  happy  to 
inform  the  meeting  that  the  proportion  of  profit  earned  this  year  by 
bringing  out  new  companies  was  very  small  as  compared  with  that  derived 
from  other  and  a  more  legitimate  description  of  business.    (Cheers.) 

The  motion  for  the  adoption  of  the  report  and  statement  of  accounts  was 
then  put  and  carried  unanimously ;  and  a  dividend  of  lOa.  per  share,  equal 
to  20  per  cent,  per  annum,  was  declared. 

The  Chairman  then  poposed  a  special  resolution  to  the  effect  that  the 
<lirector8  might,  from  time  to  time,  make  calls  on  the  members  in  respect 
to  the  unpaid  capital  to  the  amount  of  £5  per  share,  payable  in  not  less 
than  three  months  after  the  previous  cidl,  twenty-one  days'  notice  beinff 
given  of  the  intention  of  the  directors  to  make  such  oalL  He  explained 
that  ihe  effect  of  the  alteration  was  to  limit  the  power  of  the  directors  in 
making  calLi  to  £6,  whereas  at  present  they  had  power  to  call  £10  or  £X& 
if  they  liked.  In  point  of  fact,  to  put  an  extra  case,  they  were  empowered, 
uDder  the  present  articles  of  association,  to  call  up  £4-5  upon  every  share. 
The  resolution  having  been  seconded, 

Mr.  King  suggested  that  the  limit  should  be  £2. 10s.  A  call  of  £5  pro- 
«hiced  a  half  a  million,  and  he  did  not  think  it  would  be  found  necessary 
?*t  any  time  to  make  a  call  to  such  an  extent,  especially  as  the  shares  were 
held  in  hundreds  and  fifties.  He  thought  it  was  much  better  tiiat  they 
^liould  limit  the  power  of  the  directors  to  calling  up  a  quarter  of  a  million 
at  a  time,  and  moved  an  amendment  to  that  effect,  which  was  seconded  by 
a  shareholder. 

The  Chairman  explained  that  although  it  was  proposed  to  retain  power 
to  make  a  call  of  £5  at  once,  the  directors  had  no  idea  or  intention  what- 
ever to  make  a  call.  It  was  not  necessary  that,  even  with  such  power, 
the  directors  should  make  a  call  exceeding  £1  or  £2,  nor,  indeed,  with 
continually  increasing  deposits,  was  it  likely  they  woidd  require  to  make 
any  further  calls.  At  the  same  time,  he  thought  more  oonfidenoe  wonld 
be  felt  in  the  company  if  the  directors  were  empowered  to  make  a  call  to 
^he  extent  proposed,  though  such  power  were  never  exercised,  and  he 
hoped  the  meeting  would  support  the  views  of  the  directors  upon  this 
•subject 

The  amendment  was  then  put  to  the  meeting  and  lost,  only  about  twenty 
liands  beinp  held  up  for  it,  and  the  original  motion  was  agreed  to. 

The  Chairman  stated  that  an  extraordinary  general  meeting,  of  which 
<me  notice  would  be  given,  would  be  held  at  the  office  to  confirm  the  la«t 
T*?3olution. 
In  r«ply  to  a  question  from  Mr.  B.  Scott, 

The  Chairman  stated  that  four  vacancies  had  taken  place  on  the  board, 
^hree  during  the  past  half-year,  and  one  in  that  preceding ;  but,  in  accord- 
»ace  with  the  wishes  of  the  shareholders,  it  was  not  intended  to  fill  them 
iJP,  and  if  a  person  of  great  commercial  standing  and  experience,  one  who 
l^oiiUl  bring  a  great  d^  of  business  to  the  companv,  offered  himself,  the 
•><>ard  would  think  it  right  to  submit  the  matter  to  the  meeting.  (Cheers.) 


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968  Lond(m  and  Westmimter  BanlL 

A  oardial  vote  of  thanka  was  given  to  the  chaiziiian  and  direetora,  and  a 
Bimilar  compliment  to  Mr.  Buker,  Mr.  SandemaD,  and  the  officers  of 
the  bank,  for  their  able  management  of  its  businefw,  terminafced  the 
proceedings^ 


LONDON  AND  WESTMINSTER  BANK. 

A  OENEBAL  meeting  of  the  proprietors  was  held  on  the  19th  July,  at  the 
bank  in  Lothbnrv,  for  the  purpose  of  receiving  a  half-yearly  r^wrt  from 
the  directors,  and  declaring  a  dividend ;  Mr.  Alderman  Salomons,  MP^ 
presided. 

Mr.  Shipp,  having  read  the  advertisement  convening  the  meeting,  read 
the  following  report  and  statement  of  accounts : — 

"  The  directors  have  to  report  that — after  making  provision  for  all  bad  and 
doubtfdl  debts,  paying  the  income-tax,  and  settinfir  apart  £2,000  towards  the 
buildings  of  the  bank—the  net  profits  of  the  bank  for  the  last  half  year  amount 
to  £151,498.  7s,  8d.  This  sum,  added  to  £9,357.  Is,  6d,,  the  anappropriated 
balance  of  the  preceding  half-year,  will  amount  to  £160,855.  9s.  la.  Oat  of 
this  amount  interest  on  the  rest,  or  surplus  fund,  at  the  rate  of  5  per  cent,  per 
annum  (£8,250)  has  been  added  to  that  fund,  which  now  amounts  to  £338,250. 
The  directors  now  declare  a  dividend  to  the  shareholders  at  the  rate  of  6  per 
cent,  per  annum,  and  bj  way  of  further  dividend  out  of  the  profits,  a  bonus  of 
10  per  cent,  on  the  paid-up  capital.  After  these  payments  are  made  there  will 
remain  a  balance  of  £22,605.  9«.  Id,  to  be  carried  to  the  profit  and  loss  account 
for  the  current  half  year. 

LoNDOH  AND  Westxinstsb  Bavk,  Juks  SO,  1865. 

Dr. 

Proprietors  for  paid-up  capital             £1,000,000  0  0 

Amount  due  by  the  bank    on    deposits,    circular   notes, 

dividends,  and  other  monies,  payaole  on  demand*           ...  19,552,177  10  f* 

Rest,  or  surplus  fund                330,000  0  o 

Balance  of  profit  and  loss  account,  Dec.  31,  1864                 ...  9,357  1  5 

Net  profits  of  the  past  half-year          151,498  7  8 

£21,043,032  19    6 


0 


Or, 

Government  stock.  Exchequer  lulls,  and  India  bonds £2,489,412    9 

Bills  discounted,  loans  to  customers,  and  other  securities     ...  16,936,300  IS    5 
Cash  in  hand  1,617,819  18    I 

£81,043,032  19    6 
FBOnX  AND  LOSS. 

Dr. 

Expenditure  of  the  eight  establishments,  including  rent,  taxes, 

salaries,  stationery,  &c £52,970    8    1 

Amount  set  anart  towards  the  buUdings  of  the  bank 2,000    0    0 

Amount  added  to  rest  or  surplus  fund,  bj  interest  thereon,  at 
5  per  cent,  per  annum 8,250    0    0 

Carried  forward  £63.220    6    I 

*  This  sum  does  not  include  acceptances,  £985,211.  lOs,  9if. 

Digitized  by  VjOOQIC 


Landm  and  Westminster  Banl. 


969 

£63,220    8     1 


Brought  forward ,        

Payment  of  the  dividend  now  declared,  at  the  rate  of  6  per 
cent,  per  annum,  for  the  hist  half-year  on  the  paid-np 

capitalof  £1,000.000      30,000    0    0 

BoDoa  of  10  per  cent,  on  the  capital       100,000    0    0 

Balance  of  profit  and  loss  account  22,605    9    1 


Cr. 


£215,825  17     2 


£9,357     1     5 


Balmnce  of  profit  and  loss  account,  31  st  Decemher,  1864 
Gross  profits  of  the  last  half-year,  after  paying  the  income- 
tax,  and  making  provision  for  all  had  and  doubtful  debts  ...       206,468  15    9 

£215,825  17     2 


BEST  OB  SURPLUS  PUND. 


2>r. 

Premnt  amount 


Cr. 


Amount  on  the  1st  January,  1865         

By  interest  on  ditto,  at  5  per  cent,  per  annum., 


£338,250    0    0 
£338,250     0     0 


£330,000    0    0 
8,250    0    0 

£338,250    0    0 


"  The  dividend  and  bonus  (without  deduction  of  income«tax,  which  is  paid  by 
the  bank)  will  be  payable  on  Monday,  the  24th  July." 

The  Chairman,  in  moving  the  usual  resolution,  said  :  Gentlemen,  the 
report  which  you  have  just  heard  read,  and  a  copy  of  which  you  have  in 
your  hands,  contains  a  true  and  accurate  statement  of  the  affairs  of  the 
bank.  I  do  not  think  that  I  can  add  anything  in  the  way  of  elucidation, 
and  I  shall  therefore  have  to  trouble  you  with  but  very  few  words.  This,  as 
yon  are  aware,  is  the  interim  half-year,  when  we  lay  before  you  a  state- 
ment of  the  results  of  the  first  half-year's  operations.  The  only  observa- 
tion I  have  to  make  is,  that  the  deposits  are  a  good  deal  in  advance  of 
what  they  were  at  this  time  last  year,  and  amount  at  this  time  to  nearly 
£11,000,000,  but  the  rate  of  discount  has  been  considerably  lower  during 
the  past  half-year  than  it  was  in  the  corresponding  period  of  last  year,  which 
to  a  certain  extent  has  militated  against  our  profits.  At  the  interim 
meeting  last  year  you  will  remember  that  we  paid  you  at  the  rate  of  14 
per  cent.,  whereas  now  we  propose  to  pay  you  at  the  rate  of  13  per  cent, 
on  the  entire  paid-up  capital,  carrying  forward  £22,605  to  be  accounted 
for  at  the  end  of  the  year.  (Hear,  hear.)  During  the  first  half  of  last 
year  the  average  value  of  money  was  6^  per  cent.,  which  is  very  high, 
and  now  it  is  somewhat  below  the  usual  average  rate  in  a  healthy  state  of 
buiuneM,  so  that  we  do  not  obtain  the  same  rate  of  profit  from  the  money 
we  lend  out.  The  deposits,  which  are  the  great  source  of  our  profits,  are, 
as  I  have  said,  looking  very  well,  and  we  have  every  reason  to  hope  that  they 
will  continue  to  do  so  to  the  end  of  the  year,  when,  notwithstanding  the 
low  value  of  money,  we  trust  we  sliall  be  able  to  offer  you  a  dividend 
that  you  wiU  consider  satisfactory.  (Hear,  hear.)  But  whatever  the  rate 
of  dividend  may  be,  you  may  depend  upon  it  that  it  will  bo  a  true  divi- 

voL.  XXV.  75 


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London  and  WesiminsU 


dend,  based  upon  the  net  profits  after  dedu< 
and  making  every  allowance  for  bad  and  dc 
charges.  (Hear,  hear.)  I  beg  to  move  the  i 
perhaps  some  gentleman  on  the  other  side  of 
hear.) 

Mr.  Hill,  a  proprietor,  responding  to  \ 
motion. 

A  Proprietor  suggested  that  it  would  be  < 
circulated  amougst  the  proprietors  a  few  day 
done  in  the  case  of  several  other  joint-stock  1 

Mr.  Home  concurred  in  this  suggestiou,  a< 
subject  under  the  notice  of  the  directors  on 

The  Chairman  remarkt^d  that  the  que^tioi 
and  as  frequently  considered  by  the  board,  b 
old  practice  which  had  worked  well,  unless 
likely  to  arise  from  it.  He  thought  it  very  dc 
the  shareholders  should  attend  and  meet  th 
them  such  explanations  as  might  be  consi< 
much  doubted  whether  if  they  were  to  circ 
containing  a  full  statement  of  their  affairs,  i 
now  attended  would  think  it  worth  while  to  b 
election  at  Oxford.  It  had  been  there  found 
so  satisfactory  or  certain  a  process  as  persoi 
to  introduce  politics,  but  he  still  thought  t 
the  proprietors  coming  to  the  office,  meeting 
them  as  co-proprietors  in  the  same  concern 
how  things  were  going  on.  Tlie  accounts  w( 
inspection  of  any  proprietor  who  pleased  t 
made  up,  which  was  generally  about  a  wee 
thought  that  was  sufficient.  Still,  if  any 
prietors  wished  it,  the  board  would  again  ta 
tion,  although,  for  his  own  part,  he  thougli 
adhere  to  a  practice  which  had  hitherto  answ 
Bank  of  England  did  not  publish  their  a^ 
ahouid  the  London  and  Westminster  ?  (H( 
not  like  some  of  those  ephemeral  monei 
springing  up  around  them,  and  in  respect  tc 
report  and  accounts  before  the  meeting  mi 
Another  point.  The  London  and  Westmins 
their  meetings  each  half-year,  that  was  tlie 
the  third  Wednesday  in  January.  Sometir 
fell  on  the  first  of  the  month,  there  was  onl 
the  closing  of  the  account  for  the  half-year  j 
only  for  the  making  the  accounts  up,  and  pe 
have  made  up  their  minds  as  to  the  div 
Under  all  the  circumstances,  and  looking  at 
then  present,  he  thought  it  would  be  better 
which  had  answered  so  well.  Let  them  ke 
minster  line  of  rails,  upon  which  they  had  i 
and  not  go  off  upon  some  other  line  of  whicl 
(Cheers.) 

A  Proprietor  observed  that  there  wa.s  a  c 
profits,  which  the  chairman,  as  he  understo 
rate  of  interest.      The  first  half  of  tho  ] 


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971 


)00,  in  the  next  half-year  they  were  £238,000 ;  whereas  in  the  half. 
mbraced  in  the  accounts  now  before  them  they  were  £160,000.  Thia 
^ery  large  falling  oflf,  and  he  wished  to  know  whether  it  fidl  arose 
he  rcdnoed  rate  of  interest,  or  from  the  partial  failure  of  any  other 
of  profit  ?  At  the  last  meeting  it  was  stated  that  £20,000  was  set 
or  the  improvement  of  the  building — ^where  was  there  any  statement 
real  value  of  the  buildings  belonging  to  the  establishment  ?  He  saw 
assets  bills  discounted,  loans,  and  other  securities,  £16,900,000; 
t  include  the  buildings  also  ?  He  wished  to  put  another  question 
be  money  paid  for  Jones  Loyd's  business.  He  understood  that 
)0  was  the  amount  to  be  i)aid  for  the  purchase ;  £80,000  he  believed 
d  at  first,  and  a  further  sum  afterwards  of  £27,000 ;  he  wished  to 
low  much  was  still  due  ? 

^airman — ^With  regard  to  the  net  profits,  the  rules  of  multiplica- 
^uction,  and  addition  would  easily  explain  the  diminution  as 
id  with  the  two  previous  half-years.  When  you  had  £18,000,000 
sits  to  lend  out  with  money  at  6^  per  cent.,  it  necessarily  yielded 
larger  return  tlian  when  the  rate  of  discount  was  only  4  per  cent, 
therefore,  upon  the  whole  the  present  was  a  very  favourable  account 
wed  with  that  of  last  year.     (Cheers.) 

prietor — ^But  you  reduce  the  interest  you  allow  to  the  depositors  in 
on. 

Ihairman — ^No  doubt  we  do,  but  we  have  a  great  deal  of  other 
to  deal  with  besides  the  deposits,  and  last  yeai*  we  had  a  larger 
)ctween  the  price  at  which  we  took  in  money  and  that  at  which 
it  out  than  we  have  this  year.  Again,  last  year  we  sustained  veiy 
s  indeed ;  this  time  we  have  have  had  to  write  off  something  which 
!  in  reduction  of  the  general  profit  account.  With  regard  to  the 
here,  the  hon.  proprietor  says  truly  that  £20,000  was  written  off 
>nnty  and  the  building  is  now,  I  am  happy  to  say,  nearly  completed, 
banking  house  will  be  one  of  the  handsomest  and  most  com* 
in  Lon(K)n.  It  will  contain  plenty  of  space  for  the  clerks  and 
breathing  room,  and  when  complete  it  will  have  cost  us  about 
The  entire  value  of  the  property,  including  what  we  have  pur- 
ad  written  off,  is  from  £105,000  to  £110,000,  and,  as  I  have  said, 
have  the  most  handsome  and  convenient  banking  house  in 
The  building  itself,  when  we  get  into  it,  will  have  cost  £65,000, 
ill  contain  double  the  area  of  the  present  bank.  The  premises 
belonging  to  Jones  Lloyd  stand  now  as  an  asset  of  £80,000 ;  and 
it  into  the  market  we  could  get  a  great  deal  more  for  it,  or  we 
it,  I  believe,  at  £6,000  a  year.  So  far  as  we  can  at  present  see, 
aot  require  to  occupy  those  premises  for  our  own  purposes,  and  I 
loubt  we  shall  be  able  to  let  them  profitably, 
dford  suggested  that  it  would  tend  to  increase  the  amount  deposited 
bank  if  they  relaxed  the  rule  which  allowed  interest  only  on  sums 
tnd  upwards. 

hairman — ^We  have  £19,600,000  in  deposits  and  other  moneys 
to  our  keeping  by  the  public,  and  I  do  not  think  we  ought  to  go 
r  way  to  make  it  larger.  (Cheers.)  Our  deposits  and  our  divi- 
1  compare  favourably  with  any  other  bank,  and  I  think  we  had 
ve  the  matter  of  the  interest  to  be  allowed  to  customers  where  it 
s,  with  the  directors.  (Cheers.) 
»hition  was  put  and  carried  unanimously, 
rairman,  in  declaring  the  dividend  and  bonus,  as  recommended  in 


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GooQle 


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London  and  Westmimter 


the  report,  stated  that  in  consequence  of  a  wish 
holders,  a  circular  would  be  issued  to  the  pr< 
the  next  meeting,  with  the  view  of  taking  tl 
would  prefer  the  dividends  to  be  paid,  as  they  ¥ 
or  signing  the  book,  or  by  dividend  warrants. 

A  Proprietor — Do  you  not  intend  to  pay  oiF  tl 
purchase  ? 

The  Chairman — Wlien  we  can  afford  it.     Th( 

the  house,  which  is  freehold,  stands  as  an  ass 

A  Proprietor — What  is  the  amount  of  bad  de 

The  Chairman — It  is  rather  above  the  avera^ 

I  do  not  think  it  necessary  to  say  more. 

On  the  motion  of  Mr.  Edenborough,  a  vote  o 
chairman  and  directors  for  tlieir  able  admin isti 
company  during  the  past  half-year. 

The  Cliaimian — On  behalf  of  my  brother  dii 
you  for  this  expression  of  your  good  opinion  < 
former  occasions,  I  take  it  as  an  indication  of 
worthy  of  your  confidence — (hear,  hear) — andt 
we  have  presented  to  you  are  honest  and  just, 
it  for  granted  as  to  the  bad  debts  that  all  is  w 
worth  while  to  re\dve  the  subject,  as  the  only  < 
details  on  the  subject  would  be  to  gratify  curie 
The  Proprietor  who  asked  the  question — I  <li 
upon  the  directors.  I  merely  asked  the  quesi 
any  reason  why  it  should  not  be  answered. 

The  Chairman — I  have  no  objection  to  answ 
about  £10,000  in  the  half-year,  and  in  the  last  h 
to  £13,500.  (Cheers  and  laughter.)  ThLn  grei 
I  am  glad  of  it.  (Hear,  and  a  laugh.)  I  suj 
was  nearer  £150,000.  We  only  maintain  a  re^ 
because  wo  think  it  better  to  wash  our  dirty  li 
not  very  dirty  after  all.  (Hear,  hear.)  I  hav 
perform  to  the  general  manager,  the  branch  ma 
of  the  bank.  (Hear.)  You  who  are  propri< 
bank,  and  are  in  constant  intercourse  with  \ 
admit  that  not  only  here  in  the  city,  but  whe 
business  is  conducted  in  a  manner  which  reflect! 
gentlemen.  (Hear.)  They  have  the  entire  co 
have  therefore  great  pleasure  in  moving  that  t 
be  given  to  Mr.  E wings  (the  general  manager). 
Shipp,  our  secretary,  who  is  an  excee<lingly 
other  officers  of  the  establishment,  for  their  ex( 
year.     (Hear,  hear.) 

Mr.  Es<Liile  seconded  the  motion,  which  was 
Mr.  E  wings,  who  was  much  cheered,  said- 
prietors  very  sincerely  for  this  renewid  of  their 
towards  my  colleagues  and  myself,  and  I  beg  p< 
prietors  for  the  very  kind  manner  in  which  th( 
I  have  to  acknowledge  on  the  part  of  myself  at 
periodicfd  recognitions  of  our  services.  (Cheei 
been,  as  you  are  aware,  gentlemen,  an  eventful 
merci.al  circles,  but  we  have  adhered  to  the  goo< 
and  all,"  in  carrying  out  tlie  business  of  this  in 


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973 


»ur  efforts  have  been  successful,  and  are  appreciated  by  you 
)  To  you,  Mr.  Chair uiao,  our  gratitude  is  especially  due  for 
[  tenuB  in  which  you  haye  been  pleased  to  call  the  attention 
iorg  to  <mr  services  in  proposing  this  vote  of  thanks.  (Cheers.) 
laoks  to  the  chainnan  concluded  the  proceedings. 


CONSOLIDATED  DISCOUNT  COMPANY. 

dinary  meeting  of  shareholders  was  held  on  the  19th  July, 
TaTem  ;  Mr.  T.  S.  Richardson  in  the  chair, 
ag  report  was  read  by  Mr.  Vokes  the  secretary : — 

ting  the  annexed  balance-sheet  the  directors  have  much 
ling  the  attention  of  the  shareholders  to  the  result  of  the  last 
eratioDB,  which  they  trust  will  be  considered  satisfactory, 
ats  for  the  six  months  ending  June  30,  are  £13,261.  2a.  lid., 
letiajg  current  expenses,  and  rebate  of  bills  not  yet  due,  there 
nofit  of  £6,620. 2s.  (yd.  Agreeably  with  the  wishes  expressed 
ting,  the  rebate  of  bills  not  due  on  31st  December,  amounting 
Od.,  ha»  been  introduced  into  the  present  statement,  and  with 
m  brought  down  leaves  £1,978.  4^.  Id.  to  the  debit  of  next 
Lfidering  the  limited  amount  of  capital  which  the  manager 
mi  and  the  directors  think  this  a  good  result ;  and  while  ex- 
confideuce  in  the  ultimate  success  of  the  company,  would 
olders  to  co-operate  with  them  in  influencing,  as  far  as  pos- 
ging  of  deposit  accounts." 

Salance'Sheetf  SOth  June,  1865. 


:,  3(^2  shares  at  £20  paid,  £7,240 ;  8,948  shares 
£89,480,  making  a  total  of  £96,720.  Deduct 
idered,  362  at  £20  paid,  £7,240 ;  400  at  £10 
-£ll,24<i,  making  a  total  of  £85,480 ;  ten  shares 

3  paid,  £80        

lociTii^,  deposits,  &c.  

iccoun  t,  gross  profit  during  the  half-year 


£85,560    0 

1,948,960  16 

13,261     2 


£2,047,781   19     3 


exchequer  bills,  consols,  and  cash  in  bankers' 

I,  advauccs,  &c 

siirs.  Sandeman,  Sanderson,  and  Co.,  for  purchase 
ie«»,  £19,500.     Deduct  50  per  cent,  discount  on 

irrendercd  by  them  as  agreed,  £5,620. 

cpenscs,    including    furniture    and   fittings  for 


£58,U30  14 
1,973,208  14 


13,880    0    0 
2,662     9  10 
£2,047,781   19     3 


Digitized  by  * 


974  Consolidated  Discount  C 

Proifit  and  Loss  account  for  the  six  months  i 

Balance  standing  from  debit  brought  forwarc 
December,  18(>4,  £1,259.  II5.  lOd. ;  rebate  of  inl 
discounted,  not  then  due,  £7,338.  14*.  9d. 

Current  expenses,  inchiding  salaries,  rent,  stationci 
ment,  directors'  and  auditors'  remuneration,  1 
charges  

Kebate  of  interest  on  bills  discounted,  carried  fo 
account 


Gross  profits  during  the  half-year,  including  re 

forward  per  contra  

Balance  carried  to  the  debit  of  profit  and  loss  new 


The  Chairman  in  moving  the  adoption  of 

different  task  that  day  to  fulfil  from  that  whicl 

In  their  first  year  of  business  they  had  met 

pai?8ed  through  a  period  of  almost  unexampl 

instead  of  announcing  a  dividend  he  had   to 

losses.    He  remembered  a  shareholder  asking  ( 

whether  we  could  continue  to  put  confidenc 

chairman),  however,  felt  confident  that  it  wou: 

prosperous  company  if    it    were    conducted 

and  the  times  were  more  propitious.     He  did 

their  prospects  by  that  adverse  and   exceptic 

they  had  made  good  profits,  and  although  e^ 

houses  of  high  standing  had  failed  right  anc 

half-year  up  to  the  30th  June  lost  a  single  shill 

He  did  not  say  the  company  would  never  lo 

great  caution,  and,  considering  what  small  fu 

bad  at  his  disposal,  it  was  really  surprising  tl 

to  realise  a  gross  profit  of  £13,261,  and  a  net 

He  regretted  to  say  that  the  losses  of  the  pre^ 

a  sum  to  their  debit  that  this  did  not  wipe  it  c 

management  he  believed  they  would  by  the 

debt  and  pay  a  good  dividend.     (Cheers.) 

must,  he  thouglit,  give  them  all  satisfaction,  a 

fident  in  the  success  of  the  company.     There 

which  he  wished. to  refer.     They  would  see  tJ 

chased  the  business  of  Messrs.  Sandeman,  Sand 

be  paid  so  much  in  money  and  so  much  in  sh 

in  the  market,  much  lower  than  their  actual  ' 

of  his  colleagues  he  proposed  to  Messrs.  Sa 

shares  at  50  per  cent,  discount,  the  eflfect  of  wh 

portion  of  the  purchase-money,  and  reduce  it 

And  as  the  directors  did  not  want  the  account 

were,  the  transaction  was  so  stated  in  the  ba] 

added  to  profit  and  loss,  which  it  might   fai 

matter  was  one  which  he  had  been  particulf 

holder  to  mention,  and  that  was  the  promoti 

matter  how  smaU,  which  would  enable  the  com] 


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c^:*!) eluded   by  moving  the  adoption   of  the  report  and 

(Cht;ers,) 
I  sc'CiJinluiI  the  motion.  The  negotiation  with  Messrs. 
Co.,  wliicL  harl  resulted  in  a  gain  to  their  capital  account 
1  ilue  priiaarily  and  entirely  to  tiieir  chairnian  (cheers), 
ther  direot(,5ra  concurred  in  carrying  out  that  fortunate 
Lliccrs.) 

Cleave  Haid  that  he  found  at  the  bottom  of  the  balance- 
^  *'  Exaiiiinfd  and  found  correct,  James  Cooper  and  W. 
>rs."  He  wished  to  know  what  those  gentlemen  "  found 
it  waa  the  aildition  ho  could  add  it  up  for  himself.     They 

£85,000,  aiid  their  assets  were  £1,973,000,  and  he  should 
>w,  with  the  view  of  winding  up  the  company,  whether 

::dl  ;;^<K>d. 

m  S.I  id  iho  auditors  had  examined  the  books  and  had  seen 
e  house— nothing  had  been  hidden  from  them, 
the  amiitf^r,  .=iaid  they  had  balanced  the  accounts  and  found 
ind  with  regard  to  other  accounts,  they  had  gone  through 
lad  satistit^il  themselves  that  what  they  had  certified  waa 
etl  tn  \k\     (Cheers.) 

aid  tlmt  was  no  answer  to  his  question.  The  chairman 
aadc  no  h:id  debts  ;  but  the  balance-sheet  8ho"wed  that  they 

nf  japer,  ^nd  he  wished  to  know  what  proportion  of  those 
ercd  as  bud  or  doubtful. 

m  ropUt^d  they  had  some  bills  held  over  from  1864,  on 
b  had  been  paid,  and  beyond  those  they  had  not,  on  the 
QT  dishoin  Hired  bills.     Was  tliat  satisfactory  ? 

Certainly  not.  His  question  was  whether,  out  of  the 
y  bad  nr  doubtful  debts  were  anticipated.  (Cries  of 
ha(l  it  on  creditable  authority  that  they  had  discounted  a 
;  bills  for  a  house  that  had  failed,  and  he  wished  to  know 
fact.  (Oh,  oh,  and  cheers.) 
jr :  The  hon.  gentleman  wishes  to  know  if  the  directors 

prophesy.     (Cheers.) 

The  directors  were  administrators  of  his  property,  and  he 
;han  he  had  a  right  to  ask.  They  stated  they  had  assets  to 
£1,973-000,  and  all  he  wanted  to  know  was  whether  they 
all  good. 

n  said  he  wns  anxious  to  answer  every  question  put  to  him, 
on,  Hhareholdor  said  his  questions  were  to  lead  to  winding- 
j^  it  behoved  him  to  be  careful.  He  would,  however,  do  hia 
he  hon.  gentleman.  Of  course  no  one  could  tell  with  posi- 
he  result  of  a  large  amount  of  bills  like  £1,900,000 ;  indeed 
certainty  that  there  would  be  some  loss,  larger  or  smaller, 
ght  be  J  but  when  he  saw  that  in  the  ia.st  six  months  they 
Biea  at  allj  ho  had  a  right  to  anticipate  the  next  six  months 
lly  succesafid,  because  their  basin  ess  had  been  conducted 
le  same  prudence  and  care.  There  was  every  reason  to  ex- 
>  billa  became  due  they  would  be  properly  met.  He  hoped 
B  satisfactory.     (Cheers.) 

■emarked  tliat  Mr.  Cleavers  questions  in  themselves  were 
but  they  a]>peared  to  be  dictated  by  a  bad  spirit  when  he 
g  he  put  tJieni  with  a  view  to  winding  up  the  company, 
ad  been  a  customer,  and  had  often  had  his  paper  returned, 
i  find  fault  with  that,  as  it  only  showed  that  the  manager 


I 


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exercised  discretion  and  ability  in  the  dischj 
what  had  been  said  about  winding  up  would  g 
single  shareholder  only.     (Cheers.) 

Mr.  Cleave  said  the  directors  were  all  pers( 
he  did  not  wish  to  cast  the  slightest  imputatioi 
did  their  duty  as  well  as  they  could  under  the 
at  the  matter  as  a  man  of  business. 

The  Chairman  was  anxious  to  tell  them 
know.  If  they  asked  whether  he  anticipated 
from  failures  wliich  had  happened  since  the  3( 
the  negative.  (Cheers.)  There  was  one  houa 
held  some  of  its  paper,  but  a  good  deal  of  tha 
by  the  indorsers,  and  on  what  other  papei 
anticipate  any  loss.     (Cheers.) 

Mr.  Cleave  rejoined  that  it  was  asserted  tl 
£45,000  of  acceptances  from  a  house  that  hi 
hear.) 

The  Chairman  did  not  exactly  know  what  b 
discounted  £70,000  worth  of  bills  for  one  hou 
bit  of  it  was  bankers'  paper.  (Cheers.)  If  ] 
Bell,  and  Co.,  it  was  true  they  had  been  large 
and  sent  them  a  great  dejd  of  "  beautiful  pap< 
some  acceptances  uow,  but  they  had  all  been 
did  not  anticipate  the  loss  of  a  shilling  on  thj 
directors  came  there  with  a  clean  balance-sl 
meeting  if  it  was  right  to  demand  names 
public.  No  shareholder  had  ever  been  refus 
at  the  office  for  it.     (Cheers.) 

Mr.  Cleave  rose  again,  upon  which  a  shai 
meeting,  in  indignant  tones,  moved  that  he  b 
(Laughter.) 

Mr.  Fildcr  remarked  that  the  capital  of  the 
£85,000,  and  on  that  they  had  made  in  the 
£6,620,  or  about  12  per  cent.,  and  he  tlioug 
satisfied. 

Mr.  Levy  did  not  think  the  company  couL 
had  refused  unimpeachable  bankers'  paper  s: 
capital.  He  did  not  expect  the  directors  to  ( 
impossible  to  carry  on  an  expensive  establisl 
was  a  large  shareholder.  (Cries  of  "  Sell  your 
Mr.  Pixton  was  astonished  that  "largo  sh? 
their  object  was  to  destroy  the  value  of  theii 
had  bought  his  shares  because  he  knew  they  L 
to  refuse  bankers'  paper  when  it  was  joined 
(Cheers). 

The  question  was  then  put  and  carried  by  i 
hands  being  held  up  against  it. 

Mr.  Pixton  said  that,  as  the  directors  had  i 
last  six  months,  it  would  be  wrong  to  make  a 
moved  (in  order  to  show  his  confidence  in  tl 
Messrs.  Constable  and  Denny,  who  liad  reti 
direction.  (Cheers.) 
The  motion  was  can-ied  unanimously,  amids 
On  the  motion  of  Mr.  King  the  auditors 
former  occasion,  with  twenty  guineas  each. 


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977 


TheOhairman  moved  a  vote  of  thanks  to  Mr.  Baker,  the  managing 
director  (cheers) — whose  caution,  disoretion,  sagacity,  and  courtesy,  he 
warmly  eulogised. 

Mr.  Sichell  seconded  the  motion.  Mr.  Baker  had  always  acted  towards 
him  with  the  greatest  courtesy  even  when  he  had  to  say  "  No  "  (laughter). 

Mr.  Baker  briefly  acknowledged  the  compliment.  He  said  the  policy  of 
the  directors  was  to  exercise  the  greatest  caution.  Undoubtedly  paper  had 
been  refused,  but  if  their  profits  were  thereby  smaller  they  were  safer. 
(Cheers.)  Good  business,  however,  was  steadily  increasing,  and  he  had  no 
doubt  they  would  be  able  to  show  a  better  result  next  year.     (Cheers.) 

Mr.  Charles  Wright,  in  movins  a  vote  of  thanks  to  the  chairman,  wiahed 
to  remark  that  as,  according  to  Mr.  Levy's  statement,  the  company  was 
short  of  capital,  they  had  an  easy  remedy.  The  shares  were  £20,  but  £10 
only  was  paid  up.  if,  then,  they  wanted  more  capital,  let  them  make  an 
ad(htionaf  call.  (Cheers  and  laughter.^  He  should  be  happy  to  respond  to 
a  call  of  that  kind,  as  the  results  of  tne  past  six  months  and  the  ability 
and  zeal  displayed  by  the  directors  entitled  them  to  expect  even  better 
things.     (Cheers.) 

Mr.  Levy,  amidst  laughter  and  cheers,  seconded  the  resolution,  which, 
being  carried  unanimously,  was  briefly  acknowledged,  and  the  meeting 
dispersed. 


LONDON  JOINT-STOCK  BANK. 

The  half-yearly  general  meeting  of  the  shareholders  of  this  company 
was  held  on  the  20th  July,  in  the  board  room  of  the  bank,  Princes-street, 
Mr.  Ceorge  Pollard  in  the  chair,  to  receive  the  report  of  the  directors  and 
declare  a  dividend. 

Mr.  Scrivener   (the  secretary)  having  read  the  notice  convening  .the 
meeting,  read  the  following  report  and  statement  of  accounts : — 

'*  The  accounts  which  the  directors  have  now  the  pleasure  of  submitting 
to  the  shareholders  show  that  the  net  profits  of  the  bank,  for  the  half- 
year  ending  on  the  dOth  ultimo,  amount  to  £123,125.  lbs.  'Sd.  This  result 
enables  the  directors  to  declare  a  dividend  at  the  rate  of  12^  per  centum 
per  annum,  and  a  bonus  of  8«.  3d.  per  share,  together  £l.  js.  per  share^ 
equivalent  to  18  per  cent,  per  annum  on  the  paid-up  capital  of  the  bank, 
now  amounting  to  £1,080,000,  and  to  carry  forward  a  balance  of 
£25,925. 16*.  3df.  for  division  at  the  end  of  the  year.  In  conformity  with 
the  resolution  passed  at  the  general  meeting  in  January  last,  the  Consols 
and  New  Three  per  Cents,  have  been  taken  at  90,  and  the  Exchequer  Bills 
at  par.  The  difference  between  these  rates  and  the  valuation  of  those 
stocks  on  the  31st  December  last  amounts  to  £7,075,  and  this  sum  has  been 
carried  to  the  credit  of  the  guarantee  fund,  which,  with  the  addition  of  six 
months'  interest,  according  to  the  provisions  of  the  deed  of  settlement, 
now  amounts  to  £309,615.  7s.  9d.  It  is  with  deep  r^^ret  that  the  directors  * 
have  to  announce  the  death  of  their  much-esteemed  colleague,  Mr.  Henry 
Christy.  To  fill  up  the  vacancy  thus  occasioned  at  the  l^ard  an  extra- 
ordinwy  general  meeting  will.be  convened ior  Thursday,  the  7th  Septomber 
next ;  and  any  qualified  shareholder  intending  to  become  a  candidate  for 
the  office  of  director  must  give  notice  in  writing  of  such  intention,  at  this 
office,  at  least  thirty  clear  days  previous  to  the  said  day  of  election.  The 
directors  have  to  report  that  owing  to  impaired  health  Mr.  Fleming  Hewett 
has  retired  from  the  management  of  the  bank  ;  and  tlie  directors  consider 
that  after  a  zealous  and  faithful  discharge  of  his  duties  in  various  depart. 


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London  JoinUSioek  Bank 


menU  during  a  period  of  twenty-six  years,  they  haye  not  appfeoatedtiioM 
■enrices  too  highly  in  awarding  him  a  retiring  allowance  of  £l/)00  per 
annum,  and  which  they  trust  will  meet  with  the  fuU  concurrence  of  the 
•hareholden.  The  dividend  and  bonuB,  free  from  income-tax,  jnll  be 
payable  on  and  after  Friday,  the  28th  instant." 


LIlBILITISfl  AKD  ASflBTB,   7RIDAT,  JVXE  SOTH,    1865« 

Dr. 

Capital  paid  UTh-Tiz.,  72,000  shares  at  £15  each £1,080,000   0  0 

Amount  due  hy  the  bank  on  current  accounts,  deposit 

receipts,  circular  notes,  and  acceptances  18,959»124  10   4 

Amount  of  "The  Guarantee  Fund,"  Dec.  31st,  1864, 

£298,069.  7s,  Id. ;    add  difference  in  the  Taluation  of 

Exchequer  Bills  and  Government  Btock  on  Dec.  31  st, 

1864,  and  the  present  ralaation,  £7,075  305,144   7   1 

Amount  carried  to  profit  and  loss  account 196,769   1  6 


£20,541,037  18  U 


Or. 

Exchequer  Bills  and  Government  Stock,  valued  in  accor- 
dance with  the  resolution  passed  by  the  general  meeting 
of  shareholders,  on  the  19tli  January,  1865,  viz. : — 
£300,000  Exchequer  Bills  at  par  £300.000,  £800,000 
Consols  and  New  Three  per  Cents.  90,  £720,000 

Cash       

Bills  discounted,  loans,  and  other  securities  

Building,  furniture,  &c.,  in  Princes^street,  £34,100  ;  ditto, 
ditto,  iu  Pall-mall,  6,000 


£1,020,000 
1,027,370 


18,453,567  16   4 
40,100    0   0 
£20,541,037  18  11 


Prqfit  and  Loss  Account  for  the  Ealf»year  ending  ZOth  June,  1865. 


Dr. 

Current  expenses,  proportion  of  huilding  expenses,  directors' 
remuneration,  had  dehts,  income-tax,  &c 

Amount  carried  to  profit  and  loss,  new  account,  being  rebate  of 
interest  on  bills  discounted,  not  yet  due  

Six  months'  interest  on  '*  The  Guarantee  Fund,"  at  3  per  cent, 
per  annum         ...        •••        ...        ...        ... 

Dividend  account  for  the  payment  of  half  a  yearns  dividend,  at 
the  rate  of  12 J  per  cent,  per  annum,  upon  £1,080,000,  amount 
of  paid-up  capital  upon  72,000  shares  

Ditto,  for  the  payment  of  a  bonus  of  85.  3d.  per  share 

Amount  carried  forward  to  profit  and  loss,  new  account 


Cr. 


£37,787 

31,385 

4,471 


4  0 
1  7 
0   8 


67,500  0 
29,700  0 
25,925  15 


balance  bconght  down 


£196,769    1  J 
£196,769    1    6 


Dr. 
Present  amoant 


QVJJLMSTLt  tUKD  ACOOUST. 


...    £309,615    7  J 
£309,615    7    9 


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Alliance  Bank 


979 


Cr, 

Lmonnt  on  the  Slst  of  December,  1864 

iiterest  on  ditto  to  30th  Jane,  1865,  at  S  per  cent,  per  annum  ... 
difference  in  the  yalnation  of  Ezchcqoer  Bills  and  Goremment 
Stock  as  above     


£298,069 
4.471 


7,075    0    0 
£309,615     7     9 


The  Chainnan  stated  that  by  the  authority  of  the  board  he  had  to 
edare  a  diyidend  for  the  half-year  ending  the  30th  June  at  the  rate  oi 
12. 10s,  per  centum  per  annum  on  £1,080,000,  the  amount  of  capital  paid 
p,  and  a  bonus  of  S^.  3d,  per  share  out  of  the  profits  of  the  half-year.  He 
ben  moved  that  the  report  be  received  and  printed  for  the  use  of  tho 
bareholders. 

Mr.  P.  W.  Flower  (the  deputy  chairman)  seconded  the  motion. 

A  Proprietor:,  referring  to  the  item,  '*  Add  difference  in  the  valuation  of 
icheqner  bills  and  government  stock  on  the  3l8t  December,  1864,  and 
he  present  valuation/'  said  he  had  been  under  the  impression  that  there 
rotud  be  no  more  uncertainty  with  respect  to  the  reserve  account.  The 
»rioe  having  been  fixed  he  was  in  hopes  that  the  amount  of  the  guarantee 
and  would  be  settled,  but  there  was  a  difference  in  the  valuation,  and 
he  old  system  was  repeated.  He  wished  to  know  if  that  system  was  to 
le  continued  ? 

The  Chairman  replied  that  the  present  was  the  winding-up  of  the  old 
ystem,  and  that  the  item  referred  to  now  appeared  for  the  last  time. 

A  Proprietor  inquired  if  an  amendment  on  the  amount  of  the  dividend 
ras  not  open  to  the  meeting.  (Cries  of  "  No,  no.")  He  did  not  think  it 
ras  usual  for  the  chairman  to  declare  the  dividend  in  that  manner. 

Mr.  Flower  replied  that  at  every  meeting  that  had  been  held  the  divi- 
tend  had  been  declared  in  that  manner,  in  conformity  with  the  provisions 
i  the  deed  of  settlement. 

A  Proprietor  remarked  that  the  profits  had  not  increased  in  proportion 
0  the  additional  capital,  and  wished  to  know  if  that  was  owing  to  any 
leavy  losses. 

The  Chairman  observed  that  the  accounts  were  made  up  in  the  usual 
orm,  and  the  statements  contained  in  the  report  were  very  plain.  It  was 
luite  evident  from  the  result  that  the  course  which  had  been  pursued  was 
^sfactory.  Seeing  that  the  value  of  money  had  become  lower,  he  con- 
idered  the  transaction  of  the  affairs  of  the  bimk  had  been  very  well  carried 
hrough. 

One  of  the  Directors,  in  reply  to  a  question  relative  to  the  increase  of 
^ital,  said  that  the  proprietors  had  sanctioned  the  issue  of  12,000  new 
ihares,  and  a  reserve  of  8,000  ;  but  it  was  understood  that  nothing  was  to 
)o  done  by  the  directors  with  respect  to  the  8,000  shares,  without  the 
tanction  of  the  shareholders.  As  nothing  on  the  subject  was  stated  in  the 
'oport,  it  was  qidte  clear  that  no  steps  had  been  taken  relative  to  those 
ihares. 

The  motion  for  the  adoption  of  the  report  was  then  agreed  to,  and  the 
arooeedings  terminated  with  the  usual  vote  of  thanks  to  the  chairman  and 
iirectora,  

ALLIANCE   BANK. 

rHB  sixth  ordinary  general  meeting  of  shareholders  was  held  at  the 
London  Tavern,  on  the  21st  July;  Mr.  Stenhouse  in  the  chair.  The 
following  report  was  taken  as  read  :— 


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980  Alliame  Bank. 

"  The  directors  have  to  report  that  the  net  profits  of  the  bank,  after 
deducting  interest  on  current  and  deposit  accounts,  current  expenses,  pro- 
vision  for  bad  debts,  and  rebate  on  bills  discounted  but  not  yet  due, 
amount  to  £27,663.  17s,  6d.y  which  they  propose  to  dispose  of  as  follows, 
viz.: — £22^68.  25.,  in  payment  of  a  dividend;  £1,000  in  reducfcicMiof 
preliminary  expenses ;  £4,485.  15a.  M.  to  profit  and  loss  aooountof  tiie 
current  haU-year.  The  above  sum  of  £22,168.  2s.,  oiables  the  directois 
to  recommend  a  dividend  of  12s,  6d.  per  share  on  the  30,000  shsies  iqx» 
which  £25  per  share  is  paid,  and  7s,  per  share  on  the  9,766  shares  iipo& 
which  £20  per  share  is  paid,  being  at  the  rate  of  £5  per  cent,  per  annum. 
It  is  satisfactory  to  the  directors  to  be  able  to  state  that  the  condition  of 
the  bank  has  materislly  improved  since  the  last  half-yearly  meeting. 
With  respect  to  the  account  specially  referred  to  in  their  last  report,  the 
directors  do  not  feel  themselves  in  a  position  to  determine  the  amooni 
which  will  be  required  from  the  reserve  fimd  to  meet  the  loss  that  m&j 
arise  thereon,  as  further  time  must  elapse  before  the  value  of  ihe 
securities  and  estates  affecting  it  can  be  ascertained.  In  acoordanoe  wi^ 
the  wish  expressed  at  the  last  meeting,  the  directors  have  incre^ 
their  board  by  the  election,  subject  to  confirmation  by  the  shareholden, 
of  Christopher  Atkinson,  Esq.,  of  Liverpool,  and  Matthew  Hnttos 
Chaytor,  Esq.,  of  London.  The  directors  who  retire  bjr  rotatioB, 
in  accordance  with  the  provisions  of  the  articles  of  association,  are 
John  Paterson«  ^Esq.,  James  Nugent  Daniell,  Esq.,  John  TornuKC, 
Esq.,  Alfred  Castellain,  Esq.,  and,  being  eligible,  they  offer  themsdva 
for  re-election.  The  auditors,  Messrs.  G.  H.  Jay  and  H.  W.  Banner, 
retire  at  this  meeting.  Mr.  Banner  offers  himself  for  re-election,  nd 
Messrs.  Quilter,  Ball,  and  Co.,  of  whose  firm  Mr.  G.  H.Jay  was  apartoer, 
offer  themselves  for  election  in  his  place.'' 

Balance-sheet,  30M  June^  1865. 
.  Dr, 
Capital   paid   up,    vi2.:-^£25  per  share  on    30,000   shares, 

£750,000 ;  less  calls  in  arrear,  £810  ...  ...     £749,190   0  0 

£20  per  share  on  9,766  shares,  1864  issue,  £195,320 ;  less  calls 
in  arrear,  £9,920  ...  ...  ...  ...        185.400   0  0 

£934,590   0  0 
Amount  due  to  customers  on   current  and  deposit  accounts, 
circular    notes,    &c.,    £1,753,203.   Os.    Bd,;    acceptances, 
£898,096.  8*.  lid.         ...  ...  ...  ...     5,651,299    9   7 

Reserve  fund   ...  ...  ...  ...  ...       214,772   8  T 

Rebate  account  ...  ...  ...  ...  6,020  14  9 

Profit  and  loss  accounti  being  net  profit  for  the  half-year  ending 
30th  June,  1865  ...  ...  ...  ...         27,053  17   6 

£3,834,336    9  U 


Cash  in  hand  at  Bank  of  England,  and  at  call        ...               ...  £445,938  lt>  s 

Investments  in  Consols  and  India  Stocks            ...               ..•  79,718  15  0 

Bills  of  exchange,  loans  to  customers,  &c.          ...                ...  3,252,47110  1 

Buildings,  furniture,  bank  fittings,  &c.,  in  London,  South- 

wark,  Liverpool,  Manchester,  and  Birkenhead                  ...  47,547    3  6 

Prelinunary  expenses       ...               ...               ...               ...  8,660   4  9 

£3,834,336 

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PBOFIT  AXVD  LOSS  AOOOUJIT. 


Dr. 
Cnirent  expenses,    including   salaries,    stationery,     directors* 
remaneration,  provision  for  bad  debts,  &c.  ...  ...    £32,29114 

Interest  on  ciummt  and  dfiivMril  HAAnnnta  9K  Afifi   1  o 


Interest  on  current  and  deposit  acconnts 

Bebate  on  bills  discounted,  not  yet  due 

Diridend  of  12#.  6<l.  per  sbareon  30,000  shares,  £18,750 ;  ditto 

75.  per  share  on  9,766  shares,  £3,418.  2s. 
Amount  written  off  preliminary  expenses 
Balance  carried  to  profit  and  loss  new  account         ... 


Cr. 

Grross  profits  for  half-year  ending  30th  June,  1865 


25,688  18 
6,020  14 

22,168  2 
1,000  0 


1 
7 
3 

a 

0 


4,485  15  6 
£91,655  4  5 


£91,655  4  5- 


UESERVED  FUKD. 


Dr. 
Balance  carried  down 

Cr. 
Balance,  31st  December,  1864 
Premium  on  shares  since  received 

Balance  brought  down 


£214,772  8  7 


£208,257  8  7 
6,515  0  0 

£214,772  8  7 


The  Chairman,  in  proposing  the  adoption  of  the  report,  said  that  the  ac- 
^VLuta  spoke  for  themselyes,  and  presented  such  a  detailed  statement  of  the 
affairs  of  the  company,  that  he  did  not  see  he  could  add  anything  to  what 
tiad  been  laid  before  the  shareholders  in  the  report.  He  should  be  happy„ 
iiowever,  to  answer  to  the  best  of  his  ability,  any  questions  that  might  be 
put  to  him.  The  directors  had  elected  Mr.  Atkmson  and  Mr.  Chaytor  to 
leata  at  the  board.  The  name  of  Mr.  Atkinnon  would  be  submitted  to 
^he  shareholders  that  day  for  confirmation,  but  in  regard  to  Mr.  Chaytor, 
»  ho  had  not  held  his  shares  for  half  a  year,  it  would  be  necessary  to 
^U  a  formal  meeting  for  a  future  day  in  order  to  confirm  his  election. 
it  the  last  meeting  the  directors  were  not  in  a  position  to  declare  a 
iividend,  but  on  this  occasion,  although  for  the  last  six  mouths  there  waa 
1  severe  pressure  on  the  commercial  world,  they  were  able  to  give  a 
Iividend.  It  was  not  so  large  a  one  as  they  desired  to  give,  but  it  was  a 
itep  in  the  right  direction,  and  he  hoped  it  would  so  far  be  deemed 
iatisfactory. 

Mr.  Atkinson  seconded  the  motion. 

Mr.  Major  said  that  the  report  was  a  most  laconic  one,  and  the  observa- 
tionR  of  the  chairman  were  still  more  so.  He  wished  to  know  what  reason 
the  directors  had  for  stating  in  the  report  that  the  "condition  of  the 
bank  had  materially  improved  since  the  last  half-yearly  meeting  ?" 

The  Chairman  said  that  last  year  there  was  no  dividend;  this  year 
there  was ;  their  bad  debts  were  smaller,  and  the  bank  was  altogether  in 
a  more  satisfactory  position. 

Mr.  Major  said  that  at  the  last  meeting  it  was  announced  that  there 
v^ere  bad  debts  amounting  to  £160,000,  but  Mr.  Quilter  estimated  at  that 
time  that  the  loss  would  be  covered  by  £61,000,  and  that  probably  there 
would  not  be  a  loss  of  sixpence.    He  wished  to  know  if  that  was  the  fact. 


Digiti 


ized  by  Google 


982  Alliance  Bank. 

and  if  bo  he  thought  it  ought  to  have  been  stated  to  the  Bhaieholden. 
(Hear,  hear.)  On  the  contrary,  the  directors  in  their  report  made  a 
Becond  allusion  to  that  matter,  and  the  result  of  keeping  1^  bugbear 
before  the  public  was  that  the  shares  fell  £2.     (Hear,  hear.) 

The  Chairman  said  that  it  was  difficult  to  get  the  old  accounts  speedily 
dosed,  as  the  bulk  of  the  securities  to  which  the  paragraph  alluded  to 
were  abroad.  There  was  no  reason  for  altering  the  estimate  which  had 
been  made  at  the  last  meeting,  and  he  could  assure  them  that  by  the 
next  meeting  this  matter  would  be  brought  to  a  point,  and  the  amoirnl, 
whatever  it  was.  Would  be  written  oflf. 

Mr.  Major  asked  if  any  money  had  been  received  since  the  last  meeting. 

The  Chairman  said  that  £4,000  had  been  received  out  of  the  £160,000, 
but  they  possessed  for  the  remainder  the  security  of  a  large  property  in 
Australia,  and  the  dividend  from  two  valuable  estatea  near  London. 

Mr.  Major  asked  how  much  of  the  sum  of  £32,290,  set  down  in  the 
accounts  for  current  expenses,  directors'  remuneration  and  provision  for 
bad  debts,  was  for  bad  debts. 

The  Chairman  said  that  £13,750  was  put  aside  for  bad  debts,  but  toew 
bad  debts  arose  from  business  entered  into  previous  to  the  last  half -yctf . 
(Hear,  hear.)  .  . 

Mr.  Major  wished  to  know  from  IVIr.  Quilter  whether  it  was  his  opum 
now  that  there  would  not  be  a  loss  of  6(2.  on  the  £160,000. 

The  Chairman  said  he  believed  Mr.  Quilter  was  not  present.  But  tw 
property  had  been  Carefully  estimated,  and  he  did  not  think  there  was  any 
reason  for  altering  the  opinion  which  had  been  given. 

Mr.  Major— Then  why  put  it  into  the  report  ?  It  acted  as  abugbear,and 
people  said  there  must  be  some  speculators  behind  the  scenes. 

The  Chairman  said  that  it  would  not  appear  again  in  the  report.  Bje 
amount  would  be  written  off.  One  of  the  securities  was  that  of  a  Spaimh 
railway.  If  completed  it  would  be  a  valuable  security,  but  not  otherwi*. 
It  was  on  that  security  that  they  got  the  £4,000.  ^ 

Mr.  Patterson,  a  director,  for  whom  there  were  loud  calls,  said  thai  Hr 
Quilter  had  never  stated  there  would  not  be  a  loss  of  6d.  on  the  secoiiti^ 
for  the  £160,000.  He  said  that  the  securities  might  probably  be  realised 
without  the  loss  of  a  shilling  to  the  company,  but  that  £60,000  woxdd  at 
all  events  cover  the  loss,  ^Hear,  hear.)  He  (Mr.  Patterson)  stated  thai 
he  believed  the  securities  m  hand  were  more  than  double  the  amount  ^ 
the  debt,  and  he  repeated  that  statement  now.  (Hear,  hear.)  The  delii 
was  £160,000,  for  which  they  held  the  security  of  property  in  Austraha, 
the  prospective  dividend  from  valuable  estates  near  London,  and  frooi  a 
railway  in  Spain.  They  had  taken  every  step  to  get  a  correct  estimate 
<rf  the  value  of  these  securities.  They  had  no  reason  to  disparage  tw 
value  of  the  Australian  security.  There  was  no  reason  to  believe  thattw 
securities  of  the  London  estate  would  be  depreciated  at  all.  With  r^ 
gaid  to  the  value  of  the  security  in  Spain,  on  which  they  had  realisea 
£4,000,  he  was  not  disposed  individually  to  put  a  high  value  upon  rtj 
With  regard  to  one  of  the  properties  in  London,  they  hid  been  pronusw 
a  dividend  of  lOs.  in  the  poimd.  Diligent  inqidry  had  been  made  in  Aus- 
tralia, but  it  took  six  months  to  send  out  and  receive  information  &om  thju 
quarter ;  their  solicitor  had  been  twice  in  Spain  to  look  after  the  seconjy 
tnere,  and  in  six  months'  time  the  amount  of  loss,  whatever  it  waa»  ^  ^ 
be  written  off.  He  did  not  think  he  could  say  any  more,  and  he  ixts^ 
that  what  he  had  said  would  be  deemed  satisfactory.     (Hear,  ^*'^^')    « 

The  Chairman,  in  replv  to  a  shareholder,  said  that  there  was  a  ^ 
profit  cm  the  four  bran^es  of  the  bank  with  the  exception  of  that  or 


Digiti 


zedbyLnOOgle 


Alliance  Bank. 


983 


hi  sill  \nv\ 
n  Cstato, 

for  tLo  t 


ii^»t  paid  its  expenses.     The  amount  of  the  debt 
(  u  which  10s.  in  the  pound  had  been  promised, 

'ioption  of  the  report  was  then  put,  and  carried 


an  ilicn  Ut  tlared  a  dividend  of  12.<?.  (jd,  per  share  on  the 
jk  KJ'lh  h;i  1  been  paid,  and  75.  per  share  on  the  shares  on 
r  rhjiri'  b;i'{  been  paid,  being  at  the  rate  of  5  per  cent,  per 
iiiLODie-tiiX,  The  Chairmaji  also  proposed  the  confirmation 
rif  !\lr.  W,l  iDaon  as  a  member  of  the  Liverpool  board.  Mr. 
it-t-n  lU  >  iMra  in  business,  he  was  a  man  of  great  experience, 
ed  ^i^ul'l   be  a  valuable  accession  to  the  board.     (Hear, 

n  fiL'CfiTifkil  the  motion,  which  was  carried. 

>ii,  rjne of  l!ii'  outgoing  directors,  wa.^  imanimously  re-elected. 

?  (*i  iVlr.  I^udell  being  put  for  re-election, 

*  ^riid  lit.'  \,  i^hed  to  say  a  few  words  with  regard  to  the  re- 

Diiiiirll.  The  shareholders  were  aware  that  Mr.  Thompson, 
cr  tif  iLl  1  hDfc,  had  gone  to  manage  a  bank  in  India,  of  which 
s  tlio  cltairman,  and  it  was  reported  that  Mr.  Thompson 
rmi  t>f  il;ij  way  lest  he  should  make  disclosures  which 
ilatrtMr  ti     some  of  tlie   directors.      He   imderstood   that 

iiiul  rc'L'ivcd  a  larger  salary  tlian  he  could  have  expected, 
lio  ijjij^Ut  be  the  creature  of  the  directors.  (Oh!  oh!)  He 
isiition,  but  stated  rumours   which  had  been  circulated. 

said  that  the  accusation  wns  absolutely  and  totally  incompre- 
1,  aiid  was  entirely  false.  (Hear.)  It  was  idle  to  suppose  that 
r  fifteen  L^Dtlemen  who  acted  on  that  board  would  have 
my  colhis:nn  of  the  kind  indicated  with  their  manager. 
AVith  n  ^Tird  to  the  appointment  of  Mr.  Thompson,  who  was 
lionrpiirab!*^  and  an  upright  man,  to  the  Bank  of  Hindustan, 
biiiiself  aiid  by  other  of  the  directors  that  in  his  anxiety 
i  interrHiH  of  this  bank  he  had  not  taken  sufficient  pro- 
r.  adv*:r^^t^  uivl  difficult  times,  and  that,  consequently,  the  confi- 
larthi'ldi  IS  was  temporarily,  if  not  considerably  taken  from 
)mpson  h.'jl  at  the  same  time  written  engagements  with  the 
position  wns  therefore  a  difficult  one  to  deal  with.  Mr. 
[  that  ln'  h  ^d  an  opportunity  of  going  to  Hindustan  if  the 
[jbject^  aud  under  these  circumstances  he  went  out  to  India, 
Managing  a  bank  with  great  discretion.  But  to  think  that 
a  EcnpciT-t  it  was  quite  absurd, 
sa  said  that  he  felt  quite  satisfied  with  the  explanations  of 

\  solicitor  to  the  company,  bore  testimony  to  the  character 

son,  than  whom  there  could  not  be  a  more  honourable  or 

d    inau.       Ho  had  the  means  of  rebutting  ail  the  vague 

landers  which  had  been  circulated  against  Mr.  Thompson. 

t  was  far  too  honourable  to  be  made  the  tool  or  scapegoat  of 

eax,  hear*) 

was  then  re-elected  a  director,  as  were  the  other  directors, 

md  Mr.  Castellain. 

100  for  the  half-year  was  voted  to  each  of  the  auditors ; 

3B  ro- elected  auditor  for  Liverpool;  and  on  the  motion  of 

im  of  £2,6013  was  voted  as  a  remuneration  to  the  directors 


Digitized  by ' 


984  Bank  qf  London. 

The  Chairman  proposed  a  vote  of  thanks  to  the  manager,  Mr.  Miller, 
and  the  other  officers  of  the  bank  and  its  brandies,  for  their  serrioes  doiisg 
the  half-year.  (Hear,  hear.)  H6  had  no  fear  as  to  the  futoze  oC  the 
Alliance  Bank.  (Hear,  hear.)  They  had  a  million  of  paid-iq^  capital, 
and  if  they  only  minded  their  own  business  and  paid  |  less  atteatum 
to  outside  mmonrs,  he  had  no  doubt  they  would  be  able  to  ^ow  good 
results.    (Cheers.) 

The  motion  having  been  unanimously  adopted, 

Mr.  Miller,  on  behicdf  of  himself  and  the  other  officers  of  the  establish- 
ment, returned  thanks.  It  was  always  gratifying  to  persons  in  their 
position  to  receive  the  approbation  of  the  shareholdera,  but  on  this 
occasion  it  was  particularly  so,  as  during  the  past  six  months  tiieir  duties 
were  neither  easy  nor  pleasant.  They  had  devoted  their  utmost  eneigieB 
to  promote  the  interests  of  the  bank,  and  the  results,  he  thou^t,  were  as 
favourable  as,  under  the  circumstances,  could  be  expected.  They  woqM 
continue  to  devote  the  same  energies  to  the  bank,  and  he  hoped  that  year 
by  jrear  its  prosperily  would  increase.    (Hear.) 

On  the  motion  of  Mr.  Major,  a  vote  of  thanks  was  pasaed  to  the  chair* 
man  and  directors,  which  terminated  the  proceedings. 


BANK  OF  LONDON. 

Tbb  nineteenth  ordinary  general  meeting  of  the  shareholders  of  this  hank 
was  held  on  the  21st  July,  at  the  London  Tavern,  Biahopogate  Street,  for 
the  purpose  of  receiving  the  report  of  the  directors,  and  for  tbededaratiofi 
of  a  dividend ;  Sir  John  Shelley  presided. 

Mr.  C.  J.  H.  Allen,  the  secretary,  having  read  the  advertisement  conyenii^ 
the  meeting,  read  the  following  report : — 

^'  The  statement  of  accounts,  which  the  directors  now  submit,  shows  thst 
the  balance  of  profit  at  the  termination  of  the  past  half-year  amomits  to 
£67,547.  lis.  4d.  This  result,  after  providing  for  current  expenses,  bada&<i 
doubtful  debts,  and  rebate  of  interest  on  bills  discounted  not  yet  due, 
enables  the  directors  to  declare  a  dividend  at  the  usual  rate  of  £10  per 
cent,  per  annum,  and  a  bonus  of  £2. 10«.  per  share,  amounting  together  ti 
20  per  cent,  per  annum,  both  free  of  income-tax.  The  balance^  yit, 
£2,324. 6a.  2d.,  is  transferred  to  tlie  reserve  fund,  which,  by  such  ad<&tioD, 
is  increased  to  £302,324.  53.  2d.  The  directors  retiring  upon  the  prewat 
occasion  are,  John  Edmund  Anderdon,  Esq.,  Henry  Aste,  Esq.,  tf^ 
Thomas  Dakin,  Esq.,  who,  being  duly  qualified,  offer  themselves  for  re- 
election. The  dividend  and  bonus  wiU  be  payable  on  and  after  Wednesday, 
July  26." 

Liabilities  and  Assets ^  Jane  30,  1865. 
Dr. 
Capital  paid  np,  £397,550 ;  amount  received  on  balance  of  new 

shares,  £2.450      £400,000   0   0 

Beserve  fhnd,  £296,570 ;  reserve  premiums  on  balance  on  new 

shares,  £3,430 300,000    0  0 

Amount  due  by   the    bank   on    current,  deposit,  and  other 

accounts       4,60€,164  11    3 

Profit  and  loss  account,  after  payment  of  £30,499.  18j.  8d.  to 

customers  for  interest  on  their  b.ilances, 66»547  11    ^ 

£5.272,712    2    7 


Digiti 


ized  by  Google 


Bank  of  London. 


935 


Cr. 

nTestments,  via. — 

11  Government  securities,  India  bonds,  &c ^ 

)itto  in  freehold  premises  in  Threadneedle  Street,  let  at  a 
rental  yielding  4}  percent.,  £40.000 ;  by  freehold  premises 
in  the  occupation  of  the  bank,  £35,000 

Sills  discounted,  loans,  &c....  

^ash  in  hand,  and  at  call        


£227,666  11    S 


75,000    0    0 

4,207,524  11  11 

762,620  19    6 

£5,272,712    8    7 


PROFIT  ASD  LOSS  ACCOTTMr  FOB  THE  BAUT-TBAB  ENSZHO  JUNB  80,  1865. 

Dr. 
lalf  a  year's  current  expenses  at  head  office  and  Charing  Cross 

branch,  bad  and  doubtful  debts,  directors'  remuneration,  &c. 
ilebate  of  interest  on  bills  discounted  not  yet  due,  carried  to 

profit  and  loss  new  account 

!>iyidend  for  the  half-year  at  the  rate  of  £10  per  cent,  per 

annum      ..« 

Bonus  at  the  rate  of  10  per  cent,  per  annum,  or  £2.  10s,  per 

Bnare  •«»    ••■       ••■       •••       •••       •••       *••        •••       •(•       »»» 

Balance  carried  to  reserve  fund       


Cr. 
Balance  of  profit  brought  from  last  half-year,  £2,505.  4*.  Sd. ; 
balancefor  current  half-year  £64,042,  6*.  8d 


£19,990    1    8 

4,233    4  11 

20,000    0    0 

20,000    0    0 
2,324    5    2 

£66.547  11     4 


£66,547  11    4 
£66,547  11     4 


BESEBTB  FUND  ACCOUNT* 

Dr. 
To  balance       

Cr. 
Amount  from  last  half-year  £296,570 ;  premiums  on  balance 

of  new  shares,  £S,430 

Addition  brought  down 


£302,324  5  2 


£300,000  0  0 
2,324  6  2 

£302,324  5  2 


The  Chairman — Gentlemen,  it  now  becomes  my  duty  to  move  that  the 
report  be  received  and  adopted ;  and  in  doing  so  you  will  allow  me  to  say 
that  it  gives  me  much  plea^iure  again  to  meet  the  shareholders  at  this  half- 
y^^rly  meeting.  The  accounts  require,  I  think,  but  little  explanation 
irom  me,  as  they  speak  for  themselves.  At  our  last  meeting  I  stated  that 
the  half-year  we  had  then  gone  through  must  be  considered  entirely  ex- 
ceptional, as  well  as  the  haJf-year  previous.  At  that  time  the  rate  of  money 
^as  very  high,  and  trade  and  business  were  excessively  buoyant.  Now, 
the  rate  of  discoimt  is  very  low,  and  things  are  not  in  that  flourishing  and 
buoyant  state  we  could  wish.  But  I  cannot  help  thinking  that  we  have 
now  got  through  the  wet  day,  and  may  look  forward  to  a  brighter  time. 
Notwithstanding  the  difficulties  of  the  period  and  the  numerous  failures 
^hich  have  occurred  in  commercial  circles,  we  are  happy  to  be  able  to 
VOL.  XXV,  76 


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zed  by  Google 


dBB  Bank  qf  London. 

declare  the  same  rate  of  dividend  as  before.  (Hear,  hear.)  This  ihowa, 
I  think^  that  the  businesB  of  the  bank  has  been  placed  upon  a  wnsd 
foundation ;  and  although  we,  like  other  banks,  may  not  hare  made  rock 
large  profits  as  we  did  in  the  previons  year,  yet,  looking  at  th»  sUte 
of  monetary  afGetirs  in  general,  it  is  satisfsMstory  to  know  thab  the  buinetf 
has  been  so  oondncted  fiiat,  notwithstanding  the  altered  state  of  a&in, 
we  hava  gone  steadily  on,  and  are  able  to  declare  the  same  amount  of 
dividend.  To  prove  the  satisfactory  manner  in  which  oar  hnsinesB  pio- 
flreases,  I  have  here  some  figures  to  which  I  would  call  your  attentioiL  I 
ind  that  in  the  year  previous  to  this  we  appropriated  in  dividend  and 
reserve,  £82,000.  In  this  year  we  have  paid  in  the  same  way,  £102^. 
In  1861  we  paid  £15,000  in  dividends,  or  equal  to  6  per  cent.,  on  a  c^Rttl 
of  £300,000.  We  now  pay  £80,000,  which  is  equal  to  20  per  cent.,  upon  a 
capital  of  £400,000.  We  have,  as  you  know,  now  made  our  capital  up  to 
£400,000,  and  the  reserve  to  £300,000.  It  may  be  well  also  to  refer  to  die 
profits  of  each  year,  as  showing  how  we  go  steadily  on.  Deductbg  thi 
profits  brought  on  each  occasion  from  previous  yean,  the  figuzes  stand 
thus  .—For  the  year  ending  30th  June,  1860,  the  profits  were  £5S^,aBd 
the  amount  paid  in  dividend  was  £15,000 ;  far  the  year  ending  Jime  90, 
1861,  the  profit  made  was  £60,603,  and  the  amount  paid  in  difidnd 
£15,000 ;  in  1862  the  profits  were  £70,907,  and  the  amount  paid  in  dm- 
dend  £21,000;  in  1863,. the  profits  were  £88,297,  and  the  amoontpsid 
in  dividend  £30,000;  in  1864,  the  profits  were  £131^83,  and  we  paid 
in  dividends  £52,500;  and  you  will  see,  notwithstanding  the  m- 
propitious  state  of  commercial  and  monetary  affairs,  that  for  the  year 
ending  30th  June,  1865,  we  have  made  a  profit  of  £133,776|  and  vt 
pay  in  dividends  £70,000.  (Cheers.)  This  statement  shows  the  pro- 
gressive character  of  our  business,  and  it  must  be,  I  think,  Batisfact(H7 
to  every  man  of  business  connected  with  the  bank  that  the  increase  hi 
been  thus  gradual  and  progressive,  inasmuch  as  it  affords  the  best  poasible 
proof  of  the  soundness  of  the  basis  upon  which  the  institution  is  founded. 
Having  gone  through  so  satisfactorUy  the  difficult  year  which  has  fo^ 
passed,  we  have,  I  think,  a  right  to  oondade  that  we  shall  continue  to 
progress  in  the  same  gratifying  manner,  and  that  we  shall  oontmne  to 
nave,  what  I  have  before  more  than  once  ventured  to  prophesy  in  thtf 
room,  a  business  increasing  gradually  but  steadily,  which  in  its  reanit 
must  establish  the  Bank  of  London  as  one  of  the  great  financial  isttitotioss 
«f  the  city  of  London.    (Cheers.) 

Mr.  Frith  (deputy.chairman)  seconded  the  motion. 

A  Shareholder  asked  to  what  amount  it  was  intended  to  carry  the  re- 
serve fund.  He  considered  that  the  reserve  was  now  sufficient,  and  thai 
the  whole  of  the  net  profits  ought  to  be  divided  amonsst  the  proprietoia. 

The  Chairman  replied  that  the  board  proposed  to  leave  the  reaerre  as 
it  was,  only  placing  to  its  credit  any  odd  sums  that  might  remain  oyer, 
as  in  the  present  case,  when  the  small  balance  of  £2,300  was  thus  appt^ 
priated.  If  they  kept  the  reserve  at  £300,000,  or  any  other  fixed  sum, 
without  alteration,  the  public  were  apt  to  suppose  that  the  whole  thing 
was  a  myth ;  but,  as  he  had  stated  on  former  occasions,  he  considered 
that  with  a  paid-up  capital  of  £400,000,  a  reserve  of  £300,000  in  rounJ 
numbers  was  sufficient  to  give  confidence  to  the  public,  and  the  plscii^ 
of  the  £2,300  to  it  was  merely  an  indication  that  they  intended  to  alter 
it  merely  by  the  addition  of  such  small  balances  as  might  remain  over 
from  time  to  time  after  payment  of  the  dividend.    (Hear,  hear.) 

The  resolution  was  put  and  carried  unanimously. 

Jhe  Chairman  then  declared  the  dividend  at  the  rate  of  £10  per  oeni 

Digitized  by  LjOOQIC 


Bank  of  London.  987 

vritk  a  buiius  of  £2.  10«.  per  share,  amounting  together  to 
\.  p«r  auiium,  free  of  income  tax,  payable  on  and  after 
tbe  26th  IilhI 

tors  rotiriiipjr  by  rotation,  viz.,  Messrs.  J.  E.  Aiiderdon,  H. 
iermaii  Dakin,  were  re-elected,  and  Alderman  Dakin  returned 

rrell  imderntood  that  there  was  a  vacancy  in  the  board  of 
isequeiit  vi[K)a  the  resignation  of  Mr.  Joyce,  and  he  believed 

cximpott^ikt  for  that  meeting  to  fill  it  up.  ("Hear,  hear,'* 
Lairmau.)     Tlien  he  wished  to  ask  whether    it   was  true,  as 

infonuetJ,  that  Mr.  Allen,  their  able  secretary  and  deputy- 
d,  rtwing  to  his   aii'airs    being   in   such   a   prosperous    state 
ry  ifl  his  ntllce  was  no  longer  an  object  to  him,  resigned? 
man — 3Iui:h  to  my  regret,  Mr.  Allen  did  state  to  me  and  to 
\  receutly    that  by-and-bye  he  proposed  to  resign   the  office 

80  loii^  arid  so  ably  filled  in  tiiis  institution,  and  that  he 
ed  k>  hold  it  im til  it  would  suit  our  convenience  to  release 
I  duties. 

nmld  th(*n  pn»po8e,  if  it  was  entirely  in  accordance  with  the 
harehi»liit?r.s  mid  of  the  directors,  that  Mr.  C.  J.  H.  Allen  should 
offer  JiiiiiKvlf  for  the  vacant  seat  in  the  direction.  (General 
le  fliil  ijiit  make  this  proposition  on  personal  but  on  public 
iii  the  iTiUirest  of  the  shareholders.  They  all  knew  that  Mr. 
«js  to  the  bank  had  been  invaluable.  He  knew  that  the 
!  auditors,  and  all  connected  with  the  establishment  would 
u  could  say  as  to  the  eminent  and  valuable  sei-vices  which  that 
ad  reiideiv^d  to  the  establishment.  Mr.  Allen  had  acted 
i  succeasfully  with  Mr.  Marshall,  the  manager,  in  promoting 
if  the  l^Mttik,  aud  the  result  they  saw  in  the  report  they  had 
Mr.  Alh'ii  hiul  happily  now  attained  a  position  when  he  felt 
ger  suited  to  him  to  remain  a  salaried  officer,  and  therefore  he 
d  liis  iotc^ntion  to  resign  ;  but  as  it  would  obviously  be  a 
o  the  bauk  ii  they  were  dej^rived  altogether  of  the  benefit  of 
Mi*8  assistance  and  a<^]vice,  considering  his  great  ex|3erience 

knowledj^e  of  the  affairs  of  the  institution,  he  proposed  thai 
dect  bill!  to  tlie  vacant  seat  at  the  board.  He  had  thought 
[Ttors  might  feel  some  thfficTdty  and  delicacy  in  making  such  a 
he  boliuvLvl  they  would  feel  no  difficulty  whatever  in  cordially 
[r,  Allen  aa  a  colleague  if  he  were  elected  by  the  spontaneous 
ireholders  tbeumelves.  (Cheers.)  They  had  precedents  for 
fticer  in  Mr.  Allen's  jx^sition,  or  nearly  so,  to  the  direction  in 

of  Mr-  Gil  hart,  of  tlie  London  and  Westminster  ;  Mr.  Pollard, 
a  Joint  Sfcook ;  aud  Mr.  Scrimgeour,  of  the  Union  Bank  of 
heerft.)  He  moved  that  Mr.  C.  J.  H.  Allen  be  appointed  a 
le  place  of  Mr.  C.  Joyce,  resigned.  (Cheers.) 
Tell  secon  Jed  the  motion.  He  had  belonged  to  the  bank  from 
held  a  conaidorable  interest  in  it,  and  could  speak  from  per- 
dge  in  very  many  instances  to  the  great  value  of  Mr.  Allen's 

man — It  has  l>oen  my  good  fortune,  as  chairman,  to  be  a.sso- 
Ir.  Allen  fnrtji  the  first,  and  I  can  conscientiously  say  that 
had  fallen  from  the  mover  and  the  seconder  of  the  motion 
could  possibly  have  exceeded,  the  praise  that  was  due  to  that 
r  big  aealy  his  assiduity,  his  ability,  and  the  value  of  the  advice 
^  ready  to  give  to  the  directors.     Necessarily,  Mr.  Allen  and 


Digitized  by  VjOOJIC 


988  Metropolitan  and  Provincial  Bank. 

I  have  been  thrown  very  much  together,  and  I  do  not  remember  a  ongU 
instanoe  in  which  any  differenoe  of  opinion  has  arisen  between  ns.  Per- 
sonally,  therefore,  and  generally,  I  am  glad  that  this  proposiiioii  has  beea 
made.  My  only  regret  is  that  the  intention  was  not  oommnnicated  to  the 
directors,  and  that  no  opportonity  was  afforded  of  the  proposal  being  nude 
through  us.  The  first  I  heard  of  the  intention  to  propose  Mr.  AUia  vas 
the  circular  whidil,  in  common  with  the  shareholders,  received  yesterday. 
I  shall  welcome  Mr.  AUen  most  cordially  among  us  as  a  membo:  of  ti^ 
board,  and  I  know  the  same  feeling  animates  all  my  oolleagues. 

Mr.  Scott,  in  explanation,  said  he  thought  the  proposition  came  mon 
appropriately  from  a  shareholder  than  from  the  directors,  and  that  wai 
the  reason  he  had  not  consulted  the  chairman  or  the  other  memben  of  the 
board. 

The  resolution  was  then  put  and  carried  unanimously,  and  by  acdamstiop. 

lib.  Allen,  in  returning  thanks,  said  :  I  sincerely  thank  Sir  Job 
Shelley,  Mr.  Scott,  and  Mr.  Tyrrell  for  the  kind  things  they  have  said  of 
me,  and  I  feel  that  I  should  thauk  also  as  warmly  the  gentlemen  who  hare 
signed  the  requisition  inviting  me  to  become  a  candidate  for  the  vaciiii 
seat  at  the  boaiid — an  invitation  which  to  me  was  as  unexpected  as  grati- 
fying. Having  been  associated  with  the  bank  from  its  formatian,  and 
identified  as  I  have  been  with  its  progress  and  its  prosperity,  to  be  placed 
in  the  position  of  a  director  under  such  drcumstanoes  is  a  distinction  d 
which  I  cannot  fail  to  be  proud.  Gentlemen,  in  again  thanking  you,  all  1 
can  say  further  is,  that  the  same  attention  to  the  business  of  the  bank,  the 
same  zealous  regard  for  your  interests  which  has  won  for  me  this  mark  of 
your  good  opinion,  shall  be  given  to  the  faithful,  discharge  of  the  duties  of 
the  office  to  which  you  have  now  been  good  enough  to  elect  me,  audi 
hope  and  trust  with  equal  success.     (Loud  cheers.) 

The  auditors,  Messrs.  G.  Thomson,  G.  Bone,  and  F.  Nalder,  were  re- 
elected. 

Mr.  Bone  returned  thanks,  and  proposed  a  cordial  vote  of  thanks  to 
the  chairman  and  directors,  which  was  seconded  by  Mr.  Sco^  asd 
carried. 

The  Chairman  briefly  acknowledged  it,  and  moved  a  vote  of  thanks  to 
Mr.  Marshall  and  the  other  officers  of  the  establishment. 

Mr.  Frith  seconded  this,  and  it  having  been  carried, 

Mr.  Marshall,  in  a  few  appropriate  sentences,  expressed,  on  behalf  d 
himsdf  and  the  officers  generally,  their  gratification  that  their  services 
were  appreciated,  addins  his  cordial  congratulations  to  Mr.  Allen,  with 
whom  ne  had  worked  so  harmoniously  hitherto,  and  who  was  about  to  take 
his  seat  as  a  member  of  the  board. 

The  proceedings  ^en  terminated. 


MBTBOPOLITAN  AND  PBOVINCIAL  BANK,  LIMITEI). 

Thx  seventh  ordinary  general  meeting  of  shareholders  was  held  at  tbe 
London  Tavern,  on  the  20th  July  ;  Mr.  C.  Gilpin,  M.P.,  in  the  chair. 
"Mx.  J.  Pope  Cox  (the  secretary)  read  the  foUowing  report : — 
"In  accordance  with  the  views  expressed  by  the  proprietors  at  the 
meeting  in  January  last,  a  change  of  management  was  effected  in  Marcfa, 
and  the  progress  of  the  business  has  since  been  satisfactory ;  many  new 
a^d  valuable  accounts  having  been  secured  for  the  bank.    The  oompensa- 


Digiti 


zed  by  Google 


Metropolitan  and  Provincial  Bank. 

tion  of  £2,500  paid  to  Mr.  John  Burton,  the  late  manager,  for  the  unexpired 
tenn  of  his  engagement,  has  been  charged  to  the  reserved  fund.  The 
profits  for  the  past  six  months  have  been  absorbed  by  losses  incurred  pre* 
viously  to,  but  not  ascertained  at  last  audit ;  and  the  directors  regret  that 
no  dividend  can  therefore  be  paid  on  this  occasion.  They  have,  however, 
full  confidence  that  a  more  encouraging  result  will  be  exhibited  in  next 
account.  Mr.  Thomas  Masters  Usbome,  of  Cork  and  London,  having  been 
appointed  a  director  by  the  board  on  the  6th  ultimo,  such  appointment 
will  be  submitted  for  the  approval  of  the  proprietors." 


Balance-aheet,  dOth  June,  1866. 

LIABILITIES. 


Dr. 


Proprietors'  capital,viz. :— £20*paid  on  12,987  shareB,£259,740 ; 
£10  paid  on  3,796  shares,  £37,960  ;  £5  paid  on  254  shares, 
£1,270— £298,970;  received  accoout  call  due  1st  ultimo, 
£16,580 

Reserve  fund  

Deposits  and  current  accounts.  £468,968.  0«.  8i. ;  acceptances 
agamst  securities,  £44,750.  48.  6d 

Balance  of  profit  and  loss  account  


Cr. 
Ca)th  in  hand^  at  Bank  of  England,  and  at  call 
Consols  and  debentures,  at  cost  price,  £58,191.  5#. ; 

accrued  on  same,  £898.  11*.  5d,   ;.     

Bills  discounted,  loans,  and  current  accounts  ... 

Stamps 

Bank  premises  (head  office  and  four  branches)  at  cost  price 

Preliminarv  expenses        

Securities  held  against  acceptances        


PBOFIT  AND  LOSS. 

Dr, 

Cnrrrent  expenses,  £7,509.  9s,  8d,  ;  interest  paid, 
£3,674.  4*.  1  Id, ;  bad  debts  incurred  during  past  half-year, 
£233.  8s.  9d. ;  gross  charges  for  past  six  months     

Bad  debts  incurred  prior  to  the  year  1865         

{^portion  of  preliminary  expenses        

Bebate  of  interest  on  bills  discounted,  £1,357.  Is.  3d,  i  un- 
appropriated balance  of  profit  and  loss,  £480.  Is.  lid. 


£315,550 
7,500 

513,718 
1,837 


£838,605    8 

4 

£121,997     4 

7 

interest 

59,089  16 

5 

587,592     3 

5 

.•        ••. 

353  15 

9 

pnce  ... 

11,947     3 

H 

••        ... 

12375     0 

0 



44,750    4 

6 

£838,605    8 

4 

£11,417 

6,655 

925 


Or. 
Balance  from  last  account 
Gross  receipts  for  past  six  months 


Balance  to  next  account 


1,837 

3     2 

£20,834 

9     7 

£3,073 
17,761 

5  10 
3    9 

£20,834 

9     7 

£1,837 

3    2 

Digitizec 


-=y  Google 


I 


990  Metropolitan  and  Prorim 

BESERVE   FUND. 

Dr. 
Compensation  paid  Mr.  John  Barton,  the  late  ma 

unexpired  term  of  his  engagement     

Balance        


Cr. 
Balance  from  last  account 


Balance  to  next  account 

The  Chairman  said  it  was  his  good  or  ba 

shareholders  once  more  in  the  not  very  envia 

board  who  did  not  feel  themselves  in  a  posit 

At  the  same  time  he  could  truly  say  that  his 

bank  were  altogether  changed  for  the  bett< 

ago.     They  then  had  before  them  an  amoui 

which  made  many  of  them  fear  much  for  t 

ments   to    meet,  the   security  of  which    tl 

themselves  of,  and,  altogether,  there  was  a  a 

'  their  prospects  which  he  did  his  best  to  di 

and  hearty  attention  to  the  afi'airs  of  the  ba: 

position  in  which  the  proprietors  had  a  rigl 

months  he  had  given  almost  daily  attention 

j;  he  had  worke<l  at  the  concern  as  if  it  had  1 

'  most  thoroughly  into  the  present  position  oi 

tion  in  saying  that  they  ha<l  recoupc^l  thems 

that  they  were  now  pussensed  of  a  capital  at 

fc  business  which  some  of  their  neighbours  n 

i  of,  and  that  they  had  every  prospect  of  at 

position.     It  would  have  been  easy  to  havi 

:.  occasion,  and   there    had   not  been  wantinj 

'i  holders  who  thought  that  they  might  fairly 

';  the  reserve   (small  enough  already),  the  lo 

;  only  to  the  business  entered  into  in  1864. 

that  they  had  made  a  sufficient  amount  o 

dividend  of  5  per  cent,  for  the  past  six  m< 

f  was  to  pay  oft*  the  losses  out  of  profits  a.s  the 

conditions,  and  the  only  one  on  which  he  c 

was  that  there  should  be  nothing  approacl: 

— (cheers) — but  that  the  worst  as  well  h»  tl 

I  the  shareholders,  in  order  that  the  sharehol 

( ■  directors  the  responsibility  of  the   accounts. 

!■«  months  had  been  made    under    most    unfa 

management  having  clianged  within  thfit  per 

[  speak  too  higlily  of  Mr.  Ciimcgie,  the  preso 

'■  had  as  yet  only  had  three  months  in  which 

^  with  the  afi'airs  of  the  company  and  to  dove] 

'*  In  spite  of  these  disadvantages,  however,  the 

•|  that,  but  for  the  past  losses,  a  fair  and  comp 

J  been  paid.      (Cheers.)      The  auditors,  both 

•  AcoountantB,  had  not  merely  looked  at  the 


Digiti 


ized  by  Google 


Mdropolitan  and  Provincial  Bank. 


991 


rouiv  iuto  the  securities  for  advances  made  by  the  bank,  and 
r<l  I  III-  :i€count8  till  they  .were  prepared  to  say  that  they  were 
["ifUil.  (Hear.)  The  reserve  would  have  remained  intact 
rr;nj-rMient  with  tlie  late  manager,  which  reduced  the  amount 
riir  lj;Litk  had  an  engtigement  with  Mr.  Burton  for  a  term  of 
L-sirs  IV  ore  uncompleted,  and  it  was  thought  better,  rather  than 
)'  iitij^Mtion,  that  the  matter  Bhould  be  referred  to  the  com- 
t'T  iujii  a  gentleman  acting  for  the  late  manager.  That  plan 
X>tt  <1,  .ind  the   board  had  every  reason  to  be  satisiied  with 

Ymv  tiie  large  increase  in  the  value  of  their  premises  no 
ken  ill  the  account*,  but  he  had  not  the  shadow  of  a  doubt 
I  ahij^  r  the  credit  taken  they  might  fairly  claim  assets  to  the 
'MWiiJ,  if  not  £15,000,  in  absolute  marketable  value.     (Hear.) 

h\\i\  Ji.ul  large  experience  in  banking  in  connexion  with  one 
>;uiks  in  the  countr\^,  and  was  a  person  whose  testimony  with 
ikiiii^  securities  might  be  implicitly  relied  upon,  and  after 
v»^tig;ition  of  the  affairs  of  the  bank  he  was  satisfied  that  it 
fitntiully  and  really  soimd  position.  (Hear,  hear.)  With 
e'Shef't  as  was  then  presented,  showing  an  absolute  20s,  for 
in  VLSI  nd,  how  was  it  that  their  shares  stood  at  so  low  a 
ar,  henv.)  He  cared  little  himself  about  the  market  price, 
been  a  dealer  in  the  shares  of  a  company  of  which  he  was 
tt  tlie  <[epreciation  in  this  case  was  not  justifiable  by  the  facts 
pill  4ik- in  their  baliince-sheet.    (Hear,  hear.)    It  was  perfectly 

iiiaijy  might  think  their  board  not  sufficiently  strong  to 
A\c  coiitidence.  (Cheers.)  He  was  giving  no  such  opinion 
ha*l  acted  with  his  colleagues  heartily  from  the  first,  but 
ilf  1h?  could  say  that  if  it  were  the  opinion  of  the  share- 
he  Ijiiard  could  be  strengthened  or  improved  in  any  way,  the 
B  equally  ^conscious  of  the  necessity  for  such  a  measure,  and 
:Kareti  ti^  take  the  initiative  if  allowed  to  do  so.  (Hear,  hear.) 
vc  thi?^,  however,  as  his  reason  for  the  depreciation  of  their 
iKtanl  who,  in  the  face  of  most  hostile  circumstances,  could 
a  biUiuice-sheet,  who  had  worked  for  the  last  twelve  months 
thtjiit  remuneration,  although  empowered  under  the  articles 
I  i*\  appropriate  to  themselves  a  considerable  amount,  cer- 
L'  uleruoiits  of  conducting  a  bank  to  success.  (Cheers.)  That 
t  f>jil y  did  not  despair  of,  but  looked  forward  to  almost  a.s  an 
lijjty,  (Cheers.)  The  past  six  months  had  confirmed  him  in 
bat  they  had  a  business  which  might  be  made  great,  that  they 
\  wliii-h  were  cheering  and  encoiuraging ;  and,  in  moving  the 
he  report  and  accounts,  he  could  not  but  express  his  earnest 

loitit^ipation  that  whoever  occupied  the  chair  at  the  meeting 
euee  would  have  to  present  a  report  wliich  would  show  that 
occupied  a  position  second  to  none  of  the  new  banking  estab- 
j<:md  cheers.) 
a  having  been  seconded, 

ty,  on  the  part  of  several  shareholders,  wished  to  iisk  whether, 
ice  of  sbtiras  as  any  iutUcation  of  a  want  of  public  confidence 
as  at  present  constituted,  tlie  entire  board,  or  certain  members 
jt  in  tiieir  resio^iations.  He  had  perfect  confidence  in  the 
itl  in  t^everal  oi'  the  directors,  including  the  gentleman  who 
od  the  board. 

man  deferred  his  reply  till  after  the  report  had  been  adopted, 
beare  observed  that  the  report,  though  short,  could  not  be 


Digitized  by ' 


992 


Metropolitan  and  Pro^ 


regarded  as  a  very  sweet  one.  Tonics  i 
medicine,  and  not  the  least  so  for  ban 
mismanagement.  ("Hear,  hear,"  and 
report  and  accounts  as  on  the  whole  aatisf 
all  much  indebted  to  the  chairman  for  his 
must  rejoice  to  welcome  as  their  manager 
most  successful  banks  in  Great  Britain. 
bank  to  adopt  the  system  of  limited  liabili 
and  commanding  premises,  which  alone  w 
to  offer  terms  of  amalgamation  with  then 
Mr.  Carnegie  never  would  have  joined  t 
concern  the  elements  of  success.  (Hea 
whether  any  proposals  for  amalgamation 
and  with  his  question  coupled  a  warning 
cheap. 

Mr.  Galsworthy  expressed  himself  satisi 
the  accounts  were  presented  and  the  res 
looking  at  the  item  of  £12,800  for  prclimi 
to  doubt  the  statement  that  they  had  g 
amount  of  preliminary  expenses  was  more 
balance  of  reserve  and  increased  value  of  ] 
companies  had  depreciated  in  the  market  i 
market  price  was  no  criterion  of  the  actua 

Replying  to  questions, 

The  Chairman  stated  that  the  increase  t 
incurred  entirely  upon  the  building  at  Ma< 
told  was  worth  more  than  all  the  outlay  u 
were  paying  their  expenses,  but  if  there  ^ 
of  the  directors  were  not  worth  keeping  oi 
hesitation.  (Hear,  hear.)  Upon  the  quei 
not,  of  course,  give  any  account  of  proposj 
might  say  that  while  on  the  market  theirs 
that  they  had  stood  amongst  kindred  insti 
had  in  one  shape  or  another  numerous  off< 
But  he  ooacurred  with  those  who  said  th 
(Cheers.)  There  were,  no  doubt,  too  man 
he  was  prepared  to  hold  his  own,  and  wou 
them  than  go  to  others.     (Loud  cheers.) 

Mr.  Hodges — I  am  quite  willing  to  mak 
them  to-day,  or  this  day  twelve  months, 
mises.     (Loud  cheers.) 

The  report  was  adopted  unanimously,  ai 

The  Chairman  formally  moved  the  cc 

appointment  to  the  board,  and  mentioned 

owed  their  present  excellent  managemeni 

question,  he  did  not  believe  there  was  oi 

to  place  his  resignation  at  the  disposal  of  t 

would  benefit  the  bank.     (Cheers.)    A  nui 

rily  placed  in  his  hands  their  resignation,  b 

that  if  the  board  would  work  together  as  tl 

were  enabled,  as  he  had  no  doubt  they  wou 

to  a  certain  extent  during  the  next  six  moi 

satisfactory  to  the  shareholders.     (Cheers. 

Mr.  Fogarty  seconded  the  motion. 

Mr.  Usbome  fully  concurred  with  those 


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Metropolitan  and  Provincial  Bank. 


993 


of  the  bank  tliat  there  shordd  be  an  entire  reconntruotion  of 
(CbecrH )  It  was  essential  that  this  should  be  done  in  order 
bo  oan6d€ncc  of  the  public,  and  that  it  should  be  done  in  the 
ante,  judieious,  and  able  manner.  The  balance-sheet  was  a 
wngratnliiliou,  and  the  best  proof  of  the  value  of  the  new 
serrioes  was  to  be  found  in  the  fact  that  the  bad  debts  of  the 
ad  only  anirjimted  to  £230,  and  even  that  sum  he  believed  to 
:>blematical  tliiin  real.  He  could  not  agree  with  the  chairman 
r  the  direct-orfl  of  past  years  they  would  have  made  5  per  cent., 
i»  profit  had  been  £17,761,  and  the  expense  of  eamiug  that 
hving  only  £3,761,  but  with  public  confidence  and  the  support 
leholdera  their  profits  would  go  on  increasing,  and  would  not 
t  10  per  cent.  With  such  a  balance-sheet,  and  the  shares  on 
bad  been  paid  standing  at  £15,  it  was  clear  that  the  direction 
oonfidence  of  the  public,  and  to  facilitate  the  reconstruction 
)emxy,  six  members  of  the  board  had  placed  their  resignations 
iqah^s  hands. 

flge  did  not  see  why  a  number  of  gentlemen  should  be  displaced 
Boinparative  stranger. 

ley  hoped  that  notliing  would  be  done  which  could  be  oon- 
a  vote  of  want  of  confidence  in  the  directors,  who  had  really 
)ank  well,  or  which  would  carry  reform  to  the  extent  of  revolu- 
[uestioned  the  legality  of  Mr.  Usbome's  appointment  by  the 

^es  was  anxious  that  any  reconstruction  should  be  left  in  the 
e  chairman. 

a  ooDsidered  that  if  it  were  necessary  to  add,  through  the 
o  the  influeucc  of  the  bank,  it  would  be  better  to  make  the 
c^oality  rather  than  in  quantity.  (Hear,  hear.) 
rman,  at  the  request  of  Mr.  Usborne,  read  a  letter  tendering 
ion  of  hix  meinbers  of  the  board,  including  that  gentleman 
placing  thtiQj&clves  in  the  hands  of  the  shareholders  for  re- 
i  or  otherwise. 

Boyd  suggef<tcd  that  the  whole  of  the  directors  should  resign, 
the  reconstruction, 
her  disciLssiun, 

^man,  replying  to  a  question,  said  he  believed  the  board  could 
•ned  withuut  the  shareholders  taking  the  extreme  course — and 
balance-sheet — of  requiring  the  resignation  of  the  whole  body 
^rs.  His  Ruggestion  was,  that  the  board  should  be  left  to 
hemselves  from  time  to  time  as  opportunities  offered, 
mo  wished  the  withdrawal  of  the  resolution  confirming  his 
r  to  the  direction. 

KNi  (the  solicitor)  gave  it  as  his  opinion  that  Mr.  Usborue's 
y  hAving  been  made  prior  to  the  last  meeting,  could  not  pro- 
bfirmed  om  the  present  occasion. 

Boyd  moveil  and  Mr.  Fogarty  seconded  a  resolution  calling 
ole  of  the  directors  to  place  their  resignations  in  the  hands  of 
1 ;  the  Beconder  attributing  the  tmsatisfactory  position  of  the 
m  the  market  to  the  conduct  of  three  of  the  directors, 

y  pro|x>ise<i,  as   an  amendment,  that  the  strengthen ing 
J  of  the  board  should  be  left  to  the  chairman  and  the 
ms^^Lves. 

-gie  said  he  had  not  taken  lightly  the  position  of  manager, 
sfied  himself  that  the  bank  was  worth  20s,  in  the  pound. 


litized  by 


Goos 


994        Englishy  Scottish,  and  Australia 

SpeakiTig  as  a  proprietor  holding  35  shares,  he 

the  resignation  of  the  whole  of  tlie  board.     ( 

The  Chairman  was  taken  quite  by  8uri)ri 

mendation,  and  could  only  Bay  that  it  was 

manager  to  take  such  a  course.     (Cheers,  ami 

]Mr.  Nash,  as  one  of  the  directors  who  had 

denied  that  it  was  from  any  fear  that  he  had 

his  retirement  would  come  round  at  the  next 

then  proi>erly  come  before  the  shareholders, 

confidence  to  re-election.     (Cheers.) 

Mr.  Edwards  (another  director)  was  perf( 
were  the  wish  of  his  colleagues,  but  could  nol 
men  to  sign  an  offer  to  resign  and  press  upc 
adopt  the  same  course. 

A  Shareholder  recommended  that  the  recc 
the  hands  of  the  board,  and  pointed  to  the  wr 
that  occasion  as  a  sufficient  explanation  of  tl 
of  the  bank.     (Hear,  hear.) 

Mr.  Boyd  withdrew  his  resolution,  and  1 
carried  unanimously,  a  result  which  wjw  grc 
Mr.  Usbome :  I  hope  it  is  now  thorough! 
director. 

The  Chairman :  Yes. 

A  vote  of  thanks  passed  to  the  chairmai 
proceedings,  which  had  occupied  more  than 
been  wasted  in  personal  and  irregular  discu^n 


ANGLO-EGYPTIAN 

An  extraordinary  general  meeting  of  this 
July,  for  the  purpose  of  contirming    the 
passed  at  an  extraordinai-y  general  meetii 
the  3rd  : —  . 

"  That  clause  32  of  the  articles  of  associa 
the  month  of  November  for  the  month  of  J 
ordinary  general  meetings  of  the  company 

Mr.  G.  G.  M*Pherson  was  in  the  cliair.  ( 
the  above  special  resolution  was  unanimous 


ENGLISH,  SCOTTISH,  AND  AUSTRA 

The  following  is  the  report  of  the  direc 
fourth  ordinary  meeting  on  the  31st  July  : 
«  The  accimuts  of  the  bank  for  the  ha 
on  the  31st  March,  and  in  London  on  tlu 
mary  is  annexed,  show  a  balance  of  pre 
making  provision  for  bad  and  doubttul 
that  the  necessity  has  arisen  for  writii 
loss  from  failures  referred  to  in  the  las 
is  to  make  the  result  of  the  operatio 
review  less  favourable  than  had  been  ai 


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Clydesdale  Banking  Company. 


905 


tiowffver,  to  re^j^ard  as  exoeptional  the  present  reduction  in  the  amount 
nvailable  for  distribution,  and  have  confidence  in  the  expectation  that 
the  future  profits  of  the  bank  will  admit  of  an  increased  diyidend  being 
maintained.  They  therefore  recommend  that  out  of  the  balance  (S 
£22,538.  17<.  7(2.,  a  diyidend  be  paid  at  the  rate  of  seven  per  cent,  per 
uinum,  free  of  income  tax,  on  £600,000,  the  paid-up  capital  of  the  bank, 
irhich  will  require  £21,000 ;  that  the  premises  and  furniture  accounts  be 
reduced  by  £1,000,  and  that  £638.  17i.  7d.  be  brought  forward  to  the 
current  hadf-year/' 


Dr. 


LUBILITIES. 


Paid-up  capital      

Deposits       ..r        

Bills  payable  and  other  liabilities 

Circaladon 

Reserre  ftind         

Amount  carried  to  profit  and  loss  account 


£600,000    0  0 

837,094  10  7 

185,726  10  10 

97,432     0  0 

50,000    0  0 

34,371     6  II 

£1,754,624    8  4 


Or. 

Bills  receirable  (inelnding  tiie  estimated  value  of  those  or^ue), 

loans  on  security,  ciMh  at  bankers,  &c £1,584,488  16  8 

Specie  and  bullion 163,744    6  4 

Bank  premises  and  funiitare        • ...        56,441    5  4 

£1,754,624    8  4 


PaOFTT  AKD  LOSS  AOCOUKT. 

Current  expenses  in  Melbourne,  Sydney,  Adelaide,  and  sub- 
branches 

1H>.  in  London,  indoding  directon*  remuneration  and  ^income 
tax         


Balance         

By  amount  brought  down 


£9,097  18    0 
2,734  11    4 


£11,832    9    4 
22,538  17    7 

£34,371 

6  11 

£34,371 

6  11 

£84,871 

6  11 

CLYDESDALE  BANKINQ  COMPANY. 

The  following  is  the  report  presented  to  the  twenty-seventh  annual 
general  meeting  of  the  partners,  held  at  the  bjmk  in  Glasgow,  on  the  12th 
July  :— 

"  In  terms  of  the  contract  of  copartnery,  the  directors  have  now  to 
^bmit  to  the  partners  the  annual  statement  of  the  afifairs  of  the  bank  for 
the  year  ending  14th  June  last.  The  period  in  question  has  been  one  of 
^ore  than  usual  anxiety  in  banking  afijEdrs,  arising  from  the  great  fluctua- 
tions in  the  value  of  money,  as  well  as  of  goods  and  produce,  and  the 


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996  Clydesdale  Bankin 

mercantile  failures  consequent  thereon. 

for  the  last  three  months  has  been  low 

has  exceeded  that  of  late  years,  and  the  ] 

satisfactory.    After  making  ample  allowar 

balance  of  profit  and  loss  account  for  the  y< 

the  balance  brought  forward  from  the  pre 

together  £121,658.  12^.  7d.,  which  is  noT^ 

RepresentatioDs  have  been  made  to  the  d 

the  contract  for  the  annual  balance  of 

second  Wednesday  of  June,  is  inconvenie 

would  be  desirable  if  the  balance  day 

December,  a  period  when  many  of  the  cu 

spondents  of  the  bank  close  their  accourn 

views,  and  a  motion  to  carry  the  change 

alterations  in  the  contract,  will  now  be  si 

this  motion  be  approved  of,  it  will  be  nee 

to  call  a  special  meeting  of  the  partners, 

tiou,  and  a  meeting  for  the  purpose  w 

Wednesday,  the  16th  day  of  August  next 

change  in  the  balance  day  being  adopt 

time   recommend    that    out   of   the    las 

dividend,  at  the  same  rate  as  last  year 

[V  and  amounting  to  £40,500,  be  paid  to 

fc  of   income  tax),  on   Wednesday,  2nd  A 

t  added   to    the    reserved    surplus    fund 

•  £235,000,  and  £5,000  written  off  the  cost 

balance  of  £61,158.  12^.  7d.  shall  be  carri 

;f  which  shall  accrue  between  J  4th  June  an^ 

■;  at  the  disposal  of  the  partners,  at  the  mee 

7th  February,  1866,  when  a  whole  year's 

'i  directors  had  occasion  in  last  year's  repo: 

i  their  colleagues  :  they  have  now  to  lamer 

Esq.,  one  of  the  ordinary  directors,  and  ali 

5  ^^  la^t  year  elected  an  extraordinary  dire 

;  gentlemen  had  long  been  associated  in  the 

^\  *^^  directors  take  this  opportunity  of  ac 

••!  services.     The  directors  appointed  James 

tne  vacancy  occasioned  by  Mr.  Hastie's  d< 

(  present  time,  along  with  Mr.  Jolm  Mite 

expired.     The  boai*d  unanimously  reoomr 

engineer,  and  Arch.  G.  Kickton,  Esq.,  mer 

nary  directors,  in  room  of  JMr.  Merry  and 

Abstract  of  Annual  Balance-sh 

LIABILITIES. 

Capital  Of  the  Bank,  £1,000,000;   unissued  i 
Reserved  Surplus  Fund 

Circulation 

Deposits      

Acceptances  on  accounts  of  customerg,*again8i 

by  the  bank         . 

Surplus        .*         


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Bank  of  Otago. 


997 


His  discounted,  head  office  and  branches        £3,246,546    3 

redit  accounts,  head  office  and  branches       ...  1,115,554    5 

Aok  buildings,  including  new  buildings  at  Leith,  Anstruther, 

Palkirk*  and  Tobermory  98,309    6 

cdances  due  by  other  banks      37,552  17 

iveatments  in  Consols  and  other  securities,  and  short  loans 
on  stock,  £995,641.  lis.  Ad, ;  cold  and  silver  coin  and  notes 
of  other  banks  on  hand,  and  cash  balances  with  London 
bankers,  £773,437.  5$ 


£1,769,079     2    4 
£6,267,040  14     I 


The  report  was  adopted,  and  the  dividend  therein  recommended  agreed  to. 


BANK  OF  OTAGO. 


HE  second  ordinary  general  meeting  of  shareholders  of  this  bank  was 
eld  on  the  24th  July,  at   the    London    Tavern,  Bishopsgate  Street; 
lexander  Morrison,  Esq.,  in  the  chair. 
The  following  report  was  read : — 

"  The  directors,  in  submitting  to  the  shareholders  the  annexed  statement 
\  accounts  for  the  year  ending  31st  March  last,  have  the  pleasure  to 
mounce  that  the  hopes  expressed  in  their  circular  of  the  5th  January  last 
ave  been  realized.  The  bank  has  received  numerous  offers  of  business,  a 
prtion  only  of  which,  however,  it  was  deemed  proper  to  accept,  and  the 
Irectors  are  happy  to  state  that  the  business  is  in  a  very  satisfactory  posi- 
on,  there  being  every  prospect  of  a  continuance  of  its  increase  from  the 
rowing  confidence  of  the  public.  A  branch  has  been  established  at 
!ueenstown,  which  is  the  centre  of  a  promising  gold  field,  and  it  is  hoped 
aat  this  step  will  be  attended  with  advantageous  results.  The  share- 
olders  are  already  aware  of  the  large  amount  of  the  capital  locked  up  in 
ivanoes  to  the  Southland  Provincial  Government  upon  their  debentures, 
"he  agent  of  that  Government  is  in  London,  and  the  directors  are  empowered 
>  offer  the  debentures  at  such  a  price  as  will  ensure  a  sale ;  but  it  has  not 
een  considered  advisable  to  bring  them  forward  at  present,  because  there 
\  now  good  reason  to  believe  that  their  value  will  soon  be  enhanced  by  the 
uarantee  of  the  general  Government  of  New  Zealand.  Unfortunately  for 
be  bank,  the  crisis  so  long  prevailing  in  the  money  market  in  London 
^ttring  1864,  rendered  it  necessary  to  pay  a  high  rate  of  interest  for  the 
dvancea  absolutely  required  here  in  consequence  of  that  loan ;  and  this 
<^<x>unts  for  the  heavy  item  of  £64^5.  5«.  lid.  paid  for  interest,  as  stated 
^  the  accounts  now  presented.  The  gross  profits  for  the  year,  after  allowinjg 
or  bad  and  doubtful  debts,  amount  to  ii^9,490.  4s.  8d.,  from  which  it  is 
necessary  to  deduct  £1,080.  0«.  10d.,the  balance  carried  from  last  account; 
^13,023.  3«.  for  the  expenses  of  management  in  London  and  New  Zealand ; 
^4  £6,145.  6s.  lid.  for  interest  paid  for  money  during  the  high  ratee 
^^g  in  1864,  leaving  a  net  profit  of  £8,641.  7s.  lid.,  which  the  directors 
ecopamend  shall  be  appropriated  as  follows,  viz. :— -£600  in  reduction  of 
preliminary  expenses,  £600  in  payment  of  travelling  expenses  to  New 
Zealand,  and  £7,334.  16s.  lid.  towards  a  dividend  at  the  rate  of  5  per  cent. 
>tt  the  capital  called  up  to  31st  December  last,  free  of  income  tax,  and  that 
M  remainder,  £206. 12«.,  be  carried  forward  to  profit  and  loss  new  acoount." 


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998 


Bank  of  Otag\ 


Balance-sheet  to  3Ut  Ma 


Dr. 


Capital,  25,000  shares,  £20  each,  £500,000  ;  £7 
23,853   shares,   £166,971;  less  calls  in  arre 

€152,062;  calls  in  advance,  £1,510      

Deposits,  notes  in  circulation,  and  other  liabiliti( 
Balance  of  profit  and  loss  account  


Or, 

Cash  on  hand  and  at  bankers       

Bills  receivable  and  all  other  advances 

Bank  premises,  furniture,  &c 

Preliminary  expenses        

Travelling  expenses  of  officers  to  New  Zealand 


PROFIT  AND  LOSS  ACC 

Balance  from  last  account        

Charges  at  head  otiice  and  five  branches    ... 
Interest  paid  for  special  loans  in  London 
Balance  carried  down     ...      


QroM  profits  after  allowing  for  bad  and  donbtfU 


Balance  brought  down    ... 


The  Chairman  then  said,  in  moying  the  ad 
not  have  to  trouble  the  meeting  with  more  t 
was  established  at  Dunedin  iu  December,  ll 
tliey  had  400  current  and  deposit  account 
been  established,  and  their  aggregate  cust 
interval  the  bank  had  passed  through  a  crisi 
again.  The  manager  of  the  bank,  Mr.  Bath^ 
influence  in  the  provinces,  which  could  not 
the  bank.  From  the  careful  way  in  which  J 
the  wishes  and  views  of  the  directors,  they  1 
to  expect  that  the  bank  would  be  a  remune: 
the  position  of  the  province  of  Otago,  he  mi 
figures  extracted  from  the  latest  return  he  1 
exports  of  the  province  for  the  year  1863  w 
were  £3,424,349.  The  debt  of  the  province 
total  revenue  for  the  year  £469,794.  The  ^ 
23,000  square  miles,  and  the  province  was  fa 
waa  at  perfect  peace.  The  natives  there  wei 
Rented  to  liim  as  only  150  in  number,  but 
which  was  certainly  an  excessive  estimate, 
thought  nothing  could  interfere  with  the  pi 
Tinoe,  and  with  it  the  progress  of  the  bank. 


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Bat'k  of  Otar/o. 


999 


aDy  qiie«ti<jn  thsit  mi2:litbe  put  to  him,  and  would  conclude 
ti;^  t ] u-  :vluf >t i u] I  ( ti  t\}*  report.  Mr.  Elder  seconded  the  motion, 
uan,  ill  reply  to  pbttn  holders,  in  the  course  of  a  conversation 
1,  said,  the  :fc!«i,14ri  |imd  for  interest  was  for  loans  in  London 
1  rates  wery  very  hl^^ft,  but  any  loans  required  by  the  bank 
taineil  <vn  very  uni«  li  more  advantjvgeous  terms,  being  about 
vor  h\u\k  rate.  It  was  not  thought  necessary  to  state  what 
I  chiLrLff^  ha'l  l>etji  iQCurred  in  London  and  what  in  New 
he  mij^lit  statu  that  every  care  was  taken  to  keep  down 
he  lr»WL'st  jKispiblo  Jj^ure.  As  an  instance  of  the  anxiety  of 
un  that  suhji'ct,  hv  ukight  state  that,  although  thoy  had  now 
'  twM  years,  they  had  not  taken  a  farthing  of  remuneration 
w  that  the  iiarik  was  in  a  position  to  pay  this  dividend,  when 
1,GIK>  far  their  services,  which  had  been  considerable,  and 
taileil  their  |htsi^h;iI  f^niarantee  for  a  large  amount  during  a 
saj-  18G4.  Tiie  snrii  due  by  the  Southland  government  was 
IX>,<Nf  whkh  i;rj3,fMi()  was  secured  by  debentures  for  £110,000, 
jciirml  by  OSJJOO  atrea  of  first-class  land,  and  the  balance  due 
ut  tjf  the  ttrdiiiary  revenue  of  the  province,  the  agreement 
trnment  beiritf,  that  if  the  latter  was  not  paid  at  the  end  of 
B  from  making  tlie  advance,  debentures  were  to  be  given,  to  be 
ty,to  give  time  fur  its  liquidation  by  the  proceeds  of  land  sales. 
•ea  at  present  held  by  the  bank  had  not  yet  been  advertised, 
was  tlien  adnpted. 

I  thou  mo  veil  a  rcsi^bition  to  the  effect  that  a  dividend  of  5 
[eclared,  payabU^  uii  and  after  the  1st  of  August,  and  in  doing 
reference  t^i  the  hnm  to  the  Southland  government,  the  facts 
hese  : — The  Southhmd  authorities  undertook  the  making  of 

and  railways,  and  at  the  time  a  crisis  occurred,  and  the 
soiilil  not  pay  its  debts.  They  handed  the  bank  over  a  certain 
beutiircH,  the  reuiaitider  standing  as  a  book  debt,  and  the 
laud  ftf  the  goveniuient  which  the  chairman  had  described  as 
*r  that  audits  otlier  debts.  It  was  understood  a  proposal  was 
3  of  being  made  that  the  general  government  should  guarantee 
B,  and  tliero  was  nu  doubt  it  wouhl  be  acceded  to,  and  he  had 
leve  that  they  would  ^'et  cash  fnjiii  the  Southland  government. 
oan  the  directors  rained  tlie  bulk  of  the  money  on  their  own 
rity,  and  at  a  time  htst  year  that  they  had  paid  the  high  rates 
The  government  o^i^inally  agreed  to  pay  7  per  cent.,  that  was 
J,  and  they  now  paid  t),  and  would  probably  pay  more  if  they 
I  to  do  so*  The  position  of  the  bank  was  improving  eveiy 
loped  by  the  time  uf  the  next  meeting  all  cause  of  anxiety 
aioved,  and  that  the  directors  woidd   be  in   a  position  to 

larger  dividend, 
brtOB  seconded  the  resolution,  and   it  was  carried  unani- 

P.  Thomson  moved  the  re-appointmcnt  of  Messrs.  South, 
C\  H.  RobinBoii  as  auditors,  and  that  their  remuneration  for 

be  thirty  guineas  each.  In  moving  the  resolution  he  ex- 
reat  confidence  in  tht  future  of  this  bank. 
LcEwan  seconded  the  motion,  and,  as  an  old  colonist,  assured 
jprietors  tkat  there  was  indeed  a  bright  future  for  the  bank. 
raa  progressing  mt»st  favourably  in  every  respect,  and  the 
t  aasured  Mm  that  Mr.  Bathgate,  their  manager,  was  most 


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1000 


North  and  South  Wa 


highly  appreciated  in  Otago,  and  that  by 
making  a  fine  business  for  the  bank. 

The  resolution  was  put  and  carried  unani 

Mr.  J.  B.   Robinson  moved  a  vote  of 
directors  for  the  able  manner  in  which  they 
the  bank. 

Mr.  Hewat  and  Mr.  Bury  rose  together, 
which  was  carried  by  acclamation. 

The  Chairman  thanked  the  proprietors  foi 
and  the  proceedings  terminated. 


r 


NORTH  AND  SOUTH  W. 

The  following  is  the  report  presented  to  the 
South  Wales  Bank,  at  their  twenty-ninth  am 
of  the  Liverpool  Law  Association,  Liverpool, 
Ravenscroft  in  the  chair  : — 

"  In  accordance  with  the  recommendation 

at  last    annual  meeting,  and    approved  b 

now  to  report  that   6,000  additional   shai 

shareholders  (pro  rata)  at  a  premium  of 

whole  of  the  instalments   payable  thereoi 

paid-up  capital  of  the  bank  has  thus  been 

reserve  fund  to  £150,000.      During  the  y 

minimum  rate  of  discount  at  the  Bank  of  E 

to  3  per  cent.,  and  some  of  the  leading  b 

perienced  great  vicissitudes.     Heavy  losses  i 

Liverpool  and  elsewhere,  but  the  directors  ha 

bank  has  in  a  great  measure  escaped  them.   ' 

ending  Slat  December  last  enabled  the  direc 

bonus  of  10  per  cent,  per  annum  for  thai 

usual  dividend  of  10  per  cent.,  and  they  hai 

daring  a  similar  dividend  and  bonus  for  th( 

rule,  however,  tlioy  consider  that  it  will  be 

declare  a  bonus  only  once  in  every  year,  na 

date  the  financial  year  of  the  bank  closes,  ai 

branches  by  the  directors  has    usually  be 

meeting  of  the  proprietors  likewise  would  1 

of    the  bank   for  the  ye^r  ended  30th  uli 

f  6,504.  3s.  6d.  from  last  account,  after  deduc 

rebate  of  interest  on  bills,  salaries,  and  all  ot 

making  full  provision  for  Ioss&m,  amounted  to 

half-yearly  dividends,  at  the  rate  of  10  jjer  c< 

proprietors,  free  of  income  tax,  viz. ;  half-ye; 

£13,698.  45.  lid. ;  half-year  ended  30th  Ju 

income  tax  paid  thereon,  £575.  18s.  6J. ;   b< 

salaries   of  officers,  as  voted  at  last  annua' 

£30,313.  8s.  6rf.;  leaving  £41,130.  IO5.  8rf.,  01 

of  10  per  cent,  per  annum,  free  of  income  tax,  1 

for  the  half-year  ended  31st  December,  1804 

the  half-year  ended  30th  June,  1865,  £14,7( 

thereon,  £575. 18s.  6rf.— £28,982. 14s.;  leaving 

which  the  directors  propose  to  carry  for^i 


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Sheffield  and  Hailaimhire  Bank.  1001 

directors  have  agun  to  report  that  the  large  increase  in  the  business 
of  the  bank,  both  in  Liverpool  and  at  the  branches,  during  the  last  two 
years,  is  still  continuous.  The  work  thus  thrown  upon  the  general 
manager,  Mr.  Bae,  has  become  excessive.  With  the  view  ol  relieving 
him  from  a  portion  of  the  detail  of  the  business,  and  at  the  same  time 
retaining  his  most  valuable  services,  the  directors  propose,  with  the  sanc- 
tion of  the  shareholders,  to  appoint  him  managing  director,  with  efficient 
heads  of  departments  immediately  under  him.  The  directors  who  go  out 
by  rotation  are  Mr.  Joseph  Betteley  and  Mr.  Edward  Thompson.  Mr. 
Betteley  retires  £rom  the  board  in  consequence  of  declining  health,  and 
carries  with  him  the  sincere  respect  and  esteem  of  his  colleagues.  The 
directors  recommend  that  Mr.  Rae  be  appointed  a  director  in  succession 
to  Mr.  Betteley.  Mr.  Thompson  is  eligible  for  re-election,  and  offers 
himself  accordingly.  The  directors  have  again  to  remind  the  shareholders 
that  by  individually  exercising  their  influence  they  can  greatly  assL^  the 
directors  and  managers  in  extending  the  business  and  promoting  the 
interests  of  the  bank." 

The  Chairman  moved  that  the  report  be  adopted,  printed,  and  circulated  * 
amongst  the  proprietors,  which  was  seconded  by  Mr.  John  Bigham,  and 
carried  imanimously. 

The  motions  after-mentioned  were  then  made  and  carried  unanimously: — 

Moved  by  the  Chairman,  and  seconded  by  Mr.  H.  K.  Aspinall — ^  That 
Mr.  George  Bae  be  appointed  a  director  of  the  bank,  to  act  during  his 
term  of  office  as  managing  director,  at  a  salary  of  £1,600  a  year." 

Moved  by  Mr.  H.  K.  Aspinall,  and  seconded  by  Mr.  Edward  Thompson-- 
^  That  the  sum  of  £1,000  be  presented  to  Mr.  Rae  in  recognition  of  the 
services  rendered  by  him  to  the  bank  as  general  manager." 

Moved  by  Mr.  Thomas  Bidley,  and  seconded  by  Mr.  Bichard  Nichol- 
son—^ That  Mr.  Edward  Thompson  be  re-elected  a  director  of  this  bank." 

Moved  by  Mr.  W.  J.  Griffith,  and  seconded  by  Mr.  Thomas  Fisher — 
^That  the  sum  of  £1,000  be  placed  at  the  disposal  of  the  directors,  as  a 
remaneration  for  their  services  during  the  ensuing  year,  and  that  an 
additional  sum  of  £900  be  paid  to  the  daOy  committee." 

On  the  motion  of  Mr.  William  Hind,  a  vote  of  thanks  to  the  chairman 
was  carried  unanimously. 


SHEFFIELD  AND  HALLAMSHIRE  BANK. 
The  twenty-ninth  annual  general  meeting  of  the  shareholders  of  this 
bank  was  held  in  the  Cutlers'  Hall,  Sheffield,  on  the  21st  July;  John 
Bower  Brown,  Esq.,  in  the  chair. 

The  following  report  was  read  : — 

^'  Your  directors  have  pleasure  in  stating  that  both  the  business  of  the 
^k  and  its  profits  during  the  past  year  have  been  larger  than  those  of 
any  year  since  the  bank  was  formed  in  1836.  After  payment  of  all  the 
expenses  of  the  bank,  and  making  suitable  allowances  for  doubtful 
accounts,  the  net  profits  are  £25,950.  3«.  8d.  Out  of  this  sum  the  fol- 
lowing  amounts  have  been  appropriated,  viz.  : — £9,147. 10*.  for  the  divi- 
dend,  after  the  rate  of  10  per  cent,  per  annum  for  the  half-year  ending 
31st  December  last;  £421.  9«.  7d.  for  income-tax;  and  £1,298.  7«. 
^r  bad  debts,  leaving  a  balance  of  £15,082.  11  b.  Id,  unappropriated. 
Your  directors  now  declare  a  dividend  after  the  rate  of  10  per  cent,  per 
azmom  for  the  haif-year  ending  30th  June  last,  amountii^^  to  £9,160, 
VOL.  XXV.  77 


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1002 


Sheffield  and  Hallams) 


together  with  a  bonnB  of  2^  per  cent.,  amoa 
mend  that  the  remainder,  viz.,  £1,342.  17^ 
hind.     The  foregoing  may  be  summarised  tb 

Income-tax  •••        ...         ...        ...         .•• 

Bart  debts 

Diridend  for  half-year  ending  31st  December 
paid  ...        ...         ... 

Ditto  ditto  dOth  June  last,  i 

Bonus  2^  per  cent. 

Added  to  surplus  fund       

Total 


"  The  dividend  and  bonus  now  declared  m 
lion  for  income-tax,  on  or  after  25th  July  in 
•  issued  to  customers  during  the  past  year, 
capital  by  the  simi  of  £250.  The  premium 
to  £100,  have  been  added  to  surplus  fund 
During  the  past  year  the  sum  of  £104.  15s 
debts  previously  written  off  as  bad.  This  a 
plus  fund. 

SnrpUw  fund  on  30th  Jane,  1864,  was    .- 
Added  this  year  premiums  on  ten  shares 
Ditto  debts  written  off  and  since  lecoTered 
Ditto  balance  of  this  year's  profit 

Present  amount  of  surplus  fund 

"The  shareholders  will  observe  with  sa 
sums  for  which  the  surplus  fund  was  called  t 
long  period  of  cheap  money,  have  been  re 
previous  year,  with  a  considerable  addition  t 
now  larger  than  at  any  former  period. 

"  Your  capital  account  stands  thus : — 

7,328  shares  £25,  paid  up,  amount  to     ... 
Surplus  fund,  as  above     

Thus  making  a  total  working  capita 

Comparing  the  capital  and  resources  of  the 

hji^e  solid  grounds  for  congratulation  on  a  st 

rarely  siujjassed  by  any  bank,  and  this,  too,  i 

a})le  a  dividend  as  10  per  cent.,  which  is  ordi 

think  it  right  to  remind  you  that  a  large  pro] 

this  year  was  made  during  the  first  half  of   i 

was  high.     They  need  scarcely  suggest  to  you 

to  expect  bonuses,  when  the  special  causes  oj 

present  state  of  the  money  market  is  one  of  e 

is  considered  that  the  Hallamshire  Bank  has 

its  profits,  the  result  of  the  past  year's  opera 

by  you  with  satisfaction,  as  it  is  so  viewe 

have  been  informed  by  circular  that  on  the 


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Sheffield  and  Sallamhire  Bank.  1003 

Wm.  Waterfall  resigned  the  sitaation  of  manager  of  the  Sheffield  and 
HaUamshire  Bank,  and  that  Mr.  Albert  Holdsworth  was  appointed  to  fill 
that  position.  As  far  as  it  is  possible  to  be  accomplished  your  directors 
endeavour  to  make  their  direction  a  substantiality,  and  not  a  mere  name, 
by  carefully  Buperrising  the  morements  of  the  bank,  and  yet  leaving 
ample  scope  for  the  free  action  of  the  executive  of&cers  of  the  bank.  To 
combine  these  satisfactorily,  so  as  to  produce  the  best  results  for  your 
interest,  is  the  constant  and  untiring  effort  of  your  diieotors.  xour 
directors  feel  it  to  be  both  a  duty  and  a  pleasure  to  express  their  satisfac* 
tion  with  the  marked  ability,  zeal,  and  industry  which  Mr.  Holdsworth 
has  displayed  since  his  appointment  as  manager.  Following  the  plan 
whidi  all  experience  show§  to  be  best  for  inspiring  emulation  and  zeal  in 
any  staff  of  officers  (the  requisite  talents  and  conduct  being  present),  your 
directors  filled  up  the  situations  of  sub-manager  and  thurd  officer  by 
appointing  Mr.  Henry  JoUie  WeUs  to  the  former  and  Mr.  Samuel  Smith 
to  the  latter  position,  both  old  and  trusted  officers  of  your  bank.  Thfi 
steady  and  harmonious  action  of  the  bank  through  all  its  officers  has  given 
mtire  satisfaction  to  your  directors.  Viewing  the  past  year  as  an  excep- 
tional one  in  regard  to  profits,  your  directors  have  deemed  it  proper  to 
present  to  all  the  officers  of  the  bank  a  gratuity  of  10  per  cont.  on  their 
respeotiTe  salaries.  This  gift,  as  growing  out  of  a  year  of  exceptional 
profits,  will  be  considerately  viewed  as  exoeptioBaL  Francis  Bookbj 
Appleby,  Esq.,  of  Kenishaw,  retires  from  the  board,  his  term  of  cxiice 
having  expired,  and  the  directors  nominate  WUliam  Cockayne,  Esq.,  of 
Thorpe  House,  Norton  Lees,  gentleman,  as  incoming  director.  As  usual, 
the  balance  sheet  has  been  carefully  audited  by  all  your  directors  and 
found  correct,  and  everything  connected  with  your  books  is  most  satis- 
factory.  In  conclusion  your  directors  congratulate  you  on  the  growing 
strength,  importance,  and  prosperity  of  your  bank.  From  its  ample  re- 
sources your  directors  are  prepared  to  meet  all  the  legitimate  demands  of 
commerce,  and  to  support  especiaUy,  as  far  as  prudence  will  permit,  their 
numerous  clients." 

General  Balance,  SOth  June,  1865. 


Paidtip  capital  of  £25  per  share  on  7,328  shares          £183,200    0    0 

Surpliu  fund           ...         48,253    6    5 

I>ae  by  the  bank  on  current  accounts,  deposit  receipts  (inclading 

interest  to  this  day),  notes  in  circolation,  and  interest  on  bills 

in  the  bank          373,190    4    0 

Diyidend  for  the  half-year,  after  the  rate  of  10  per  cent,  per 

annum,  on  paid-np  capital  of  £183«200          9,160    0    0 

Bonus  at  the  rate  of  12^.  6(2,  per  share  on  7,328  shares,  being  2  J  ' 

per  cent,  per  annum,  on  the  paid-up  capita! 4,580    0    0 

£618,31.3  10    5 


ASSETS. 

Ctth  in  the  bank,  Mils  discounted,  balances  owing  by  onstomcn, 

and  other  securities         £613,388  10    6 

Bai&piemiMeaMLfiiriiitoie        5,000    0    0 

£618^83  10    J 

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Naiioiial  Discount  i 
Profit  and  Loss  Account,  SOi 


Dr. 


Dividend  for  tho  half-year  ending  3  let  Dcceml 
rate  of  10  per  cent,  per  annum  on  £182,950  ] 

Dividend  for  the  half-year  ending  30th  Jane, 
rate,  on  £183,200  paid-up  capital 

Bonus  at  the  rate  of  Vis,  hd.  per  share  on  7,3i 
2^  per  cent,  per  annum  on  the  paid-up  capit 

Income-tax 

Transfer  to  bad  debts  account 

Balance  carried  down       


Cr. 

Balance  of  unappropriated  profits,  30th  June,  J 
Amount  of  pronts  after  payment  of  expenses 
Premiums  received  on  shares  allotted 
Debts  written  off  as  bad  and  since  recovered 


By  balance  of  unappropriated  profits  brough 
surplus  fund  


The  following  resolutions  were  unanimoii 

"  That  the  report  and  statement  of  the  g 
loss,  which  have  been  read,  be  approved  b 
same  be  printed,  and  a  copy  thereof  sent  to 

"  That  William  Cockayne,  Esq.,  of  Thor] 
man,  be  elected  a  director  in  the  place  of  F 
of  Renishaw,  who  this  day  retires  from  offic 

"  That  the  thanks  of  this  meeting  be  gi 
valuable  services ;  and  that  the  sum  of  £5( 
sented  to  them  from  the  funds  of  the  compa 

"  That  the  thanks  of  this  meeting  be  gi^ 
other  officers  of  the  bank,  for  the  able  and 
they  have  discharged  their  duties. 
**  That  the  thanks  of  this  meeting  be  give] 


NATIONAL  DISCOUNT   COW 

The  usual  half-yearly  or  extraordinary  gen 

was  held  on  the  26th  July,  at  the  London  G 

M.P.,  in  the  chair. 

The  Secretary  (Mr.  R.  Price)  read  the  foil 

^  The  directors,  in  presenting  the  annexed 

the  half-year  ending  30th  June  last,  feel  assi 

participate  in  the  pleasure  they  have  in  sul 

dence  of  the  steady  progress  of  the  business 

profits  for  the  lafit  half-year  have  amounted 

deducting  the  current  expenditure,  directors 

writing  oflT,  in  their  entirety,  all  bad  and  dot 

rebate  of  interest  on  bills  not  yet  due  £36,5! 


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National  Discount  Company.  1005 

sum  of  £65,339.  Os.  Id.,  which,  with  the  addition  of  the  balance  brought 
forward  from  tiie  31st  December  last,  will  then  amounfc  to  £70,092.  Os.  5(2. 
These  aatlBfaotory  results  will  enable  the  directors,  after  appropriating 
£eOfiOO  to  the  payment  of  a  dividend  at  the  rate  of  twenty  per  cent,  per 
annum,  free  of  income-tax,  to  cany  forward  to  the  next  half-year's  profit 
and  loss  account  tiie  sum  of  £10,092.  Os.  5d.  The  dividend  will  be  pay- 
able on  and  afte>  the  1st  of  August. 

Balance-sTie^,  June  30, 1865. 

Dr. 

Capital— viz.,  120,000  shares  of  £25  each,  £5  per  share  paid  ...  £600,000    0    0 

Heaerrefimd 300,000    0    0 

Ltiabilities  on  deposits,  loans,  &e 6,136,632    5  11 

Amount  under  acceptance ,.,        ...  „       „    „ 

Premises  redemption  fnnd , 789  16    4 

Amount  at  credit  at  profit  and  loss  accoont,  as  shown  on  state- 

jnentB      ...        Mt        tit        m        t?*        im        Mt        .,f  70,092    0    5 

Or.  """""""""""" 

Cash,  GoTemment,  and  other  secorities £483,962    8    0 

liOans  at  caU  and  diort  date         431,592  10  10 

Bills  discounted,  not  yet  due        6,147,716    Oil 

Premises      , , 44,243    2  11 


£7,107,514    2    8 


Prqfit  and  Loss  Account  for  the  h^if-year  ending  ZOth  June,  1865. 

Dr. 
Current  expenses,  including  rent,  taxes,  income-tax,  salaries, 

and  all  other  charges      £6,822    7    8 

IMrectors*  and  auditors*  remuneration      1,650    0    0 

Amount  reserved  to  meet  bad  debts         2,363    5  11 

Kebate  of  interest  on  biUs  not  due,  carried  to  new  account       ...         36,571     1     1 
Dividend  at  the  rate  of  twenty  per  cent,  per  annum  £60,000, 
balance  carried   forward  to  profit  and  loss   new   account 
£10^092  «tf.dd 70,092    0    5 


£117,498  15     1 


Cr. 

Balance  bronght  forward  from  3l8t  December,  1864    £4,753  0  4 

Gross  profits  during  the  half-year 112,745  14  9 

£117,498  15  1 


The  Chairman  said— Gentlemen,  in  moving  that  this  report,  together 
with  the  accounts,  be  received  and  adopted,  I  am  happy  to  say  I  shall  not 
have  occasion  to  trespass  any  length  of  time  upon  your  attention,  and  it 
ia  perhaps  the  best  proof  of  the  highly  satisfactory  position  the  company 
oooupies  that  I  shall  have  to  use  very  few  words  in  asking  your  assent  to 
this  resolution.  The  report  speaks  for  itself,  and  I  think  a  more  satisfac- 
tory statement  could  scarcely  be  laid  before  you.  (Hear,  hear.)  And  I 
asBore  you  it  makes  us,  your  directors,  particularly  proud  that  we  are  the 


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National  Discount  Cam 


body  to  which  you  have  entrusted  the  mana^ 
has  been  attended  with  such  successful  results, 
proceed  as  you  have  hitherto  done  to  insure  a  c 
We  have  gone  through  in  the  past  six  months 
period,  when  large  houses,  one  after  another, 
fluential  and  well-established  concerns  were  < 
have,  however,  passed  through  the  crisis  unseat 
of  bad  debts  made  during  the  half-year,  consid 
tion,  is  so  small  in  proportion  to  the  business  d< 
naming.  (Hear,  hear.)  I  trust,  gentlemen,  yo 
that  confidence  which  you  have  hitherto  reposet 
under  the  able  management  we  have,  we  shall  o 
to  produce  a  good  report,  and,  at  aU  events,  I  h 
do  now.     (Cheers.) 

Mr.  Chaytor,  deputy-chairman,  seconded  th« 
Mr.  S.  Barber,  after  personally  congratula 
re-election  for  Limerick,  congratulated  the 
holders  upon  the  flourishing  state  of  afi'ain 
well-managed  concern.  (Hear,  hear.)  Allosio 
chairman  to  the  period  of  peril  the  company 
Considering  the  risk  of  such  a  time  and  t 
almost  world-wide  reputation  which  had  succ 
have  been  surprising  if  the  directors  had  beei 
amount  of  bad  debts,  or  at  least  that  they  had  : 
torily  as  before ;  but  it  appeared  that  they  h; 
nothing  by  bad  debts,  but  that  they  had  made  g 
profit  realised  was  larger  than  during  the  p 
hear)— and  that  after  paying  the  splendid 
they  carried  forward  a  larger  balance  to  the  ciu 
commenced  the  last  half-year's  accoimt  with, 
rumours  of  negotiations  for  an  amalgamatior 
concern,  but  no  positive  information  on  the  subj 
thought,  however,  if  any  such  negotiations  hat 
with  the  firm  that  had  just  come  out  in  the  sli 
company,  they  might  now  rest  perfectly  satisfied 
were.  (Hear,  hear.)  Considering  the  large  am 
of  that  concern,  while  this  company  had  no  iter 
account  under  that  head,  the  only  item  of  origi 
in  the  balance-sheet  being  £40,000  for  premise 
minary  expenses,  he  thought  the  directors  had  a< 
enough  alone.  He  could  only  say  that  he  wishe 
as  satisfactory  as  his  investment  in  the  Nati 
(Cheeri.) 

Mr.  Slater  inquired,  had  the  directors  conside 
be  advisable,  having  regard  to  the  competiti 
surrounded,  to  make  a  further  issue  of  capital, 
their  business,  and  place  the  company  in  a  positi 
respect  ? 

Mr.  Chaytor  replied  that  the  subject  had  bee 
during  the  chairman's  absence.  At  the  instane 
the  directors  did  consider  whether  it  would  be  a< 
pany  second  to  none,  as  Mr.  Slater  said,  in  resp© 
already  second  to  none  in  point  of  credit ;  but  it 
the  capital  they  would  be  placing  a  burden  rount 
holders.     To  pay  an  equal  dividend  upon  the  U 


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National  DUeoimi  Company.  1007 

require  ft  ooDskierable  iacrease  of  boaiiieBB,  iriiidi  the  dixeeiors  did  not  see 
their  way  to  obtaming  at  onoe,  and  they  therefore  decided  that  it  was 
better  to  wait  until  Boch  an  increase  arose  as  would  justify  it  before  calling 
upon  the  shar^olders  for  more  capital.  At  present  he  believed  they  had 
as  nmoh  business  as  they  would  have  if  they  had  a  larger  capital,  without 
the  burden  of  paying  the  dividend  upon  a  larger  capitol  out  of  the  same 
amount  of  profit. 

The  resolution  adopting  the  report  was  then  put  and  carried  unanimously. 

The  Chainnan  moved  a  resolution  that  a  dividend  be  declared  on  the 
psid-up  os^ital  of  £600,000  at  the  rate  of  20  per  cent,  per  annum,  free  of 
income-tax,  payable  on  and  after  Ist  August*  and  that  the  balance 
(£10,092.  0«.  ^d.)  be  carried  to  the  credit  of  profit  and  loss  new  account. 

Mr.  Harrison  Watson  urged  that  when  the  capital  was  increased  by  the 
issue  of  new  shares  at  £5  premiiun,it  was  stated  by  the  chairman  that  when 
the  £600,000  was  paid  up  and  the  reserve  fund  was  established  at  £300,000, 
the  full  profits  should  be  divided  amongst  the  shareholders  witiiout  any 
deduction ;  he  therefore  moved  as  an  amendment  that  instead  of  carrying 
over  £10,000  to  the  new  account,  the  dividend  should  be  at  the  rate  of 
11«.  8d.  a  share,  which  would  leave  a  balance  of  £92  to  carry  over. 
*  The  Chairman  reminded  Mr.  Watson  that  this  was  only  an  ad  interim 
dividend,  and  that  it  would  be  better  to  leave  the  matter  to  the  end  of  the 
year,  and  to  settle  at  the  annual  meeting  in  January  what  should  be  done 
with  the  balance. 

The  amendment  was  not  seconded ;  and  Mr.  Watson  having  expressed 
bis  concurrence  in  the  chairman's  view,  the  resolution  declaring  the  divi- 
dend was  agreed  to  unanimously. 

Mr.  L.  Simpson,  in  proposing  a  vote  of  thanks  to  the  chairman  and 
directors,  eulogised  their  vigilance  and  successful  management  during 
the  critical  period  just  passed  through,  and  suggested  that,  instead  (S 
the  mere  formal  and  barren  vote  of  thanks,  the  shareholaers  should 
mark  their  appreciation  of  the  directors'  services  by  voting  them  £5,000 
instead  of  the  usual  £3,000.  He  observed  that,  in  the  new  company 
which  had  been  referred  to,  the  directors  received  £600  a  year  each ; 
and  if  they  were  as  successful  as  this  company,  the  management  would, 
under  the  arrangement,  receive  a  fabulous  sum,  something  like  £30,000 
a  year,  he  believed. 

Mr.  Watson  would  have  much  pleasure  in  seconding  the  proposition. 

Mr.  Slater,  while  expressing  a  general  concurrence  with  the  proposal^ 
suggested  that  it  shoula  be  brought  forward  in  a  more  regular  course,  after 
uotioe  given. 

The  Chairman,  in  expressing  the  acknowledgments  of  himself  and  his 
colleagues  for  the  oompliment,  and  especially  for  the  good  feeling  which 
had  prompted  the  suggestion  which  accompanied  it,  stated  his  concurrence 
with  the  last  speaker,  that  it  wotdd  be  more  regular  to  leave  the  matter  of 
increasing  the  directors'  remuneration  until  the  annual  meeting. 

Mr.  Simpson  thought  there  was  so  much  propriety  in  Mr.  .Slater's 
recommendation  that  he  at  once  adopted  it,  and  gave  notice  of  moving  the 
£2,000  increase  at  the  next  meeting. 

The  Chairman  had  a  duty  to  perform,  which  was  especially  pleasing  to 
bim,  to  more  that  the  thanks  of  the  shareholders  be  given  to  the  manager, 
Mr.  WebboT,  for  the  very  efficient  and  able  manner  in  which  he  had  con- 
ducted the  very  responsible  duties  that  had  fallen  upon  him  during  the 
past  half-year.  The  mental  anxiety  which  must  have  fallen  upon  that 
gentleman  during  the  period  referred  to  was  far  greater  than  he  (the  chair- 
mm)  ooidd  describe.    Pealing  as  he  had  to  do  with  such  large  sums  of 


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Union  Bank  of  In 


money,  and  having  to  judge  on  the  instant  o 
pauy  and  at  the  same  time  fair  to  the  publ 
difficulty  were  greater  than  oould  be  reacUly  c 
so  carried  out  his  duties  that  not  only  had 
had  realised  a  profit  which  gave  to  the  share! 

(Hear.) 

The  motion  having  been  carried, 

Mr.  L.  Simpson  proposed  a  vote  of   ths 

manager ;  Mr.  R.  Price,  the  secretary ;  and 

imanimously  carried ;   and  after  a  brief  acki 

the  proceedings  terminated. 


UNION  BANK  OF  IRELAl 

The  fifth  general  meeting  of  this  bank  was  1 

London  Tavern  ;  Mr.  E.  W.  Wingrove,  the 

The  Secretary  read  the  report,  from  whi 

profits  of  the  bank  for  the  half-year  were  £ 

sum  there  had  to  be  added  £1,972. 193.  3rf., 

from  the  last  account  :  making  a  total  of 

amount  had  to  be  deducted  for  expenses 

£6,850.    17«.   2d.  for    interest    on  current 

that    there   remained    a    balance  of   £4,11 

proposed  to  carry  to  the  new  account. 

the  result  of  the  half-year  had  not  realL 

they  attributed  the  check  in  the  progress 

causes,  which  they  believed  had  already  \n 

assured  that  as  the  establishment  was  placed 

the  future  contained  abundant  promises  of  it 

The  Chairman,  in  moving  the  adoption  of 

that  the  result  of  their  oi)erations  during  th( 

as  satisfactoiy  as  they  had  anticipated.     B 

able  to  show  that  that  disappointment  had  a 

.  the  directors  had  no  control,  and  from  excepti 

hoped  would  not  again  occur.     One  of  the  gc 

of  interest  which  had  ruled  throughout  th 

dered  banking  operations  very  unromunera 

banks   also  had  more  or  less  suffered.     1 

their  want  of   success,  he  should  particula 

distillery  firm  in  Limerick  early  in   the   s 

accoimt  of  a  very  profitable   character  witl 

had  given  rise  to  a  number  of  very  exagg 

been  very  injurious  to  the  bank  itself.    He 

they  were  thus  likely  to  incur  stated  at  as 

£50,000 ;  but  the  shareholders  would  be  glad 

in  reality  reach  any  considerable  amount.     1 

overdraft  of  £10,706 ;  but  the  bank  had  a  i 

plant  to  the  amount  of  £8,G00;  leaving  ai 

upon  which  debt  itself  a  dividend  would  b 

held  bills  discounted  for  the  firm  to  the  amoi 

these  bills  had  been  reported  as  bad.     The  n 

nary  losses  by  the  bank  which  had  been  so  : 

operated  very  prejudicially,  and  had  compe 

hand  for  several  weeks,  for  the  purpose  of  me 

«um  of  money  which  might  otherwise  hav< 


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Union  Bank  of  Ireland.  1009 

Thafc  mode  of  proceeding,  he  believed,  was  perfectly  judidoiis  under  the 
circumstances,  and  would  tend  to  strengthen  their  credit  by  showing  that 
money  was  safe  in  their  hands.    There  had  been  a  falling  off  in  their 
deposits  during  the  last  six  months,  and  that  circumstance  had  giyen  rise 
to  some  unfavourable  comments  among  their  shareholders  in  Ireland.  But 
he  was  glad  to  be  able  to  state  that  the  actual  dindnutionin  their  deposits 
in  Ireland  had  amounted  to  only.  £2,000  during  the  half-year,  and  that 
diminution  had  taken  place  in  the  spring  time,  when  farmers  usually 
withdrew  their  capital    from  banks  for  the  purpose    of   carrying   on 
their  agricultural  operations.    It  was  true  that  the  falling  off  in  their 
deposits  in  London  had  amounted  to  about  £40,000;  but  that  money 
had  been  withdrawn  in  the  ordinary  course  of  business,  and  not  from 
any  want  of  confidence  in  the  bank.    He  was  glad  to  be  able  to  add 
that  since  the   accounts  had    been  made   up  the  deposits  in  Ireland 
had  increased,  and  that  they  were  at  present  larger  than  they  had 
been  in  the  month  of  April  last.     He  should  further  observe  that 
during  the  same  half-year  there  had  been  a  general  falling  off  of  deposits 
in  the  London  banks,  and  in  one  large  establishment  the  diminution  had 
amounted  to  not  less  than  £1,500,000.    The  directors  would  that  day 
have  to  ask  the  shareholders  to  confirm  the  election  of  certain  gentlemen 
as  members  of  the  board.     They  had  always  expressed  their  desire   to 
have  associated  with  them  men  ol  position  and  influence  in  Ireland,  and 
the  gentlemen  whose  names  were  then  to  be  submitted  to  the  meeting 
would  perfectly  fulfil  that  condition.     (Hear,  hear.)    The  number  of  Irish 
shareholders  in  the  bank  had  considerably  increased  since  last  December. 
They  at  that  time  amounted  to  248,  and  they  were  at  present  308,  thus 
showing  an  increase  of  60 ;  and  that  fact  afforded  a  welcome  proof  that 
they  were  commanding  increased  confidence  among  capitalists  in  Ireland. 
He  believed  that  the  future  contained  for  them  brighter  promises  of  success 
than  the  past.    The  prospects  of  the  harvest  in  Ireland  were  very  en- 
couraging ;  and  he  confidently  hoped  that  the  directors  would  meet  the 
shareholders  under  more  prosperous  circumstances  at  the  close  of  another 
half-year.    With  these  explanations  he  begged  leave  to  move  the  adoption 
of  the  report.     (Hear,  hear.) 
Mr.  J.  Q.  Henriques  seconded  the  motion. 

Mr.  Huggins  drew  attention  to  the  comparatively  small  amount  of  the 
paid-up  capital,  and  expressed  his  opinion  that  a  paid-up  capital  of 
£220,000  was  not  sufiicient.  He  should  prefer  the  capital  being  raised  to 
£600,000. 

Colonel  Western  thought  the  remarks  of  the  hon.  proprietor  originated 
in  a  fallacy.  It  was  not  the  paid-up  capital  the  bank  made  its  money  on, 
but  the  sums  placed  in  it  by  the  depositors  and  customers.  The  capital 
was  ample  for  the  business  they  did,  and  to  increase  it  would  only  cast 
iipon  the  directors  the  necessity  of  devoting  a  large  sum  in  the  pay- 
ment of  even  a  small  dividend. 

Mr.  Straker  inquired  whether  there  was  any  particular  reason  assigned 
for  the  resignation  of  two  of  the  directors,  Mr.  J.  B.  Elin  and  Mr.  L. 
Praser. 

The  Chairman,  in  reply,  said  that  at  present  the  amount  of  capital  in 
the  hands  of  the  board  was  quite  stifficient  to  carry  on  their  business.  If 
their  transactions  largely  increased,  and  it  was  found  necessary  to  establish 
a  branch  in  London,  the  question  of  calling  up  more  capital  might  come 
before  them  very  properly,  but  at  the  present  moment  the  board  were  deci- 
dedly of  opinion  that  it  was  not  advisable  to  make  a  further  call.  (Hear, 
hear.)    With  respect  to  the  resignation  of  two  direotors,  he  could  only  say 


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1010  East  Ltmdan  JBank. 

that  Mr.  El  in,  iidioBe  grMt  commercial  skill  and  infloAnee  had  been  of 
much  service  to  the  book,  had  been  obliged  to  retire  fnm  iUnen,  vhidi 
had  prevented  him  from  attending  to  any  bnflineas  for  aame  months ;  snd 
Mr.  Fraser  had  resigned  becanse  he  found  himself  unable  to  sttmd  the 
yery  frequent  meetings  of  the  board. 

In  reply  to  a  question  from  a  Shareholder, 

The  Chairman  stated  that  the  bank  .woidd  not  lose  a  fsithinff  by  iti 
transactions  witii  Mr.  Morrison^  and  that  the  total  loss  on  the  Hul  i 
eighteen  months  ago  was  £800,  which  had  all  been  written  off  in 
accounts. 

A  shareholder  inquired  whether  the  directors  were  satisfied  with  the 
business  done  at  the  branches. 

The  Chairman  replied  that  the  branches  were  yoong  at  pfeseni,  aad  the 
board  were  not  in  a  position  to  come  to  a  satisfactory  oondusion  as  to  the 
amount  of  the  profits  which  would  be  derived  at  eaxh  brandL  The 
Irish  board  had  visited  one  branch  which  they  thoo^t  was  not  doing 
well,  but  after  making  an  investigation  th^  datennined  to  give  it  a 
further  trial.  He  assured  the  meeting  that  in  the  event  of  any  bnmch 
not  paying  it  would  be  done  away  with  without  the  least  deliioacy. 

The  report  and  statement  of  accounts  were  then  adopted  unanimoasly. 

The  election  of  Mr.  Haughton,  Mr.  Shaw,  and  Mr.  Nixon  having  ben 
confirmed,  the  retiring  dir^tors  ware  re-elected. 

The  auditors,  Mr.  Bamett,  M.P.,  and  Mr.  Miller,  vme  also  re-dbectod, 
and  a  vote  of  thanks  to  the  chairman  and  directors,  and  to  the  managotf 
and  o£5loers  of  the  bank,  concluded  the  proceedings. 


BAST  LONDON  BANK,  UMITBT). 

Thb  third  ordinary  meeting  of  the  shareholders  was  held  on  theSTth  Julyi 
at  tiie  London  Tavern,  Charles  Capper,  Esq.,  in  the  chair. 
Mr.  H.  Daniell,  the  secretary,  read  the  following  report : — 
^  The  directors,  in  submitting  their  third  rejport,  congratulate  the  share- 
holders on  the  continued  progress  and  prosperity  oi  the  bank.  Since  the 
last  half-yearly  meeting  the  head-office  of  the  bank  has  been  removed  to, 
and  thebufidness  is  now  carried  on  at,  the  premises  in  Comhiil.  The  profit? 
of  the  half-year  ending  30th  June,  1865,  as  shown  by  theaocoantBappeaied 
to  this  report,  and  cei-tified  by  the  auditors,  after  providing  for  all  bad  sad 
doubtful  debts,  deducting  rebate  of  interest  on  current  bills,  and  writim 
off  an  adequate  proportion  of  the  amounts  standing  to  the  debit  of  beak 
premises  uid  preliininary  expenses,  enable  the  directors  to  recammepd  t 
dividend  at  the  rate  of  6  per  cent,  per  annum,  free  of  income-tax*  Hw 
directors  think  it  right  to  add  that  the  number  of  current  accoonta,  botk 
at  the  head  office  and  at  the  brandies,  have  berai  and  are  steadily  increasiDg, 
and  the  amount  of  money  deposited  is  much  larger  than  heretofore.  The 
directors  believe  that  the  tmdertaking  is  now  recognised  in  the  d^  d 
London  and  elsewhere  as  one  of  the  scSid  and  matured  joint-stock  banks. 

GenenU  B^Uanee-sheei,  June  30, 1865. 

Capital,  Liabiutiss,  etc 
Dr. 
Capital  authorised,  £2,000,000;  issued  in  20,000  shares  of  £50 

each,  £1,000,000. 
Amount  paid  up^-viz.,  £5  per  share  on  20,000  shares  ...     £100,000    0    0 

Amount  due  on  current  sua  deposit  accoimts  exclusively    ...       386,370    2    9 

Carried  forward £486,370    2    9 

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£a8t  Zandan  Bank.  1011 

Brought  forward £486,870    2  9 

Amount  due  for  general  expenses,  &c 679    7  2 

Reserve  fund          12,000    0  0 

Rebate  of  interest  on  current  bills         ...  £1,448    5    2 

Profit  and  Ioas  account— net  profit  as  per  statement  3,621    2  11 

5,069    8  1 


£504,118  18    0 


Assets,  &c. 
Cr. 

Cash  at  Bank  of  Enghnid,  in  hand,  and  at  call           £128,899    5  9 

Bills  discounted,  loans,  &o 327,844    6  5 

Inrestments  (£13,296.  8*.  Consols)        12,000    0  0 

Bank  premises,  fittings,  and  furniture 28,906  12  4 

Balance  of  preliminary  expenses           6,468  13  6 

£504,118  18    0 

PbOFR  AVD  Loss  ACGODHT  FOB  THE  HaLF-TEAB  ESJDING  JcKE  80,  1865. 

Dr. 

General  charges  at  head  office  and  branches,  £4,195.  Us,  lid. 
Interest  Tpaid  and  due  on  current  and  deposit  accounts, 
£3,116.  2*.  6d £7,811  14    5 

Amounts  written  ofi? — 

Bank  premises  account  for  depreciation  in  leasehold  premises, 
fnrmtnru,  &c.,  £750 ;  prdiminar)r  expenses  account  in 
reduction  of  same,  £500  1,250    0    t> 

Babate  of  interest  on  current  bills,  £1,448.  &s»  2d,;  balance 
being  net  profit  to  30th  June,  1865,  £3,621.  2j.  lid.         ...  5,069    8    1 

£13,631     2    6 
Cr.  -— -— — 

Balanee  at  December  81,  1864,  £8,841.  18^.  lOd.;  deduct 
amount  of  second  diyidend  paid  at  the  rate  of  5  per  cent, 
per  annum,  £2,500         1,341  18  10 

Balance  of  profit  for  half-year  ended  June  30,  1865,  after 
proTidingfor  estimated  loss  by  bad  and  doubtful  debts      ...         12,289    3    8 

£18,631    2    6 


The  Chairman  regretted  the  abaence  of  Mr.  Bntlery  whoee  laboim 
during  the  late  election  had  neceeaitoted  a  tour  in  Scotland,  and  said  it 
was  his  duty  to  move  that  the  report  and  statement  of  accounts  be  received 
and  adopted.  It  afforded  him  very  great  pleasure,  on  the  presentation  of 
the  third  half-yearly  report  and  aocounts,  which  had  been  plaoed  in  their 
hands,  to  think  iktey  would  afford  the  shareholderB  every  satisfaction. 
He  must  repeat  that  it  would  have  been  far  more  satisfactory  if  their 
worthy  chakman  had  been  able  to  preaide,  but  he  found  himself  *^  done 
up,"  and  was  obliged  to  sedc  relaxation.  With  regard  to  the  progress  of 
the  bmrinees  of  the  bank,  evetything  was  going  on  in  a  solid,  satisfactory. 


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1012  East  London  Bank. 

and  steady  way.  Their  business  was  increasing  erery  day,  and  if  they 
continued  in  tne  same  course,  instead  of  offering  them  5  per  cent  they 
should  bo  able  to  give  them  a  much  larger  dividend.  It  should  be  botne 
in  mind,  however,  that  a  very  low  rate  of  interest  had  recently  prerailed, 
and  the  consequence  was  the  profits  of  that  bank,  and  of  all  kinged  estab- 
lishments, had  been  very  smtdl.  He  would  give  them  the  history  of  the 
progress  of  the  bank.  In  the  first  half-year,  the  amount  due  on  corrait 
and  deposit  accounts  was  £209,000.  In  December  in  the  same  year  it  was 
£346,169,  being  an  increase  of  nearly  £140,000,  And  in  the  present  hslf- 
year  the  amount  was  £386,370,  showing  a  very  large  increase.  All  this 
had  been  done  without  undue  or  rash  speculation  at  all.  If  the  board  bd 
erred  at  all  on  any  point,  it  was  on  the  point  of  caution  and  pradeaoe. 
The  greatest  temptations  existed  to  do  a  larger  amount  of  busineBB  to  gire 
them  a  larger  dividend.  But  they  hesitated  to  do  so,  for  they  had  in  all 
their  dealings  regard  for  one  thing,  and  that  was  the  safety  of  the  bask, 
and  the  course  they  had  pursued  had  placed  that  establishment  in  a  higher 
position  than  any  other  establishment  of  the  same  age  in  the  dtj  (^ 
London  held  as  regarded  the  prudence  with  which  they  conducted  their 
business.  If  he  wished  to  give  them  a  further  proof  of  the  vay  in 
which  their  business  progressed,  the  bills  discounted,  loans,  ^  iii 
June,  1864,  were  £235,000,  and  in  December,  1864,  £271,000,  bein| 
an  increase  of  £36,000.  In  the  half-year  ending  June,  1865,  they 
amounted  to  £327,844.  That  showed  they  had  increased  their  Imss^ 
to  that  extent,  and  they  had  been  supplied  with  funds  from  otk: 
sources  to  increase  their  profits.  If  the  proof  were  needed,  he  cool- 
mention  the  fact  that  from  January  .  to  the  6th  of  June,  in  this  jear. 
there  was  an  increase  on  their  current  and  deposit  aooounts  of  33  p^^^ 
cent. ;  and  to  show  them  the  very  good,  substantial,  and  extensive  boa- 
ness  they  were  doing,  he  would  tell  them  the  transactions  of  the  buk 
over  the  co\mter  during  the  last  six  months  amounted  to  £27,000,000  <» 
money.  (Hear,  hear.)  These  were  great  results,  and  this  had  be«i  arriTed 
at  by  the  great  confidence  which  had  been  placed  in  the  management  of  ^ 
bank.  That  had  been  the  policy  of  their  board,  and  this  would  be  polie; 
of  the  shareholders.  Although  they  only  paid  6  per  cent.,  under  the  drcos- 
stances  explained  to  them,  he  thought  they  would  consider  that  terj 
satisfactory.  (Hear,  hear.)  They  should  have  had  no  difiiculty  in  doing » 
much  larger  business,  possibly  it  might  have  been  doubled,  but  th^  hid 
declined  to  do  anythmg  speculative;  Mr.  Butler,  M.P.,  the  diairnuBt 
thought  5  per  cent,  dividend  very  satisfactory,  looking  at  the  circumstance* 
of  the  past  half-year,  and  the  way  in  which  they  had  transacted  thai 
business.  He  believed  the  bank  was  destined,  at  no  distant  day,  to  beccme 
a  great  bank,  because  ho  was  sure  with  the  confidence  they  were  daily  an^ 
hourly  acquiring,  with  the  increased  deposit  and  current  aocountB,  they 
would  be  enabled  to  increase  the  profitable  operations  of  the  bank.  (Hear, 
hear.)  Their  balance-sheet  was  one  signed  by  three  directors^  and  two  <'i 
them  who  were  auditors,  and  Mr.  Toungs  of  the  firm  of  Coleman,  TurqiiM 
and  Toungs.  Every  security,  every  document,  in  the  bank  had  been  in5pecte<| 
by  those  gentlemen.  Every  item  of  doubt  had  been  written  ofL  They  h»i 
taken  crmdtfor  nothing  that  was  not  really  tangible  and  substantial.  (Heftr. 
hear.)  That  was  the  policy  of  the  board,  and  he  hoped  it  would  meet  ^"| 
their  approval.  (Hear,  hear.)  Their  manager,  if  he  erred,  erred  on  the  sideo. 
caution ;  he  erred  on  the  right  side ;  and  if  they  were  to  continue  to  be 
successful,  their  manager,  deputy-manager,  and  secretary  should  be  sojv 
ported,  and  would  be  supported ;  and  he  hoped,  with  the  confidence  reposed 


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Oriental  Financial  Corporation.  1013 

in  the  board  and  oEioers,  they  would  be. much  better  off,  and  better  able 
to  pay  a  larger  dividend  than  they  were  at  present.     (Hear,  hoar.) 

Mr.  Fennings  seconded  the  motion,  which  was  imanimously  adopted 
without  discussion. 

Mr.  White  moved  the  declaration  of  a  dividend  at  the  rate  of  5  per  cent., 
free  of  income-tax,  payable  ou  the  28th  of  July.  There  was  very  little  to 
say,  after  what  had  been  stated  by  the  chairman.  But  this  he  would  say, 
so  far  as  he  had  beeu  concerned,  he  had  used  his  best  endeavours  for  the 
promotion  of  the  best  interests  of  the  bank.  (Hear,  hear.)  He  was  ready 
to  resign  if  any  other  respectable  gentleman  would  occupy  his  place,  and 
employ  his  interest  with  Ms  friends  for  the  benefit  of  the  bank  as  he  had 
done.  But  he  claimed  no  credit  for  it.  Their  large  property  was  in  the 
hands  of  a  few  directors,  and  it  was  for  the  shareholders  to  see  how  far 
their  property  was  properly  cared  for  whilst  tmder  their  management.  He 
had  risen  to  say,  although  he  was  one  of  the  largest  shareholders  in  the 
bank,  he  would  remain  so,  and  if  they  gave  him  their  kind  co-operation  he 
would  return  the  same.     (Hear,  hear.) 

Dr.  Collum  seconded  the  motion,  which  was  imauimously  carried. 

A  sum  of  £50  was  voted  to  the  auditors. 

Thanka  were  voted  to  G.  S.  Butler,  Esq.,  M.P.,  as  chairman ;  to  the 
directors ;  to  the  general  manager  (Mr.  Latter),  the  deputy-manager,  the 
secretary  (Mr.  Daniel!) ,  and  the  other  officers  of  the  bank. 

A  vote  of  thanks  to  Mr.  Capper,  who  presided  in  the  absence  of  the 
chairman,  brought  the  business  of  the  meeting  to  a  dose. 


ORIENTAL  FINANCIAL  CORPORATION. 

The  second  ordinary  meeting  of  the  members  of ^  the  above  corporation 
was  held  at  the  London  Tavern,  on  the.  28th  July ;  Mr.  John  Brown  in 
the  chair. 
The  following  report  and  circular  were  presented : — 

"  The  directors  beg  to  submit  to  the  shareholders  the  report  of  the  pro- 
ceedings since  the  last  general  meeting,  held  on  the  27th  January,  as  also 
the  accounts  up  to  the  30th  June,  duly  audited.  In  the  circular  issued  by 
the  directors  on  the  12th  May,  mention  was  made  of  their  inability,  from 
the  want  of  unanimity  in  favour  of  the  measure  on  the  part  of  the  share- 
holders, to  carry  out  the  suggestion  as  to  the  reduction  of  the  nominal 
amount  of  each  share.  The  directors  have  further  to  report  that  none  of 
the  proposals  for  amalgamation  which  they  have  had  imder  considera- 
tion have,  as  yet,  come  to  a  successful  issue.  With  reference  to  the 
accounts,  the  cUrectors  have  to  mention  that  as  against  the  item  of 
£191,570.  9s.  Sd.  tmder  the  heading  of  "  Advances  on  Securities,"  the  corpo- 
ration holds  collateral  security  to  the  nominal  value  of  £333,685.  It  will  be 
noticed  that  it  has  been  deemed  advisable  to  write  off  a  further  amount  of 
£1,000  from  the  preliminary  expenses,  and  this  reduces  the  amount  at  the 
credit  of  profit  and  loss  on  the  30th  ult.  to  £11,372.  Unless  otherwise 
desired  W  the  shareholders,  the  directors  do  not  intend  declaring  an  ad 
interim  dividend  for  the  past  half-year.  As  mentioned  in  the  circular 
above  alluded  to,  the  directors  have  been  enabled  to  place  the  securities 
of  the  corporation  on  a  more  satisfactory  footing,  but  from  want  of  capital 


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1014 


Midland  Banking  i 


the  business  done  elsewhere  than  in  India 
The  transactions  in  Calcutta  have  been  of 
latest  letters  from  our  agents  in  Bombay  b 
obliged  to  carry  over  some  of  the  loans  tl 
to  the  quoted  price  of  the  shares,  and  th 
many  shareholders  on  that  account,  the  dir^ 
made  by  tliem  in  their  circular,  dated  1 
holders  should  satisfy  themselves  respec 
shares  by  reference  to  the  official  records, 
by  very  few  of  their  number.  Since,  1 
at  a  distance  may  have  been  preventec 
the  opportunity  thus  oflered  to  them,  the  c 
if  the  shareholders  should  think  it  expotUc 
their  own  body  to  inquire  into  tlie  aft'ai 
particular,  such  a  course  would,  probably,  b 

'*  Since  the  accompanying  report  was  pr 
placed  in  a  position  to  lay  before,  and  recc 
amalgamation  with  another  corporation, 
that  au  extraordinary  meeting  of  the  mem 
Tavern,  Bishopsgate-street,  at  twelve  o'clo 
following  business  ; — 1.  To  consider  the  p 
and,  if  sanctioned — 2.  To  pass  the  necessar; 

The  report  was  adopted,  and  the  meeting 


MIDLAND  BANEXNG  COIVJ 


The  fourth  ordinary  general  meeting  of 
London  Tavern,  on  the  28tb  July ;  Mr.  T 
The  report  of  the  directors  stated  tliat  tl 
year,  including  £755.  18«.  9d.  brought  ioT\ 
£22,716. 135.  lid. ;  and  that  out  of  this  s 
of  £7,095.  10s.  2d.  They  recommended  t 
sum  slioidd  be  appropriated  to  the  paymei 
per  cent,  per  anniun,  free  of  income-tiix, 
company,  amounting  to  £150,059  ;  while  ; 
off  i)reliminary  expenses,  £1,000  should 
£2,100.  7s.  %d.  should  be  carried  forward  t^ 

The  Chairman,  in  moving  the  adoption  c 
pany  had  gone  on  steadily  progressing,  a 
half-year  an  improvement  in  every  branch  ( 
might  have  declared  a  dividend  at  the  rate 
they  thought  it  better  to  strengthen  theij 
a  sum  of  more  than  £2,000  to  the  new  accc 

Mr.  B.  T.  Wood,  M.P.,  seconded  the  mc 

The  report  was  then  agreed  to,  and  som< 
been  transacted  the  meeting  separatedi 

fNVe  are  compelled,  in  consequence  c 
meeting  was  held,  to  postpone  a  detailed  n 


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1016 


BANK  OF  EGYPT. 

Ths  half-yearly  meeting  of  the  shareholders  was  held  on  the  28th  July ; 
Mr.  Tite,  M.P.,  in  the  chair. 

The  following  report  was  taken  as  read  : — 

'<  The  directors  have  the  pleasure  to  lay  before  the  shareholders  the 
annexed  statement  of  accounts  for  the  half-year  which  ended  on  the  30th 
Jone  last,  by  which  it  will  be  seen  that  the  net  profits,  induding  a  balance 
of  iB4,819.  6s.  6d.  brought  forward  from  the  previous  half-year,  amount  to 
£16,966. 18s.  3d.  This  enables  the  directors  to  recommend  a  dividend 
for  the  half-year,  as  on  the  last  occasion,  at  the  rate  of  10  per  cent,  per 
aannm  (£12,500),  free  of  income-tax,  leaving  £4,466. 18s.  3d.  to  be  carried 
forward  to  the  next  account.'' 

Balance  Sheet  ZOth  June,  1865. 

LUBHITIBS. 

Capital  paid-np         £250,000    0    0 

Reserve  fund  with  mtereflt  to  date      20,600    0    0 

Bills  payable 300,159    3    8 

Cnirent  and  other  acoonntB 235,748  15  11 

Profit  and  loss,  balance  as  below,  after  payment  of  dividend    ...  4,466  18    8 

£810,974  17  10 


Cash £35,271  0  10 

Bills  receivable       453,108  2    8 

Goverment  securities  (Egyptian) 170,591  4    5 

Other  securities       152,004  9  11 


£810,974  17  10 


Profit  and  Loss  Aeeonntf  ^Oth  June, 


Dr. 

Dividend  for  the  half-year,  at  the  rate  of  10  per  cent,  per 

annum,  payable  on  the  4th  August -.        ...      £12,500    0    0 

Balance  carried  to  next  account 4,466  18    3 

£16,966  18    3 


Or. 

Balance  of  undivided  profits,  Slst  December,  1864 £4,819    G    5 

Net  profits  for  the  last  six  months,  after  providing  fbr  bad 
and  doubtfal  debts,  rebate  of  interest,  current  expenses  in 
Ifondon  and  Bgypt,  and  directors' romuneration     12,147  11  10 

£16,966  18    3 


The  Chairman  moved  the  adoption  of  the  report.  He  said  although 
the  state  of  afiiedrB  in  Egvpt  had  at  times  assumed  a  serious  aspect,  they 
had  eecaped  such  heavy  losses  as  were  incurred  by  some  other  companies, 


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1016 


Stoppage  of  the  Canterbur 


and  including  a  balance  of  £4,819  broughl 
to  £16,9G6.  The  great  cotton  crisis  stn 
houses  in  Egypt,  and  it  was  estimated  th: 
£2,000,000.  To  that  difficulty  was  added 
agent  ha(.l  informed  them  that  the  losses 
Alexandria  4,000,  in  Cairo  5,000,  in  Dami< 
and  that  the  total  number  of  deaths  within 
that  cholera  had  raged  in  EgjTpt  was  19,25 
disease  was  now  abating,  and  trade  might 

The  report  was  adopted,  and  a  dividend 
annum  was  declared. 

The  meeting  terminated  with  the  custon 
man  and  the  other  directors. 

[We  shall  give  a  more  extended  report  i 


WESTERN  BANK  OF 

The  judges  of  the  first  division  of  the  Cou 
verdict  in  favour  of  Mr.  Addie,  who  clain 
Western  Bank  re-payment  of  his  shares,  "w 
bank  on  what  he  alleged  to  be  false  ai 
Tlieir  lordships  did  so  on  the  same  grounds 
verdict  obtained  in  similar  circumstances 
knowe,  as  being  contrary  to  evidence, 
reserved. 


STOPPAGE  OF  THE  C  ANTE  RBI 

On  the  evening  of  the  26th  June,  but  n 

known   tliat  something  was  wrong  in   co: 

Saving's  Bank,  an  institution  wliich  has 

fullest  confidence  of  the  labouring  classes  < 

it  need  only  be  said  that  the  deposits  amou 

£150,000.     On  the  following  morning  the 

bank  had  stopped,  and  for  some  time  consi 

could  be  no  doubt  of  the  fact,  for  the  annoi 

Tlie    Kentish    Gazette,  but   the  alarm   w; 

excitement  by  the  assurance  that  the  trust< 

at  a  meeting  convened  to  consider  the  pof 

depositors  in  full.    The  bank  had  been  clos 

the  defalcations  of  the  actuary  and  secretar 

many  years   been  held  in  great  esteem   1 

position   and  influence  in  East   Kent.      ] 

against  the  secretary,  who  has  made  over  I 

the  bank.     On  the  morning  of  the  27th  the 

depositors'  pass-books,  and  the  tnistees  a 

with   the  concurrence  of   the  authorities  c 

they  would    immediately  be   in   a   positioi 

amount  of  their  respective  amounts,  with  in 


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1017 


THE  NEW  LAW  OP  PARTNERSHIP. 

OAV.  LXXXTI.     AK  ACT  TO  AHEirD  THB  LAW  OV  FAKTirB&SHIFj 
6th  JtJLT,  1866. 

Whereas  it  is  expedient  to  amend  the  law  relating  to  partnersliip  :  be  it 
therefore  enacted  by  the  Queen's  Most  Excellent  Majesty,  by  and  witli  the 
adTioe  and  consent  of  the  lords  Bpiritual  and  temporal,  and  commons,  in 
this  present  parliament  assembled,  and  by  the  authority  of  the  same,  as 
follows : 

The  adyance  of  money  on  contract  to  receive  a  share  of  profits  not  to 
constitute  the  lender  a  partner. 

1.  The  adyance  of  money  by  way  of  loan  to  a  person  engaged  or  about  to 
engage  in  any  trade  or  undertaking  upon  a  contract  in  writing  with  such 
person  that  the  lender  shall  receive  a  rate  of  interest  varying  with  the 
profits,  or  shall  receive  a  share  of  the  profits  arising  from  carrying  on  such 
trade  or  undertaking,  shall  not,  of  itself,  constitute  the  lender  a  partner 
with  the  person  or  the  persons  carrying  on  such  trade  or  undertalung,  or 
render  him  responsible  as  such. 

The  remuneration  of  agents,  (Src,  by  share  of  profits  not  to  make  them 
partners. 

2.  No  contract  for  the  remuneration  of  a  servant  or  agent  of  any  persoa 
engaged  in  any  trade  or  undertaking  by  a  share  of  the  profits  of  such  trade 
or  uudertaking  shall,  of  itself,  render  such  servant  or  agent  responsible  as 
a  partner  therein,  nor  give  him  the  rights  of  a  partner. 

Certain  annuitants  not  to  be  deemed  partners. 

3.  No  person  being  the  widow  or  child  of  the  deceased  partner  of  a  trader, 
and  receiving  by  way  of  annuity  a  portion  of  the  profits  made  by  such  trader 
in  his  business,shall,by  reason  only  of  such  receipt, be  deemed  to  be  a  partner 
of  or  to  be  subject  to  any  liabilities  incurred  by  such  trader. 

Receipt  of  profits  in  consideration  of  sale  of  goodwill  not  to  make  the 
pcller  a  partner. 

4.  No  person  receiving,  by  way  of  annuity  or  otherwise,  a  portion  of  tho 
profits  of  any  business,  in  consideration  of  the  sale  by  him  of  the  goodwill 
of  such  business,  shall,  by  rea.son  only  of  such  receipt,  be  deemed  to  be  a 
]»artner  of  or  be  subject  to  the  liabilities  of  the  person  carrying  on  such 
business. 

In  case  of  bankruptcy,  <kc.,  lender  not  to  rank  with  other  creditors. 

6.  In  the  event  of  any  such  trader  as  aforesaid  being  adjudged  a  bank- 
rnj)t,  or  taking  the  benefit  of  any  act  for  the  relief  of  insolvent  debtors,  or 
entering  into  an  arraugement  to  pay  his  creditors  less  than  20  shillings 
ill  the  pound,  or  dying  in  insolvent  circumstances,  the  lender  of  any  such 
loan  as  aforesaid  shall  not  bo  entitled  to  recover  any  portion  of  his 
I>riucipal,  or  of  the  profits  or  interest  payable  in  respect  of  such  loan, 
nor  shall  any  such  vendor  of  a  goodwill  as  aforesaid  be  entitled  to 
i-o<x)ver  any  such  profits  as  aforesaid  until  the  claims  of  the  other  creditors 
( <f  the  said  trader  for  valuable  consideration  in  money  or  money's  worth 
have  been  satisfied. 

Interpretation  of  "  person." 

6.  la  the  construction  of  this  Act,  the  word  ^'person"  shall  include 
a  partnership  firm,  a  joint-stock  company,  and  a  corix>ratioo. 


vol-  XXV.  78 

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1018 


mSTJItANCB  COBPORATION  ( 

The  Insurance  Corporation  of  Great  Bri 

Marine,  seek  to  raise  £4,000,000  capital, 

the  deposit  to  be  £1  on  application,  £1 

months.    It  is  announced  that  20,000  sha 

of  which  10,000  shares  are  now  offered 

shares  being  reserved  for  the  transfer  an 

fire,  life,  and  marine  insurance  companie 

on  the  success  of  limited  liability,  and  1 

principal  elements  of  insurance  will,  it  is 

developed  under  our  management     Ii 

the  requisite  arrangements  for  vigorous 

and  the  corporation  will  commence  its  ( 

commanding  a  foremost  place  in  this  br 


OVEREND,  GURNE 


The  announcement  of  the  conversion  o1 
Co.'s  into  a  limited  liability  company, 
with  surprise,  but  on  the  whole  wit 
capital  is  to  be  £5,000,000,  in  100,00( 
£15  per  share  is  to  be  called  up  by  a  d( 
share,  £5  per  share  on  allotment,  £4  p 
tember,  and  £4  per  share  on  the  15th 
include  Mr.  Henry  Edmund  Gumey,  I 
Robert  Birkbeck,  all  members  of  the  < 
tlemen  are  Mi\  H.  F.  Barclay,  Mr.  Th( 
Grordon,  chairman  of  the  Oriental  Ba 
Rennie,  of  Massrs.  Cavan,  Lubbock,  a 
the  goodwill  is  £500,000,  one-half 
remainder  in  shares  of  the  company, 
thereon,  terms  wliich,  in  the  opinion  < 
ensure  a  highly  remunemtive  return 
Ward  Chapman  retires  from  the  firm  v 
hereafter  be  engaged  in  other  imjwrtai 
business  will  be  handed  over  to  the  new 
the  vendors  guaranteeing  tlie  company 
and  liabilities  transferred.  Tliree  men 
consented  to  join  the  board  of  the  nev 
also  retain  a  large  pecuniary  interest 
Edmund  Gurney  and  Mr.  Robert  Birld 
of  managing  directoi-s,  and  undertakf 
business,  assisted  by  Mr.  PeDy  and  Mi 
business  of  the  company,"  it  is  very  pn 
this  arrangement,  be  carried  on  as  hei 
the  co-operation  of  the  board  of  direct 


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Reviews.  1019 

rvioes  of  the  existing  staff  of  the  present  establishment." 
ainly  an  essential  ingredient  in  the  success  of  the  under- 
e  directors  finally  promise  that  they  will  give  their  careful 
)  the  cultivation  of  business  of  a  first-class  character  only, 
heir  conviction  that  they  will  thus  most  eflectually  promote* 
ity  of  the  company  and  the  permanent  interests  of  the 


^otes  Issue  Bill — A  Letter  addresed  to  the  Hon.  J,  Leslie 
By  William  Rodwbll.  Dalton  &  Lucy,  Cockspur- street, 
.L,  who  is  the  honorary  secretary  to  the  Association  of  Banks 
I  done  good  servic*  to  the  cause  in  which  he  is  engaged  by 
very  handy  form,  all  the  important  proceedings  taken  by  th«^ 
ith  regard  to  the  recent  Bank  Notes  Issue  Bill  of  the  Chan- 
Excheqner,  from  the  first  issuirg  of  the  bill  to  its  sudden 
when  fixed  for  the  third  reading.  The  facts  are  embodied  in 
asedto  the  Hon.  A.  Leslie  Melville,  the  chairman  of  the  asso- 
Jthongh  for  the  moment  the  subject  may  be  dropped,  there  can 
loubt  that  in  the  next  session  of  Parliament  it  will  in  some 
r  be  revived,  and  in  the  meantime  the  proceedings  of  the 
iow  made  public,  will  be  read  with  interest  by  &.  parties 
the  qnestion. 


f  Numhers—A  Table  by  Lieut.  Col.  W.  H.  Oakes,  A.  I.  A. 
lAYTON,  Fleet  Street. 

las  produced  an  elaborate  Table  of  the  Reciprocals  of  Num- 
to  100,000,  with  their  differences,  by  which  the  reciprocals 
lay  be  obtained  up  to  10,000,000.  This  will  be  found  an 
seful  work  to  i)er8on8  engaged  in-  various  professions,  but 
larly  those  connected  with  insurance  associations,  as  it 
enormous  amoimt  of  labour  in  the  numerous  calddations 
make.  The  Table,  which  forms  a  rathei  large  volume,  is 
iiat  the  references  can  be  made  with  the  greatest  ease. 


Oiretilation  Monetaire  et  la  Banque  et  le  Credit — Par  P.  T. 
tfis.  GuiLLAUMiN  ET  Co.,  Rue,  Richelieu, 
interesting  volume,  written  by  one  of  the  Parisian  school 
onomy.  Mr.  CouUet"  is  a  clever  reasoner  and  a  sound 
le  deals  with  his  subject  in  a  straightforward  manner.  All 
e  watching  the  course  of  the  discussion  on  banking  and 
should  consult  his  elaborate  essay.  The  statistics  con- 
jiking  in  France  and  Belgium  are  especially  valuable. 


Digitized  by 


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;'  1020 

i 

IJ  €axmoxvacni 

'I  To  the  Editor  of  the  "  Bai} 


I 


BANKING  IN  AUl 

Sib — In  communicating  a  few  items  o 

iyoiir  journal,  I  have  to  inform  your  reade 
a  new  local  bank  under  the  desiojnation  of  i 
Limited.    The  capital  is  £200,000  in  20,( 
'  issue  not  to  exceed  10,000.     The  prospecti 

i  the  whole  number  was  applied  for,  and  as 

;  pretty  well  to  do,  individuals  employed  in 

i  a  remunerative  business  may  be  done  in  a 

i  issue  notes ;  it  does  not  intend  to  enter 

«  institutions,  except  in  these  instances — th< 

^  deposits  at  call  or  fixed  for  a  period.     The 

means  and  large  experience  in  commer^ 
'",  manager,  will  have  no  difficulty  in  bringin 

the  beoik  be  managed  economically  and  pr 
\  Company  will,  I  trust,  have  many  flattering 

[r  of  Ballaarat  has  so  much  increased  of  late 

j  have  been  so  successfully  established ';  the 

:|  are  being  so  thoroughly  developed  with 

*  the  agricultural  interests  so  rapidly  ext< 

tl  local  body  of  directors  was  much  needed. 

^  Danking  institutions  in  Ballaarat,  both  En 

||  that  assistance  to  mining  companies,  miue^ 

I*  labour  by  the  establishment  of  a  new  indui 

I  mine,  or  the  character  of  the  miner  or  tra< 

'i  all  danger  of  loss  arising  to  a  bank  making 

;  at  Ballaarat  have  to  act  up  to  the  instructi( 

^  colony,  and  the  chief  in  the  colony  is  uiid( 

ji  London,  who  are  most  likely  men  of  the 

I;  and  commerce,  and  most  anxious  to  promol 

\  establishments ;  but  what  knowledge  is  i 

•  have  regarding  the  mining  and  agricultn 

p  and  constantly  improving  district  1    I  hsu 

it  time  ago,  a  series  of  instnictions  from  the 

.',  office  is  in  London,  to  the  managers  of 

,;  garding  mining  advances,  which,  if  acteil  i 

'I  eyes  of  the-se  worthy  men  by  a  speedily  dec 

^  It  is  well  known  mining  is  the  grand  i 

[  and   bustling  commimity  lives  and  pros] 

.;  immense  quantities  of  gold,  and  giving  ster 

^  men.     The  bank  having  one  or  two  large 

.*  fortunate,  and  so  highly  is  a  connexion  of 

of  the  bank  managers  pay  personal  visits  to 
inducements  for  their  accounts.  In  order 
entertained  of  a  good  mining  account,  I  ; 
of  a  bank,  whose  head  office  is  in  London, 
hearing   that    a    company  determiAed  v 


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Cammunieations.  l02l 

to  another  institntion,  went  in  person  to  the  mine  and  begged  in  iho 
most  humiliating  maimer  to  continue  to  transact  their  banking  affairs 
at  his  bank.  This  conduct  deserves  to  be  exposed,  it  is  not  fair  and  manly 
competition,  and  altogether  unworthy  the  high  character  a  bank  manager 
ought  always  to  bear.  The  success  of  our  local  banks  depends  to  a  large 
extent  upon  the  development  of  the  auriferous  wealth  of  our  mines.  A 
bank  making  advances  to  companies  on  the  security  of  the  machinery 
need  not  expect  to  escape  losses  occasionally.  In  the  event  of  a  company 
proving  unproductive,  or  a  want  of  means  to  prosecute  the  search  for 
gold  arising,  the  security  against  which  an  advance  was  made  falls  into 
the  hands  of  the  bank,  and  seldom  realizes  a  fifth  part  of  the  original 
otitlay,  and  not  unfrequently  the  property  is  quite  imsaleable.  I  do  not 
think,  however,  that  any  bank  in  Ballaarat  has  as  yet  sustained  a  heavy  loss 
by  mining  companies  becoming  insolvent,  whereas,  on  the  other  hand,  the 
connexion  has  proved  most  valuable  by  extending  very  largely  the  circu- 
lation of  notes,  increasing  the  deposits,  and  spreading  discounts  over  a  wide 
area.  There  ai*e  seven  branch  banks  in  this  town,  whose  circulation  of 
notes  may  be  put  down  at  £200,000;  deposits  of  various  kinds  ovei 
£500,000 ;  and  amount  of  bills  imder  discoimt  probably  not  less  than 
£300,000.  Now,  of  these  amounts  the  miners  ought  to  receive  credit  for 
one-half,  at  all  events,  showing  very  plainly  the  mining  community  de- 
serves the  support  the  banks  can  render  individually  or  collectively.  That 
great  caution  and  prudence  are  required  by  baok  managers  in  dealing  with 
mining  companies  and  such  individuals  as  solicit  assistance  on  mining 
security  can  be  readily  seen,  only  I  would  venture  to  say  to  directors  in 
Ix>ndon  interested  in  Australian  banks  that  there  is  a  splendid  outlet  in 
the  gold  fields  for  capital,  which,  if  well  invested,  could  not  fail  of  turning 
out  most  remunerative.  The  financial  operations  of  Ballaarat  are  assuming 
almost  gigantic  magnitude  compared  with  what  they  were  a  few  years 
back.  The  banks  are  doing  well,  and,  by  still  further  extending  assistance, 
great  strides  of  progress  and  improvement  will  occur  within  the  coming 
years  as  have  already  so  greatly  distinguished  this  pushing  town  and  dis. 
trict.  Banking  is  still  in  its  infancy;  there  is-  a  daily  widening  arena 
opening  up ;  resources  are  being  yearly  developed  to  an  amaring  ext^t,  and 
picture  the  fact  of  seven  banks,  with  upwards  of  fifty  officers,  doing  busi- 
nesB  in  a  town  whereon  only  a  dozen  years  ago  sheep  depastured,  and  the 
emu  and  kangaroo  walked  monarchs  of  all  around. 

I  remain,  Sir, 

Tours  truly, 

Bank  Clbiuc. 


BANKEES  AND  ASSURANCE  POLICIES. 

SiA — ^The  present  bankruptcy  law  is  so  very  different  from  the  former 
in  reference  to  the  above,  that  I  think  you  would  do  a  very  considerable 
service  if  you  would  afford  some  space  for  the  discussion  of  this  subject* 
An  ordinary  assignment  of  a  policy  would  run  thus  : — 

^  Know  all  men  by  these  presents,  that  I  of  in  the  county 

of  in  consideration  that  I  am  or  may  become  indebted  or  liable  to 

the  Banking  Company  upon  account  current,  bill,  note,  or  other- 

wise, do  grant  and  assign  to  in  the  county  of        in  the  same  county, 

and  of  in  ike  same  county,  esquires,  (the  trustees  of  the  said 

banking  company),  their  executors,  administrators,  and  assigns,  a  policy  ' 

Digitized  by  LjOOQ IC 


1022 


Commtmicatia 


A 
•J 


or  instrument  of  ajssnrance  effected  by  me  o 
Assurance  Society,  for  the  sum  of  po 

day  of  18  ,  and  numbered 

to  accrue  duo  on  the  said  policy,  and  all  my 
full  iwwer  in  the  name  or  names  and  as  the 
toi-8  or  administrators,  to  demand,  recover,  i 
the  said  assigned  moneys  and  premises  eve 
same  unto  the  said  trustees,  their  executors 
by  way  of  mortgage  for  securing  to  the  s{ 
ment  of  all  moneys  in  which  I  am  or  may 
them  upon  account  current,  bill,  note,  or 
said  Assurance  Society  to  pay  to  the  said 
assigned,  and  when  as  the  same  shall  becoi 
and  emx>ower  the  said  trustees,  at  any  tir 
owing  from  me  to  the  said  banking  compan 
render  the  said  assigned  policy  to  the  said  . 
and  assign  the  same  to  any  other  person  or 
price  or  consideration  in  money,  and  in  such 
tees  shall  see  fit,  and  to  apply  the  moneys 
Assmance  Society,  and  the  proceeds  of  such 
(after  deducting  the  costs  of  and  incident  i 
payment  and  satisfaction  of  the  moneys  and 
be  secured,  rendering  the  overplus  (if  any)  t 
istratoi*s.  And  I  covenant  with  the  said  tru 
aiice  Society  the  premiums,  fines,  and  other 
said  policy,  and  to  produce  to  the  said  trust 
voucher,  for  every  such  payment,  and  to  1 
And  if  I  shall  at  any  time  fail  to  pay  su 
moneys,  or  any  of  them,  within  the  first 
spectively  shall  have  become  payable,  I  autj 
the  same,  and  then  and  in  that  case  I  furthe: 
tees  to  repay  the  same  to  them  with  interest 
the  rate  of  £5  per  centimi  per  annum ;  and 
tlie  payment  thereof.  And  I  declare  that  tl 
said  trustees,  or  any  of  thorn,  for  any  sum  oi 
or  in  respect  of  the  said  ix)licy,  or  upon  any 
af<:)resaid,  shall  be  effectual  dif-xharges  for  thi 
relieve  the  said  Assur«ance  Society,  purchas 
paying  the  same,  from  all  liability  to  see  the 
such  Assurance  Society,  purchaser,  or  other  j: 
bound  or  entitled  to  inquire  whether  any  i 
me  to  the  said  banking  company.  And  I  dt 
trusts  hereby  given  to  or  reposed  in  the  said 
the  trustees  or  trustee  for  tlie  time  being  c 
In  witness  whereof  I  have  hereto  set  my  han< 
of  18        . 

Signed,  sealed,  and  delivered  in  the  presen 
Kow,  under  the  former  bankrui^tcy  law,  th( 
the  amount  deducted  from  the  proof ;  so  it 
but  in  the  assignment  above  there  arc  two  dif 
assignment  of  the  policy  with  its  then  valu 
valuable  covenant — viz.,  the  provision  for  i 
main  point  in  the  value  of  a  life  policy  na  a 
comes  more  and  more  valuable.  Under  the 
and  clear,  because  the  then  value  of  ihe  p 


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Oammunications.  1023 

the  proof,  and  the  fatare  premimns  became  a  new  and  continuing 
om  which  bankruptcy  did  not  release  him.    For  instance,  snp- 

annnal  premixmi  became  due  even  the  very  next  day  after 
7y  he  could  be  sued  for  it,  and  so  on  from  year  to  year ;  but  the 

1861  bars  such  proceedings,  and  thus  far,  at  first  sight,  would 
rable  damage  to  life  policies  as  securities — and  thus  the  import- 
I  subject  under  discussion.  The  clause  to  which  I  refer  is  ^Act 
le  154)  and  runs  thus  : — **  If  any  bankrupt  shall  at  the  time  of 
n  be  liable  by  reason  of  any  contract  or  promise  to  pay  pre- 
n  any  policy  of  assurance,  or  any  other  sums  of  money,  whether 
>therwise,  or  to  repay  to  or  indemnify  any  person  against  any 
wits,  the  person  entitled  to  the  benefit  of  such  contract  or  pro- 

if  he  think  fit,  apply  to  the  court  to  set  a  yalue  upon  lus 
der  such  contract  or  promise,  and  the  court  is  hereby  required 
n  the  value  thereof,  and  to  admit  such  person  to  prove  the 
ascertained,  and  to  receive  dividends  thereon." 
'd  may  is  to  be  construed  as  must ;  at  any  rate,  you  will  find 
'  sue  as  in  former  times.  Now,  this  would  have  a  very  impor- 
upon  the  proof.  We  will  take  an  ordinary  office  valuation  of 
paid.  Say,  a  policy  has  paid  in  £100  in  premiums,  the  policy 
id  the  age  fifty,  the  office  value  would  be  something  like  £40, 
lue  down  of  the  future  premiums  would  be,  say,  ^^^50.  Now 
»bt  due,  the  proof  would  stand  thus  : — 

Balance  due  at  bankruptcy     £584 

Deduct  value  of  policy,  say 40 

544 
Add  actuary's  valuation  of  future  pre- 
miums, say •    250 

Amount  of  proof       •••    £794 

proofs  made  in  this  way  passed  by  three  or  four,  and  objected 
3 ;  but  on  explanation  all  have  acceded  to  it.  But  it  is  a  ques- 
orthv  of  consideration,  as  it  makes  a  life  policy,  even  if  a  young 
^  valuable  security  in  case  of  bankruptcy,  by  increasing  the 
bt  may  be  proved  for ;  and  on  considsration,  taking  the  assign- 
ed, it  appears  to  be  buth  fair  and  reasonable,  because  if  you 
present  value  of  the  policy,  that  is  all  that  can  be  demanded, 
d  charge  for  future  premiums  is  also  a  distinct,  but  valuable 
ad  as  the  new  law  takes  away  your  power  to  sue  for  future 
it  is  right  that  you  should  take  a  dividend  on  that  value  of 
liums.  I  shall  be  glad  to  see  this  matter  fully  discussed  in 
le  pages  of  your  journal. 

Tour  very  truly, 

H.  S.  0. 


AUSTRALIAN  SOVEREIGNS. 

reply  to  your  correspondent  "  T,"  I  beg  to  say  that  the  Act 
:i  to  these  coins  makes  them  legal  tender  in  England,  after  the 
proclamation  by  her  Majesty  declaring  them  to  be  so.    This 


Digitized  by 


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1034 

PTodasuition  haa  not  yet  beea  publiahed,  in  «iiiMqiftnioe,lbeliBfV^claatt 
difference  as  to  alloy  between  the  aothoritieB  at  tlie  Tower  and  tile  Sydaey 
Mint. 

I  am.  Sir, 

Your  obedifiOdt  aenrant, 

J.PLAflB. 

5th  July. 


FOREIGN  BILL  OF  BXCHAKGE. 

Rm — ^Will  you  kiudly  Cavour  me  with  your  opinion  on  the  foUoviag 
point : — 

A  bill  (IrawQ  from  Hamburg  on  London,  on  the  26th  May,  at  three  BKwtbs 
after  date,  is  accepted  by  the  drawee  thua — "  pr.  ultimo  Sept.,  aooeptoi 
at— A.  B/'  Is  it  legally  due  ou  the  20th  August  according  to  teDor,or 
can  payment  only  be  demanded  on  the  30th  Sept.  (or  3rd  October  withtiie 
grace),  according  to  the  acceptance  2 

Toon  truly, 

W.  ILN         I 

July  12, 1866. 

[We  apprehend  the  acceptor  would  have  the  right  to  vary  the  towr  ot 
the  bill,  unless  the  holder  refused  and  so  protested  it] 


THE  PARTNEBSHIP  ACT. 

Snt — ^1.  Please  state  what  is  the  liability  of  a  person  who  has  a  small 
sum  of  money  in  a  business  concern,  and  who  reeeiyes  his  share  of  ihe 
profits  ? 

2.  Is  he  liable  for  his  proportion,  or  all,  of  the  debts  of  the  concern  so 
far  as  his  private  property  would  go  in  coTering  same  ? 

3.  In  the  eyent  of  bankruptcy  of  the  firm,  would  this  party  loose  all  the 
money  he  has  in  the  firm,  or  would  he  be  considered  a  creditor  ? 

Truly  yours, 

A  SUBflCUBO. 

July  13th,  1865. 

[The  Act  of  Parliament,  28  and  29  Vic.  c.  86,  passed  during  the  hie 
session,  will  fully  answer  all  those  questions.  It  is  a  short  Act  and  » 
published  elsewhere  at  length.] 


GROSSED  CHEQUE. 

21st,  July,  1865. 
Sir — ^Will  you  inform  me  whether  a  crossed  cheque  which  has  not  the 
words  **  A  Co."  written  between  the  double  lines,  may  be  paid  to  a  priTake 
party  presenting  it,  or  whether  it  is  necessary  that  it  come  through  « 
bank. 

I  am,  Sir, 

Yours,  ^., 


[Yes :  the  holder  oan  demand  paymieat.] 


CSBQUB  CUBI* 


Digitized  by  VjOOQIC 


1025 


(KslaUs  tsi  Jfaileb  Jfirms^ 


THE  ESTATE  OF  MESSRS.  J.  T.  BELL  <fe  CO. 

}  of  the  creditors  of  Messrs.  J.  T.  Bell  and  Co.,  of  London 
Biy,  was  held  on  the  10th  July,  when  an  approximate  statement 
airs,  prepared  by  Messrs  Coleman,  Turquand,  Youngs  and  Co., 
ted,  showing  general  debts  and  liabilitiea  of  £34,998,  and  assets, 
There  are  special  liabilities  on  account  of  Nowrojee  Ardaseer, 
,  amouniing  to  £280,250,  but  the  property  of  this  native  banker 
lant  is  placed  at  a  much  higher  total,  and  it  is  expected  he  will 
meet  aU  his  liabilities.  The  creditors  having  expressed  entire 
in  Mr.  Bell,  the  partner  on  this  side,  resolutions  were  passed 
;  the  meeting  until  further  information  was  received  from 
LoL  the  meantime  it  has  been  arranged  that  Mr.  Bell  shall 
ie  liquidation  with  the  assistance  of  Messrs.  Coleman,  Turquand, 
d  Co.,  two  of  the  creditors  giving  at  the  same  time  the  benefit 
nee. 


MERCANTILE  SUSPENSIONS. 


ring  suspensions  have  been  announced  during  the  past  month  : — 
dessrs.  Thomas  Moore  &  Sons  Manchester,  Iron  Merchants.  ^ 
fessrs.  Frederick  Osterroth  <&  Co.,  London,  Qeneral  Merchants. 
feesTS.  J.  T.  Bell  &  Co.,  London,  East  India  Trade, 
tfessrs.  Naamyth  <b  Co.,  London,  East  India  Trade, 
ilessrs.  Scott,  Bell,  <fe  Co.,  London,  East  India  Trade. 
dessiB.  Jarvie,  Thorbum,  &  Co.,  Shanghai,  Merchants. 


MONTHLY  CHRONOLOGY. 

.—Suspension  announced  of  Messrs.  Thomas  Moore  and  Sons, 

ater,  iron  merchants,  with  liabilitiea  to  about  £35,000. 

—Stoppage  of  Messrs.  Frederick  Osterroth  and  Co.,  of  Upper 

reet,  described  as  general  merchants. 

ure  of  Messrs.  J.  T.  Bell  and  Co.,  of  Billiter  Square,  in  the 

.  trade,  with  about  £36,000  liabilities. 

union  of  Meanre.  C.  I.  Nasmyth,  and  Co.,  of  Great  St.  Helen's, in 

trade,  with  debts  amounting  to  £70,000. 

lament  prorogued  by  commission,  the  Queen's  message  having 

by  Earl  Granville,  and  on  the  same  day  the  dissolution  of  Par- 

ji  announced,  by  royal  proclamation,  in  the  London  Gazette. 

lire  of  Messrs.  Scott,  Bell,  and  Co.,  of  London,  in  the  East 

i,  with  £800,000  liabiUties. 

3  elections  for  the  representatives  in  the  new  Parliament  com* 

sHigenoe  received  of  the  suspension  of  Meears.  Jarvie,  Thorburni 


Digitized  by 


^ 


V 


^^26  liotes  of  the  M 

and  Co.,  of  Shanghai,  agents  to  Messrs  Buc 
failed  m  London,  in  April. 

27.— The  directors  of  the  Bank  of  Ensrla 
discount  from  3  to  3J  per  cent.  ^ 


BAKK  MOVEMi 

V^l'^j  ^\  ^"™?eour.  retires  from  the  post 

-uYico.    JOT.  ,1.  A.  Uarton  succeeds  to  t] 

In  consequence  of  the  elevation  of  Mr  T  i 
manager  of  the  Union  Bank  of  London  m,  rT 
manager,  has  been  appointed  mt^.T;"'  Mr"  W 


auction  rooms  on  the  10th  of  March       tL  i      ^ 
.  aented  to  one  of  plaintiffs'  derks  a  £10  nL?T 

f  receired  in  exchano-fl  ^\  o«^  *    1     **"  "^^^^  ^^ 

.ndEdwte.«^^----A  case  of  . 
15th  Jnlr.     ft  waV7n  ?„^  I  i?°  '"'■  '>e«ring  at  the 

f  ««l^.for  w^o^h'h^p'.f/rde^t  $?";'««"??  l*""^ 


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Trade  of  the  United  Kingdom.  1027 

damages  and  for  tho  £6  deposit.  The  dudrman  ruled  that  he  had  no  right  to 
damages,  but  that  he  was  entitled  to  have  the  dej^sit  refunded.  Against  this 
decision  the^  compan7  appealed,  and  Judge  Christian  gave  jndgment  in  their 
favour,  holding  it  to  be  clear  that  the  respondent  was  not  entitled  to  get  a  loan 
merely  because  he  held  shares,  and  that  he  was  equally  not  entitled  to  get 
back  the  deposit.  The  shares  were  his  property,  and  he  was  entitled  to  dividends 
upon  them«  out  could  only  relieve  himself  of  the  liability  respecting  them  by 
transferring  them  in  proper  form. 


TENDERS  FOR  BILLS  ON  INDIA. 

The  biddings  for  26900,000  rupees  in  bills  on  India  took  place  on  the  5th 
July  at  the  Bank  of  England.  The  proportions  allotted  were  to  Calcutta, 
17,41,000  rupees;  to  Madras,  35,000  rupees,  and  to  Bombay,  6,60,000 
rupees.  The  minimMWi  price  was,  as  before,  l8„  10^(2.  on  Gidofutta  and 
Madras,  and  Is,  lOfd.,  on  Bombay.  Tenders  on  Calcutta  and  Madras  at 
and  above  Is.  llf  d.  and  on  Bombay  at  and  above  2s.,  will  receive  in  full. 
Further  biddings  for  25,00,000  rupees  in  bills  on  India  took  place  on  the 
llHh  July.  The  proportions  allotted  were— to  Calcutta,  17,76,000  rupees  ; 
to  Madras,  2,24,000  rupees,  and  to  Bombay  5,50,000  rupees.  The  mini- 
fnwoh  price  was  as  before.  It.  lO^d.  on  Calcutta  and  Madras,  and  Is.  lOf  d. 
on  Bombay.  Tenders  on  Calcutta  and  Madras  at  I5.  ll|d.  wiQ  receive 
about  54  per  cent.,  and  on  Bombay,  at  2s.  in  full. 


TRADE  OF  THE  UNITED  KINGDOM. 

Thb  Board  of  Trade  returns  for  the  month  and  five  months  ended  the 
31st  May,  were  issued  on  the  29th  June,  and  on  the  whole  may  be  regarded 
as  more  l^vourable  than  thoso  presented  for  the  two  or  three  previous 
months.  Although  there  is  again  a  falling  off  in  the  value  of  the  exports, 
still  it  is  less  in  amount  than  several  of  the  preceding  returns,  and  shows 
a  steady  revival  in  trade.  The  total  declared  values  of  exports  for  the 
month  of  the  present  year  was  £13,194,758  against  £14J.76,640  in  1864, 
and  £11,281,289  in  1863,  which  is  a  decrease  as  compared  with  the  former 
period  of  £981,882,  but  an  increase  over  the  latter  of  £1,913,469.  For  the 
five  months  of  tiie  present  year  the  total  was  £60,901,576,  against 
£64,060,060  in  1864  and  £50,742,670  in  1863,  showing  a  decline  of 
£3,167,484  as  contrasted  with  1864,  but  an  increase  of  no  less  than 
£10,1^,906  over  1863.  As  regards  exports,  there  has  been  an  increase  in 
alksJi,  beer  and  ale,  coals  and  culm,  cotton  yam,  cotton  manufactures, 
machinery,  seed  oil,  silk  manufactures,  and  woollen  worsted  yams.  On 
the  other  lumd,  there  has  been  a  decrease  in  apparel  and  slops,  haber- 
dashery and  millinery,  hardware  and  cutlery,  linen  yam,  linen  muanfac- 
tureSy  metals,  thrown  silk  and  woollen  and  worsted  manufactures.  With 
respect  to  imports,  there  has  been  an  increase  in  animals,  guano,  raw  silk, 
talfow,  wool,  cocoa,  and  coffee,  but  a  falling  off  in  docks  and  watches,  raw 
oott<ni,  fiUL  and  hemp,  saltpetre,  flax  seed  and  linseed,  woollen  manuf ac^ 


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1028 


Trade  of  the  United 


turea,  spirits,  sugar,  tea,  tobacco,  and  wine, 
has  been  a  large  increase  in  the  iini)ortatioi 
regards  provisions  an  increase  is  exhibited 
lard,  but  a  decline  in  bacon  and  hams,  salt  ] 
.tables  exhibit  the  changes  in  the  several  arl 

EXPOBTS. 


' 

Coals  and  culm 

... 

...     tons 

. 

Cotton  manufactures    ... 

... 

...    yards 

Cotton  yarn       

••• 

...      lbs. 

Haberdashery  and  millinery 

... 

...  value  £ 

Luicu  manufactures     ... 

... 

...   yards 

', 

Linen  yam        

... 

...     lbs. 

Iron,  pig             

... 

...     tons 

Ditto,  railway 

... 

•••       »» 

Copper,  unwrought 

... 

...    cwts. 

Ditto,  sheets,  nails,  &c. 

... 

...         ,1 

', 

Oil  seed             

... 

...  gallons 

Silk  manufactures 

... 

...  value  i 

Ditto,  thrown    ...         .•• 

.•• 

..•     lbs. 

' 

Bnirits,  British 

Woollen  cloths,  &c.      ... 

... 

...  gallons 

\ 

••• 

...    yards 

Woollen  and  worsted  yarn 

... 

...     lbs. 

Imports. 

.1 

Cocoa     ...        ...        ••• 

...     lbs. 

; 

Coffee     

... 

...       „ 

,  \ 

Wheat 

... 

...      qrs. 

i 

Wheat-meal  and  flour 

... 

...    cwts. 

A 

Cotton,  raw       ...        ... 

.*■ 

...       f, 

. 

Flax        

... 

•••       »i 

•I 

■I 

•J 

Hemp      

•.. 

,, 

Hides,  tanned,  &c. 

... 

...      lbs. 

i 

Leather  manufactures  ... 

... 

...    pairs 

,M 

Butter     

••* 

...    cwts. 

Cheese 

... 

•••       »» 

') 

Flax-seed  and  linseed  ... 

.•• 

...     qrs. 

Silk,  raw 

... 

...     lbs. 

^ 

Silk,  thrown       

.•• 

•  ••            ,y 

i 

Silk  manufactures 

••. 

...            tt 

Spirits     

... 

...  gallons 

,' 

Sugar,  unrefined 

••• 

...    cwts. 

\ 

Tallow 

... 

...       tt 

•\ 

X  ea         ...         ...         ... 

... 

...     lbs. 

»: 

Tobacco , 

... 

...           It 

1 

Wine       

... 

...  gallons 

.i| 

Wool       

... 

...      lbs. 

S 

Woollen  manufactures... 

... 

...  value  i 

ll 

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1029 


MONETARY  REVIEW  FOR  THE  MONTH  OF  JULY, 

FiSTAKCfiAL  and  oommeroial  affiurs  haye  not  experienced  any  great  change 

during  the  past  month,  still  there  has  latterly  been  a  tendency  to  increase 

in  -fche  value,  and  the  rate  has,  at  the  last  moment,  the  27th  July,  been 

placed  at  3}  per  cent.    This  is  a  rise  of  ^  per  cent. ;  from  the  diaracterof 

the  temporary  pressure  the  last  few  days,  some  parties  expected  that  an 

a.(l^ance  of  1  per  cent,  would  be  made.    It  is  satisfactory  to  find  that  the 

Sank   directors  do  not  consider  it  necessary  to  prooeedfnrther  in  the  adverse 

direction  at  present,  seeing  that  the  next  day,  the  88th,  £133,000  bar  gold 

vras  sent  into  the  Bank,  and  that  the  Bank  of  France  return  has  once  more 

improTed.    The  course  pursued  by  the  governor  and  the  court  appears 

eixceedingly  proper.  Exceptional  circumstances  are  for  the  moment  ratably 

ixkfluencing  the  money  market,  and  though  as  the  season  advances,  the  terms 

may  become  dearer,  it  is  not  supposed  the  rise  will  be  immediate.    T^e 

only  drawback  at  present  to  the  existence  of  a  sound  state  of  things  is  the 

introduction  of  public  companies,  the  majority  of  which  can  never  last. 

Tlie  proBX)ects  of  the  harvest  are  favourable,  and  it  is  now  said  the  returns 

-will  prove  an  average  which  is  quite  as  much  as  was  anticipated.    If  the 

Hank  directors  had  carried  the  rate  to  4  per  cent,  it  woidd  have  been 

essential  for  the  Bank  of  France  to  have  followed  to  some  extent.    As  it 

is^   it  is  not  supi>osed  they   will  resort  to  any  such  step,  particularly 

as  the  decrease  in   their    bullion    has    been    checked.      The  supply  of 

capita],  both  in  the  discount  market  and  at  the  Stock  Exchange,  has  aug. 

mented  since  the  Bank  alteration,  showing  that  the  effect  of  the  event  has 

been  anticipated.    At  the  same  time,  a  great  number  of  the  operators  have 

over-provided  themselves,  and  finding  the  Bank  minimum  not  as  onerous 

as  imagined,  have  re-loaned  a  portion  of  the  sums  they  borrowed.    Another 

month  will  show  whether  we  are  likely  to  have  full  quotations  in  October, 

November,  and  December. 

The  range  in  Consols  has  been  exceedingly  limited.  Only  moderate 
transactions  have  taken  place  throughout  the  month.  Speculation  is  quite 
at  a  stand.  After  dullness  in  the  early  part  of  August,  there  is  now 
increased  firmness.  The  government  broker  is  expected  shortly  to  re- 
invest  an  account  of  the  sinking  fund.  No  especial  movement  has  occurred 
in  exchequer  bills. 

Foreign  stocks  have  not  greatly  varied.  The  market  has  been  quiet, 
and  scarcely  anything  has  been  done  in  the  shape  of  business.  For  the 
majority  of  cases  prices  have  been  heavy.  Spanish  receded  greatly  at  the 
commencement  of  the  month ;  latterly  a  rather  better  feeling  lias  pre- 
vailed, the  price  having  recovered.  Mexican,  Turkish,  and  other  classes 
continue  to  manifest  dullness. 

The  railway  market  has  suddenly  become  languid,  and  prices  generally 
exhibit  a  decUne  through  the  unfavourable  prospects  of  dividends,  and  the 
termination  of  outstanding  speculative  accoimts.  The  traffics  have  been 
tolerably  good,  but  there  is  an  apprehension  that  the  average  of  expen- 
diture is  again  increasing. 

The  produce  markets  continue  dull,  and  till  after  the  season  for  recreation 
ift  over  we  are  not  likely  to  have'  much  animation.  When  relief  is  ex- 
perienced here,  there  will  be  a  corresponding  revival  in  other  trade 
d^Murtmenta. 


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THE  GRAIN  TRADE. 

As  is  Tunial  at  this  period  of  the  year,  the  state  oi  the  weather  and  the 
progress  of  the  harvest  have  had  some  little  influence  upon  the  price  of 
gram.  In  the  early  part  of  the  month  quotations  for  oeariy  all  deecrip- 
tions  advanced  from  1«.  to  25.  per  quarter,  but  towards  the  duoee  there  wis 
a  decline  to  about  the  same  extent.  Wheat  has  not  been  in  great  demand, 
and  the  supplies  of  both  home  srown  and  foreign  have  been  am|de.  Barley 
has  been  in  moderate  request  tor  the  season,  and  oats  have  chMiged  hands 
prettv  freely.  The  latest  official  quotations  were— Wheat,  48s.  6d.  per 
qr. ;  barley,  27s.  lOd, ;  and  oats,  21s.  7d.  per  qr« 

The  Oazeiie  returns  for  Sngand  and  Wales  have  been  : — 


Week  Wheat 

ending.  Ore.  sold. 

1866. 

June   24  61,039 

July    1  52,640 

„        8  66,954 

-       16  60,048      ...        43 

„       22  52^31      ...        43 


Weekly 
Avoraso. 

4i    3 

41  6 

42  5 


Duty. 


1 
1 
1 
1 
1 


The  importations  since  the  harvest  of  1804  have  been  : — 


Forty-eight  weeks  ended  17th  June  . 
Five  weeks  ended  22nd  July 


Wheat.  other  Grain. 

Cwts.  Cwte. 

16,291,028  22,058,378 
2,277,779    3,006;253 


Weeks 

LertYMT. 

40  3 
40  0 

40  9 

41  9 

42  6 


Totol. 
Cirtt. 

38M<^ 
5MP^ 


18;>69,407  25,664,681  44,»4,(^ 
And  the  weekly  averages  have  been  :-— 

Forty-eightwoeks  ended  17th  June    ...      339,000       472,000  ail/WO 

Five  weeks  ended  22nd  July 455,000       601,000  IjMfffi 

More    116,000       129,000  245,000 


STATE  OF  TBADB. 
Tbbrb  has  been  no  special  movement  in  trade.    Business  in  Lancaahiiv 
is  considered  to  be  very  steady,  and  it  is  not  probable  any  great  retivv 
will  take  place  till  subsequently  to  the  harvest. 


koticss  to  corbesposdehts. 

We  have  arranged  in  ftitore  to  inne  a  donhle  number  in  Febmaiy  and  Aiigiut»  instced  m 
formerly  in  Kar  and  November.  This  has  been  rendered  necessary  Iqr  the  greal  «**••*''; 
tho  Meetings  of  the  Bankts  and  Discoont  Companlds,  which  will  be  always  careftil^f  eoDecu^* 
in  tho  pa^es  of  the  BankerM*  Mageuin*.  We  shall  also  frLre  the  proceedings  of  we  ranoas 
Credit  and  Finance  Companies  as  they  are  more  or  less  associated  with  hsakinff,  ^ 
that  onr  subscribers  aod  readers  can  refer  to  them  without  difficulty.  Carrespnnnw*^ 
will  ploaso  forward  eommunications  addressed  to  the  Editor,  No.  8,  Sirchin  LaaBt  '^ 
scriptions  and  orderB  as  usual  to  Messrs.  Oroombrid^  and  Sons,  Paternoster  Bov,  or 
Messrs.  Waterlow  and  Sons,  Carpenters*  Hall,  London  WalL  BAincnro  avp  FniAieu* 
Akscdotss.— It  will  be  perceived  fiDm  notice  elsewhere,  that  the  Editor  of  the  Baatm 
Maparine  is  collecting  and  arranging  a  series  of  Banting  and  Financial  Aneodotaa  Aoj 
contributions  from  snbscriben  ana  readers  of  the  JTmocIm  will  be  tbankftiUy  ^^J.^* 
particularly  if  the  suUeot-matter  shall  not  have  previously  appeared  in  priati  KoUung 
personal  or  olftnaive  will  reoehre  publicity. 


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1031 


BANK  OF  FRANCE. 

DEBTOR. 

Jone  29« 

July  6. 

July  13. 

July  20. 

July  37. 

V.           c. 

V.            c. 

».         c. 

V.             0. 

».             0. 

•italof  theBank  ... 
fita  in  ii^«litfon   to 

182,600.000    0 

188,600,000    0 

182,600,000    0 

182,600,000    0 

183,500,000    0 

aoital  (Alt.  8.  Law 
r  Jane  9.  1867) 
erre  of  the  Bank 

7,041.776    2 

7,044,778    2 

7,044,776    2 

7,044,776    2 

7,044.776    2 

ad  its  braacfaea     ... 
ervein  landed  pro> 

22,106,760  U 

22,106,760  14 

22,105,780  14 

22,105,760  14 

22,106,760  14 

Brty    ...        ...       ••• 

4,000,000    0 

4^000,000    0 

4,000.000    0 

4.000,000    0 

4,000.000    0 

M  in  dxcnlation  ... 

802,608,126    0 

869,170,076    0 

884^390,026    0 

899,347,176    0 

08,722,076    0 

ik-notea    to    order 

odreceiptB  pajaUe 

^ai^ht         

8,U3,206  67 

8,719,200  13 

7,790,066  31 

7,607,769  96 

8,310.734  24 

jnt,  creditor 

170,606^294  28 
187,161,770    8 

140.407,830  36 

142.817,288  96 

143,070,306  86 

143.782,124  41 

rent  acooonta,  Facia 

188,902,292  62 

167,938,350  19 

148.076.040  61 

168,620,111    6 

branch  banka      ... 

81,276,976    0 

83,617,686    0 

80.563,339    0 

31,397.437    0 

30.561,909    0 

idezida  pagrable     ... 
xranta  and  aoadiy 

itereata        

diacoimted  the  laat 

IX  mntithit     

lM18»Me  76 

0,984.876  76 

6,867,630  76 

^083.916  75 

3,179,163  76 

622,887  12 

1,224.696  67 

1,680,916  73 

2,086,718  86 

2,414^127  82 

1,427,623  17 

1,427,623  17 

1,427,623  17 

1,427,623  17 

1,427,623  17 

plnaof  receipUnot 

iatribiited    

762,903  86 

762,993  36 

762,993  36 

762,993  36 

762,993  36 

xdiiea. 

9,886,943  16 

27.026.961    2 

17,308.110  90 

14^686.898  72 

12,126,623  23 

Total 

1,448,614,913  67 

1,486,784,358    8 

• 

1,468,076,787  66 

1,467,885,396  43 

1,486,648,011  20 

GRSDITOB. 

June  29. 

July  6. 

July  13. 

Ju?y20. 

July  27. 

\h  in  hand  and  cash 

».           c. 

r.          G. 

V.              0. 

».              0. 

».         0. 

1  the  branch  banka 
omercial  bflla  orer- 

612,901,808  34 

621,362,746  60 

498,683,812  19 

408,997,271  66 

nLerdal   btoii  dial 

267,476  10 

2,161,994  26 

600,203    2 

146,843  81 

21^200  47 

oimted-  not  yet  dne 
ranoea  on  depoaita 

274,003,610  87 
286,180,366    0 

284^613,184  91 
307,339,803    0 

287,619,278    6 
306,848,667    0 

291,749,664  46 
309,961,824    0 

296,463»954  23 
816,512,794    0 

r  bullion       

44^041,486  16 

46,716,786  16 

49.257,033  96 

63,664.686  18 

60,687,166  16 

branch  banka      ... 
on  French  public 

12,164,286    0 

12,689,066    0 

12.739,986    0 

12,880,047    0 

12,294,164    0 

pcoritiea       

16,668,800    0 

16,618.600    0 

16,462,100    0 

16,264.900    0 

16,121.600    0 

by  the  branch  banks 
on  railway  aharea 

0,947,260    0 

10,416,800    0 

10,545,900    0 

10,511,400    0 

10,364,200    0 

nd  debentures 

80^804,900    0 

81,892,600    0 

31,562,200    0 

31,424.600    0 

31,060,200    0 

bj  the  branch  banka 
on  Credit  Foncier 

20,136,800    0 

21,237,600    0 

21,715,600    0 

21,430,100    0 

21494,000  0 

onds 

616,600    0 

648,800    0 

646;»0    0 

640,800   0 

670,900    0 

l^ranchea    

.  to  the  State  (Con- 

448,000    0 

481,300    0 

601,600    0 

630,300    0 

603,eU0    0 

ention  Jane  10, 1857) 
renunent  atock  re- 

60,000.000    0 

60,000,000    0 

60.()00,000    0 

60,000,000    0 

60,000,000    0 

erve 

12,980,760  14 

13,980,760  14 

12,980,750  14 

12,980,750  14 

12.980,750  14 

dinpoeable 

Ilea     Immobilia^es 

36,667,487  91 

86,657.467  91 

36,567,487  81 

36,557,487  91 

86,557.487  01 

AW  of  June  9j  1867) 
tcl  and  ftim.oi  Bank, 

100,000,000    0 

100,000,000    0 

100,000,000    0 

100,000^000    0 

100,000.000    0 

•fbranchea 

8,413,186    0 

8,428,384    0 

8,428.384    0 

8,432^463    0 

8,487,014    0 

penaea  of  manage- 

jcnt 

4^777    6 

68,024  13 

105,432  13 

470392  16 

471,510  66 

idnea...       

17,409,148  60 

13,795,712  97 

11.019,163  16 

7,226.066  25 

9,608,180  81 

Total   ...       .« 

1,442,614^913  67 

1,486,784^368    8 

1,406,076,787  66 

1,467,886,396  48 

1,4B6,648,0U  20 

Digitized  by  LjOOQ IC 


J 


FLUCTUATIONS  IN  ENGLISH  AND 
ItAELWAY  SHAI 


English  Funds. 

Consols 

•••        ••• 

Exchequer  Bills 

FoEEiGN  Stocks. 

^r^ili^        

Buenos  Ayres 

Chilian  

Dutch  2J  per  cents.   !!." 

Mexican  

Peruvian  4j  per  centeV 

Russian  

Spanish  ...         [][        [[ 

Turkish  6  per  cents. 

Ditto  4  per  cents.  ." 

Railway  Shares. 

Bnghton         

Caledonian      

Great  Ejustern  [,[ 

Great  Northern 

Great  Western 

Lancashire  and  Yorkshire 

London  and  North  Western!.".' 

Midland 

North  Stafforcisiiire  !.'.' 

South  Eastern 

South  Western 

York,  Newcastle,  and  Berwick 

York  and  North  Midland    ... 
iiiast  lutlian     

Northern  of  France    .*.'! 


Price  on 
Jane  28. 


—    89|  to  DOJ 

I       xd 
•••   par  to  4pm 


CREDIT,  FINANCE  AND  DISCOt 


Society  (Lin,  ,     *u>ancuil 


Share.    Pnjil. 


l.it(Kt 

Pricos. 


Imperial  lA 
^  (Lim.)... 
In  tenia  tiona 
Joint  iStock 
Liuid  Credit 
L;iM(I  Sojmrii 
London    Kin 

tion  (Lini.j 
London  iforc 
llanritius  L:i 

AfrcTicy  (U 

OrieiitiU  Finn 
Ottoman  Fin; 

tion  (Lim.) 
Society  Finan 

(Lim.)... 
South  African 

Tn  vestment 


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1083 


JOINT-STOCK  BANKS. 


London 

fflitf*. 

Paid. 

PriM* 

I 

A 

A 

60 

3S 

57 

bo 

10 

6i 

IfO 

25 

29 

im 

20 

23 

JO 

m 

6 
12* 

.n 

GO 

16 

Hi 

30 

6 

40 

40 

75 

40 

40 

73 

^ 

25 

8i 

h<o 

50 

142 

2*) 

8 

6| 

10 

25 

2t)i 

&-> 

7k 

6 

JO 

10 

17 

60 

26 

44 

iO 

10 

e 

&0 

50 

47 

20 


20 


20       20       26i 


25   25 

47 

KO   50 

110 

UK)   26 

41 

20   20 

... 

25   25 

m 

10    4 

lot 

10)   25 

m 

li)0   16 

bO         6 

H 

20    5 

4t 

U        10 

12 

2f)   30 

S0| 

50   20 

16 

&i   16 

111 

1-n. 

>   25 

17 

Kw 

»   26 

17 

H.» 

1   20 

12 

lot 

>   20 

291 

n 

^   10 

16i 

2 

B   25 

27 

2^ 

1    5 

5 

3tl 

»    4 

H 

IpRTidrttt 
Vhv.  Paid    \aUsI 
Pii<<«« 


London  Bank  of  Mexico  and 

South  America  (Limited) 
London  Bank  of  Scotland 

(Lim.)  

London  and  Brazilian  Bank 
London,  Buenos  Ayres  and 
River  Plate,  Limited 
Ditto,    Sew,    issued    at 

lipm 

London  Chartered  of  Australia 
Lond')u  and  Couuty  Bank  ... 
London,     Hainhitri^,     Cont. 

Kxcliange  ( Lim  ) 

Lotid'm  Joint  Stock  Bank  ... 
Loudon  >t  South  African  Bk. 
I  oudon  and  Suuih  Wedtcrn 

(Liraitodt      

Ditio,  ditto.    New 

London  and  Venezuela  (Lim.) 
London  A  Westminster  Bank 
Merchant  Bank  (Limited)  ... 
Mercantile  Exchange  (Lim.) 
MetropoUtan  and  ^ovincial 
Bank,  Limited        ...        ... 

Ditto,  Ne\T  

Midland  Bank  (Limited)    ... 

National  Bank. 

Ditto,  New  

National  of  Liverpool  (Lim.) 
National  Provincial  Bank  of 

Ifngiand        

Ditto,  2d  and  3d  iasuea ... 

New  South  Wales     

New  Zealand  Bank  Corpora- 
tion (Limited) 

Ditto.    New    

North  Western  

Oriental  Bank 

Provincia*    Banking  Corpo- 
ration  

Ditto,  ditto 

Provincial  Bank  of  Ireland... 

Ditto  New  

Scinde,  Pni\jaab  and  Delhi 

(Limited)      

Ditto,  issued  at  2  pm. 

South  Aiutralian      

Standard  of  Britiah  Africa 

(Limited)      

Do.  New,  iasaed  at  6  pm. 
Union  Bank  of  Australia  ... 
Dnion  Bank  of  Ireland,  lim. 
Union  Bank  of  liOndon      ••• 


50       121     10| 


100 

13 

100 

40 

m 

100 

40 

4S 

25 

10 

13 

i    20 

20 

2  If 

60 

20 

76 

100 

19 

60 

16 

m 

'M 

20 

U 

100 

20 

m 

100 

17* 

171 

60 

12* 

7 

100 

20 

u 

100 

26 

3Ji 

60 

10 

H 

100 

20 

Uk 

im 

15 

10* 

100 

20 

\H 

60 

30 

HW 

60 

25 

1>4 

100 

10 

17 

100 

42 

15.H 

20 

12 

-4tr 

20 

20 

•41 

10 

1 

1 

1.) 

1 

20 

7* 

ii 

25 

26 

fi^l 

50 
60 

71 
10 

*4 

100 

26 

87 

10 

10 

♦.. 

20 

10 

«* 

20 

2 

26 

25 

36* 

100 

25 

iri 

100 

10 

6 

25 

26 

5ft 

100 

22 

17 

50 

16 

61| 

79 


Digitized  by 


I 


G< 


23anfe  of  (BiiglanU  ©Ht 

Account,  pursuant  to  the  Act  7th  and  8th  of  Victoria,  ca 

ISSUE  DKPART3d 


1H6:>. 
Juni>  '2i, 

Jul 

Not4;8  issued         

30,072.9So 

£ 
29.77 

Oovemment  debt 

Other  gecurities 

i}o\d  coin  ami  bullion    ... 
Sliver  bullion       

•••        *•' 

ll.Ol.i.lCHl 
15,422,i>S5 

11,01 
15,12 

30,072. >*s5 

2f»,77 

BANKING  DRPARl 

of  Nutiunal 

June  *8. 

Jul3 

Proprietors*  capital 
Rent 

PuMlC    depO«iitS    dnchvllnc 
8.'ivin"»  l!)inl<K.  C.>inui;s<.inii.T» 
Doljt.  fiini  D.\icK'ad  AccouuUj 

Other  Dcpo:»ita     

Bcvon  day  and  other  bills 

£' 

U,:.5:».000 

3.2:Jl,()i.>9 
10,4:>7.y^l 

13,T24.P*9 
■151,7k) 

£ 

U.5:. 

9,31 

41) 

4',4I7,'»21 

42.13 

Government     Secnritiea     (including 

Dead  Wciuht  Annuities)      

Other  Secuintics 

Kotea  

Gold  and  Silver  coin     


in.wo,n?5  10.39 

2J.<W»,<.75  I  V^..iL* 

h,v^i;.i40  I  7,.V) 

U^4.(»31   I  91 


42.447,921  ,    42,13 


1 

,1 

Amsterdam,  short 

*', 

Ditto      3  rn<  nths 

i 

Rottord:im.  diiio... 

' 

Antwerp,  ditto     ... 

1 

Rn:bscl8,  ditto 

•1. 

Haniburff.  ditto   ... 

rnris.  short   

PariH,  3  months  ... 

1 

Marsoillea,  ditto  ... 

• 

Fran!; fort,  ditto   ... 

■» 

Vienna,  ditto        ... 

1 

Trieste,  ditto 

PctiTH^r.rtrh,  ditto 

T 

Mndrid.  (]itto 

Cfuiiz,  ditto   

• 

Ie«hom,  ditto     ... 

Milnn  ..          

Genoa,  dittr^ 

' 

Nai)les,  ditto 

Palermo,  ditto 

• 

Messina,  ditto 

) 

Lisbon 

.1 

Oporto 

1 

THE  EXCHA: 


F-^reicm  Gold  in  Bars  (Stanlard) 

M-xican  Ih  lla^H  

Bilver  in  Barn  (8  tan  lard) 


June  30. 


11  18 

II  19} 

11  h>i 

25  45 


% 


13 

2.5  2: 
25  4-Ji 
2o  4u 

1201 

11  20 

11  22i 

31t 

48 

4S* 

23  f>6 

25  65 

25  55 

25  55 

25  65 

25  55 

6U 

61J 


Julj 


11 
12 
12 
25 
25 
13 
25 
25 
25 

120 

11  : 

11  : 

31  i 

44 

4^i 

25  I 

25  I 

25  i 

25  I 

25  i 

25  C 

flj 

61i 


PRICES  OF  BinJ 


f 


PcrOa. 
£  8.  d. 
3  17    9 
0    0    0 
0    0    0 


PcrC 
£  s.  ( 
8  17 
0    4  1 
0    6 


Digit! 


ized  by  Google 


ankers'  223trfclp  Cirnilation  littiinis!* 

the  Act  7  Sf  B  Victaria^  c.  32;  extracted  front  the  ho%uos  Gazisttk. 

PRIVATE    BANKS. 


E  OF  B.\NK, 


AVKHAUK  AMOUNT. 


Ilk „.,, 

M  Bank || 

[  Bii^^teswade  Hank  .*j, 

Bttfik J;l 

lik 

I  Oxforl-slilre  Bank   „J| 
k— Cliivpoii8  tind  Co,...j| 

k — Gee  and  Co...., L 

rBATik J 

k 


1  Bridgnorth  Biiuk    ,.., 

■  Hat)k,«.... ...^J 

ull'oik  Bank I 

nk I 

d  Bunk    .„• : 

i  L€i<^liton  BtTKzard  Bk. 
I  Bk,— Lto/d8  &.  Co-  .., 

Bunk   ..• 

lion  D«ink   , 

ind  DrilfieM  Bank 

Itnund^s  Bjink,,.,. 

Bk,— Mortlock  &  Cti,!i 
«nd  Cambridgeshire  Bk.  | 

Bnuk   I 

BAnk I 

ink J 

Hiuik !• 

ind  Esi^ex  Bank. 

Ilk— Tweed  J  &  Co. 

fttik  ., ..,....* 

Kxuter .♦....,.. 

ik— AJcocks  &  Co. 

Hd  Bank 

b— Messra,  Evans  &  Co.] 
k— Smith  and  Co.  ».. 

Bank 

1  Wiltshire  Bank    ».. 

"and  Retford  Bank'' 


i^nnk     « ' 

^.^Uobins&Co.  I 
il;^Bow«.T  &  Co.  I 
iHij»'sStortfordBk,l 


^^^^Hiirdv  And  Co.. 
i-apon-IluB  Bank 
'    ^rnA^  County  Bmilc 

I    ., 

irc.  Bitchin  Bunk    » 

«nk„„.....„ 


£ 

I  iM\  I 
48,4  &  i  I 

17,09c 
75,o6<^| 
i5»i6i 
10,0:8 
48.^77 

19,657 
Si,}6i 
43*457 

68,171 

J3.7V4 

»i.745 

3,iCl 

15.74'« 
49,9 1  rv 

Ji3»f97- 

4«*,7«^4' 
49,^69 

12,045 

ii,ci7! 

77^541 

9»3»7 , 

4»*304! 
i7.i57| 
20,674 
10,657 
77.400^ 

10/64 
48,807 

I I  i,i8o 
5309^: 
69.<537| 
37,*'94l 
i4,iOi 

6,681 

6,3  iz 

»4,fi4 

30.37- 

i<J*979 

5*778 
JS,7«4 
21.901 


I :» 14c 
10, 765 

i'j.74t 

;6.i44 
15,1*6 
7o,ii7 
14,1*9 

<5,785 
' s . 340 

i5.4'>7 
47*446 

-4'*^°y 

l9,6it 
33.118 
4.4*7 
46,243 
18,4^7 

11,4*^ 
3,061 

i»i73i 
4o*7«' 
20,  iM 
141843 
3*040 
17. l*"*? 
30,075 
i5,9«t 

3»^V5 
25,819 
65,870 

7.'3'' 

9»5J9 

So^oiO 

6,0i<> 
10,216 

78.977 
6,i7» 
36,980 

77. cvS 
5 1  o  J 1 
38,610 

19.4^9 

5»  »^o5 

4 1 497 

10^745 

^4*945 

33r5»o 

4.863 

3a ♦909 

»7»44« 


11   786 

to,  7 1  3 
i6,o<s» 

3i57»5 
a:,s«o 
15,86^ 
67i9'9 
14.019 

6,900 

18.045 
i4'0l* 

l».244 

46.9-V 
14*081 
19,700 

31'7?7 

3.8>*  I 
45.75«*  ! 
I7.9»» 
tl.i*»7 

i«  9'4 

39.957 
16.153 
I4f9«^4 

3,073 
17.83<^ 
29,8^<^ 
»6,4i5 

3*<^VJ 

14-975 

68.h''0 

I     7,468 

9,9^8 
18,791 
16.C43 

6,031 
io.0(;8 
63.807 
8*, 945 

6,  I0£ 
35.481 
76,501 
50.939 

3».&«5 
19,264 

5.5H 
5.374 
4.170 
10,176 
14,684 

»7.5^<^ 
3i»86i 

4.790 
J  3, 601 
*7i507 


.lnnt»  ir      Junuttl, 


£ 
I l,Ot J 

•1,939 

I4.ft'>3 

3,57^^ 

»5.54o 

67,130 
14, i?'* 

61845 
lfi,l8& 
^5,  103 
iS,  14^ 
46,460 
15' 141 
19,7*'^ 
33.9»«> 

3»4»5 
43^787 
i6*f  a6 
11,68^ 

1.8^6 

11.4^6 

39 iT:^ 
16,1.8 

i5»i4l 
i,8'.7 

\7M^ 

29.040 

14,110 

4i4'^» 

I4.<45 

6H,7I5 

7*153 

8*9*<5 

*7i4*'» 
a6,o3o 

5*97^ 
to, 063 

65*4^4 

8^1 C29 

5,606 

34.5»5 

7i»*^5 
I  ^0,851 

I  38»3^>3 

I9**»5 

I     5.473 

4**44 
10,171 

14»»29 
t7,ti8 

3^»n3 

33.389 

t7034 


£ 

11,179 
4i,5";>4 
U»9-9 

31465 
i6,9y7 
•5i335 
71.19" 
13.4*5 

6,850 
18,176 
15,281 

47,913 
-6,Oi5 
19,5*8 
3J'5»5 
3,ni4' 
41,915 

16,957 
J 1 , 7.-9 

2|9»5 

li,f86 

3'*,179 
25.*^55 
H*5'7 

«7.3^5 

18,480 

24.47» 

4i5'^ 

r  i.*<50 

66,!565 

7t877 

8,797 

af.3«^4 

a5i57^ 

5,930 

to,:79 

65.$»'* 

83*147 

5.47- 

34*309 

73. «C)* 

51.777 

37.  "^94 

i^,9V4 

5*499 

5.003 

4.44t 

«o,H7 

13*840 

t7,it*8 

31.430 

4.755 

33*c*9* 

I7,ii0 


Digitized  by* 


1036 


WEEKLY   RETURNS   OV   RAK 


NAME  OP  B\NK. 


Anthor- 
ixed 
Ii»sue. 


57  Ipswich  &  Needhjim  Market  Bank 

58  Kentish  Bank — Mercer  &  Co,   ... 

59  Kindlon  and  Kathiursiiirc  Bank... 

6c  Kuareslioroii^li  GUI  Bank  

61   KeniUil  Bank     

6z  I/()ii};to-i  StatfoniHliire  Bank 

63  I^ceds  Bank  

04  I^c(U  Union  Bank 

6^  Leiccsicr  Bank 

66  Lewes  Old  liank  

67  Lincoln  Bank  

68  Llandovery  Bank&  LlandiloBank 

69  Lonj^hboron^h  Bank   

70  Lyniirifrton  Bank 

71  Lynn  He^isand  LincolnsliireBank 
f2  Lynn  Regis  and  Norfolk  Bank 

73  ^iacclestteld  Bank , 

74  Maiinini^tree  Bank , 

75  Merionethshire  Bank   , 

76  Miners'  Bank    , 

*  77  Monmouthshire  Agricultural  and 

Commercial  Bank 

78  Monmouth  Old  Bank 

79  Newark  Bank  

«o  Newark  and  Slealord  Bank   .. 

81  Newbury  Baiik .^„ 

8«  Newmarket  Bank. 

83  Norwich  Crown  Bank  and  Norfolk 

and  Sulfolk  Bank  

84  Norwich  and  Norfolk  Bank    .. 
8«  Ni)rtin«:hAm  &  Nottiiii:liHni»h.Bk. 

86  Nav.il  Bunk,  Plymouth   

87  New  Sjirum  Bk. — Pinckneyi»,Bro8. 

88  Nottint;liam  Bank    

89  Oswestrv  I?ank 

90  Oxford  Old  Bank 

9«   Old  Bank,  Ton l)rid«re 

9>  Oxfordshire  Wirney  Bank 

93  Pease's  Old  B^nk,  Hull  

94  Penzance  Bank     

95  Pembrokeshire  Bank   

96  Heading  Bank — •Simonds&Co. 

97  Reading  Hk.— stcphetm.BUndyltCo. 

98  Richmond  Bank,  Yorkshire 

99  Rochdale  Bank    

100  Royston  Bank 

101  Rupbv  Bank 

102  Rye  Bank 

»03  Saffron  Waldcn  &  North  Essex  Bk. 

104  Salop  Bank 

105  Scarborough  Old  Bank    

Jo6  Shrewsbury  Old  Bank 

>07  Sittinirboarnc  and  Milton  Bank  . 

1 38  Southampton  Town  &  ConntjBk. 

109  Southwell  Bank   

s  10  Southampton  and  Hampshire  Bk. 

Ill  StaftbrdOId  Bank  

I  la  Stamford  and  Rutland  Bank 

113  Shrewsbury  and  Welsh  Pool  Bank 

114  Taunton  Bank 

i«5  Tavistock  Bank  


Digitized  by  ^OOQ IC 


WEEKLY    RETUBX9   OF    BANKS    OF     ISSITB, 


1037 


ifE  OF  BAJiK. 


rB»nk 

iiid  Devonsliire  Bitiik,.. 
e  Aiid  Ueuvrirri:  Bunk,. 
\k  mid  Clit;slmiii  Bunk.. 

OliJ  Bflhk «„..„. 

»1,  Coriiw^lJ    ., 

Old  Bank     

rtJ  Bmilr 

itid  Wurwickfthire  Uniik 
I  ItAitk,  Si>nierii«t  ... 

up  B»nk  ...,,,* «,. 

l«l  Bunk    «.„. 

r,  A  irosford  &  AhoflBk, 

lOid  Bttiik 

b  Arid  Dcrbypliire  Bk. 
oijil  LincoltisMro  Barik 

ibe  Biiitk ,,„. 

OUl  Bank 

i.lik.^k.  &W.  Fryer 
and  Suffolk  BHfik  ...... 

Norlolk.  &  Suflulk  Bk. 


AuUii>r* 


AVERAGE  AMOUNT, 


£        1 
r  0,02  6 
«3t47C 

iTfOO^II 

17,064 

30^504 

Mifi 

4^15* 
14,^58 

57*^0  5 

7,601 

87»44» 
11,667 
5j,o6c 

4^387 


jQliflS. 

June  10. 

JUDfi  17, 

Jun«  24. 

£ 

£ 

£ 

£ 

7,6C3 

r»j!78 

7«4»o 

7i6io 

9,6^8 

9»»VO 

»,8u 

9,066 

II,. 89 

11,646 

1 1,675 

ii,i3« 

12,717 

i*»494 

11.701 

1 J .  I  ^  3 

6,  15" 

6,048 

5M6 

5.^84 

U.9'5 

14,013 

13.0S9 

U»»48 

7t8iO 

7,7^8 

8,171 

S,iC8 

5.a«8 

^'f 

5,111 

5-354 

»6,^7i 

l6,ig<; 

'''♦35^ 

"5*717 

1,855 

J, 873 

«i955 

*i54> 

40*401 

4i|i^y 

40«  i6i 

38,047 

»3.«os 

"4»o»l 

14, 114 

'3w40 

9.110 

V.1^8 

10,031 

J0.34< 

i5.47<i 

14*145 

ij.631 

13,130 

35,16a 

35.473 

?4.57j 

34.7C3 

i<^.73* 

J6»8i5 

36.555 

37. 89* 

4.«25 

3.7H 

3.575 

3»3v3 

44»i6l» 

46. cot 

45.C83 

45..*  56 

7.5*5 

8,109 

«.345 

8.5;, 

35,680 

^6»586 

36,155 

35.630 

7,^^ 

7,418 

7.54** 

7f  138 

40,0,1 

38,808 

37,S*i 

36,00* 

JOINT  STOCK  BANKS. 

urmorland  „ 

nking  Company 
hking  CompflTij' 


rict  Banking  Compam 

tteliavef) .,, 

ttimcivm]  BAiikin^  Co. 
■  ■  r  ,iiri  d  ^taffbrd^hin 

_'  To 

.  llerbvsh  Bk,  Co 
Union  haiikiiij;  Co  „ 
iWarwirkshirt'Bk.Co. 
tiofi  BaTjkinj;;Com|)an) 
louce^tcr  Bniikin^  Co. 
imhcrland  BjinkingCo. 
and  JHstrici  B«iik  .. 
cai  Bromwk'h  Bk.  Co. 
>crby!j]iire  Banking  Co. 
Mfit/joiTiifetfH-kBk.Co. 
ire  Banking  Conipan^> 

t  Stock  Bank.,.. .*j 

1  Banking  Company., 
B  Compnny    .*..*...... 

'••■''■  T^nnking  Co. 
I  Union  Bk. 

Vmy  . .. 

id  ClaroBk.  Co 
_'  Con^pjtny  

-C«.. 

miM   Vi  tirwick- 

Cn 

:irv  I'liiiik  ., 

i\nk.. 

tig  Co. 

ji  Knglttiid 


9,56; 
49/39- 

9*4  ^^ 
31,681 
10,084 

^0,701 
10,411 

16,25 

44.55* 
15,61c 

» 9.972 
37/v' 
10,09  * 
i6,(34 

18,534 

37.354 

» 3.733 
44^*37 

'8,05  V 

64t3^ » 
86,060 
51*620 

•3.875 

10,lic 

49,477 

44M71 

63,939 


12,046 
8,6c5 

46 > 953 

7,604 

»9»499 
19.841 


51,460 
9,495 
35»,^84 
13  845 
I  a ,  1 25 
96,044 

lO.COl 
24 , «  2  I 

18,983 

i».743 

16,489 
19,770 

12,711 
31,097 

-5.745 
59.7*3 
59,co4 

4U337 

9.563 

9,283 

27,187 
16,081; 

42^584 
3S,5ii» 


ix,9iir 

8,l6i 
46.8CI 

8,191 

1°, 792 

io,a8i 


49*340 
9.590 
35.985 
»3*=f5 
12, 01c 
95. 8c 6 
25,070 

'9.4'4 
25,167 

'9.173 
13.499 
'34.  U4 
16,005 
3«,J09 
30,872 
iz,456 
31,710 

1,509 
16,436 

58.03* 

57.19' 

44»475 

9-059 

8.V99 

»7,85S 

^5.565 

4«*t,7 10 

381O85 


If, 791 

8  155 
47,  19*7 

7,737 
30,055 
10,300 

49,545 

10,196 
35^991 
13,068 
12,510 
93,66c 
36    169 

20,C9i 

»4*04l 

t9,;7< 
i6. i6o 

"34.195 
16,200 

33'4ai 

27.36J 
il,7l8 
i'.3C9 
It  484 
27*459 
55*S^9 
58,3'! 
47i48i 

8,611 

9, 012 

26.J14 

*5.o*9 

4*^.^*7 

37^958 


M,94i 

8  715 
46.7»0 

8,493 
28,879 

*9.735 

4<5,943 
•0,310 

3Ji39* 
<3.i09 
•»»835 
93.^^71 
i«.496 
'9,787 

13-951 

19,144 

17,51* 
ij6,c89 

»6,I75 
>4,c67 

17.501 
«3.47o 
33.  i*^o 
1.485 
i>.9;o 

53,fi69 
56,  294. 

48.577 

^.585 
9.190 

i7,8|i 

Ml  197 

^«i.«94 

38,604 


_:d  by  ^ 


1038 


WEEKLY   RBTURNS   O?   BA> 


NAME  OP  BANK. 


35  Nartbftmptonsliirc  Union  Bank   ... 

36  Northaniptoiisliire  Hjinkln^;  Co.  ... 

37  North  jind  South  Wales  Bank 

38  Piire*8  Leicestershire  Bunking  Co... 

39  Sa«l«Ucw(>rth  Banking  Company  .., 

40  Slicftiehl  Bankitig  Company , 

41  Stamforil.Spal  ill  11^  &  Boston  Bk. Co 

42  Stuckey's  Blinking  Company    , 

43  Shropshire  Banking  Conipany , 

44  Stourhritlge  and  Kidderminster  Bk 
45,  Siielticld  and  ilaliamshire  Bank  .. 

46  ShelViehl  &Bothcrham  Jt. Stock  Bk. 

47  Swaledale  and  Wensleydale  Bank.. 

48  Wolverhampton  &  StatVordsh.  Bk.. 

49  Wakefield  and  Barnsley  Union  Bk. 

50  Whitehaven  Joint  Stock  Bn nk     .. 

51  Warwick  and  Leamington  Bk.  Co 

52  WeRtofKng.&  S.  Wales  DistnctBk 

53  Wilts  &  Dorset  Banking  Co?np«n\ 
5  J.  West  liidinp  Union  Banking  Co.... 

55  Whitchnrcli  and  Kllesmere  Bk.  Co. 

56  Worcester  City  and  County  Bk.Co. 

57  York  Union  Banking  Company  .. 

58  York  City  and  County  Banking  Co 

59  Yorkshire  Banking  Company 


£      I 

84,35^'' 

26,401  I 

63-V5'i 

s9,;ooi 
'8,122' 
35*84 »' 
55*72' 
35<5,97^   ' 
I  4/%95» 
56,830 

3'3»5-4 

5^*49^  II 

54,372| 

35.378  , 

14,604 

3i»9'6 

37,124 

83*5.^^1 
76,162; 

34.0^9 
7,475 
6,848  j 

94,^9511 


JrisT)  mHi  ^tottl)  Cirn 

Average  Circulation,  and  Coin  hefd  hy  the  Iriri 
weeks  endini)  Saturday,  tht  2\th 

IRISH    BA 


NAMK  or  BANK. 


Aiithorieed 
CircuUlion. 


Bank  of  Ireland 3,738,428 

Frovincial  Bank  of  Ireland  I     92;, 66*/ 

Belfast  Bank    

Northern  Bank  , 

Ulster  Bank , 

The  National  Bank 

Totals  (Irish  Banks) 


281,61 i{ 
243,44c 
3>».079 
852.269 


Avengi 


s 


Bank  of  Scotland    

Royal  Bank  of  Scotland    ... 

British  Linen  Company 

Commercial  Bk.  of  Scotland 
National  Bank  of  Scotland.. 
Union  Bank  of  Scotland  ... 
Aberdeen  Town  and  Co.  Bk.j 
North  of  Scotland  Bk.  Co... 
Clydesdale  Banking  Co.   ...' 

City  of  Glas-ow  Bank  | 

Caledonian  Banking  Co.   ...' 

Central  Bank  of  Scotland... | 

ToTALB  (Scotch  Banks)...! 


6,354,494i-»y3/,0! 

COTGH    Bi 

3O0,485|[     180,2: 
216,4511 
438.0241 
374i88c. 

297,024| 

454.34^' 

70,133,' 

"54»3i9; 

274,321; 

72/9^»l 

53»  434|| 


223, 7^ 
189,8; 
199, 6( 

173»«- 
210, n 

75,55 

I28,0.( 

138, 6g 

131,24 

25,4'' 

27,74 

2,749.^7>  '»»704,2j 


Digitized  by  LjOOQIC 


CIRCULATION    RETURNS.'  103 J 

IT  OF    WEEKLY  RETURNS   OP  BANKS    OF  ISSUE. 


;Fixerl  IsLiuos.i      Jime  3.      I     June  10.     I     Jano  17. 
nU  „.. £4,isjc^09i  |£2,895.8i4  £;,ftr«9,773  '£i,8"5,oS2 


7,4'5i4+8  1   5/5»i5»3!    5M5,^90  \   5,604,589 


June  24. 
£i,93S.4i  ( 


5'674»04i 


"SrtnlafioTi  oF  tlieso  Banks  for 
Jtmc  :!itJti ;— 

rJ.S9f5,772 


BAntLH  endiDg  a:^ 

E-Rtg.SSO 

of  tbefthorf^  with  lUe  Hctuma 
jsr  Mjiy  2^7 Lii  Sa.^t,  ittsLuvvo: — 
noitfe  of    I'nvato 

-,     £103,774 
>iAA  of  JoUiE^St^3ck 

100,783 


\hQ  mQnth,., 


i.  JO  J,  55  7 


And   aa   compared  with  the  month   endm;j 
June  2oth,  186i,  it  .shows:  — 
A  decreai^e   in  the  noL03  of   Private 

liankrt,  of £191,020 

A  derrciise  in  the  notes  of  Joint-Stock 

Banks,  of OVS^l 


Totnl  decrfa^f,  as  compnrcd  with  the 

same  period  of  last  y«ar        £?7fl,l.^ 

The  tollovvinjf  i-*  thy  coinnarativo  state  of  Liiti 

eircuhitioii  as  rct'^irds  the  tixetl  ii^s'ics:  — 

The    Private    Banka   aie  below  their 
fixed  issues         £1,292,310 

Tbo  Joint-Stock  Banks  are  below  their 
fixed  issues         479,23;> 


Total  BELOW  their  fixed  issues 


.£1,771,55^ 


LY  OF  IRISn  &  SCOTCH  RETURNS  TO  JUNE  24.  1865. 


""irfritntiQn  of  thi?  TrL-,h  and 
lit)  Ui^■^t  wr:ek4  di'iihif  June 
l^'or^ler.  c^ve  iho  loUovvinu:  na 
r  Circ  itLLiiun  ul  Lhe^  Uauks 
rith,  viz,  : 
►JthoIn-^hBanka  £1,7B2,20S 
"jI  Uia  Scutch  B<4uks  1,-^57, 7<^8 


Ation  of  these  bank  1; 

1 ,,...£10,319,914 

se  araouTitfl  with  tho  Returns 
;:;i7[k.Mav  lii:!*t,  ihevKhow — 
jiiliiniuflri^h  TMrikis^HH/iH 
);iUuaoif  ScoLchliu.uk.'i  3:-),2^ 

ihe  month   ...,„...   i;jJ7,iS0 

d    with   the  month  ending 

atiuD  of  Irish  Banks  £2«J.294 
uJ4uuuf  Sc4Jtch  biUiKA  41.H70 


he  je&r  .»... £3^,964 


The  fixed  issues  of  the  Irish  and  Scotch  BanVs 
at  the  prose  at  time  ni-o  given  in  the  liunkUj 
Almanac,  as  follows: — 

H  Haii.vs  in  Ireland,  allowed  to  issne  ..  £6,3."4.1'>1 
12  Banks  in  Scotland,  allowed  to  issue      2,7il>,J7J 


18  Banks  in  all,  allowed  to  issue    £9,l03,7+i,> 

The  followint?  appears,  thcfeforo,  to  be  the 
compnrativc  stiitc  ol  the  circulation: — 
Irisli  BaiikHare  below  tlioir  ti\e<l  issue      £502.2Sr: 
Scotch  Banks  are  above  theii-  fixed  issue  l.aos,  WS 

Total  above  the  fixed  issue  £l,2i6,iia 

The  amounts  of  Gold  and  Silver  held  at  the 
head  olficesof  the  several  banks,  during  the  piiit 
month,  have  boon  as  f«jllnws: — 
Gold  and  Silverlield  bytiio  Irish  Banks  £2,076.4^ 
Goldand  Silver  held  by  the  ScotchBanks  2,4UO,7  Vi 

Total  of  Gold  and  Silver  Coin £4,r>67,L:0 

Bein?  a  decrease  of  £2S.4Id  on  the  part  of  thj' 
Irish  Bankn.   and  a  decrease  of  £^,4-49  on  t  id 

1)artof  the  Scotch  Bniik*<,  on  the  several  atnoonu 
leld  by  them  durin;^  the  preceding  month. 


TION  OF  THE  UNITED  KINGDOM  TO  JUNE  24.  1865. 

the  iitata  of  the  Nutc  Circulation  of  the  United  Kingdom  for  the  month  ending' 

far  the  Manth  endim!;  21th  June,  aa  compared  with  the  previous  month  :— 

Juue2l.      I    Increase. 
£2^>,y77,n2  — 

2,yy«.773  — 


yn.Va.  ending  Jtme  21) 


May  27. 
£2l,:iol,5»7 
3,<HH»,.>W 
2,^47,871 


2,747,0^i 


Decrease. 

£374.435 

103,774 

10J,783 

C7'S,992 
39,  .'45 
168,241       * 

£37,627,364        £36,840,880  |  —  786,478 

of  the  month  cmiintf  June  2ith,  1861,  with  the  month  ending  June  24th,  1965, 
the  Bank  of  Etiu'laud  circulation  of  £iil2,078.  a  demotic  in  I'rivate  Hanks  ot 
*e  in  Joibt-Slock  Uaoks  of  £:*4  554;  being  a  total  iuerentc  in  Ens^land  of  £23j,89^  ■ 
ber«  iA  an  iacrrtiM/r  of  £44,670;  and  in  Ireland  an  incrfium  of  £26^1.291.  '1  hus 
«ith  ending  2ith  Jmup,  as  compiired  with  the  same  peri<3d  last  year,  presents  uu 
n  Smifltind,  and  nu  increase  of  1^41,862  in  the  l/HileU  Kmqdom. 
lollion  in  tlie  Bank  of  Kntrland,  for  the  month  endiiv^  June  21st,  gives  an 
iM^  decfirtniceiu  uf  £10,0()9.921.  On  a  comparison  of  this  with  the  Return  U^v 
f  mil,  QubTt*  apfHtifl  rs  to  be  au  increase  of  Xi,Ul3,Go7  j  and  an  incretue  of  £1,830,132 
I  fl«XD«  pcnrxl  lui't  ;:>i  ear. 

ic  h«l4  hj  the  Bajiks  in  Scotland  and  Ireland  during  the  month  ending  34th 
>!  being  a  decrett**  of  £32,S64  as  compared  with  the  Return  of  the  previoua 
«  Of  £130,268  PS  compared  iMth  the  corresponding  period  last  year. 

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Whl«rlov  ud  Son,  Fiinton,  Owpwton'  HftX 

Digitized  by  LjOOQIC 


THE  BANKERS'  MAGAME, 

AND 


BEPTSHBSB,  1866. 


STOCK  EXCHANGE  ADMINISTRATION. 
It  is  only  natural  that  the  investing  public  should  take  a  lively 
interest  in  the  action  of  the  Stock  Exchange  Committee.  A 
quotation  in  the  official  lists  may  be  no  guarantee  for  the 
soundness  of  an  undertaking,  but  it  is  a  certificate  which  to 
some  extent  vouches  the  bona  fides  of  promoters  and  managing 
directors.  It  shows  that  certain  conditions  have  been  fulfilled, 
certain  preliminaries  observed,  and  certain  hostages  given,  by 
those  inspiring  genii  who  fingered  the  promotion  money,  pub- 
lished the  prospectus,  and  settled  the  basis  of  the  company.  It 
tells  us  that  the  capital  subscribed  is  ostensibly  at  least  in  a 
certain  ratio  to  the  entire  amount  required.  It  assures  creditors 
that  a  fair  proportion  of  the  ten  or  twenty  thousand  shares  into 
which  the  capital  is  divided  have  been  taken  up.  It  keeps  the 
company's  name  before  the  eyes  of  every  man  who  looks  at  the 
money  article,  and  it  tempts  timid  speculators  and  wary  inves- 
tors, because  of  the  greater  facility  of  realisation  which  recog- 
nition by  the  magnates  of  Capel  Court  undoubtedly  affords. 
Nor  can  it  be  said  that  the  powers  of  the  Stock  Exchange 
Committee  are  often  exercised  otherwise  than  wisely  and  weU. 
Indeed,  if  their  conduct  were  continually  or  frequently  open  to 
reproach,  they  would  not  long  remain  invested  with  their 
quasi-judicial  functions.  The  public  are  not  so  fond  of  irrespon- 
sible authority  as  to  endure  continued  control  of  impoil^nt 
interests  by  men  whose  bona  fides  was  not  above  suspicion. 
John  Bull  is  constitutionally  impatient  of  unreasonable  re- 
straints' and  doubtful  dealings,  nor  does  he  become  at  all  more 
submissive  when  the  restraints  are  imposed  upon  his  mercantile 
VOL.  xxv.  80 


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1042  Stock  Exchange  Administration. 

IranRactioii?:,  and  the  dealings  injuriously  affect  his  hreeohes 
poL'ketR.  To  say,  therefore,  that  he  allows  a  seK-elected  and 
irresponsible  !><xly  to  meddle  with  his  investments,  is  to  say  in 
effect  thi\t  in  this,  as  in  many  other  English  institutions,  effiiienoy 
in  iirattiTO  atones  for  deficiency  in  theory.  The  rules  of  ih^^ 
Stwk  Exchiinge  may  be  arbitrary,  but  their  operation  is  in  tLe 
main  sahitary.  The  constitution  of  the  committee  may  be  hiA 
ill  prineiplci  but  its  operation  is  found  to  be  highly  beneficial  in 
working, 

Of  ktte,  however,  there  have  been  symptoms  of  conslderabli 
dbsatisfaction  with  this  state  of  things.      The  committee  is  a|  * 
to  be  somewliat  capricious  in  its  manner  of  dealing  with  matte^ 
eomiog  under  its  cognizance.      Existing  professedly  for  thi 
benefit  and  protection  of  the  public,  it  appears  now  and  then  to 
lose  sight  of  its  proper  objects,  and  to  act  as  if  the  interests  o: 
jobbers  and  s]>cculators  were  its  chief  concern.     A  company  > 
formed   to   work  a  promisiag   speculation,    or   take  over  an 
e.^taldished  business.     It  passes  through  the  ordinary  stages  o' 
development,  and  progresses  with  greater  or  less  rapidity  t 
complete  organization.     It  comes  into  the  world  a  crude  c in- 
ception, upon  which  hardly  any   one   will   bestow  a  secoTi- 
thought.     It  is  "taken  up"  by  some  plausible  promoter,  o* 
skilful  secretary,  by  whom  a  board  of  directors  is  got  togetb:: 
Its   advantages   are   set  forth   in   a   flowery  prospectus,  ^i 
detailed  sit  length  in  newspaper  advertisements,  which  gener^; 
wind  up  with  circumstantial  information  about  the  last  d;ir  ' 
which  applications  for  shares  can  be  received.     Trusting  to:-' 
promises  made  by  the  "  good  men  "   on  the  direction,  invtv  * 
floek  to  tlie  bank  where  deposits  are  to  be  paid.     In  due  coi> 
we  hear  that  applications  have  been  received  for  from  tw--^  v- 
1  enfold  as  many  shares   as  can  be   issued,  so  that  a  very  1. '-'■ 
number  of  would-be  shareholders  will  inevitably  be  disappoint'  - 
V'\\  go  the  yet  unissued  shares,  like  so  many  sky  rockets  :  i  "  - 
ifi\v  dny.s  they  figure  in  the  list  of  new  undertakings  at  tcmrti: .: 
premiums  ;  tliose  who  previously  had  feared  to  tread,  rush  ra-: .} 
no!  to  say  nnidlvj  in;  stock  brokers,  jobbers,   and  peojde  ^: 
friends  at  court,  make  a  handsome  profit,  and  the  outside  wu:    . 
whose    avidity    has    made    the    knowing    ones'    opjxirtur.  *  . 
await  with    redundant     confidence   the    special    settlii:iir    «1-.; 
which    shall  entitle  their  pet  scheme  to  a  regular  qu<>tat:  : 
But    sometimes  the  event  proves  their  confidence  mi^p:..  <  - 
their  anticipations  delusive.     The  committee  of  the  St^xk  1  x- 
eluinge  puts  on  its  "  hose  severe  and  beard  of  formal  cut."     1* 
brings  out  its  wise  saws  and  makes  the  new  company  a  ni<>:  ^: 
uifitnnee.     It  discovers  some  oft  overlooked  infrinirement  o*  i'- 


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stock  Exchange  Administration. 


1043 


own  rules,  some  change  in  the  articles  of  association,  which,  in 
its  judgment  at  least,  constitutes  a  "  material  variance"  from  the 
statements  of  the  prospectus.     The  result  is  a  refusal  of  the 
quotation;  which  is  followed,  as  a  necessary  consequence,  by  an 
mimediate  and  inordinate   depreciation   in   the  value  of  the 
shares.    The  wise  men  on  'Change  shake  their  heads  knowingly; 
the  foolish  outsiders  gnash  their  teeth  despairingly.     The  rapid 
rise  is  followed  by  a  fearful  fall,  and  all  manner  of  hard  things 
are  said  about  directors,  share  brokers,  stock  jobbers,  and  every- 
body else  who  has  anything  to  do  with  joint-stock  companies. 
It  will,  perhaps,  be  said  that  we  are  complaining  without 
reason.     We  shall  be  told  that  the  refusal  of  a  quotation  is  an 
act  of  public  duty,  for  performing  which  the  Stock  Exchange 
Committee  are  entitled  rather  to   great   praise   than  to  small 
censure.     We  reply,  that  the  action  of  the  committee  is  too  late 
in  time  and  too  uncertain  in  instance  to  meet  the  complaint  we 
are  now  making.     Not  until  the  applications  have  been  sent  in, 
and  the  letters  of  allotment  issued,  do  the  public  know  of  the 
fatal  flaw  in  the  venture  which  induces  those  who  regulate  the 
de^y  of  nascent  companies  to  pass  a  sentence  of  financial 
ostracism.     Nay,  more ;  it  is  undeniable  that  the  secrets  of  the 
prison  house  are  not  particularly  well  kept,  and  that  the  course 
which  the  committee  will  take  with  reference  to  any  particular 
scheme  is  known  to  the  speculating  few  long  before  it  is  an- 
nounced to  the  investing  many.     The  consequence  is  that  the 
former  class  have  a  start  of  some  days,  in  a  race  whose  every 
iour  may  be  worth  some  thousands — thousands,  be  it  remem- 
bered, which  come  out  of  the  pockets  of  those  whose  only  fault 
^sis  been  an  excessive  confidence  in  the  integrity  and  straight- 
forwardness of  men  whose  fortune  and  position  ought  to  render 
them  above  suspicion.     It  would  be  easy  for  us  to  cite  cases  in 
vhich  a  quotation  has  been  accorded  to  projects  rotten  as  tinder, 
md  refused  to  others  a^  sound  as  an  acorn ;  in  which  the  com- 
nittee's  error  of  judgment  has  lured  honest  men  to  their  ruin, 
^'hile  in  others  their  capricious  or  incautious  exercise  of  their 
cowers  has  cast  undeserved  discredit  upon  projects  of  unques- 
ionable  excellence  and  value.     Our  object,  however,  is  not  to 
peak  of  particular  instances,  but  to  assert  a  general  principle. 
V'e  seek  not  to  condemn  the  conmiit tec '  because  they  have 
ccasionally  erred,  but  we  desire,  by  reminding  them  of  the 
nportance  of  their  duties,  to  prevent  the  necessity  of  future 
nimadversion.     Regard  for  the  interests  of  the  public  is  the 
Qly  plea  which  can  be  urged  for  tlie  maintenance  of  a  tribunal 
)  anomalous  as  the  Stock  Exchange  Committee,  A  court  which 
ects  ita  own  members,Jframes  its  own  rules,  exercises  authority 


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1044 


Stock  Exchange  Administration. 


of  its  own  mere  motiou,  absolves  whom  it  will,  and  condemns 
whom  it  pleases,  hud  need  take  especial  and  particular  care  tet 
its   decisions   shouUl  in\  ile  censure  or  provoke  "  the  fury  of 
niallLriiiint   eriticism,'*     AjkI  if  this  be  true  universally,  it  is 
es]uriiiUy  sigiiitieant  when  the  members  of  such  a  tribunal  are 
individiuilly  .supposed  to  benefit  by  the  practices  which  colk*c- 
tively  they  eoudenni ;  ^\  hen  the  relations  between  the  judges 
imd  tlie  public  are  such  as  in.  some  degree  at  least  to  warrant 
the  iusiiiuulion  that  prlvatG  interest  rather  than  public  virtue 
may  have  prompted  an  ael  of  discipline,  or  occasioned  an  exer- 
cise  uf    severily.      Vov  our  own  part  we  should  be  sorry  to 
impute  unworthy  motives  or  incautious  action  to  the  members 
of  tlie  Stock  Exchange  Committee.     Many,  indeed  most,  of  its 
members,  we  personally  know,  and,  with  scarcely  an  exception. 
those  wo  know  we  hijjhly  esteem.    But  we  cannot  shut  our  eyes 
to  the  fact  that  tlie  public  in  general  have  not  the  intimate 
acquaintance  with  them  which  it  is  our  privilege  to  enjoy.  Thtv 
see  onh'  the  external  burface  of  things.     They  see  that  while  i 
quotation  is  freely  recorded  to  some  undertakings  which  tbey 
consider  questionable,  it  in  sternly  denied  to  others  which  they 
regard  as   hottd  ftfe  and  eommendable. .    They  know  that  t^^ 
refusal  of  a  quotation  in  the  latter   case  inure.s  to  their  o^i^ 
losSj  and  tlmt  in  the  former  it  results  in  great  gains  to  thosi  - 
whose  hands  the  power  of  granting  or  refusing  the  advant..'" 
of  such  a  quotation  Las  been  lodged.     It  would  be  well  loMi-^ 
members  of  the  committee  to  consider  these  things.     AVhav^^*^^ 
be  the  immediate  source  of  Stock  Exchange  prosperity,  its  tir-t 
and  greatest  and  most  enduring  cause  must  be  the  confidenct  /• 
the  public.     It  this  be  once  forfeited,  the  charmers  of  Cat>^l 
Court  will  try  their  arts  in  vain.     They  may  pipe,  but  tixj- 
suhseribing  and  investinrr  playmates  will  not  dance.     They  m-y. 
like  the  syrens,  sing  their  sweetest  songs,  but  the  investor,  l'^^'- 
another  Ulysses,  will  stop  his  ears,  and  the  syrens  will  sing  i^ 
vain.     In  their  own  interest,  therefore,  no  less  than  fromreei^a 
to  commercial  morality,  we  ask  the  Stock  Exchange  Conimiutx 
to  ponder  well  what  schemes  they  endorse,  and  what  they  con- 
demn.    Of  late  they  have  in  a  measure  laid  themselves  optn  to 
the   imputation  of  praising   without    cause,  and  condemDii::! 
without  excuse.     We  trust  they  will  in  future  be  more  carols' 
Let  Ihem  express  their  disapproval  of  Stock  Exchangee  man- 
ceuvres  at   a  time  when  their  opinion  will  be  beneficial  to  tu^' 
publiCj  and  let  them  not  withliold  their  countenance  from  an 
honest  and  promising  concern,  from  any  regard  to  the  intercut 
of  speculators  for  a  fall.     If  they  act  thus,  the  public  will  con- 
tinue to  ti^ust  and  to  confide  in  their  discretion,  but  if  theytaKr- 


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Operatiom  of  the  Clearing  House  1045 

any  less  straightforward  course,  their  dereliction  will  not  un- 
naturally be  followed  by  a  corresponding  estrangement  between 
investors  and  themselves.  In  the  long  run  they  will  find  that 
attention  to  the  interests  of  the  former  is  the  best  way  to  secure 
the  prosperity  of  the  latter.  Let  them  be  especially  careful  not 
to  give  any  ground  for  suspicion  that  they  have  been  capricious 
and  unreasonable  in  refusing  recognition,  but  when  they  do 
this  let  their  discretion  be  exercised  early  enough  to  make  the 
penalty  fall  upon  the  speculators,  and  not  upon  the  bona  fide 
investors. 


A  PRACTICAL  SUGGESTION  FOR  FACILITATING  THE 

OPERATIONS  OF  THE  CLEARING   HOUSE,  AND  LESSENING 

THE  RISK  AND  TROUBLE  OF  COUNTRY  BANKEBS. 

A  VEUT  considerable  part  of  the  articles  passing  through  the 
Clearing  House  consists  of  cheques  and  bills  remitted  by 
country  bankers  to  their  London  agents.  These  articles  ought 
to  reach  the  Clearing  House  either  in  the  "  morning  clearing  " 
or  Very  early  in  the  "afternoon  clearing."  Unless  they  do  so 
they  interfere  with  and  delay  the  London  business,  which 
flows  in  vdth  great  rapidity  after  2  or  2.30  p.m.  The  bills 
fronj  the  country,  however,  and  day  by  day  an  increasing 
number  of  cheques  and  warrants,  &c.,  drawn  '^  to  order,"  come  to 
the  London  bankers  specially  endorsed,  and  therefore  have  to  be 
sorted  and  resorted  for  endorsement  by  the  London  banker  in 
the  busiest  part  of  the  day,  and  again  sorted  for  the  clearing 
after  the  endorsement  is  obtained.  It  will  be  easily  understood 
that  imder  such  circumstances  delay  is  often  inevitable,  and 
that  such  delay  creates  inconvenience  in  the  clearing. 

This  is  an  evil  which  must  grow.  The  trade  of  the  country 
is  larger  every  year,  and  of  course  leads  to  the  circulation  of 
more  bills  and  cheques ;  and  as  regards  cheques  a  greater  pro- 
portion are  specially  endorsed  whenever  they  form  the  subject 
of  remittance. 

At  the  other  end  of  the  chain  the  country  banker  has  also 
specially  to  endorse  over  to  his  London  correspondent  the 
articles  remitted,  and  he  has  mostly  to  do  this  at  a  time  of  the 
day  when  he  is  in  the  midst  of  correspondence,  or  some  other 
equally  important  part  of  his  duties. 

The  endorsement  of  these  bills  and  cheques  is  in  reality  pure 
form.     The  Country  and  the  London  banker  hold  them  merely 


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1046 


Operaiiom  i 


for  collection.     They  have  no 
speediest  attainment  of  that  eni 
Is  it  then  possible  to  suggest 
two  things,  viz.  :— 

(1.)  Provide  the  secnrity  oj 

poeeB  of  transmission  through 

dispense  with  the  delay  of  prcKS 

sending  and  receiving  bankersJ 

(2.)  Expedite  the   delivery  ^ 

**  morning  clearing.*'  and  therel 

London  business  later  in  the  dfl 

We  believe  it  to  be  quite  poJ 

not  merely  to  suggest  it,  but  t^ 

which  has  been  in  snccedsful 

several  years. 

Some  years  ago  one  of  the 
English  joint-stock  bonks  ado] 

Upon  uU  bills,  cheques,  w 
agent  for  eollectiun,  they 
foUowing  endorsement ; — 

Jtemitted  from 
Bi 


to  the 


Thia  endorsement,  of  couu 
effectually  prevents  the  bill  c 
improper  hands ;  for  no  prud< 
any  article  so  marked  except  t 
of  it  in  London — and,  in  poii^ 
tbat  the  plmi  hm  been  in  acti; 
difficulty  of  any  land  has  occu 
not  merely  a  suggestion,  but  ! 
practice  on  the  part  of  a  largo 

If  it  be  said  that  to  discol 
the  London  reunttances  would 
having  before  him  a  class  of  { 
tions,  the  answer  is  ready,  vis 
mechanical  labour  of  executhq 
give  to  the  banker  a  real  op] 


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The  Facilities  of  Banking. 


1047 


Ofer  earefnlly  and  fieaxming  them  on'  both  sides.  And  the  same 
itm&rk  applies  to  the  receiving  banker  in  London. 

It  is  ine%ntablo  that  in  the  growing  neoessity  for  expedition 
and  despatch  in  c^ery  direction,  and  for  every  purpose,  all  mere 
iR€chaaical  work  must  be  abridged  more  and  more.  In  France, 
the  public  functionaries  are  justly  described  as  "machines  of 
signature/* — so  vast  and  indiscriminate  is  the  rage  for  auto- 
graph sigtiaturc.^  to  the  most  comm'on-place  documents.  This 
i>  a  mistake  which,  of  all  people,  bankers  are  most  interested  in 
i  voiding.  One  of  the  chief  objects  of  the  organisation  of  a  banking 
office  should  be  to  increase  the  means  of  observation  and  super- 
vision on  the  part  of  the  principals,  by  relieving  them  as  far  as 
pottible  of  all  mechanical  labour  that  can  be  safely  dispensed 
tith. 

And  we  believe  that  in  bringing  before  our  readers  the  facts 
stAted  in  this  pa|>er  we  have  done  something  towards  promoting 
thii  most  desirable  end. 


THE  FACILITIES  OF  BANKING. 

HEX  the  mania  for  multiplying  banking  establishments  was 

its  height^  we  ventured  to  express  our  apprehensions  lest  it 

luld  result  in  a  redundant  supply  of  banking  accommodation. 

\  showed  that  the  marvellously  high  dividends  paid  by  the 

don  and  Westminster,  the  Union,  and  similar  joint-stock 

acems,  were  due  to  circumstances  of  an  exceptionally  favour- 

oharacter^  upon  which  no  new  company  could  reckon,  and 

expresfied  our  fears  lest  the  promulgation  of  fresh  schemes, 

[the  rate  of  two  or  three  a  week,  should  occasion  an  excessive 

I  danga*ous  competition  in  a  business  which  especially  requires 

t  exercise  of  caution.     For  a  while  it  seemed  as  if  our 

ga  were  unneeded.     The  new  banks  rejoiced  in  abounding 

8,   and   their    shareholders   in   liberal   dividends  ;    the 

jial  capital  \\\x^  usually  found  inadequate,  wid  new  shares 

d  at  high  premiunis  were  not  only  placed  without  difficulty, 

sought  with   inordinate   avidity.     The  quotations  of  many 

ly-launched  banking  companies   were  absurdly  high  ;  yet 

ir  momentary  prosperity  was  supposed  to  be  only  the  presage 

^  raoro  golden  future,  and  amidst  the  jubilations  of  those 

_    I  h  *  light  profits  of  twenty  and  thirty  per  cent,  were  to  be 

r   ordinary  remuneration,   our  less  sanguine  anticipations 

almost  entirely  disregarded. 
iVo  have  not  had  to  wait  verv  long  for  the  verification  of  our 
^  cnaions.    Those  who  wish  to  see  how  far  we  were  justi- 

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1048 


The  Facilities  of , 


fied  in  uttering  thorn   may  make  I 
share  list  of  to-day  and  of  twelve j 
five   or  bix   premium   to  eight   orf 
common,  and  even  where  shares 
there  haa  been  a  great  eoid  almosl 
one  bank  we  could  name    the  fa! 
premium,  and  were  we  to  go  throii 
to  a  multitude  of  similar  instances 
impressive  and  practical  sermon 
pectations.     The  golden  dream 
It  has  been  found  that  the  earl; 
great   to  be  beneficial.     The  newj 
carcases  round  which  the  eaglea  g 
instinct  of  their  species.     Firms,  m 
than  solid,  engaged  in  operations  \ 
hastening  to  avail  themselves  of  thj 
modation  which  limited  liability  aui 
provided  for  their  especial  benefit, 
opportunity  traders  of  this  class  a 
failure,  but  in  the  end  they  left  i 
with  heavy  bad  debts  and  heaps  o 
extent  this  evil  may  have  wrought 
In  many  cases,  we  know,  open  cr6( 
houses  of  doubtful  character  have 
lations  or  suspend  their  payments, 
indications  to  prove  that  the  niisch 
banking,    as   in    other    businesseSi 
take  the  greatest  risks.     Somethui 
customers,    and  a  banker  can    d« 
increase   the    fafcal   facility    of    c| 
the   Unity,   the  Tforthumberland 
a  score  of  other  bankrupt    establi 
entirely  upon  this  utterly  unsouni 
In  some  cases,  because  good  accoa 
others,  as   it  appeared,  from  pun 
dangerous    chances,    a    number  of 
s  trie  ted  liberty  to  play  with  the  bal 
bank's  resources.     We  hope  that  m 
to  imitate  the  sublime  folly  of  thewi 
we  need  only  refer  to  a  case  heard  i 
Court,  during   the  last  [month,    to 
to   tempt   fortune   has  not  yet  dil 
directorial  bosoms.     The  Birmingh 
appeared  as  prosecutor  of  two  meij 
conspired  together  to  defraud  the  I 


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The  FacilitieH  of  Banking.  *  1049- 

of  money.  Of  course  we  know  nothing  more  of  the  facts  than 
is  detailed  in  the  ordinary  chaimels  of  public  information, 
and,  therefore,  whatever  we  say,  whether  of  the  bank  or  of  the 
prisoners,  must  be  taken  subject  to  such  explanations  as  may 
hereafter  be  afforded.  With  this  reservation,  we  remark  that 
the  history  of  the  case  affords  an  instructive  comment  on  the 
risks  run  by  those  who  depart  from  recognized  rules  of  business* 
Mr.  Benjamin  Taylor,  a  Birmingham  manufacturer,  in  May 
last,  called  to  make  inquiries  about  the  facilities  which  the 
Birmingham  Bank  afforded.  He  had  at  times, ''  many  excellent 
trade  bills,"  which  he  was  willing  to  discount  with  lus  present 
prosecutors,  inasmuch  as  he  did  not  like  the  mode  of  aealing 
adopted  by  a  rival  company  which  had  hitherto  been  favoured 
with  his  patronage.  From  the  newspaper  reports  of  the  pro- 
ceedings, it  seems  that  the  usual  preliminary  of  an  introduction 
through  some  respectable  firm  was  in  this  case  dispensed  with. 
The  prospect  of  getting  a  customer  whose  floating  amount  would 
be  £4,000  or  £5,000,  seems  to  have  been  sufficient  for  every 
purpose.  Taylor's  account  was  accepted,  and  within  three 
wedks,  he  succeeded  in  getting  nearly  £3,000  of  the  bank's 
money  on  bills  which  it  is  now  asserted  are  utterly  worthless. 
He  obtained  this  advantage  by  one  of  the  stalest  of  stale  artifices. 
He  had  an  associate  named  Henry  Kelly,  in  London,  prodigal  in 
aliases  and  ubiquitous  in  residences.  With  the  help  of  this 
worthy,  he  procured  or  concocted  bills,  drawn  sometimes  by 
forging  the  signatures  of  respectable  firms;  sometimes  on 
persons  long  ago  dead,  or  removed  from  the  addresses  given ; 
sometimes  on  men  of  straw,  who  were  paid  a  few  pounds  by  way 
of  "  commission  "  for  writing  their  names.  Had  Taylor  only 
gone  about  his  work  somewhat  moderately  he  might  have  kept 
up  the  game  almost  indefinitely.  But  he  frightened  the  bank 
too  soon  by  discounting  at  the  rat«  £1,000  a  week.  They  told 
him  they  must  decline  to  take  any  more  of  his  paper,  at  which 
he  was  virtuously  indignant,  because  '^  he  was  most  particular 
as  to  the  persons  with  whom  he  did  business.*'  But  suspicion 
once  aroused,  was  not  be  quieted  by  these  assurances.  He  was 
taken  into  custody,  and  letters  were  found  upon  him  which  at 
once  revealed  his  modvs  operandi.  Kelly,  his.  associate,  had 
assumed  the  name  of  Beeves  &  Co.,  of  Langbourn  Chambers, 
and  had  ordered  goods  right  and  left,  referring  to  Taylor  as  a 
guarantee  for  his  respectability.  Firms  in  Liverpool,  Man- 
chester, and  other  places  had  written  to  Taylor  for  this  informal 
tion,  and  had  probably  received  answers  from  him  which 
satisfied  their  scruples.  Beeves  &  Co.  dealt  in  everything  from 
pins  to  broughams,  but  whatever  they  wanted  they  always  gave 


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1050 


*  The  Fadilities 


the  new  cuBtomer  of  the  Binniii| 

And  as  showing  the  readieeas  of  tl 
the  times^  there  was  aL%o  found  M 
company,  with  £100,000   capitaljj 
known  and  rapidly  increasing  busf 
of  Camden  iStreet^  Binninghamii 
and  logging  manufacturer." 

It  is  only  fair  to  state  that  Tai 

in  Birminp:ham.  and  that  the  m; 

be  eng^aged  in  business  there,     B 

for  this,  the  neglect  to  ask  for  reJ 

opening  an  account  was  a  grave  o^ 

of  the  Birmingham  Bank  gone  M 

have  learned  that  Taylor  already 

£8,000,  and,  this  fact  once  known^ 

loss  which  ha»  since  resulted  to  tbi 

seems  that  the  bills  bore  on  their  | 

unsatisfactory  character  that  the 

circumatance  alone.      The  presid 

hiH  astonishment  that  any  bank  si 

the  bills,  m  they  were  evidently 

fact,  we  regret  to  say»  that  in  thil 

Bank  does  not  appear  to  have  exei 

sary  in  carrying  out  tinancial  tram 

however,  have  received  a  ^'ery  sevea 

doubt   look  sharply  after  refereni 

inquiiies  into  the  status  of  cuatomi 

not  wish  to  speak  more  harshly  of ; 

poraries.     Tbe  miischief  is  in  the  i 

indefinite  multiphcation  of  compi 

rendered  each  in  a  measui-e  forgetfn 

impeachable  iniles  which  cannot  h 

the  pro8|>erity,  or,  it  may  be,  Gvi 

thofle  who  disix!gard  them.     One  ol 

new  customer  nhould  be  properly  i 

the  die  count   accommodation   affoi 

like  proportion  to  the  extent  of  thi 

Taylor's  case  these  precautions  seed 

overlooked.    We  ho|>e  that  the  attel 

the  Mansion  House  have  directed 

the  means  of  checking  the  furthei? 

and  (financiaUy  speaking)  vicious 


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1051 


ON  EECENTLY  DECEASED  BANKS .♦ 

(From  a  Correspondent,) 
EsGLLVD  hM  ttie  deserved  reputatioh  of  moving  faster  through  the 
ckimel  in  which  money  is  to  be  made,  and  riches  accumulated^  than 
anr  other  country.     Our  cousins  across  the  Atlantic  have  shown  us 
Uiider  feats  certainly  in  the  effects  produced  than  we  have  any  wish 
to  kv  claim  to,  but  when  an  amount  of  speed  is  attained  altogHher 
ont  of  proportion  to  the  means  employed,  and  endangering  .the  safety 
ot  ail  ctjncemed,  such  operations  cannot  bo  aUowed  to  occupy  any 
itotisticnl  rank,  having  broken  the  bounds  of  all  reason  and  discretion, 
aj^  Iwted  upon  as  nlere  acts  of  folly  and  are  im worthy  of  the  atten- 
tion of  scientific  investigators.     The  gi'eat  disasters  which  befell  the 
iiiJdng  jij>eculations  in  the  United  States  arose,  undoubtedly,  from 
tlirir  Wing  all  allowed,  by  permission  of  the  local  legislatures,  an  almost 
ttiilimitod  issue  of  notes.      These  acts  were  easily  obtained  by  banks 
Tidcb,  upon  the  discovery  of  the  large  profits  made  by  others,  spread 
tbeir  not-es  of  all  denominations  into  every  comer  of  the  country,  the 
«malle?it  descriptions  finding  their  way  into  the  humble  dwellings  of 
tte  field  labourer,  who  could  not  be  expected  |,to  exercise  any  discre- 
tbti  dfe  to  the  world.     The  conditions  imposed  upon  these  banks,  viz., 
^  tbeii"  notes  should  upon  all  occasions  be  paid  in  specie  on  demand, 
^o<iW  hure  no  effect  in  checking  the  spre^  of  such  paper  far  beyond 
even  a  Utir  proportion  of  what  might  be  issued  above  the  specie  ac- 
W!if  at  the  disposal  of  the  bank  at  any  time.     And  as  such  insti- 
tutMJoa  can  never  be  expected  properly  to  curtail  their  profits  on  the 
•core  of  safety  unless  their  transgressions  are  severely  dealt  with  by  the 
•hite — Ho  other  result  could  be  looked  for  than  that,  upon  an  occasion 
<rf  alarm,  the  paper  would  flow  in,  and  all  who  could  not  gather  in 
^^ir  resources  would,  without  doubt,  suspend.     The  changes  in  the 
^lue  and  total  sum  issued  of  the  paper  money  in  the  United  States 
^  exceeded  that  of  any  other  country  at  any  period  of  history,  and 
'^consequence  has  been  that  America  has  been  visited  with  greater 
H  tor  and  ruin  than  any  other  country.     Between  1811  and  1820 
>  lisinks  in  different  parts  of  the  United  States  became  bankrupt, 
Ji«i  it  L^  stated  by  a  treasury  report,  dated  1820,  that  these  failures 
're  pnxluctive  of  greater  misery  and  distress  to  the  lower  orders 
n  cfirt  be  found  in  any  precedent,  and  all  resulting  from  there  being 
iiiicient  check  upon  the  amount  of  the  issues  of  these  banks, 
i  in.  compulsion  on  the  part  of  the  government  that  proper  in- 
i- tt-irs  were  appointed  to  watch  over  the  due  proportion  of  specie 
^•?«erve  being  maintained. 
In  1837  it  is  stated  that  all  the  banks  in  the  United  States,  with- 
^t  an  exception,  stopped  payment ;  further  crashes  taking  place  in 
^^39  and  1840. 

Various  measures  were  taken  to  prevent  the  recurrence  of  such 
•lisaHters,  by  making  all  the  banks  pay  a  half  per  cent,  upon  theii^ 

*  It  most  be  understood  that  we  are  not  responsible  for  the  opinions  of  th4 
^"nriter. 


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1052 


On  lucent!^  Deceased  Banks. 


capital  to  a  sooiirity  fiintl  This  was  a  measure  which  obliged  properly 
uiiina^ed  institution's  to  poy  for  those  that  were  badly  maiiageti,  and 
woulil  coiisf  fluently  proiluue  a  great  deal  of  opj>ositioii,  resulting  in  tW 
laeaaure  partly  falliag  through.  Some  of  the  banks  gave  so  much  d 
their  owD  stock  as  security,  but  this  would  of  necessity  be  the  lt-a.-i 
worth  when  it  was  most  wanted,  and  did  not  exhibit  much  sagacity 
on  tho  part  of  the  su^gestors. 

Although  tho  failure?!  have  been  many,  and  often  of  a  nn^  dis 
graceful  type  in  England^  we  have  never  produced  such  whole^le  niin 
and  misery  as  the  reckless  operations  of  the  American  hankers  have 
brought  upon  the  people  of  the  United  States.     • 

The  stoppages  and  failures  of  banks  in  Great  Britain  have  resulted 
more  from  inefficient  administration  than  from  any  laxity  of  principle 
on  tho  i>art  of  those  who  govern  their  movements.  For  there  can  be 
little  doubt  that  so  long  as  a  bank  director  refrains  from  any  pecimiiLrT 
obligation  to  the  iuBtitution  at  whose  board  he  has  a  seat,  he  will 
continue  to  give  his  counsel  and  assistance  dictated  from  motives  vlu'  j 
hold  in  view  the  fixing  of  the  establishment  with  which  he  is  connecrr-: 
uix>n  a  firm  and  honourable  basis.  Such  is  quite  natm-al,  as  eve:^ 
man  strivcH  to  elevate  fumself,  and  will,  in  consequence,  endeavour  :o 
raise  any  institution  in  whose  ranks  he  may  enlist,  provided  hisb-^t^t' 
judgment  may  not  he  warped  when  he  is  called  upon  to  vote  for  * 
iueasine  that  lies  across  his  interests. 

We  ar<?  of  opinion  that  such  a  condition  should  be  equally  \^\'^-'' 

tive  with  respect  to  directors  as  it  is  with  the  manager  of  a  l"^^" 

that  upon  no  .Sijrt  of  condition  whatever  shall  he  be  allowed  to  ^'^  *^' 

indel)t€d  to  the  bank  in  which  he  holds  office.     There  can  be  c  -^ 

so  injurious  to  the  weltkre  of  an  institution  which   deals  in  ra-^cy^' 

for  one  set  of  its  members  to  sit  in  judgment  upon    the  apphcation  i 

the  others.     The  associations  of  office,  the  intimacy  which  may  ^i"' 

caused  one  director  to  introduce  another,  will,  if  not  on  price:; 

smothered  in  the  bud,  lead  a  man  to  forget  that  strict  line  of  a^ :'  ' 

whicli   must  be  on  all  occasions  maintained  intact  and  inviolato,  ^ 

our  public  institutionn  are  to  be  administered  so   that  the  j.-eoKt    • 

the  nation  wIk>  are  strange  to  the  directors  may  receive  that  iicpsr 

tiality  and  unbijij^ed  tix'atiiient  which  the  present  stat€  of  civiUi^v.  - 

and  enlight^^nment  of  tlie  age  we  live  in  demand  as  their  right.    T:-' 

most  Irigldy  principled  and  honourable  men  will  give  way  ucder  :•- 

undue  pressure  ;  uuder  a  pressure  the  employment  of  which  it  i^  '-" 

duty  of  the   community  and  of  the  legislature  to  guard  against.   A 

giTiwing  iainiliainty  whh  a   loose  way  of  doing  business  will  wan- 1-- 

niind  of  a  nmti  accttstomed  to  shrink  at  the  thought  of  even  tavoiu  u^- 

until  he  comes  to  view  the  scaffold  with  composure. 

All  the  IcgJil  preventives  which  are  impos<"d  by  a  governL.  :^ 
against  the  loss  of  property  by  the  public  wiU  prove  of  littit^  a.-a- 
when  tlie  law  may  be  evaded  through  the  ordinary  channelj;  ot  b.  -' 
nes.s,  and  the  Ciijutal  of  a  bank  disposed  of  by  its  adniinistnitoi>  i  ■ 
their  own  purposes. 

l^[ion  almoiit  every  occasion  upon  which  the  failure  of  a  hiUik  1^  ^^ 


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On  Recentty  Deeeased  Banks.  1053 

been  publidj  mveatigated,  it  has  been  diacovered  that  tbe  failure  was 
not  owing  to  difficult  times  or  crises  alone.  It  has  been  by  the 
failing  energy  of  those  who  were  willing  to  have  their  names  asso- 
ciated with  it  while  prosperous,  but  who  forsook  it  when  adversity 
overtook  it.  If  a  director  only  considers  the  damage  he  may  produce 
by  leaving  an  establishment  when  signs  of  success  are  not  so  en- 
couraging as  at  the  outset,  he  would  pause  before  he  took  such  a  step. 
Is  it  at  all  possible  that  every  contribution  of  men  and  material  must 
be  certain  beyond  a  question  to  succeed?  Can  every  institution 
which  is  commenced  on  a  large  scale,  and  consequently  to  ensure 
success  must  make  a  large  profit,  be  certain  to  answer  1  The  warmth 
of  a  director  is  exhibited  more  by  his  revising  to  join  a  board  of  a 
new  company  than  by  his  best  exertions  when  there  to  bring  success 
to  an  undertaking  when  there  is  not  room  for  it.  The  large  number 
of  banks  that  have  covered  our  newspapers  with  their  prospectuses 
has,  long  ago,  absorbed  all  the  bank  directors.  There  came  a  demand 
for  an  article,  but  at  so  short  a  notice  there  could  be  no  adequate 
supply.  Do  the  average  of  bank  directors  know  really  what  their 
attainments  should  be  in  order  to  qualify  them  to  direct  the  operations 
of  an  institution  involving  the  most  complex  principles  ) 

The  banking  which  took  its  rise  in  London  in  the  seventeenth 
centiuy,  through  the  goldsmiths,  has  giudually  changed  and  carried 
revolutions  into  all  the  dealings  between  man  and  man,  and  has  con- 
nected one  country  with  another  until  the  real  principles  of  banking 
have  expanded  from  the  simple  operations  of  a  person  who  took 
charge  of  sums  of  money  for  the  public,  into  a  huge  commercial 
engine  which  can  negotiate  the  sale  of  an  empire,  or  lend  the  money 
of  the  public  in  the  country  where  it  is  established  for  the  relief  of 
another  country  beyond  the  seas  ;  and  yet,  when  administered  as  it 
can  be,  is  able  to  return  to  all  their  due,  and  when  promised. 

A  bank  which  is  established  upon  legitimate  principles  should  be  in 
a  position  to  return  the  whole  of  its  debts  to  the  public,  including  the 
paid-up  capital,  at  six  months'  notice.  The  further  a  banking  or  finan- 
cial institution  recedes  from  this  point,  the  nearer  it  places  itself  to  a 
suspension  of  payments  when  the  pressure  comes. 

It  must  Tindeniably  be  a  very  hard  case  for  a  body  of  directors  to 
refuse  a  business  that  will  lock  up  £100,000  for  nine  months,  because 
such  a  loan  would  cause  inconvenience  were  the  funds  required  before 
it  fell  due ;  and  particularly  if  at  the  time  large  fiinds  were  in  their 
hands  unemployed.  But  let  me  ask,  is  the  principle  which  would 
cause  them  to  refuse  such  business,  in  a  time  when  they  could  lend 
the  same  sum  upon  the  same  conditions  for  three  months,  to  be  dis- 
regarded, when  they  had  much  to  lend,  and  when  a  departure  from 
such  principle  endangered  the  position  of  the  public  depositors  ?  In 
many  undertakings  there  is  never  any  certainty  that  a  crash  will  not 
happen ;  but  with  banks,  who  can  set  aside  jealousies  and  adopt  a 
system  of  co-operation,  there  is  always,  under  a  wise  administration, 
a  certainty  that  thei'e  can  be  no  crash.     Without  a  strict  obedience 


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1054 


Oil  Recenily 


enilyn{ 


i 


to  tlie  premonitoty  symptoms  whii 
for  money  iinfailJDgly  exhibit*  th 
fected  by  sucli  causes  most  %ei  th€a| 
In  tlie  hurry  and  excitement  of  ' 
these  forewaniingj*  are  not  taken 
ticular  that  the  iniblic  has  a  right 
and  inanagera  shall  pfive  their  un 

The  endless  raraihcationH  throu^ 

w  to  he  traced,   nud   the  vigilance  j 

are  required  in  order  to  keep  jrnce  \ 

all  the  produce  of  the  earth,  \¥eari| 

do  not  tiEd  a  somewhat  coof^enial  d 

in  view  the  results  that  will  inlaUj 

the  approach  nf  daugerous  iluctual^ 

deliberate  conaidei'ation  of  the  whl 

whether  or  not  it  in  possible  to   it 

system,  by  which  these  huge  jiecuffl 

inate  bankii»  tmaiicial  corai sanies,  \ 

hrokera,  insurance  societies  and  al 

material  %vhich  endeavour  t-o  gain 

the  puhhc  genendlj,  witliout  a  duiS 

I  shall,  in  the  first  placej  proce* 

ligts  of  the  alia  res,  aufi  the  pi-icea 

daily,  are  believed  by  the  public  to 

of  such  iiistitutionH.     The  enonuo 

after  day  in  the  purchnso  and  wale  \ 

takings  which  have  their  head  qui 

suggest  that  the  multitude  of   iti 

Talue  of  the  ai'ticle  they  are  parch 

ment 

The  public,  as  a  rule,  does  not  t 
to  search  into  the  causes  for  the  fl 
will,  doubtless,  helievcj,  that  the  \ 
together  with  Ci»st  of  production 
earth's  produce,  has  a  con^sptmdin 
lluctuations  in  the  price  of  food 
persons  who  i-equire  subsistence,  i 
may  attend  the  laboura  of  agriculfcf 
tutious  existeil  in  a  due  projiortioii 
peculiar  accoiamodaticm  wliich  ih 
spects  profierly  comiuct4pd,  the  stoQ 
fluctuate  regularly  and  evenly  w 
of  commercial  affairs  gen  end  ly,  ai 
acted  ujxiii  by  the  great  principl 
thicttiatious  were  projH 'Hy  wntch* 
really  undci"stand  Huch  questions 
not  have  so  often  to  com]»laiii  that 
meuts,  and  inducted  to  trust  their  | 


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On  Recently  Deeeoied  Banks.  1056 

A  great  evil  wMch  lurks  at  the  bottom  of  all  fmcb  mania  is  the 
opportunity  afforded  to  a  class  of  persons  to  set  deliberately  to  work 
to  foist  such  enterprises  upon  the  public.  There  is  an  imposing 
array  of  financial  companies  bristling  upon  the  share-list  every  day, 
whose  existence  depends  very  materially  upon  the  manufacture  of 
some  undertaking  or  other  for  sale  as  a  limited  company.  They  have 
a  large  capital  paid  up  and  a  staff  which  must  be  paid ;  and  their 
great  occupation  is,  in  order  to  pay  a  dividend  to  their  shareholders, 
to  persuade  as  many  contributions  of  men  and  mateiial  as  possible,  to 
constitute  themselves  into  a  limited  company  based  upon  so  many 
shares  which  the  public  is  invited  to  purchase.  In  order  to  achieve 
success  both  for  promoter  and  promoted,  it  is  their  interests  to  magnify 
BH  much  as  possible  the  productive  lowers  of  mines,  or  the  traffic  of 
unmade  railroads  ;  to  overstate  whatever  the  dividend  may  have  been 
which  was  reaped  by  previous  operations,  when  the  company  was  a 
private  concern.  The  reason  for  a  transfer  to  a  society  of  people  who 
can  provide  the  work  with  more  capital  is  that  the  dividends  are 
becoming  so  large  that  it  is  a  shame  that  so  few  should  divide  them. 
— Some  such  reason  as  this  is  given,  and  the  poor  public  believes  it. 

Now,  should  the  machinery  by  which  such  concoctions  are  thrust 
upon  the  country  not  be  overhauled,  and  some  sort  of  check — ^by  the 
state,  if  necessary — be  instituted  for  the  prevention  of  such  wholesale 
Bwindling,  as  such  business  can  come  under  no  other  category  'i  So 
long  as  the  brokers  and  other  agents  get  a  living  by  the  commission 
to  be  had  out  of  the  purchase  or  sale  of  these  shares,  it  cannot  be 
expected  that  they  will  "  cry  stinking  fisL"  It  is  not,  however,  only 
the  public  that  suffers  by  this  system,  in  which  they  are  fleeced,  but  it 
gives  refuge  to  a  number  of  unsound  undertakings,  who  foster  a  class 
of  bad  business,  who  encourage  people  to  engage  in  transactions  of 
which  they  are  entirely  uninformed  Such  companies  do  not  live  by 
the  steady  ordinary  business  of  a  properly  and  judiciously  organized 
bank  ;  a  bank  who  gets  together  a  connection  by  a  long  course  of 
legitimate  business.  A  bank  should  be  able  to  pay  just  as  large  divi- 
dends when  interest  is  low  as  when  it  is  high.  They  do  not  do  so  as 
a  rule,  but  they  should  be  able  to.  A  bank  must  necessarily  be 
better  off  when  its  customers  are  well  off  than  when  they  are  not. 
It  may  appear  paradoxical  to  state  that  when  interest  is  low  a  bank 
is  as  well  off  as  when  it  is  high,  but  every  good  bank  should  prefer 
doing  a  safe  business,  with  certain  and  small  pi-ofits,  than  with  high 
rates  and  large  uncei-tain  pfofits.  A  bank  with  a  cautious  and  sound 
administration,  and  with  sufficient  self-denial  to  refuse  risky  business, 
creeps  up  and  gradually  leaves  its  neighbours  with  their  temporary 
large  profits  to  be  overtaken  by  the  failures  which  are  driven  upon 
them  by  a  crisis,  when  their  previous  gains  are  no  compensation  for 
the  losses  which  may  possibly  wreck  the  whole  concern. 

Can  it  be  in  any  sense  of  justice  or  honesty  a  proper  mode  of 
procedure  when  a  bank  lives  from  hand  to  mouth,  paying  away  all  its 
earnings,  and  hiding  the  weakness  of  its  foundations  from  the  public 


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1056  Oil  Recently  Deeeaned  Banki. 

for  the  sake  of  keeping  up  appearances  1  Many  of  the  banks  and 
finance  companies  are  known  solely  by  the  dividend  they  pay.  The 
public  does  not  take  the  trouble  to  investigate  the  other  features  in 
their  constitutions.  In  this  manner  they  go  on  year  aft^*  year 
pushing  up  the  price  of  their  shares,  possibly  carrying  over  bad  debt^ 
as  good,  and  making  no  attempts  at  a  reserve  fund. 

Times  will  arrive  when  combinations  of  misfortunes  will  visit  every 
department  of  industry  and  interfere  with  the  receipts  which  a  portion 
of  the  community  are  accustomed  to  get,  and  the  consequence  is,  that  if 
the  chain  of  commercial  payments  is  destroyed  in  any  of  its  links, 
interruption  must  ensue  as  with  every  break-down,  and  some  must  be 
losers  until  the  communication  is  properly  re-established.  Just  in 
proportion  to  the  complexity  and  extension  of  the  said  chain  must 
be  the  magnitude  of  the  disaster.  As  banks  are  the  depositaries  of  vast 
sums  of  the  public  wealth,  so  is  it  the  sacred  duty  of  those  intrusted 
with  the  guidance  of  such  establishments  to  act  like  fltzroy  admirals 
over  the  commercial  deep,  and  take  in  all  fine  weather  sails  and 
curtail  their  transactions  when  there  is  the  leaAt  appearance  of  dirty 
weather.  When  the  weather  is  fine  for  banking  then  the  ahareholdeis 
can  have  bonuses,  but  when  safety  must  be  unconditionaUy  guaranteed 
then  they  must  be  content  to  give  up  the  bonus  for  the  common  weaL 

England  drives  very  fast  with  such  business,  but  can  she  take 
much  credit  to  herself  when  she  often  upsets  the  coach  1  The  Bank  of 
France  has  gone  much  more  creditably  on  her  way  than  the  Bank  of 
England.  People  may  be  very  ready  to  come  forward  and  defend 
that  fine  lazy  old  institution  in  Threadneedle  Street,  but  nothing 
defends  suspension  of  cash  payments.  Explanations  only  make  such 
matters  worse. 

Before  any  new  banks  are  started  in  the  United  Elingdom,  a  prospectus 
should  be  drawn  up  informing  the  public  of  what  they  are  going  to  do» 
whether  they  are  going  to  establish  a  bank  for  the  purpose  of 
doing  banking  business,  or  whether  they  intend,  in  the  event  of 
their  being  able  to  obtain  no  deposit  business  and  very  little 
commission,  to  negotiate  the  sale  of  anything  they  can  lay  bands 
on.  It  is  dilficult  to  conceive  anything  more  unsatisfiMtory  than  a 
complete  deception  in  a  matter  of  this  sort.  A  body  of  directors  who 
are  answerable  for  the  conduct  of  the  affisdrs  of  the  bank  are  and  most 
be  in  the  most  disagi*eeable  position  possible  when  they  are  com- 
pelled to  come  before  the  pi-oprietary  time  after  time  with  only  small 
results,  when,  after  having  organised  a  large  company  with  a  big 
capital,  having  appointed  officers,  they  find  l^e  groimd  has  been  pre- 
viously occupied.  The  result  of  this  is,  that  they  gradually  diih 
into  a  sort  of  business  that  has  no  connection  with,  and  notlung  to 
do  with  banking  business.  A  profit  must  be  made  somehow.  JSow 
is  it  to  be  done  I  The  error  is  not  in  the  £a.ct  of  there  being  no  profit 
to  be  made  in  many  of  such  cases,  but  that  attempts  were  made  to 
establish  a  bank  in  quarters  which  could  yield  no  banking  profits. 
No  sufficient  investigation  was  made  to  know  whether  such  a  bank 


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Banking  and  Financial  Anecdotes.  1057 

9as  really  wanted  :  and  so  it  was  trusted  to  chance  with  the  hope 
tint  a  manager  of  genius  would  drag  deposits  out  of  the  clouds. 

It  is  very  certaui  such  scheming  has  been  carried  too  far,  and  the 
public  should  be  told  plainly  that  in  most  parts  of  England  there  is 
m  more  room  for  banks  under  existing  circumstances^  and  that  they 
<mlj  injure  the  prestige  and  position  of  their  countey  commercially 
in  the  eyes  of  foreigners  by  subscribing  to  banks  and  finance  oom- 
|«oies  which  have  been  concocted  mudi  of  late,  and  with  not  many 
exceptions,  to  gratify  the  vanity  of  men  who  will  be  directors.  It 
must  be  boi-ne  in  mind  that  to  acquire  a  thorough  knowledge  of 
bttiHng  a  long  course  of  experience  is  required,  and  that  such  is 
more  than  nil  by  those  who  direct. 
c»re  any  more  banks  are  started,  the  Stock  Exchange  or  some 
committee  should  be  appointed  to  inyestigate  the  affair,  and 
and  inform  tlie  public  if  there  be  a  fair  field  for  the  enter- 
as  Biich  is  frequently  supposed  to  exist  by  the  sanguine  and  in- 
when,  on  the  trial  being  made,  results  such  as  those 
,  have  attended  the  efforts  of  some  of  our  foreign  banks  are  the 
mate  eonflutiion.  Even  if  a  gentleman  joins  a  board  of  direc- 
I  for  love,  it  is  a  [lity  that  the  labour  of  such  love  is  lost. 

A.  C. 


BANKmO  AND  FINANCIAL  ANECDOTES. 
No.  X. 

THE    USE    OF   FICTITIOUS   CAPITAL. 

years  ago  a  hanker  of  the  name  of  B ,  who  had  been  for 

•Ggth  of  time  lio[>elefl3ly  insolvent^  managed  to  keep  his  bank  open 
ti?|>retteniing  to  his  clerks  that  he  had  a  fund  of  £100,000  in  an  ' 
dtest*  widch  wa^  only  to  be  used  on  an  emergency,  so  that  that 
^  jilwayn  figured  in  the  books  as  an  asset.  The  banker  was  one 
aeijsed  with  a  serious  and  fatal  illness.  Previous  to  his  death  he 
liis  eldest  son  to  his  bed-side,  and  requesting  every  one  else  to 
tlie  room,  tihus  addressed  him^* — "  Tom,  I  have  been  able  to  keep 
the  bank  on  the  supposition  that  there  is  .£100,000  in  an  iron 
L  in  the  cellar.  Now,  I  will  tell  you  the  truth,  there  is  no  such 
aar  any  money  whatever  in  that  chest ;  but  take  my  advice,  con- 
» to  liring  forwartl  the  £100,000  as  an  asset  and  prove  under  my 
e  to  an  amount  inclusive  of  that  sum,  which  you  will  find  by  my 
I  have  left  to  you,  but  do  not  on  any  account^  as  you  value  the 
iinoflnce  of  the  liank  and  your  own  position  as  a  banker,  attempt 
vol',  xxv.      ^m  81 


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1058  Btmkinff  ami  Fmatwial  Aneedchi. 

to  open  the  ironohest ;  if  you  do,  and  the  faet  of  there  bdi^  nomoMj 
there  becoming  known,  the  bank  vill  assnredlj  fidL"    Boon  after  the 

death  of  Mr.  B ,  the  son,  thiTilrii>g  that   as  the  old  banker 

had  been  sparing  of  his  money,  there  wa8  in  the  chest  double  ika 
amount  named,  resolved  to  disobey  the  injunctions  of  his  Mur,  by 
opening  the  chest.  He  accordingly  descended  to  the  oellar  alone, 
there,  sure  enough,  was  an  iron  chest,  of  which  he  had  the  key,  bnt 
from  its  rusty  condition,  all  his  attempts  single  handed  to  open  it  were 
in  vain  ;  he  could  not,  therefore,  effect  his  object  without  additi(«»l 
aid ;  he  consequently  called  the  bank  messenger  to  his  aaastanoe,  ud 
with  their  united  efforts  the  chest  was  opened,  when  to  their  nttt^r 
amaaement,  at  lesuit  of  the  messenger,  it  proved  to  be  empty.  Oq  tliij 
discovery,  which  from  the  fact  of  there  having  been  a  witnes  sooa 
became  known,  there  was,  in  banking  phraseology,  *'  a  run  on  tlte 
bank  **  which,  as  prognosticated  by  the  deceased  banker,  soon  at^ 
suapendod  payment. 


THB  TBOUBLES   OF  A   XISER. 

A  EAXEEB,  many  years  deceased,  who  once  carried  on  opewti^*  5- 
Lombard-street,  had  a  coachman  of   the  name  of  Tibbs,  fho  ^ 
grown  gray  in  his  service,  and  who,  knowing  that  his  mtfJ*  -*^ 
for  years  been  accumulating  riches,  thought  he  would  imiutc  ljBi 
although  in  a  small  way.     His  savings,  little  by   little,  increased  -* 
last  to  a  considerable  sum,  which  he  invested  in  the  3  per  Ct-- 
Consols,  and  from  that  time  he  became  a  confirmed  miser.    At  y^ 
he  was  too  old  to  continue  his  employ,  and  retired  on  a  pension.   A; 
the  age  of  72  he  made  love  to  an  old  beggar-woman  about  his  o^i 
age,  who  was  reputed  to  be  rich.     Tibbs  used  to  stop  and  gossip  ^'^ 
her  every  day,  and  as  the  saying  that  •*  the  course  of  true  lore  novtr 
runs  smooth  "  is  as  applicable  to  old  lovers  as  to  young,  so  it  fe^  "^^ 
with  this  ancient  couple.    One  day  Tibbs  had  taken  his  place  as  u^ail 
by  the  side  of  his  intended,  in  George-yard,  Lombard-street,  ▼tt<*'' 
the  old  woman  had  stood  for  years,  when  a  gentleman  passing,  doubt* 
less  taking  Tibbs  for  a  beggar,  gave  him  half-A-aovereign,  probabij 
instead  of  sixpence,  which  he  hastily  pni  in  his  pocket    The  ^ 
woman  said  the  money  was  intended  for  her  and  insisted  uponb^^^ 
it ;  the  old  man  was  equally  as  pertinacioas,  and  refused  to  p^^  ^' 
up^  thereby,  as  the  lawyers  say,  ^' issue  was  joined."    Thiiprf'^ 
quavvol  brought  on  a  cocdneoa  on  the  pari  of  the  old  womaiif  vto»i 


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10S9 


love  of  money  was  stronger  than  her  love  of  Tibbs,  and  she  conse- 
quently  refused  to  have  anything  more  to  say  to  him.  This  was  "  a 
sad  blow  and  great  discouragement"  to'  Tibbs,  who  had  reckoned  on 
adding  to  his  own  store  of  wealth  that  of  the  old  woman,  which 
lie  knew  was  considerable.  But  however  sad  this  result,  there  was 
still  a  lower  depth  of  misery  in  store  for  the  old  miser,  who  related 
to  the  clerks  at  the  bank  the  following  account  of  the  cause  of  his 
unhappiness.  He  began  by  saying  that  one  day  a  gentleman,  who " 
Iiad  known  him  for  some  time,  met  him  in  Lombard-street  and  invited 
liim  to  his  country  house,  as  he,  Tibbs,  was  then  unwell :  the  change 
of  air  would,  his  friend  said,  do  him  good,  and  he  might  stop  as 
long  as  he  liked  without  any  expense.  Tibbs  accepted  the  invitation, 
and  "  about  a  month  after  he  got  me  to  his  house,"  the  old  man  con- 
tinued, "  he  began  to  talk  to  me  about  making  my  "vfr-ill,  and  thought 
I  had  better  allow  him  to  draw  it  up.  I  refused,  when  he  continued 
to  harass  me  about  making  my  will,  when  I  at  last  discovered  his 
object  was,  that  for  his  kindness  to  me  I  was  to  leave  him  all  I 
possessed.  After  the  lapse  of  three  months,  finding  I  would  not  per- 
Baithim  to  draw  up  my  will,  he  said  I  must  leave  his  house,  and  at  the 
same  time  put  into  my  hand  a  bill  of  charges  for  three  months' 
board  and  lodging,  amounting  to  ten  pounds,  which  he  insisted  upon 
my  paying  immediately  I  got  to  town,  or  heVould  send  me  to  prison. *' 
The  old  man,  with  many  lamentations,  began  to  exclaim,  '*  Oh,  what 
shall  I  do ;  I  cannot  pay  it ;  I  shall  be  ruined."  The  clerk  in  the 
hank,  to  whom  this  pitiful  tale  was  told,  said,  "  Tibbs,  if  you  cannot 
piiy  it  without  you  must  sell  stock  to  meet  the  demand,"  which,  after 
many  mental  stiniggles,  he  consented  to  do,  when  the  auiount  was 
I^iid,  and  a  proper  receipt  obtained.  On  the  banker's  clerk  looking 
over  the  items  in  the  bill  he  discovered  tliat  a  charge  was  made  for 
wine  supplied  to  Tibbs,  and  as  the  party  had  no  license  for  selling 
^ine,  Tibbs  was  advised  to  lay  an  information  against  his  quondam 
friend,  which,  with  the  evidence  of  the  bill  and  receipt  in  his  posses- 
sion he  was  enabled  to  do,  when  the  party  was  fined  twenty  pounds 
for  selling  wine  without  a  license,  and  as  half  of  the  penalty  went  to 
the  informer,  Tibbs,  to  his  great  joy,  got  back  his  ten  pounds  and 
reinvested  it.  On  bis  death  it  was  found  that  he  had  left  to  the 
gentleman  wbo  had  put  him  in  the  way  to  recover  the  lost  ten 
pounds,  the  wbole  of  the  Consols  standing  in  his  name. 


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1060  Banking  and  Itnaneial  AneedoUi, 

THE  BAKKER's  clerk  AND  THE  EXCHEQUER  CLERK, 

Since  the  passing  of  the  Act  of  the  4th  &  5th  William  lY.,  cap. 
15,  which  remodelled  the  Exchequer  and  provided  that  all  the  fiitnre 
jjajmeiits  on  account  of  the  public  revenue  should  be  made  at  tbp 
Bank  of  England  or  any  of  its  branches,  the  arrangements  for  the 
receipt  of  the  public  revenue  have  been  greatly  simplified,  and  the 
amount  of  receipts,  averaging  about  one  million  per  week,  is  msde 
available  for  the  public  service  without  delay,  previous  to  which 
the  Receivers-General  of  taxes,  of  which  there  was  one  for  etch 
county,  only  paid  to  the  Government  the  amount  of  their  ooUectioiu 
half-yearly  or  quarterly,  at  the  office  of  the  Tellers  of  the  Exchequer 
at  Westminster,  through  a  London  banker.  On  one  occasion  « 
banker's  clerk,  who  went  to  the  Exchequer  office  to  pay  some 
money,  gave  the  following  description  of  what  occurred. 

In  the  office  there  were  two  young  men,  sprigs  of  nobility,  both 
redolent  of  civet,  one  of  them  was  occupied  in  trimming  his  fii^- 
nails,  and  the  other,  with  his  back  to  the  fire,  was  reading  & 
newspaper.  On  the  clerk's  entrance  the  nail  filer  asked  him  vhc 
he  wanted  ;  this  interrogatory  was  not  put  in  a  very  eonoliatoi^ 
tone ;  however,  on  being  made  acquainted  with  the  nature  c/  i^ 
business,  the  aristocratical  clerk  threw  an  open  book  on  the  co«a:<  '- 
when  the  following  amusing  colloquy  ensued  : — 

Aristocrat  (in  the  same  haughty  tone  he  at  first  adopted)  flu^ 
"  Make  the  entry." 

Clerk — "  What,  am  I  to  write  in  your  books  ?  Cannot  you  write  V 

Aristocrat — "  Make  the  entry,  sir,  and  let  me  have  none  of  j>>ct 
impertinence." 

Clerk — "  Well,  if  I  must  do  your  work,  give  me  a  pen."  (The  pn 
happened  to  be  a  very  bad  one,  and  he  made  the  entry  in  what  the 
aristocrat  said,  was  <<  a  bold  impudent  hand.  ") 

Aristocrat  (with  passion  and  excitement) — ^<' Cannot  yoo  write 
better  than  that  1  " 

Clerk  (calmly)—**  Yes,  with  a  better  pen ;  but  I  believe,  air,  thaw 
is  no  Act  of  Parliament  to  compel  a  man  to  write  well ;  I  wish  therv 
was,  then  you  would  have  been  taught  to  write.  When  I  go  into  » 
carpenter's  shop  and  find  all  his  tools  rusty  and  blunt^  I  set  him  dovn 
as  a  bad  workman  ;  you  will  know  how  to  apply  this  rensaik.  * 

Aristocrat — "  You  are  a  very  impertinent  fellow  ;  pay  the  fee  of 
5s.  and  go  about  your  business.'' 

^Clerk— «  Well  that's  a  pretty  joke ;   no  I  «m  not  only  to  do  your 


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Banking  and  Financial  Anecdotes^  1061 

work,  but  for  permission  to  do  it  am  to  pay  you  5s, ;  that  beats  my 
gFandmother,  and  she  was  clever/' 

Aristocrat — "  I  shall  make  it  my  business  to  acquaint  your  em* 
ployers  with  your  misconduct.'' 

Clerk — ''  And  I  shall  make  it  my  business,  as  a  tax-payer,  to  insist 
upon  your  employers  giving  you  something  to  do,  or  discharging 
you.     I  wish  you  good  day." 

The  two  young  men  were  then  left  to  chew  the  cud  of  their  resent- 
ment against  this  insolent  banker's  clerk,  as  they  termed  him. 

The  banker's  clerk  kept  his  word,  he  brought  under  the  notice  of 
the  proper  authorities,  the  particulars  of  the  scene  above  described, 
and  very  soon  after  these  useless  offices  were  abolished.  The  two 
Tellers  of  the  Exchequer,  whose  duties,  like  those  of  their  clerks, 
were  mere  sinecures,  were,  as  is  usual  on  the  ratirement  of  a  public 
official,  rewarded  with  a  pension.  One  of  them,  the  Lord  Camden, 
refased  to  accept  the  pension,  having  considerable  doubts  as  to  the 
propriety  of  receiving  a  pension  of  £5,000  from  the  public  purse,  for 
services  never  rendered  or  even  required ;  the  minister  of  the  day  being 
doubtless  apprehensive  that  such  refusal  on  the  part  of  his  lordship 
might  establish  a  bad  precedent,  insisted  upon  carrying  out  the 
decision  of  the  Government,  by  paying  the  pension ;  his  lordshijv 
however,  true  to  his  original  determination,  on  receipt  of  the  pension 
repaid  it  to  the  Exchequer  every  half-year.  This  patriotic  proceed- 
ing reflected  the  highest  credit  on  his  lordship,  and  was,  without 
doubt^  the  brightest  ornament  ill  his  coronet. 


CUTUNa  LIGHT  SOVEBEIQKS. 

The  Bank  of  England  are  in  the  habit  of  cutting,  with  a  .pair  of 
shears,  all  the  light  sovereigns  offi^red  to  them  by  the  public,  and  on 
a  recent  occasion  a  gentleman  having  had  a  sovereign  out  in  the 
usual  manner,  and  not  liking  the  process,  remonstrated  in  the  fol- 
lowing lines : — 

A  soTereign  on  this  day  was  tried, 

And  s^Ues  the  joiy  were ; 
Jostioe  was  oonr.sel  on  its  side^ 

Bnt  shears,  the  jndge,  sat  there. 

The>tiyy  yerdict  gaye ;  and  said 

The  piece  was  good,  though  light, 
For  wear  the  law  fulowance  made, 
To  cot  it  waa  not  right. 


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1062  Banking  and  Financial  AnecdaUt. 

T%e  judge  cried  out  in  horrid  tury. 
To  hear  scales  talk  of  law, 
**  The  fact  alone  Ib  for  a  jniy/' 
Then  snappM  it  in  its  jaw. 


THE  DISAPPOINTED  BANKER  S   CLERK. 

The  following  incident  whicli  occurred  some  years  ago  will  show  the 
manner  in  which  a  banker's  clerk,  who  aspired  to  the  hand  of  his 
master's  daughter,  was  treated.  The  banker,  who  resided  some  ten 
miles  from  London,  was  in  the  habit,  every  Saturday  afternoon,  of 
taking  home  with  him  a  small  bag  of  silver  with  which  to  pay  his 
labourers.  On  several  of  these  occasions  his  daughter,  whom  the 
banker  often  brought  to  town  with  him,  would  take  charge  of  the 
bag  and  would  give  the  clerk  instructions  as  to  what  denominadon  of 
silver  money  would  be  required.  The  young  lady  being  very  beaatiftl 
captivated  the  heart  of  the  young  clerk,  whose  attentions  to  her 
became  so  pointed  as  to  attract  her  notice,  but  instead  of  redprocadii^ 
notwithstanding  his  outward  man  was,  from  his  handsome  appe&iaiK^ 
well  calculated  to  captivate  the  heart  of  the  daughter  even  of* 
millionaire,  she  showed  she  was  somewhat  annoyed,  but  toui  ^ 
further  notice  of  it,  leaving  it  to  chance  to  cure  him  of  his  UBJ^" 
fiable  presumption,  and  it  was  not  long  before  a  cure  was  efTectei 

On  one  of  the  usual  Saturdays,  the  young  lady,  with  a  most 
gracious  smile,  gave  the  clerk  the  empty  bag,  accompanied  by  a  [aece 
of  love  ribbon,  instead  of  the  usual  string,  to  tie  up  the  bag.  The 
substitution  of  the  love  ribbon  for  the  ordinary  string  was  constrced 
by  the  romantic  young  derk  into  a  certainty  that  his  affection  v^ 
yeciprooated ;  he,  with  more  zeal  than  discretion,  addressed  a  l<s^ 
letter  to  the  yoimg  lady,  filled  with  the  most  glowing  acooonts  of 
bis  passion,  and  ending  with  a  request  that  she  would  meet  him  os 
the  following  Sunday  at  the  entrance  of  her  Other's  park»  at  dttsk> 
and  thus  afford  him  the  satisfaction  of  personally  declaring  bis  attach* 
ment  for  her. 

The  young  lady,  very  properly,  showed  the  letter  to  ber  fither, 
who  read  it  with  the  utmost  astonishment,  saying,  ''  Leave  iMs  to 
me,  my  dear,  I  will  set  it  right."  Accordingly,  on  the  Moodsj 
morning,  he  sent  for  the  clerk,  and  produdng  the  letter  asked  hxm  if 
it  was  his  hand-writdng.  The  clerk  admitted  that  it  was,  and  wts 
about  to  enter  into  an  ezplaoation,  but  was  stopped  by  the  banker. 

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Banking  and  Financial  Aneedoies. 


1063 


▼ho  said,  **Be  so  good,  sir,  as  to  draw  a  ofaeqve  for  the  amoant  tf 
salary  due  to  you  up  to  thia  day,  with  the  addition  of  three  months." 
'This  having  been  done,  the  banker  signed  it  and  returned  it  to  him, 
telling  him  to  present  it  for  payment  at  the  counter,  adding  theSe 
cutting  remarks—'^  As  I  have  no  intention  of  allying  my  daughter 
to  one  of  my  clerks  you  must  at  once  leave  my  employ,  for  notwith- 
stiinding  you  have  been  with  us  some  years,  yet,  under  existing  cir- 
cumstances, I  can  very  well  dispense  with  your  future  services  :  you 
miiy  leave."  This  was  a  sad  blow  and  great  discouragement  to  the 
amorons  banker's  derk,  who  not  only  lost  his  mistress  but  his  situa- 
tion also,  and  for  no  other  cause  than  that  of  falling  in  love  with 
hh<  master's  daughter. 


ORIGIN  OP   MESSRS.    OVEREND,     GURNEY   AND   CO.,    THE   DISCOUNTERS. 

The  original  name  of  the  firm  was  Richardson,  Overend  and  Gumey, 
all  belonging  to  the  Society  of  Friends.  Mr.  Richardson  commenced 
his  career  in  life  as  a  clerk  in  the  house  of  Messrs,  Smith  and  Holt,  bill 
brokers,  in  Old  Broad  Street.  The  late  Mr.  John  Overend  was  a 
cashier  in  the  banking  house  of  Sir  James  Esdaile  and  Co.,  Lombard 
Street,  at  the  same  time  that  Mr.  Samuel  Gumey  was  in  Fry  and 
Chapman's  Bank,  of  Mildred's  Court.  On  the  visits  of  the  latter  to 
Es<iaile's  Bank,  Mr.  O  vcrend  used  to  make  a  j  oke  of  the  peculiar  shrill  tone 
of  voice  in  which  Mr.  Gumey  used  to  address  him.  Mr.  John  Overend 
had  been  a  clerk  at  Esdaile's  Bank  for  many  years,  and  for  some  time 
previously  to  his  leaving  the  bank  was  in  the  habit  of  carrying  on 
l''L>iness  privately  as  a  bill  broker,  having  an  office  in  a  court  out  of 
^A)mhiIL  Finding  his  business  increase,  it  is  said,  he  one  Jay  told 
Mr.  Esdaile  he  must  leave  them,  he  had  so  much  business  of  liis  own 
that  he  could  no  longer  attend  to  the  business  of  the  banking  house. 
Mr.  Esdaile  is  said  to  have  replied,  "  We  were  just  going  to  tell  you 
the  same  thing,  Mr.  Overend."  Mr.  Richardson  at  the  same  time  left 
Messrs.  Smith  and  Holt  and  joined  Mr.  Overend ;  they  subsequently 
took  Mr.  Samuel  Gumey  into  the  firm,  and  thus  was  formed  the  large 
and  wealthy  house  of  Overend,  Gumey  and  Co.,  now  merged  into  a 
limited  joint-stock  company  under  the  same  title.  There  are  two 
classes  of  persons  in  this  country  whose  business  is  almost  exclusively 
confined  to  dealing  in  bills  of  exchange,  viz.,  bill  brokers  and  foreign 
exchange  brokers;  tiie  former  may  be  said  to  be  the  middle partf 


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1064  Fluctuation  of  Banking  ProJiU  in  London. 

betweea  thoBe  who  have  money  to  lend  and  ihoae  wko  wiaili  to  borrow. 
Thej  were,  on  their  first  introduction,  barelj  tolemted,  bat  from  the 
high  character  the  aboye-named  firm  has  sustained,  a  bill  broker 
may  now  walk  through  Lombard  Street  with  his  head  ciect,  and 
hold  himself  equal  to  the  greatest  among  the  banking  and  financial 
community. 


THE  FLUCTITATION  OF  BANKING  PBOFITS  IN  LONDON. 

(From  the  Economist) 

One  of  the  most  important  and  best  results  of  tbe  development  of 
the  system  of  joint-stock  management  will  be  a  more  aocun^  know- 
ledge than  we  now  have  of  the  profitableness  of  different  trades,  snA 
the  general  profit  of  all  trade.     The  accounts  of  a  single  trader  or  of 
a  private  partnership  are  shrouded  in  mystery ;  there  is  no  good  Fet»& 
for  telling  them,  and  there  are  seversd  good  reasons  for  not  tdiii^ 
them.     But  the  accounts  of  a  company  in  which  a  considerable  nombef 
of  shareholders  are  much  interested  must  show  to  those  sharehdAr^ 
the  most  material  facts  relating  to  the  business.     We  are  yet»  b»»y' 
ever,  fio*  from  such  a  desirable  state  of  things.     The  only  consdien^^ 
trade  which  has  been  long  enough  under  joint-stock  managematt* 
tell  us  much  is  the  trade  of  baulking,  and  even  as  to  tbis  tbt  po- 
lished accounts  of  most  banks  are  still  very  imperfect.     Moetbifi^ 
persist  in  concealing  the  amount  of  their  acceptanoesy  and  wkik  iti.*- 
uncertain   whether   the   "  liabilities "   vaguely  classed   togetker  tf« 
composed  of  paper  issued  by  the  bank,  or  money  leR(  with  the  bank, 
no  sure  deduction  as  to  the  nature  of  their  business  can  be  n^ 
With  sucb  a  faxdt  in  the  data,  no  conclusion  can  hope  to  be  correct 
The  London  and  Wcstnunster  Bank  has  set  tho  example  of  diTidisg 
its  deposits  from  its  acceptances,  but  many  banks  of  the  greatest  iin- 
portance  have  as  yet  not  followed  its  example.     In  the  end  tiie  pa^ 
will  prefer  a  bank  in  which  the  accounts  are  such  as  they  ong^t  to  be, 
to  a  bank  whose  accounts  are  such  as  they  ought  not  to  be. 

But  though  the  natui-e  of  the  business  carried  on  by  these  banks  i> 
not  told  us,  its  profits  are  told  us.  We  do  not  know,  as  well  >s  ^^^ 
should,  how  the  money  is  made,  but  we  are  very  fiurly  and  fully  told 
what  money  is  made ;  and  it  is  very  curious  to  trace  in  this  patent 
record  the  varying  profitableness  of  monetary  operationsL  The  fol- 
lowing  are  the  profits  earned  by  the  Icng-established  joint«tock  bank> 
of  London  during  the  last  half-year,  and  we  purposely  ocmfine  osr 
attention  to  these  comparatively  old  banks  of  acknowledged  cttdik 
to  avoid  the  unpleasant  questions  which  embarrass  the  oonadeiatioo 
of  certain  of  the  new  banks,  and  the  still  greater  odium  of  aanng 
that  one  new  bank  is  of  established  credit  and  that  another  is  not  i«^ 


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JFhictuaiion  qf  Banking  ProfiU  in  London.  1065 

PBonrs  Eaxnvd  ik  the  Half-t«ab  BKDnra  June  30, 1865. 

London  and  Westminster  Bank          ...  £151,698 

Union  Bank        144,879 

London  Joint-Stock  Bank        127,597 

City  Bank           34,108 

Bank  of  London ...  39,219 

£497,401 

Whereas  in  the  previous  half-year  the  corresponding  amounts  wore — 

London  and  Westminster  Bank          ...  £170,995 

Union  Bank        180,195 

London  Joint-Stock  Bank        156^50 

City  Bank           26,116 

Bank  of  London 54,301 

£587,757 

And  this  is  the  more  remarkable,  because  the  London  and  West- 
minster Bank,  whose  accounts  are  full  and  conclusive,  show  an  increase 
of  £1,000,000  in  the  deposits,  and  likewise  a  large  diminution  in  the 
expenses.  In  the  case  of  this  bank  at  least  the  net  profit  has  dimin- 
ished, though  the  means  of  making  it  have  augmented,  and  thougli 
the  cost  of  making  it  has  declined.  In  the  tase  of  this  bank,  too,  the 
cause  of  the  diminution  is  not  to  be  looked  for,  as  might  have  been 
at  first  fimded,  in  the  bad  debt  account,  for  it  was  expressly  stated 
at  the  meeting  that  the  bad  debts  of  the  past  half-year  have  not 
much  exceeded  the  average  of  many  years  past.  The  figures 
given  above  would  seem  to  indicate  that  the  City  Bank  was  an 
exception  to  the  otherwise  geneitJ  diminution  of  profits  during  the 
present  half-year.  But  such  does  not  appear  to  be  the  case.  Tliat 
bank  deducted  at  Christmas  £30,000  from  its  profits  to  meet  *'  possible 
claims,"  and  so  large  a  sum  having  been  deducted  from  the  profits  of 
the  Christmas  half-year,  no  unusual  deduction  has  been  necessary 
firom  the  profits  of  the  June  half-year. 

The  true  reason  of  this  great  diminution  of  the  profits  is  the 
redaction  in  the  value  of  money.  A  large  London  joint-stock  bank 
has  a  considerable  sum  of  money  for  which  it  pays  nothing,  and  also 
a  very  great  sum  on  which,  when  money  can  be  lent  at  8  or  9  j^er 
cent.,  it  only  pays  5  per  cent.  Up  to  1859  the  joint-stock  banks 
used  to  allow  for  money  at  interest  1  per  cent,  below  the  Bank  of 
£ngland  rate,  however  high  that  rate  might  be.  But  they  found  that 
such  a  rate  was  wholly  unsuitable  to  a  keen  crisis.  At  such  a  time 
unusual  sums  of  money  must  be  kept  at  hand  at  a  low  profit,  or  at 
no  profit,  and  it  is,  therefore,  impossible  to  give  extravagant  rates 
for  money  which  may  be  rapidly  withdrawn.  For  money  that  is 
deposited  for  considerable  periods  of  time,  the  joint-stock  banks,  as 
w^  as  the  bill-brokers^  gave  in  the  autumn  of   1864  con^derable 


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1 


1066  HuHuaiiM  0f  Banking  Pr^fiU  in  London. 

ratesy  bat  for  nxmej  Mt  only  on  the  ordmary  terms  tbey  did  not  give 
more  than  5  per  cent.  Consequ^itly  they  had  an  unusual  opportunity 
of  making  profit;  they  could  lend  a  lai^  sum,  for  which  they  paid 
nothing  or  a  low  rate,  at  Teiy  high  rates.  And  if  they  kept  dear  of 
had  debts  they  made  great  profits.  But  in  the  last  half-year,  when 
the  rate  of  interest  was  very  low,  they  had  no  such  opportunity. 
They  could  not  charge  what  they  had  charged  last  autumn,  and 
though  they  paid  less  for  much  of  their  money,  the  compensation  wu 
not  sufficient. 

It  is  instructive  to  compare  these  accounts  with  those  of  this  time 
last  year,  and  it  will  probably  surprise  some  of  our  readers  to  find  that 
in  some  banks  at  least  the  profits  were  very  much  higher  in  June, 
1864,  than  either  in  December,  1S64,  or  June,  1865,  and  that  the 
aggregate  of  all  of  them  was  somwhat  greater.     The  figures  are  : — 

Pkofits  Earned  ik  Half-tsak  Ending  June  30,  1864. 


London  and  Westminster  Bank 

Union  Bank  • 

Joint-Stock  Bank 

City  Bank  

Bank  of  London    


.£234,032 
.  154,371 
.  1S4,477 
.  48,588 
.      58^1 

£619,769 


The  reason  of  these  high  profits  was  that  the  half-year  ending  June 
30th  was  even  more  favourable  to  banking  than  the  half-year  wiiicb 
succeeded.  In  the  spring  there  was  a  high  rate  of  discount,  and  is 
the  autuinn  a  still  higher  i-ate ;  but  there  was  a  disadvantage  in  the 
autumn  which  there  was  not  in  the  spring.  There  was  not  a  panic, 
but  there  was  a  fear  of  a  panic.  A  great  many  people,  not  without 
experience,  expected  that  October  and  November,  1864,  would  have 
been  more  severe  than  they  were,  though  they  brought  sufiTering 
enough.  Jf  the  Bank  of  England  had  acted  as  it  did  in  18o7, 
unquestionably  18G4  would  have  been  worse  than  1857.  With  this 
apprehension  in  their  minds  it  was  not  possible  for  bankers  to  use 
their  i*esources  as  freely  and  boldly  in  the  autumn  as  they  used  them 
in  the  spring ;  and  though  in  many  cases  their  deposits  were  mor* 
and  the  current  rates  uf  discount  higher,  yet  the  net  result  was  not  sod 
good.  If  a  banker  is  afraid  to  lend  his  money,  it  is  of  no  ose  to  him 
to  have  much  of  it,  or  that  the  nominal  rates  for  it  are  high. 

It  is  to  be  observed  that  the  causes  which  make  banking  profits  so 
fluctuating  in  London  do  not  apply  with  the  same  force  to  many  j«rt8 
of  the  country,  especially  to  the  quieter  parts.  The  rate  of  interest 
does  not  change  in  those  districts  with  the  same  rapidity  upon  any 
securities.  And  the  securities  on  which  a  banker  lends  in  such  places 
are  not  those  which  would  be  very  acceptable  in  the  London  market 
at  all.  Xhe  London  and  Westminster  must  discount  at  some  approxi- 
mation fo  the  Bank  minimum  the  mass  of  the  bills  which  come  bdbre 


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Pro9peet%  of  the  Money  Markti.  1067 

tiiem ;  but  in  many  diarfcricts  of  the  ootmtiy  no  banker  erer  thinks  of 
charging  oommon  bills  less  than  5  per  cent.  The  tradesman  for 
-whom  he  discounts  is  not  known  in  the  London  market^  and  the  bills 
he  bring»  would  be  taxed  there  a  good  deal  more  than  the  Bank 
nunimuni.  A  low  rate  of  money  in  London,  therefore,  is  not  at« 
tended  by  equal  cheapness  in  the  country;  and  a  high  rate  of  money 
is  not  attended  by  equal  deameas  in  the  country.  The  countxy 
banker  cannot,  or  thinks  he  cannot,  run  his  rates  up  to  the  London 
minimum  for  first-rate  bills,  still  less  to  the  charge  which  would  be 
made  in  London  for  the  sort  of  paper  which  fills  a  country  banker^s 
bill-case.  Both  ways  country  banking  is  a  trade  of  steadier  profits; 
80  much  cannot  be  made  of  money  when  it  is  at  the  highest  value, 
and  more  can  be  made  of  it  at  its  lowest  value. 


THE  PROSPECTS  OF  THE  MONET  MARKJET. 

The  money  market  is  now  in  a  quiescent  state.  The  weather 
has  not  been  all  that  could  be  wished  for  the  crops ;  still,  at 
present  it  is  not  bo  doubtful  but  that  the  end  of  the  harvest,  if 
the  season  improves,  will  turn  ont  satisfactorily. 

The  trade  of  the  country  is  sufficiently  healthy  to  keep  np  a 
ipod  inquiry  for  capital,  and  the  late  elections  nave  absorbed 
some  of  the  surplus  hitherto  available  in  the  general  market. 
Fair  rates  for  discount  are  consequently  sure  to  be  supported, 
but  it  is  now  thought  we  shall  not  see  a  further  advance.  But 
the  great  problem  to  be  solved  is  the  extent  to  which  shipments 
abroad  may  be  made,  either  to  India,  Egypt,  Spain,  or  in  any 
other  direction. 

The  money  market  is  more  capable  than  ever  of  affording 
supplies,  for  although  we  have  had  an  enormous  crop  of  new 
companies  the  majority  have  been  unsuccessful,  and  while 
small  deposits  have  been  locked  up,  directors  and  others  find 
great  difficulty  in  obtaining  calls.  The  failures  in  the  East 
India  and  other  branches  in  the  early  part  of  the  year  have  so 
checked  the  desire  to  adventure  in  produce  that  for  the  next  few 
months  it  is  not  probable  there  will  be  any  revival.  The  cir- 
cumstance also  tnat  France  has  been  very  free  from  an  influx 
of  new  companies,  and  that  her  resources  nave  not  been  in  any 
degree  encroached  upon  by  large  withdrawals  of  capital  for  any 
purpose,  a  fact  proved  by  the  highly  prosperous  situation  of  her 
buluon  reserves,  has  tended  to  give  confidence  here  and  allayed 
the  alarm  osnally  felt  at  this  period  concerning  any  irregular 
adverse  bnUion  movement. 


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1068  American  Vieto  qf  Stock  Jobbing. 

The  mania  for  companies  ia  the  ITnited  Kin^om  itself  is 
fast  waning,  and  though  it  is  still  generally  beheTed  that  the 
*'  limited  liability  **  principle  is  destined  to  make  much  further 
progress,  the  late  confusion  produced  at  the  Stock  Exchange  by 
the  refusal  of  the  Committee  to  grant  settlements,  has  caused 
most  parties  to  fight  shy  of  speculative  operations,  in  amving 
at  a  determination  to  avoid  transactions  of  the  sort,  a  giest 
blow  will  be  given  to  illegitimate  transactions,  and  the  sooner 
will  the  dealers  turn  to  a  healthier  course  of  business. 

The  advent  of  fine,  seasonable  weather  is  now  alone  required 
to  increase  confidence  in  the  future.  The  money  market  is  nor 
comparatively  in  a  satisfactory  state,  and  it  is  to  be  expected, 
looking  to  the  gradual  influx  of  bullion,  and  the  return  of  coin 
from  the  country,  that  there  will  be  no  necessity  for  any  ad- 
vance. If,  with  the  current  of  business  in  its  present  direction, 
and  there  can  be  little  or  no  positive  expansion,  the  tenns  for 
discount  still  remain  moderately  cheap,  we  are  likely  to  get 
through  the  remainder  of  the  year  without  any  pressing  d2- 
culty,  and  free  from  the  stringency  which  has  b^n  piedic^ 
in  certain  quarters.  Still,  if  any  rise  in  the  rate  of  discoas^ 
were  to  occur,  it  would  not  occasion  us  any  serious  alann.  l^ 
everyone  is  now  so  thoroughly  prepared  for  oontingenciesof  tbr 
kind  that  the  event  would  not  produce  surprise  even  insnt^^. 
and  third  rate  quarters.  On  the  Continent,  the  sopi^J.^^ 
money  is  abundant  in  most  directions,  the  absence  of  ' 
excitement  creating  a  favourable  effect. 


AMERICAN  VIEW  OF  STOCK  JOBBING. 

{From  the  New  York  Commercial  aiid  Financial  Jomnyd.) 
Stock  jobbing  thrives  best  in  times  of  civil  commotion,  wh&i  politioil 
changes,  actual  or  contemplated,  exert  a  powerful  iufluoioe  npoQ  ^*' 
prices  of  securities.  It  took  its  rise  in  England  after  the  fandiog  ^^ 
the  public  debt  by  William  III,,  for  previous  to  that  time  moMTcb* 
were  in  the  habit  of  ignoring  and  repudiating  their  obligatioos  b1u> 
gether  if  it  suited  their  purpose — as  of  course  it  usually  did.  Wifl»n- 
I.  introduced  into  England  the  practice  of  paying  the  public  debi  acd 
the  charter  granted  by  him  to  the  Bank  of  £higland  nunks  the  mri^ 
instance  in  any  country  of  a  national  debt  bequeathed  to  portenty- 
This  was  iu  1694.  Jobbing  in  the  fimds  immediately  began.  'Clung^ 
Alley'soon  resounded  with  that  vociferation  and  din  that  distingv^^ 
our  Broad  Street  to-day  ;  and  the  new  beginners  left  but  few  arts  lor 
us  to  invent  in  their  crafty  trade.  Reports  and  romoars  were  tf 
plentiful  as  now.     Battles  were  won  and  lost,  peace  declaied,  tovu« 


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American  Vine  of  Stock  Jobbing.  1069 

beseiged,  and  whole  navies  drowned  in  tlie  conrBe  of  a  few  boiirs ;  and 
history  is  even  now  conned  by  the  tinanthentic  events  they  planned. 
Variations  in  the  prices  of  stocks  wei-e  sometimes  effected  by  these 
means  to  the  extent  of  two  or  three  hundred  per  cent,  in  a  single 
afternoon.  Norwere  these  questionable  arts  alone  employed.  Correct 
intelligence,  then  as  now,  became  the  source  of  immense  profit  to  its 
possessor,  and  post  couriers  and  expresses  were  put  in  requisition, 
and  employed  to  great  advantage. 

Among  those  who  invested  capital  in  these  now  familiar  institu* 
tions  was  Sir  Henry  Fumese,  a  director  of  the  Bank  of  England. 
Throughout  Holland,  Flanders,  France,  and  Germany  he  maintained 
a  complete  system  of  private  news  posts.  Intelligence  of  the  many 
battles  fou;^ht  at  this  period  was  received  fii'st  by  him ;  and  by  his 
enterprise  the  fall  of  Namur  added  largely  to  his  profits.  So 
superior  were  his  means  of  inteUigence  that  on  one  occasion  William 
presented  him  with  a  diamond  ring  as  a  reward  for  important  and 
early  information.  But  even  for  this  man  the  temptation  to  deceive 
was  too  great,  and  fabricated  news  and  false  rumours  added  as  much  to 
his  purse,  as  the  tnie.  Another,  the  wealthy  Medina,  accompanied 
Marlborough  in  all  his  campaigns,  administered  to  the  avarice  of  the 
great  captain  by  an  annuity  of  £6,000  per  annum,  and  repaid  him- 
self by  the  employment  of  expresses  containing  intelligence  of  those 
great  battles  which  fire  the  English  blood  when  they  are  named. 
Thus  Eamilies,  Oudenarde,  and  Blenheim  imparted  as  much  money 
to  the  purse  of  the  wealthy  Hebrew,  as  they  did  glory  to  the  arms 
of  England. 

The  innovations  of  modem  times  have  changed  all  this  :  not  that 
intelligence  of  important  events  is  any  less  monopolized  now  than 
it  was  then,  but  only  as  regards  the  means  of  transmitting  it. 
Expresses  and  post  horses  are  now  confined  to  the  drudgery  of 
carrying  parcels  and  trunks,  while  the  steam  engine  and  the  tele- 
graph perform  the  more  expeditious  and  important  work  of  trans- 
porting persons  and  transmitting  thought.  But  stock  jobbery  is  just 
ns  much  practised  as  ever. 

A  system  of  telegraphy  extends  all  over  the  United  States  which 
is  in  ivers  ways  made  subservient  to  the  plans  and  purposes  of  the 
same  class  of  men.  The  intelligence  which  we  read  every  day  in  the 
newspapers  is  collected  by  the  numerous  agents  and  reporters  of  the 
New  York  A&sociated  News  Company,  who  are  stationed  all  over  the 
country  and  have  ofiices  at  all  the  telegraph  stations.  Sometimes  this 
information  is  gratuitously  offered  to  the  company,  as  was  the  case 
when  the  frightened  nmaways  at  the  first  battle  of  Bull  Bun  rode 
into  Washington  at  the  top  of  their  speed  and  announced  tliat  the 
country  was  lost ;  sometimes  it  is  collected  by  the  agent  of  the  com- 
pany, as  when  the  agent  at  Washington  telegraphed  the  news  of 
President  Lincoln's  assassination ;  and  sometimes  it  is  clipped  by  them 
from  newspapers.  Often  the  company  does  not  obtain  the  latest  in- 
telligence, and  the  public  are  thus  kept  many  hours  and  sometimes 


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1070  American  View  <^  Stock  Jobbin§. 

dftys  behind  time  in  learning  news  which  has  all  the  while  been  in 
private  hands ;  but  this  is  not  often  the  case,  and  man j  largB  operators 
find  it  to  their  interest  to  employ  the  company  to  furnish  them  with 
news.  This,  of  course,  does  not  exclude  them  from  obtaining  extra 
information  by  any  method  they  please. 

Since  the  oondusicMi  of  the  war,  it  is  evident  that  every  item  of 
information  likely  to  produce  any  commotion  on  the  Stock  Exchange 
must  either  have  originated  in  New  Tork,  or  come  from  Washington, 
or  New  Orleans,  or  Europe.  The  first  may  be  considered  the  financial 
centre  of  the  North,  the  second  is  that  of  Use  Union,  the  third  is  that 
of  the  South,  and  the  fourth  is  that  of  the  world.  As  the  lines  from 
Washington  and  New  Orleans  are  both  under  strict  nulitaiy  surveO- 
lance,  it  is  interesting  to  glance  at  the  small  chance  there  is  of  telegrams 
coming  fi*om  those  points  without*  first  being  made  use  of  by  some  of 
the  numerous  hands  through  which  they  all  are  obliged  to  pass. 

First  there  is  the  censor,  then  his  deputy,  then  the  operaior,  theu 
the  operators  at  intermediate  points,  then  the  receiving  operator,  then 
the  messenger,  then  the  agent  of  the  Associated  Press  and  his  deputies, 
and,  finally,  the  messengers  who  convey  the  intelligence,  at  last,  py 
the  offices  of  the  various  newspapers  and  private  parties  for  which  it 
is  intended. 

It  is  mere  fatuity  to  suppose  that  these  persons  are  such  mere 
machines,  such  devotees  to  duty,  so  indifierent  to  making  a  fortune, 
so  ignorant  as  not  to  perceive  the  ready  means  at  their  disposal,  or  m 
incorruptible  as  not  to  employ  these  means  to  their  own  profit  wheih 
ever  occasion  offers.  Almost  a  convincing  instance  of  the  existence  c^ 
this  kind  of  stock  jobbery  is  fiimished  by  the  late  *' sensation  "  horn 
New  Orleans  and  Cairo,  concerning  Mexican  complications. 

The  war  being  ended,  and  restrictions  to  personal  liberty,  trade,  and 
intercourse  being  in  course  of  removal  as  fast  as  the  Executive  can  be 
made  aware  of  ti^eir  existence,  little  could  happen  to  depress  ilve- 
twenties  in  Europe  or  i^se  the  price  of  gold  here,  except  an  unreason- 
able continuance  of  arbitrary  restraints  or  a  foreign  war.  The  restz^unt 
sensation  having  been  pretty  well  tried  and  found  to  be  insufficient, 
the  stock  jobbers  determined  upon  a  foreign  war.  Accordingly 
rumours  of  complications  in  Mexico  found  their  way  across  the  telegraph 
wire  almost  as  soon  as  its  continuity  between  this  and  New  Orieans 
was  established.  Next  came  a  report  of  100,000  United  States  troops 
being*  in  Texas  to  menace  the  Mexican  frontier.  A  good  deal  of 
ingenious  stuff  about  the  Monroe  Doctrine  was  sandwidied  in  between 
this  rigmoi  ole  news,  and  when  the  affair  was  ripe,  and  the  gold  market 
in  a  state  of  vacillation,  news  was  flashed  from  Cairo  that  30,000 
Americans  had  been  driven  out  of  Mexico,  tiiat  there  was  an  insorrec- 
tion  of  the  Church  liMstion,  that  an  army  of  Americans  stood  ready  to 
avenge  their  countiymen  as  soon  as  the  government  gave  the  signal ! 
and  the  result  was  that  gold  went  up  three  per  cent,  in  one  evoiing 
and  the ''  job  "  was  suocessfuL  Next  day  it  came  out  that  there  were 
only  17,000  U.  S.  troops  in  Texas,  of  whom  6,000  were  n^iroea;  that 


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The  Commerce  of  India.  1071 

there  have  never  been  over  5,000  Americans  in  all  Mexico  at  any 
time  during  the  past  few  years,  that  not  a  man  of  them  had  ever  been 
"driven  out,'*  except  for  such  reasons  as  would  have  "  driven  "  them 
out  of  any  other  country,  that  no  "  Church  fioction  "  had  rebelled,  and, 
to  crown  all,  that  such  news  as  reported  could  not  have  had  time  to 
come  by  the  route  reported.  As  a  necessary  consequence,  gold  went 
back  to  143  1-2  again,  and  Broad  Street  quieted  down. 

With  proofs  of  the  complicity  of  the  telegraph  in  the  arts  of  stock 
jftbbery  it  behoves  operators  in  gold  and  stocks  to  be  careful  lest  they 
allow  themselves  to  be  deceived  by  false  or  supposed  news. 


THE  COMMERCE  OF  INDIA. 

The  report  of  the  Kurrachee  Chamber  of  Commerce,  presented  at 
their  annual  meeting  in  June,  furnishes  some  interesting  points  iu 
connexion  with  the  existing  commerce  of  India.  The  primary  topic 
is  the  virtual  failure  of  the  Indo-European  telegraph  line  through  the 
laismanagemen^  that  characterizes  every  part  of  it,  and  especially  the 
"  lamentable  and  utter  inefficiency  of  the  portion  between  Kurrachee 
and  Bombay."  It  often  takes  longer  for  a  telegram  to  travel  between 
Kurrachee  and  Bombay  than  it  does  to  come  from  London  ;  mutilations 
and  total  loss  of  messages  are  of  common  occurrence,  and  it  is  a  suspicious 
Uct  that  "  the  graver  delays  took  place  in  the  month  of  August  when 
intimation  of  the  crisis  in  the  cotton  market  was  first  reeeivjed  at  Galle." 
The  export  duty  on  saltpetre  is  the  next  evil  for  animadversion,  and 
the  Chamber  have  adopted  a  memorial  on  the  subject  Four  years  ago 
the  Chamber  expressed  apprehensions  of  the  extent  to  which  this  duty, 
*•  founded  on  the  most  fallacious  principle  known  in  political  economy," 
would  stimulate  the  production  in  France  of  artificial  nitre,  and  the 
result  has  been,  as  regards  Sciade,  that  the  quantity  has  declined  in 
that  {>eriod  from  101,629  cwt  to  25,436  cwt.,  and  that  those  firms 
who  had  erected  refineries  in  the  province  have  been  compelled  to 
al»andon  the  business.  With  regard  to  the  adulteration  of  cotton 
and  other  produce  the  committee  express  a  belief  that  the  Act  passed 
with  a  view  to  its  suppression  has  proved  eflfective,  and  has  pre- 
vented the  large  exportation  of  inferior  qualities,  which  used  to 
be  j^nt  to  Bombay  with  the  object  of  mixing  them  with  the  bet- 
ter descripticms  there.  The  instances  in  which  cotton  filled  with 
rubbish,  such  as  stcmes,  pieces  of  brick,  and  caked  dirt,  were  brought 
for  compression  to  licensed  presses  were  previously  numerous,  but 
the  inspector  reports  that  on  the  whole  the  cotton  he  has  examined 
since  the  1st  of  January,  1865,  is  decidedly  superior  both  as  regards 
cleanliness  and  preparation  to  that  of  last  year.  With  respect  to 
oil  seeds  the  committee  consider  there  is  no  reason  to  complain 
of  the  prevalence  of  adulteration.  Bapeseed,  as  a  rule,  contains 
about  seven  per  cent,  of  extraneous  matter^  about  three    or  four 


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1072  Indian  Banking  Praetieem 

per  cent  being  barley.  The  great  evil  to  be  deprecated  is  the  adul- 
teration of  wool.  It  formerly  contained  about  twenty-fiye  per  cent 
of  rubbishy  but  now  it  contains  fifty  per  cent,  if  not  m<»e.  The 
consequence  is  that  the  trade  is  becoming  eiAinct  The  European 
firms  will  have  nothing  to  do  with  it,  and  the  stocks  shipped  bj 
natives  to  Bombay  find  no  purchasers  there.  It  is  aocordiuglT 
recommended  that  the  provisions  of  the  Cotton  Frauds  Act  should^ 
once  be  extended  to  thus  staple. 


INDIAN  BANKING  PRACTICE. 


The  annexed  letter  raises  a  question  of  great  commercial  importanci' 
as  regards  the  rights  and  piuddces  of  the  London  banking  institatioos 
connected  with  India. 

«  32,  Great  St.  Helen's,  Aug.  19. 
^  Sir, — ^As  a  question  of  great  commercial  importance  has  hoea  raised 
by  some  of  the  Indian  banks,  we  think  you  will  consider  it  necessary  to 
insert  the  foUowing  statement.  * 

<<We  have  accepted  certain  documents — ^bills  which  are  held  by  the 
Asiatic  Banking  Corporation.  According  to  the  universally  recognii^ 
custom,  and  in  terms  of  the  usual  letters  of  hypothecation  of  all  the 
Indian  banks,  we  tendered  as  usual  the  amount  of  our  acceptances  to  retin* 
the  draughts  with  the  documents  attached. 

*'  To  our  great  surprise  we  have  been  refused  delivery  of  the  docomeot^, 
on  the  plea  that  the  bank  had  a  right  to  hold  the  surplus  of  the  ahqnnents 
against  some  claims  the  bank  has  on  the  drawer  (who  has  failed)  ol  the 
bills,  on  some  transactions  entered  into,  in  Bombay,  and  to  which  we  are 
in  no  way  whatsoever  parties. 

^'  The  Central  Bank  of  Western  India  has  also  made  a  similar  refusal 
on  as  strange  a  plea — ^that  their  Bombay  office  has  telegraphed  to  them  n^t 
to  part  with  the  documents ;  as  if  the  rights  of  third  puties  should  be  de- 
termined by  what  the  different  officers  of  the  bank  choose  to  telegri|>h  to 
each  other. 

"  The  letters  of  hypothecation  of  all  Indian  banks  provide  that  the  baab 
have  authority  to  hold  and  appropriate  the  documents  only  in  the  case  of 
default  by  the  drawers  or  acceptors.  But  as  long  as  the  acceptors  xk 
solvent,  and  able  to  pay  their  acceptances,  they  are  entitled  to  retire  the 
acoeptaDces,  and  get  possession  of  the  documents  attached. 

^  We  cannot  help  expressing  our  surprise  that  gentlemen  like  the 
directors  and  managers  of  such  banks  could  feel  themselves  justified  in 
endeavouring  to  saddle  upon  others  their  own  imprudent  or  uufoiiimate 
transactions.  Be  this  as  it  may.  The  claim  and  excuae  set  up  by  thete 
banks  are  so  entirely  subversive  of  all  mercantile  credit^  confidence,  aad 
honour,  and  calculated  to  produce  such  serious  consequences,  that  we  feel 
it  our  duty  to  bring  the  matter  to  the  notice  of  the  public  at  onoe. 

^  We  i*emain  your  obedient  servants, 

"DADABHAI  KAOBOJI  A  00.'* 


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1073 

ORIENTAL  FINANCIAL  CORPORATION,  LIMITED. 
The  ordinaty  general  meeting  of  the  proprietors  of  this  company  was 
held  on  the  28th  July,  at  the  London  Tayem  ]    Mr.  John  Brown  in  the 
chair. 

The  following  report  was  read  by  the  Secretary  : — 

"  The  directors  beg  to  submit  to  the  shareholders  the  report  of  the 
proceedings  since  the  last  general  meeting,  held  on  the  27th  January,  as 
also  the  accounts  up  to  the  80th  June,  duly  audited.  In  the  circular 
issued  by  the  directors  on  the  12th  May,  mention  was  made  of  their 
inability,  from  the  want  of  unanimity  in  favour  of  the  measure  on  the 
part  of  the  shareholders,  to  carry  out  the  suggestion  as  to  the  reduction  of 
the  nominal  amount  of  each  share.  The  directors  have  further  to  report 
that  none  of  the  proposals  for  amalgamation  which  they  have  had  under 
consideration  have  as  yet  come  to  a  successful  issue.  With  reference  to 
the  accompanying  accounts  the  directors  have  to  mention  that  as  against 
the  item  of  £191,570.  9^.  8(2.  under  the  head  of  ^  advances  on  securities,' 
the  corporation  holds  collateral  security  to  the  nominal  value  of  £333,685. 
It  will  be  noticed  that  it  has  been  deemed  advisable  to  write  off  a  further 
amount  of  £1,000  from  the  preliminary  expenses,  and  this  reduces  the 
amount  at  the  credit  of  profit  and  loss  on  the  30th  June  to  £11,372. 
Unless  otherwise  desired  by  the  shareholders,  the  directors  do  not  intend 
declaring  an  ad  interim  dividend  for  the  past  half-year.  As  mentioned 
in  the  circular  above  alluded  to,  the  directors  have  been  enabled  to  place 
the  securities  of  the  corporation  on  a  more  satisfactory  footing,  but  from 
want  of  capital  the  business  done  elsewhere  than  in  India  has  been  neces- 
sarily restricted.  The  transactions  in  Calcutta  have  been  of  a  satisfactory 
nature ;  but  the  latest  letters  from  our  agents  in  Bombay  bring  advice  of 
their  having  been  obliged  to  carry  over  some  of  the  loans  they  had  entered 
into.  Lioolung  to  the  quoted  price  of  the  shares,  and  the  natural  anxiety 
expressed  by  many  shareholders  on  that  account,  the  directors  regret  that 
the  suggestion  made  by  them  in  their  circular  dated  12th  of  May  last, 
that  the  shareholders  should  satisfy  themselves  respecting  the  actual  worth 
of  the  shares  by  reference  to  the  official  records,  should  have  been  acted 
upon  by  very  few  of  their  number.  Since,  however^  shareholders  residing 
at  a  distance  may  have  been  prevented  from  availing  themselves  of  the 
opportunity  thus  offered  to  them,  the  directors  would  now  state  that  if  the 
shareholders  should  think  it  expedient  to  appoint  a  committee  from  their 
own  body  to  inquire  into  the  affairs  of  the  corporation  in  everv  particular, 
such  a  course  would  probably  be  satisfactory  to  all  concerned." 

2)r.  Bala/nce-sheei^  ZOth  June,  1866. 

Capital,  10,000  shares  of  £50  each— £500,000,  yiz. :  8,875 
shares  on  which  £10  has  been  called  up.  £88,750 ;  lees 
calls  not  yet  paid,  £1,225— £87,525;  1,125  shares  for- 
feited, on  whicn  have  been  paid,  £4,465 £91,990    0    0 

Amount  due  on  bills  payable  and  on  deposits •       185,228  13    1 

Sandry  creditors     •        ...        3,033  10    9 

Trofit  and  loss— Amount  standing  at  credit  of  this  acconnt.  as 
per  annexed  statement,  viz. :  £16,758.  5f.  7d. ;  less  dis- 
bursements, £5,38i.  5f.  7(1....        •••         11,872    0    0 

£290,624    9  10 


VOL.  XXV.  8! 

Digitized  by 


LnOOgk 


1074  Oriental  Financial  Corporation, 

Cr. 
Advances  on  secnrities,  £191^70.  9«.  Bd, ;  Golcntta  agency, 

£1,062.  9s.  4<2.i  Bombay  agenoy,  £34,260  ...       ...   £336,8S3  19  0 

Cash  at  bankers,  in  hand  and  on  deposit,  £4,217.  4f.  lid,; 

bills  xeoeivable,  £48,018.  4t.  U. WI&  9  0 

iBTestments ,        3^50  0  0 

Office  furnitnre       356  1  W 

Pxeliminaiy  expenses,  £9,000 ;  less  amoont  written  off  to  pro- 
fit and  loss  aocoont,  £1,000 3,000  0  0 

£190.824  91v 

Pni/U  and  Last  Aceount,  dOth  June,  1865. 

Dr. 
Current  expen«es,inclnding  sakxiesi  adrertiseinents,  stationeiy, 

rent,  directors*  fees,  and    incidental  charges  at    head 

office,  as  also  Calcutta  agency        £3»831  9  7 

Amount  paid  Mr.  H.  A.  Parry  on  Ins  retirement  from  the 

office  of  manager 1,000  0  0 

Depredation  in  the  ralue  of  investments         ...        ...       ...        1,090  0  0 

Amonnt  written  off  preliminary  expenses         1,000  0  0 

Balanoe  oanied  to  profit  and  loss  (new  aoconnt)       ...       ...       HtST^  ^  ^ 


Cr. 

Balance  from  last  account  ••        £1X^1  | ' 

Gross  profits  for  the  past  half-year      , V^  ^  ^ 


Bince  the  above  report  was  printed  the  directom  hAva  been  ^^  | 
position  to  lay  before  and  recommend  to  their  members  an  ittiS''''^ 
vrith  another  corporation. 

Notice  is  therefore  hereby  given,  that  an  extraordinary  mM^^  . 
members  will  be  held  at  the  London  Tavern,  on  Friday,  Angost ^^^ 
following  business :— ^ 

1.  To  consider  the  proposed  offer  of  amalgamation,  and,  if  tudats^ 

2.  Topass  the  necessary  resolutions  for  that  pnrpoae. 

The  Chairman,  in  moving  the  adoption  of  the  report,  saidtiui  •  *^ 
the  item  £191,570,  which  they  had  advanced  on  aecozitics,  ^,^\ 
collateral  security  to  the  nominal  value  of  £333,585;  bat  in  additkc'* 
that  they  had  a  lien  upon  the  beneficial  interest  of  a  contract  Ixxt^, 
railway  valued  at  £126,000,  which  was  applicable  to  about  £60,000c(!  *^ 
£191,000,  in  addition  to  the  special  securities  held  ais  against  the  saf^' 
due.    Of  course,  what  the  present  value  of  those  securities  was  the  en' " 
tors  could  not  say,  or  what  they  might  ultimatdy  realise.    The  Ibkil  '^ 
wore  stated  in  the  accounts  at  £185,000,  which  was  lew  than  was  sk'**^ ' 
the  previous  accounts.    The  board  recommended  that  no  ad  intefiffl  ^ 
dend  for  the  past  half-year  should  be  declared,  considering  that  tbe  «^^-' 
course,  seeing  that  many  of  their  transactions  were  still  pendii^f  s^*^  ^" 
it  was  at  present  impossible  to  say  how  they  might  ultimately  tarn  "^ 
He  might  add  that  after  the  directors  had  como  to  this  dedskm  tbe  &' 
tors  had  appended  to  their  report  a  recommendation  on  the  same  gr*^^ 
that  the  ^'bfdanceof  profits  shown  in  tho  aooounts  should  be  can n 
dealt  with."    The  laat  two  paragraphs  in  the  directors*  report  qx^k-  *' 


Digitized  by  LjOOQIC 


Oriental  Fimneiai  Corporation. 


1076 


themselveB,  but  as  to  the  notice  which  now  appeared  by  way  of  rider  to 
the  report,  announcing  the  prospect  of  an  amalgamation,  or  rather,  as  far 
2u  tliis  corporation  wan  concerned,  absorption,  he  deprecated  discussion  aa 
at  present  premature,  but  alluded  to  it  for  the  purpose  of  affording  infor- 
mation. The  proposal  was  that  the  London  and  Mediterranean  Bank 
fihould  take  over  the  corporation  in  its  entirety^  assets  and  liabilities,  and 
for  each  share  of  £50  nominally  and  £10  paid  in  the  corporation,  the 
*  V  ic  iu  receive  a  share  in  the  London  and  Mediterranean 

t'  uk  uonimally  of  :O0,  with  a  minimum  of  £5  credited  upon  it,  and  as 
ilu  \s>etd  of  tho  corporation  were  realised  any  addition  .would  be  added 
;:  I  the  £5.    Such  was  the  pith  of  the  proposal.    It  was  further  pro- 
;bat  in  tho  evont  of  the  amalgamation  being  carried  out,  three  of 
Oriental  Financial  directors  shoiHd  join  the  board  of  the  London  and 
trrranean  Bank,  bo  that  the  realisation  of  the  assets  would  be  under 
jperriaion  of  directors  tiioroughly  cognisant  of  the  affairs  of  the 
ration,     hi  coudusioo,  he  moved  iiie  adoption  of  the  report. 
^ij,  Lyeley  (director)  seconded  the  motion. 

A  SiiAruhoidvr--How  much  is  paid  upon  the  shares  of  the  London  and 
immean  Bank  ? 

Ghairman^I'Ley  have  three  sets  of  shares ;  upon  one  £5  each  has 
id,  upon  another  £3,  and  upon  the  third  £2. 10«. 
ghBTeholdar^Then,  ha  I  understand,  for  our  £10  paid  we  are  to 
£5  each  share,  which  would  represent  our  shares  as  being  at  £5 

^Chairman — Noj  because  as  our  assets  are  realised  we  shall  have 
1  the  realisation  in  addition  to  the  £6. 

eholder — Shall  we  be  liable  for  any  calls  upon  the  London  and 
tteian  fihares  ? 
i  Chairman — Of  course,  if  you  are  shareholders  in  the  company  you 
"for  calb  with  the  other  shareholders,  but  I  am  not  aware  of  any 
,  to  make  a  call. 
'  Shareholder — ^At  what  price  do  the  London  and  Mediterranean 
^tharea  now  stand  in  the  market  9 
^Chairman— 3f  prendum. 
resolution  adopting  the  report  was  then  put  and  carried  unani* 

Btewart,  acting  upon  the  suggestions  made  in  the  report,  moved  the 
tment  of  a  committee  of  shareholders  to  co-operate  with  the  directors 
^c%rr7iiig  out  tbo  proposed  amalgamation,  or  upon  the  negotiations  for 
me  failitig,  to  advise  with  them  upon  the  realisation  of  the  assets 
winding-up  of  the  concern.  It  was  clear  they  had  been  doing  no 
during  the  last  half-year,  and  were  in  fact  £1,590  worse  than  the 
aooounts  showed ;  and  seeing  the  unfortunate  state  of  affairs,  the 
which  had  t^en  place  in  the  direction,  two  of  the  directors  having 
bankrupt  and  therefore  obliged  to  leave  the  board,  and  looking  at 
iition  of  the  corporation  in  the  market,  it  was,  he  submitted,  quite 
to  ooutiuuG  business  a  day  Icmger,  unless  they  could  amalyimate 
me  otlior  cimipimy.  He  had  no  doubt  the  abaorption  of  so  resxMsct- 
bcMly  of  sbareliolders  woidd  be  a  great  benefit  to  the  London  and 
leaxi  Bank,  and  that  the  amalg^ation  would  be  advantageous 
ies, 
[  Jamieeon  sceonded  the  motion. 
^M^joT  Boss  spoko  of  the  low  price  of  the  shares  in  the  market,  and 
rnUly  io  the  unfavourable  position  of  the  company,  which  was  ascribed 
1  a  great  measure  to  the  directors  not  being  financial  men.    He  believed 


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1076  Oriental  Financial  Corporation^ 

the  resolt  of  the  appointment  of  the  oommittee  must  neeoMMrily  be  the 
winding-up  of  the  company.  He  was  ayeroe  to  going  on  any  further,  either 
by  themselves  or  imder  an  amalgamation  with  some  other  oompanyiUnkK 
the  directors  could  assure  them  of  success. 

Mr.  M^wen  suggested  that  they  should  postpone  all  diaeossioD  upon 
the  amalgamation  until  the  4th  of  August,  when  they  were  to  be  csUed 
together  specially  to  consider  that  subject,  but  he  recommeDded  the  share- 
holders in  the  meantime  to  make  inquiries  for  themselTes  as  totheposLtioB 
of  the  London  and  Mediterranean  Bank.  He  thought  there  confd  be  go 
objection  to  appointing  a  committee  to  confer  with  the  directora. 

Mr.  Lysley  thought  it  a  pity  they  had  not  had  a  cc»nmittee  of  absie- 
holders  to  coK>perate  with  the  directors  and  examine  into  the  whole  of  iht 
company's  affairs  before.    The  directors  had  never  had  the  slightest  iateB- 
tion  of  bolstering  up  the  concern  in  any  way,  but  had  expluned  erery* 
thing,  and  had  all  tdong  invited  the  shareholders  to  come  and  judge  for 
themselves.    The  low  price  of  the  shares  was  easily  to  be  accounted  fc  r 
The  company  was  started  in  the  days  of  high  premiums,  but  scxa  liter- 
wards  money  went  up  and  shares  went  down.     Then  many  Bhanholden 
could  not  pay  their  calls,  and  instead  of  forfeiting  those  shares  immedistelT, 
as  the  directors  ought,  he  now  thought,  to  have  done,  they  wece  aUow^e-i 
to  hang  about  upon  the  market.     Then,  again,  there  were  two  memben  'i 
the  board  who  failed  during  the  severe  mercantile  pressure.    In  cee  *^ 
these  gentlemen  the  board  thought  they  had  a  most  Suable  director,  sb'I 
so,  as  a  man  of  business,  and  at  the  time  of  high  standing  and  sotwy, 
he  was.     The  firm  of  tiiat  director  held  1,000  shares,  which,  upoe  ^ 
bankruptcy  occurring,  were  also  thrown  upon  the  market,  and  of  coc^ 
influenced  it  prejudicially  to  a  still  further  extent.     Indeed,   he  ddottt^ 
whether  the  company  had  yet  recovered,  or  could  ever  reooTer  tke  pre- 
judicial effect  of  having  so  many  of  its  shares  forced  upon  the  vaA^  ^ 
onetime.    He  defended  the  directors  from  the  charge  of  brasfd^ci^ 
in  financial  ability,  and  attributed  the  remarks  of  Major  Ro«  Qs  ^^ 
point  to  disappointment  in  not  being  appointed  a  director  hinii^  ^^ 
believed  that  good  would  result  from  the  appointment  of  the  eaaB^^ 
and  that  they  would  report  that  the  directors  had  carried  on  the  hesise^ 
of  the  company  as  efficiently  and  as  well  as  was  possible  under  tbe  as- 
cumstances.    The  fact  was  they  had  proceeded  at  first  on  a  wrong  bask  K 
entering  into  large  transactions  with  too  small  a  capital,  and  had  not  m»i' 
sufficient  calls.    He  did  not  think  they  would  lose  any  money  by  the  oat* 
standing  transactions,  and  he  hoped  that,  when  the  assets  were  resli^ 
the  £5  credited  to  them  on  the  London  and  Mediterranean  shares  woaiti 
be  increased  to  £10  or  more.    He  thought  it  would  be  better  to  omit  th*: 
part  of  the  resolution  which  contemplated  the  possible  winding>np  of  ttf 
company. 

A  long  conversation  ensued,  in  the  course  of  which  several  shareholder:^ 
recommended  that  the  motion  for  the  appointment  of  the  oonunitic* 
should  be  postponed  until  the  meeting  of  the  4th  of  August,  when  tkf? 
would  know  whether  the  negotiations  for  amalgamating  with  the  Lobdoa 
aud  Mediterranean  Bank  had  been  suooessful  or  not,  while  others  desirei 
the  committee  to  be  named  at  once. 

Mr.  Lysley  suggested  that  the  oommittee  should  be  appointe^bot  shonlii 
only  be  called  in  to  act  if  the  amalgamation  fell  through,  and  tbcai  tL:^! 
they  should  advise  with  the  directors  as  to  the  best  means  of  carxyiiig  ca 
the  business,  or  of  concluding  it. 

Ultimately,  Mr.  Stewart  withdrew  his  motion,  it  being  understood  th  .t 


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Midland  Banking  Company.  1077 

it  would  be  brought  forward  again  should  the  proposal  for  the  amalgama* 
tionfaiL 

Twenty-five  guineas  were  awarded  to  the  auditors  for  their  serviceBy 
and  a  vote  of  thanks  to  the  chairman^  the  direotors^  and  the  secretary  con- 
dttded  the  proceedings. 

The  meeting  above  referred  to  was  held  on  the  4th  of  August^  at  the 
London  Tavern,  but  it  did  not  eventuate  in  any  amalgamation  being 
agreed  to. 


MIDLAND  BANKING  COMPANY. 

On  the  28th  July  the  ordinary  general  meeting  of  shareholders  was 
held  at  the  London  Tavern ;  Mr.  T.  S.  Richardson  in  the  chair. 
The  following  report  was  taken  as  read : — 

**  The  directors  have  the  pleasure  to  submit  to  the  shareholders  the  fol- 
lowing statement  of  aocoimts  and  balance-sheet,  for  the  half-year  ending 
the  30th  June,  1865,  which  has  been  duly  examined  and  certified  by  the 
auditors.  It  will  be  seen  that  the  gross  profits  for  the  half-year,  includ- 
ing £765.  IBs,  9(1.  brought  forward  horn  last  account,  have  been 
£22,716.  IBs,  lid,  after  making  provision  for  bad  and  doubtful  debts;  and 
that,  after  deducting  all  current  expenses,  agency  charges,  interest  paid  to 
customers,  disc.,  and  allowing  for  rebate  of  interest  on  bills  discounted  and 
not  due,  there  remains  for  disposal  a  balance  of  £7,095.  10s.  2d,  The 
directora  recommend  that  out  of  this  stmi  £380.  4«.  lOd.,  being  at  the  rate 
of  10  per  cent,  per  annum,  should  be  written  off  preliminary  expenses ; 
that  £3,608. 17s.  Sd,  should  be  appropriated  to  the  payment  of  a  dividend 
at  the  rate  of  5  per  cent,  per  annum,  free  of  income  tax,  upon  the  paid- 
up  capital  of  the  Company ;  that  £1,000  should  be  added  to  the  reserve 
fund ;  and  that  the  balance,  £2,106.  7^.  8d.,  should  be  carried  forward  to 
profit  and  loss  ^  New  Account."  The  directors,  in  pursuance  of  the  policy 
which  has  hitherto  guided  them,  are  of  opinion  that,  having  regard  to  the 
permanent  interests  of  the  bank,  it  is  not  desirable  to  increase  the  idivi- 
dend  on  the  present  occasion.  The  directors  are  happy  to  report  that  the 
expectations  formed  with  regard  to  the  branches  at  Leeds,  Huddersfield, 
and  Shefiidd,  purchased  of  the  London  and  Northern  Bank,  have  been 
justified  by  tiie  residt  of  the  last  six  months'  operations,  notwithstanding 
the  comparative  inactivity  of  trade  in  those  places.  In  February  last  a 
daily  branch  was  opened  at  Timstall,  where  a  valuable  business  is  being 
n^idly  formed;  and  in  June  last  the  directors  were  able,  without  any  ex- 
pense or  being  called  upon  to  take  over  any  objectionable  account  or 
liability,  to  acquire  the  business  established  at  Longton  by  the  London. 
Birmingham,  and  South  Staffordshire  Bank,  which  is  of  a  lucrative  and 
very  satijsfactory  character.  The  directors  are  sanguine  that  these  two 
branches  in  the  Potteries  will  contribute  largely  to  the  general  profits  of 
the  Company." 

Balance  Sheet  SO^A  June^  1865. 
Dr. 

Capital  paid  up       ...    £150,059    0    0 

Reserve  fund  2,000    0    U 

Amount  due  by  the  bank  on  current,  deposit  and  other  accounts, 
£531,928. 18i.  Id.;  liabilities  on  acceptances  by  the  bank, 
£20,200...        552,ia3  18    1 

Carried  forward  £704^187  18    1 

Digitized  by  LnOOQlC 


Profit  and  loss  balaiicc,broa^ht  from  last  accomit,£755.18«.  Od.; 
>ss  profit  for  the  hall-year,  after  providing  for  bad  and 


1078  Midland  Bankittg  Company. 

Brought  forward 
lancc,broaght  from 
"or  the  hall-year,  a 
Soabtful  debts,  £21,960.  15s.  2(1. 

Cr. 
Cash  on  hand,  with  agents,  and  at  Bank  of  England,  Leedjs... 
Purchase  of  freehold  and  copyhold  property,  and  bank  fittings 

at  head  office  and  branches 

Purchase  of  business  at  Wolverhampton,  and  also  at  Hereford, 

and  payment  in  fall  to  London  and  Northern  Bank  for 

goodwill  ...        ...        ...        ...        •••        ...         ••• 

Bills  and  promissory  notes  discounted,  and  other  advances  to 

customers        ...        ...        ...        ...        ...        ...        ••• 

Preliminary  expenses,  and  expenses  in  establishing  branches 
Current  expenses,  induding  all  salaries,  rents,  &c.,  at   head 

office  and  branches,  agency  charges,  and  directors'  remn- 

neration  •••        ...        ...        ,.,        ...        ••«        ••• 

Interest  paid  on  current  and  deposit  accounts,  &c 


£704,1^7  ^8    1 

22,716  13  11 
£726.904  12    0 

£71,5a    7    T 
13,201    2  II 

16,000    0   0 

603,956  n  1" 
7,604  16    : 


7,(M    8    1 

7.636  18   r» 

£726,904  12 


PBOFIT  AHD  LOSS  ACCOUST* 


Dr. 


Current  expenses,  as  above        « 

Interest  paid  to  customers,  &c.    ... 

Bebate  on  bills  not  due,  carried  to  new  account         

Amount  written  off  preliminary  expenses,  being  at  the  rate  of 

10  per  cent,  per  annum        

Dividend  at  the  rate  of  5  per  cent,  per  annum,  for  the  half-year 

free  of  income-tax      

Amount  added  to  reserve  fund 

Balance  carried  fortvard 


Cr, 

Balance  brought  from  last  account       

Gross  profit  for  the  half-year,  after  providing  for  bad  and 

doubtful  debts 


£7.0K   ?   ! 

3^\:  '^ 

1,000    U   '• 
2,1ij6   ;   ? 

£22.716  n  11 


£7S5  IS    ^ 

21,960  n  S 

£^716  1$  11 


The  Chairman,  in  moving  the  adoption  of  tho  report,  said  bs  1^1 
nothing  to  do  but  to  congratulate  the  shareholders  on  the  BBcoasa  al  Uy 
Midland  Banking  Company.  The  bank  was  going  on  steadily  incEcstsiL: 
in  prosperity.  Comparing  the  half-year  just  past  with  the  ocnrreepaeBdizsj 
haii-year  of  last  year,  there  was  an  improvement  in  every  fignra,  axid  tkv 

Erofits  were  larger.  The  current  expenditure  was  greater  this  half -year. 
ut  then  they  luui  three  branches  now  which  belonged  to  the  Londoii  acil 
Northern — ^viz.,  in  Leeds,  Huddersfield,  and  Sheffield— whidi  they  ti^i 
possessed  only  a  month  when  the  last  meeting  was  held,  and  thoo^  the 
ezpensea  were  larger,  the  profits  were  oommeusoriUy  greater.     They 


Digitized  by  LjOOQIC 


Midlatul  Banking  Company.  1079 

carried  £1,000  to  the  reserve  fund  and  over  £2,000  to  the  profit  and  loss 
new  account.  If  they  had  not  carried  forward  this  latter  sum  they  might 
hare  divided  1\  per  cent.  The  board,  however,  thought  it  better  to 
HtreDgthen  the  position  of  the  bank  by  keeping  a  good  amount  to  the 
credit  of  profit  and  loss  than  to  divide  the  profit  to  the  last  penny.  (Hear, 
hear).  By  going  on  as  they  did  they  would  make  the  Midland  Banking 
Ompany  one  of  tiie  beet,  if  not  the  very  best,  of  the  new  banks.  (Hear, 
hear.) 

Mr.  Woodd,  M.P.,  seconded  the  motion,  and  expressed  his  satisfaction,  on 
account  of  the  old  shareholders  of  the  London  and  Northern  Bank,  that 
the  affidrs  ol  the  Company  were  in  such  a  prosperous  condition.  (Hear, 
hew.)  They  had  a  good  and  increasing  business  before  them,  and  it  was 
pjewing  to  him  to  find  that  not  the  least  of  that  good  business  was  de* 
rived  from  the  Yorkshire  braoches. 

In  reply  to  questions  by  shareholders, 

The  Chairman  said  that  the  large  amount  of  £2,000  had  been  earried 
forward  to  the  new  account  because,  as  he  had  already  explained,  it  was 
thought  more  advisable  for  a  young  bank  to  have  a  secure  and  strong 
l-3sition  than  to  make  a  large  dividend  in  the  beginning.  (Hear,  hear.) 
\Vhen  they  were  in  a  perfectly  sure  position  they  could  make  a  larger 
diyidend,  and  investors  would  have  the  advantage  of  the  amount  reserved 
next  year.  With  regard  to  the  audit  of  the  branch  banks  they  could  not 
Mud  auditors  to  every  branch,  but  an  inspector  was  sent  who  investigated 
the  acoounts,  and  made  careful  reports  which  were  submitted  to  the  aiidi- 
ton.  If  ihef  were  not  f oimd  satisfactory  the  auditors  would  not  sign 
tberepori. 

Mr.  MLartflUi,  one  of  the  auditors,  said  that  if  an  auditor  was  sent  to  the 
branches  to  audit  the  accounts,  it  would  be  very  expensive,  and  not  so 
latisfactory  as  the  present  system. 

The  motion  was  then  adopted. 

A  dividend  of  6  per  cent.,  free  of  income  tax,  payable  on  the  1st  of 
August,  was  then  declared. 

Mr.  Strickland,  of  Leeds,  moved  the  thanks  of  the  meeting  and  a  re- 
muneration of  £16. 15«.  to  each  of  the  auditors,  and  expressed  his  entire 
iatisfaction  with  the  report  and  the  dividend,  and  the  mode  in  which  the 
company  was  managed. 

The  motion,  having  been  seoonded,  was  adopted. 

The  Chairman  moved  a  vote  of  thanks  to  Mr.  Tomson,  the  general 
manager,  and  the  other  officers  of  the  company,  for  their  good  and  careful 
maxtagemeut  of  the  concern. 

Mr.  Knighty  a  director,  seoonded  the  motion. 

Mr.  Tomson,  in  acknowledging  the  compliment,  said  that  the  kind 
manner  in  which  the  chairman  spoke  of  him  was  but  part  and  parcel  of 
the  kindness  which  he  had  experienced  since  the  formation  of  the  bank. 
(Hear.)  He  could  not  but  congratulate  the  shareholders  on  the  appoint- 
ment of  the  inspector,  who  was  a  good  and  efficient  man  in  every  respect, 
and  with  whom  he  worked  most  harmoniously.  He  was  suro  that  no 
efforts  would  be  spared  on  their  part  or  on  that  of  the  officers  of  the  branch 
banks  to  promote  the  success  of  the  establishment.     (Hear,  hear.) 

A  vote  of  thanks  to  the  chairman  concluded  the  proceedings. 


ized  by  Google 

f 

I 


1080 


BANK  OF  EGYPT. 

An  extraordinary  general  meeting  of  the  proprietozs  of  this  bank  ww 
held  on  the  28th  July^at  the  Londcm  Tayem;  Mr.Tite,  MJP.,in  the 
chair. 

The  Secretary  (Mr.  Cheshire)  having  read  the  noiioe  oonTetoing  the 
meeting,  and  the  minnteB  of  the  laat  meeting,  the  following  r^oct  was 
taken  aa  read : — 

'*  The  directors  have  the  pleasure  to  lay  before  the  ahaxeholderB  tbe 
annexed  statement  of  aooounte  for  the  half-year  which  ended  on  the  30& 
June  last,  by  which  it  will  be  seen  that  the  net  profits,  indnding  a  belasce 
of  £4^19.  6s.  5(2.  brought  forward  from  the  previons  half. Tear,  amoniitw 
£16,966. 18«.  M.  This  enables  the  directors  to  recommend  a  diTidend  for 
the  half-year,  as  on  the  last  occasion,  at  the  rate  of  10  per  cent,  per  anniiB 
(£12,600),  free  of  income  tax,  leaving  £4^466. 18«.  3J.  to  be  canied  for- 
ward  to  tiie  next  aoooonf 


Salanee»sheet,  June  30, 1865. 

LIABILITISS. 

Capital  paid-ttp      

Bnenre  fond  with  interest  to  date         

3K118  payable  

Current  and  other  acconnts         

Profit  and  loss  balance  as  below,  after  payment  of  dividend  ... 


ASSETS 


Cash 

Bills  receivable       

Government  securities  (Egyptian) 
Other  Eccnrities     ...        


£250.000   0  0 

20,600   0  0 

300,159    3  J^ 

235,748  15  11 

4,466  H  ? 

£810,974  i:  1  • 


458.10^  5  ^ 

152,004  n\ 

£810,974  n  W 


Profit  and  Loss  Account,  ZOth  June. 


I>r. 


Diyidend  for  tLe  half-year,  at  the  rate  of  10  per  cenUper 

annum,  payable  on  the  4th  August 

Balance  carried  to  next  account ... 


£12,500   0    I 
4,466  IS   : 

£16,966  18    5 


Cr. 

Balance  of  undivided  profits,  31st  December,  1864      

Net  profits  for  the  last  six  months,  after  providing  for  bad  and 
doubtful  debts,  rebate  of  interest,  current  expenses  in 
London  and  Egypt,  and  directors*  remoneration 


£4,619    6 


12,147  n  10 
£16,966  IS    3 


The  Chairman,  in  moving  the  adoption  of  the  report,  obserred  thai 
although  things  in  Egypt  had  at  diffiarent  times  assumed  a  very  formidabk 
shape,  and  many  difficulties  had  arisen,  the  bank  had,  owing  to  the  pru- 


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ized  by  Google 


Bank  of  Egypt.  1081 

deuce  of  the  management  at  Alexandria,  escaped  any  heavy  loss  similar 
to  that  which  had  befallen  other  banking  companies.    They  were  able  to 
present  to  the  shareholders  a  balanoe-sheet  showing  gross  profits  to  the 
amoont  of  £19,000.  Their  expenses  had  slightly  increased,  owing  to  some 
increase  in  salaries,  which  brought  the  total  expenses  up  to  £7,^)0.     The 
set  profit,  after  making  allowance  for  every  possible  loss,  was  £12447> 
which  was  nearly  £600  more  than  the  profit  of  the  corresponding  half- 
year  in  1864.    They  had  reason  to  believe  that  their  business  wa«  very 
carefully  managed  in  Egypt,  and  one  particular  description  of  brokerage 
business  had  been  very  successfully  carried  on.     The  meeting  were  aware 
that  the  state  of  things  in  Alexandria  had,  during  the  last  half-year,  been 
full  of  difficulties.    Owing  to  speculations  in  cotton,  a  commercial  crisis 
had   ensued  which  had   struck  down  some  of  the  largest   oommerdal 
houses ;  and  he  had  been  informed  that  in  Alexandria  itoelf  the  loss  had 
been  £2,000,000.    Whether  that  were  the  fact  or  not  he  oould  not  tell ; 
all  he  could  say  was,  that  this  bank  had  escaped.    (Cheers.)    Another 
circumstance  which  had  almost  totally  paralyzed  business  in  Egypt  during 
the  last  six  months  was  the  cholera,  which  had  raged  with  such  frightfm 
violence  that  the  total  number  of  deaths  in  Egypt  up  to  17th  July  had 
Wen  19,256 ;  and  of  that  number  4,000  persons  had  died  in  Alexandria, 
0,000  in  Cairo,  2,000  in  Damietta,  and  2,000  in  Rosetta.    He  was  happy 
to  say  that  the  scourge  was  now  abating.    During  the  past  winter  the 
management  in  Egypt,  on  which  so  much  depended,  was  greatly  assisted 
by  the  presence  of  Mr.  Thurbum,  one  of  the  board,  who  was  well  ac- 
quainteci  with  the  trade  and  resources  of  the  country,  and  who  was 
present  at  Alexandria  at   the  height  of   the  crisis.     Happily,  by  his 
<i.^^istance,  combined  with  great  prudence  on  the  part  of  the  management, 
tlie  evils  which  had  overtaken  other  commercial  institutions  had  been 
averted,  and  they  had  emerged  from  the  crisis  comparatively  scatheless. 
He  concluded  by  moving  the  adoption  of  the  report  and  accoimts. 
The  Deputy-Chairman  (Mr.  Robertson,  M.P.)  seconded  the  motion. 
Mr.  Surtees  called  attention  to  the  great  diminution  in  the  amount  of 
gr.>s3  profits  this  half-year  as  compared  with  that  of  the  last,  from  which 
he  inferred  that  the  bank  had  made  some  losses. 

The  Chairman  explained  that  the  business  was  better  in  Egypt  at  some 
r-eriods  of  the  year  than  at  others.  Banking  had  not  been  so  successful 
iiiring  the  time  of  the  cholera  and  commercial  crisis  as  it  was  at  other 
UiueH. 

The  motion  was  carried  unanimously,  and  a  dividend  of  £10  per  cent. 
per  annum  declared. 

A  Shareholder  enquired  whether  there  waA  a  probability  of  a  bonus  next 
Half-year. 

The  Chairman  said  he  did  not  like  to  predicate  anything  in  that  respect, 
thviTigh  he  thought  it  extremely  probable ;  at  the  same  time  the  proprietors 
"KvvXil  bear  in  mind  that  the  trade  of  Egypt  had  been  much  interfered  with 
I'v  the  excessive  mortality.  They  had  honestly  earned  the  dividend  of  10 
\K-r  cent,  which  was  now  declared,  and  the  shareholders^  might  depend  upon 
11  the  directors  would  be  most  happy  to  meet  them  with  a  bonus,  if  circum- 
i^tances  warranted  them  giving  otie.     (Hear,  hear.) 

Mr.  Surtees  inquired  whether  the  bank  suffered  from  competition  with 
other  banks. 

The  Chairman  said  that  there  was  no  reason  to  believe  it  did.    Their 
blinking  business  proper  went  on  very  steadily. 
In  reply  to  other  questions. 
The  Chairman  said  that  Uie  bank  had  realised  on  the  Ottoman  loan,  at 


Digiti 


ized  by  Google 


1082  London  and  South  Western  Bank. 

a  profit,  and  invested  the  money  in  other  Beouriiies.  It  wa*  ^^^^JJfJ**^ 
to  state  the  details  here,  but  the  board  of  managemeDt  were  al^iy^i^y 
to  impart  information  on  particular  points  to  indiiidttal  propiwon  cm 
their  calling  at  the  oflioe.  ,. 

Mr.  Thurbum  confirmed  the  statement  of  the  chaimaaastoibegjiMnUy 
prosperous  condition  erf  the  bank,  and  as  to  its  having,  thrmightM  gw» 
prudence  of  the  local  management  at  Alexandria,  escaped  any  importsnt  te 
in  the  commercial  crisis.  It  oould  not  be  said  that  they  come  quite  demy 
off,  but  he  had  no  hesitation  in  saying  that  their  losses  inEanP*^^^^ 
below  the  losses  of  any  similar  establishmmi.  Their  Man  PJ^|J^ 
were  very  good,  although,  in  coDsequenoe  of  the  paralysed  state  ol  trade 
owing  to  cholera  and  other  causes,  it  was  not  probable  thai  the  expeoses  of 
the  current  half-year  would  very  greatly  exceed  those  of  the  present. 

This  being  the  whole  <rf  the  business,  a  vote  of  thanks,  prc^osed  by  ^ 
Tidmarsh}  was  unanimously  accorded  to  the  chairman  and  dixMloi%n' 
tiieir  very  valuable  services  during  the  past  half-year. 


LONDOK  AND  SOUTH  WESTEMT  BANK,  LnilTED. 

Thb  fourth  half-3rearly  meeting  of  this  bank  was  held  at  the  Lawk» 
Tavern,  on  the  31st  July;  Mr.  J.  F.  Vesey  Fitzgerald  in  the  duir. 

The  following  report  was  read : — 

"  The  directors  have  the  pleasure  to  submit  to  the  proprietors  theW***' 
sheet  for  the  half-year  ending  30th  June  last.    Notwithstanding  ti»  ^ 
rates  of  interest  which  have  prevailed  during  the  past  half-year,  usi^ 
consequent  decrease  of  profits,  it  will  be  seen  from  the  balanoe-ih«i^ 
after  making  provision  for  bad  and  doubtful  debts,  the  gross  V^^^^^l 
half-year,  including  the  sum  of  i^,660. 13s.  4d,  brought  forward  ii^^ 
account,  amount  to  £19,517. 1^.  3<l.,  and  that  after  deducting  uktstf^F^ 
to  customers  and  all  charges  for  expenses,  there  remains  an  ^^'^^t 
balance  of  £6,805, 9«.lrf.    The  directors  recommend  that  £4,63B.1*<*^^ 
appropriated  to  the  payment  of  a  dividend  at  the  rate  of  6  patff^^, 
annum,  free  of  income  tax,  that  £856.  11b,  Td.  be  set  aside  on  aoooiDt  A 
rebate  of  bills  not  due,  and  that  the  balance  of  £312.  6s.  2d.  be  cw"^ 
profit  and  loss  new  account.    The  .directors  have  to  r^rort  a  bxgf  •** 
steady  increase  of  business,  and  avail  themselves  of  thiB  oj^rtonity  tr 
remind  the  shareholders  that  by  exerting  their  influence  in  extending  t*' 
operations  of  the  bank  and  introducing  customers,  they  wiD  laiyly^^ 
tribute  to  its  prosperity.    The  dividend  will  be  pa^fable  at  the  head  dos^ 
or  at  any  of  the  branches,  on  and  after  Tuesday^  8th  August." 

BALAKCE»SH8Kr* 

Dr. 

Capital  paid*up       iei76»796   0  »^ 

Reserve  ftind  15,000   0  0 

Amount  due  by  the  bank  on  current,  deposit,  and  other  accounts      509,781    I  I* 
Balance    of   profit    and   loss    brought   from    last   account. 
£1,660.  13i.  4d.;    gross  profit  for  the  half-year,  after 
^.Ti^lS     P«>viaion      for    bad     and     doubtfiil     debts, 
£17,856. 18#.  n<| I»ffl7  H  j 

£71^091  14 


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ized  by  Google 


London  and  South  Western  Bank.  1083 

Cf. 

Cash  in  hand  and  at  call 

Bills  diBConnted  and  temporary  advances  to  cnstomers 

Bank  premises,  fnmitnre,  and  fixtures 

Preliminary  expenses,  including  cost  of  establishing  branches 
Corrent   expenses,    including  directors'    remuneration,    all 

salaries,  rents,  &c.,  at  head  office  and  branches 

Interest  paid  on  current  and  deposit  accounts,  &o»     ... 


ntOFTT  AlTD  LOBS  ACCOtJHT. 

Dr. 

Carrent  excuses  as  above 

Interest  paid  

Rebate  on  bills  not  due  carried  to  now  account 
Dividend  at  the  rate  of  6  per  cent,  per  annum  ... 
Balance  carried  forward 


£54,873  18  10 

634,066  15  8 

8,940  16  6 

9,500  0  0 

9,217  10  4 
4,494  12  10 

£721,093  14 

2 

£9.217  10 

4,494  12 

856  11 

4,636  13 

312  4 

4 
10 
7 
4 
2 

£19,517  12 

8 

£1,660  13  4 
17,866  18  11 

£19,517  12 

3 

Or. 
Balance  brought  from  last  account 
UroBS  profit  for  the  half-year 


The  Chairman^  in  moving  the  adoption  of  the  report,  said  that  it  con- 
tained so  clear  a  statement  of  the  position  of  the  company  that  he  need 
not  then  enter  into  any  lengthened  explanations ;  and  he  was  glad  to  be 
able  to  add  that  the  few  remarks  he  should  be  able  to  make  would,  he  had 
reason  to  believe,  be  of  a  perfectly  satisfactory  character.  The  directors  felt 
persuaded  that  the  business  of  the  bank  was  at  present  placed  on  so  sound 
a  footing  thai  their  ultimate  success  was  certain,  and  that  the  only  ques- 
tion wan,  how  rapidly  that  success  should  be  developed.  For  his  part  he 
did  not  greatly  approve  of  very  rapid  progress,  and  he  should  much  rather 
986  one  of  a  steady,  certain,  and  unremitting  description.  He  need  not 
call  the  attention  of  the  shareholders  to  the  great  fall  which  had  taken 
place  in  the  value  of  money  since  the  period  of  their  last  meeting.  They 
▼ere  all  aware  that  it  was  then  about  0  per  cent,  and  that  it  waa  sJt 
present  about  3}  per  cent.  He  had  no  doubt  that  their  attention  had  been 
directed  to  a  very  valuable  article  published  in  the  Economiaty  which 
showed  that  all  our  great  banking  establishments,  although  their  prospects 
were  in  some  respects  better  than  before,  inasmuch  as  their  resources  were 
greater,  had  realised  smaller  profits  during  the  last  half-year  than  during 
itus  preceding  half-year,  or  the  half-year  previous  to  that  again.  Under 
these  circumstances  the  shareholders,  he  was  sure,  would  b^  gratified  to 
find  that  the  directors  were  able  to  ofi'er  them  the  same  dividend  they  had 
received  upoD.  the  last  occasion.  (Hear,  hear.)  That  residt,  it  should  be 
remembered,  was  attained  not  only  under  the  prevalence  of  a  lower  rate 
of  interest^  but  under  an  increase  in  the  amount  of  the  company's  capital, 
and  it  must)  therefore,  be  held  to  be  specially  satisfactory.  (Hear,  hear.) 
At  the  period  of  their  last  meeting  the  paid-up  capital  of  the  bank  was 
£135|Eftl5;  at  present  it  was  i^76,795.  Their  deposits  then  amounted  to 
^MJS&lf  at  present  they  were  about  £500,000 ;  or^  in  other  woidB,  they 


Digiti 


izedbyLnOOg^ 


1084  London  and  South  Wetfem  Bank. 

were  greater  hj  more  than  50  per  cent.     They  had  at  present  2,500 
accounta,  and  since  the  last  meeting  the  acoonnts  had  improired  eTen 
more  in  quality  than  in  number.    (Hear,  hear.)    He  had  next  to  call 
the  attention  of  the  meeting  to  some  changes  which  had  taken  place  in 
the  constitution  of  the  board  of  directors.    They  had  lost  the  TalnaUe 
servicea  of  Mr.  Johns ;  but  the  shareholders  would  be  glad  to  know  that 
the^  continued  to  possess  his  good  wishes  and  hia  confi<knoe,  and  that  his 
retirement  was  in  no  way  connected  with  any  question  affecting  the  posi- 
tion of  the  iMnk.    There  had,  at  the  same  time,  been  added  to  the  houd 
MJr.  Zuccani  and  3fr.  Schoombs.      Those  additions,  it  was  confidently 
anticipated  by  the  otiier  directors,  would  prove  of  great  adrantafle  to  the 
company ;  and  they  believed  that  if  that  meeting  had  been  held  a  few  dsjs 
later  they  would  have  been  able  to  announce  the  aooession  of  names  of  era 
a  still  more  important  character,  if  that  were  possible.    They  had  been  to 
overwhelmed  with  country  business  at  the  head  office  in  Regent  Street 
that  th^  had  thought  it  advisable  to  take  an  office  in  the  City ;  and  they 
also  believed  that  with  such  a  change  the^  would  be  enabled  to  obtain  the 
addition  to  the  board  of  some  first-rate  City  names.    That  brought  him  to 
the  suggestion  thrown  out  at  their  last  meeting  by  Mr  Jones,  of  Wands- 
worth, that  they  should  as  early  as  possible  undertake  a  regular  City 
business.    The  directors  were  quite  as  anxious  as  any  of  the  aharehoUas 
could  be  to  enter  upon  such  a  course,  but  they  did  not  think  the  time  is 
it  had  quite  arrived.    They  did  not  consider  that  it  would  be  adrinbii 
they  should  make  that  important  change  while  Uieir  resources  were  oom- 
paratively  so  limited,  and  so  much  employed  in  the  country  and  is  tk 
suburbs  of  London ;  but  they  could  assure  the  shareholders  that  whofK: 
they  might  go  in  in  that  way  they  would  go  in  in  earnest,  and  vitb  < 
determination  to  win.    (Hear,  hear.)    Some  of  them  would,  no  dtmb^  ^ 
surprised  not  to  see  their  majiager,  Mr.  Addison,  among  them  thai  ^h 
and  it  unfortunately  happened  that  he  was  prevented  by  serioitf  uboi 
from  attending ;  but  he  was  with  them  in  spirit,  and  they  must  all  M 
anxious  that  he  should  resume  his  valuable  services  at  the  earliest  bobsK 
his  health  would  permit.    (Hear,  hear.)    He  (the  chairman)  had  oi^ 
further  to  state  that  he  should  be  ready  to  answer  to  the  best  of  his  po^*^ 
any  questions  that  might  be  addressed  to  him ;  and,  in  condusioD,  be 
begged  leave  to  move  the  adoption  of  the  report.     (Hear,  hear.) 

Lord  G.  Paulet  seconded  the  motion. 

The  motion  was  at  once  unanimously  adopted. 

^^*®®  ^^  thanks  were  then  passed  to  the  auditors,  to  the  manager,  awi 
the  branch  managers,  and  other  officers  of  the  company,  and  to  tiie  boani 
of  directors. 

'^^^  ordinnry  general  meeting  was  then  brought  to  a  dose,  and  the 
assembled  shareholden?  resolved  themselves  into  a  special  meeting  for  the 
purpose  of  considering  the  expediency  of  altering  certain  danaesiBthe 
^^SP^y'B  articles  of  aasodationr 

*«^t5  **^?^  ^^  **^®  fi"*  resolution  he  had  to  submit  to  the  ^wial 
w^§^?"  *^*'*'  ^  **^«  ^^  clause  of  the  artides  of  assodatiaD, the 
«  T«f«aX®  "*^  *"^  "August"  should  be  substituted  for  the  to* 
enawS^^^i  "-^^y"  The  object  of  the  proposed  diange  was  to 
daw  iJ^  ^'^ctors  to  hold  the  half-yearly  meetings  of  the  company  afew 
d^raWif?^^*"  ^^^  ^^  hitherto  done;   and  that  deUy  itsdf  beesne 

The  mo«  ^J«e<l^«nce  of  the  remoteness  of  some  of  thdr  branch  banks. 

The  CW^     ^^*  ^^^  seconded,  was  at  once  unanimously  adopted. 
ftrtideaof^^*?J^®^*  proposed,  in  substitution  for  dause  79  of  the 
association,  a  dause  to  the  effect  that  there  should  be  pdd  to 

Digitized  by  LjOOQIC 


General  Credit  Company*  1085 

the  directon  bv  way  of  remimeration  for  their  BervioeB  the  ram  of  £2,000 
per  annum,  and  that  such  remtineratiou  might  from  time  to  time  be  in- 
creased by  the  shareholders  at  any  general  meeting.  By  the  clause  as  it 
had  hitherto  stood  the  remuneration  of  the  directors  was  to  be  increased 
with  the  rate  of  dividend  that  might  be  declared ;  but  some  of  the  share- 
holders had  expressed  their  belief  at  the  last  meeting  that  that  was  not  a 
desirable  arrangement ;  and  it  was  on  that  account  that  tiie  present  change 
was  proposed. 

The  motion  having  been  seconded, 

A  Shareholder  asked  what  was  at  present  the  number  of  the  board  of 
directors. 

The  Chairman  said  that  there  were  nine  of  them,  and  that  they  were 
empowered  to  raise  the  number  to  eighteen. 

The  motion  was  then  unanimously  adopted,  and  the  business  of  the  day 
was  brought  to  a  oond^sion. 


GENERAL  CREDIT  COMPANY,  LIMITED. 

The  ninth  ordinary  general  meeting  of  shareholders  in  the  General  Credit 
Company,  Limited,  was  hold  on  the  Ist  August  at  the  chief  offices  of  tlie 
company,  157,  Goswell-street ;  Mr.  E.  J.  Thompson  occupied  the  chair, 
inie  secretary  having  read  the  notice  convening  the  meeting,  the  minutes 
of  the  last  ordinary  meeting  were  read  and  confirmed. 

The  report,  whidbi  was  read  by  the  secretary,  stated  that  the  share  capital 
was  wholly  subscribed,  and  all  calls  had  been  duly  paid.  The  deposit  and 
drawing  accounts  were  daily  increasing,  both  in  number  and  importance. 
The  advance  department  fully  kept  pace  with  the  growth  of  the  resources 
of  the  company.  The  discount  transactions  had  been  largely  augmented, 
and  were  proportionately  profitable.  The  whole  of  the  losses,  which 
hitherto  had  been  small  in  amoimt,  had  been  charged  to  the  year's  account. 
Since  the  last  meeting  a  valuable  lease  had  been  acquired  of  very  con- 
venient premises  in  Cheapside,  at  which  branch  offices  had  been  opened. 
The  total  profits  had  been  such  as  warranted  the  directors  in  recommend- 
ing a  dividend  at  the  rate  of  8  per  cent,  per  annum,  free  of  income  tax ; 
that  the  reserve  fund  be  increased  to  £2,000 ;  and  that  £100  be  written 
off  the  new  offices  account. 

The  Chairman,  in  a  speech  of  considerable  length,  moved  the  adoption 
of  the  report,  congratulating  the  shareholders  upon  the  success  of  the 
company's  operations  during  the  past  year.  He  also  referred  to  the  steady 
progress  of  the  company  from  its  establishment  up  to  the  present  time, 
and  urged  that  the  p>ast  results  were  the  best  guarantee  of  future  achieve- 
ments. With  the  dividend  that  day  declared  the  original  shareholders 
would,  during  the  nine  years  of  the  company's  exist^ce,  have  received 
back  £62  for  every  £100  subscribed,  and  still  the  share  capital  remained 
intact.  They  held  good  and  sufficient  security  to  cover  all  advances  made. 

Mr.  Moore  seconded  the  motion. 

Mr.  Amett  suggested  that  in  future  the  report  and  balance-sheet  should 
be  printed  and  circulated  amongst  the  shareholders  «a  few  days  prior  to 
the  meeting. 

TheChaurman  having  explained  that  the  suggestion  of  Mr.  Amett  could 
not  be  carried  out  without  altering  the  memorandum  of  association,  the 
report  was  adopted,  and  the  dividend  at  the  rate  of  8  per  cent,  per  annum 
declared. 

Digitized  by  LjOOQIC 


1086  London  and  County  Bank. 

Tbe  retiziiig  directan  having  been  Te-elected, 

Hr.  Heilord  proposed  thai  the  ramnuentioii  of  the  direcion  be  £500 
for  the  past  and  all  fature  yean. 

Mr.  Pearcy  aeocmded  the  resolution. 

Mr.  Shorray  objected.  He  thought  the  raaraneiatkin  laiher  too  high. 
He  would  not,  however,  offer  any  amendment. 

The  FBBolntion  was  carried. 

The  retiring  aaditors  were  then  rejected,  and  a  Tote  of  thanks  to  tlu 
secretary  and  other  officers  having  been  accorded,  the  costomaiy  ooni^- 
mesA  to  tho  chairman  concluded  the  bnflonesa  of  the  meeting. 


LONDON  AND  COUNTY  BANK. 


Thb  ordinary  half -yeariy-meeting  of  the  shareholden  of  tins  bask  vai 
held  at  the  London  Tavern,  on  the  3rd  August ;  Mr.  W.  Champioa  J<ffis 
occupying  the  chair.    The  meeting  was  a  very  crowded  one. 

The  report  of  the  directors,  whidi  was  taken  as  read,  was  as  foUom  :— 
^  The  directors  have  the  pleasure  to  submit  to  Ih^e  proprietors  the  htJiaikce- 
sheet  of  the  bank  for  the  half-year  ending  30th  June  last.  They  hsTeife: 
to  report  that,  after  payment  of  all  charges,  interest  to  costoraen,  ui 
tnalrittg  ample  provisiou  for  bad  and  doubtful  debts,  the  net  profits  aawft 
to  £106,821.  3«.  Id.  .which,  added  to  £18,629.  12s.  3d.  brought  fowd 
from  the  last  account,  makes  a  total  of  £125,450.  15t.  Ad.  for  upo^ 
tion.  The  directors  have  accordingly  declared  the  usual  dividond  cf  6  |<r 
cent.,  with  a  bonus  of  9  per  cent.,  making  together  15  per  cent  i^^ 
half-year,  which  will  amount  to  iU.11,790.  Ss.  4d.,  and  leave  £U^  ^' 
to  be  carried  forward  to  profit  and  loss  new  account.  They  nf^  ^^ 
announce  the  decease  of  their  esteemed  colleague  Mr.  Edward  HnS^ 
and  have  to  report  that  Mr.  Edward  John  Hutchins  has  bees  dieted' 
director  in  his  stead.  The  dividend  and  bonus  (together  £3  ps  ^btf^V 
free  of  income  tax,  will  be  payable  at  the  head  office,  or  atasf^^ 
branches,  on  and  aft^  Monday,  the  14th  August." 

Baianee»$hea,  BOth  June,  18«5« 

Dr. 

Capital  paid-up,  £750,000 ;  instalments  unpaid,  £105 £749,895  0" 

Reserv^e  fund,  £250,000 ;  instalments  unpaid,  £105     249,Sd5  *) 

Amount  due  by  the  bank  for  customers*  balances,  &c., 
£10,904,272.     4«.     lid.;     liabilities     on     acceptances, 

£2,998,434,  0«,  4d 13,902,706   5   • 

]?rofit  and  loss  balance  brought  from  last  account, 
£18,629.  12«.  3d. ;  gross  profit  for  the  half-year,  after 
making  proyision  for  bad  and  doubtful  debts, 
£284,800.  9s.  Ad,      an3,4.^D  14  : 


£15,205,9^  1?  J" 


Or. 

Cash  on  hand,  at  head  office  and  branches,  £1,531,962. 13s.  4d.; 

cash  placed  at  call  and  at  nodce,  £1,098,924.  9x. £2,630,887    ? 

Investments,  viz. :— Government  and  guaranteed  stocks, 
£1,005,714.  13ff.  8d.;  other  stoclu  and  securities, 
£113,495,  lo# I,n9,«0    8 


C5arried  forward         £8,750^097  11 

Digitized  by  ^OOQlC 


XtondM  and  County  Banh  ^    1087 

Broaght  forward       •       •••  £3,750,097  U    0 

Btflooantedbillflaxid  advances  to  oustomars  in  town  and  country  11,163,912  15  10 
Freehold  premises  in  Lombard  Street  and  Nicholas  Lane, 
fireebold  and  leasehold  property  at  the  branches,  with 

fixtures  and  fittings ..,        ...       132,305    1  11 

Interest  paid  to  cnstomers 74,213  11    0 

Salaries  and  all  other  expenses  at  head  ofBce  and  branches,  in- 

elnding  income  tax  on  profits  and  salariQB ,       ...        85,457    0    1 

£15,S05,985  19  10 


PBonr  AND  LOSS  ▲ocouirr. 

Interest  paid  to  ooBtomers          ,        £74,213  11  0 

Expenses  as  above ,        85,457  0  1 

Bebate  on  bills  not  due  carried  to  new  account          18,368  8  2 

Dividend  of  6  per  cent,  for  the  half-year        44,716  8  4 

Bonos  of  9  per  cent.         67,074    6  0 

Balance  carried  forward 18,660  7  0 


£803,489  14    7 


Or. 

Balance  brought  forward  firom  last  account     ... £18,639  19    8 

Gross  profit  for  the  half-year,  after  making  provision  for  bad 

IMid  doubtful  debts     284,860    9    4 

£303,489  14    7 


The  Ohairmaa — Gentlemen,  it  is  again  my  privilege  to  lay  before  you 
the  progress  of  our  institution,  by  drawing  your  attention  to,  and  asking 
you  to  adopt,  the  report  of  your  directors  for  the  half-year  ended  on  the 
30th  June  last.  Whether  that  report  is  or  is  not  satisfactory,  it  is  for  the 
meeting  to  de<»de.  Since  we  last  assembled  here  much  haA  happened  in 
the  commercial  world  to  give  commercial  afiairB  a  very  anxious  aspect. 
Many  mercantile  firms  of  great  repute  and  of  great  wealth  have  had  to 
call  their  creditors  together  in  this  metropolis,  and  also  in  the  principal 
towns  in  the  country.  At  the  same  time,  events  in  the  monev  market  of 
India  have  contributed  to  the  general  distrust ;  but  still  we  believe  that 
all  thin  is  consistent  with  the  average  condition  of  the  internal  trade  of 
the  country.  (Hear,  hear.)  The  (Urectors  will  not  withhold  from  you 
the  assurance  whidi  they  feel  due  not  only  to  the  proprietary,  but  to  the 
general  manager  and  the  leading  ofiftcers  of  the  bank,  that  our  participation 
in  all  that  has  happened  around  us  has  been  almost  enviable.  (Cheers.) 
Being  essentially  a  country,  and  only  partially  a  metropolitan  bank,  it  is 
not  to  be  wondered  at,  nor,  indeed,  is  it  presumptuous  in  me  to  state,  that 
we  have  shared  only  in  a  minimum  degree  losses  which  have  occurred.  The 
general  aspect  of  affairs  at  Christmas  last  determined  us  to  take  more  than 
the  ordinary  precautions,  and  the  best  proof  of  this  is  the  dividend  we  have 
declared,  which  we  hope  will  be  entirely  satisfactonr.  (Cheers.)  We  have 
placed  to  profit  and  loss  everything  that  seemed  to  be  necessary ;  and  both 
in  December  and  Jtme  wq  laid  by  a  small  sum  from  profits  for  the  pur- 
pose of  meeting  any  then  undetermined  or  contingent  loss.  We  are  always 
(lesiious,  when  circumstances  will  allow,  to  avoid  any  fluctuation  in  our 


Digitized  by  ^OOQ IC 


1088     .  London  and  County  Bank. 

dividends.    We  are  aware  that  great  variations  in  the  half-yeax'a  reo^ts 
are  inconvenient,  not  only  to  the  Bharehoiders,  but  to  the  establishm^t 
itself,  and  we  shall  rejoice  when  we  are  able  by  the  state  of  the  accounts 
to  avoid  them.    You  will  see  by  the  figures  placed  before  you  to-day  th*t 
the  business  is  largely,  substantially,  and  rapidly  increasing.  (Cheers.) 
Our  cash  balances  from  the  public  have  augmented  duruu;  the  last  eix 
months  to  £1,100,000— a  circumstance  whoUy  without  precedent  in  the 
concerns  of  a  bank.  (Cheers.)    And  I  would  give  you  thia  further  assor. 
ance,  that  the  directors  see  no  cause  whatever,  either  from  increased  com- 
petition  or  any  other  circumstance,  to  arrest  the  progress  of  the  bank. 
(Cheers.)    It  should  be  borne  in  mind,  referring  to  the  question  of  din- 
aends,  that  the  average  rate  of  discount  at  the  Bank  of  England  in  1864 
was  7}  per  cent.,  and,  as  that  is  an  unprecedented  rate,  it  is  not  probaUe 
that  a  similar  opportunity  of  making  such  dividends  will  speedily  retnrc 
But  of  this  the  shareholders  may  be  assured,  that  we  will  adhere  to  tk 
Bank  of  England  rates  as  closely  as  we  can.    Adverting  to  other  matters, 
I  may  mention  that  we  have  in  Ireland  one  estate  still  unsold,  which  ve 
hope  some  day  or  other  will  produce  £7,000  or  £8,000,  which  will  gi>  t>' 
the  credit  of  the  account  to  which  the  sum  belongs.    The  business  of  per. 
f ecting  the  title,  especially  as  it  involvcH  the  case  of  minors,  is  more  tedsocs 
than  was  expected,  but  we  trust  the  title  will  be  perfected  in  a  short  tiz?. 
and  before  we  place  the  estate  in  the  market,  which  we  hope  to  be  afak  t> 
do  before  the  close  of  the  year.    I  may  also  mention  a  circumstance  viika 
occurred,  rather  peculiar  perhaps,  the  day  after  the  last  meeting-^uBalf . 
that  Mr.  Ayre  gave  notice  that  he  intended  to  appeal  to  the  Hook  d 
Lords  i^^ainst  the  decision  in  our  favour  given  by  Lord  Westbmy  u  W 
Chancellor.     But  the  whole  thing  has  terminated  there,  and  v?  hire 
heard  nothing  further  on  the  subject.    We  have  opened  new  brancks  ffff 
in  two  instances— one  at  Bromley,  Kent,  on  the  12th  June,  and  tkotbir 
atBlackheath,on  the  24th  of  last  month ;  but  these  are  only  suh-lirsucb^.s^ 
and  very  inexpensive.    The  total  number  of  our  branches  is  now  l^&su^ 
I  have  great  satisfaction  in  saying  that  the  directors  are  thoroughly  si)^«^ 
that  it  is  much  better  for  us  not  to  go  into  any  new  localities  except  vs^ 
the  influence  of  very  extraordinary   inducements.     (Cheers.)       AVe  »e 
thoroughly  satisfied  that  the  diligent  prosecution  and  extension  of  tb« 
business  of  our  existing  branches  is  the  wisest  policy.  (Hear.)    I  will  w^'^, 
if  you  please,  refer  to  the  balance-sheet.       The  total  amount  d  cds)i 
balances  from  the  public  is   £10,904,272,  being  an  increase  in  the  su 
months  of  £1,124,518.  (Cheers.)     The  liabilities  on  acceptances  are  au^ 
mented  by  £656,835.    I  may  say  that  two  of  the  leading  banks  in  In«hk 
for  which  we  are  the  London  correspondents,  have  a  capital  equal,  and  in. 
one  instance  superior,  to  our  own.    Here  I  may  remark  upon  a  statem^zit 
which  has  appeared  to  the  effect  that  the  London  and  Westminster  Bank 
was  the  first  to  introduce  the  practice  of  separating  the  acceptances  fn^n 
the  cash  balances.    We  can  sdl,  I  am  sure,  bear  witness  that  this  practk^ 
was  first  introduced  by  the  boani  of  the  London  and  County  Bank.  (He^ , 
hear.)    There  has  been  a  decrease  in  the  half-year  upon  the  profit  and  !<>« 
account  of  £3,097.    The  gross  profits  for  the  half-year  amount  to  £2MfiOiK 
showing  a  decrease  since  the  last  half-year  of  £67,194.    Passing  to  th^ 
credit  side  of  the  account,  I  find,  as  regards  the  two  items, "  cash  in  hand '' 
and ''  cash  placed  at  call,"  that  there  is  an  increase  upon  those  two  sums, 
taken  together,  of  £176,228.  (Hear,  hear.)    With  Te^>eci  to  investmentis 
in  €k>vemment,  guaranteed,   and  other  stock,  there  is  an  incresfv  cf 
£167^803.    Discounted  biUs  and  advances  to  customers  in  town  and  coun- 
try amounted  upon  this  occasion  to  £11,163,912.  (Cheers.)  The  increase  in 

Digitized  by  LjOOQIC 


Londan  and  County  Bank.  1089 

this  important  branoh  of  our  daily  operations  is  oontinnal  and  steady^and 
the  ad(Htion  in  the  last  six  months  is  £1^30,865,  which  I  doubt  not  is 
fully  up  to  the  average.  ^Hear,  hear.)  Under  the  head  of  "  freehold  and 
leasehold  premises,  <lrc.,  there  is  an  increase  of  £1,127,  which  arises 
almost  wholly  from  fittings  in  the  branches  recently  opened.  In  the  in- 
terest paid  to  customers  there  is  a  reduction  this  half.yeor  of  £20,818, 
which  is  entirely  owing  to  the  lower  rates  of  interest  which  have  prevailed. 
With  respect  to  the  salaries  and  other  expenses  at  the  head  office  and 
branches,  there  has  been  dturing  the  last  six  months  an  increase  of  £7,114, 
but  more  than  £6,000  of  that  of  various  additions  which  have  been  made 
during  that  period  to  the  well-earned  salaries  of  all  your  officers,  (Cheers.) 
Tlie  profit  and  loss  account,  as  usual,  of  items  the  principal  part  of  which 
I  have  already  gone  through,  including  the  dividend  and  bonus  which 
have  been  declared  by  the  directors— namely,  at  the  rate  of  30  per  cent,  per 
amium.  (Cheers.)  After  making  allowance  for  all  these  sums  we  carry 
forward  £13,601  to  the  next  account.  The  proprietors  have  already 
been  inform^  of  the  loss  of  our  esteemed  colleague  Mr.  Edward  Huggins. 
He  was  greatly  respected  among  us ;  and  I  may  mention  that  he  brought 
many  accounts  to  the  bank,  either  himself  personally,  or  through 
his  connection.  We  have  had  the  satisfaction  of  filling  up  his  place  at 
the  board  by  the  election  of  Mr.  Edward  John  Hutchins,  who  is  chair- 
man of  the  Khymney  Iron  Company,  and  a  director  of  the  London  and 
South- Western  Railway.  He  has  been  known  for  years  to  some  of  your 
directors,  and,  knowing  his  business  and  other  qualifications,  we  place  his 
nomination  before  you  with  peculiar  satisfaction.  (Cheers.)  There  is  one 
part  of  our  affairs  which  is  eJways  of  particular  interest,  because  it  affords 
a  test  of  the  progress  of  the  bank — ^I  mean  the  number  of  accounts.  (Hear, 
hear.)  Tlie  total  number  of  accounts  kept  with  the  bank  in  town  and 
country  on  the  30th  June  is  44,616  ;  there  having  been  an  addition  during 
the  six  months  of  2,844  new  accoimts.  (Cheers.)  The  position  of  the 
directors  is  becoming  more  rcsix)nsible  and  laborious  with  the  rapidly 
increasing  business,  and  they  entertain  a  very  confident  hope  that  the 
profits  which  are  likely  to  arise  in  the  future  career  of  the  London  and 
County  Bank  will  be  such  as  will  compare  as  favourably  aa  they  now  do 
with  those  of  the  first  establishments  of  the  same  cliaracter  either  in  this 
metropolis  or  elsewhere.  (Cheers.)  Before  I  sit  down  there  is  one  other 
gratifying  circiunstance  I  would  wish  to  mention.  You  all  recollect  and 
had  great  respect  for  our  friend  Mr.  Cory,  who  died  about  a  year  and  a 
half  ago,  and  his  daughter,  who  died  within  the  last  week  or  two,  has  left 
£500  to  the  provident  fund  of  this  establishment.  That  is  an  instance  of 
gratitude  to  the  bank,  wiiich,  I  think,  deserves  to  bo  remembered,  and 
ought  to  be  duly  appreciated.  (Cheery.)  The  chairman,  having  expressed 
his  readiness  to  answer  any  questions,  moved  the  adoption  of  the  report. 

Mr.  Bligh  seconded  the  resolution  for  the  adoption  of  the  report  and  the 
balance-sheet,  and  no  one  having  risen  to  address  the  meeting. 

The  Chairman,  after  a  short  pause,  put  the  motion  to  a  show  of  liands, 
when  it  was  carried  amidst  cries  of  "  ail,  all,"  and  general  cheers. 

Mr.  Peede,  as  a  shareholder,  said  he  felt  the  time  had  come  when  ho 
could  propose  a  resolution  which  he  had  had  under  consideration  for  some 
time  past.  Taking  the  year  1854  as  a  starting  point,  he  found  that  the 
bank  had  now  doubled  the  capital  it  had  then,  that  it  had  145  branches 
instead  of  77,  that  its  profits  had  risen  from  £41,775  to  £166,995,  that  the 
dividends  had  been  trebled,  or  raised  from  £10  to  £30  per  cent,  per 
annum,  and  that  the  shares  had  been  largely  augmented  in  vsduo.  He 
thought,  under  these  circumstances,  the  time  had  come  to  vote  an  increased 
VOL.  XXV.  83 


Digiti 


izedbyLnOOgle 


1090  Eurapean  Bank. 

remuneration  to  the  directors^  and  without  aaothw  word,  he  would  more 
that  £2,000  additional  be  paid  to  the  board  for  their  BerrioeSyBudi  payment 
to  date  from  the  Ist  of  January  last. 

Mr.  Potter  seconded  the  resolution,  which  was  immediately  pat  and 
carried  unanimouBly,  amidst  loud  applause. 

The  Chairman,  on  behalf  of  himself  and  ooUeagues,  thanked  the  meeting 
for  that  proof  of  confidence  which,  indeed,  he  thought  would  not  be  with- 
held  because  the  directors  were  not  likely  to  be  the  last  to  participate  in 
the  prosperity  of  the  bank,  seeing  the  labours  they  had  to  undergo  in  con- 
nexion with  its  increased  and  increasing  business.    (Cheers). 

A  cordial  rote  of  thanks  to  the  chairman  terminated  the  businew. 


CONTINENTAL  BANK  COKPORATION,  LIMITED. 

An  extraordinaiv  general  meeting  of  the  shareholders  in  this  compasj 
was  held  at  the  London  Tarem,  on  the  7th  August,  in  order  to  ooodckr 
the  propriety  of  winding-up  the  company  volimtarily ;  Mr.  Willuus 
Walter  Car£^  in  the  chair. 

The  Chairman  said  the  meeting  was  convened  for  the  purpose  <A  plarlii^ 
the  bank  in  liquidation,  under  the  proyisions  of  the  Act  of  Parliament.   It 
had  been  held  sooner,  perhaps,  than  it  otherwise  would  have  been  in  coo$«* 
quence  of  the  requirements  of  the  Stock  Exchange,  who  could  not  fix  a  tia<' 
for  a  settlement   in  the  shares  of  the  London  and  Mediterranean  'Bti^^ 
with  which  it  was  proposed  to  amalgamate,  until  the  detcrminatioiL  to  ^ 
now  come  to  was  formally  known.    The  whole  of  the  sharebolden  btJ 
already  been  made  acquainted  with  the  terms  of  the  arrangement  bTirL*ci 
the  London  and  Mediterranean  Bank  took  up  the  business  of  the  C«e&- 
nental  Bank  Corporation,  and  nine-tenths  of  their  number  had  gins  ^ 
assent  to  the  proposed  winding-up  of  the  latter ;  but  stUl,  aa  &  Btas  of 
form,  it  was  necessary  that  he  should  move  the  following  read's 
viz. : — ^^  That  the  Continental  Bank  Corporation,  Limited,  be  w<nod  up 
voluntarily." 

Mr.  W.  J.  Maxwell  seconded  tie  motion,  which  was  then  put  mi 
unanimously  agi'eed  to. 

The  Chairman  said  it  would  be  necessary  to  hold  another  meeting  t' 
confiim  the  resolution  passed  that  day,  and  that  meeting  they  intended  to 
call  for  the  25th  August,  when  the  directors  expected  to  be  able  to  Ut 
before  the  shareholders  the  accounts  of  the  company  made  up  to  the  tinir 
of  the  amalgamation  with  the  London  and  Mediterranean.  At  their  hL>t 
meeting  the  directors  had  to  report  a  loss  to  the  amount  of  £13,000  oi«L 
By  the  arrangement,  however,  with  the  new  company  that  sum  would  \^ 
provided  for  in  the  sale  of  the  goodwill  of  the  business  of  this  companv, 
and  if,  upon  realising  the  estate,  there  were  any  balance  of  profit,  tK> 
directors  would  be  glad  to  give  it  to  the  shardiolders  in  the  shi^  cf  » 
dividend. 

The  proceedings  then  terminated. 


EUROPEAN  BANK.  XJMITED. 

Thb  half-yearly  meeting  of  the  shareholders  in  this  bank  was  held  at  tb^ 
London  Tavern  on  the  7th  August ;  Mr.  Charles  Bye  Colchester  in  th« 
chair. 

Digitized  by  VjOOQIC 


European  Bank.  1091 

The  roporti  which  was  read,  raid  :<— 

''The  directoTB  have  the 'pleasure  to  submit  to  the  proprietors  their 
third  half-yearly  report,  ended  30th  June  last,  which  cannot  fail  to  be  con- 
sidered otherwise  than  satisfactory.  It  will  be  perceived  from  the  balance- 
sheet  that  the  gross  profits  realised,  including  the  sum  of  £2,271.  16<.  2d^ 
broi]ght  forwa^  from  last  account,  amount  to  £50.446.  69.  M. ;  and  that, 
after  defraying  expenses  of  management,  directors  remuneration,  rebate 
on  bills,  luui  maMng  a  full  allowance  for  bad  and  doubtful  debts,  a  net 
profit  remains  of  £29,685.  6s.  Qd,  The  directors  recommend  that 
£16,380. 15<.  Od.  be  applied  for  the  payment  of  an  interim  dividend,  being 
at  the  rate  of  5  per  cent,  per  annum,  free  of  income-tax,  that  £3,200  be 
vritten  off  premises,  purchase,  and  preliminary  expense  accounts,  and  that 
the  balance,  £10,104.  lis.  be  carried  to  profit  and  loss  new  account,  to  be 
defdt  with  at  the  close  of  the  financial  year,  when  the  premium  accruing 
from  the  transfer  of  the  business  of  the  late  London,  Birmingham,  and 
South  Staffordshire  Bank  will  also  be  available.  The  directors  continue 
to  pursue  the  policy  of  seeking  a  sound  business,  and  look  with  much 
satisfaction  to  the  steady  progress  made  during  the  past  six  months.  It  is 
reiy  gratifying  to  the  directors  to  find  themselves  in  a  position  to  report 
^Tourably  as  regards  the  branches,  all  of  which  have  produced  profitable 
results.  The  directors  have  to  acknowledge  many  valuable  accounts  intro- 
duced to  the  baidc  by  shareholders,  in  answer  to  an  appeal  made  by  the 
manager  at  the  last  meeting,  and  hope  for  a  continuance  of  their  support," 


BALAirCE-SHEBT. 

Dr. 

Capital  paid-up,  42,966  shares  at  £15 

Keienro  fond  •••        •••        •••        •••        •••        ..• 

I'ockimed  dividends         

Amount  due  by  the  bank  on  current  and  deposit  accounts 

Amount  due  by  the  hank  on  bills  payable       

Amount  duo  by  the  bank  on  foreign  and  other  accounts 
balance  of  profit  and  loss  account,  being  net  profit   ... 

Total    ...        £2.340,716    2    1 


Cf. 

OoYemment  securities  and  stocks  at  head  office  and  branches 

Cash  on  hand  at  bankers  and  at  call      ...        

Coupons  on  hand 

Foreign  money  and  bar  silver     

liank  premises,  furniture  account  at  head  office  and  branches 
Bills  £scounted  and  foreign  bills  pnichased,  the  latter  being 

calculated  at  the  rates  of  exchange  of  the  30th  June 
Advances  on  English  and  foreign  government  stocks,  sundry 

loans  on  securities,  draft  and  foreign  current  accounts  ... 

Prelimhiary  expenses       ,. 

I*ttrcha»c  account 


£644,490 

0 

0 

31,393  10  10 

1,090  10 

3 

545,506 

3 

0 

844.271 

0 

2 

244,279 

2 

1 

29,685 

6 

9 

£60,576  19  10 

148,946 

17 

2 

23,161 

15 

8 

10,915 

4 

6 

14,508  17 

5 

893,176 

9 

8 

,634,666 

6 

11 

24,763 

11 

4 

30,000 

0 

0 

Total £2,340,71(5    2     1 

itized  by  Google 


Digitiz 


1092^  European  Bank. 

rtOFIT  AXD  UOSS  ACOOUST. 

Dr. 

Carrent  expenses  at  bead  office  and  branches,  directors'  fees, 

and  alWance  for  bad  and  doubtfal  debts £20,760  19  U 

Balance       S9,663    6   9 


Total X50.446    6   8 

Dividend,  at  the  rate  of  5  per  cent,  per  annum           16,112    5   0 

Income-tax  on  the  same 268  10   9 

Amount  written  off  for  bank  premises,  porchase  account,  and 

preliminary  expenses 3.200    0   0 

Balance  to  profit  and  loss  new  account 10,104  11    0 

£29,685    6   9 


Or. 

Amount  broQffht  oTer  from  old  account £2,27116   3 

Gross  profits  for  half-year,  after  payment  of  interest  to  cos. 

tomers  and  rebate  on  bills 48,174  10  C 

Total £d0,446    6   8 

Balance  brought  down         £29,685    6  9 

The  Chairman  said  that  it  afforded  him  much  pleasnre  to  propose  that 
the  report  and  statement  of  acooonts  which  had  been  circulated  among  tht* 
proprietors  should  be  receiyed  and  adopted.  He  oonld  not  bot  feel  thst 
the  report  would  be  equally  satisEactory  to  them  as  to  the  directors,  more 
particularly  when  they  bore  in  mind  the  period  of  time  which  had  di^ 
sinoe  their  last  meeting.  As  they  were  aware,  it  had  been  a  six  months  ot 
very  great  commercial  depression,  and  much  heayy  losses  had  been  sustaiDed 
by  both  banking  and  financial  establishments.  Notwithstanding  these 
commercial  calamities,  he  was  glad  to  say  that  the  European  Bimk  h»i 
escaped  without  any  great  loss.  Indeed,  tiieir  loss  had  been  altogether  ci 
such  a  trivial  description  that  it  was  hardly  worth  notice.  This  must,  h« 
thought,  be  very  gratifying  to  all  connected  with  the  baz^  as  it  show?J 
that  the  business  must  have  been  conducted  with  great  caution  and  care. 
There  was  one  item  in  the  statement  of  accounts  whidi  might  appear  rather 
large.  He  alluded  to  the  liabilities  and  aooeptanoes,  which  amounted  to 
£884,271.  But  when  he  told  th«m  that  more  than  one-half  of  that  amount 
was  made  of  drafts  drawn  by  their  branches  abroad  on  the  head  office,  at 
trom  three  days  to  one  month,  they  would  at  once  see  thai  there  wa9  b^^ 
risk  from  that  source ;  on  the  contrary,  it  waa  one  of  the  largest  sooroe^ 
of  profit.  It  afforded  not  alone  a  large  revenue  to  the  baij^,  but  also  showed 
that  the  credit  of  the  bank  abroad  was  increasing.  During  the  past  bslf- 
year  their  branches  had  all  worked  satisfactorily,  and  changes  were  m^^ 
in  the  Paris  branch  which  there  was  good  reason  to  believe  would  yield  good 
results.  These  changea  were  worlunff  most  satisfactorily.  He  regret 
that  on  account  of  some  legal  diffiomties  they  had  not  been  able  to  g«t 
possession  of  the  premises  at  the  back  of  the  bank  as  yet,  but  the  director 
had  been  assured  that  the  delay  would  not  be  more  tlum  a  few  days  or  s 
week  longer.  When  they  had  possession  of  these  premises  the  dire^n 
would  be  able  to  receive  both  the  shareholders  and  their  custoineis  in  « 

Digitized  by  LjOOQIC 


Carli8k  (My  and  District  Bank.  1093 

befitimg  manner,  and  they  would  be  enabled  to  conduct  the  biiBiness  of  the 
bank  as  it  ought  to  be  conducted.  At  present  the  directors  felt  that  they 
should  apologise  for  the  many  inoonyeniences  which  their  customers  had  to 
sufifer  while  transacting  business  at  the  bank,  but  this,  he  need  not  say, 
was  entirely  owing  to  the  smallness  of  their  premises.  He  hoped  that 
this  state  of  things  would  be  entirely  obviated  before  the  end  of  the  next 
six  months.  The  directors  continued  to  entertain  the  opinion  that  this 
was  a  successful  company,  and  that  the  success  which  had  already  accom- 
panied its  operations  would  continue.  In  fact,  they  felt  that  that  continued 
Huccess  was  sure.  The  shareholders  had  only  to  continue  that  support  to 
the  directors  which  they  had  hitherto  afforded  to  place  the  company  in 
one  of  the  first  positions  in  the  city  of  London.  As  far  as  the  directors 
were  concerned  they  would  on  their  part  do  all  that  lay  in  their  power 
to  ensure  that  success,  and  he  hoped  that  the  shareholders  would,  by 
bringing  accounts  and  deposits  to  the  bank,  give  their  assistance.  He  did 
not  know  that  there  was  anything  else  worth  referring  to,  and  he  would 
therefore  conclude  by  moving  that  the  report  and  statement  of  accounts 
presented  be  received  and  adopted. 

Sir  Robert  Garden  seconded  the  motion. 

A  Shareholder  said  the  purchase  account  was  put  down  at  £30,000.  He 
wished  to  know  what  that  amount  covered  ? 

The  Ohairman  said  it  covered  the  purchase  of  the  English  and  Irish 
Bank  in  Dublin,  and  the  Bank  at  Marseilles.  It  was  proposed  to  write 
ofif  £3,200. 

A  Shareholder  said  the  bank  premises,  <&»).,  were  put  down  at  £14,500, 
and  inquired  if  any  fresh  purchases  were  induded  in  that  sum  ? 

The  Chairman:  No. 

The  motion  for  the  adoption  of  the  report  was  then  put  and  agreed  to. 

The  Chairman  then  proposed  that  a  dividend  at  the  rate  of  5  per 
cent,  per  annum  be  payable  on  and  after  the  21st  inst.,  and  stated  that 
the  warrants  would  be  sent  free  of  income-tax.  He  also  expressed  a  hope 
that  at  the  end  of  the  year  the  directors  would  have  a  considerable  sum 
to  dispose  of,  and  trusted  they  would  be  able  to  deal  liberally  with  the 
reserve  account  and  the  shareholders  in  the  shape  of  dividend. 

The  motion  was  put  and  agreed  to. 

Mr.  King,  in  proposing  a  vote  of  thanks  to  the  ohairman  and  directors, 
said  he  re^tided  the  report  as  very  satisfactory,  and  considered  the  Euro- 
pean Bank  one  of  the  most  successful  banks  which  had  been  established. 
If  the  shareholders  assisted  the  directors  as  they  had  hitherto  done,  he  felt 
confident  that  the  establishment  would  achieve  great  results. 

The  motion  having  been  put  and  agreed  to. 

The  Chairman  briefly  aclmowledged  th%  compliment,  and  the  proceedings 
then  terminated. 


CARLISLE  CITY  AND  DISTRICT  BANK. 

Ths  directors  of  this  bank  have  declared  a  dividend  of  £1.  2s,  6d,  per 
share,  for  the  half-year  ending  30th  June,  1865,  being  equal  to  18  per 
cent,  per  annum.  The  profits  for  the  half-year,  after  payment  of  expenses, 
iimount  to  £6,978. 17«.  2d.,  being  at  the  rate  of  £24.  la.  Zd,  per  cent,  per 
annum.  After  paying  the  above  dividend,  and  £480  for  alterations,  safes, 
and  fumitore  at  the  two  new  branch  offices,  there  will  remain  in  the 
auxiliary  fund  a  sum  of  £3,653.  15«.  M,  The  guarantee  fund  now  stands 
at  £38,000. 


Digiti 


ized  by  Google 


1094 


JouU-Stock  DUcount  Company. 


Annexed  i»  an  abstract  of  the  balanoe-Bheet  ol  theoompaliTfor  half-year 
ending  30th  June,  186^  ' 


LUIUUXIE8. 

Gipital  Stock  ...        .^        

Deposits,  balAnces  of  accounts,  and  notes  in  circolatioii 

Guarantee  fund      

Aujuliary  fund        ^^ 

Net  profits  for  the  half-year        ]\,        \[] 


£58.000    0  0 

367,967  17  4 

28,000    0  0 

1,894  18  4 

6,978  17  2 

£462,831  12  10 


ASBETB. 

Hank  premiftcs,  old  and  new,  aud  at  Cockennonth      ... 
Cash  and  bills  in  the  bank,  adyauces  on  sccorities,  &c. 


£7.183    9   7 
455,698    3   3 

£462,831  13  10 


nOm  AND  LOSS  ABD  ADXUJABT  Fin[D« 


Dr. 


Property  and  income-tax  paid     

Dividend  to  30th  June,  18G5       

Auxiliary  fund  for  alterations  and  famituro  at  new  branches 
Auxiliary  fund  for  balance         ^ 


Cr. 
Balance  of  anxiliary  fund,  on  14th  Fcbnmry,  1865 

Netprofits,  30th  Juno,  1865        

Transfer  fees,  &c 

Diyidend  on  bad  debt 


Undivided  profits  as  under  :^» 
Guarantee  fund  .., 

Anxiliaiy  fond 


£133    7  7 

6.220    0  0 

480    0  0 

3,653  15  (^ 


£9,487    3 

1 

£2,453  16  11 

6,978  17    2 

10  12    0 

43  17    «> 

£9,487    3    1 

£28,000    0 
3,053  15 

0 
6 

£31,653  15 

6 

JOINT-STOCK  DISCOUNT  COMPANY,  LIMITED. 

The  fourth  ordinary  general  meeting  of  the  proprietors  of  this  compAoy 
was  held  on  the  31st  July  at  the  London  Tayem ;  iho  d^uty-chairniaii, 
Mr.  Wm.  Charles  Brown,  presiding. 

The  Secretaiy,  Mr.  H.  J.  Westrup,  read  the  report  and  accounts,  which 
were  as  follows : — 

^  It  is  with  great  satisfaction,  considering  the  difficulties  which  had  to  be 
surmounted  in  connection  with  the  recent  and  protracted  oommercial  crisis, 
that  the  directors*  find  themselyes  enabled  to  present  a  statem<;nt  of  accoont^, 
showing  a  gross  profit  of  £54,073.  16s.  3d.  indusiye  of  £3,^  24.  lid. 
brought  forward  from  last   account.      After  deducting  the.xebate  of 


Digitized  by  LjOOQIC 


Joint-Stock  Discount  Companij.  1095 

interefit  on  bills  not  due  and  the  current  exi)ense8,  the  balance  Laa  been 
appropriated  for  the  payment  of  a  dividend  at  the  rate  of  6  per  cent,  per 
annum,  or  6«.  per  share,  carrying  forward  £6,673.  4«.  7ci.  to  profit  and  loss 
new  jiooount.  The  directors  have  set  aside  an  amount  as  jkrovision  against 
Ii«s  in  reaped  of  bad  debts  which  they  consider  will  be  amply  sufficient 
for  the  purpose.  Of  the  amount  of  the  company's  claim  against  the  Leeds 
Banking  Company,  more  than  10^.  in  the  pound  has  been  sdready  received, 
and  there  is  no  doubt  of  the  entire  amount  being  realised,  with  interest. 
Xr.  Joseph  Bravo  and  Mr.  H.  V.  East  have  been  elected  to  fill  the  vacant 
»eata  at  the  board  caused  by  the  retirement  of  the  late  Mr.  T.  W. 
Henderson  and  the  death  of  the  late  Mr.  J.  H.  B.  de  Castro. 

B  alancC'Sheeff  30th  June,  18G5. 

Dr. 
Capitil— 80,000  shares,  JCIO  paid,  £800,000 ;  less  unpaid  calls, 

£l),0O6.  5s.  lU.  X790,993  U    1 

Reserve  fund 30,000    0    0 

Amount  due  on  loans,  deposits,  &c.,  &c 2,807,600  12     4 

Aoionut  carried  to  profit  and  loss  account,  after  making  allow- 
ance for  bad  and  doubtful  debts  • 50,830  13    4 


£3,769,424  19  11 


Or. 

Inveetraents  in  Consols  and  cash  at  bankers £306,802    9  10 

Bills  discounted,  adrances,  &c.,  &c 3,460,202  14    2 

LesM,  fixtures,  furniture,  &o.               2,419  15  11 


£3,769,424  19  11 


ProJU  and  ton  for  the  m  months  ending  30th  June,  1865. 

Dr. 

Current  expenses^  including  salaries,  rent,  stationery,  advcr- 
tiscoients,  directors'  fees,  auditors*  fees,  depreciation  in  value 
of  lease  and  ofiSoe  furniture,  income-tax,  &c.  ...        ...        £6,517    2  ll 

Bebate  on  bills  discoonted  not  yet  due— -carried  to  interest 
newaoocMmt  16,983    8    9 

Dividend  at  the  rate  of  6  per  cent,  per  annum  24,000    0    0 

fiftkuoe  carried  to  pxofit  and  loss  new  account  6,573    4    7 


Cr. 

l^alance  of  profit  and  loss  account,  31st  December,  1664 
Balance  of  gross  profits  brought  down  


The  Ohairmaii  said  'that  though  the  directors  in  the  report  said  it  was 
with  satisfaction  that  they  announced  the  dividend,  they  did  not  mean  to 
say  that  the  amount  of  6  per  cent,  was  in  itself  a  matter  of  congratula- 
tion, but  that  it  was  satisfactory  that  they  were  in  a  position  to  make 
that  annomioement  tmder  the  adverse  circumstances  wluch  had  recently 
tircvaaled.  There  had  been  many  heavy  failures  during  the  last  two  half- 
years.    The  company  ha^l  been  in  existence  only  about  two  years,  and  for 


£54,073  16 

3 

...  .   £3,243  2 
50,830  13 

11 

4 

£54,073  16 

3 

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1096  JoitU-Stock  Discount  Company. 

balf  tLat  i>eriod  there  had  been  severe  trials  in  the  oommercial  world.  If 
they  had  had  seven  years  of  good  trade,  and  out  of  that  only  one  year  of 
difficulties,  they  would  have  stood  in  a  very  different  and  much  moix- 
favourable  position.  They  thought  it  satisfactory  to  have  laid  by  Buch  a 
sum  as  they  had  during  such  difficulties,  and  still  have  a  balance  of  £6^*1) 
to  carry  forward.  ^^^^  shareholders  had  desired  to  have  some  ne« 
directors  on  the  board.  Two  gentlemen  had  already  joined  the  board.  A 
third  would  join  immediately,  and  with  their  assistance  they  would  be 
able  to  get  on  more  comfortably.  It  required  a  special  capacity  on  the  part 
of  the  men  whom  they  appointed  as  directors.  Some  few  oi  the  8brt- 
holders  objected  to  "Mx.  Eoxon,  their  solicitor,  being  on  the  board.  Mr. 
Rixon  felt  annoyed  at  the  remarks  that  were  made,  and  immediately 
on  the  first  meeting  of  the  board  said  he  was  perfectly  willing  to  rm^ 
his  post.  The  directors  felt  that  Mr.  Bixon's  services  were  bo  valnaWt 
during  a  period  of  difficulty,  in  which  be  had  shown  great  attention,  that 
they  could  not  justify  themselves  in  accepting  the  resignation.  The  result 
was  that  he  proposed  Mr.  Noyes,  who  is  solicitor  to  the  Landon  Finano.*^ 
Association,  aud  he  was  appointed  solicitor  to  the  company,  j<untly  vitb 
Messrs.  Bixon  and  Son.  The  directors  were  anxious  for  success,  and  woolJ  u> 
what  they  could  to  ensure  it,  but  wished  the  shareholders  tooontribnte  b) 
bringing  business  and  d^sits.  (Hear,  hear.^  He  (the  chairman)  tkn 
moved  that  the  report  ana  accounts  be  received  and  adopted.  The  mptioo. 
ho  observed,  would  be  seconded  by  the  managing  director,  Mr.  WilkiiB'* 
It  was  to  be  regretted  that  that  gentleman  had  not  addressed  themiD*'^ 
frequently,  for  he  was  sure  that  the  more  they  heard  from  him  the  Utt^ 
they  would  be  satisfied. 

Mr.  Wilkinson,  the  managing  director,  seconded  the  motion.   He  f*-^ 
he  thought  it  was  right  to  let  them  know  the  way  the  company  ▼»^5*^- 
on.     They  had  been  and  were  going  on  through  very  trying  tim*  ^^ 
state  of  ^e  money  market  was  worse  than  it  was  in  1847  or  183^ '<  ^^^ 
taking  all  those  things  into  consideration^  and  that  they  w^  &  f^ 
company  and  had  difficulties  to  surmoimt,  it  ought  to  be  gratifying*^^ 
present  state  of  the  discount  market,  when  Siey  had  oompetiticii  ^ 
opposition  iu  the  shape  of  finaucial  companies  which  allowed  higher  n^^ 
for  deposit,  that  they  had  taken  the  position  they  had,  aod  had  ^^^  ?|^ 
a  higher  rate  for  money  than  other  banks  and  discount  companies-   Tb|^^ 
could  not  give  more  than  the  bank. of  England,  and  it  was  essentiai  ^ 
the  credit  of  the  company  should  be  maintained.    He  did  not  belief  w^J 
could  have  a  repetition  of  those  difficulties.    If  they  did,  the  diwrt"'^ 
would  be  at  their  posts  to  assist  him  iu  overcoming  them  and  maki^  y^ 
company  a  great  company.    But  they  had  surmounted  great  difli<^wc<?«J 
Every  discount  company  was  opposing  each  other ;    but  they  had  p 
£800,000  capital,  which  none  of  the  others  had.     They  had  dif iden'^^^r 
pay  on  it,  but  the  confidence  it  inspired  was  sure  to  bring  iu  peisoie  »ii^ 
deposits.     It  wa«  with  deposits  they  made  money.    The  £400,000  w 
helped  them  very  much,  and  although  financial  companies  were  i»pn 
5  per  cent.,  6  per  cent.,  and  7  per  cent.,  they  could  never  affoid  t*>I«y 
more  for  deposits  than  the  bank  rate  of  interest.     Messrs.  Gnmey  and  to. 
had  turned  themselves  into  a  discount  company.    A  letter  had  beeo  s^^- 
to  them  asking,  would  Gumeys  and  Co.  affect  them  ?    He  said  they  ^<^  ^ 
not.    He  maintained  that  discoxmt  companies  would  succeed  if  they  nv^'^ 
together.     With  reference  to  the  prospects  of  the  company,  they  ^^^^ 
opening  new  accounts,  and  they  were  making  great  progi«*-    ^*°?^ 
fhareholders  complained  that  their  shares  had  ftdleu ;  but  if  they  oni} 
looked  into  the  state  of  things  for  the  last  six  months,  there  was  »'  * 

Digitized  by  VjOOQIC 


Joint-Stock  Discount  Cmnpmiy,  1097 

couceru  in  London  that  had  not  gone  down  6, 7, 8,  or  10  per  oont.  The 
Alliance  Bank  was  at  11  x^remium,  and  it  was  then  at  3  or  4 ;  the  City 
Bank  was  at  125,  and  was  then  at  105 ;  the  Bank  of  London  was  at  160 
:iDd  162,  and  it  was  then  at  138.  So  with  the  London  Joint-Stock  Bank, 
aud  many  others,  and  a  comparison  will  show  tliat  this  Company  has 
gone  down  the  least.  Many  persons  holding  shares  were  disheartened. 
But  they  must  stick  to  their  property.  If  they  adopted  that  course,  he 
was  satisfied  this  would  be  a  great  concern.  A  shareholder  has  remarked, 
uu  his  name  appearing  as  director  of  another  company,  which,  however, 
he  belonged  to  long  before  this  company  started.  The  way  to  make  a 
coucem  prosper  was  to  extend  its  connections  and  business ;  and  with  this 
view,  and  assuming  he  was  offered  a  seat  on  the  direction  of  any  bank 
tliat  could  do  this  company  good — so  long  as  the  interests  of  the  Joint- 
Stock  Discount  Company  were  not  neglected — he  should  not  hesitate  to 
accept  it,  as  his  great  aim  was  to  raise  this  company  in  the  estimation  of 
the  public,  and  with  their  help  and  confidence  he  would  make  it  a  great 
concern.     (Hear,  hear.) 

Mr.  Slater  believed  this  was  not  the  end  of  the  financial  year.  He 
wished  to  ask  whether  the  two  new  directors  elected  would  be  subject  to 
confinnation  by  the  shareholders.  He  wanted  to  know  the  remuneration 
^dven  to  the  directors  and  managing  director.  John  Fisher,  Esq.,  was  a 
ilirector.  What  had  become  of  him  ?  He  objected  to  a  dividend  of  6  per 
cent.,  and  moved  as  an  amendment  that  it  should  be  7  per  cent,  instead  of 
t)  per  cent.  Their  expenses  were  largely  increased.  This  was  not  a  new 
iustitation.  It  was  a  limited  company.  As  a  joint-stock  company  they 
paid  for  an  old  businass,  and  paid  a  handsome  sum  for  it.  He  saw  a 
falling  ofiT  of  half  a  million  on  de^KJsit  and  loans,  and  the  National  Dis- 
count, with  a  capital  of  £600,000,  had  a  reserve  of  £300,000,  and  they 
with  a  capital  of  £800,000,  had  only  a  reserve  fund  of  £30,000.  There 
hiid  been  a  depression  in  their  shares  of  £2  x^er  share.  This  company 
\si\&  not  like  other  discount  companies,  which  had  been  formed  for  the 
clique  bringing  them  out,  and  not  for  the  advantage  of  the  shareholders. 
Ho  also  inquired  whether  they  had  any  recognised  chairman. 

Mr.  Galsworthy  said  the  directors  might  well  congratulate  the  share- 
holders on  the  satisfactory  statement  niado  by  the  managing  director.  It 
:qipcared  on  examination  they  had  been  doing  a  very  soimd  business. 
Taking  the  o^xirations  of  the  coDipany  in  throe  periods,  and  taking  the 
capital  at  £3,400,000,  the  profit  was  '86  per  cent.  Then,  taking  it  at 
£3,300,000,  the  profit  was  "83  per  cent. ;  aud  then,  when  the  capital  was 
£3,347,tK)0  it  was  1  per  cent.  Mr.  Slater  had  spoken  of  a  falling  off 
iu  the  deposits  and  loans,  and  ho  thought  if  they  would  compare  the 
statement  they  would  find  the  deposits  had  increased,  and  not  fallen.  The 
amount  of  profit  by  the  working  of  the  company,  looking  at  it  with  pre- 
cise figures,  during  tlie  first  three  years  wa^s  very  much  the  same,  and 
increased  from  decimals  to  one  per  cent.,  and  that  being  spread  over  the 
capital  it  would  be  more  than  they  had  ever  received  before,  except  for 
thii  fapt  that  the  capital  was  so  extremely  large.  The  purchased  business 
was  a  small  business  as  compared  witli  the  present  business  of  the  com- 
pany, aM<l  he  thought  they  should  distribute  the  dividend  the  directors 
recommended.  He  asked  them  not  to  jeopardise  anything,  but  to  receive 
the  dividend  recommended  by  the  directors. 

The  Chairman  said  that  the  directors  had  thoroughly  considered  the 
Kubject  of  the  dividend,  which  rested  with  them  to  declare.  Mr.  Slater 
had 'referred  to  the  sui-plus.  They  thought  it  better  to  let  it  go  to 
the  end  of  the  year,  and  then  decide  what  was  to  go  to  the  reserve  fund. 

Digitized  by  ^OOQ IC 


1098  HampBhire  Banhing  Company. 

As  to  the  newly-appointed  directors,  those  appointed  did  not*  require 
confirmation.  Mr.  Fisher  some  time  ago  expressed  a  wish  to  retire, 
and  he  did  bo.  The  remuneration  of  the  directors  wa»  fixed  by  tl.  • 
articles  of  association.  The  managing  director  had  a  minimum  of  £3,000 
per  annum.  It  had  been  a  matter  of  complaint  that  their  expenses  haJ 
been  £1,600  in  excess.  He  could  not  say  what  the  increase  was.  Tiny 
had  increased  their  capital,  and  their  business  was  very  a)nsiderable,  aihl 
requirwl  to  bo  well  and  carefully  managed.  He  did  not  think  they  oouM 
i;o  on  without  some  additional  assistance.  As  to  the  falling  off  in  the 
loans  and  ileiK)sits,  it  was  imx>ossible  to  give  details  how  they  arose.  It 
was  from  the  state  of  business  at  the  time ;  more  loans  were  roquireil  at 
one  time  than  another,  according  to  the  amount  of  bills  on  band.  The 
profits  were  not  so  largo  as  those  of  last  year,  but  if  any^entleman  widiol 
for  information  he  would  recommend  him  to  read  the  Economic,  whicli 
gave  a  detail  of  the  various  large  banks,  and  how  much  their  profits  kiwi 
fallen  off  during  the  last  half-year,  and  he  shoidd  be  sorry  if  an  equal 
falling  off  had  taken  place  in  the  profits  of  this  company.  (Hear,  Lew ) 
They  had  no  debt  of  Cave  Williams's  for  £25,000.  They  had  bills  witl 
Cave  Williams's  name  at  the  back  of  the  paper.  But  they  had  other 
names  to  the  same  paper,  and  they  were  not  under  any  apprebenaionup^Q 
that  point.  (Hoar,  hear.)  Since  Mr.  Henderson,  their  late  chairman,  b<i 
left,  no  chairman  had  been  appointed.  He  (Mr.  Brown),  as  vice-chair- 
man, had  beeu  selected  to  act,  and  if  any  gentleman  of  lugh  conuacfc^ 
standing,  and  one  who  by  his  conucctiou  could  increase  the  business  of  ix 
company  were  brought  forward,  he  would  not  stand  in  his  way. 

A  Shareholder — Can  you  give  us  any  information  about  the  nnpaiJoi^ ' 

The  Chaii-man  said  that  out  of  £400,000,  the  amount  of  the  call,  tltf^ 
was  about  £9,000  impaid.  They  had  not  yet  thought  it  nooessaiy  io^r^ 
the  shareholders  who  were  in  arrear,  but  probably  ttiey  might  shoxtJjr^  *' 
desirable  to  put  "  the  screw  on."  In  the  meantime  the  defaulta^^'* 
paying  interest  at  the  rate  of  10  per  cent.,  and  as  the  directors  hki  }^ 
shares  as  security,  he  did  not  see  that  there  was  any  ground  for  aa^' 
on  that  score.  (Hear,  hear.) 

The  report  and  accoimt  were  unanimously  adopted. 

After  a  vote  of  thauks  to  the  chairman  and  directors^  and  a  sepanv* 
vote  of  thanks  to  the  managing  director,  Mr.  Wilkinson,  the  prooeedicg^ 
terminated. 


HAMPSHIRE  BANKING  COMPANY. 

Thb  thirty-first  Annual  General  Meeting  of  the  shareholdias  of  tbb 
bank  was  held  at  Southampton  on  the  Ist  August,  Mr.  Greotrjpe  Hunt  iu 
the  chair. 

The  following  report  was  read : — ^^  The  Directors  liave  pleuore  in  layiii^ 
before  the  shareholders  their  annual  account  of  the  affairs  of  ihe  Imtkj 
made  up  to  the  30th  of  June,  1865.  The  profit  upon  the  year's  basiMss 
after  paying  the  current  expenses  and  writing  off  bad  debts,  amoimt»  to 
£26,400.  58.  lOd.,  from  which  the  sum  of  £8,522.  10«.  has  ab-eady  bnr3 
taken  and  distributed  for  the  annuities  and  dividend  for  the  six  moDtl:^ 
ending  31st  December  last,  leaving  au  available  balance  of  £17,877. 15«.  l^-** 
which  it  is  proposed  to  deal  with  in  the  following  manner,  via. ; — 


Digiti 


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Sampfihire  Banking  Cmnpanf/,  1099 

£1.000     ♦  to  the  new  buiklinrj  fund.  * 

£>.0OO  to  the  payment  of  half-year's  annuities. 

£6,$86  13i.  4d,    to  the  payment  of  a  dividend  at  the  rate  of  10  per  cent,  per 

annum. 
£3,250  in  payment  of  a  bon'^s  of  7s.  per  share  upon  the  old  and  new 

shares  witliout  distinction. 
£1,761    2s,  6J.    to  be  carried  oyer  to  the  next  account. 


£17,877  15j.  104. 


The  guarantee  fund  liaa  been  increased  by  the  addition  of  £15,466  for 
iromiums  received  on  shares,  and  £1 ,030.  li)s.  3(Z. for  interest, and  amounts 
to  £50,591.  3i'.  7d.y  and  tho  diroctoi-s  reamimcnd  that  it  should  still  be 
K-rmitted  to  accumulate,  at  the  least  by  the  addition  of  its  own  interest. 
The  liabilities  and  assets  shown  in  tho  accoiuits  to  bo  submitted  to  the 
iaveting,  have  undergone  tho  customary  cai-oful  examination  of  a  com- 
i'littee  of  the  directors,  and  the  boartl  submit  them  witli  confidence,  believ- 
iUif  them  to  be  a  bona  fide  and  reliable  representation  of  the"  aftairs  of  tho 
>ajik.      The  lamentable  instances  of  mis-inaiiagement  which  have  been 
developed  during  the  last  few  years,  one  of  which  has  recently  occurred 
in  the  immediate  neighbourhood,  have  made  the  directors  keenly  sensible 
"f  tlioir  re«ponsibilitiefl  and  of  the  hazard  attending  the  submission  of  ac- 
'-'.:misto  which  due  consideration  has  not  been  given,  and  they  have  striven 
t'>ns*.t  the  best  moans  for  securing  accuracy  and  truthfulness,  as  well  as 
*"r  obtaining  for  themselves  thefuliost  information  upon  all  matters  relat- 
ion,'to  the  company.     To  this  end  thoy  determined  uix)n  appointing  two 
vi-ueral  managers  in  the  place  of  one ;  and  upon  inviting  Mr.  Atkins,  their 
uo  manager,  to  take  a  seat  in  the  direction,  to  aid  the  board  by  his  ex- 
H-rienoe.   The  failure  of  the  South  Hants  Bank,  at  Portsea,  presented  a 
MVuurabl©  opportunity  for  opening  a  bank  in  that  town,  and  tho  directors 
.';<tve  already  succeeded  in  attaching  to  it  a  sufliciency  of  business  to  render 
*  remunerative,  independently  of  tho  sup^wrt  which  it  gives  to  the  other 
'  rauches  of  the  company  in  that  particrdar  district.     The  business  of  the 
' '-  nk  having  increased  so  greatly  during  tho  bust  few  years,  tho  tlirectors 
tTt-nd  to  issue  rei)orts  at  the  making  up  of  the  Decendicr  hidf-year;  in 
:dur  that  in  future  the  shareholders  may  be  informed  at  shorter  intervals 
f  the  progress  making  by  the  company." 

LIABILITIES  AKD  ASSETS. 

Dr. 

\ mount  duo  to  proprietors  for  paid-up  capital  ...        •..  150,000    0    0 

uiarantccfund 50,591     3    7 

wuount  due  on  deposits  and  current  accounts  and  on  drafts 

hsumX 1,145,045     3  11 

it«:rest  due  on  deposits  ... .?*?i5  ,5  ^? 

/ru»^  piofit  •••         •.>         •••         •••         •••         ••• 


48,473  19 

1 

£1,403,526  12 

5 

1,124,571  13  11 
23,533  7  4 

Cr. 

)lls  discounted,  advances  on  securities  and  loans    .•• 
rcsliold  banking  premises,  furniture,  and  fittings     ... 

Carried  forward      £1,148,106    1    3 

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1100  Cumberland  Union  Bankinn  Company. 

Brouj?lit  forward ...        ...      .- .    -     ^1 

General  expenditare  of  the  company.  '"^^J^^^ 
aUowance  to  directors,  aadamouot  earned  to  new  Iwldmg        ^^^^^  ^^    ^ 

fund       .,    •••         Vi    iQiti*        slsM  10    ^ 

Annuities  and  dividend*  paid  to  Dec.  31. 1»W         ^^^^5    ^    9 

Government  securities.  raUway  debentnres,  &c       156,156    0    4 

Cash  in  hand  and  at  call  — 

£I.IOS.5a6  Ig    3 

.Ajtfoufrf  qfPrq/Ufor  the  year  ending  30t*  /»««•  1865. 

•Z>r.  X16.289  18  € 

General  expenditure       j  j200    0  '» 

Allowance  to  directors -  637  12  7 

Income-tai          ...        ...        y.'        **  1,000    0  '^ 

Portion  of  expense  of  new  bnilding \946    S  2 

Rebate  of  interest  on  WUs  discounted  ...        .••        •-• 

Shareholders' annuities  paid  for  the  half.year  ending  31st  Dec.,  ^^^^    ^  ^ 

Shareholders' annuities  fbrthehalf.ye«r  ending  80^  Jnne,18W  3.000   w 

Dividend  of  10  per  cent,  per  annum  for  half-year  ending  Dec  3i,  ^         ^^  ^ 

1864       •••  ,     —      ,.—  ^     ""^^  ^ 

Dividend  of  10  pet  cent,  per  annum  for  half-year  ending  Juneau.  ^         ^  ^ 

1865       5.S50   0  * 

Bonos  of  7^.  per  share     1761    S  * 

Balance  carried  to  next  half-year's  account     * 

£48,473J»J 
Gross  profit  brought  down        ^^^^^^ 

GDAnAKTBE  FUND.  r^l  0*4  tt    * 

Amount  as  per  last  account      15*S  ^  ^ 

Amount  received  for  premiums  on  shares       I'osO  W  ^ 

This  yearns  interest        *  — 

£50^>1^J 

The  report  was  mianimoualy  adopted,  and  the  aPI»"^*?^*J^^^ 
Thomaa  Keeping  and  Mr.  Richard  Legg  as  joint  managers,  in  «ie  wu» 
of  Mr.  Atkins,  who  retires,  was  confirmed.  w-,^^1  o* 

Cordial  votes  of  thanks  were  given  to  the  chairman  and  •''*'Vj 
directors,  to  the  managers,  and  other  officers  of  the  cstahlirfimcat,  ^'^ 
the  proceedings  terminated. 


CUMBERLAND  UNION  BANKING  COMPANY,  LIMTTlD. 
The  thirty-sixth  ordinary  general  meeting  of  this  company  held  at  ^ 
Comity  Hotel,  Carlisle,  on  the  3rd  August ;   Mr.  George  Head  Head,  ifi 
the  chair. 

The  following  report  and  balance-sheet  were  imbinitted : — 

*•  The  hooks  and  accounts  have  beoi  audited  by  Messrs.  QuiUer  Ball  A»i 

v>o.,  who  spent  a  fortnight  in  making  a  most  searching  investigation,  »iw 

a  copy  of  the  statement  of  accounts  certified  by  them  is  annexed  herrtiv 

Aue  net  balance  at  the  credit  of  profit  and  loss  account  for  the  year,  after 

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Cumberland  Union  Banking  Company.  1101 

writing  off  all  bad  debts,  amountii  to  £28^46.  0«.  9(2.  An  intermediate 
dividend  of  £4  on  the  old  shares  was  paid  in  February  last  which  absorbed 
£8,000,  and  a  further  sum  of  £4,178.  6«.7(i.  is  required  to  pay  the  interest 
at  5  per  cent,  on  the  new  share  instalments.  After  these  payments  there 
remains  available  the  sum  of  £16,067. 14«.  2d,  out  of  which  the  directors 
have  the  satisfaction  of  recommending  a  divided  of  £5  per  share  (payable 
on  Monday,  the  7th  August),  absorbing  £10,000  (msJ^ing,  with  the  divi- 
dend  in  February,  £9  per  share  on  the  old  shares),  and  they  propose  that 
£6/)00  be  appropriated  to  form  a  contingent  fund  to  meet  existing  doubtful 
debts,  and  the  balance  of  £67. 14«.  2d.  to  be  carried  forward  to  the  current 
ludf  year's  account.  The  directors  are  glad  to  be  able  to  congratulate  the 
fthareholders  upon  the  results  of  the  important  steps  authorised  to  be  taken 
by  the  extraordinary  meeting  in  December  last,*  by  which  the  old  estab- 
lished busroess  of  Messrs.  J.  M.  Head  and  Co.  was  acquired,  the  liability 
of  the  shareholders  defined,  and  the  co-operation  and  assistance  of  gentle- 
men of  wealth  and  standing  in  the  county  thereby  secured  as  shareholders 
and  directors.  The  demand  for  shares  so  greatly  exceeded  the  number  at 
the  disposal  of  the  directors  for  allotment,  that  in  a  majority  of  cases  the 
ipplicationa  had  to  be  curtailed,  and  many  altogether  declined.  The  calls 
hkye  been  (aid  up  with  a  punctuality  almost  unexampled,  and,  as  the 
acoonnts  show,  the  small  amount  unpaid  at  the  date  of  the  last  call  on 
30th  June  has  since  been  received.  It  is  worthy  of  remark  too,  that  this 
large  sum  of  additional  capital  and  premiums  (upwards  of  £220,000)  has 
beoi  received  with  scarcely  any  perceptible  diminution  in  the  amount  of 
deposits  or  credit  balances." 

Oeneral  Balance,  ZOth  June,  1865. 

Dr. 

Capital  paid-up,  £225,000*  lesa  calls  received  after  30th  Jnnc, 

£5,6«)      £219.340    0    0 

Seserre  or  goarantee  fand— amount  on  31st  December,  1864, 
£20,195.  ISs.  2d. ;  amount  transferred  from  premiums  on  new 
shares   in  order    to    bring  this  account    up    to    £60,000; 

£39,804.  Is.  lOd 60.000     0     0 

l^eposits  on  receipt  and  current  account  balances  965,304    3    8 

Bank  buildings  redemption  fund 1,400    0    0 

Hessrs.  J.  M.  Head  and  Co.  amalgamation  account      57,700    0    9 

Notes  in  circulation 32,060    0    0 

Balance  of  net  profit,  £28,246.  0«.  9d. ;  less  dividend  of  £4  per 
share  paid  in  February,  £8,000  20,246    0    9 

£1,366,050     ft     2 


Cr. 

Ciih  on  hand  at  head  office  and  branches          ...        , £49,493  15  0 

^.  at  call  and  on  security  at  short  notice         316,294    9  8 

Baig  discounted,  customers' balances,  &c 901,153    7  8 

Inrestment  of  reserved  fund,  viz.,  £33,333.  Si.  8d.  Consols  at  90, 

£30,000 ;  other  investments,  £30,240.  5s 60,240    5  0 

Bank  pxopotf  at  Carlisle  and  branches 28,215  11  7 

Bill  and  other  stamps  on  hand      652  16  3 

£1,356,050    5  2 

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1102    Birmingham  Totvn  and  BiHriet  Safdnng  Compap^. 

Prqfii  and  Loss  Account  for  the  year  ending  90&  /ttae,  1865. 
Dr. 

Ezpexues  at  head  office  and  branches,  indading  bad  debts...     .••  £10,852  16  8 

Interest  on  deposits  and  credit  balances  and  rebate  on  bills       ...  20,S78   0  9 

Dividend  of  £4  per  old  share  paid  in  Febmaiy       8.000   0  o 

Interest  at  5  per  cent,  on  new  share  instalments     4,173   6  7 

Carried  to  contingent  fund  account          6,000   0  0 

Present  dividend  of  £5,  making  £9  per  old  share  for  the  jear  ...  10,000  0  ft 

Balance  carried  forward 67  U  i 


£59,976  18  2 


Cr. 
GroM  income  at  head  office  and  branches  during  the  year £59,976  18  • 

£59.976  U  i 
The  report  was  unanimously  adopted. 


BIRMINGHAM  TOWN  AND  DISTRICT  BANKING  COMPA>T 

The  twenty-ninth  annual  general  meeting  of  the  proprietors  of  this  to 
was  held  at  the  Queen's  Hotel,  on  the  8th  of  August ;  Edwin  GuTtheTjIf 
in  the  chair. 

The  following  report  was  road : — 

"  The  directors  of  the  Town  and  District  Bank  have  called  theshareboU^' 
together  to  submit  their  twenty-ninth  annual  report,  showing  the  opatf^' 
of  the  bank  for  the  past  year  ending  30th  Jime.     The  directors  ^^ ' 
careful  examination  of  the  accounts,  have  the  satisfaction  to  stia  ^ 
after  writing  off  from  the  gross  profit  a  sufficient  sum  to  coratt^^*' 
debts,  and  paying  income-tax  and  all  charges  comiected  with  the^'J^ 
of  the  business,  there  remains  a  net  profit  of  £24^67.  Os.  Sd.y  beii^^' 
than  20  per  cent,  on  the  paid-up  capital  of  the  company;  totlii^-' 
be  added  the  sum  of  £2,376. 15^.  7d.,  being  the  amount  carried  b^  ^ 
imdivided  profits  of  the  former  year,  and  also  the  sum  of  £8,435,  ariBi- 
from  premiums  on  shares  allotted  to  various  applicants  who  la-omi^fl  • 
exercise  their  influence  in  favour  of  the  bank.     The  above  amounts  ffi«- 
a  gross  total  of  £34,968. 16».  3d.,  and  the  directors  are  of  opinion  to  i* 
wHl  conduce  to  the  interest  of  the  bank  to  carry  a  large  sum  to  - 
guarantee  fund,  and  to  pay  a  dividend  for  the  last  hadf -year  of  9*?.  per  '^b.v: » 
free  of  income-tax,  which,  with  the  dividend,  of  9^.  andbonu3«f  i>\t'- 
share,  paid  in  Marcli  last,  will  make  21s.  per  share  on  the  year's  trjiii^ 
Should  the  dividend,  as  now  recommended,  be  adopted  by  the  i^ 
holders,  the  distribution  of  the  gross  amount  of  £34,968. 16».  3J.  will ' 
as  follows : — 

Half -year's  dividend  at  9*.  per  share,  paid  in  March  last       £8,5S«  " 

Bonns  of  3*.  per  share,  ditto        2,8*2  ^ 

Dividend  proposed  to  be  paid,  on  or  after  1st  September,  of  9f .  per 

share    ... ...    8,6T1  ^^  ' 

Bmldingfnnd         100  0  ' 

Guarantee  fund  from  premiums  on  shares,  £8,435  ;  ditto  from  profits 

of  the  present  year,  £1,565,  -   10.W  J  \ 

Balance  to  next  year's  profit  and  loss  account    ...      —    4,749  ^^ 

XH9W16  • 

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English  JoinUStock  Bank.  1103 

^  The  guarantee  fusd,  which  stood  last  year  at  £66,500,  will,  by  the 
proposed  addition  of  £10,000,  amount  to  £76,500.    It  is  with  feelings  of 
deep  regret  that  your  directors  have  to  announce  the  resignation  of  their 
late  manager,  IVIr.  Bassett  Smith,  who  for  nearly  thirty  years,  with  untir- 
ing energy  and  great  ability,  conducted  the  business  of  the  bank ;  and,  as 
a  mark  of  the  high  estimation   in    which  his  exertions  are  held,  your 
directors  recommend  that  a  pension  of  £G00  per  annum  be  paid  to  him 
duriDg  the  remainder  of  his  life.    His  advanced  age  was  the  only  reason 
vizich  induced  him  to  relinquish  the  post  which  he  so  long  and  ably  filled. 
The  directors  have,  however,  the  satisfaction  to  announce  that  Mr.  Smith 
lias  consented  to  take  a  seat  at  the  board  as  a  supernumerary  director. 
The  directors,  after  a  careful  consideration  of  the  testimonials  submitted 
by  a  large  number  of  candidates  for  the  vacant  managership,  came  to  the 
Tmanimous  opinion  that  those  sent  by  Mr.  Thomas  Barney,  of  the  Stam- 
ford, Spalding,  and  Boston  Bauk,  and  previously  of  the  London  and  West- 
niimter  bank,  were  the  most  satisfactory  ;  therefore  they  proceeded  at  once 
to  confer  the  appointment  on  him.     The  directors  have  much  pleasure  in 

•stating  that,  from  the  experience  they  have  already  had  of  Mr.  Barney's 
q'lalifications,  they  are  convinced  that  he  is  eminently  adapted  for  the 

laanagership  of  the  bank." 
The  following  resolutions  were  carried ; — 
Moved  by  the  Chairman,  and  seconded  by  Mr.  J.  0.  WoodhUl,  "  That 

ihe  report  now  read  be  received  and  approved,  and  that  a  printed  copy  be 

forwarded  to  each  of  the  shareholders." 
Moved  by  the  Chairman,  and  seconded  by  Mr.  Samuel  Evans,  '*  That  a 

"lividend  of  9«.  per  share,  free  from  income-tax,  be  now  declared  for  the 

balf.year,  payable  on  and  after  the  1st  of  September  next. 
Moved  by  Mr.  Henry  El  well,  and  seconded  by  Mr.  Charles  Dudley, 

'  That  the  thanks  of  the  proprietors  be  presented  to  the  directors  for 

Ikir  services  during  the  past  year." 
3fej»8r8.  Thomas  Penn  and  Richard  Parry  having  reported  that  Messrs. 

oiin  Afiton,  C.  R.  Cope,  and  D.  S.  Hasluck  had  been  ro-elected  a.«*  directors, 
It  was  moved  by  the  Chairman,  and  seconded  by  Mr.  R.  H.  Sumner, 

That  the  thanks  of  this  meeting   be  given  to  Messrs.  Thomas  Penn  and 

ichard  Parry  for  their  services  in  examining  the  votes  for  the  election  of 

\rectoTB," 

Moved  by  the  Chairman,  and  seconded  by  Mr.  J.  O.  Bacchus, "  That  the 

^  thanks  of  this  meeting  be  given  to  Mr.  Bassett  Smith,  the  late 

fiaagor,  for  his  services  during  the  past  year,  and  for  the  zeal  and  energy 

'  ha»   displayed  in  conducting  the  affairs  of  the  bank  ever  since  its 

nnation.^* 

Moved  by  the  Chairman,  and  seconded  by  Mr.  Samuel  Rawlins, "  That 

•  be,st  thanks  of  this  meeting  be  given  to  Mr.  F.  C.  Bourne,  the  sub- 
umger,  for  his  attention  to  the  duties  of  his  office." 

Moved  by  Mr.  J.  O.  Bacchus,  and  seconded  by  Mr.  John  Manly,  Jun., 
That  the  best  thanks  of  this  meeting  be  given  to  Edwin  Gwyther,  Esq., 

•  his  services  in  the  chair." 


ENGLISH  JOINT-STOCK  BANK,  UMITBD. 

z  .seoond  ordinary  general  meeting  of  the  shareholders  of  this  bank  was 
i  at  the  London  Tavern  on  the  14th  August  -,  Captain  Mangles  in  the 
lir. 


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1104  English  Joint-Stock  Bank. 

The  following  is  the  report  of  the  directors  for  the  half,  year  ending  on 
the  30th  of  June  last : — 

"  The  directors,  in  presenting  their  report,  refer  with  satisfaction  totli^ 
progress  the  bank  has  made  during  the  past  half-year.  Since  the  last  re- 
port was  issued  the  number  of  places  where  the  business  is  carried  on  li;«- 
been  increased  from  26  to  34,  whilst  in  the  same  period  the  number  ui 
customers  has  increased  33  per  cent.,  and  the  amount  on  current  and  ilep-  -^it 
accounts  nearly  50  per  cent.  Notwithstanding  the  low  rate  of  inter-: 
that  has  prevailed  during  a  great  portion  of  the  time,  the  annexed  &tAtf  • 
ment  shows  the  gross  profit  for  the  half-year  ending  the  30th  June,  l^-^' 
(including  the  premium  on  new  shares  received  up  to  that  date),  to  ^-^ 
£24,965. 10s.  Qd.  After  deducting  interest  paid  to  customers  on  der««>.i 
and  current  accounts,  current  expenses,  rebate  on  bills,  and  pTx>vidin5  f"' 
bad  debts,  the  directors  recommend  the  payment  of  a  dividend  at  the  n**' 
of  £6  per  cent,  per  annum,  free  of  income-tax,  on  the  paid-up  capital,  wlii^^; 
will  absorb  £3,000 ;  that  £352.  Is.  be  written  ofi'  the  preliminary  expense*, 
and  £1,317. 10s.  off  the  purchase  of  the  old  banks  and  exj>enses  of  estab- 
lishing new  branches,  being  in  both  cases  at  the  rate  of  £10  i^er  cent.  ]-" 
annum  ;  and  that  the  sum  of  £5,500  be  carried  to  the  reserve  fund  T):* 
will  leave  £1,064.  12*.  4d.,  together  with  rebate  £835.  ISs,  10</.,  makiii* 
the  sum  of  £1,890.  lis.  2d.  to  be  carried  forward  to  profit  and  1*»«^  a' 
account.     The  dividend  will  be  payable  on  and  after  the  15th  August.'* 

The  Chairman,  in  moving  the  arloption  of  the  reix>rt,  stated  that  '^■- 
bank  was  in  a  most  flourishing  condition.     The  number  of  customer^  v  - 
increasing,  as  also  was   the  number   of  current  and  deposit  aon»TC> 
and  as  ample  provision  had  been  made  for  bad  debts,  he  thought  t^  ^ 
was  every  reason  for  congratulating  the  proprietors  upon  the  pcertt'.-' 
which  they  stood.     On  the  31st  of  December  the  number  of  aocoQs^*  »* 
1,908,  and  on  the  30th  of  Juno  it  was  2,555,  showing  an  increase  ■<  ^• 
The  deposit  and  current  accounts,  which  on  the  31st  December  aB-«B^  * 
to  £279,366,  had  increased  by  the  30th  June  to  £412,089,  sh<jnK  »: 
increase  of  £132,723.     Since  then  207  new  accounts  had  been  open*^'*.^- 
£28,506  paid  in.    As  this  was  not  a  time  to  expect  large  de{<»^:*>' 
thought  the  directors  might  congratidate  the  proprietors  on  harin:  • 
report  so  favourable  a  result.    It  was  stated  in  the  report  that  the  nnu •>  * 
of  places  where  the  business  of  the  company  was  carried  on  hatl  l*^' 
increased  from  20  to  34.    Between  the  31st  December  and  the  meeting  * 
the  company  in  February,  they  had  opened  branches  at  Bristol,  F"  '  • 
Haslemere,  Rochester,  and  Chobham.     Since  February  new  branches  J  ? 
been  opened  at  Derby  and  Notting-hill,  and  they  had  bought  the  Bid-f  »• 
Bank.     One  of  their  purchases  had  been  the  West  Surrey  Bank«  su*'^  ' 
was  glad  to  say  that  since  it  had  come  into  their  possession  the  dep"^'- 
had  been  increased  from  £137,000  to  £170,000,  showing  that  they  hail  i 
purchased  an  old,  rotten,  and  worn  out  concern,  but  a  business  snltii  *: 
tially  good  and  sound  in  itself.    He  begged  to  move  the  adoption  of  ?  • 
report. 

Mr.  Lawrie  seconded  the  motion. 

Mr.  Budden  asked  for  information  with  regard  to  the  amotint  of  t 
muneration  paid  to  the  directors,  and  the  salaries  of  the  general  man>.  • 
and  secretary. 

Mjt.  Kemp,  one  of  the  auditors,  said  the  remuneration  to  the  din^-t.- • 
consisted  simply  of  the  amount  voted  at  the  last  meeting. 

The  Chairman  said  the  salary  of  the  general  manager  had  been  rr '-    : 
to  £1,500  a  year.    That  of  the  secretary  was  £300  a  year. 

Mr.  Budden  was  glad  to  hear  that  the  remuneration  of  the  sjen»-r»' 


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English  ScoUish  and  Australian  Chartered  Sank.     1105 

manager  had  been  increased.  He  thought  the  managers  generally  were 
nnderpaid. 

The  Chairman  remarked  that  in  the  infancy  of  the  company  it  was 
necessary  to  begin  cautiously,  and  to  feel  their  way.  The  moment  they 
felt  justified  in  increasing  the  salaries  of  their  officers  they  would  only  be 
too  happy  to  do  so. 

Mr.  Broad  urged  upon  the  directors  the  necessity  of  having  an  estab- 
lishment of  their  own  in  London,  instead  of  the  agency  of  the  City  Bank. 

Mr.  Sharp  expressed  a  similar  opinion,  and  proceeded  to  criticise  the 
statement  of  accounts.  He  said  they  professed  to  have  a  balance  of  gross 
profits  amounting  to  nearly  £25,000,  but  he  did  not  think  it  fair  to  include 
with  the  profits  an  item  of  £7,258,  representing  premiums  received  on 
new  shares  up  to  the  30th  June.  He  was  afraid  they  were  distributing  a 
portion  of  the  capital  of  those  who  took  new  shares  in  order  to  put  it  in 
the  pockets  of  those  who  had  not  taken  them.    (Cries  of ''  No,  no.") 

The  Chairman  explained  that  the  accounts  were  perfectly  correct.  The 
net  profit  amounted  to  £11,224,  and  of  that  sum  they  had  held  back 
£5,500  as  a  reserve  fund.  The  dividend  they  reconmiended  was  a  fair  and 
honest  one,  or  it  would  not  have  received  the  sanction  of  the  directors. 
The  question  raised  by  Mr.  Broad  as  to  the  propriety  of  having  an  estab- 
lishment of  their  own  in  the  City  of  London  was  one  which  at  the  present 
moment  was  receiving  the  carefid  consideration  of  the  board. 

Mr.  Budden  asked  what  premium  had  been  paid  for  the  Bideford  Bank. 

The  Chairman  declined  to  enter  into  detiuls,  but  said  the  premium 
amounted  to  three  and  a  half  years'  purchase.  He  thought  they  had  ob- 
tained a  very  good  bargain. 

The  motion  was  then  agreed  to. 

The  Chairman  next  moved  that  a  dividend  at  the  rate  of  6  per  cent,  per 
annum  be  declared  and  paid. 

Mr.  Lawrie  seconded  the  motion,  which  was  unanimously  agreed  to. 

The  proceedings  then  terminated  with  a  vote  of  thanks  to  the  board  of 
directors  and  the  managers  of  the  company. 


ENGLISH,  SCOTTISH,  AND  AUSTRALIAN  CHARTERED 

BANK. 

The  twenty-fourth  ordinary  meeting  of  the  proprietors  of  this  ban^  was 
held  at  the  London  Tavern,  on  tlie  31st  July — Gteorge  Hay  Donaldson, 
Esq.,  in  the  chair. 

The  following  report  was  read  : — 

'^  The  accounts  of  the  bank  for  the  half-year  ending  in  the  colonies  on 
the  31st  March,  and  in  London  on  the  30th  Jime,  show  a  balance  of  profit 
of  £22,538. 17^.  7d.f  after  making  provision  for  bad  and  doubtful  debts. 
The  directors  regret  that  the  necessity  has  arisen  for  writing  off  a  further 
sum  to  meet  loss  from  failures  referred  to  in  the  last  report,  the  effect  of 
which  is  to  make  the  result  of  the  operations  for  the  six  months  under 
review  less  favourable  than  had  been  anticipated.  They  are  disposed, 
however,  to  regard  as  exceptional  the  present  reduction  in  the  amoimt 
available  for  distribution,  and  have  confidence  in  the  expectation  that 
the  future  profits  of  the  bank  will  admit  of  an  increased  dividend  being 
maintained.  They,  therefore,  recommend  that  out  of  the  balance  of 
£22,538. 17«.  7d.  a  dividend  be  paid  at  the  rate  of  7  per  cent,  per  annum, 
free  of  income  tax,  on  £600,000,  the  paid-up  capital  of  the  bank,  which 
VOL.  XXV.  84 


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1106    English^  ScMiA  and  Australian  Chartered  Bank. 

will  require  £21^000 ;  that  the  premiseii  and  fnzniiiire  aoooiinti  be  re- 
duced by  £1,000,  and  that  £538.  lis.  7d.  be  brought  fomid  lo  Vie 
coxreiit  half-year." 

Liisxuna. 

Paid-up  capital     ...             ...              ...  ..•  —  £608,000   0  0 

Deposits ...              ...  ...  ...  837,0W  10   7 

BlOBpayabie  and  other  liabilities         .^  ...  ^  136,716  10  10 

€ircnl«Uo<i             ...  ...  ...  97,432    0  0 

Beserved  fbad       ...  ...  ...  50,000    0  0 

▲soiiiit  carried  to  profit  and  loss  aeooiiBt  ...  ...  34^71    6  il 

£1,764^4   8   4 


Bills  receirablc  (inclnding  the  estimated  value  of  those  orer- 

dae),  loans  on  secarity,  cash  at  bankers',  &c.  ...     £1,534,438  ^^  ^ 

9pecie  and  bullion       ...  ...  ...  ...  ...  163.744   6  4 

Bank  premises^and  fiimitQie     ...  ...  ...  :..  56,441    5  4 

£l«754.S34   «  4 


FBOvix  xvD  JJMA  AGCOuarr. 

Corrent  expenses  in  Melbourne,  Sydney,  Adelaide,  and  sub- 
branches  ...  ...  ...  ...  ...  ...  £9,097  15  • 

„    London,  including  directors'  remuneration  and  faieoBie- 
Ua 2,7W  n  i 


Balance 


,  Amount  brought  down 


£11,80 

7  7 

£34^1 

f  U 

£54,971 

6U 

4  11 

Th®  Chainnan,  in  moving  the  adoption  of  the  report^  said  he  was  |^ 

it  fell  to  his  lot  to  state  on  the  present  occasion  that  the  directors  at  leoj^th 

felt  justified  in  recommending  a  7  i)er  cent,  dividend.    The  directors  W 

hitherto  been  very  cautious,  and  he  thought  they  would  now  receive  credit 

for  having  rightly  and  duly  oonaidered  the  matter  before  coming  to  thi» 

deofiion.    At  the  last  meeting  a  sort  of  pledge  was  given  that  wfcen  the 

reserve  fund  had  attained  the  respectable  figure  of  £50,000,  at  wiikh  H 

BOW  stood,  the  directors  would  look  to  increasi]^  the  dividends  raUvr 

^an  to  augmenting  the  reserve.    Hereafter  oocaaioDS  would  mae  wh« 

U)th  objects  would  be  attended  to,  and  while,  aa  he  hoped  they  w««Jd  be 

aWe  to  do^  they  sustained  the  same  rate  d  dividend  they  would  ^m^ 

opportunities  of  further  inoreaaing  the  reserve.    He  wasone  of  thoae  who 

w^e  parfaal  to  a  large  reserve ;  they  were  all  partial  to  good  dividends, 

and  he  ^ted  they  would  be  able  to  carry  ^  both  cAjects.      (Hear, 

^^'L^^  ^^^  tiiat  the  report  and  baknoe-sheet  now  rwrf  be  rwei^ed 

and  approved,  and  that  the  dividend,  as  reoonunended  in  thei ^— 


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Eastern  Exchange  Batik. 


1107 


T7Z.y  at  the  rate  of  7  per  cent,  per  aimmny  free  of  income  tax,  and  payable 
on  and  after  the  7th  August — be  declared. 

The  motion  haying  been  seoondedi 

In  reply  to  a  shareholder. 

The  Chairman  added  that  the  bad  debts  referred  to  in  the  last  report 
vere,  so  far  as  the  directors  knew,  entirely  swept  away. 

A  suggestion  made  by  a  shareholder,  that  the  yalue  of  the  premises  in 
Comhill  should  be  stated  in  the  aooounts,  the  chairman  promised  should 
be  attended  to,  adding  that  the  premises,  which  cost  them  £6,000,  were 
now  worth  at  least  £20,000. 

The  motion  was  unanimously  agreed  to,  and  a  vote  of  thanks  to  the 
chairman  and  directors  concluded  the  proceedings. 


EASTERN   EXCHANGE  BANK. 


A  SFBGIAL  meeting  of  the  Eastern  Exchange  Bank  was  held  on  the  14th 
August,  at  the  bank  promises,  Cook  Street,  Liverpool ;  Mr.  Patrick 
Hunter,  chairman  of  the  board  of  directors,  presided. 

The  following  report  was  read  :— 

"  The  directors  haye  the  pleasure  to  lay  before  the  proprieton  an  audited 
statement  of  accounts  to  the  30th  June,  1865,  showing  a  balance  of  net 
profit  of  £6,600.  11«.  ^d.  which  they  propose  to  carry  forward  to 
next  accotmt.  It  will  be  seen  that  the  gross  profit  for  the  half-year, 
£13,876.  Is.  Od.,  is  at  the  rate  of  14  percent,  per  annum.  In  framing  the 
acconnts,  it  has  been  necessary  on  this  occasion  (owing  to  the  temporary 
absence  of  constituents  from  Egypt,  in  consequence  of  the  epidemic  lately 
raging  there),  to  include  commissions  to  the  extent  of  £4,000,  earned  in 
Alexandria,  based  on  the  manager's  estimate,  who  represents  that  the 
actual  sum  is  oyer  rather  than  under  the  amount  stated.  Although  the  time 
during  which  the  bank  has  been  in  full  operation  in  Alexandria  does  not 
exceed  four  months,  in  consequence  of  the  cessation  of  business  during  the 
crisis  in  the  early  part  of  the  year,  the  directors  are  satisfied  that  its 
foundation,  has  been  successfully  laid.  This  has  been  done  at  moderate 
cost,  and  without  any  pa3rment  for  goodwill.  The  business  transacted  has 
been  free  from  bad  debts,  if  they  except  one  dependency,  now  in  course  of 
liquidation,  on  which  it  is  possible  they  may  sustain  a  loss  of  from  £1,000 
to  £1,500.  There  are,  however,  ciroamstaooeB  which  induce  them  to  hope 
for  a  more  favourable  out-turn." 


General  BalanoC'-sheei  for  the  half -year  en^ng  90th  June,  1865. 

ULABIUTIXS. 

Capital  paid  and  called  up,  £200,000 ;  less  outstanding  calls, 

£1,890      

Deposits  

BUts  payable   .•«      

Bills  re- disoonnted 

Other  liabilities       ,„ 

Profit  and  loss  (balance  of  net  profit  to  date) 


•  •• 

...  £198,110  0  0 

•  •« 

47,931  14  1 

••• 

81,664  10  0 

••• 

...   148,752  3  I 

.«• 

7,788  18  6 

... 

6,600  11  4 

£490,847  16  11 

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1108  Eastern  Exchange  Bank. 


Specie  on  hands  and  in  transit,  and  cash  balances        £32,059    8   G 

Bank  premises,  furniture,  fittings,  and  other  property          ...  S,(M6    8    I 

Local  bills  discounted  and  bills  receiyable 392,213    9   1 

lioans  to  customers  ou  current  accounts ...  55,492    4   7 

Other  assets 2,053  18   9 

Preliminary  expenses,  £6,123;    less  amount  transferred  to 

Alexandria  branch  account,  £142.  12*.  Id. -  5,930711 

£490,847  10  11 


PSOriT  ASJ>  U>8S  ACCOUMT  FOB  THE  aJLLV-TXAB  SNDIXO  JCSB  30,  1S65. 

Dr. 

Amount  paid  to    shareholders,    being  interest    on    capital 

£120,000  at  5  per  cent,  per  annum^  to  3l8t  December,  1864        £3,000   0  i* 
Charges  for  the  past  half-year,  including  salaries,  rent,  taxes, 
stationery,  travelling  and  all   other  expenses  at  head 

oflBce  and  branch        M^  ^'   J 

Deduction  from  bank  fiu-nitnre  at  Alexandria    Ill   *  * 

Kebate  on  bills  not  due     S,36S  H  I 

Balance  carried  down       6,<mK)  H  < 

£17,244  i  ' 


Balance  carried  to  next  account         £6,600  It  J 

Cr. 

Balance  of  undirided  profit  brought  forward  as  per  statement 

of  Slst  December,  1864      £3^-'' 

Gross  profit  for  half-year  ended  30th  June,  1865,  actnally 
realized,  £9,816.  16«. ;  commissions  at  Alexandria  out- 
standing (estimated),  £40,000  ;^^transfer  fees,  £59.  5f.     ... 


Balance  of  net  profit  to  date      

The  Chairman  said — When  we  last  assembled  I  mentioDed  that  odtidik^ 
respected  chairman  was  confined  to  the  house  by  illness.  I  nor  htre  tc 
annoimce  his  death^  which  took  place  a  short  time  affo,  and  I  fieel  satt  t"C 
will  all  deeply  sympathise  with  the  family  in  their  bereayemenl  '^ 
report  which  has  just  been  read,  and  whid^  has  been  in  your  luuu^  f^ 
some  days,  contains  a  full  account  of  all  our  proceedings,  and  of  the  eu^> 
position  of  the  bank.  It  is  not  onr  intention,  on  thia  oocasio)n,  to  reo^o* 
mend  a  diyidend,  as  the  short  time  daring  which  the  bank  has  beta  ^ 
operation  would  scarcely  justify  it,  however  fayonrable  the  result  b-J^ 
shown  is.  Tour  directors  were  desirous  that  the  proprietora  and  ^ 
public  generally  should  know  the  exact  position  of  the  bank  at  an  toA^ 
period  than  our  articles  prescribed,  having  passed  through  such  a  crss  i" 
the  last ;  and  it  is  a  matter  of  sincere  congratulation  that  we  pssseo  »> 
well  through  such  times,  which  cost  so  mnch  anxiety  to  the  mercaotiJe 
community.  It  will  be  in  the  recollection  of  most  of  you  that  I  vi^ 
tioned  at  our  last  meeting  that  we  had  sent  out  our  general  xnsfisgcf 


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Eastern  Exchange  Bank.  1109 

with  an  experienced  geDileman  to  open  a  branch  of  the  bank  in  Egypt. 
His  journey  has  been  of  great  value  to  us,  and  the  branch  has  been  sue- 
ceBsfnlly  established.  The  alarming  epidemic  which  broke  out  very 
shortly  after  the  cotton  crisis  has  curtiuled  our  operations.  I  am  very 
glad  of  the  opportunity  of  speaking  of  the  zeal  and  attention  paid  by  the 
officers  of  the  bank  during  this  very  trying  time,  for  whilst  so  many 
left  Egypt,  they  remained  at  their  post.  We  have  now,  as  the  season 
is  over,  granted  to  our  manager,  Mr.  Baker,  leave  of  absence,  and 
hope  the  sea  voyage  may  benefit  him,  and  he  may  return  with  renewed 
energy.  During  his  absence  our  chief  accountant,  Mr.  Smith,  has  gone  out 
to  render  assistuice,  and  we  have  most  satisfacto^  reports  from  lum  as  to 
the  position  the  bank  holds  there.  We  do  not  intend  at  present  to  extend 
the  bank  to  any  other  place,  as  we  find  a  full  and  profitable  emplo3rm6nt 
for  all  our  capital  in  Egypt.  I  have,  therefore,  much  pleasure  in  laying 
before  you  the  report  and  statement  which  has  been  printed  and  drcuiated 
amongst  you,  and  feel  great  hopes  for  the  future,  for  with  the  large  stock 
of  cotton  and  the  increasing  production  of  Egypt,  we  may  safely  look 
forward  to  a  steady  and  profitable  business  there. 

Mr.  A.  C.  Stewart  said  he  should  like  to  ask  a  question  as  to  how  the 
expenses  of  the  bank  were  incurred  ?  He  only  wished  for  information. 
It  appeared  that  the  expenses  of  carrying  on  the  bank  were  4|  per  cent,  on 
the  capital,  and  although  business  in  Egypt  was  done  during  only  four 
months,  for  the^  other  two  months  money  was  very  dear,  and  he  presumed 
that  the  directo'rs  did  not  allow  it  to  be  idle,  but  put  it  out  at  interest. 
The  shareholders,  as  everybody  knew,  could  get  6  per  cent,  for  their  money 
without  investing  it  in  a  bank.  i 

The  Chairman  said  there  were  many  expenses  which  would  not  come  in 
the  next  half-year's  account,  and  the  bank  would  be  in  full  operation 
during  the  whole  of  the  six  months.  At  present  they  could  hardly  judge 
fairly  as  to  the  profits. 

Mr.  A.  G.  Stewart  wanted  to  know  what  were  the  extras,  and  what  the 
permanent  expenses. 

The  Chairman  said  the  accounts  were  open  for  any  shareholder  to  ex- 
amine. It  was  very  difficult  to  say  what  the  working  expenses  would  be, 
but  as  their  business  increased  so  would  their  other  expenses. 

Mr.  M^Kean,  in  reply  to  one  or  two  questions,  read  a  statement  in  which 
it  appeared  that  the  gross  expenses  at  the  head  office  were  £2,500,  and  at 
the  Alexandria  office  £1,601. 
Mr.  A.  C.  Stewart-— Is  £1,600  paid  for  office  rent  alone  ? 
Mr.  Banner,  the  solicitor — ^Yes. 

Mr.  M'Kean  said  there  was  a  sum  for  income-tax  which  was  paid  on 
the  dividend. 

Mr.  John  Bigham  said  it  appeared  that  the  gross  profits  were  £9,800 ; 
and  the  supposed  profit  of  £4,000  added  to  that  made  £13,800,  whilst  they 
had  to  deduct  from  that  £4^69  for  expenses,  £3,362  for  rebate,  leaving  a 
net  profit,  after  a  deduction  for  a  bad  debt,  of  little  more  than  the  actual 
working  expenses.  That  was  the  result  of  six  months'  good  average 
business.  They  had  given  the  directors  credit  for  having  escaped  losses, 
but,  if  the  resiut  of  a  good  time  was  such  as  he  had  stated,  did  it  enable 
them  to  hope  much  for  the  future  9  Rumours  had  been  abroad  to  the 
effect  that  there  was  a  proposal  for  an  amalgamation  with  the  National, 
and  he  thought  it  would  be  well  for  the  chairman  to  take  that  opportunity 
of  telling  the  shareholders  simply  and  candidly  what  was  the  position  of 
that  question.  (Hear,  hear.)  For  himself,  he  thought  it  would  be  wise 
to  consider  such  a  proposal,  for  their  capital  (£200,000)  was  small,  and 


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1110  Eaaiern  Exehange  Bank. 

th«ir  expenflety  as  oompaored  inth  the  eapiial,  k^^  (Hetr^Basr.)  Migbt 
ha  atky  if  the  direotars  intended  to  make  a  call  or  two  ealls  upon  the  thare- 
holdersy  would  th^  oall  the  latter  together  lor  the  porpoM  <tf  takiiif 
their  opinion  on  the  anhjeet?  He  hoped  hia  romarka  wobld  be  xeec&Ted 
aa  they  were  madey  namely,  with  the  very  beat  of  feeling.    (Hear,  hear.) 

The  Chaiiman  aaid  neither  hia  brother  direeton  nor  himaelf  had  tii» 
alighteet  wiah  to  keep  back  anytidng  from  the  ahareholders,  bat  giie 
fuOy  and  candidly  all  such  information  aa  they  oonld  with  prcprieiy. 
(Heur,  hear.)  He  mi^ht  state  that  they  had  had  no  propoaal  &om  tiv 
National  board,  but  tiiat  anggeetionB  had  bean  made  and  several  hiate 
thrown  oat  to  them  with  respect  to  omalgsmatieQ.  (Hear,  hear.)  There 
waa  a  propoaition  to  amalgamate  three  banks  together,  and  tfaoa  wofoU 
haye  been  formed  a  strong  and  an  eoLoeUent  inatitotieBi,  aaooad  to  noas 
oat  of  London.  (Hear,  hear.)  One  of  tiie  parties  had,  howefer,witbdrswB, 
lor  what  reaaon  was  best  known  to  themselTes ;  bat  if  any  aoggeafciaa  at 
all  Boitable  should  be  made  it  woold  be  sabmitted  to  the  shareholders  for 
their  approval.  He  believed  that  the  basiness  of  the  bank  was  pro* 
gressing  most  satisfactorily,  and  that  the  next  seaaon  in  Egypt  wcMdd  be 
a  sooeessfol  one.  He  defied  any  bank  d  so  short  a  standing  aa  ^ein  ti 
prodnoe  each  namee  among  its  oastomera  aa  were  to  be  loand  in  thor 
ledger,  and  altogeti^ter  their  prospects  were  most  eneooraging.  (Hear* 
hear.)  Aa  regards  the  qnestion  aboot  m^ing  a  call  upon  the  aharelicUdac, 
he  thoaght  the  latter  woold  give  the  directors  credit  for  not  making  a  oil 
onleas  it  was  for  Ihe  parpose  of  increasing  i^eir  boaineaB.  It  woold  w*^ 
according  to  the  articles  of  association  to  call  the  ahareholderB  togefcher  ii 
order  te  obtain  their  permission  to  make  a  call.    (Hear,  hear.) 

Mr.  Thomas  Chilton,  one  of  the  diraotors,  ssid  tiie  board  looked  far  s 
▼ery  considerable  business  from  Alexandria  next  seasosi.     file  tinw^ 
that  the  post  half-year  waa  by  no  meana  a  fair  criterion  of  what  m^  ^ 
expected  in  future  years.    He  was  of  opinion  that  in  an  fixnhaiig*  i"^ 
£200,000  was  not  a  sufficient  capital,  and  he  liioold  oertainly  afaafc* 
further  call  being  made.    As  to  amalgamating  with  other  banks,  bs«i^>A 
his  brother  directors  to  put  that  question  outof  their  minds,  far  he  beticnd 
it  would  only  prove  a  source  of  weakness.    The  Kotional  Ba:^  of  U^* 
pool  would  not  amalgamate  except  on  terms  beneficial  to  itarif,  sad  i 
beneficial  to  itself,  the  shareholders  of  tiie  Sastem  Bank  woald  hsve  v> 
pay  accordingly.    (Hear,  hear.)    He  asked  the  proprietoxa  to  cast  to  the 
wind  all  idea  of  amalgamation,  and  do  what  they  ooold  to  farther  thft 
interests  of  the  bank,  tiie  prospects  of  which  were  extresnely  enoonrapsc 
(Hear,  hear.) 

Mr.  Atkinson  asked  if  that  was  not  an  ordinary  half*yeaily  meetzsg, 
as  be  wished  to  make  a  few  remarks  ? 

Mr.  Banner— No,  it  is  not  It  is  called  for  the  txpnn  porpoas  <^ 
receiving  these  accounts. 

Mr.  Atkinson  said  he  thought  they  were  aU  indebted  fo  Mr.  Bisffasn 
for  having  elicited  the  information  he  had,  and  he  betoved  thej  had  evoy 
reason  to  place  implicit  confidence  in  the  directors. 

Mr.  Bigham  moved  a  vote  of  thanks  to  the  chairman  for  th»  admirable 
manner  in  which  he  had  discharged  his  duties. 

Mr.  A.  0.  Stewart  seconded  the  mottcn,  which  was  earned  aBanimcHdr. 

The  Chairman  having  responded,  the  meeting  sepsnted. 


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1111 

MSTRCAJ^TILB  AND  EXCHANGE  BANK,  LIMITED. 

AspBCiAL  general  meeting  of  the  shareholders  in  this  bank  was  held  at  the 
Law  Association  Booms,  Cook  Street,  on  the  21st  August ;  Mr.  T.  B. 
Forwood,  the  chairman  of  the  board  of  directors,  presiding.  There  was  a 
numerous  attendance. 

The  flueetiiig  was  called  for  the  purpose  of  considering  and,  if  approved, 
adopting  a  xesolntion  for  altering  so  much  of  the  agreement  between  this 
hank  and  the  London  Bank  of  Scotland,  Limited,  as  relates  to  the  allot- 
ment of  22,000  shares  of  this  bank  to  the  shareholders  and  directors  of  the 
London  Bank  of  Scotland,  by  limiting  the  allotment  to  10,000  shares 
instead  of  22,000. 

The  Chairman  said  as  the  time  of  the  meeting  was  valuable  he  would 
just  indicate  the  course  that  the  directors  proposed  should  be  adopted.  The 
meeting  was  called  for  the  purpose  of  mainly — ^in  fact  he  might  say  solely — 
entering  into  an  arrangement  with  the  London  Bank  of  Scotland ;  and  he 
begged  to  call  upon  the  solicitor  to  road  the  resolutions  which  the  directors 
submitted  for  their  approval,  and,  subsequently,  he  (the  Chairman)  would, 
with  the  permission  of  the  directors,  make  a  statement  with  respect  to  the 
business  of  the  bank  for  the  past  half-year. 

Mr.  Haigh,  the  solicitor,  then  read  the  resolutions. 

The  Chairman,  in  moving  the  adoption  of  the  resolutions,  said  he  thought 
a  very  few  words  would  siiffice  to  induce  the  shareholders  to  pass  them  unani- 
mously. They  were  ah-eady  aware  that  at  the  two  meetings  held  on  the  5th 
and  22nd  of  July,  last  year,  they  passed  resolutions  for  making  certain 
arrasgements  with  the  London  Bank  of  Scotland,  from  which  they  hoped 
adfantages  would  be  derived  in  the  way  of  bonuses  and  premiums  to  their 
bank.  However,  difficulties  arose  in  the  way  of  allotting  the  whole  22,000 
sharef ,  and  after  numerous  interviews  and  negotiations  with  the  directors  of 
the  London  Bank  of  Scotland,  and  after  encountering  considerable  difficulties, 
which  the  directors  did  not  now  think  it  necessary  to  go  into,  the  directors 
hit  upon  the  plan  proposed,  by  which  they  were  of  opinion  all  the  difficulties 
would  be  met,  and  the  Mercantile  and  Exchange  Bsmk  would,  so  far  as  the 
London  Bank  of  Scotland  was  concerned,  be  placed  in  a  position  so  as  to  work 
beneficially  for  all  concerned.  (Hear,  hear.^  The  result  of  that  arrangement 
was  that  the  London  Bank  of  Scotland  would  take  10,000  shares,  the 
Mercantile  and  Exchange  being  placed  either  in  receipt  of  cash  for  the  shares, 
or  such  an  amount  of  security  as  should  appear  to  the  directors  thoroughly 
satisfactory.  (Hear,  hear.)  He  need  not  tell  them  that  a  considerable  amount 
of  difficulty  was  experienced  in  bringing  about  the  arrangement  as  to  the 
10,000  shares ;  and  the  directors  hoped  that  the  shareholders  would  approve 
of  that  arrangement,  and  thus  an  immense  amount  of  litigation  be  avoided. 
(Hear,  hear.)  Some  of  those  present  might  want  to  know  to  what  extent 
the  directors  were  in  possession  of  funds  received  from  the  London  Bank 
of  Scotland.  An  amount  of  £85,000  had  been  received  in  cash,  and  what 
they  considered  a  full  and  satisfactory  security  for  the  balance  of  £15,000. 
With  these  few  observations  he  begg^  to  move  the  resolutions  read  by  the 
Bolidtor,  and  he  'called  upon  the  chairman  of  the  London  board  (Mr. 
WaUcerV  to  second  the  motion.     (Applause.) 

Mr.  Walker  seconded  the  motion. 

In  refdy  to  a  question, 

The  Chairman  said  the  arrangement  now  proposed  was  in  lieu  of  that 
havine  reference  to  the  22,000  shares ;  and  the  10,000  shares  were  covered 
by  cash  or  Batisfactory  security.  He  fully  expected  that  the  arrangement 
'vould  be  a  final  one,  and  that  the  new  shareholders  would  be  anxious  to 


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1112  Mercantile  and  Exchange  Bank. 

work  cordially  with  the  present  sbareholdeniy  with  the  view  of  foithering 
the  interests  of  the  bank.     (Hear,  hear,  and  cheers.) 

In  reply  to  Mr.  Kendall, 

Mr.  Haigh  said  the  shares  wonld  not  be  got  without  either  money  or 
security. 

The  motion  was  then  put  and  carried  unanimously. 

The  Chairman  said  this  was  the  whole  of  the  formal  businfln  ol  the 
day,  but  the  directors  feeling  that  there  was  consider^le  anxiety  enter- 
tained— and  very  naturally  so~by  many  of  the  shareholders,  the  directon 
and  their  friends,  as  to  the  position  of  the  bank,  in  consequence  of 
TariouB  rumours — ^the  iiiajority  of  which,  in  fact  nine-tenths  ol  which, 
were  unfounded — ^the  directors  thought  that  if  it  should  be  the  wish 
of  the  shareholders  they  would  make  some  informal,  unofficial  statement, 
as  to  the  position  of  the  bank.  The  shareholders  were  perfectly  aware 
that  on  the  22nd  of  April  they  themselves  passed  a  resolution  by  which 
they  altered  clause  191  of  their  deed ;  and  the  deed  having  been  altered 
they  sanctioned  the  board  in  holding  only  one  meeting  during  the  year  tur 
the  purpose  of  presenting  a  report  and  statement  of  acoovmts.  The 
judiciousness  of  the  proceeding  had  been  confirmed  by  the  ezperienoe  of 
the  board,  for  they  were  quite  satisfied  that  the  bank  required  rest  and 
repose,  and  should  not  be  dragged  into  a  statement  too  frequently  ;  and 
they  quite  coincided  in  the  wisdom  of  the  resolution  then  passed.  At 
this  particular  period,  however,  the  directors  of  the  bank  desired  to  avail 
themselves  of  the  opportunity  of  giving  as  much  information  as  was  oca* 
sistent  with  the  interests  of  the  bank.  The  shardiolders,  he  was  quite 
sure,  were  not  present  to  carp  or  find  fault,  but  to  consider  what  was  the 
true  position  of  the  bank  (hear,  hear),  and  the  directors  were  prepare«i 
to  give,  so  far  as  they  could,  a  full  statement  of  the  past  business,  and  to 
ascertsun  whether  there  was  not  that  in  the  future  which  would  give  them 
confidence  in  their  property.  He  (the  Chairman)  would  ask  l^e  sfaaie^ 
holders  to  do  what  in  them  lay  to  assist  the  directors  in  retrieving  the 
losses  and  placing  the  bank  in  the  position  which  they  desired  it  to  hold. 
He  would  now  read  the  following  informal  report : — 

*'  By  the  resolution  passed  at  the  extraordinary  meeting  held  on  the 
22nd  of  July,  1864,  it  was  determined  that  only  one  meeting  of  abare- 
holders  should  be  held  after  the  dose  of  the  year,  to  pass  the  aooounts, 
but,  to  meet  the  desire  of  many  shareholders,  the  directors  have  decided  to 
avail  themselves  of  this  extraordinary  meeting  to  communicate  some  {lar- 
ticulars  of  the  working  of  the  bank  for  the  past  half-year.  They  regret 
that  the  commercial  disasters  of  the  half-year,  the  fall  in  the  value  <4. 
produce  and  other  securities,  have  rendered  the  liquidation  of  many  of  the 
accounts  which  were  in  contingency,  and  found  to  be  dubious  at  the  date 
of  the  last  report,  much  more  difficult,  and  attended  with  greater  loss  to 
the  bank  than  they  had  any  reason  to  anticipate.  To  the  fact  of  the  large 
amount  written  off  to  meet  this  state  of  things,  and  not  to  lofsea  on  any 
new  business,  the  board  ascribes  the  position  of  the  present  balance-sheet. 
The  gross  profits  of  the  bank  for  the  half-year  ending  the  30th  June  have 
been  £26,364 ;  for  the  corresponding  half-year  of  1864  they  were£33,018  aSKJ 
after  deducting  from  the  current  half •y^ff's  profits,  rent,  aalari«,  and  all 
charges,  £11,291,  and  rebate  on  bills  not  due,  £2,570,  there  remains  as  net 
profit  £12,503,  which,  considering  the  low  rate  of  interest,  afbrdsenooarag- 
ing  evidence  of  the  activity*  and  validity  of  its  business.  Since  the  last 
meeting  the  directors,  after  mature  consideration,  have  closed  the  Glasgow 
office,  and  have  arranged  for  the  conduct  of  their  busiBess  with  the  Clydes- 
dale Banking  Company  on  terms  mutually  advantageous,    Besolting  from 


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Mercantile  and  Exchange  Sank,  1113 

this  arrangement  (besides  lessening  the  responsibilities  of  the  bank)  there 
will  be  a  large  economy  of  capital  and  a  considerable  saving  of  expense  not 
apparent  in  the  present  account,  as  the  closing  of  the  bank  is  too  recent ; 
aod  the  bank  is  enabled  to  transact  the  business  of  its  constituents  in 
Scotland  on  satisfactory  terms.  The  foreign  exchange  business  continues 
to  afford  considerable  facilities  to  the  customers  of  the  bank,  especially  in 
Liyerpool,  and  pelds  a  profit  on  its  working.  The  bank's  operations  in 
America  are  conducted  with  caution  and  advantage  to  the  bank  ;  nor  baa 
the  sudden  collapse  in  America  after  the  war  affed^ed  the  bank,  except  as 
regards  the  rapid  depreciation  upon  the  balance  of  gold  held  in  New  York ; 
and  this,  which  is  estimated  at  £4,186,  is  allowed  for  in  the  figures  now 
gnren.  A  change  having  become  necessary  in  the  management  of  the 
Liverpool  office,  the  directors  have  under  consideration  the  arrangements 
necessary  to  fill  up  the  office  vacated  by  the  manager.  The  difficulties 
▼ith  which  the  bank  has  had  to  contend,  especially  from  sinister  rumours, 
have  been  great ;  and  yet  its  business  both  in  London  and  Liverpool  con- 
tinnes  to  progress,  and  the  number  of  accounts,  as  compared  with  those 
open  in  the  half-year  ending  30th  June,  1864,  being  the  largest  since  its 
existence,  show  a  satisfactory  increase.  The  directors,  looking  at  the  valu- 
able business  which  has  already  been  accumulated  in  the  face  of  so  many 
obstacles,  and,  convinced  more  than  ever  that  increased  banking  facilities 
in  Liverpool  are  needed  to  keep  pace  with  its  trade,  feel  justified  in  stating 
to  the  large  and  influential  body  of  proprietors  of  the  bank  that,  by  their 
united  efforts  in  its  favour,  they  have  it  in  their  power  to  render  the  bank 
3>T08perous  and  successful. 
"SOth  June,  1865." 

LIABILITIES. 

Capital  account         £497,782  10  0 

Carrent  deposit,  acceptances,  and  other  accounts         1,527,376  19  9 

Rebate  at  3  per  cent 2,570    3  11 

Depression  on  New  York  gold •      4,186    0  0 


I.. 


£2,031,915  13     8 


ASSETS* 

Ca^h       £84,438  11  11 

Bills  of  exchange,  loans,  &c 1,803,669    6    8 

Bank  premises          44,956  14    9 

liaiance  of  profit'and  loss  to  June  30, 1865          •  98,851    0    4 

£2,031,915  13    8 


The  figures  (the  Chairman  continued  to  remark)  were  appended  in  order 
that  the  position  of  the  bank  might  be  made  known.  He  might  be  per- 
mitted to  extend  this  statement  a  little,  perhaps,  in  order  that  the  share- 
holders might  be  placed  in  possession  of  as  much  information  as  possible, 
and  he  wovdd  make  a  few  observations  on  each  item  of  the  report.  After 
reading  over  the  items  of  gross  profit,  working  expenses,  <fec.,  given  above, 
rhe  Chairman  said  it  womd,  perhaps,  be  asked  what  the  directors  had  to 
say  in  reference  to  the  large  amount  of  charges  ?  Now  he  (the  Chairman) 
found  that  the  expenses — ^the  exaggerated  expenses — ^were  less  than  they 
were  last  year.  They  had  expei^ed  a  large  amount  in  legal  expenses,  in 
tact   this  was  one  of  the  largest  items  ;  but  they  had  had  a  great  deal  of 


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1114  Meft/uUik  amd  ExchMge  Bak. 


L  witk  ike  IiOBi&Hi  Bank  of  Sootimd ;  aad  then  tiMKe  «M  a  Urge 
ainoimt  for  x&A  aiid  tmx>ei.     He  need  aoi  tell  tbe  propnebon  tkat  tb^ 
directore  had  for  Boaae  tame  paat  jdioed  at  >  rednrtann  el  the  <ayeMet.  The 
expenses  h»d  been  eonaideralil^  ledneed  in  Livopool,  and  in  London  tiiey 
had  a  Teiy  eooiMDiical  staff;  hot  their  diiaf  itflm  el  rednfltki  in  prospect 
yasinooanectioii  vithGlaagmryldritww  antie^ated  tha*  by  the  ckung 
of  the  Glasgow  branch  there  wonld  be  a  saving  e€  £8^500,  and  lor  vbich 
offieeaniteoDiof  £1,000  vasaetdowninthepcesentfigniea.    Tfaiswssall 
he  had  to  aayaa  to  the  profit  and  lees  aooonni.    He  wooldaajafev  words 
in  reference  to  the  cloang  of  the  Glasgow  cfioe.     ^hen  the  MercaatiW 
and  Exchange  Bai^  was  started,  nssijr  jiiii— m  thon^t  it  started  vitli 
ooncideTahle  originality  of  idea,  it  beuig  saaaevhat  like  a  trisngnlar  doel 
between  LiTerpool,  London,  and  Glasgow,  the  directors  betieviag  tint 
they  had  some  chanoe  of  getting  profits.   Theflspectationsof  thetyrectar 
were   realised,    and    in    Glsngow  their  nianager  siMcsfwkd  in  nfidi} 
gnining  a  position  for  the  bank  whidi  bo  fingiiah   bank   had  gsiae^i 
before  they  started ;    bat  their  manner  had  had  a  more  adTaatiguc> 
oOiBr  from  his  old  friends,  and  it  had,  therefore,  been  decided  to  do» 
the  Glasgow  branch,  and  accept  the  dydeadala  Banking  Goaqnay  a^ 
their  agents.     If  their  eoatonaers  wonld  try,  they  wonld  find  that  the  bni 
eonld  offer  quite  as  adrantageons  terms  under  the  new  arranMiMDt  x^ 
preyionsly.     With  regard  to  the  ^wnijwvn^]  dis»tecs  which  had  ha{)pn»c 
dnring  the  past  year,  they,  as  oommercial  men,  were  all  ^imiliar  witii  vbi- 
had  taken  place,  and  erery  one  of  the  pit^iriet<xs  wonld  have  conttden^* 
^rmpathy  with  the  directors  under  the  misfortones  which  had  oceazn^ 
p^^®  Mercantile  and  Exchange  was  not  a  new  bank  jnst  starting,  bat  »*• 
?f  ri^  1*°^  steady  progress  when  the  disasters  came.     He  (Mr.  F«VK-i 
nad  taken  pains  to  ascertain  whether  there  was  any  justice  in  the  fits?  - 
ment  of  the  board  that  the  disasters  of  the  past  half-year  had  bea**' 
^"2V?\^**^'  ^®  ^<*^^  *^»*  **»o  paWic  failures  had  inTolved  aa  J»«=! 
?   1  uir     *^^^'  and  if  the  failures  that  had  been  positiTely  stf^s*- 
nad  been  to  this  extent  they  might  add  60  per  cent.,  or  say  S3fB  ««- 
more  to  the  amount  in  account  of  compromises  and  prirate  arru^enfi^'-^ 
during  the  past  half-year.     The  Mercantile  and  Exchange  Bank  «»* 
OTily  a  Liverpool  bank,  but  had  relations  with  London,  Glasgow,  anil  >%:^ 
w^-  i!  *™»  **i^refore,  its  interests  were  more  wide-spread ;  but  the  fiiltir^ 
iT^^'lJ^^^^  *^^^  ^^  chiefly  occurred  in  Lirerpool  and  London.   I- 
^  b^n  sUted  that  they  had  been  very  heavy  losers  through  aa  E*'* 
iS^^^K-^'i*""*  *^*  ^^  ^^  1<«*  £^,000.     The  directors  were  rst^r 
If^Uw^+T  X   .*^®y  ^®*^  ^^  rumour,  and  instituted  inquiries,  ana  i- 
r^^  Iv  xiT .      **  ^**  ascertained  that  a  bank  with  a  somewhat  sbs^ 
^Ly^J^''^^^^^^^''^     (Laughter.)     Turning  to  cotton.     1>d 
6th  ^A^^V^^f^,*^^  P"^  °*  American  cotton  was  2»\d^  and  on  tn. 
an^  %t^  ^^  ^  1^  BhoUerah  in  January  19|d.,  and  iiif  April  lOri.; 
Sl&^JLS  •^•^'"•^  25|d.,  and  in  A^  12jd.     Any  gmOkB^ 
mi^«^^*?]?«  J"^^  *>^  ^^  Lirer^    eJtbon  business  wool.- 
Srt^^  ^^'^.^^^^^^ ''•d  not  taken  toti«^^ 

the^L^'l**'l^«***^^^<^P«*«^  6^to«<« 

a«.-w!!^'*^^  ****  J^eld  a  Lttge««mber  of  special  secnrSTanSiB 


Sf«r^15J.V^£T**  *•»«* *•  diwwtaf.  had itobgdvcmfT to mU than- 
y«w.    (Hew,  hear.)    With  wg«rttoa^fet^e«h«Jigebamw,t 


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Mercantile  ami  Exchange  Bank.  1115 

believed  he  was  correct  in  fitating  thafc  the  directors  had  never  come  before 
the  proprietors  yet  without  this  branch  of  their  business  having  beeu 
oontinuoiisly  prosperous.    The  business  in  Liverpool  and  London  for  the 
past  half-year  had  been  profitable,  and  they  had  abundant  testimony  of  the 
great  facility  and  oonvenieace  that  was  experienced  in  selling  good  bills  to 
the  bank,  the  prices  realised  being  equal  to  those  obtained  oa  the  London 
market.    Arrangements  had  been  entered  into  with  the  principal  bankers 
on  the  continent,  and  no  bank  was  better  off  so  far  as  agencies  of  this 
nature  were  concerned.    With  regard  to  New  York,  the  proprietors  knew 
the  fearful  state  of  things  which  had  existed  there ;  but  the  business  had 
been  profitable,  except  in  gold.    It  was  necessary  for  their  agent  to  keep 
cash  in  hand  for  current  business,  and,  in  a  remarkably  short  time,  owing 
to  the  closing  of  the  war,  a  very  serious  depreciation  in  the  value  of  gold 
took  place,  and  resulted  in  a  loss  of  £4,000  to  the  bank.    The  Southern 
business  was  opening  up,  and  if  any  field  presented  itself  for  the  operations 
of  a  bank,  no  bank  Rtood  a  better  chance  than  their  own.    The  next  para- 
graph in  the  report  had  reference  to  the  retirement  of  the  manager,  and 
tbou^  he  need  not  trouble  the  proprietors  with  that,  he  might  say  that 
it  was  with  great  regret  that  tbe  board  were  compelled  to  part  with 
their  servants.     It  was  necessary  that   Mr.  Brown  should  retire,  and 
ke  had  done   so.      The    concluding    paragraph    in  the  report  was  one 
which  affected  the  future.    It  alluded  to  sinister  rumours,  and  they'  all 
knew  what  those  rumours  were.    It  had  been  stated  that  the  bank  had 
lost  £45,000  on  cotton  bills.    One  gentleman  had  told  him  (the  chairman) 
that  he  understood  that  the  bank  was  interested  to  a  very  large  extent 
in  Bolton  and  Stockport,  and  had  lost  very  heavily  there ;  but  when  the 
matter  was  investigated,  it  turned  out  that  the  bank  had  not  lost  a  shilling 
in  this  direction,  and  so  the  rumours  were  put  aside.     Humours  of  all 
kb»\»  bad  been  circulated  as  to  the  bank,  it  being  stated  that  the  directors 
were  seeking  amalgamation  with  other  institutions,  and  that  they  were 
ready  to  do  this  and  to  do  that.    Perhaps,  when  the  proprietors  looked  at 
the  balance-sheet,  they  would  consider  the  losses  very  large  :  but  it  must 
be  borne  in  mind  that  since  1863  they  had  divided  £70,000  in  bonuses  and 
profits,  and  after  all,  the  result  was  not  so  very  unsatisfactory.     He 
(Mr.  Forwood)    had  invested  a  considerable  sum  in  railways  and  had 
been  accustomed  to  wait  ten  years  for  a  dividend.     Railways  had  to  be 
reconstructed  and  repaired,  and  so  in  like  manner  alterations  had  to  be 
made  in  the  bank.     They  at  first  got  into  a  good  dividend  paying  position, 
and  perhaps  they  paid  the  proprietors  a  dividend  too  quidkly.    In  con. 
elusion,  Mr.  Forwood  said  that  the  directors  hoped  that  the  shareholders 
would  support  them,  because  if  they  did  they  were  almost  certain  to  do  a 
profitable  business.    They  were  not  now  a  body  of  some  four  or  five  hun^ 
dred  shareholders  as  they  were  last  year,  but  their  constituency  had 
swelled  to  700  shareholders,  and  that  was  a  guarantee  that  if  they  would 
all  put  their  shoulders  to  the  wheel  a  great  deal  could  be  done.    He  hoped 
that  on  the  Slat  of  December  the  directors  would  be  able  to  show  a  better 
state  of  things  than  was  represented  in  the  present  report,  but  in  order 
that  the  proprietors  might  not  be  disappointed,  the  directors  had  looked 
over  idl  &e  accounts,  and  were  anxious  that  the  true  position  of  the  bank 
■hould  be  made  known.      He  thought  the  extreme  estimate  that    the 
directors  could  give  was  £3  per  share  for  aU  contingencies  on  the  accounts 
which  had  not  been  finally  closed.    With  r^ard  to  the  increase  in  the 
number  of  customers  of  the  bank,  some  of  their  friends  had  been  very 
dubious,  and  had  stated  that  they  were  not  only  losing  their  business,  but 
that  their  cuatom«rs  were  deserting  the  bank.    Now,  the  directors  had 


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1116  Mercantile  and  Exchange  Bank. 

looked  into  this  matter  very  carefolly,  and  tbey  foond  that  in  lATerpool 
alone  there  had  been  an  increase  in  the  number  of  customen  during  the 
past  year  of  ninety-three,  and  in  London  of  twenty-one,  and  th«  deposiu 
were  within  £20,000  or  £30,000  of  what  they  were  last  year.  So  far  as  the 
directors  were  concerned  they  had  no  personal  motives  to  serve  in  bebg  on 
the  direction,  and  if  the  proprietors  considered  that  the  interests  of  the  Insk 
would  be  served  by  any  one  of  their  number  retiring,  then  they  had  <«0y 
to  express  a  wish  to  that  effect. 

A  Shareholder  said  he  woidd  like  to  make  one  or  two  remarks  after  the 
statement  made  by  the  chairman.  There  would  be  no  donbt  that  if  they 
could  get  rid  of  the  past  the  future  would  be  bright  enongh.  The  state- 
ment  of  the  chairman  was  not,  however,  satisfactory  with  the  past,  for  thi: 
gentleman  had  not  stated  the  real  position  of  the  bank  with  regard  to  the 
money.  (Applause).  He  (the  shareholder)  presumed  that  the  reports 
which  had  been  going  about  as  to  the  loss  sustained  in  oonseqnence  of 
the  London  and  Liverpool  managers  was  not  correct.  He  presumed  he 
might  take  that  for  granted. 

The  Chairman  was  sure  the  hon.  shareholder  would  allow  him  torenuoii 
him  that  he  had  alluded  to  the  Liverpool  manager,  and  that  he  had  stat^ 
that  the  £3  share  would  cover  every  contingency.     (Hear,  hear.) 

^r.  Kendall  thought  there  could  be  no  reason  whatever  why  to 
directors  should  not  state  what  they  expected  the  losses  to  be  owing  to  tb? 
transactions  of  the  late  London  manager.     (Hear,  hear.) 

Mr.  Walker  said  if,  as  the  chairman  of  the  London  board,  he  werea^^ 
had  the  London  manager  taken  so  much  money  out  of  the  tiU  andp^ti^ 
into  his  own  pocket,  he  should  state  that  there  was  no  loss  on  that  svr?; 
but  if  he  were  asked  were  the  losses  which  the  London  board  hid  ^ 
tained  in  consequence  of  the  London  manager's  transactions,  he^-a^ 
say  every  farthing.    Take  one  single  account,  and  of  course  they  t.«^ 
excuse  him  raentionin;i^  names.     (Hear,  hear.)     That  was  an  KO^ 
opened  by  a  party  in  London  of  which  the  manager  approTed.    Thetii^* 
tors  doubted  the  propriety  of  opening  the  account,  and  they  spoke  «^ 
manager  over  and  over  again  about  it.    However,  it  incrMsed  to  1^ 
and  i^,000,  when  the  directors  came  to  the  positive  conclusion  tb^ 
should  be  closed,  and,  by  a  process  of  cooking  the  accounts,  it  ^pesed 
weekly  as  though  it  had  been  closed.    However,  in  the  summer  aeasooit 
swelled  up  at  the  Stock  Exchange  to  the  enormous  amount  which  had  beo 
lost,  and  that  without  the  directors  having  the  power  of  seeing  a  sai^ 
item — (expressions  of  surprise) — and  he  must  say  that  if  thebukha^* 
series  of  dishonest  managers,  he  did  not  see  how  the  directors  could  practi- 
cally control  them.    If  fraudulent  means  were  adopted  by  managers,  he  did 
not  see  how  they  could  really  be  prevented  by  the  directors,  and  to  shov 
what  losses  other  banks  had  sustained  through  their  managers  he  mi^t 
mention  the  Pullenger  frauds,  which  amounted   to,  he  was  reminded, 
£250,000.    In  spite  of  directors,  and  of  the  strictest  inrestigation,  sodi 
losses  as  they  had  sustained  might  come  some  time  or  other.    Their 
auditor  examined  the    accounts    of   the    bank   on  the  30th  June,  aB<i 
immediately  afterwards   the    London  manager  made   those  large  ad- 
vances, which  he  said  were  covered  by  stock  operations  secured  to  him, 
and  no  doubt  there  was  security  of  some  sort  or  other,  but  the  shaivs 
went  from   £L0  to    £12  per   cent,    premium   to  below  i)ar.     (Hw* 
hear.)    The  London  manager  had  furtively  and  fraudulently  gone  iot^ 
speculations  with  shares,  and  no  doubt,  if  the  speculations  had  succeeded,  be 
would  have  made  immense  profits ;  but  the  thing  collapsed,  and  hesoe 
the  losses.    If  they  were  to  go  through  the  whole  of  the  accounts  oo 


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which  the  losses  had  arisen,  he  would  truly  tell  them  that  there  was  not 
one  single  loss  which  he  had  encouraged,  and  respecting  which  he  should 
not  have  told  the  manager  to  beware,  as  there  was  not  a  single  name  to 
which  he  would  give  credit  for  £100. 

Mr.  Jolin  Bigham  reminded  Mr.  Walker  that  he  had  not  answered  the 
question  as  to  how  much  money  had  been  lost  in  consequence  of  the 
operations  of  the  board  or  manager.     (Hear,  hear.) 

Mr.  Kendall  said  as  these  large  losses  seemed  to  have  been  sustained  in 
London,  he  thought  the  meeting  ought  to  give  to  Liverpool  the  credit  of 
not  having  incurred  them.     (A  laugh.) 

The  Chairman  said  the  sum  total  against  the  London  branch  was 
£92,000.  What  the  directors  said  was  that  £3  per  share  would  more 
than  amply  cover  everything,  both  past  and  the  future. 

A  Shareholder — ^Is  the  loss  of  £92,000  attributable  to  the  defalcations 
of  the  London  manager  1     ("  Yes.") 

Another  Shareholder — ^Is  the  £3  per  share  estimated  on  50,000  shares  ? 
("Yes.") 

^fter  one  or  two  farther  remarks  had  been  made. 

The  Chairman  said  the  directors  estimated  the  losses  at  very  much  less 
than  would  be  covered  by  £3  per  share,  but  they  had  given  that  large 
amount,  as  it  would  leave  a  margin  to  cover  every  loss.  The  directors 
had  no  desire  to  conceal  anything  from  the  shareholders — they  were  but 
fallible — ^but  they  had  estimated  the  probable  loss  on  each  account  to  the 
best  of  their  ability, 

A  Shareholder  said  he  wanted  to  know  what  the  position  of  Mr.  Brown, 
the  late  Liverpool  manager,  was  with  respect  to  the  bank  ?  There  were 
absurd  rumours  going  abroad ;  it  being,  for  instance,  asserted  that  the 
late  manager  had  speculated  very  largely  in  shares.  It  was  far  better  to 
know  the  truth ;  there  was  no  use  of  blinking  matters,  and  he  felt  certain 
that  things  were  not  so  bad  as  to  some  they  appeared  to  be.  (Hear,  hear.) 
He  wished  to  know  whether  Mr.  Brown's  dealings  were  included  in  the 
absolute  losses  set  down  to  June  30th  ?  He  thought  it  was  far  better  to 
know  these  things,  for  he  believed  rumour  had  greatly  exaggerated  the 
fact«,  to  the  detriment  of  the  shareholders.     (Hear,  hear.) 

Mr.  M*Ewen  said  what  had  emanated  from  the  chair  on  the  subject  to 
which  the  shareholder  had  alluded  was  said  with  extreme  delicacy.  He 
thought  that  so  long  as  the  chairman  stated  that  the  loss  would  be  limited 
to  a  certain  amount,  he  would  say  that  out  of  delicacy  that  ought  to  be  ^ 
considered  sufficient.  (Hear,  hear.)  He  would  call  upon  the  chairman  to 
state  what,  under  any  circumstances,  was  likely  to  be  the  loss  sustained 
by  the  resignation  of  the  manager. 

The  Chairman — Is  it  the  wish  of  the  meeting  that  I  should  allude 
further  to  the  matter  1  It  is  a  matter  of  delicacy,  but  some  of  my  col- 
leagues wish  me  to  answer  the  question. 

The  Shareholder  said  if  the  chairman  thought  better  not  to  answer  the 
question  he  would  withdraw  it  at  once.     (Hear,  hear.) 

Several  Directors  (to  the  chairman) — Answer  it. 

The  Chairman  said,  with  reference  to  the  gentleman  referred  to,  he  had 
not  left  the  bank  in  the  position,  or  acted  in  the  manner  in  which  the 
London  manager  had  done.  (Hear,  hear.)  It  was  necessary  to  draw  a 
very  wide  distinction  between  the  two  gentlemen.  (Hear,  hear.)  Mr. 
Brown  did  not  appear  in  the  books  of  the  bank  as  a  debtor  (hear,  hear) ; 
and  with  reference  to  some  transactions  with  which  he  was  recently  con. 
nected  there  was  an  account  which  would  probably  be  a  deficit,  and  for 


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1118  Mercantile  and  Exchange  Bank. 

a  tolerably  large  amount— not  on  Mr.  Brown's  acoonnt,  bat  on  another 
account,  for  which  other  parties  were  liable.  The  directora  had  estixQatol 
tiiat  acoonnt  at  its  most  extreme  point  of  loss,  and  tiiere  were  inthefutore 
circumstances  which  might  reduce  the  amount  very  largely,  aye  by 
thousands.  The  directors  had  examined  the  acoonnt,  and  weighed  tk 
loss,  and  put  it  down  in  their  estimate  already  made.  They  had  no 
desire  to  conceal  anything  from  the  shareholders.     (Hear,  hear.) 

Another  Shareholder— Ton  say  you  have  ascertainod  as  nearly  ss  possi- 
ble what  is  the  loss ;  is  it  included  in  the  £92,000  which  yon  have  alindj 
mentioned  ? 

The  Chairman — ^No,  it  is  included  in  the  estimate  of  the  future.  HaTiag 
occurred  since  the  30th  of  June,  I  oould  not  include  it  in  the  balance-sheet 
of  the  dOth  June.     (Hear,  hear.) 

After  a  few  desultory  remarks, 

Mr.  John  Bigham  thought  that  the  ahareholdem  might  safely  oongrais- 
late  the  directors  on  having  no  lack  of  courage  in  coming  before  them  at 
a  time  when  they  were  not  compelled  by  their  deed  of  aunexation  to  u?^ 
so.     C^ear,  hear.)    Whether  the  future  would  turn  out  correct  or  not  be 
could  not  say,  but  he  could  not  help  feeling  that  at  present  the  state  o: 
affairs  was  unsatisfactory,  for  the  shareholders  had  lost  a  portion  of  tkir 
capital.     (Hear,  hear.)    He  did  not,  howerer,  think  that  it  would  be  ^ 
to  take  advantage  of  the  directors'  courtesy  by  entering  into  a  disctts&l :: 
that  day.     (Hear,  hear.)    IhiTing  the  past  six  months  no  more  bad  Jer^ 
to  speak   of   had  been  made;    and   as   a  shareholder  who   was  de^i; 
interested  in  the  bank,  he  thought  it  was  advisable  to  postpone  oomtL; 
to  any  discussion  until  the  legal  time  for  holding  their  meeting — ^that  vi 
to  Bay,  at  the  end  of  the  year— arrived.     (Hear,  hear.)     When  thai  tnu 
did  arrive,  of  course  the  directors  would  come  forward  with  a  statemes: ' 
accounts  authorised  and  vouched  for  by  the  legal  auditor.     The  accc^^ 
which  had  been  produced  by  the  chairman  were  not  vouched  forjSft-M 
being  strictly  drawn  up  the  directors  might  not  consider  themselves  V^'- 
by  them.     (Hear.)    At  the  next  annmd  meeting  they  would  have  » -^ 
instrument  laid  before  them ;   and  it  would  be  right,  because  f^ 
Hhareholders    would   bring   all   the   judgment   they   poflsessed  or  '^ 
knowledge  they  would  then  obtain,  and  say  whether  tiiey  belief  ^ 
could  recover  what  they  had  lost,  and  also  whether  they  should  oontifl^^  * 
a  bank.    He  was  quite  sure  that  at  the  next  meeting  momentous  qne'^-'^ 
would  have  to  be  decided,  and  he  was  assured  the  directora  would  o  b. 
forward  with  a  proposition  which  he  was  fully  convinced  would  meet  ri. 
the  approbation  of  at  least  nine-tenths  of  the  shareholdezs.     (Hear,  bea-' 
After  consulting  with  many  large  shareholders,  he  was  induced  to  b^''' 
that  it  would  be  wise  in  them  to  postpone  any  discussion  for  the  presei' ; 
they  had  only  to  wait  four  months,  during  which  time  they  would  be  i£  = 
worse  position  than  they  were  now,  and  they  oould  then  consider  the  ;r^ 
position  to  which  he  had  alluded.    fHear,  hear.)    For  himself,  he  thaLi^'*- 
the  directors  for  being  manly  enougn  to  enter  of  their  own  accord  in*  « 
statement  as  to  the  present  most  unfortunate  circumstances  in  which  ^ 
were  placed,  but,  as  one  having  a  deep  stake  in  the  bank,  he  advised  t^- 
to  waive  any  discussion  here.    (Hear,  hear.) 

Mr.  F.  Boult  said  he  did  not  like  the  tenor  of  Mr.  Bigham's  rcma^.-' 
Mr.  Bigham  appeared  to  suspect  that  the  directors  were  keeping  someth:-. 
bock,  and  that  the  accounts  of  the  bank  had  not  been  sifted  and  thoit>iL:^^ 
gone  into.    [Mr.  Bigham  said  that  was  not  what  he  wished  to  ooe^! . 
He  (Mr.  Boolt)  was  exceedingly  sorry  if  he  had  misconstrued  Mr.  Bi^b^  ' 


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remarks,  but  it  appeared  to  him  that  was  really  what  had  been  said.  The 
directors  had  nothing  to  keep  back,  and  although  they  might  be  ashamed 
of  the  result  of  the  businjess,  he  did  not  think  thai  they  were  indiyidually 
much  to  blame.  The  shareholders  were  awaxe  thai  the  afiairs  of  the  bank 
were  Dumaged  by  a  consulting  committee,  and  that  the  directors  generally 
did  not  see  the  accounts  or  know  the  details.  He  had  had  the  honour  to 
be  appointed  to  look  through  the  accounts,  and  he  believed  that  no  more 
than  £2.  lOg.  would  be  required  to  cover  the  whole  of  the  deficiency  on  the 
accounts  not  yet  closed.  This  was  considerably  nnder  the  estimiate  of  the 
<lirectors,  but  he  believed  that  £2.  lOs,  would  not  only  be  sufficient,  but 
would  leave  a  margin.     (Hear,  hear.) 

Mr.  A.  C.  Stewart  said  various  rumours  had  been  circulated  as  to  the 
^k ;  some  of  them  with  good  foundation,  some  with  little  foundation, 
and  some  with  no  foundation  at  aU.  He  thought  they  were  all  perfectly 
convinced  that  the  statement  put  forth  was  a  true  statement,  (hear,  hear,) 
and  tliat  the  directors  had  taken  in  every  possible  contingent  loss. 
(Hear,  hear.)  The  shareholders  had  been  told  what  their  property  was 
»orth  at  present,  and  that  was  a  point  gained.  He  was  sure  they  could 
not  but  thank  the  directors  for  the  courtesy  they  had  shown  in  making 
*he  statement  which  had  been  submitted  by  the  chairman.  He  was  con- 
nnced,  although  he  was  not  sanguine  at  any  time,  that  the  statement  to  be 
ITes^ented  by  the  directors  at  the  yearly  meeting  would  be  a  much  better 
Ot^ment  than  they  had  heard  to-day.  (Hear,  hear.) 

Mr.  Councillor  Kitchen  moved  a  vote  of  thanks  to  the  chairman,  and 
the  motion  was  carried  unanimously. 

The  Chairman,  in  responding,  said  he  should  not  like  the  shareholders 
to  leave  under  the  impression  that  at  the  annual  meeting  a  "  golden  image  " 
«(taJd  be  produced  from  the  cupboard  instead  of  a  "  skeleton"  to  which 
i't:  had  alluded  in  the  early  part  of  the  proceedings. 

The  meeting  then  terminated  ;  but  Mr.  Haigh  announced  that  another 
ijeeting  would  have  to  be  called  for  the  purpose  of  confirming  the  reaolu- 
'ions  whidi  had  been  passed  that  day. 


ABELPHI  BANK,  LIMITED. 

The  lialf.yeariy  meeting  of  this  company  was  held  at  the  Law  Associa- 
'ion  Rooms,  Cook  Street,  Liverpool,  on  .the  20th  July ;  Mr.  W.  R.  Camidge, 
.hairman  of  the  company,  presiding. 

The  following  report  was  taken  as  read : — 

"  The  past  li^f-year  has  been  distinguished  by  the  numerous  changes 
that  have  been  made  in  the  bank  rate,  which,  for  the  most  part,  has  had  a 
•'I'vniward  tendency,  the  average  price  of  money  having  been  much  below 
'  iuit  of  the  previous  half-year.  K  otwithstanding  these  circumstances,  your 
iircctors  have  been  able  to  employ  the  funds  at  their  disposal  on  remune- 
rative terms,  and  have  now  the  pleasure  to  announce  that,  after  payment  of 
•^1  expenses  and  making  ample  provision  for  bad  and  doubtful  debts,  there 
Is  a  sum  of  iS6,50O.  2s.  7d.  left  for  profit.  Out  of  this  sum  the  directors  have 
'declared  m  dividend  for  the  past  half-year  at  the  rate  of  10  per  cent,  per 
^umurn,  free  of  income-tax,  and  added  £1,000  to  the  reserve  fund ;  the 
fiance  of  £991.  4«.  7d,  has  been  earned  forward  in  favour  of  the  presenS 
.''ciif-year.  The  accounts  have  been  audited,  and  the  sureties  examined  as 
"isual  by  a  special  committee  of  two  directors. 


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1120 


Adelphi  Bank. 


Statement  of  Account*  from  December  Zlst,  1864,  to  Jttae  80/A,  1865. 

UABILITIE8. 


Subscribed  capital,  £260,220 ;  Capital  paid  up  on  4,293 
shares  at  £\0  each,  £42,930. ;  on  8,718  shares  at  £7  each, 
£61,026— £108,956. ;  less  calls  unpaid,  £1,671 

Amount  due  by  bank  on  current  and  other  accounts 

Beserre  fund  per  last  report,  £46,500;  amount  added  this 
half-year,  £1,000       

Amount  of  dividend  now  due  and  dividends  unpaid 

Balance  of  profit  carried  forward  to  next  half-year    


£102,285 

187^3 

47,500 

4,637 

991 


0    0 


£343,297     6    6 


ISSETS. 


Bills  discounted,promi8Sory  notes,  &c. 

Bank  premises,  &c.,  &c 

Cash  on  hand  and  at  call 


Dr. 


PBOWIT  AND  LOBS. 


General  expenses,  including  salaries,  stationery,  directors' 
remuneration,  law  expenses,  allowances  for  bad  and 
doubtful  debts,  &c 

Interest  on  deposits,  &c 

Dividend  now  due 

Amount  added  to  reserve  fund    

Balance  carried  forward  to  next  half-year 


Cr. 

Balance  brought  from  previous  half-year 
Profits 


£300,499  19  : 

22,366    7  ',» 

20.430  19  r 

£343,297    6  *■ 


£3,379    6 

a,536    S 

4^68  H 

1,000    e 

991    4 

£13,475  li 


X7^l^    * 
lt.757  15  11 

£13,475  li   '^ 


The  Chaurman — I  feel,  gentlemen,  it  will  be  very  uimeoesaary  in  me  u> 
detain  you  long  to-day,  and  that,  in  rising  to  more  the  adoption  ol  thi^ 
report,  there  will  be  very  little  for  me  to  do.  On  looking  ht  the  £gui«fr 
in  the  accounts,  you  will  perceive  that,  since  the  last  meeting,  the  paid-up 
capital  has  been  considerably  increased,  and  that  there  is  a  larger  amoimt 
of  deposits  with  us  than  there  was  at  that  time.  Thesre  is  one  verr 
important  item  in  the  report  to  which  I  will  direct  your  attention  for 
one  moment.  It  is  under  the  head  of  ^'  profit  and  loss,"  and  the  item 
itself  has  reference  to  profit.  You  will  ol^rve  by  this  report  that  tb::^ 
amount  is  considerably  below  what  it  was  the  last  half-year.  That  at  firs; 
sight  would  appear  somewhat  strange,  inasmuch  as  we  haTe  done  mar. 
business  than  during  the  preceding  half-year.  But,  as  a  set-oif  to  thai,  if 
you  will  look  to  the  other  side  of  the  report,  you  will  perceive  that  the 
item  there  of  general  expenses,  d;o.,  is  more  than  £2,000  less  than  it  wis 
in  the  last  haj3-yearly  report,  tiius  showing  that,  although  the  gross  prv  nt> 
appear  less  during  this  half-year  than  during  the  preceding  one,  the  ex- 
penditure on  the  various  items  included  in  that  (debit)  column  shows  a 
considerably  less  amount.  If  you  look  in  that  column  you  will  see  that  xl 
includes  an  item  for  bad  and  doubtful  debts.    That  is  the  true  explanation 


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of  the  reduced  amount  of  gross  profits  this  half-year,  inasmuch  as  there 
have  been  fewer  bad  debts  during  the  last  than  in  any  previous  half-year 
since  we  were  constituted  a  bank.  This  just  carries  out  the  truth  of  the  state- 
mcnt  that,  where  large  profits  are  made  in  banks,  they  frequently  mean  very 
great  risks,  and  that,  where  smaller  profits  are  made,  the  risks  are  smaller 
and  the  net  profit  is  thus  very  little  sdtered.  I  am  glad  to  say  that  this  is  the 
real  reason  with  us.  We  have  been  improving  our  class  of  business  during 
the  Usi  half-year,  and  we  have  fewer  bad  debts  to  report.  I  think  that  ia 
peculiarly  gratifying. 

Mr.  Ollerhead — ^Tt  occurs  to  me,  Mr.  Chairman,  while  you  are  on  this  sub- 
ject, that  it  would  be  a  very  great  improvement  if  the  bad  and  doubtful  debts 
were  stated  distinctly  and  separately. 

The  Chairman — ^Perhaps  you  will  ask  questions  of  that  sort  after  I  have 
made  my  statement.  I  shall  be  very  glad  to  answer  them  then.  There  is 
auother  very  important  reason  why  the  gross  profits  appear  smaller  now, 
and  that  is  because  of  the  downward  tendency  of  the  money  market  during 
the  last  half-year.  All  the  banks  suffer  in  the  same  way.  They  have  not 
been  able  to  obtain  as  high  rates  during  the  last  half-year  as  they  did 
during  tho  previous  one,  and  therefore  I  expect  to  see  in  the  reports  of 
all  the  banks  a  less  amount  of  gross  profits  than  before.  Money  is  like  every 
other  commodity,  and  when  there  is  a  redundancy  of  it  it  is  cheaper.  That  is 
hailed  with  pleasure  by  the  general  community ;  but  to  banks  and  capitalists 
it  means  a  reduction  in  their  profits.  I  will  only  state  that  the  accounts,  and 
all  the  securities,  have  been  thoroughly  examined  by  two  of  the  directors  : 
Mr.  Williams  and  myself,  and  we  have  found  the  accounts  in  a  very  satis- 
factory state.  The  books  we  found  properly  kept,  and  all  tlie  securities 
were  at  the  bank.  In  reference  to  the  appointment  of  a  public  auditor, 
unconnected  with  the  bank,  I  mentioned  it  at  the  last  meeting.  I  stated 
then  that  the  election  or  appointment  of  an  auditor  rested  with  the  share- 
holders :  that  the  directors  were  not  at  all  averse  to  it ;  and  that,  if  the 
shareholders  thought  proper  to  elect  such  an  officer,  or  auditor,  they  would 
be  quite  ready  to  receive  him.  But  no  action  was  thought  proper  to  be 
taken  at  that  time,  and  it  now  rests  with  the  shareholders  to  say  whether 
they  will  have  such  an  audit.  I  may  state  t^at  no  public  audit  could  be 
more  thorough  than  that  already  instituted  by  the  directors  and  by  the 
committee  appointed  to  examine  the  debts.  One  of  our  directors,  since 
the  last  meeting,  has  resigned,  and«  the  directors  have  not  thought  it 
necessary  during  the  interv^  between  that  event  and  this  meeting  to  elect 
a  successor.  The  gentleman  referred  to  is  Mr.  J.  W.  Bell,  who  is  the 
chairman  of  auother  company,  and,  according  to  the  articles  of  our  asso- 
ciation, that  prevents  him  from  holding  the  office  of  director  with  us.  I 
shall  be  very  happy  now  to  answer  any  questions,  and  shall  conclude  by 
moving  the  adoption  of  the  report. 

Mr.  A.  Fisk,  deputy-chairman — I  have  great  pleasure  in  seconding  the 
adoption  of  the  report.    It  is  a  peculiarly  gratifying  oue,  sir. 

Mr.  Ollerhead — ^I  have  nothing  further  to  say  but  that  I  think  it  would 
be  more  satisfactory,  in  all  bulking  affairs,  to  separate  the  bad  and 
doubtful  debts.  I  think  the  National  Bank  have  adopted  the  plan. 
Instead  of  classing  the  expenses  and  all  the  bad  and  doubtful  debts 
together,  it  occurred  to  me  that  if  the  debts  were  stated  distinctly  it  would 
make  no  difference,  only  that  it  would  be  more  satisfactory  to  the  pro- 
prietary. It  is  the  duty  of  the  proprietary  to  throw  out  suggestions,  and 
as  a  suggestion  I  leave  it  in  your  hands. 

The  Chairman— Are  there  any  other  remarks  to  be  made  1 

Mr.  Brawley — ^For  my  own  part  I  am  quite  satisfied  with  your  being 
VOL.  XXV.  58 


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1122  Adeiphi  Bank, 

araditor  of  tbe  acoonntB.  But  I  have  lieard  it  talked  out  cdf  doore  thai  it 
would  be  better  if  we  bad  some  person  besides  you  to  do  it.  To  give  satis- 
&ction  out  of  doors,  perhaps,  it  would  be  better  to  do  so, 

Mr.  J.  B.  Hughes— I  think,  Mr.  Ohairman,  the  acoounts  are  extremely 
satisfactory,  and  I  think  they  show  favourably,  for  I  happen  to  know  wme 
of  the  bad  debts  that  have  occurred  in  previous  years.  1  think  they  show 
that  the  bank  is  in  a  very  sound  state,  and  all  that  we  want  is  for  tha 
shareholders  to  keep  their  accounts  there,  and  bring  in  those  of  our  friends 
in  order  that  we  make  progress. 

Mr.  Brawley — Is  this  the  time  to  move  for  the  appointment  of  an  auditor  \ 

The  Chairman — ^Yes.  The  first  thing  would  be  to  move  a  resolntiTa 
dcelariug  that  an  auditor  should  be  appointed,  and  the  next  to  appoint  Lim. 

Mr.  Hughes — Can  that  be  done  without  five  days'  notice  t 

The  Chairman— -Some  shareholders  have  been  under  the  impressiaQ  th^t 
the  directors  ought  to  take  the  initiative  in  this  matter,  and  appoin;  » 
auditor  or  propose  one  ;  but  that  really  is  not  the  case,  because  the  snditiv 
is  suppnsed  to  bo  a  check  upon  the  directors ;  and  I  think  it  would  be  na- 
reasonable  for  the  directors  to  propose  or  appoint  a  man  to  that  office,  Tlic 
auditor  comes  between  the  shareholders  and  the  directors. 

Mr.  Hickey — I  suppose  an  auditor  would  entail  an  expense  on  the  coxa- 
pany,  and  he  would  only  have  to  go  over  what  had  been  done  alreadr  aal 
would  be  guidefl  by  the  work  done  already.    If  the  appointment  woal«i  ^ 
a  satisfaction  to  the  shareholders  of  course  it  would  be  better  made.    Br. 
for  my  own  part,  I  am  quite  satisfied,  as  I  am  certain  the  audit  coM  r  < 
be  better  done  than  it  is,  as  these  gentlemen  are  acquainted  with  <fT^ 
transaction  of  the  company,  and  the  public  auditor  would  h&ve  to  i^  '  '^ 
by  eitlier  the  manager  or  by  those  directors  who  have  examined  tiw*  l*^" 
previously.     Therefore,  it  would  be  of  very  little  consequence  a«  Tssar's 
the  good  it  would  do  to  the  company,  and  it  wotdd  only  entail  an  «i^"*' 
we  have  very  little  necessity  for. 

Mr.  R.  P.  Williams — As  one  of  the  directors  who  have  aaiiM'i^ 
accounts  I  assure  you  that  they  are  in  a  mast  satisfactory  state.    B«v^^^ 
regard  to  the  api)ointment  of  an  auditor  I  think  there  is  a  gress  «sl  •* 
truth  in  tlie  statement  made  at  a  recent  meeting  <rf  the  City  Bank.    T*^- 
are  many  banking  accounts  which  ought  to  be  private,  and  the  City  Bsci 
refused  to  appoint  an  auditor  on  the  ground  that  many  of  the  acooasa 
ought  not  to  be  divulged.     If  you  have  perfect  confidence  in  your  direction 
the  api)ointment  is  unnecessary.    A  jrablio  auditor  would  have  to  take  tu 
accoimts  as  presented  to  him  by  the  dorks.    The  statement  made  at  tu 
City  Bank  meeting,  the  other  day,  was  considered  by  itte  shareholtars 
perfectly  satisfactory. 

Mr.  J.  W.  Boll— I  think  by  a  clause  in  the  articles  you  are  oon^i^ed  x- 
appoint  two  of  your  directors  specially  for  this  purpose,  and  I  think  it  J^ 
quite  sufficient* 

jVIr.  James  ALsop — ^How  far  the  appointment  would  influence  the  pul-l:- 
mind  is  another  question.  I  don't  think  Mr.  WHliama's  obj«cti*^n  i*  * 
good  one,  because  a  publicly-appointed  auditor  would  of  course  be  hncal 
to  secrecy,  and  as  a  public  man  he  would  be  bound  to  observe  it.  I  bs^v 
the  greatest  faith  iu  the  present  audit.  My  faith  would  not  be  incrtsjw*! 
one  iota  if  Mr.  Harmood  Banner,  or  Mr.  Blease,  or  some  other  p«bl..> 
auditor  were  appointed. 

The  Chairman — Perhaps,  gentlemen,  as  the  accounts  pwweiited  tn-4ijy 
have  undergone  so  thorough  an  investigation,  you  will  think  it  pro*»e  r  x«» 
pass  the  report,  and  leave  the  question  of  the  appointment  of  a  PuKi> 
auditor  for  future  discussion.    There  is  no  amendment,  I  think  ? 


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AdelphiBmk.  1123 

Mr.  Hii^oy — ^There  does  not  seem  an  inclination  to  appoint  a  public 
auditor ;  therefore  it  would  be  better  to  go  on  with  the  business. 

The  Ohairman — ^In  reference  to  what  Mr.  Ollerhead  has  said  as  to  the 
grouping  of  the  items  together  in  the  debit  column,  we  have  the  details 
here  in  the  books,  so  that  the  shareholders  can  see  them,  and  we  don't  see 
that  it  is  good  policy  on  the  part  of  the  bank  to  publish  them.  As  long 
as  we  who  are  interested  in  the  different  items  have  the  books  to  go  to 
we  think  that  is  sufficient. 

The  motion  ^^  that  the  report  be  adopted"  was  then  carried  unanimously. 

The  Chairman — Now,  gentlemen,  if  you  wish  to  enter  upon  the  subject 
of  a  public  auditor,  this  is  the  time. 

Mr.  J.  B.  Hughes — Can  you  do  it  ? 

The  Chairman — ^I  think  we  can.  This  is  the  clause.  (Read  119th  para- 
graph of  articles.)  1  apprehend  that  anything  that  is  done  now  will  be 
as  to  the  future,  not  to  the  past,  inasmuch  as  this  rex>ort  is  past.  The 
meeting  which  makes  such  an  appointment  must  fix  the  remuneration  to 
he  given  to  such  auditor.  So  that  there  are  three  things  to  be  determined. 
Fiist,  to  settle  whether  there  shall  bo  an  auditor,  then  to  appoint  him 
and  then  to  fix  bis  salary.  Those  are  the  propositions  which  now  remain 
to  be  considered. 

Mr.  Brawley — I  rise  to  move  that  there  shall  be  an  auditor  appointed 
to  work  with  the  auditor  that  may  be  appointed  by  the  directors.  I  will 
take  the  sense  of  the  meeting. 

Mr.  Ollerhead — ^Is  that  to  be  retrospective  or  to  apply  merely  to  the 
acoounts  at  the  end  of  the  half-year  1 

The  Chairman — ^If  you  have  a  public  auditor,  he  or  his  clerks  will  have 
to  be  at  the  bank  frequently  during  the  half-year.  It  is  impossible  for 
them  to  do  it  thoroughly  merely  at  the  end  of  the  half-year,  for  it  has 
taken  Mr.  Williams  and  myself  many  days. 

Mr.  Brawley — I  only  throw  it  out  to  get  the  sense  of  the  meetiDg.  What 
expense  would  it  be  attended  with  1 

The  Chairman — I  don't  know. 

The  Chairman — As  there  is  no  seconder  to  Mr.  Brawley's  motion  it  falls 
to  the  ground. 

Mr.  Brawley — ^It  was  mentioned  just  now  that  one  of  the  directors  had 
resigned,  and  that  no  one  had  been  appointed  in  his  place.  I  tliink  it 
woidd  bo  as  well  the  next  time  the  report  comes  out  to  put  in  it  the 
names  of  gentlemen  who  are  eligible  to  be  proposed  as  directors.  As  the ' 
list  of  members  is  now  so  numerous,  it  might  be  found  inconvenient  to 
put  them  all  in  as  used  to  be  the  case. 

Mr.  Ellison — The  shareholders  have  access  to  the  list  of  names  at  the 
l>ank,  and  if  Mr.  Brawley  will  come  at  any  time  to  the  bank  I  shall  be 
glad  to  read  them  all  over  to  him. 

Mr.  Ollerhead — Don't  you  think  the  shareholders  have  confidence  in  the 
present  directors  ? 

The  Chairman — I  am  reminded  by  the  manager  that  inasmuch  as  our 
shares  are  not  quoted  in  the  Stock  Exchange  it  would  be  as  well  for  the 
Bhareholders  to  recollect  that  either  in  the  purchase  or  sale  of  shares  they 
^11  receive  every  assistance  from  the  manager.  It  is  very  pleasing  to  seo 
that  the  premiums  on  tho  shares  of  this  bank  have  remained  so  steady. 
While  the  premiums  on  the  shares  of  many  of  the  other  banks,  and 
«'5pocially  the  now  banks,  l\avo  fearfully  depreciated,  ours  have  remained 
5<teady.  And,  looking  at  tho  report,  oife  need  not  bo  surprised  at  that,  for 
wo  have  an  amount,  nearly  equal  to  half  the  paid-up  capital  in  reserve. 


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1124  AdelphiBank. 

There  are  very  few  banks besidee  oun  that  can  sfaoir  areserre  fond  equal  lo 
half  the  paid-up  capital. 

Mr.  B.  P.  Williams — The  directors  can  only  use  their  own  indiridoal 
inflnenoe  in  bringing  bnainess  to  the  bank.  Dnrinff  the  whole  of  the  past 
half-year  the  bnsinesa  of  the  bank  has  been  steaduy  xncreasii^,  and  in- 
creasing in  a  Tory  good  way.  But  the  shareholders  fdioold  aanat  the 
directors  amongst  themselTes  and  their  friends  by  bringing  bnsineBs  to 
the  bank.  If  every  shareholder  would  only  bring  one  account  to  the  bank 
^e  amount  would  be  doubled,  and  we  should  hare  to  call  for  a  larger 
amount  of  capital.  And  if  the  business  goes  on  in  the  same  way  I  thisk 
it  will  be  one  of  the  best  and  most  profitable  I  know.  The  amount  of  the 
bad  debts  during  the  past  half-year  was  barely  £700.  There  is  soarcelr  a 
bank  in  Liverpool— well  managed  as  Liverpool  banks  are — can  riiow  »• 
small  an  amount,  and  not  a  single  penny  of  which  has  been  made  tliis  half- 
year. 

Mr.  Ellison — ^It  will  be  pleasing  for  the  shareholders  to  know  further, 
that  one-half  of  the  entire  £700  is  for  one  item  which  is  in  course  of  par- 
ment ;  but,  as  it  is  likely  to  take  a  few  years  before  it  is  paid,  the  directors 
have  treated  it  as  bad. 

Mr.  OUerhead— I  think  your  explanation  is  perfectly  satiafactofy. 
Mr.  Hughes — I  beg  to  move  a  vote  of  thanks  to  the  chairman  for  pn> 
siding  over  this  meeting,  and  also  over  the  directors. 
Mr.  Brawley — I  b^  leave  to  second  that. 
The  vote  having  bwn  passed. 

The  Chairman  said — Gentlemen,  I  can  only  thank  you  for  your  exftv*- 
sion  of  approbation.  I  assure  you  that  the  directors  are  quite  a/woit^;* 
and  as  deserving  of  thanks,  as  myself,  and  perhaps  more  so.  I  am  ^J 
one  amongst  the  others,  and  they  have  all  be^  equally  zealous  with  mj^ 
I  am  very  glad  to  see  such  a  large  attendance  here  to-day.  It  ahon  tk 
interest  the  shareholders  take  in  the  affairs  of  the  bank,  ^whm  ^^ 
attend  here  in  such  numbers,  notwithstanding  the  excitement  oat  d  ^^ 
caused  by  the  county  election. 

Mr.  J.  W.  Bell  then  moved,  and  Mr.  OUerhead  seconded,  a  vote  oi 
tliauks  to  the  directors  and  manager  for  the  way  in  which  they  \^ 
managed  the  business  of  the  bank  during  the  past  half-year. 

The  Chairman— I  think  the  business  of  the  meeting  would  not  ha^i 
beei>  satisfactorily  done  without  this  vote,  for  the  directors  havie  been  at- 
tentive, and  I  am  sure  the  manager  and  the  general  officials  have  be«i 
most  attentive.  Mr.  Manager,  I  have  great  ]^easure  in  presentiiig  tt. 
thanks  of  the  meeting  to  you,  and,  through  you,  to  the  whole  of  tin 
oiiicials  at  the  bank. 

Mr.  Ellison — ^I  am  very  much  obliged  to  you  gentlemen,  for  tlii5  re- 
newed expression  of  your  thanks  and  confidenoe  as  to  myself  and  tk* 
staff  under  me ;  and  I  assure  you  that  there  is  but  one  wish  on  the  par: 
of  myself  and  those  working  under  me— to  do  all  we  can  to  further  tb. 
interests  of  the  bank. 

Mr.  R.  P.  Williams—Gentlemen,  on  the  part  of  the  rest  of  the  dim- 
tors,  allow  me  to  return  you  our  thanks.  We  take  it  as  a  motion,  of  <x<t3- 
fidence.  We  all  of  us  do  the  very  best  we  can,  and  1  can  add  my  meed  ci 
praise  to  the  manaffer.  He  certainly  does  work  hard,  and  is  at  the  bank 
early  and  late.  wLen  we  were  auditing  the  accounts,  the  manager  u!*m1 
to  l>e  there  as  late  as  ten  o'clock  and  after. 
This  terminated  the  business  of  the  meeting. 


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1126 

THE  ESTATES  BANK. 

Am  extraordinary  general  meeting  of  tlie  shareholders  of  this  bank 
^limited)  was  held  at  the  Freemasons'  Tavern,  on  the  22nd  Angusty  to 
consider  the  advisability  of  confirming  an  agreement  entered  into  by  the 
directors  for  an  amalgamation  with  another  bank,  and  to  pass  resolutions 
thereon. 

The  chair  was  occupied  by  Mr.  Hattersley,  chairman  of  the  bank,  who 
at  length  detailed  the  terms  agreed  on  by  the  directors  for  an  amalgama- 
tion with  the  Exchange  Bank,  Lombard  Street,  and  he  believed  that  such 
amalgamation  would  be  beneficial  to  all  parties.  The  ten -pound  shares  of 
the  Exchange  Bank  would  be  transferred  to  the  shareholders  of  the 
Estates  Bank,  in  proportion  to  the  amount  paid  up.  The  shareholders  of 
the  latter  bank  would  have  the  advantage  of  being  connected  with  a  cor- 
poration doing  a  certain  and  lucrative  business,  and  they  might  reasonably 
look  forward  to  good  dividends. 

Lord  Kinnaird,  Dr.  Ryan,  of  Dublin,  and  several  of  the  provincial 
agents,  expressed  themselves  in  favour  of  the  proposed  amalgamation. 

A  Lady  here  stated  that  as  a  shareholder  she  had  some  doubts  as  to  the 
policy  of  the  proposed  amalgamation.  She  would  like  to  know  if  the 
shareholders  of  the  Estates  Bank  were  to  receive  any  bonus  for  handing 
over  their  business  to  another  company,  and  she  had  not  yet  heard  what 
special  advantages  they  were  to  derive  from  the  change,  especially  as  they 
were  now  going  on  well  and  paying  a  good  dividend. 

Ultimately  the  resolution  for  the  amalgamation  of  the  two  banks  was 
^manimously  adopted. 


NATIONAL  BANK 


A  8FBCIAL  general  meeting  of  the  proprietors  of  this  bank  was  held  on 
the  22nd  August,  at  their  office  in  Old  Broad  Street,  in  compliance  with 
the  following  notice  issued  by  order  of  the  board  of  directors ; — 

"  Notice  is  hereby  given,  that  two  successive  special  general  meetings  of 
the  proprietors  of  the  National  Bank  will  be  held  at  the  office  of  the  society 
in  Old  Broad  Street,  London,  on  Tuesday,  the  22nd  day  of  August  next, 
and  on  Wednesday,  the  23rd  day  of  August  next,  at  one  o'clock  precisely 
in  the  afternoon  of  each  day,  to  consider  the  propriety  of  further  increas- 
ing the  capita]  of  the  society,  by  the  creation  and  issue  at  par  of  10,000 
new  shares  of  £50  each,  to  be  distributed  amongst  the  present  shareholders 
in  the  proportion  of  one  new  share  for  every  four  of  the  existing  shares, 
and  (by  way  of  bonus)  to  credit  each  such  new  share  with  £30  paid  up  by 
transfer  to  capital  account  of  that  amount  from  the  rest  or  undivided 
profits  of  the  society,  thus  placing  such  new  shares  upon  the  same  footing 
in  every  respect  as  the  existing  shares,  and  whereby  the  entire  capital  wiU 
he  increased  to  the  sum  of  £2,500,000 ;  and  to  provide  for  the  rights  (in 
respect  of  said  bonus)  of  proprietors,  the  number  of  shares  held  by  whom 
at  the  time  fixed  for  the  tfistribution  of  the  proposed  new  shares,  may  not 
amount  to  four  or  may  not  be  a  multiple  of  that  number.  And  at  which 
meetings  now  called  such  resolutions  may  be  passed  as  shall  be  deemed 
advisable  for  carrying  out  the  objects  above-mentioned,  and  certain  reso- 
lutions relating  to  such  objects,  and  approved  of  by  the  court  of  directors, 
*nd  recommended  by  them  for  adoption,  will  be  submitted  to  the  pro- 
prietors." 

The  chair  was  taken  by  Mr.  M'Kenna,  M.P.    There  were  not  more  than 
Wtween  twenty  and  thirty  shareholders  present  upon  the  occasion,  and  the 


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1126  NaHonal  Bank. 

resolutions  proposed  by  the  Sectors  were  adopted  by  the  meeting  wIUioqI 
any  opposition. 

The  Chairman  said  that  the  objects  contemplated  by  the  resolvtiGBi 
irhich  were  to  be  submitted  to  the  assembled  proprietors  were  of  a  very 
simple  character,  although  they  were  coached  in  somewhat  lengthened  u)d 
technical  language.  Those  objects  were  to  transfer  a  sum  of  £30(>,000 
from  their  reserve  or  uudivided  profit  to  capital  aoooont,  and  to  trai»fer 
it  in  such  ratio  that  each  shareholder  should  be  entitled,  to  one  new  £50 
share,  represcutiiig  £30  of  paid-up  capital  for  every  four  shares  he  Ldd 
in  the  existing  stock  of  the  company.  There  was  a  further  provision  witii 
respect  to  the  holders  of  shares  not  divisible  by  four ;  and  it  was  pro- 
postxl  that  they  should  receive  for  each  such  share  certificates  or  vouch-ra, 
which  would  bo  saleable  in  the  market  after  their  position  should  bo  liuly 
certified  by  the  bank.  They  had  at  present  a  nominal  capital  of  £2,0<»,>  *  <♦, 
and  £1,200,000  of  that  sum  had  been  paid  up.  Their  rest  or  undiviuAi 
profit,  after  the  payment  of  the  last  dividend,  was  between  £700,IM>  aod 
£800,0  >0,  and  when  the  rciiolutions  he  had  then  to  submit  to  the  mrttiag 
were  carried,  as  he  anticipated  they  woidd  be  carried  on  that  and  on  the 
8aoceedin<;  day,  the  paid-up  capital  of  the  bank  would  amount  to  £1 ,50(V''^'^\ 
and  the  reserve  fund  would  stand  at  between  £4:00,000  and  £500,000.  A 
dividend  on  the  new  sliares  of  the  same  amount  as  that  paid  on  tbe 
present  shares  v.ould  necessitate  a  distribution  among  the  proprietors  of 
an  additional  sum  of  £iO,O0O  a  year — that  was  to  say,  that  while  they  n^v 
divided  £100,0 JO  a  year,  their  future  earnings  should  amoimt  to  £2U0,l>A« 
a  year  if  they  were  to  maintain  the  same  (fividend.  It  might  be  askcJ 
whether  the  bank  had  arrived  at  a  point  at  which  the  directors  coutd 
fairly  expect  to  realise  a  profit  of  £200,000  a  year ;  and  to  such  a  quesiiL 
he  should  contidently  answer  in  the  afi^mative,  while  he  believed  tLVi 
before  very  long  the  earning  powers  of  the  bank  woidd  reach  a  much  hijbt: 
figure.  He  did  not  pretend  to  predict  precisely  what  their  profit-s  were  iiktiy 
to  be,  but  he  thought  he  could  confidently  state  the  ratio  at  which 
they  had  hitherto  increased  would  not  be  materially  diminislied.  He  li*J 
lately  received  some  communications  from  shareholders  who  appeared  i» 
labour  under  the  impression  that  the  new  £30  shares  which  it  wasprop"^*! 
should  be  issued  would  require  that  the  person  who  was  to  receive  tbeo 
shoidd  pa}'  up  that  amoimt.  But  that  was  a  complete  misapprehcnuoB, 
for  the  money  was  to  be  i)aid  by  the  bank  in  the  manner  he  had  just  gtateo. 
He  believed  ho  had  olfered  all  the  necessary  explanations  in  reference  to 
the  immediate  business  which  they  had  that  day  met  to  transact  Bnt  it 
was,  perhafis,  desirable  that  he  should  avail  himself  of  that  opportunity  d 
making  a  few  observations  with  respect  to  their  general  position.  Tii^ir 
balances  from  customers'  accounts  in  London, on  which  iiit-erest  was  payaU^ 
were  at  present,  as  nearly  as  possible,  tenfold  what  they  had  beim  foor 
years  ago,  and  their  balances  from  customers'  aooounta  in  London  on  wfaicb 
they  paid  no  interest  were  equal  to  the  amount  of  customers*  acooants  oa 
which  they  paid  no  interest  in  the  whole  of  their  64  branches  in  IrdanA 
But  their  Irish  business  had  not  diminished,  while  their  motiopotitan 
business  had  so  greatly  increased,  and  thus  balances  from  customers 
accounts  in  Ireland  were  greater  at  present  than  they  had  been  at  tfcc 
corresponding  iM?riod  of  last  year.  He  had  to  conclude  by  submitting  to 
the  meeting  in  a  single  motion  a  series  of  six  resolutions,  which  had  U'ai 
framed  for  the  purpose  of  carrying  out  the  objects  for  which  they  had  l*«3i 
brought  together,  and  which  they  would  have  to  confirm  at  a  second  niecting 
to  be  held  on  the  day  succeeding.     Those  resolutions  were  as  follows  :— 

*•  Resolved  :— First-^That  the  capital  of  the  society,  which  *ras  origin- 
ally  £1,000,000,  and  which  was  by  resolutions  passed  at  two  snccessiTe 

Digitized  by  ^OOQlC 


National  Bank.  1127 

general  meetings  of  proprietors^  held  on  the  23rd  day  of  March  and  the 
2itli  ()ay  of  March,  1864,  increased  by  the  creation  of  20,000  new  shares  o€ 
£50  each,  shall  be  further  increased  by  the  immediate  creation  and  issue 
of  10,000  new  shares  of  £60  each,  so  as  to  increase  the  entire  capital  of  the 
society  to  £2,500,000. 

**  Secondly — That  such  last-mentioned  new  shares  shall  on  or  under  date 
of  the  31st  day  of  August  instant  be  distributed  by  the  directors  amongst 
the  proprietors  on  the  register  at  the  time  of  such  distribution,  in  the 
proportion  of  oife  new  share  for  every  four  of  the  existing  shares,  and  each 
such  new  share  shall  be  credited  by  way  of  bonus  with  £30  paid-up  by 
transfer  to  capital  account  of  that  amount  from  the  rest  or  imdivided  profits 
of  the  society,  to  the  intent  that  such  new  shares  may  then  bo  upon  the 
same  footing  in  every  respect  aa  the  existing  shares.  And  with  respect 
to  proprietors  of  three  shares  only  or  less,  or  of  more  than  four  shares 
not  being  a  multiple  of  four,  each  odd  share  shall  entitle  the  proprietor  of 
it  to  one-fourth  part  of  such  bonus  of  £30  in  resi^ect  of  one  new  share 
And  the  directors  may  give  to  each  holder  of  any  such  odd  share  or  shares 
such  'certificate  or  certificates  under  the  hands  of  any  two  or  more  of  them 
of  his  or  her  interest  in  respect  to  a  new  share,  and  of  his  or  her  right  to 
dispose  of  such  interest,  but  so  that  such  disposition,  if  not  to  an  existing 
proprietor,  shall  be  subject  to  the  approval  of  the  directors,  and  shall  in 
any  case  be  verified  by  lodgment  of  the  certificate  at  the  company's  office 
in  Old  Broad  Street,  on  or  before  the  Slst  day  of  December  next. 

"  Thirdly — That  after  the  3l8t  day  of  December  next,  the  shares  created 
in  respect  of  such  odd  shares  and  not  previously  disposed  of  under  the 
last  resolution,  may  be  sold  by  the  directors,  who  in  that  case  shall  place 
to  the  credit  of  the  parties  entitled  thereto  respectively  in  the  books  of 
the  bank,  without  interest,  the  amount  realised  from  the  sale  of  such  shares. 
"  Fourthly — That  the  proprietors  of  the  new  shares  now  created  shall 
hold  the  same  upon  and  subject  to  the  same  terms  and  regulations,  and 
with  the  same  rights  and  privileges,  upon  and  subject  to  wliich  the  origi- 
nal shares  in  the  society  are  held. 

'*  Fifthly — That  every  proprietor  or  other  person  to  whom  any  of  the 
new  shares  now  created  shall  be  allotted  or  sold  under  the  foregoing  re- 
solutions, shall,  at  such  time  and  at  such  place  as  the  directors  may  specify, 
execute  such  deed  or  instrument  as  the  court  of  directors  shall  require,  for 
the  purpose  of  making  himself  or  herself  liable  to  the  rules  and  regula- 
tions of  the  society,  in  respect  of  the  new  share  or  shares  so  allotted  or 
sold  to  him  or  her. 

"Sixthly — That  the  provisions  embodied  in  the  foregoing  resolutions 
shall  be  new  regulations  and  provisions  of  the  society,  and  such  rcf^lutions 
shall  accordingly  be  considered  as  amending,  altering,  or  repealing  the 
existing  regulations  and  provisions,  so  far  as  they  may  be  inconsistent 
with  such  new  regulations  and  provisions." 
Mr.  Bolus  Smith  seconded  the  motion. 

Mr.  Fox  said  he  had  no  opposition  to  oifer  to  the  motion.  But  he 
wished  to  take  that  opportunity  of  expressing  his  gratification  at  the  posi 
tion  in  which  the  bank  was  at  present  placed.  They  were  at  that  momeiii 
reaping  the  fruits  of  the  judicious  husbandry  of  their  resources  in  pasi 
years,  and  they  were  about  to  widen  the  field  of  their  future  operations 
They  had  at  present  a  sum  of  more  than  £1,000,000  committed  to  their 
charge,  and  that  fact  showed  the  progress  they  had  made  in  securing  the 
public  confidence.  He  hoped  that  before  the  lapse  of  many  years  their 
accounts  in  Ireland  would  make  a  much  more  important  figure  than  they 
did  upon  that  occasion,  and  he  believed  that  a  better  day  was  about  to 
dawn  upon  that  country,  from  which  he  had  just  come,  and  that  her  in- 


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1128  National  Bank. 

habiiants  would  soon  find  profitable  employment  throngh  the  ajiplicatioii 
of  capital  to  the  development  of  her  natttral  resonroeB. 

The  resolutions  were  then  nnanimonsly  adopted. 

The  Chairman  said  that  they  had  no  further  bnainess  to  trKosict  upon 
that  occasion,  but  it  would  be  necessary  that  the  motion  to  whidi  they  liad 
just  given  their  assent  should  be  confirmed  by  a  second  special  meetiag, 
and  the  shareholders  would  have  to  assemble  again  on  the  foUowiiig  <lav 
for  that  purpose. 

The  procc^ngs  then  terminated. 


The  second  special  general  meeting  of  this  bank  was  held  on  the  23rd 
August,  at  their  office  in  Old  Broad  Street,  for  the  purpose  of  formaliv 
confirming  the  resolutions  adopted  at  the  meeting  of  the  day  preceding 

Ml'.  M'Kenna,  who  again  occupied  the  chair,  said  that  his  daty  upon 
that  occasion  was  altogether  of  a  formal  character.  He  had,  on  the  diy 
before,  explained  to  the  best  of  his  ability  nhe  scheme  for  the  transfer  tf 
ii300,000  of  their  reserve  or  undivided  profits  to  capital  account,  and  the 
creation  of  a  proportionate  number  of  new  shares ;  and  he  had  upon  the 
present  occasion  only  to  move  the  confirmation  of  the  six  resolutions  ib 
which  that  proposal  was  embodied. 

The  motion,  having  been  seconded  by  Mr.  Ashlin,  was  at  onoe  un^- 
mously  adopted. 

Mr.  Wheeler  said  he  thought  that  the  thanks  of  the  shareholden  ven 
eminently  due  to  the  directors  for  the  manner  in  which  they  bad  cos- 
ducted  the  business  of  the  bank,  and  more  especially  for  the  masterly  ^ 
just  adopted  upon  their  recommendation  (hear,  hear).  He  believed thi^  t^ 
success  of  a  b£^  depended  exclusively  on  its  direction — that  if  thedir^ 
tion  were  good  it  would  certainly  prosper,  and  that  if  the  direction  v<t^ 
bad  it  woidd  certainly  prove  a  failure.  They  all  knew  how  sucoessfiflT^ 
National  Bank  had  been  managed  by  the  present  board  of  directcs,  ^^ 
he  begged  leave  to  move  to  them  the  warm  thanks  of  that  meeting. 

Mr.  Stock,  M.P.,  seconded  the  motion.  Having  for  some  time  W 
many  relations  with  that  bank,  he  could  testify  that  there  was  no  «^ 
blishment  of  the  kind  more  admirably  managed,  and  he  was  sore  ^J 
all  felt  that  they  were  deeply  indebted  to  the  gentlemen  by  wliom  it^ 
business  was  conducted. 

The  resolution  having  been  imanimously  carried, 

The  Chairman,  in  acknowledging  the  compliment,  said  he  hadtotii>i^ 
the  meeting  for  their  kindness  upon  that  occasion.  He  could  assure  tbon 
that  the  best  efforts  of  his  colleagues  and  of  himself  were  directed  to  the 
promotion  of  the  welfare  of  the  establishment,  and  that  the  gr«tert  pl«»^ 
sure  which  a  board  of  directors  could  enjoy  was  that  of  receiving  vna)  > 
vote  as  that  which  the  meeting  had  just  passed,  and  of  feeling  that  it  wnf 
not  wholly  unmerited, 

Mr.  Stock  next  proposed  a  vote  of  thanks  to  the  chairman,  who  wa^  ^ 
said,  the  mainspring  of  the  whole  establishment,  and  who  devoted  to  itv- 
his  time  and  energy. 

This  motion  was  seconded  by  Mr.  Wheeler,  and  unanimously  carried. 

The  Chainnan  then  briefly  replied,  and  the  proceedings  ternunaied. 


Digiti 


ized  by  Google 


1129 


ORIENTAL  COMMERCIAL  BANK,  LIMITED. 

An  ordinary  general  meeting  of  the  shareholders  of  this  bank  was  held 
on  the  23rd  Angust,  at  the  London  Tayern ;  Vice- Admiral  Bnmey  in  the 
chair. 

The  following  report  waa  read : — 

^  Tour  directors  have  much  pleasure  in  submitting  the  accompanying 
exposition  of  your  affairs.  The  business — ^which  is  that  of  the  former 
Oriental  Commercial  Company,  Limited,  progressively  extending  upon 
the  power  of  the  three  concurrent  and  combining  companies— emerges 
from  a  period  of  some  considerable  mercantile  disturbance  with  this  proof 
of  a  steadily  increasing  prosperity.  The  balance-sheet  embodies  the  figures 
of  the  financial  year,  since  the  last  published  accounts  of  the  Oriental 
Commercial  Company,  Limited ;  but  as  the  former  and  separate  interests 
of  that  company  have  been  provided  for,  without  interruption  to  the 
regular  course  of  business,  the  balance  of  net  profits  to  be  dealt  with 
really  relates  only  to  the  operatiens  of  four  months  from  the  1st  of  March 
last.  The  capital  amount  included,  with  reference  to  former  members  of 
the  National  Financial  Company,  Limited,  refers  only  to  shares  actually 
exchanged  on  or  before  the  30th  June  last,  and  which  rank  for  dividend 
from  the  1st  of  March,  contemporaneously  with  those  of  former  members 
of  the  Oriental  Commercial  Company,  Limited.  The  remaining  £100,000 
tiates,  upon  the  accounts,  from  the  17th  of  May  last,  to  be  vested  in 
trustee  officers  for  twelve  months,  and  subject  to  a  separate  and  special 
provision  as  to  the  profitn  which  will  hav(/ accrued  thereon.  As  the  period 
embraced  by  the  combined  accounts  now  submitted  is  fragmentary — 
having  been  thus  marked  out  to  preserve  the  uniformity  of  published 
returns  and  of  general  meetings,  and  seeing  that  the  season  comprised  is 
that  of  the  least  a^vity  and  profit  in  the  course  of  the  company's  regular 
business,  your  directors  have  determined  to  recommend  that  the  net 
profits  dispoBable  be  treated  for  distribution  ad  interim  in  the  declara- 
tion of  a  dividend  at  the  rate  of  10  per  cent,  per  annum,  which  will 
absorb  £5,738,  leaving  £3,913  to  be  carried  forward  for  accumulation,  and 
dealt  with  as  the  company  may  hereafter  determine.  Your  directors  solicit 
attention  to  the  fact  that  of  the  profits,  amounting  to  £25,854,  no  less  than 
£19,106  has  been  derived  from  commissions,  and  £5,954  irom  interest, 
showing  the  safe  nature  of  the  operations.  The  large  sum  yet  in  the  com- 
pany's hands  on  account  of  dividends  previously  declared,  arises  chiefly 
from  amounts  payable  to  members  who  have  accounts  current  with  the 
company,  into  wMch  upon  settlements  such  dividends  will  have  to  pass. 
The  establishment  of  a  branch  at  Patras,  under  the  local  public  admmis- 
tration  of  a  council  and  committee,  with  a  view  to  the  very  large  and 
important  interests  of  the  company  in  that  quarter,  has  been  hailed  with 
cordial  satisfaction ;  and  your  directors  are  assured  of  a  further  increase 
of  business  under  gratifying  conditions.  From  all  directions  in  which  the 
regular  mercantile  and  exchange  operations  of  the  company  have  been 
opened  up  and  extended,  your  directors  continue  to  receive  no  less  favour- 
able intelligence: — notwithstanding  that  the  prevalence  of  a  serious 
epidemy  on  the  coasts  of  the  Mediterranean  has  operated  to  check  activity 
for  a  time.  Your  directors  can,  therefore,  express  to  you  their  confident 
anticipation,  that  the  coming  produce  season,  with  a  promise  of  more 
settled  markets,  will  contribute  amply  to  the  profitable  emplojrment  of 
your  capital,  so  aa  at  once  to  provide  for  liberal  dividends,  and  for  an 
adequate  addition  to  the  reserve." 


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1130 


Oriental  Commercial  Battk. 


Baiamee-^heet,  SQA  Jmma,  1866. 


Dr. 

Capita!,  tiz. — The  Oriental  Commeicial  Company,  limited, 
10,000  shares  of  £20  each,  at  £7  paid,  £70,000  ;  4,652 
shares,  new issne,  £23,278.  IBs.;  the  National  Financial 
Company,  limited,  19,720  sfaarea  of  £20  each,  at  £4  paid, 
£78.880 ;  the  Fuumdai  Corporation,  Limited  25,000  sharef 
of  £20  each  at  £4  each,  £100,000         ...      ^      ..«      .- 

Creditors  on  hills  payahle  against  prodnoe  and  other  securities 
„  on  balances  of  account  corrent  for  goods  S(dd  on  com- 
mission     ...      ...      .«•     •••     ..•      ...      •••      *••      ••• 

BeEcrye  fund,  £24,500 ;  the  Financial  Corporation,  Timited, 

^^OfUvvl       ••■  •••  .(•  •«.  •.•  ...  •••  ••■  ••• 

Dividend  accoont,  dividends  nnclaimed  and  in  course  of  pay- 
ment       ••*      •«•      •••      ••.      •..      ■••      •••      •■■       ••• 

Profit  and  loss,  the  net  amonnt  £20,901.  3^. ;  less  psit  to  Feb- 
mary  28th  1865,  divided  amongst  the  shurehoiders  of  the 
Oriental  Commercial  Company,  Limited,  £11,250 


£972,158  16 
174,64a  19 


40,601  12   4 
49,SO0    0   0 

7,709    7  10 

9,651   9  ^ 
£554,264  1810 


Cr. 

Balances  on  carrent  accounts,  dne  from  agents  and  correspon- 
dents, and  against  which  securities  are  held,  valued  at 
£210,000,  exclnsive  of  the  other  securities  held  abroad,  and 

in  transitu       ...     *••     ..•     ...     •••    •     ... 

Cash  at  bankers',  £16,839. 12«.  lid,;  oheiiue  on  hand,  £500  ; 
bills  receivable  on  hand,  £34,635.  13f.        .••    .-    ...     ••• 

National  Financial  Company,  Liinited,  baUmce •     .^ 

Financial  Corporation,  capital  and  premium,  payable  on  or  be- 
fore May  17th,  1866      

Preliminary  expenses,  £4,800 ;  goodwill  paid  to  the  sharehold- 
ers of  the  Oriental  Commercial  Company ,Liniited,  £15,000 

Stock  on  hand • •       «•• 

Disbursements  for  charges  on  goods  received  for  account  of 

consignors         •••      

Furniture        ... ••• 

Financial  Corporation,  limited,  advances  for  purpose  of  Iniui* 

OaOOm  •*«  •••  »••  •••  »ac  ••*  um4  •••  ••• 


£255^1  U  I 

51,»5  5il 
56;fi»* 

125,000  *  • 

19,800  0  0 
263  U  5 

7,306   1   6 
586U   9 

37,700   9  » 
£554,264  WW 


PBOFTT  AXD  L088  AOOOUIIT. 


Dr. 


Sundry  charges,  including  directors*  remuneration,  salaries, 

office  expenses,  &c 

Commission 

Amonnt  carried  to  baUttce-sheet 


£3.828  15  10 

1,125    0   0 

20,901    3   '^ 

£253M  W  I'* 


Digiti 


ized  by  Google 


Oriental  Commercial  Bank.  1131 

Cr. 

Balance  brought  forward £230    8    8 

Interest  account 5,954  11  11 

CommiBsion  on  gocls  imported,  exported,  sold  and  parchas^, 

for  account  of  cnstomem ...  19,105  19    3 

Amount  deducted  from  salaries,  &c.,  for  proportion  of  the  same 
charged  prior  to  February  28th,  1865,  (the  dato  of  combi- 
nation), but  not  duo  till  June  30th,  1865 564    0    0 


£25,854  19  10 


The  Chairman  in  moving  the  adoption  of  the  report,  said  be  felt  called 
upon  to  say  a  few  words,  as  it  was  probable  some  of  the  sharobolders  bad 
not  received  the  balanco-sbeet  and  report.  If  snob  was  the  case  tbey 
should  be  very  happy  to  furnish  them  with  them.  It  was  their  endeavour 
to  send  out  to  every  individual  shareholder  the  report,  as  they  fearlessly 
placed  it  before  the  public.  He  thought  this  report  was  a  most  satisfactory 
one,  and  he  was  in  a  position  to  look  them  in  the  face,  and  say  he  bad  not 
deceived  them.  If  there  were  any  questions  they  wiBhed  to  put  to  them 
with  respect  to  tbe  amalgamation,  they  were  ready  to  answer  them.  They 
need  not  call  them  there,  but  they  wished  every  six  monthfi  to  give  an 
ad  interim  dividend.  Although  only  four  months  had  then  elaps^,  tbey 
called  them  together  to  agree  to  a  dividend  of  10  per  cent.,  which  be 
thought  they  were  justly  entitled  to  distribute.  He  begged  to  move  tbe 
adoption  of  the  report. 

3Ir.  Mavragordato  seccmded  the  adoption  of  the  report. 

Mr.  Shoi-t  said  they  were  entering  a  new  history  of  tbeir  capitaL  Would 
it  not  be  well  to  investigate  the  question  whether  they  should  not  pay 
15  per  cent,  on  tbat  as  a  commercial  company.  In  all  commercial  com- 
panics  there  was  a  certain  amount  of  reserve  fund,  and  if  it  were  a  large 
one,  it  placed  the  company  in  a  better  position  ti)an  other  companies 
which  had  not  so  large  a  reserve.  Wben  they  had  got  a  reserve  fund  of 
£270,000,  their  position  was  secured  and  the  value  of  their  shares  in^ 
creased.  He  woidd  rather  see  the  dividend  2|  per  cent,  less,  and  to  have 
such  a  reserve  fund  as  would  place  them  in  a  proud  position. 

The  Chairman  said  they  did  not  intend  to  do  any  business  but  com- 
mission. As  to  the  financial  business,  he  bad  pledged  himself  not  to  do 
financial  business. 

Mr.  Short — ^What  is  the  reserve  fund  ? 

Mr.  Swan— £49,500. 

Mr.  Short — ^What  do  you  carry  over  ? 

Mr.  Swan— £3,931.    It  now  amoimted  to  £49,500. 

Mr.  Morris  asked  what  was  the  position  of  the  shareholders  who  bad 
transferred  tbe  Financial  Oriental  new  shares  1 

Mr.  Swan  said  there  was  no  shareholder  in  tbe  Oriental  Financial  Com- 
pany who  would  not  pay  £3  or  £7.  All  be  would  bave  to  do  was  to  band 
over  the  difierence  to  the  purchasers. 

Mr.  Cobbet  said  thero  was  a  sum  of  £24,600  receivable  on  bills.  Did 
they  hold  any  security  for  tliis  ? 

Mr.  Swan— Certainly.  They  held  security  to  tbe  extent  of  £200,000. 
These  bills  were  not  held  as  security.  Tbey  were  received  in  connection 
with  shipping, 

Mr.  Cobbet  asked  why  £15,000  bad  been  paid  to  the  shareholders  of  the 
Oriental  Commercial  Company. 


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1132  Oriental  Commercial  Bank. 

Hr.  Siran  said  the  Oriental  Commercial  Company  entered  into  arrange- 
ments  with  the  Financial  Corporation.  The  Oriental  Finandal  Cor- 
poraticNi  had  a  reserve  fond  amounting  to  £20,000,  and  it  had  established 
a  business  for  which  it  was  proposed  to  give  a  large  amount  Therefore, 
paying  it  was  a  rery  great  advantage  to  the  other  company  coming  in. 
The  other  companies  should  be  paid  back  by  the  premium  which  they 
really  created  on  the  shares. 

Mr.  Cobbet— How  many  years'  purchaae  was  that  ? 

Mr.  Swan— It  was  but  a  little  more  than  two-and-a-half  years'  porch^-ie. 

Mr.  Cobbet — What  did  that  balance  refer  to— the  National  Financial 
Company,  Limited,  balance  £56,000  ? 

Mr.  Swan— Since  then  £26,000  has  been  paid  off  that  The  £30,000 
has  been  paid  up,  and  they  had  nothing  to  do  with  this  account. 

Mr.  Ormerod  said  he  saw  in  the  accounts  relative  to  the  Financial  Cor- 
poration there  was  a  very  large  advance  under  the  head  advanced  for 
liquidation. 

Mr.  Swan — The  amount  of  £37,100  was  an  item  belonging  to  that  com- 
pany. They  had  made  an  agreement  with  the  oompany,  whereby  ther 
agreed  to  see  that  the  accruing  liabilities  should  be  settled.  They  were 
to  afford  to  them  twelve  months  for  the  realisation  by  slow  degrees.  That 
would  be  the  best  result,  for  if  they  ha^l  pressed  it  on  the  market  it  migtit 
not  have  been  realisable  at  all.  Therefore  they  agreed  to  assist  them  in 
meeting  the  realisable  assets  as  they  felt  due.  The  difference  between 
£190,000  and  £90,000  of  the  liabilities  of  the  company  had  been  i>aid,  n?i 
of  which  £37,000  was  paid  out  of  their  funds. 

Mr.  Cobbet— Was  that  paid  off  ? 

Mr.  Swan — That  Lb  not  due  yet.  The  money  was  not  due,  and  would  d*  ^t 
be  needed  for  two  months. 

Mr.  Ormerod  said  there  were  25,000  shares  at  £4  per  share,  but  only  £i' 
a  share  was  called  up.  The  Oriental  Financial  Company  limited  it  t) 
25,000  shares  at  £4  per  share. 

Mr.  Swan  said  the  capital  of  the  National  Financial  Company  was 
£75,000.  Those  shares  of  the  National  Financial  Company  had  been  con- 
verted from  one  £75  share  into  three  £25  shares,  subject  to  the  payment 
of  £25,000  being  contributed  to  the  reserve  fund  in  the  accounts  of  th-? 
Oriental  Finance  Company. 

Mr.  Ormerod — ^Are  the  shares  at  par  ? 

Mr.  Swan — They  were  at  par  at  the  commencement,  but  the  liabilities 
were  not  due  till  the  6th  of  May,  1867. 

Mr.  Ormerod— Had  the  £100,000  been  paid  to  them  ? 

Mr.  Swan— The  £100,000  was  secured  to  them.  That  was  now  tie 
Oriental  Commercial  Bank,  Limited.  The  £100,000  was  carried  on 
certain  groimds,  and  the  securities  were  credited  to  the  liquidators  of  tlic 
oompany,  they  having  to  the  7th  of  May,  1866,  to  make  goo«l  that  amount. 
They  certainly  did  not  anticipate  there  would  be  any  loss  on  that  accomit 
The  Oriental  Commercial  Company  had  realised  their  assets  and  paid  their 
debts. 

Mr.  Cobbet — You  do  not  apprehend  any  deficiency  1 

Mr.  Swan — Certainly  not.  They  came  there  to  place  their  affairs  before 
them  in  the  most  clear  and  satisfactory  manner,  and  if  any  shareholder 
came  to  the  office  they  would  show  him  the  figures  for  himself  to  jud^. 

Mr.  Cobbet — Could  they  make  any  estimate  of  what  they  would  rewise  ? 

Mr.  Swan — No.  For  certain  securities  were  not  due,  and  they  could 
not  make  an  estimate  of  a  futui*e  realisation. 

Mr.  Watford  said  that  their  operations  at  that  moment  were  of  the  most 


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OrierUal  Commercial  Bank.  1133^ 

satiBfactoxy  kind.  When  they  entered  into  it  they  paid  £50,000  down. 
The  liabilities  were  £100,000.  They  were  reducing  the  liabilities  day  by 
day.-  What  further  amount  of  reduction  there  might  be  he  did  not  know. 
They  had  certain  securities  to  realise,  and  by  the  6th  of  May,  1867,  they 
should  realise  all,  and  10  i)er  cent,  would  be  paid  to  the  shareholders  by  the 
Financial  Corporation. 

Mr.  Swan  said  they  had  no  separate  transactions  with  the  Financial 
Corporation,  Limited.  They  could  only  recoguise  them,  acting  under  the 
advice  of  counsel,  that  nothing  should  be  done  in  the  form  of  monetary 
transactions,  except  it  was  carried  to  the  account  of  the  liquidators.  He 
might  «ay,  whatever  arose  out  of  it,  the  money  would  be  paid  over  to  divi- 
dend. They  would  pay  out  of  that  whatever  arose  on  the  profit.  They 
found  from  the  liquidators  that  there  was  no  supposition  that  they  had  paid 
anything  for  goodwill.  Who  paid  for  the  g(x>dwill  ?  They  had  corre- 
sponded with  them  about  their  goodwill,  but  it  proved  that  it  was  they  who 
expected  the  goodwill.  The  Oriental  business  was  an  increasing  business. 
It  had  given  them  £16,000  as  a  whole,  and  he  believed  no  more  legitimate, 
or  more  fair  fund  for  business,  or  a  more  profitable  one  in  the  commercial 
world,  was  to  be  found. 

Mr.  Morgan  said  that  it  made  a  difference  whether  it  was  paid  to  the 
liquidators  or  to  the  shareholders.  It  appeared  to  him  they  were  bound  to 
pay  the  shareholders  of  the  Financial  CQpT)oration,  and  those  who  were 
shareholders  at  the  time  ought  to  have  10  per  cent. 

Mr.  Swan  said  they  were  acting  in  all  that  had  been  done  to  carry  out 
those  arrangements  to  the  best  possible  advantage  to  the  greater  body  of 
the  shareholders.  Mr.  Hatton,  their  professional  adviser,  told  them  there 
was  no  separate  covenant ;  on  the  contrary,  it  required  a  series  of  covenants, 
and  the  Oriental  Commercial  Company,  the  Financial,  and  the  Oriental 
Bank  were  represented  by  three  gentlemen  whose  names  were  therein.  If 
it  was  the  subject  of  a  covenant  to  pay  a  dividend,  or  anything  else,  it 
might  be  quite  obvious  to  any  lawyer,  in  order  to  create  that  covenant, 
and  to  give  it  to  each  individual,  that  he  should  have  assigned  it  to  another, 
and  if  he  brought  an  action  the  plea  which  ho  would  put  in  would  be  that 
the  charge  was  on  the  other  party.  That  was  the  advice  they  were  acting 
on.  They  believed  they  had  to  pay  it  legitimately,  and  if  it  should  be  so, 
they  should  be  very  glad  to  pay  it. 

Mr.  Short  said  if  the  business  of  the  Financial  Company  was  carried 
out  he  would  not  have  had  anything  to  do  with  the  company.  He 
understood  the  general  arrangements  were  successful  in  their  opera- 
tion, and  looked  at  the  sort  of  shareholders  contributing  a  cei-tain 
amount  of  capital  for  the  Oriental  Commercial  Bank,  for  which  capital 
they  had  so  many  shares,  but  which  capital  wa.s  to  be  employed  in 
the  proper  business  of  the  Oriental  Commercial  Bank.  That  was  an 
important  thing  to  be  made  known  to  the  public,  and  Mr.  Swan  stated 
the  fusions  of  the  capitals  of  those  companies  so  far  as  their  opera- 
tions aa  the  Oriental  Commercial  Bank  went.  He  believed  there  was  a 
soundness  in  their  operations.  He  had  not  the  same  opinion  of  all  finan- 
cial comx)anies,  and  he  should  be  sorry  to  employ  his  capital  in  them. 
(Hear,  hear.) 

Mr.  Swan  said  with  a  capital  of  £115,000  they  had  made  a  profit  of 
something  like  £24,000  in  four  months.  What  would  it  be  when  they  had 
£272,000,  and  what  would  they  make  in  the  next  half-year  ?  Seeing 
the  large  capital  they  would  be  entitled  to  in  twelve  months,  he  asked 'the 
manager  if  their  profits  were  £24,000  on  the  employment  of  a  capital 
of  £115,000,  could  he  assume  that  with  a  capital  of  £272,000  he  could 


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1134  National  Bmk  cf  Liverpool. 

employ  it  with  equal  profit.  The  answer  he  got  was  most  satblackary. 
He  was  perfectly  satisfied  in  his  own  mind  from  fignres,  facts,  and  stalie. 
ments  made,  as  connected  with  the  f  atnre  business,  that  they  might  maka 
a  large  profit  on  £272,000.  He  believed  the  new  company  was  eontrihuting 
a  large  dividend  to  the  shareholders. 

Mr.  Cobbctt — If  I  feel  disposed  to  pay  £7.  5<.  as  a  shareholder,  I  can 
do  so? 

Mr.  Swan — ^Unquestionably ;  whenever  you  please. 

The  Chairman — Their  business  was  so  good,  it  exceeded  their  expecta- 
tions. In  Patras  they  instituted  a  board  of  the  first  merchants,  and  the 
chairman  of  the  chamber  of  commerce  had  joined  the  board  directly. 
He  saw  such  a  promise  of  business  and  such  a  prospect  from  all  paits  d 
the  Mediterranean,  he  thought  they  would  find  at  the  end  of  the  ye^ 
they  would  have  much  larger  returns  than  they  now  had.     (Hear,  hear.) 

The  report  was  unanimously  carried,  and  tlumks  having  been  voted  to 
the  chninuan  tlie  proceedings  terminated. 


LONDON  AND  ^lEDITERRANEAN  BANK,  LnHTED. 

A  FORMAL  meeting  of  the  proprietors  of  this  bank,  with  which  the  Ccmti- 
ncDtiil  Bank  Corporation  is  now  amalgamated,  was  held  on  the  23nl 
August,  at  the  South  Sea  House  ;  Mr.  W.  W.  Cargill  in  the  chair. 

The  Chiiirman  statal  that  the  meeting  was  called  in  order  to  satisfy 
the  requirements  of  the  committee  of  the  Stock  Exchange.  He,  therefore, 
proposed  a  special  resolution  for  making  the  following  alterations  in  the 
;u'ticle3  of  association,  viz. : — To  insert  the  words  "  except  the  shares  of 
the  company"  after  the  word  •* foreign"  in  section  9  of  clause  86; 
between  the  words  "  company  "  and  "  partnership  "  in  section  11  of  clause 
80 ;  and  after  tlie  word  "  foreign  "  in  clause  99  ;  and  to  insert  the  wonis 
"  except  in  purchasing  the  shares  of  the  company  "  at  the  end  of  clause 
100  ;  the  simple  cll'ect  of  which  is  to  prevent  the  company  from  dealing 
in  its  own  shares. 

A  vote  of  thanks  to  the  chairman  closed  the  proceedings. 


NATIONAL  BANK  OF  LIVERPOOL. 

An  extraordinary  general  meeting  of  the  shareholders  of  this  oompaay 
was  held  at  the  bank,  No.  14,  Cook  Street,  on  the  31st  of  July,  to  receive 
fri^m  tlie  directors  a  report  of  the  progress  of  the  bank  since  the  last 
ordinaiy  meeting,  and  a  declaration  of  dividend.  Mr.  Robert  Higgw* 
cl.airmsm  of  the  company,  presided. 

The  Manager  reatl  the  report  as  follows  : — 

"  Tlio  directors  of  the  Nationjd  Bank  of  Liverpool,  Limited,  have  much 
pleasure  iu  presenting  to  the  proprietors  their  fourth  half-yearly  report. 
^\fter  ^vriti^>g  off  all  bad  and  amply  providing  for  doubtful  debt*,  the 
accounts  of  the  bank,  made  up  to  the  30th  of  June  last,  show  a  net  profit 
of  i:i2,C77.  14.9.  Id.,  to  which  must  be  added  £2,810.  9*.  lOd.  brongbt 
tdi-ward  from  last  account,  and  £746  balance  of  premium  on  new  shares, 
leaving  available  £16,234.  ^s.  ll(f.  for  distribution,  which  the  directors 
have  applied  as  follows  : — Inpayment  of  a  dividend,  free  of  income  tax, 
at  the  rate  of  10  per  cent,  per  annum  : — 


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National  Bank  of  LiverpooL  1 135 

lOi.  per  slwecn  30,000  dULbIums  ^      £10,000    0    0 

7«.  per  share  OB  8,779  new  shares  .^  3,072  18    0 

13,072  18    0 

Profit  and  loss  next  acoouat        ...  »••  ...  ...         3,161  10  11 

£16,234    3  U 

The  ssiets  and  Uabifities  <^  the  bank,  and  the  profit  and  loss  account  to  the 
SOth  of  Jane,  are  as  follows: — 


Ctsh  m  hand  and  at  hankers'      ...  ...  ...  ...      £120,159    3  11 

Due  to  the  hank  on  hills  discounted,  loans  to  customers,  &c.       1,010,086    0    8 
Bank  premises  ...  ..  ...  ...  ...         19,511    9    8 


£1,149,756  13  10 


UABUJTIES. 

Capital  paid  up        ^   ...  £282,460    0    0 

Capital  paid  in  anticipation  of  future  calls, 
at4per  cent.interebt  ..  ...  5,925    0    0 


£288,385    0    0 


Begerrefund  ...            ...  ...            ...  ...  ...  103,895  0    0 

Dae  by  the  hank  on  deposit  and  current  account,  hills  on 

London,  &c.               ...  ...            ...  ...  ...  738,052  9  11 

l^Ute          ...               ...  ...           ...  ...  ...  3,190  0    0 

I^  and  loss                ...  ...  ...  16,234  3  11 


£1,149,756  13  10 


FB07IT  AKD  LOSS  ACOOUUT. 

Balance  from  last  half-year       ...            ...  ...            ...          £2,810    9  10 

Ket  profit  for  half-year  ending  SOth  June, 
1865,  after  writing  off  bad  debts  and  pro- 

Tidingfor  doubtful  debts     ...              ...  £15,867  14    1 

Less  rebate  at  3  per  cent,  on  bills  current  3,190    0    0 

12,677  14    1 

Balance  of  premium  account    •••             ...  ...           ...              746    0    0 

£16,234    3  11 

^  Of  the  2^494  new  shares  on  hand  at  last  meeting,  1,273  have  been 
taken  up  by  the  proprietors  at  a  premium  of  £7  per  share,  producing 
£8,913 .  This  sum  the  directors  have  applied  as  follows,  in  accordance 
"^th  the  original  understanding : — 

Beserye  fund,  increasing  it  to  £103,895,  being  £5  per  share  £6,365    o'   0 

Extinction  of  preliminary  expenses...  ...  ...  1,800    0    0 

Profit  and  loss  ...  ...  ...  ...  746    0    0 

£8,911     0    0 

**  Owing  to  the  numerous  mercantile  embarrassments  and  severe  fluctua- 
tions in  value  of  many  of  the  staple  artioles  of  commerce,  the  directors 
We  continued  to  aim  at  a  safe  rather  than  at  an  extensive  business ; 
^d  though  the  last  half-year  has  not  been  favourable  to  banking,  they  are 


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1136  National  Bank  qf  Liverpool 

happy  to  say  the  progreas  of  the  bank  has  been  eatiaf  acfairy ,  and  thai 
many  new  connexions  Jbiaye  been  formed  since  Ghristmaa  last." 

The  Chairman  said — During  the  last  six  months  there  has  been  an  tm- 
usual  degree  of  distrust  and  anxiety  in  commercial  circles,  and  but  Toy 
little  new  business  originated — ^that  is,  new  commercial  busineBB— in  th« 
town.  In  accordance  with  prudence,  the  directors  have  endeaToured  by 
all  means  in  their  power,  and,  as  the  result  has  proved,  successfully,  t<> 
preserve  from  loss  the  business  they  had  obtained,  leaving  to  more  aus* 
picious  times  the  greater  development  of  the  bank,  for  which  in  laverpool 
there  is  ample  scope  without  unduly  interfering  with  the  business  of  our 
banking  rivals.  In  carrying  out  this  course,  all  safe  business  of  a  profit- 
able nature,  and  which  did  not  involve  laige  advances,  has  been  freely 
entertained;  and  as  commerce  settles  down  once  more  to  its  ordinal}' 
channels  and  usual  risks,  I  doubt  not  but  this  bank  will  largely  share  in 
the  successful  results  of  trade.  The  amount  of  our  aooeptances,  whicL 
does  not  appear  in  our  account,  is  small,  reaching  only  £20,650.  The 
rebate  on  our  bills  was  taken  at  3  per  cent.,  the  bank  rate  on  the  30tb 
June  last,  up  to  which  our  accounts  were  balanced.  Of  the  1,221  new 
shares  on  hand  on  the  30th  of  June,  a  considerable  number  have  since 
been  allotted— the  balance  the  directors  reserve  for  distribution  as  tiie 
interest  of  the  bank  may  require.  The  shareholders  seem  to  have  bat 
little  desire  to  attend  our  meetings,  it  being  with  considerable  difficulty 
that  we  are  able  to  procure  the  attendance  of  the  number  required  by  our 
articles  of  association  for  the  purpose  of  declaring  a  dividend  to  the  30tl 
of  June.  Although  this  non-attendance  is  7ery  complimentary,  as  meetings 
when  an  imfavourable  report  is  feared  are  always  sufficiently  numerous, 
still,  as  each  meeting  involves  considerable  trouble  and  expense  to  the  baiikf 
the  directors  purpose,  at  some  favourable  opportunity,  to  ask  for  powers  to 
alter  the  articles  of  association  so  as  to  enable  them  to  declare  the  mid- 
summer dividend  without  a  formal  meeting  of  the  proprietors.  If  thi-^ 
alteration  is  made,  the  shareholders  will  receive  their  dividend  and  tb*^ 
report  much  sooner  than  at  present.  The  cheques  for  the  tlividend  now 
declared  will  be  posted  this  evening.  That  ends  the  business  of  thii  meet- 
ing— it  is  an  extraordinary  meeting  merely  to  declare  the  dividend,  and 
there  is  nothing  more  to  be  done. 

Mr.  John  D'Arcy,  of  Dublin,  said — ^Mr.  Chairman,  having  come  from 
the  sister  country,  where  we  hold  a  large  atake  in  the  ba^,  I  have  a 
desire  to  make  a  few  remarks.  The  shareholders  of  this  bank  hare  good 
reason  to  congratulate  themselves  on  the  very  favourable  report  presented 
this  day — ^the  more  so,  when  we  consider  the  unsettled  state  of  busine^'' 
during  the  past  six  months,  as  well  as  the  low  rate  of  interest  prevailing 
Wlien  we  consider  that  many  other  similar  institutions,  commencing  at 
the  same  period,  were  unable  to  pay  any  dividend,  we  should  doubly  con- 
gratulate  ourselves  on  the  present  results.  That  this  in  owing  to  the  go^^l 
arrangements  of  the  directors  and  the  manager,  there  can  be  no  doubt ; 
and  to  those  gentlemen  who  steer  this  great  slup  we  are  all  deeply  indebted. 
I  confess  I  was  not  prepared  to  hear  so  satisfactory  a  state  of  things,  noi 
to  receive  so  handsome  a  dividend,  which  I  look  upon  now  as  almost  per- 
manent for  the  future.  I  hold  100  shares  in  this  establishment,  and  I 
never  felt  more  confident  in  my  investment  than  on  the  present  occasion. 
I  hope  that,  as  we  have  taken  our  name  from  a  great  baJDJdng  institution, 
we  shall  go  on  and  prosper  in  its  wake.    (Hear,  hear.) 

The  Solicitor — The  meeting,  gentlemen,  is  over.  We  are  much  obliged 
to  you  for  your  attendance. 

The  proceedings  then  terminated. 


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1137 

LONDON  AND  COLONIAL  BANK,  LI^aTED. 

A  SPECIAL  meeting  was  held  at  the  London  Tavern,  on  the  23rd  August, 
to  considei  an  amalgamation  with  the  International  Bank ;  Mr.  J.  Geary  in 
the  chair. 

The  balance-sheet  was  as  follows : — 

Dr. 
Capitol  called  up,  10,000  old  shares  at  £20,  £200,000;  less  calls 

unpaid  to  date,  £39,794.  10* £160,205  10    0 

Capital,  new  issue  of  4,009  shares  at  £5,  added  to  £20  calls 

paid  in  advance,  £24,565,  less  calls  unpaid,  £14,480       ...  10,085    0    0 

Premium  on  new  issue  at  £4  per  shaie,  £19,636,  less  amount 

unpaid,  £5,116  14,520    0    0 

Sundry  creditors     3,639  12     1 

Total 

Cr. 

Cash  at  Alliance  Bank      

Stamps  on  hand       

Montreal  bank  premises  £573.  125.  Id 

Good  debts      

Branch  accounts,  £5,664.  65.,  less  Montreal  £121 

Estimated  to  realise  

International  bank  current  account,  £35,572. 17i.  4d.    ... 

Doubtful  debts,  J.  Field  and  others 

AUau  Hay  (New  York)    

J.  Gladstones: Co., £22,964.  1*.  6<f. 

Preliminary  .expenses        

Profit  and  Loss  account 

xotal    •••      ...      •••      ...      ...      .•• 


The  Chairmau  said  they  were  aware  that  at  the  meeting  which  they 
held  on  the  6th  of  July  a  certain  agreement  between  themselves  and  the 
International  Bank  Was  brought  up,  containing  a  clause  introduced  by  the 
latter  bank,  requiring  that  a  warrant  should  be  given  them  against  all 
claims  which  might  subsequently  occur.  The  offer  was  declined,  and  it 
was  resolved  that  a  committee  and  the  board  of  directors  should  take  such 
legal  steim  as  they  deemed  advisable.  After  great  delay  terras  were  arrived 
at,  in  the  shape  of  an  agreement  with  Messrs.  Price  and  Devot,  brokers, 
to  take  the  shares  at  a  given  price.  To  carry  out  the  agreement  it  was 
necessary  for  the  bank  to  wind  up  voluntarily. 

Mr.  Morris  (the  solicitor),  in  explaining  the  nature  and  effect  of  the 
agreement,  said  that  the  holders  of  £2,578  old  shares  had  expressed  their 
willingness  to  sell  at  £7. 10s.  per  share,  and  the  holders  of  650  new  shares 
had  given  evidence  of  their  wish  to  adopt  the  same  course,  the  price  being 
in  their  caae  £3.  15«.  per  share.  Only  the  holders  of  two  shares  had 
expressed  any  hostile  views. 

After  some  discussion,  a  resolution  sanctioning  the  voluntary  winding- 
up  of  the  company  was  carried  unanimously. 

A  vote  of  thanks  was  proposed  to  the  chairman,  and  the  proceedings 
terminated. 

VOL.  XXV.  80 

Digitized  by  VjOOQIC 


£188,450  2 

1 

£90  0 

0 

2  11 

6 

666  14 

a 

1,684  5 

6 

5,518  3 

1 

4.000  0 

0 

41,923  17 

1 

35,443  0 

5 

70,645  11 

4 

128,982  13 

3 

14,788  6 

4 

2,755  5 

5 

£188,450  2 

1 

1 138  Caledonian  Banking  Company. 

BIRMINGHAM  JOINT.STOCK  BANK,  LIMITED. 

Toe  following  arc  the  liabilities  and  assets  of  tlus  bank,  according  to  tho 
2l8t  and  22nd  Victoria,  cap.  91  : — 
The  liabilities  of  the  Company  on  the  Ist  day  of  July,  18G5,  were  :— 

Proprietors' capital £190,840    0    0 

Dne  to  the  public  on  deposit,  carrent,  and  other  accounts        ...       954,459    6    I 

Capitalization  fund 20,846    4  10 

Guarantee  fund  invested  as  follows :— In  consols,  £40,000 ;  New 
Three  per  Cents.,  £10,000;  East  Indian  Railway  "Five  per 
Cent.  Debentures,  £10,915.  ISs.  2d,;  London  and  North- 
western Railway  Debentures,  £10,000  ;  London  and  South- 
western ditto,  £10,000;  Nonh-Eastern  ditto,  £10,000; 
Midland  ditto,  £10,000;  South-Eastcm  ditto,  £10,000; 
Lancashire  aud  Yorkshire  ditto,  £10,000;  Great  Western 
ditto,  £9,009;  Great  Eastern  ditto,  £20,000;  uninvested, 
£178.  4*.  Id 150,093  V    3 


£1,316,239    8    2 


The  assets  of  the  Company  on  that  day  were  : — 

Government  securities,  &c £149,915  13    2 

Bills  of  Exchann:c 670,106  13    S 

Advances  and  other  loans  on  security       433,645    7  10 

Bank  premises       5,523  10  11 

Cash  in  band  and  at  agents           57,048    3    1 

£1,316,239     8    S 


CALEDOiSriAN  BANKING  COMPANY. 

The  twcuty-sixth  annual  general  meeting  of  shareholders  was  held  at 
the  bank,  on  the  7th  August,  when  the  following  report  was  read  and 
adopted  : — 

**  The  directors  have  much  satisfaction  in  laying  before  the  Bhareholdeis 
the  residt  of  another  year's  operations  of  the  bank.  The  net  profits  of  the 
year  ending  30th  June,  after  payment  of  income  tax  and  proyiding  for 
bad  and  doubtful  debts,  amount  to  £23,185. 15s.  dd.,  being  an  incresss 
upon  previous  years,  caused  by  the  more  profitable  character  of  tiie  bosi- 
uess  during  the  first  half  of  the  year  just  terminated,  and  alao  by  the 
realisation  of  some  of  the  bank's  securities  at  an  enhanced  vahie.  The 
balance  of  profit  brought  forward  from  last  year  is  £765. 16s.  lid.,  making 
the  total  sum  now  falling  to  be  disposed  of,  £23,951. 12s.  8d.,  which  the 
directors  propose  to  appropriate  as  follows,  viz. :— 

£12,500    0    0— in  payment  of  a  dividend^  at  the  rste  of  10  per  eent. 
per  annum,  without  deduction  of  income  tax. 
^,000    0    0— for  addition  to  the  bank's  surplus  or  guarantee  iund, 
thereby  increasing  it  to  £38,000. 
750    0    O—for  the  usual  annual  instalment  in  reduction  of  the  cost 
of  the  baiik*s  houses. 
1  ,701  12    &— 'halsDce  to  be  carried  to  next  aocovnt  of  profit  and  ton. 


£23,951    12     8 


Digiti 


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Caledonian  Banking  Company,  1139 

Z  The  directors  reoommend  that  the  dividend  shoiQd  be  raised  to  10  per 
cent.,  and  they  feel  assured  the  shareholders  will  agree  with  them  in 
thinking  the  increased  rate  of  dividend  is  justified  by  the  present  position 
and  prospects  of  the  bank.  The  directors  have  to  report  that  they  have 
contracted  for  suitable  premises  for  the  branches  at  Grantown  and  Bonar 
Bridge.  The  retiring  directors  at  this  time  are  Charles  Fraser  Mackintosh, 
Esq.,  and  William  Simpson,  Esq.,  and  these  gentlemen,  by  your  regula- 
tions, not  being  eligible  for  re-election,  the  directors  recommend  that 
Eneas  William  Mackintosh,  Esq.,  of  Baigmore,  and  Robert  Smith,  Esq., 
Gordon  Terrace,  Inverness,  be  elected  in  their  room/' 

Balance-sheet  on  the  SO^A  June^  1865. 

LIAB1UTI£S. 

Paid-up  capital  £125,000    0    0 

Circulation 83,256    0    0 

Deposit  accounts,  merest  receipts,  balances  of  banking  corre* 

spondents,    &c.  *  ...         ...         694,548  10    6 

Surplus  fund  29,000    0    0 

UndiTided  profits,  balance  brought  forward  from  last  year, 
£765.  16^.  11  cr.;  net  profits  for  year  ending  this  date, 
£23,185.  155.  9J 23,951   12     8 


£955,756     3     2 


ASSETS* 


lorestments,  advances  on  bills  discounted,  credit  and  other  ac- 
counts, debentures,  bonds,  and  other  securities  ...        ...      £854,037  14    6 

Specie,  notes  of  other  banks,  and  cash  in  hands  of  banking 
correspondents  86,384    8  10 

Bank's  houses,  and  furniture  at  head  office  and  branches         ...  15,333  19  10 


£955,756     3     2 


Profit  and  Loss  Account^  30M  Jane,  1865. 

Dr. 

Dividend  at  10  percent,  por  annum                      ...                  ...     £12,500    0  0 

Surplus  Fund,  being  transfer  to  this  account  of                     ...         9,000    0  0 

Increasing  the  surplus  fund  to  £38,000. 

Bank's  houses — ^transfer  in  reduction  of  cost  to  £14,583. 19i.  lOd.         750    0  0 

Balance  of  this  account  carried  to  next  year's  account           ...         1,701  12  8 


Cr. 

Balance  brought  forward  from  last  year 
Net  profits  of  year  ending  this  date 


£23,951  12 

8 

£765  IS 
23,185  15 

11 
9 

£23,951  12 

8 

Digiti 


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1140 


COMMERCIAL  BANK  OF  LONDON. 

A  MEETING  was  held  on  the  25th  of  August  at  the  London  TaTem.  Mr. 
W.  Jackson,  M.P.,  who  occupied  the  chair,  said  the  directors  had  found 
great  difficiUties  in  administering  the  Kensington  estate,  not  the  least  of 
them  being  the  somewhat  hostile  attitude  assumed  by  the  trustees  of  Lord 
Harrington  and  by  the  railway  company.  According  to  the  terms  of  the 
lease,  l£e  bank  was  compelled  to  erect  a  certain  number  of  houses :  the 
lease  had  only  two  years  to  run,  and  to  perform  their  covenant  they  mnst 
erect  twenty  more  houses.  For  that  purpose  it  was  necessary  to  borrk>v 
money  on  the  security  of  the  bank.  K  that  were  done,  he  had  not  tfce 
shadow  of  a  doubt  that  the  whole  of  the  capital  would  be  returned  to  the 
shareholders.  He  concluded  by  moving — "  That  details  having  been  lail 
before  this  meeting,  clearly  showing  it  to  be  the  interest  of  the  share- 
holders that  the  necessary  number  of  houses  should  be  erected  on  the 
bank's  Keusington  estate,  the  directors  be  and  are  heiCoy  authprls^  to 
assist  in  the  erection,  by  loan  or  otherwise,  of  a  sufficient  number  Oj 
houses  to  comply  with  the  covenants  of  the  building  agreement  with  Lord 
Harrington,  and  to  raise  the  necessary  funds  for  such  purpose  m  ibe 
security  of  the  existing  assets  of  the  bank." 

Mr.  Robinson  seconded  the  motion. 

Mr.  Johnson  wished  to  know  how  long  it  would  be  before  the  shaft- 
holders  received  back  the  remainder  of  their  capital. 

The  Chairman  replied  that  it  would  be  about  two  years.  The  toL* 
must  be  built  by  the  summer  of  1867,  and  ground.rents  would  thei  » 
created,  which  would  be  sold  for  the  benefit  of  the  shareholders. 

After  a  slight  discussiou  the  resolution  was  adopted  ncm,  dis. 

The  usual  compliment  to  the  chairman  and  directors  condiiil.*'  ^ 
business. 


ENGLISH  AND  SWEDISH  BANK,  LIIVHTED. 

The  annexed  is  the  report  to  be  presented  at  the  forthcoming  lueetitg  :^ 
"The  directors  have  the  pleasure  to  submit  to  the  shareholders  t^c 
annexed  statement  of  accounts  for  the  half-year  ending  30th  June  .j-^m 
duly  examined  and  certified  by  the  auditors.  It  will  be  seen  that  the  j,t.  »? 
profits  for  this  period,  including  a  sum  of  £2,224.  Ss.  Id,  brought  f».T«ari 
from  the  last  account,  amount  to  £26,421. 17«.  6c?.,  which,  aft«r  i^ayii:: 
current  expenses,  and  deducting  rebate  of  interest,  &c.,  leaves  a  i  a*^«^ 
of  £14,150. 7s.  3d.  Out  of  this  the  directors,  in  accordance  with  the  ]  '^^> 
conferred  on  them  by  the  articles  of  association,  have  the  satisfactuni  U 
declaring  an  interim  dividend  of  eight  shillings  per  share,  free  of  iuv^J^^' 
tax,  carrying  forward  a  balance  of  £6,238. 19s.  5d.  to  the  next  account  J  -^ 
directors  have  reluctantly  accepted  the  resignation  of  Mr.  J.  A.  Hr.iu.vj 
as  chairman,  in  consequence  of  his  proposed  lengthened  absence  fr  3- 
England,  but  he  will  still  retain  his  seat  at  the  boiurd.  Mr.  Wm.  T^t*^> 
has  been  elected  his  successor  in  the  chairmanship  of  the  bank.  Thcdir^:* 
tors  much  regret  that  death  has  deprived  them  of  the  valuable  scn>^^ 
of  Mr.  Wm.  Gibson,  member  of  the  Gothenburg  local  board,  whiiV  »t 
Stockholm  they  lose  the  able  co-operation  of  Mr.  0.  D.  Arfwedaou,  vhiei' 
other  business  engagements  have  necessitated  a  resignation  of  his  seat  a' 


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English  and  Smdiah  Bank.  1141 

the  local  boaxd.  Mr.  B.  Almquist,  who  had  previously  held  the  office  of 
auditor  at  this  branch,  has  been  elected  to  fill  the  vacancy.  The  directors 
are  happy  to  say  that  the  reports  from  the  branches  show  that  the  busi- 
ness of  the  bank  continues  steadily  to  progress,  both  at  Stockholm  aud 
Gothenburg."  , 

Balance-sheet,  Z^th  June,  1865. 
Dr. 

Subscribed  capital— 19,519  shares  of  £50  each,  £975,950 ;  less 
50  shares  forfeited,  £2,550,  £973,450 ;  capital  paid-up, 
19,469  shares  at  £20  each,  £389,380  ;  less  calls  in  arrear, 
£550  ;  calls  in  arrear  at  30th  June,  which  ha^e  since  been 
paid,  £7,215— £7,865  

Received  on  forfeited  shares      

Cnrrent,  deposit  and  other  accounts 

Billspayable 

Rebate  of  interest    

Profit  and  loss  ;  balance  as  per  account      


Cr, 

Cash  in  hand  and  at  call 

Bills  discounted,  loans,  &c 

Bank  premises,  famiture,  and  other  property  in  London,  Stocks 

holm,  and  Gothenburg        

Preliminary  expenses        ...   * 


FBOFIT  AKD  LOSS  ACCOU^TT. 

Br. 

Current  expenses,  including  rent,  salaries,  directors'  remunera- 
tion, &c.  £6,693     1     2 

Rebate  of  interest 4,800  10    8 

Exchange  o'n  branch  balances  due  to  head  office,  80th  June, 

1865      771   18     5 

Appropriation  of  balance,  viz. : — ^Payment  of  dividend  of  8*. 
per  share  free  of  income  tax,  £7,787.  12^. ;  income  tax 
thereon,  £129.  15«.  lOd,  ;  carried  forward  to  new  account 
JC6,238.  19«.  bd 14,156     7     3 

£26,421   17     6 

Cr. 

Balance  brought  forward  from  last  account £2,224    8    1 

Gross  profit 24,197     9    5 

£26,421  17     6 


381.515  0  0 

150  0  0 

183,875  10  10 

372,114  13  8 

4,800  10  t 

14,156  7  3 

^^956,612 

1 

11 

£45,561 
893,914 

15 
7 

9 
2 

12,135 
5,000 

19 
0 

0 
0 

£956,612 

1 

11 

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ized  by  Google 


1142 


SHEFFIEU)  AND  HALLAMSHIBE  BAKK. 

In  our  last  ntunber  we  gave  a  condensed  report  of  the  proceedings  at  the 
anniial  general  meeting  of  the  proprietors  of  the  SheflSeld  and  Hallninahire 
Bank.  Since  that  report  was  issued,  the  following  address  of  John  Bower 
Brown,  Esq.,  the  chairman,  in  moving  that  the  report  be  adopted,  has  been 
printed  in  the  form  of  a  pamphlet,  at  the  unanimous  request  of  the  share- 
holders present, for  private  circulation  amongst  the  proprietors;  we  transfer 
it  to  our  pages,  believing  it  will  be  perused  with  interest,  containing  as  it 
does  some  valuable  practical  remarks  on  the  management  of  joint^atock 
banks  : — 

The  Chairman  said — ^^  Before  proposing  to  you  in  form  the  adoption  of 
the  report,  I  have  a  few  remarks  to  mi^e  on  sundry  passages  in  it,  and 
also  on  several  subjects  growing  out  of  banking  operations  in  general,  cf 
the  past  and  present  years.    Previously,  however,  to  entering  on  these 
subjects,  I  have  the  pleasure  to  inform  you  that,  in  fulfilment  of  your 
request  at  the  last  annual  meeting,  your  directors,  on  the  26tli  October, 
1864,  presented  to  Wm.  Waterfall,  Esq.,  plate,  value  £122. 5«.,  in  token  of 
sa)preciation  of  his  long  and  valuable  services  as  manager  of  your  bank. 
The  few  pounds  expend^  in  excess  of  your  vote  will  not,  I  am  sure,  be 
objected  to  by  you,  as  we  were  only  carrying  out  the  spirit  of  your  infrac- 
tions.   In  doing  this,  we  found  it  impossible  to  limit  ourselvea  to  the 
exact  sum  named  by  you,  viz.,  one  hundred  guineas.    It  will  be  satisfac- 
tory to  you  to  know  that  the  business  of  your  bank  still  continues  its 
onward  progress,  in  spite  of  the  unfavourable  influences  of  the  late  v^ 
struggle  in  the  United  States  of  America.    As 'an  evidence  of  the  grovi^ 
confidence  of  the  public  in  your  bank,  the  money  deposits  have  hees 
increasing  during  the  whole  year,  and  they  now  amount  to  a  much  Jaz^ 
sum  than  at  any  former  period.     Keferring  to  the  increased  profit  d  fli* 
past  year,  I  would  respectfully  ask  you  to  bear  in  mind  that  the  Ur^ 
proportion  of  it  was  earned  during  the  first  half  of  the  year,  viz.,  from  Jtlj 
1st  to  December  3l8t,  18C4,  when  money  ruled  at  a  high  rate.     The  latur 
half,  from  January  to  June,  1865,  has,  in  regard  to  the  value  of  money, 
been  not  much  in  excess  of  average  years.    Please  notice  that  the  extra 
profit  of  the  latter  half  of  our  last  fiscal  year,  from  January  to  June,  1^64, 
a  period  of  high  rates,  went  into  the  accounts  of  that  year,  and  was  re- 
presented by  a  handsome  increase  of  your  reserved  fund.     You  will  observe, 
therefore,  that  if  our  fiscal  year  had  ended  Ist  January  last  instead  uf 
30th  June,  it  would  have  embraced  the  whole  year  of  high  mon^  values^ 
and  our  report  would  have  carried  a  more  showy  appearance,  as  well  as  a 
better  surface  comparison  with  other  bank  reports.    But  inasmuch  as  you 
have  the  '  substance '  you  will,  as  sensible  men,  care  nothing  about  the  mere 
*  glitter. '    I  have  read  nearly  all  the  bank  reports  published  in  the  *  Bank4 n 
Magazine*  for  the  past  six  months,  and  I  find  that  the  average  increase  of 
dividend  (growing  out  of  the  twelve  months  of  dear  money)  has  been  trom 
about  one-third  to  one-fourth  of  their  ordinary  dividends,  so  that  in  this 
respect  the  ELallamshire  Bank  compares  not  unfavourably  with  other  insti- 
tutions. And  considering,  as  before  said,  that  your  extra  profit  has  been  mads 
in  little  more  than  half  the  year,  whilst  many,  if  not  most  of  the  banks 
alluded  to  embrace  in  their  reports  the  whole  of  the  year  of  high  moner 
rates,  the  comparison  in  favour  of  the  HallanMhire  Bank  is  still  njort* 
satisfactory.    Again,  the  comparative  smallness  of  the  liabilities  ondcr 
which  your  dividend  has  been  earned  is  a  cattst  for  congratulation.     Some 
of  the  reports  I  have  read  quote  liabilities  in  several  mOlious  or  dividends 


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Sheffield  and  HaUamahire  Bank.  1143 

not  so  much  exceeding  yours  as  you  might  expect,  and  in  some  few  cases 
not  exceeding  at  all.  The  report  gives  you  a  warning  not  to  look  for 
bonuses  when  the  causes  which  produce  them  no  longer  exist,  and  there- 
fore I  will  not  further  dwell  on  the  subject,  except  to  repeat  a  reminder  I 
hare  on  former  occasions  given  to  you,  viz. :  that  if  each  of  our  share- 
holders would  interest  himself  to  bring  us  clients,  and  thereby  increcTse  our 
business  and  our  profits,  bonuses  might  become  the  normal  condition  of 
your  dividends  instead  of  an  exceptional  condition.  Let  me  ask  you  to 
tliink  of  this,  and  to  act  upon  it,  and  thus  benefit  your  own  property. 
Directors,  from  the  necessities  of  their  position,  cannot  take  a  single  step 
in  the  direction  here  indicated,  but  you  may  do  so  with  propriety.  The 
very  name  of  a  *  joint-stock  bank '  implies  a  joint  stock  in  efforts  as 
well  as  in  cash— a  united  proprietary  in  means  as  well  as  in  ends — in  help- 
ing to  create  business  as  well  as  in  sharing  profits.  One  further  remark, 
and  I  have  done  with  this  branch  of  my  subject.  Your  bank  has  no 
branches,  and  therefore  your  dividends  are  earned  without  help  from  such 
som-ces.  This  fact  may  be  ground  for  a  favourable  comparison  of  the 
amount  of  your  dividends  with  that  of  other  institutions.  Branches  have 
two  advantages :  they  furnish  an  increase  of  ordinary  banking  business, 
and  they  enlarge  the  area  for  collecting  deposits :  in  some  cases,  this  latter 
consideration  is  the  more  important  of  the  two.  The  floating  moneys  of  a 
district  are  collected  into  one  large  sum,  and  transmitted  to  another  district 
■where  it  can  be  profitably  used,  in  discounts  and  advances.  Successfully 
and  ably  used,  branches  become  unquestionably  a  valuable  adjunct  to  a 
parent  bank  ;  but  the  advantage  is  not  purchased  without  some  risk,  the 
special  nature  of  which  I  will  not  enlarge  upon,  except  to  say,  that  your 
directors  feel  that  to  watch  over  the  interests  and  doings  of  one  bank  is  as 
much  as  their  time  and  energies  can  accomplish.  Your  manager,  too, 
devoting  the  whole  of  his  time  and  activities  to  the  circumscribed  area  of 
one  bank,  can  all  the  better  probe  into  all  the  points  and  comers  of  th© 
establishment,  so  as  to  keep  everything  in  healthy  order  and  condition. 
The  reserved  fund  (called  in  your  deed  of  settlement  surplus  fund), 
as  you  will  notice,  has  again  received  a  respectable  addition  to  its 
amount,  notwithstanding  your  bonus  of  £4,580.  Taking  into  con- 
sideration all  the  elements  disclosed  in  the  figures  of  the  Hallam- 
shire  Bank  report  of  this  day — ^viz.,  amount  of  your  annual  dividends, 
and  amount  of  capital  and  of  liabilities — your  surplus  fund  is  much  larger 
than  that  of  many  banks,  whoso  reports  I  have  read,  pro  rata,  with  the 
claims  upon  it,  and  the  risks  and  liabilities  under  which  it  stands.  I  have 
a  list  before  me  of  about  thirty  banks,  including  therein  the  most  eminent 
hanks  in  England.  This  shows  to  me  that  our  liabilities,  as  compared  to 
onr  working  capital,  are  the  smallest  in  the  whole  list.  Some  of  these 
banks,  with  dividends  but  a  few  per  cents,  in  excess  of  ours,  have  liabilities 
reckoned  in  sundry  millions,  many  times  the  amount  of  our  liabilities, 
whose  surplus  funds,  relatively  with  the  possible  cljums  ux)on  them,  we 
snialler  than  ours.  When  your  surphis  fund  shall  have  reached  a  certain 
amount,  it  wiU  be  for  yourselves  ana  your  directors  to  consider  how  far  it 
is  desirable  or  necessary  to  make  continuous  efforts  for  its  further  large 
increase.  When  the  proper  time  shall  arrive,  this  subject  will  have  due 
consideration.  At  present  the  time  has  not  arrived.  It  will  probably  be 
satisfactory  to  you  to  learn  from  me,  that  a  not  inconsiderable  portion  of 
the  surplus  fund  is  invested  in  Government  securities — consols.  I  have 
now  to  draw  your  attention  to  a  very  few  words  in  this  report,  introduced 
for  the  first  time ;  and,  instead  of  waiting  for  some  one  of  the  gentlemen 
present  to  ask  for  explanations,  we  tender  them  unasked.     The  words 

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1144  Sheffield  and  Sattamshire  Bank. 

referred  to  will  be  found  in  the  second  paragraph,  and  are  these : — ^  and 
making  sititable  allowances  for  doubtful  accounts.'  The  paragr^h  ran? 
thus — '  After  paying  all  the  expenses  of  the  bank,  and  making  suitable 
allowanoes  for  doubtful  accounts,  the  net  profits  are/  drc  The  fact  of 
our  milking  deductions  from  gross  profits,  on  the  score  c^  dubious  debt.% 
is  not  new ;  the  ouly  change,  therefore,  is,  that  we  now  tell  you  of  it.  It 
must  be  apparent  to  erery  one  present  having  business  knowledge  (and 
most  of  you  as  commercial  gentlemen  have  that  knowledge),  that  out  ci 
the  thousand  accounts  in  our  ledgers,  there  must  at  all  times  be  some 
about  which  we  entertain  doubts  and  fears,  of  more  or  less  stringency,  and 
yet  they  are  not  bad  debts,  and  cannot  be  treated  as  such.  We  cannot 
call  that '  good '  which  is  '  doubtful ;'  and  we  cannot  call  the  *  doubtful ' 
'bad,'  until  they  become  so.  It  would  be  untruthful  on  our  part  to 
include  in  our  report  as  '  good  assets '  an  amount  which  we  deemed 
'doubtful;'  and,  therefore,  in  faithfulness  to  you  and  to  oorsdres, 
we  deduct  from  the  gross  profits  a  sum  to  cover  for  these  ^  doubtful 
debts.'  This  sum  is  arriyedat  by  a  careful  examination  of  every  annual 
balance-sheet.  The  name  of  each  account  is  entered  on  the  minute  book, 
with  the  amount  attached  for  which  we  entertain  'doubts.'  Such  of 
these  accounts  as  eventually  turn  out  'good,'  serve  to  take  the  place 
of  other  accounts,  that  we  believed  all  right  at  the  time,  but  upon  which 
clouds  have  afterwards  supervened.  This  frank  statement  ought  to  in* 
crease  your  confidence  in  us  and  our  report,  and  I  doubt  n^  it  will 
do  so.  The  system  now  explained  to  you  is  one  in  almost  nniversa! 
i:s9  among  the  London  banks.  We  have  copied  the  very  words  used 
in  nearly  all  the  reports  of  the  London  banks,  as  you  will  find  if 
you  read  them.  Seeing  their  openness  to  their  shareholders  on  this 
subject,  we  determined  to  copy  whkt  seemed  to  us  an  honest  frankness, 
and  I  feel  assured  you  will  like  us  no  worse  for  copying  an  example 
set  to  us  in  such  high  quarters  as  the  London  and  Westminster  Bank, 
the  Union  Bank  of  London,  and  many  others.  Besides,  we  have  nothii^ 
to  fear  or  to  conceal,  and  therefore  there  was  no  reason  why  we  should 
not  tell  you.  There  is  one  other  subject  of  much  importance  whidi  I 
should  probably  not  have  entered  upon,  but  for  the  example  whidi 
has  been  publicly  set  before  us  in  an  influential  and  highly  respectable 
quarter.  The  reasons  which  induced  that  example  operate  npon  us. 
To  disregard  it  by  a  total  silence  on  this  occasion,  might  create  a  supfo- 
sition  that  we  were  afraid  of  entering  on  the  subjects  touched  upon  in 
the  quarter  referred  to.  I  allude  to  the  cases  of  loss  and  ruin  which 
during  the  last  year  have  brought  such  deserved  discredit  on  the  manage- 
ment of  joint-stock  banks.  Ikfy  object  will  be  to  satisfy  you  that  no  fear 
need  be  entertained  of  any  such  senous  disasters  to  3rour  bank.  I  will  tell 
you,  in  some  detail,  the  regulations  by  which  we  hope  to  escape  them. 
The  enormous  PuUenger  frauds  on  the  Union  Bank  of  London,  by  whidh 
an  amount  equal  to  your  whole  paid-up  capital  and  surplus  fund  put  toge^ 
ther  was  abstracted  by  the  falsifying  of  accounts,  together  with  saodrj 
serious  defalcations  by  old  officers  of  other  banks  about  the  same  period, 
led  your  directors,  in  1860,  to  institute  the'rules  I  am  going  to  particularise. 
In  establishing  these,  they  deemed  that  they  were  fulfilling  their  duty  to 
you  as  trustees,  not  only  for  your  share  interest  in  the  Hallamshire  Bank, 
but  virtually  for  your  whole  property  which  is  at  stake,  as  well  as  for 
your  business  proq>erty  in  life,  all  of  which,  perhaps,  might  at  some  future 
period,  when  we  and  all  the  then  officials  diall  have  gone  to  our  long 
home,  be  jeopardised  by  our  disregarding  the  warnings  those  serious  cases 
ushered  forth  to  the  world.    We  doubted  no  one  and  publicly  said  so ; 

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Sheffield  and  Hallamshire  Bank.  1145 

but  our  conceptions  of  duty  were  of  an  imperative  character.    1  need  not 
say  that  the  disasters  of  the  past  year  have  strengthened  our  oonvictiona 
of  1860^  and  that  we  feel  that  we  have  done  right  in  making  ourselves 
more  thoroughly  cognizant  of  the  internal  workings  of  the  bank.     There 
was  nothing  to  prevent  us  doing  ao  before ;  but  we  were  then,  in  1860, 
more  strongly  awakened  to  its  necessity  and  to  our  duties  in  regard  to 
yourselves.    The  manager  is  not  allowed  to  make  advances  to  any  one 
without  the  written  consent  of  the  board,  as  exhibited  in  their  ^  minutes.' 
A  book  is  placed  before  us  weekly,  showing  the  state  of  every  account  in 
the  ledgers ;  and  another  book  showing  the  total  amount  of  bills  under 
discount  for  every  customer  of  the  bank.    Your  managers,  neither  past  nor 
present,  would  have  ever  thought  of  discounting  distant  paper,  as  a  bank 
manager  recently  did  so  disastrously  as  to  shut  up  the  bank ;  or  of  using  the 
bank's  moneys  for  any  purpose  whatever  unknown  to  the  directors.    Ar- 
rangements were  made  in  1860,  and  which  are  still  in  force,  for  the  periodical 
checking  of  the  balances  of  all  our  Xondon  accounts,  including  Glyn's, 
the  most  important  of  them.    A  number  of  years  ago,  the  books  of  a  bank,  I 
think  in  one  of  the  Midland  counties,  showed  tJiat  there  was  a  large  sum  in 
the  hands  of  the  London  banker.    It  was  discovered  on  investigation  that 
the  bank's  book  did  not  record  the  truth.   The  directors  had  been  deceived. 
This  circumstance,  together  with  the  Pullenger  aifair,  were  the  causes 
which  induced  us  to  establish  a  means  of  proof,  independently  of  our  own 
books,  of  the  state  of  our  account  with  Glyn,  Mills  and  Co.,  Overend, 
Gurney  and  Co.,  and  others.     The  cash  in  the  bank  is  counted  weekly  by 
one  of  the  officers  of  the  bank,  the  cash  books  added  up  by  him,  and  a 
certificate  to  this  efifect,  signed  by  the  officer,  is  presented  to  the  board 
every  Wednesday,  and  filed  away  in  private  possession  of  the  board.    The 
officer  doing  this  duty  is  changed  almost  every  week.    Once  at  least  every 
quarter  of  a  year,  two  of  the  directors  attend  at  the  bank,  before  bank 
hours,  to  count  the  cash,  no  one  in  the  bank  knowing  when  this  visit  is 
to  be  made.    In  addition  to  this,  the  cash  balance  for  each  half-yearly 
balance-sheet  is  verified  bv  being  counted  by  the  directors.    It  is  a  duty 
on  my  part  to  say,  that  this  cadi  counting  was  at  all  times  occasionally 
done  both  by  directors  and  officers  :  all  that  our  new  rules  effected  was  the 
having  it  done  every  week,  and  by  fixing  the  responsibility  on  the  person 
who  signs  the  certificate,  the  counting  by  the  directors  being  somewhat 
more  frequent  than  formerly.    The  bifis  are  taken  down  at  very  short  but 
fixed  intervals  by  two  officers  of  the  bank  and  added  up,  and  their  sum 
total  certified  by  the  signatures  of  the  persons  doing  the  work.     The  cer- 
ti^cates  are  presented  to  the  board  and  filed  away  in  Uie  ^  directors'  safe,' 
previously  havine  been  checked  with  the  weekly  balance-sheet.    As  with 
the  cash,  the  bills  were  at  all  times  taken  down  by  the  officers,  but  at 
longer  intervals.    All  the  change  we  made  was  in  the  signed  certificate, 
^d  in  having  this  important  work  done  more  frequently,  and,  instead  of 
at  uncertain  times,  at  fixed  periods.     The  deeds  of  property  held  as 
security  for  advances,  as  well  as  personhl  guarantees,  are  periodically 
call^  over  by  the  directors  from  the  security  book — a  work  that  occupies 
Gonaiderable  time  and  much  labour.    A  uiinute  is  entered  on  the  directors' 
minute  book  of  the  delivery  of  any  deeds  to  the  parties  owning  them,  and 
the  chairman's  signature  attached  to  the  entry  in  the  security  book,  cer- 
tifying of  such  delivery.    Looking  at  the  large  amount  of  property  repre- 
sented by  these  deeds,  and  for  which  the  bank  is  liable  to  their  owners, 
too  much  care  can  hardly  be  exercised  in  watching  over  their  safety  whilst 
m  the  bank,  and  in  their  dismission  from  the  custody  of  the  bank.    Some 
years  ago  we  passed  a  rule  l^at  no  officer  of  the  bank  should  have  a 


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1146  Sheffield  and  Hallunnhire  Bant. 

corrent  acoount  with  the  bank ;  the  only  exoeptioa  we  made  was  in  favour 
of  the  then  manager  of  the  bank,  Mr.  ¥^ni.  Waterfall.  ThiB  rule  was  forced 
upon  us  by  a  case  which  occurred  in  a  neighbouring  bank,  when  a  verdict 
of  '  acquittal '  was  returned  to  a  charge  of  ^  embezzlem^it/  mainly  on 
the  ground  that  the  defaulting'  officer  had  a  *  current  acoount  with  lu> 
bank,'  which  gave  an  opportunity  for  the  plea  of  a  *  quasi  permitted  over 
draught  on  that  account.'  This  was  not  the  only  ccmsequence :  the 
^  guarantee  society  '  refused  to  pay  because  the  person  was  acquitted  of 
the  charge  of  *  embezzlement ; '  and  the  officer  said,  '  Our  guarantee  is 
against  fraud,  and  of  fraud  he  is  acquitted  by  a  jury  after  a  fadr  trial/ 
I  have  been  informed  that  the  case  was  afterwarcb  oompromhied  by  the 
guarantee  society  paying  a  part  of  the  daim,  leaving,  however,  a  ood- 
siderable  sum  as  a  loss  to  the  bank.  Now,  as  most  of  your  officers  famish 
their  securities  for  honest  service  through  these  guarantee  societies,  ve 
felt  that  it  would  never  do  to  have  them  jeopardised  by  permitting  your 
officers  to  have  current  accounts  with  your  bank  ;  to  do  so  wrald,  or 
might,  have  made  their  securities  in  tiie  event  of  'fraud'  a  'sham,' 
and  not  a  *  reality : '  common  sense  indicated  the  course  your  director 
should  take  in  the  matter,  and  they  took  it.  Another  check  wfaidi  yoar 
directors  instituted  was  that  of  obliging  every  officer  in  the  bank  to  take 
a  holiday  of  three  weeks  in  every  year,  during  which  time  some  other 
officer  must  take  charge  of  his  department,  and  thereby  discover  if  any- 
thing be  wrong.  The  very  knowledge  that  such  investigation  must  ensmf 
may  prevent  *  wrong  doing,'  and  thus  save  a  character  for  life,  but  whidi 
a  supposed  immunity  from  detection  might  forfeit.  This  is  not  an  otct- 
strained  theory  of  over- jealous  minds,  as  I  will  proceed  to  show  you.  In 
sundry  cases  of  extensive  fraud  not  long  since,  it  was  observed  thai  the 
parties  never  left  their  banks  for  a  single  day  for  a  long  series  of  yearB— 
never  would  have  a  holiday,  however  pressed,  as  the  oiher  officers  had; 
and  these  frauds  were  never  discovered  till  sickness  finally  compelled  tiie 
absence  of  the  defaulting  officer,  and  some  other  person  had  to  take  to  his 
duties.  In  1860,  Mr.  Cockayne  and  myself  were  deputed  by  the  board  to 
go  to  London,  to  make  personal  inquiries  of  influential  parties  there  3» 
to  the  best  checks  that  could  bo  devised  to  preserve  banks  ftx>m  such  frauds 
as  about  that  time  had  startled  the  public.  In  almost  every  case  they  said 
that  they  thought  a '  periodical  compulsory  absence '  was  one  of  the  hesit 
'  safeguards '  a  bank  could  institute,  and  they  acted  upon  it  themselTes. 
On  the  journey  referred  to,  Mr.  Cockayne  and  I  heard  many  opinions  on 
banking  subjects,  from  gentlemen  of  high  standing  and  large  eiperieiice; 
and  your  directors  subsequently  adopted  such  of  their  suggestions,  in  a 
modified  form,  as  were  thought  to  be  applicable  to  our  case — of  a  cotmtTT 
bank  with  comparatively  Imiited  doings — hence  our  rule  of  ocnnpnlsoiT 
absence.  Our  officers  have  at  all  times  had  their  holidays;  the  only 
change  we  made  was  to  make  it  compulsory  on  every  one,  and  withcmt 
any  exception  save  one,  viz.,  ^our  late  manager,  Mr.  Waterfall.  There 
are  sundry  minw  regulations  in  force,  but  it  is  not  worth  while  occupy- 
ing your  time  with  them.  The  principal  ones  are  those  now  mentiott«i 
Ton  will  observe  that  the  rules  are  intended  as  checks  against  imch 
errors  of  judgment  as  have  recently  brought  discredit  on  directorial 
mani^^ement ;  and  also  against  sudi  frauds  as  occurred  several  jesi^ 
ago.  And  I  think  you  will  see  that  our  principal  rules,  such  as  cash  and 
bill  counting,  d^c,  are  not  unreasonable,  and  are  essentially  only  sndi  as 
^u  gentlemen  exOTcise  in  checking  your  *  cashiers'  cash  acoount,'  and 
in  demanding  a  stamped  receipt  from  your  deaxcst  friend;  neither  the 
former  nor  ^e  latter  deeming  himself  reflected  on  by  such  cash  examina- 

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Sheffield  and  Ilallafmhive  Bank,  1147 

tion,  or  such  detnand  for  a  receipt.  After  all  tliat  I  have  8aid,yotir  main 
reliance  against  fraud  must  ever  be  on  the  honesty  and  honour  of  your 
miiiiager,  and  of  the  other  officers  of  the  bank.  If  bo  minded,  an  evil- 
disp(^sed  person  could  rob  you  in  spite  of  all  oiur  checks  and  watchfulness. 
He  might  see  some  opening  which  had  not  been  protected,  as  Pullenger 
did,  and  avail  himself  of  it  accordingly.  All  your  directors  can  do,  is  to 
do  the  best  they  can.  It  seems  to  us  an  eminently  unsound  argument 
tliat  because  we  cannot  do  everj^hing,  therefore  we  must  do  nothing.  The 
contrary  we  hold  to  be  the  right  argument,  vii5.,  to  do  all  that  our  expe- 
rience, and  that  of  others  more  able  than  ourselves,  point  out  as  proper  to 
be  done,  even  if  it  should  occasionally  turn  out  ihix  our  plans  have  been 
defective  in  some  un8U8i>ected  quarter.  We  are  all  fallible  men  and  must 
remain  so  to  the  end  of  the  chapter.  I  think  it  right  most  emphatically  to 
reiterate  that,  notwithstanding  our  cash  countings  and  periodical  investiga- 
tions, we  have  never  for  one  moment  doubted  the  sterling  honesty  of  all 
your  officers,  past  and  present.  Before  entering  on  other  matter,  allow 
me  to  say  that  it  is  but  justice  to  the  parties  concerned  thus  publicly  to 
state,  that  your  united  staff  of  officers  never  worked  more  energetically 
and  harmoniously  together  than  they  do  at  the  present  time ;  and  that 
your  directors  are  perfectly  satisfied  with  the  appointments  they  have 
made.  Your  manager  has  displayed  larger  capacities  than  we  had  given 
liim  credit  for,  and  we  confidently  say  to  you,  that  the  business  of  the 
bank  will  not  suffer  under  his  management.  If  you  are  not  fatigued,  a  few 
minutes  more  may,  perhaps,  be  profitably  employed  on  a  banking  subject, 
although  not  j^ertaining  to  your  own  bank.  In  offering  the  opinions  we 
are  about  to  offer,  your  directors  would  be  sorry,  if  you  or  any  one  shoidd 
secretly  accuse  them  of  self-sufficiency.  It  would  be  an  unjust  charge.  They 
hold  their  opinions  with  all  respect  and  deference  to  the  views  of  others 
older  and  more  experienced  in  banking  subjects,  and  not  in  any  egotistic  or 
dogmatizing  spirit.  Still,  having  certain  opinions, they  think  it  to  be  their 
duty  to  lay  them  (not  before  the  public),  but  before  their  friends,  the 
shareholders  of  the  Hallamshire  Bank,  for  them  to  extract  such  oon> 
elusions  as  they  may  think  the  opinions  deserve.  Politics,  science,  and 
art  are  studied  daily,  but  how  few  think  of  studying  the  principles  of 
banking,  although  so  many  in  the  community  have  everything  at  stake 
in  banks.  Hence,  to  point  out  dangers  to  be  avoided  and  advantages  to  bo 
gained  by  an  intelligent  exercise  of  the  banking  franchise,  may  be  of  value 
to  you  our  shareholders,  whether  you  coincide  with  our  opinions  or  not. 
Everyone  is  ready  to  acknowledge  in  the  abstract  the  value  of  experience ; 
but  to  render  experience  valuable  it  must  be  well  weighed  and  applied, 
otherwise  it  is  a  tree  barren  of  fruit.  I  think  some  wholesome  lessons 
may  be  learnt  by  the  misfortunes  which  have  fallen  on  sundry  banks 
during  the  past  twelve  months,  and  on  their  unfortunate  shareholders. 
Our  comments  shall  be  oonfinecl  to  the  doings  and  misfortunes  of  three 
banks.  In  the  case  of  the  first  bank,  ruin  was  brought  on  by  the  directors 
vacating,  as  we  think,  their  express  functions,  and  allowing  them  to  be 
^i^rped  by  their  manager.  It  would  appear  from  the  reports  circulating 
at  the  time,  that  his  imperious  will,  supported  no  doubt  by  an  appearance 
of  great  prosperity  in  the  shape  of  large  dividends,  bore  down  the  firmness 
of  the  directors,  and  they  gradually  ^owed  him  to  centre  in  himself  all 
the  powers  of  the  bank,  legislative  as  well  as  executive,  without  any 
effectaal  check  on  their  part,  the  result  being  '  ruin.'  Besides  the  loss 
of  the  paid-up  capital,  a  call  has  since  been  made  of  a  large  sum  per 
sbare,  to  pay  the  debts  of  the  bank ;  the  distress  and  ruin,  and  even 
deaths,  if  the  press  speak  truly,  that  have  occurred  among  the  shareholders 


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114S  Shy:JieU  and  Sallimih.'re  Bamk. 

is  n.-nmfal  to  CLmtemplafce.    Xow,  I  lay  the  Isolt  ol  this  dreadM  slate 

of  t.  ings  on  the   *•  directors,'  not  on  the  manager.    ^aiehold&ZB  plaoe 

dire-,  tors  in  the  position  of  trustees  over  their  vhole  property,  and  they, 

and  :hey  alone,  are  responsible  to  the  shaz^oldcars  for  its  safe  castody  and 

le«rl*iniate  use.     Errors  of  judgment  tliey  may  oommit.     They  may  assent 

to  di'^^oont  and  loans,  which  turn  out  *■  loss ;'  but  so  long  as  they  honestly 

exercise  the  powers  entrusted  to  them,  for  what  they  hope  and  bdieve  ar 

the  time  to  be  for  the  good  ol  their  institutional  ahaKeholders  ought  to  be 

aii:sze*.uxLd  I  beliere  will  be  so ;  b^t  directors  hare  nor^t  tosurrec'la 

th^ir  ronctions  to  anyone,  and  it  is  a  clear  breach  ol  a  sacred  trust  to  oo 

sc.     The  directors  alluded  to,  I  think,  did  wrong  (with  good  intcnti^ia 

I  doubt  n-.>t)  in  permitting  their  mana;^er  to  exerciae  swaj,  unoontroUeil, 

orer  the  doings  and  pn>pertT  of  the  bank.    The  manager  was  appoiDted 

by  the  directors,  paid  by  them,  and  it  was  his  duty  to  them  to  do  ih>thiag 

of  a  weighty  or  essential  character,  without  their  permission  and  asscoit, 

after  .\niple  explanations.     If  the  directors  o£  the  bank  had  firmly  ▼iih- 

s:c<^  his  encrvjiachments,  the  bank  might  hare  been  saved,  and  he  slight 

hATe  been   saved,  and  might  at  this  time  have   been  a  sncceaafnl  and 

respected  c^xr  ol  the  company.    Pride  and  ambition,  I  fear,  ruined  iLi 

one,  and  want  of  firmness  and  moral  courage,  notwithstanding  good  inten- 

tioo5,  rained  the  other ;  and  both  these  t<^ether  mined  the  ahardioldez^ 

In  the  next  case  I  shall  mention,  I  am  glad  to  say,  that  the  manager  s 

ac\jji:r:ed  of  any  dictatorial  assumptions.     It  Wfipe^n  that  he   enterei 

into  s-.^me  large  discount  transactions  at  a  distance  from  his  bank,  not  ooh 

wit'..v>ut  the  sanction,  but  eren  without  the  knowledge  of  his  directozs; 

a:ii  the  discount  operations  referred  to  were  so  large,  that  on  taming  oc 

ci^.'istr.vasly,  the  bank  was  stepped  in  its  career,  and  the  bank  has  disap- 

pe^.r.vi  from  among  us.    There  has  been  no  failure  so-called,  but  sob^ 

1i:l1v^  1c«3s  I  have  undentood,  will  accrue  to  the  sharehnJdffn.    j^eie,  again, 

the  Jii\cctors  were  alone  to  blame,  as  we  respectfully  eonoeiTe.    Ahhoo^ 

they  m^T  not  have  given  written  permiasian  for  the  manager  to  use 

the  bjuik's  money  without  their  consent,  I  cannot  doubt  he  had  a 

tacit  pemissvui  to  do  so  ;  possibly,  sQence  oa  other  tnnsacticos  of  a  lib 

kin.!,  though  not  poriiapB  to  such  an  extent,  may  hare  been  doemed  asaeaL 

His  instructions  on  entering  upon  his  duties  should  have  contained  a 

direct  prohibition  against  his  undertaking  any  large  disooiant,  or  uy 

other  large  money  transactaons,  withoot  the  wiittea  omawnt  of  the  bond, 

as  exhibited  in  their  minute  book.    To  allow  a  snboniinaie,  whaterff 

may  be  his  character,  boBUMSs  jud^naent,  and  good  intentions,  such  n- 

limited  poarers  as  that  a  bank  may  be  rained  any  day,  without  the  know- 

led^^  of  the  directors,  is  a  grass  depsxtoiv  from  oomman  sense,  and  a 

grave  dereliction  ol  duty,  ss  «e  think,  on  the  part  of  the  directors.    la 

both  the  foregoing  esses,  yon  will  obserre^  I  blame  only  the  direcias 

whi>,  in  onr  view,  were  the  ensfntisl  csnse  ol  the  disasters.    I  will  wt 

blame  the  managers;  they  bodi  might,  and,  I  think, did  reaUy  inteni 

velU  but  they  were  allowed  to  aet  without  that  saSegoazd  which  SqIobiob's 

worxis  sanction,  '  in  the  multitude  ol  oounsellois  then  is  safety.'     Tbe 

board  ol  directoxs  should  hare  been  *  the  council  ol  safety ; '   the  very 

purpose  for  which  'boards '  are  appointed    II  this  be  not  the  fnnctios 

ol  a  ^  board '  I  know  not  what  their  functions  axe :   and  shardnldo^ 

might  as  well  dispsMe  with  them,  and  '^ect '  their  managSES  with  foil, 

absolute,  and  sole  powen.     In  the   fiist-meationed  esse,  the  dixertois 

would  seesa  to  have  been  frightened  out  ol  their  duties ;  and  in  that  d 

the  second,  the  board  were  not  stringoit  enoui^  in  the  eserase  ol  their 

dnty;  pohaps  I  should  be  nearer  the  tmth  if  I  supposed  they  did  not 


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Sheffield  and  Raliamshire  Banh  1149 

realise  the  extent  and  imi)ortance  of  directorial  control.  It  is  hardly 
needful  for  me  to  say  that  all  my  remarks  are  general,  and  have  no  appli- 
cation to  ourselves.  Your  board  knows  its  duties  too  well  to  fall  into 
the  errors  of  either  the  one  or  the  other  of  the  before-mentioned  banks  ; 
and  your  managers,  past  and  present,  know  equally  well  the  value  of  half 
a  dozen  independent  and  unbiassed  opinions  on  any  subject,  to  wish  to 
Bet  them  aside  ;  they  would  not  do  it  if  they  could — they  never  did  do  it. 
My  whole  object  in  these  remarks  is  to  satisfy  you  that  the  Hallauishire 
Bank  is  not  likely  to  split  on  the  rocks  on  which  have  been  wrecked  the 
banks  referred  to.  The  only  other  banking  misfortune  to  which  I  will 
allude  is  that  of  a  bank  which  suddenly  collapsed  not  long  ago.  Again, 
the  evil  was  caused,  as  we  think,  by  the  fault  of  the  directors,  but  in  a 
different  way  from  the  last-mentioned  two  instances.  In  this  case  the 
directors  had  appointed  one  of  their  number  to  the  position  of  w^hat  is 
called  a  *  managing  director.'  Now,  we  unhesitatingly  admit  that  there 
are  some  banks  and  some  institutions  whose  special  circumstances  require 
the  aid  of  one  or  more  managing  directors.  Excluding,  however,  such 
exceptional  cases,  our  opinion  is,  that  this  sort  of  bank  arrangement  is, 
in  ordinary  Ccises,  objectiouable  and  pregnant  with  evil.  From  the 
moment  that  the  managing  director  takes  his  seat  as  such,  the  other 
directors  are  apt  to  feel  less  called  upon  to  master  the  details  that  come 
before  them  ;  they  insensibly  become  more  easeful,  and  more  and  more 
rely  on  the  managing  director  for  seeing  that  all  things  are  right,  until 
finally,  by  imperceptible  degrees,  even  it  may  be  unknown  to  themselves, 
the  other  directors  become  ciphers,  and  the  managing  director  becomes 
the  sole  depository  of  bank  knowledge,  which  ho  may  give  out  to  his 
easy  colleagues  in  such  portions  as  he  thinks  fit,  or  none  at  all  if  he 
prefer.  Here,  again,  you  have  the  embodiment  of  a  great  mistake,  as  we 
think ;  a  bank  governed  essentially  by  one  man,  one  mind,  one  judgment, 
without  any  real  check  or  control.  It  may  be  that  he  may  turn  out  a 
manager  after  the  model  of  the  first-mentioned  case,  but  imder  another 
name.  He  may  do  ill  or  he  may  do  well ;  but  the  separate  and  indepen- 
dent opinions  of  the  directors,  as  such,  are  gone,  and  for  all  the  puri>oseB 
of  control  and  guidance  the  managing  director  might  as  well  be  alone  ;  but 
this  is  not  all  the  evil.  From  the  moment  a  managing  director  is  ap- 
pointed, the  *  manager  proper '  essentially  becomes  an  inferior  oflicer, 
notwithstanding  his  name.  The  managing  director,  if  he  so  wills  it,  may 
become  the  real  manager,  and  the  manager  in  name  must  either  do  and 
follow  as  directed,  or  his  place  will  soon  become  vacant ;  he  will  be  fretted 
till  ho  resigns ;  and  hence  that  important  check  upon  the  directors  them- 
selves, which  an  honest  and  high-minded  manager  furnishes,  becomes  lost 
to  the  shareholders.  I  have  come  to  the  conclusion  that  the  system  of  a 
*  managing  bank  director'  may  be,  in  designing  hands,  a  pernicious  oje, 
and  in  any  hands  an  unwise  one.  Speaking  for  myself  individually,  I 
vould  not  sit  at  any  bank  board  where  there  was  a  maujiging  director, 
^ow,  what  happened  at  the  bank  I  refer  to  ?  At  a  recent  nieetmg  it  was 
decided  to  put  the  bank  in  liquidation ;  the  paid-up  capital  gone,  be- 
sides a  large  sum  to  be  made  up  by  the  shareholders,  the  manager  proper 
having  borrowed  a  very  considerable  sum  of  money.  Books  miserably 
kept— a  handsome  dividend  declared  not  long  before; — the  managing 
tlirector  said,  in  effect,  that  he  did  not  know  how  it  was,  and  I  have  no 
doubt  he  was  honest  and  spoke  the  truth,  his  supreme  management  not 
having  been  effective.  The  other  directors  knew  nothing  whatever,  they 
relied  on  the  managing  director — but  in  result  the  bank,  as  such,  is  de- 
funct.   Rely  upon  it,  gentlemen,  the  only  proper  and  safL*  course  for  a 


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1150  Nottinghaimhire  Banking  Company. 

bank  is,  for  every  director  to  know  eyerjrthiiig  about  his  bank,  to  act  and 
to  think  for  himself,  and  not  to  delegate  hia  duties  and  responsibilitiea  to 
another.    As  a  hypothesis,  and  nothing  more,  I  would  ask— suppose  a 
managing  director  and  the  manager  were  to  oollude  togetiier,  instead  <A 
quarrelling,  would  the  easy-going  silent  directors  be  any  dieck  to  this  I 
Unchecked  power  over  millions  should  be  given  to  no  one,  no  matter  whas 
his  charactcor  or  standing.    In  conclusion,  what  has  been  now  said  to  yt« 
is  but  the  expression  of  the  unanimous  opinions  of  your  board.     Tbcy 
were  desirous  that  you  should  have  the  fullest  information  regarding  the 
state  of  your  bank,  not  only  in  the  figures  as  represented  in  the  r^wrt, 
but  in  the  general  rules  under  which  your  bank's  affiurs  are  adminiaicnd. 
They  wish  to  impart  to  you  that  confidence  they  themselvea  entertain  <i 
the  safety  and  soundness  of  your  institution,    llie  only  opportunity  ihsj 
have  of  placing  before  you  such  information  as  my  address  has  embodied 
is  on  these  annual  occasions.    I  am  aware  it  is  not  very  usual  to  say  fo 
much  as  your  directors  have  done  this  day  through  me,  but  there  i«  so 
sound  reason  why  we  should  follow  the  customs  of  others  to  the  limiting 
of  our  observations  to  you.     I  have  but  followed  the    request  ol  my 
co-directors  in  going  into  matters  at  such  length.    If  any  of  you  ?:3- 
tlemen   can  suggest  any  improvements  in  our  regulations,  we  shall  be 
glad  to   give    your    suggestions    a  candid  consideration.     We  are  sci 
immoveably  wedded  to  our  opinions ;   we  are  not  above  receiving  is- 
struction,  come  from  what  quarter  it  may.    Working  details  of  hel 
management  are  in  a  great  measure  a  sealed  book,  even  to  those  sj^ 
interested  in  them,  viz.,  shareholders.    As  to  the  public  generally,  tber 
are  indifferent  to  them ;  and  were  they  otherwise,  it  would  be  diSR-oh 
for  them  to  find  ready  sources  of  information.     For  your  ^wdi^  ^ 
vantage,  we  have  in  some  measure  lifted  up  the  veil,  by  ahowc^.rs 
the  more  important  of  the  rules  which  are  being  faithfully  canif^  *^ 
at  the  Hallamshire  Bank.    Tou  will  observe  that  we  have  not  spe^  '^ 
own  brotherhood  of  directors.    It  is  our  opinion,  that  in  nine  cases  «flt  "^ 
ten  the  causes  of  bank  disasters  of  a  ruinous  character  may  be  tne^  ^^ 
the  *  board  of  directors ;  *  either  from  defective  regulations,  or  waist  I 
vigilance  and  firmness  in  carrying  them  out,  or  from   not  seeing  y.*w3 
sufficient  clearness  their  weighty  responsibilities  to  their  ahareholdeTs/' 


NOTTINGHAMSHIRB  BANKING  COMPANY— MOORE  AND 
ROBINSON. 

At  a  general  meeting  of  the  shareholders  of  this  company,  held  <m  t V 
28th  July,  at  the  George  Hotel,  Nottingham,  it  wcs  unanimously  leeolrt^u 
to  convert  the  bank  into  a  limited  company  :  and  for  the  purpose  of  ex- 
tending the  operations  of  the  bank  it  was  also  resolved  to  create  ^S^ 
new  shares  of  £3  each,  of  which  10,000  are  to  be  offered  to  the  present 
shareholders  in  the  proportion  of  one  new  share  for  three  original  ones,  *: 
a  premium  of  £1.  Xts.  per  share :  a  second  10,000  are  to  be  offered  to  cn«- 
tomers  at  a  premium  of  £2. 10s.  x)er  ^are ;  and  the  remaining  10,000  sro 
to  be  held  in  reserve  for  future  decision.  The  premiums  on  the  ncwsban* 
are  to  be  added  to  the  reserve  fund,  which  it  is  intended  to  increase  v* 
£100,000. 


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1151 


LLOYDS'  BA^KING  COMPANY,  LIMITED. 

The  purchase  by  tliis  company  of  the  banking  business  of  Messrs.  Philip 
and  Henry  WUlianis,  of  Wednesbury,  was  ratified  at  a  meeting  of  share- 
holders held  in  Birmingham  on  the  7th  August.  The  premium  on  the 
shares  already  applied  for  would  be  equivalent  to  the  goodwill.  Mr.  Henry 
Williams  will  have  a  seat  at  the  board  of  directors.  The  bank  of  Messrs. 
Philip  and  Henry  Williams  was  one  of  the  oldest  in  the  midland  counties, 
and  it  continued  to  retain  its  position  and  connections  in  the  face  of  very 
sharp  competition  raised  by  the  joint-stock  companies.  The  tendency  in 
the  midlands  is  for  all  banking  business  to  fall  into  the  hands  of  joint- 
stock  companies.  In  Birmingham  and  the  neighbourhood  four  private 
banking  firms  have  been  merged  into  joint-stock  companies  within  a  few 
months — ^Attwoods,  Spooner,  and  Marsh  alls'  business,  after  the  failure, 
went  to  the  Birmingham  Joint-Stock  Bank  ;  and  now  the  three  firms  of 
Lloyds  and  Co.,  Moilletts  and  Co.,  and  Philip  and  Henry  Williams,  form 
one  limited  liability  company.  There  are  other  instances  of  the  same 
tendency  in  other  parts  of  the  district. 


CONVERSION  OF  THE  TUEKISH  DEBT. 

Tri  details  of  the  conversion  and  unification  of  the  internal  debts  of  the 
Ottoman  Empire  have  been  published.  The  operation  is  to  be  proceeded 
with  simultaneously  at  Constantinople,  London,  Paris,  Amsterdam,  Frank- 
fort,  Alexandria,  Vienna,  Turin,  Genoa,  and  Brussels.  The  arrangements 
appear  to  be  in  every  point  satisfactory,  and  the  coupons  will  be  payable 
at  the  Imperial  Ottoman  Bank  at  Constantinople,  London,  and  Paris,  on 
presentation,  except  the  special  coupons  relating  to  the  arrears  of  interest 
on  the  ten-years  Serghis,  due  January  and  July,  186C,  which  will  be  paid 
on  their  respective  due  dates.  In  order  to  facilitate  the  operation  of  the 
conversion,  and  to  avoid  the  necessity  of  issuing  provisional  certificates 
and  sending  the  original  bonds  for  verification  to  Constantinople,  the  Im- 
perial Ottoman  Government  has  appointed  verificators  to  attend  at  London 
and  Paris,  besides  the  commissioners-delegates,  during  the  whole  period 
appointed  for  the  conversion,  to  verify  the  bonds  tendered  for  conversion. 


STANDARD  BANK  OF  BRITISH  SOUTH  AFRICA. 

The  following  circular  has  been  issued  by  the  directors  of  the  Standard 
Bank  of  British  South  Africa,  on  the  subject  of  the  depreciation  of  the 
shares  in  that  establishment : — 

^  Sir,— In  oonseqaenoe  of  the  immense  depreciation  in  the  market  value 
of  the  shares  of  this  company,  a  depreciation  wholly  unwarranted  by  any 
ofSdal  information  which  has  reached  us  up  to  the  last  advices  from  the 
Cape,  I  am  instructed  by  the  directors  to  communicate  to  you  the  following, 
being  the  latest  intelligence  to  hand  regarding  the  accounts  of  the  com- 
pany : — 


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1152  Eevietcs. 

"  The  bank's  general  manager,  writing  from  Port  Elizabeth,  where  t'lw 
commercial  crisis  has  been  chiefly  experienced,  states,  that  having  Ccirc- 
fully  scrutinised  all  the  bad  and  doubtful  debts  at  that  branch,  he  esti- 
mates our  losses  there  at  £20,400. 

"  From  Natal,  where  the  crisis  has  also  been  very  severe,  the  manrvL:-: 
reports  £100  will  cover  his  loss,  although  the  business  transacted  thert  by 
the  Standard  Bank  has  been  very  considerable. 

*'  Satisfactory  reports  have  likewise  been  received  from  Cape  Town  aii  I 
the  other  large  branches  of  the  company ;  and  the  chief  manager  of  tit 
Orange  Free  State  branches  (where,  consequent  on  the  action  of  the  V-.-^ 
Government,  preparations  had  been  made  for  withdrawal  previous  t^  t  ^ 
outbreak  of  hostilities)  reports  that  '  at  Bloemfontein  and  Fauresmith  L 
does  not  think  our  interests  will  much  suffer ;  but  at  Suiithfleld,  the  >..■: 
of  war '  (where  the  bank  has  a  small  agency),  he  states — *  we  may  pre^  m^ 
ourselves  for  some  loss.'  This  agency  had  only  a  credit  of  £10,000,  ali- 
as the  business  had  been  contracted  prior  to  the  outbreak  of  hoetili  li- 
the loss  can  only  be  small. 

"  If  the  directors,  therefore,  take  twice  the  reported  losses,  or  siy 
£40,000,  in  all  to  cover  any  additional  losses,  they  trust  that  they  vS 
then  have  provided  for  all  the  losses  of  the  bank  according  to  the  inform..- 
tion  which  has  yet  reached  them. 

"  The  directors  much  regret  these  heavy  losses,  but  there  stands  at  d. 
credit  of  reserve  fund  £56,000,  and  at  credit  of  net  profits  for  the  ha^- 
year  ending  30th  June  last,  £23,000,  making  in  all  £79,000,  which,  d^u.-:- 
ing  the  estimated  losses,  will  leave  the  capital  of  the  bank  intact,  aai ' 
balance  at  the  credit  of  reserve  fmid. 

"  In  the  event  of  any  further  intelligence  of  sufficient  importance  hex, 
received  before  the  next  ordinary  general  meeting  in  October,  titfi*-- 
will  be  communicated  by  circular  to  the  shareholders. 

"I  am,  Sir,  your  very  obedient  servant, 

«  W.  F.  Seaulz,  Seas^xT:. 

"  The  Standard  Bank  of  British  South  Africa,  Limited, 
90,  Cannon  Street,  London,  August  25." 


^icbictos. 

Tables  for   calculating  Interest  07i  Deposit  Bcccipt$.     'By  HKjntT  Jo>- 
Hamilton.      Ward  &  Co.,  Belfast. 

These  tables  have  been  worked  for  the  purpose  of  calculating,  alm^t  :* 
glance,  interest  on  deposit  receipts  of  the  Provincial  Bank  of  IreLmd,fi 
the  1st  January,  1862,  to  the  31st  December,  1871.     The  calculations  :-' 
based  upon  the  rates  of  interest  allowed  from  time  to  time,  but,  of  a-: 
the  same  principle  would  be  applicable  to  any  other  bank,  allowance  Uc^. 
made  for  the  difference  in  the  interest.    The  construction  of  the  tahJt■^  •• 
very  simple,  and  will  enable  any  person  to  calculate  interest  as  easily  .•- 
the  discount  on  a  bill. 


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1163 
Ccmmunicalions. 

To  the  Editor  of  the  "  Bankers'  Magazine."   . '      '   ' 
LIMITED  LUBILITY. 

Dublin,  August  8th,  1865. 

Sib, — ^I  have  been  requested  to  submit  to  your  decision  a  question  on 
the  subject  of  "  Limited  Liability,"  which  has  been  the  occasion  of  con- 
siderable discussion. 

The  commonly  received  notion  is  that  in  a  limited  liability  company 
each  shareholder  is  liable  only  to  the  extent- of  the  shares  which  are 
registered  in  his  own  name.  Now  it  is  alleged  that,'  in  virtue  of  a  recent 
decision,  his  liability  goes  much  farther;  that  if  the  company  should 
become  bankrupt,  and  some  of  the  shareholders  should  be  tmable  to  pay 
up  the  full  amount  of  their  shares,  the  solvent  shareholder  is  bound,  in 
proportion  to  the  number  of  shares  he  holds,  to  make  good  their  defi<^en- 
cies.  Take,  for  example,  the  case  of  a  joint-stock  bank,  limited,  with  £60 
ftliares,  £10  paid  up.  Let  it  be  supposed  that  I  have  ten  shares  in- that 
bank.  According  to  the  common  notion  of  "  Limited  Liability,"  I  cannot 
be  held  liable  under  any  circumstances  for  more  than  £500.  But  if  the 
alleged  decision  be  upheld  such  a  notion  would  be  very  erroneous  indeed. 
It  is  possible  the  bank  might  be  unsuccessful  in  business,  and  that  in 
order  to  meet  its  liabilities,  it  might  be  necessary  to  call  in  the  whole  of 
its  capital.  It  is  also  possible  that  many  of  the  shareholders  should  be 
unable  to  meet  this  call.  In  such  a  case  it  is  affirmed  that  I  should  be 
obliged  not  only  to  pay  up  the  full  amount  of  my  own  shares,  but  also  to 
make  good  a  certain  proportion  of  the  deficiency.  In  other  words,  the 
whole  capital  of  the  company  must  be  available  to  pay  .the  debts  of  the 
company,  and  if  any  shareholder  cannot  pay  his  proportion  of  the  capital, 
the  other  shareholders  must  pay  it  for  him. 

You  will  much  oblige  a  large  section  of  your  readers  if  you  can  say 
whether  this  decision  has  been  given,  or  whether  the  principle  on  which  it 
rests  is  good  in  law. 

Bak&eb. 

[We  have  never  heard  of  such  a  decision,  nor  are  we  aware  of  anything 
in  the  <<  Limited  Liability  Act"  which  could  justify  it.] 


PRACTICE  WITH  REGARD  TO  CHEQUES. 

15th  August,  1865. 
Sib, — I  beg  the  favour  of  your  opinion  upon  the  following  < 


A  cheque  drawn  on  branch  A.  is  presented  for  ^yment  at  branch  B., 

where  the  payee  has  an  account.    He  takes  part  in  cash  and  places  the 

remainder  to  his  credit.    The  dieque  is  returned  by  A.  with  the  answer 

**  refer  to  drawer."    The  payee  now  seeks  to  recover  the  amount  from  his 

VOL.  XXV.  87 


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1154  Communications. 

banker^  objecting  to  its  being  deducted  from  his  account,  and  alleg^ 
(through  lua  soUcitor)  that  the  fact  of  the  cheque  being  cashed  by  a 
branch  bank  ia  equal  to  its  being  duly  honoured,  and  the  banker  has  no 
right  to  return  it. 

NoWy  I  want  to  know  if  any  case  can  be  quoted  where  cDstom  wodd 
aanction  such  a  proceeding,  or  whether  there  is  any  legal  point  in  wliidi 
the  payee  can  support  his  claim. 

Tour  obedient  serrant 
Y., 

£¥e  are  not  aware    of  any   such   case  having  been  the  subject  of  a 
cial  decision ;  we  cannot,  however,  see  on  what  grounds  the  daim  can 
be  supported.] 


One  more  question — 

A  cheque  ia  drawn  on  a  London  banker  pi^able  to  ''Ko.  14,936  or 
bearer,"  and  crossed  '*  to  the  order  of  A.  B."  la  it  necessary  to  demaiui 
the  endorsement  of  A.  B.  ? 

T. 

[No ;  the  cheque  having  been  originally  issued  to  **  bearer"  is  ixK 
limited  by  endorsement.] 


CHEQUES  DRAWN  PROM  ABROAD. 

Sib, — ^Will  you  inform  me  whether  a  cheque  drawn  in  Paris  on  alitti* 
in  England  should  bear  a  penny,  or  an  ad  visdorem  stamp,  or  botk;  s^ 
if  it  would  make  any  difference  in  this  respect,  if  the  dieque  **[*[{ 
direct  to  the  bank  by  the  drawer,  or  had  passed  throu|^  otbff  ki»* 
before  reaching  it. 

Yours  obediently, 
August,  1865.  EirQUitt^ 

[All'^cheques  drawn  abroad  require  an  ad  valorem  stamp  idieQ  preiA^ 
lor  payment  in  England.] 


BANK  AND  OTHER  AMALGAMATIONS. 

Manchester  and  Liverx>ool  District  Bank, 

Manchester,  August  28th,  1865. 

Si»,-~In  the  article,  entitled  **  Overcnd,  Gumey  and  Co.,  Limited,"  wia« 
appears  in  your  publication  for  this  month,  the  following  passage  ocean  :— 

"  Going  into  the  provinces,  we  find,  among  many  others,  that  Lloyuj 
Entwistle  and  Co.,  of  Manchester,  have  gone  into  one  limited  companj,*^ 

I  beg  to  inform  you  that  the  business  of  Messrs.  Lloyd,  Entwistle  tfw 
Co.,  in  consequence  of  the  failing  health  of  some  of  the  partnex^  v« 
sold  to  this  bank,  which  has  not  adopted  the  principle  of  limitt'^ 
liability  or  privilejje,  under  certain  circumstances,  of  not  paying  its  debts  to 
the  full  extent  of  its  means. 

I  request  that,  in  your  next  publication,  you  wiU  correct  the  abore 
error,  which  is  likely  to  be   injurious,    as   the  most  valuable  class  « 


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1155 

depositors— Vis.y  thai  which  puts  its  reserves  of  income  into  banks  for 
safe  custody  rather  than  to  make  large  interest — ^is  well  aware  that  banks 
like  this,  constituted  under  the  Act  7  Qoo.  IV.,  c.  46,  are  better  security 
for  money  deposited  than  those  established  under  the  Limited  Liability 
Act,  I  am,  Sir, 

Tour  obedient  servant, 

Thomab  Cookb, 

Managmg  Director. 


BANKING  OBITUARY. 


J'une  22. — ^At  Ootacamund,  Neilgheny  Hills,  Mr.  Charles  Anthony 
Johnston,  late  accountant  of  the  Madras  Sayings'  Bank  and  Treasury 
aged  57. 

August  7. — ^At  Yinkwall,  Robert  Easton,  Esq.,  banker. 

August  8.— At  4,  Westboume  Road,  Forest  Hill,  Mr.  Thomas  Tibbs,  late 
of  the  London  and  Westminster  Bank,  in  his  87th  year. 

August  10. — ^At  181,  Albany  Road,  Camberwell,  Mr.  James  Payne,  for 
53  years  in  the  Bank  of  England,  aged  78. 

August  10. — ^At  Aberdeen,  Mr.  Alexander  Balfour,  of  the  Bank  of 
Engird,  aged  67. 

August  11. — ^At  his  residence,  Claremont,  Manchester,  Sir  Benjamin 
Heywood,  Bart.,  banker,  of  Manchester,  in  the  73rd  year  of  his  age. 

August  17. — ^At  Clifton,  James  Lloyd,  Esq.,  of  Birmingham,  banker, 
aged  59. 


MERCANTILE  SUSPENSIONS. 


The  only  suspensions  announced  during  the  month  of  August  were  the 
following : — 

Messrs.  F.  W.  Parker  k  Co.,  Carlisle,  manufacturers. 

Mr.  Baldwin  von  Battels,  London,  South  American  trade. 

Messrs.  Kitchum,  Son  dc  Co.,  New  York,  bankers. 


MONTHLY  CHRONOLOGY. 


August  3. — ^The  directors  of  the  Bank  of  England,  at  their  weekly  board 
meeting,  made  a  further  advance  in  the  rate  of  discoront  from  3i  per  cent., 
at  whidi  it  was  fixed  on  the  previous  Thursday,  to  4  per  cent. 

'4.— Suspension  announced  of  Messrs.  F.  W.  Parker  i  Co.,  manufacturers, 
of  Carlisle. 

5._-Stoppage  of  Mr.  Baldwin  von  Bartels,  of  Pinner's  Court,  Old  Broad 
Street,  in  the  South  American  trade,  with  £70,000  liabilities. 

17.— Return  of  the  Great  Eastern  steamer  to  Crookhaven,  bringing 


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1156 

intelligence  of  the  failnre  in]  Buccessfully  laying  the  Atlantic  telegraph 
cable. 

28. — ^Intelligence  received  of  the  snspension  of  Measra.  Kitchnm,  Son, 
and  Co.,  bankers,  of  New  York,  said  to  have  been  caused  by  the  disooTery 
of  extensive  iAsues  of  forged  gold  certificates  and  abstraction  of  f nnds  and 
securities  by  Mr.  Edward  Kitchum,  one  of  the  partners — the  amount  of 
defalcation  being  variously  estimated  at  from  two  and  a  half  to  five 
millions  of  doling,  involving  in  losses  several  bankers  and  brokers.  The 
defaulting  partner  is  further  said  to  have  left  the  city  with  60,<XN) 
dollars  of  the  abstracted  funds  in  his  possession. 


BANK  MOVEMENTS. 


The  London  and  South  Western  Bank  have  removed  their  head  office  to  Etet 
India  Avenue,  Leadenhall  Street ;  the  late  head  office  in  Regent  Street  trill  in 
future  be  the  Wcfit-end  branch. 


It  is  announced  that  Mr.  George  Henry  Briant,  manager  of  the  Eiidt«^ 
Joint-stock  Bank  at  Guildford,  has  been  appointed  manager  of  the  Nottinynw 
Joint-stock  Bank. 


It  is  announced  that  the  old  and  respectable  private  bank  of  Messrs.  FliiSp  aai 
Henry  Williams  has  agreed  to  amalgamate  with  Lloyd's  Banking  Conpu}*. 
Limited,  of  Birmingham. 

Swansea  Savings  BAiac.«~During  the  half-year  ending  the  20th  oflbf^ 
this  bank  received  in  deposiU  £22,319.  19«.  Id,,  also  interest  from  wbb«1 
Debt  Office,  £2,851.  18/.  2d.,  and  transfers  from  other  savings  banks,  £48.1^^ 
The  repayments  to  depositors  reached  £19,661.  ISs,  6tf.,  and  the  truufen  tn 
Post  office  and  other  savings-banks  only  amounted  to  £320.  9s,  8d.,  which  rfw 
^'at  confidence .  is  felt  in  Sm  raamu^ement  and  stability  of  the  old  bask.    T^ 
expenses  of  management  for  the  hau-year  were  £237  ;  and  the  balances  oi  tbe 
20th  of  May  stoodas  foUowsW Inyested  in  National  Debt,  £179,553.  17*.  lOi; 
separate  surplus  fund,  £1,700 ;  Glamorganshire  Banking  Company,  £l,73d.ei:  H; 
making  a  total'of  £182,992;6j,  7<f.,  as  compared  with  £177,987.  7#.  lid.  on  tte 
20th  November,  1864,  being  an  increase  of  £6,004.  18/.  8rf. 


FixsBURT  AKD  Cftt  OP  LoNDOx  Savisos  Ba»k,  76,  Cheapside  and  Cleikcn- 
i'T?^®™*"*^®"**^  this  institution  held  their  half-yearly  meetingjin  thf 
28ih  July,  at  the  office  in  Cheapside ;  Mr.  R  Morland  in  the  chair.  The  ac- 
counts Of  the  official  auditor,  Mr.  S.  Lovelock,  to  the  31  st  of  May,  were  pnsenad 
and  approved.  The  statemento  showed  an  increase  over  the  last  year  in  tl* 
number  of  the  new  accounts  ;  that  the  amount  transferred  from  the  Post  Office 
and  other  banks  to  this  bank  had  been  nearly  double  the  amount  transfemd  P> 
them,  while  the  numbers  had  been  nearly  equal ;  and  that  the  capital  of  the 
DanJt  had  been  increased  bv  the  sum  of  £11,652.  9/.  lOrf.  since  the  last  roeetin?. 


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1157 


gofts  of  l^e  W^ani^. 

Hampshire  Bankihg  Coj^tpakt.  ^We  pablish  in  our  colamns  the  thirty-first 
annual  report  of  the  directors  of  this  company  made  to  the  shareholders  on  the 
1st  August,  and  we  refer  with  pleasure  to  the  successful  progress  the  company 
is  making,  proving  that  the  extension  of  its  operations  durmgthe  past  few  years 
was  the  result  of  sound  judgment,  and  must  be  very  encouraging  to  the  snare- 
holders.  The  profit  of  the  year's  business,  after  paying  the  current  expenses, 
&c.,  amounts  to  £26,400.  5s,  lOd.^  sufiicient  to  pay  the  usual  dividend  or  10  per 
cent,  per  annum,  as  well  as  the  annuities,  and  a  bonus  of  7«.  per  share  on  the  old 
and  new  shares,  thus  yielding  a  very  handsome  dividend  to  the  proprietors. 
The  able  general  manager,  Mr.  Atkins,  retires  from  the  more  active  duties  of 
the  bank,  and  now  fills  the  office  of  a  director,  and  is  succeeded  by  Mr.  Thomas 
Keeping  and  Mr.  Richard  Legg.  The  shareholders  marked  their  special  appre- 
ciation of  the  long  and  valuable  services  of  Mr.  Atkins  by  voting  him  a  retiring 
Allowance  of  £500  per  annum.  Cordial  votes  of  thanks  were  given  to  the 
chairman  and  board  of  directors,  to  the  managers,  and  other  officers  of  the  estab- 
lishment, for  their  attention  to  the  interests  of  the  company.  After  the  annual 
Soeral  meeting  of  the  shareholders  had  taken  place,  and  the  appointment  of 
r.  Atkins  as  a  director  had  been  confirmed,  a  very  gratifying  expression  of 
feeling  was  evidenced  towards  him  by  the  presentation  of  a  handsome  epergne 
as  a  mark  of  esteem  and  respect,  from  the  whole  of  the  staff  of  this  now  li^o 
county  establishment.  We  cannot  but  admire  the  desire  that  prompted  such  a 
graceful  act,  which  must  indeed  have  been  most  welcome  to* the  late  manager  after 
such  a  long  and  successful  career  with  many  of  those  who  thus  express  their 
pleasure  in  being  associated,  and  who,  we  imagine,  were  the  first  to  congratulate 
niin,  upon  his  appointment  as  a  director. — Hampshire  Independent, 

Rochdale  Fropbrty  akd  Gbnbral  Finance  Courxsr,  LnnTED. — At  the 
iirst  annual  general  meeting  of  shareholders,  held  at  Bochdale,  on  the  31  st  July, 
Mr.  Handley  in  the  chair,  the  following  resolutions  were  unanimously  adopted; 
—That  the  balance-sheet  and  report  do  pass. — 'The  directors'  report  declared  a 
dividend  of  10  per  cent.,  leaving  a  balance  equal  to  14  per  cent,  to  be  placed  in 
reserve.  The  statement  of  accounts  up  to  the  30th  June,  1865,  showed  that 
ditcr  paying  the  current  and  one-fifth  of  the  formation  expenses,  and  providing 
for  the  rebate  of  interest  on  mortgages,  bills,  &c.,  not  yet  matured,  there  re- 
mained for  disposal  a  sum  equal  to  over  24  per  cent.  During  the  past  year  the 
directors  state  they  have  had  various  investments  and  projects  before  them, 
some  of  which  have  been  secured.  A  plot  of  land  has  been  leased  at  Deamley, 
on  which  it  is  the  intention  of  the  Board  to  erect  a  number  of  cottages,  which 
are  said  to  be  in  great  demand.  Hitherto,  however,  the  building  department 
has  had  to  give  way  for  a  more  lucrative  business,  money  on  mortgages  being 
in  great  demand.  It  was  resolved  that  the  number  of  directors  be  reduced  to 
eight  for  the  ensuing  year,  and  that  the  share  list  be  re -opened  and  the  public 
charged  28,  Gd,  per  share. 


TENDERS  FOR  BILLS  ON  INDIA. 

The  biddings  for  bills  on  India  took  place  on  the  2nd  August  at  the  Bank 
of  England.  The  proportions  allotted  were — to  Calcutta,  Rs.  16,35,000 ; 
to  Madras,  Rs.  20,000 ;  and  to  Bombay,  Ra.  10,00,000.  The  minimum 
price  was  as  before.  Is.  lO^d,  on  Calcutta  and  Madras,  and  Is.  10}(2.  on 
Bombay.  Tenders  on  Calcutta  and  Madras  at  Is.  llfd.  will  receive  about 
75  per  cent.,  and  on  Bombay  at  Is.  Hid.  about  70  per  cent.    Further 


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1158  Extraordinary  American  Defalcations. 

biddings  took  place  on  the  16th  Angnst.  The  propoiiioos  allotted  i 
to  Calcutta  16,93,000  rapees,  to  Madras  nil,  and  to  Bombay  9,70,000 
mpees.  The  minimum  price  was  an  before,  1m.  10\d.  on  Calcutta  and 
Madras,  and  Is,  lOld.  on  Bombay.  Tenders  on  Calcutta  at  Is.  llfd.  will 
receive  about  30  per  cent.,  and  on  Bombay  at  1b:  Hid.  about  80  per  cent. 
ftbove  these  prioes  in  fnlL 


£XTBAORDINA£Y  AMERICAN  DEFALCATIOKS. 

It  seems  to  be  a  reasonably  weU-established  fact  that  crime  has  its  epi- 
demies  no  less  than  disease.    Certainly  the  criminal  history  of  this  oona- 
try  for  the  past  year  would  seem  to  afford  a  significant  pnxA.  at  the 
truth  of   this  new  apophthegm.     We  have  the  epidemic  of  murder, 
the  epidemic  of   suicide,  the  epidemic  of  highway  robbery,  tibe  epi- 
demic  of  rape;   in  fact,  these  social  diseases  are  even  now  ai  thor 
height,  and  baffle  the  skill  of  the  doctors ;  but  most  striking,  and  to  aoaie 
most  alarming  of  all,  is  the  epidemic  of  defalcation  which  has  aet  ia  wish 
extraordinary  fury.    In  this  city  (New  York)  alone  within  the  past  v«£k 
no  less  than  four  great  defalcations  have  come  to  light.     The  oommeroiil 
community  was  firet  startled  by  the  Phcenix  Bank  robbery,  of  which  Utt 
paying  teller  of  the  institution,  one  Jenkins,  was  the  ^hero."     Xlitf 
swindle  was  alluded  to  in  my  last  letter,  and  very  few  new  festnrv 
have  since  been  developed.    The  amount  of  the  embezzlemoit  radks 
320,000  dollars.    At  the  examination  of  the  criminal  to-d&y,  Jaki» 
waived  further  preliminary  proceedings  and  was  committed  iortnsL 
His  operations  can  be  characterised  as  nothing  less  than  extnotiMs^" 
He  lavished  the  stolen  money  among  prostitutes  of  the  low«ik  o^* 
and  he  seems  to  have  been  so  greatly  terrified  at  the  fear  of  tofrtwi 
that  his  guilty  conscience  saw  knowledge  of  his  crime  in  every  hce 
upon  which  he  looked.      Fearing  every  bush  an  officer,  he  cave,  sc- 
cording  to  his  own  statements,  large  sums  of  money  to  abandoned  womca 
whom  he  met,  '^  because  they  looked  as  if  they  knew  something  about  xC' 
It  seems  that  be  and  his  principal  accomplice,  Earle,  frequently  discosaad 
^e  probabilities  and  consequences  of  detectiun,  and  that  Earle  invaiiably 
declared  that  if  his  nusdeeds  were  discovered,  he  would  commit  snio^i^ 
Jenkins  ultimately  expressed  the  same  determination ;  but  as  it  tuns  c^ 
Earle  alone  fulfilled  his  promise.    Jenkins  was  deeply  affected  when  ia- 
formed  of  Earle's  death,  declaring  that  he  was  **  a  good  man,"  **  no  bla^* 
mailer,"  and  ^  unfortunate  rather  than  erring."    Earle  left  a  letter,  i& 
which  he  stated  that  he  died  "  innocent,  but  wronged ! " 

The  Phoeniz  bank  robbery  was  followed  by  the  ^*  failure  "  of  one  P.  B. 
Mumf  ord,  a  broker  doing  business  at  19,  Wall  Street,  New  York.  This 
"  failure "  was  simply  another  gigantic  robbery,  Mumford  abaooadu^ 
with  some  200,000  dollars  belonging  to  merchants  and  speculaton  j»i 
whom  he  was  an  agent.  Treading  close  upon  the  heels  of  this  <ie£alcaM 
came  another ;  a  clerk  in  one  of  the  largest  banking-houses  in  the  aty 
being  the  principal  in  the  robbery.  The  amount  of  money  ahstrft^tai 
from  this  institution  was  280,000  dollars ;  but  the  friends  of  the  crimiiul, 
who  represent  the  best  people  of  the  metropolis,  have  repaid  t<>  the  bank 
the  sum  stolen  from  it  by  this  person,  and  he  has  been  packed  off  ^ 


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Extraordinary  American  Defalcatians.  1159 

Europe,  Bailing  from  Boston  to-morrow.    InHomuch  as  the  jonmals  of  the 
metropolis  have  consented  to  withhold  publication  of  the  criminal's  name 

it  is  perhajys  well  to  follow  their  examine.    Let  us  hope  that  H will, 

lire  to  appreciate  the  value  of  wealthy  relatives,  and  the  narrowness  of 
his    escape   from  a  felon's   cell.      Thia   great  robbery  was    discovered 
simultaneously  with  that  which  has  inflicted  a  loss  of  between  300,000 
and  400,000  dollars  upon  Kitchum  and  Company,  the  great  New  York 
dealers  in  Grovemment  bonds ;  dishonest  clerks  being  in  this  case,  as  in 
others,  the  parties  at  faidt.     Ketchum   and  Company  have  suspended 
business.     There  are  rumours  in  Wall  Street  of  other  great  robberies ; 
and  a  panic  prevails  in  financial  circles.  TVith  reason,  too ;  for  no  dex)ositor 
can  feel  safe  when  such  enormous  defalcations  as  those  above  chronicled 
are  daily,  nay  hourly,  coming  to  light.    The  defalcation  by  Smith  J. 
Eastman,  with  a  loss  to  his  cr^tors  of  some  400,000  dollars,  his  flight  to 
Europe,  and  final  bringing-up  in  the  hands  of  the  French  authorities^ 
after  a  season  in  a  French  mad-house,  have    been    commented    upon 
by  you;    the  recent  arrest  in    Liverpool  of   Jeremiah  Townsend,  the 
Connecticut    bank- clerk    who    ran    away    in    May    last    with    100,000 
dollars  belonging   to  somebody  else,  has  also  been  noticed  in  English 
journals;    while   the  case  of  Windsor,    our  mercantile  bank  defaulter, 
has  occupied  the  attention  of   your    courts.      Li    the  West    also,  this 
epidemic    is   showing    itself.      On  Sunday  last  the  clerk  of  the  United 
States  quartermaster  in  Louisville  was  arrested  in  Cincinnati,  on  a  charge 
of  robbing  the  government  of  20,000  dollars.     And  still  another.    ]i£r. 
A.  P.  Stone  was  the  treasurer  of  the  State  of  Ohio.    He  was  appointed  to 
fill  that  jwsition  by  Salmon  P.  Chase,  at  the  time  of  the  appointment  of 
governor  of  the  States  (since  secretary  of  the  United  States  treasury,  and 
now  chief  justice),  because  of  his  presumed  sterling  integrity.    He  was 
chosen  to  fill  a  vacancy  caused  by  the  flight  of  Breslin  Gibson,  the  regularly 
elected  state  treasurer,  who  absconded  with  some  300,000  dollars  belonging 
to  the  state.     Stone  was  also  made  collector  of  revenue  for  a  large  district. 
He  engaged  in  cotton  speculations,  using  government  and  states  money  for 
the  purpose,  lost  heavily,  resorted  to  the  gaming  table  in  the  hope  of  re- 
covering the  deficiency,  lost  again,  came   away  worse    than    a  beggar- 
wandered  into  a  cemetery,  wrote  a  letter  of*  fareweU  to  his  friends,  and 
then  swallowed  a  large  quantity  of  laudanum,  from  the  effect  of  which  he 
ultimately  died.      His  robberies  amounted  in  the  aggregate  to  95,000 
doUara. 

There  must  be  some  inherent  rottenness  in  the  American  system  of 
finance  to  permit  the  occurrence  of  these  enormous  robberies.  One  can 
imderstand  how  a  sharp,  shrewd  rascal,  in  a  responsible  position,  can  con- 
ceal his  thefts  for  a  tune;  but  we  are  astounded  at  the  facility  with 
which  bankers'  clerks,  and  mere  subordinates,  can  withdraw  hundreds  of 
thousands  of  dollars  from  the  institutions  by  which  they  are  employed, 
and  {continue  their  speculations  for  weeks,  months,  years,  without  dia- 
<»^CTy.  Since  the  Phoenix  Bank  robbery  came  to  light,  examination  has 
Wealed  the  fact  that  over  40,000  dollars  were  stowed  away  in  the  bank 
oy  Jenkins,  in  odd  comers,  pigeon  holes,  and  the  like  for  subsequent 
removal. 


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1160 


TRADE  OF  THE  UNITED  KINGDOM. 

Tub  Board  of  Trade  returns  for  the  month  and  six  months  ended  the  30tk 
Jnnewere  isBued  on  the  3l8t  July,  and  again  shoir  rather  im&Toiirable 
reenlts  ae  compared  with  previous  returns;  The  falling  id[  in  the  value  of 
exports,  however,  is  not  very  great,  and  is  ohiefly  to  be  attributed  to  the 
decline  in  linen,  woollen,  and  worsted  manufactures.  The  total  de- 
clared value  of  exports  for  the  month  last  past  was  £13,227,062,  against 
£13,978,526  in  1864,  and  £11,271,627  in  1863,  which  is  a  decline  of 
£751,464  as  regards  the  former  period,  but  an  increase  of  £1,955,535  over 
the  latter.  The  total  declared  value  for  the  six  months  of  ihe  present 
year  is  £74,128,638,  against  £r8,047,586  in  1864,  and  £62,014^97  in  1863, 
which  shows  a  falling  off  of  £3,918,948  as  compared  with  1864,  but  an 
increase  of  £12,114,441  as  contrasted  with  1863.  With  respect  to  exports 
there  is  shown  an  increase  in  alkali,  beer  and  ale,  coals  and  oulm,  ootioa 
yam,  cotton  manufactures,  hardware  and  cutlery,  seed  oil,  wool  and  wooUen 
and  worsted  yam ;  but  a  decline  in  arms,  ammunition,  isc^  earthenware 
and  porcelain,  haberdashery,  and  millinery,  linen  yam,  linen  manufactures, 
machinery,  metals,  thrown  silk,  silk  maDufaotures,  British  spirits  an<i 
woollen  and  worsted  manufactures.  As  regards  imports,  there  is  ahown 
an  improvement  in  guano,  leather  mani£ictures,  flaxseed  and  linseed, 
tallow,  wool,  cocoa,  coffee,  tea,  and  wine ;  on  the  other  hand,  there  is  a 
falling  off  in  raw  cotton,  flax  and  hemp,  raw  silk,  spirits,  and  unrefined 
sugar.  In  the  case  of  cereals,  there  has  been  an  increase  in  wheat,  barley, 
oats,  beans,  and  Indian  com ;  but  a  decrease  in  peas  and  wheat  meal  and 
flour.  As  regards  provisions,  there  has  been  an  increase  in  butter,  d&eese, 
and  eggs,  irmx  a  decline  in  bacon  and  hams,  and  salt  beef  and  pork.  The 
changes  in  the  various  articles  will  be  foimd  enumerated  in  the  annexetl 
tables  ;— 


£.Xl*0BTg. 


...     tons 

1864. 

1885. 

Coals  and  culm 

751,367 

795.049 

Cotton  manafactares   ... 

••• 

...     VMdS 

151.786,765 

167,553,664 

Cotton  yam      

... 

...     lbs. 

6,930,157 

10,024,418 

Haberdashery  and  millinery 
Unen  mannfactnres    ... 

... 

...  value  £ 

373,673 

369,183 

... 

...  yards 

18,610,958 

17,870.321 

Linen  yam       ••• 
Iron,  pig           

... 

...     lbs. 

3,879,178 

3,228,000 

.*■ 

...     tons 

49,306 

44,975 

Ditto,  railway 

... 

•••       tt 

43,004 

41.643 

Copper,  unwrou^ht     ... 

••• 

...  cwts. 

11,834 

8,631 

Ditto,  sheets,  nails,  &c. 

... 

...  gallons 

57,168 

80,972 

Oil  seed            

••• 

437,118 

836,197 

Bilk  manufactures 

••• 

...  value  £ 

131,076 

119,708 

Ditto,  thrown    •••        ••• 

#.• 

...     lbs. 

62,533 

18,763 

Spirits,  British 

Woollen  cloths,  &c.     ... 

••• 

...  gallons 

267,676 

151,047 

•■• 

...    yards 

2,384,520 

1,974.626 

Woollen  and  worsted  yam 

••• 

...     lbs. 

9,971,016 

3,499,061 

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Monetary  IfUeiligence. ' 


1161 


iMlPUKRi. 


Cbcoa      ...-        ..; 

Coffee     

Wheat 

Wheat-meal  and  floor 
Cotton,  raw 

FUx       

Hemp     ..«         .V.  •• 

Hides,  tanned,  &c. 
Leather  manufaotorea  ... 

Butter     

Cheese 

Flax-seed  a'nd  linseed  ... 
Silk|  raw^...         •••        ... 

Silk,  thrown      .* 

Silk  manufiustares 

Spirits     

Sugar,  unrefined  ..^ 

Tallow 

Tea         •••         ...        ... 

Tobacco  

Wine      ♦. 

Wool      „•        

Woollen  mannfactnres.^.. 


lbs. 
cwts. 


lbs. 

pairs 

cwts. 

»» 


...  gallons 
...    cwts. 

••'•         »1 

•••     Ids* 
•••       »» 
;..  gallons 
...     Ibis. 
...  vahie  £ 


1664. 


960.198 

8,82«,954 

1,761,661 

314,221 

790.304 

240,600 

89,905 

314,746 

^69,647 

66,126 

29.718 

73,50^ 

399,662 

1,783 

180,207 

1,932,268 

1.864^068 

56.082 

8,991,493 

2,467.871 

1,378,080 

18,367.648 

118,446 


t,2ll,677 

11,917,267 

2,073.046 

262,260 

471.831 

176,481 

61,987 

636,363 

693,780 

67,134 

33,377 

97,722 

183,225 

2,224 

236,471 

701.301 

1,177,424 

60,309 

9,639,689 

2,422,723 

1,408,063 

26,793.691 

138.656. 


MONETARY  BEVIEW  FOR  THE  MONTH  0^  ATJGIJST. 
Thb  oommercial  and  financial  eyelrts  of  August  have  not  been  very-  im- 
portant. W^  have  had  a  quiet  money  market,  limited  stock  speculations^ 
and  raihet  doubtful  weather  for  the  harvest  ]^  at  the  same  time  business^ 
baa  been  especially  restricted  through  the  holiday  season,  the  operators 
and  others  having  in  the  absence  of  activity  prolonged  their  vacation. 
It  now  seema  preiiy  certain  that  the  Bank  directors  will  not  advance  the 
official  minimum  at  present ;  indeed  it  is  possible  they  may  in  a  week  or 
80  reduce  it  ^  per  cent.,  an  influx  of  bullion  iiaving  set  in  and  there  being 
no  Continental  demftna  lor  exrort.  The  silver  market  remains  quiet,  the 
last  advices  from  Calcutta  and  Bombay  showing  t^e  rates  of  exchange  to  be 
favourable  for  this  country.  The  best  short  paper  is  now  discounted  at  3{ 
per  cent.,  and  three  and  four  months'  bills  can  be  done  at  3{  and  }  per  cent^ 
oix  months'  paper  is  not  freely  negotiated.  It  may  be  remembered  that 
the  rates  of  molkey  on  the  Continent  az^  cheaper  thah  in  the  United 


be  opei^itons  in  English  security  have  been  limited.  Pricdfi  hiLVe 
Utterly  been  firmer  owing  to  the  purchases  of  the  gov^himent  bonds  on 
behalf  of  the  Sinking  Fund  and  the  inve^tmefits  of  the  piA)lic.  Still  the 
market  must  be  considered  in  a  quiet  situation. 

There  has  been  lio  mcji^ement  of  conseqilence  in  foreigh  ttooks.  Stoadi* 
ness  is  now  the  feature  with  a  slight  tendency  to  improvement,  and  next 
month  there  probab]^  may  be  a  return  of  buoyancy.  Very  few  Bpeoulative^ 
trajBsactiona  have  recently  taken  place. 

The  railway  market  is  at  length  reeovmng  from  its  lethargy.  The 
traffics  are  more  favourable^  the  public  have  become  buyers^  andthe  dii^ 
TOL.  XXV.  8ft 


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ized  b^Google 


1162 


Notices  to  Carre9p4md€tUs. 


positioii  is  evideni^y  to  give  atiepti<»  to.  this  de[»rtineni.  All  I2&e  shftm 
pf  the  principal  lines  exhibit  a  decidedly  firmer  appearance. 

Joint  stock  bank  shares,  finance  and  credit  sjiares  are  all  more  or  les 
gradually  improvinff.  If  we  tnm  the  comer  iii  baainess  we  may  see  a  re- 
yivaX  in  quotations  oefore  long. 

The  produce  niarkets  remain  very  quiet. 


THE  GRAIN  TRADE. 

BusTKEss  in  nearly  all  the  com  markets  throughout  the  coumtry  has  been 
anything  but  active  during  the  lust  two  or  three  weeks.  Aa  is  usual  &t 
this  period  of  the  year,  much  depends  upon  the  state  of  the  weather  for 
getting  in  the  harvest,  and  as  much  rain  has  recently  fidlen,  fears  ar^ 
beginning  to  be  entertained  that  the  com  yet  to  be  gathered  in  may  be 
seriously  injured,  should  there  not  be  a  return  of  warm  and  genial 
weather.  The  price  of  wheat  has  consequently  considerably  advanced, 
and  other  grain  in  proportion.  At  the  markets  most  recently  held,  even 
still  higher  prices  have  been  demanded,  but  buyers  refuse  to  respond, 
except  in  very  prewsing  cases.  The  latest  average  quotations  were  whea^ 
43d.  Id.  per  qr. ;  barley,  27^.  ll<i.  per  qr. ;  and  oats,  23^.  lOd.  per  qr. 
The  price  of  wheat  is  now  about  the  same  as  it  was  at  the  oorresponding 
period  last  year. 
The  Gazette  returns  for  England  and  Wales  have  been  : — 

Week  Wheat.  Weekly  Weeks 

ending,  Qra.  sold.  Average.  Duty.  Last  Year. 

1865.  8.    d.  $.     d.  «.     i. 

July  29  63,828       ...        42  10        ...        10         ...         43    « 

Aug.     5  64,864      ...        42    6        ...        10        ...        44    0 

„       12  53,311       ...        42    0        ...         10         ...        44    1 

„       19  45,762       ...         43    1         ...        10         ...         43    6 

The  importations  since  the  harvest  of  1864  have  been : — 

Wheat.  Other  Grain.         ToUL 

Cwts.  Cwts.  Cwts. 

Fifty-three  weeks  ended  22nd  July...     18,669,407  25,664,631     44,234,038 
Four  weeks  ended  19th  August        ...       1,753,806    1,897,825      3,651,630 

20,323,212  27,562,456  47,885,668 
And  the  weekly  averages  have  been : — 

Fifty. three  weeks  ended  22nd  July     ...       350,000       484,000  834,00t) 

Four  weeks  ended  19th  August          ...      438,000       474,000  912,000 

More  88,000  Less  10,000  More  78,000 


NOTICES  TO  COEBESPONSEHTS. 

We  hare  arranged  in  fiitnre  to  issne  a  doable  nnmber  in  Fe>>niar7  and  Aasrast,  instead  v 
formerly  in  May  and  November.  This  has  been  rendered  necessary  by  the  great  tDcreasc^ 
the  Meetings  of  the  Bankn  and  Discount  Oimpanids,  which  will  bo  alwaye  carefoUy  coUecwd 
in  the  pages  of  the  Bankers'  Maga^ne.  We  shall  alAO  give  the  proc^dings  of  the  rarioiu 
Credit  and  Finance  Companies  m  they  are  more  or  less  associated  with  banking.  *> 
that  our  sabticribers  and  readers  can  refer  to  them  without  diffloalty.  Oorrespoodeotfi 
will  please  forward  c3mmuiiications  addressed  to  tlie  Editor.  No  8,  Birohin  liane;  sob- 
scriptioos  and  ordera  as  usual  to  Messrs.  Groombridge  and  Soti&,  Paternoster  Bow,  I'T 
Hes&rs.  Waterlow  and  Sons,  Carpenters'  Hall,  London  Wall.  BinrKiiro  Asm  FtwkWciMJ. 
AirBODOTSB.— It  will  be  peroeiyed  from  notice  elsewhere,  that  the  Editor  of  the  Bomktr^ 
Maffozine  is  oolleoting  and  arranging  a  series  of  Banking  and  Financial  Anecdotes.  Any 
contributions  from  subscribers  and  readers  of  the  Jtfagiizing  will  bo  thankf xUy  received, 
particularly  if  the  sul^eot-matter  shall  not  have  previoasty  appeared  in  print.  Nothing 
personal  or  ofibnaive  will  reoeire  pnblici^. 
^  One  or  two  oommunications  stand  over. 


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1163 


BANK  OF  FRANOB. 

DEBTOR. 


Aug.  8. 

Aug.  10. 

Aug.  17. 

Aug.  84. 

».          c. 

».           c. 

».        c. 

T.              C. 

Capitelof  the^ank  ... 

182,600.000    0 

182.600.000    0 

182.600,000    0 

182,600,000    0 

TnGta  in  addition   to 

Capital  (Art.  8,  Law 
of  June  9,  1867)       ... 

^ 

7fi4A,779    2 

7.044,778    2 

7,044,776    2 

7,044,776    a 

Beserve  of  tho   Bank 

ami  its  branches     ... 

22.106.760  14 

22,106,760  14 

22.105,760  14 

22,105,760  14 

Beaejre  in  landed  pro- 

perty    

4.000,000    0 

4,000.000    0 

4,000,000    0 

4.000,000    0 

Notes  in  circnlation  ... 

898.333.075    0 

897.369.926    0 

677,819.725    0 

879.82-j,826    0 

Bank-notes    to    order 

anrj  receipts  payable 

ataijfht 

8.643.414    9 

8.387,270  77 

7,873.722  48 

8,176.980  36 

Treteriry  account  cur- 

rent, creditor 

144,919,196  24 

U«»,176.ft77  17 

146,834.393  66 

166.287,381  18 

Corrcut  accounts,  Paris 

179.439,«2  81 

170,182.122  31 

170,'<6'i.745  15 

168,103,40H  00 

l»o.  branch  banks 

39, 593,69  i    0 

3().02S,{»i8    0 

31.2}M).h74     0 

31,4l':j,105    0 

DlTidenJa  payable     ... 

I>j*coaiits  and   sundry 

interests         

2,674,673  75 

2,267,865  76 

2,037,233  75 

1,834,422  76 

2.979.381  89 

3.393.863  96 

3,736,010  08 

4.014,840  69 

Rewlisoonnted  the  last 

&ix  montiis     

1.427,623  17 

1,427.623  17 

1,427,623  17 

1,427,623  17 

Sin)lu«  of  receipts  not 

<ii*tributed     

752.903  36 

752,993  36 

752,993  36 

752,993  36 

fijDdries 

11,614,951  62 
1,605,92^.872     9 

10,103,105  92 

10,1S5,27S  10 

9,7:^0,913  96 

Total 

1,««,031.121   67 

1,168,501,226   11 

l,467,302,03tf  62 

CBSDITOR. 


Aug.  3. 

Aug.  10. 

Ang.l7. 

Aug.  24. 

V.           c. 

r.          c 

w,          o. 

F.               C. 

r^Ah  in  hand  and  caah 

in  the  bnuich  banks 

493.250,412  66 

486,387,696  40 

488.070,183  67 

500,419,290  61 

Commercial  bills  over- 

due 

407,101  62 

200,032  67 

612.646    7 

220,276  84 

r-rainercial   hills    dis- 

c*mnted,  not  yet  due 
I>().  branch  baxiKS 

303,419,2«7  45 

310.930,3^  IS 

293,692,627  12 

292,301.S3O  91 

326,710,323    0 

308,820,400    0 

312.323,070    0 

209,8r>:i,41»4    0 

A.i'."iac<-9  on   deposits 

ofljillion       

60,701,323  25 

60,062,023  26 

51,HT2.«73  26 

63,366.073  26 

15).  branch  banks 

12,155.554    0 

12,321,65^4    0 

12,341,700    0 

ll,9yi),500    0 

!*'•.  on  French  public 

svicuritios        

14,921,100    0 

14,711,100    0 

11,589,200    0 

ll,7r/M00    0 

Do.  by  the  branch  banks 

10.470,900    0 

10,426,000    0 

10,625,700    0 

10,58«,800    0 

I>j-  on  railwi^  shares 

31.078.900    0 

and  deljenturoa 

30,711,400    0 

30,611,100    0 

30.650,200    0 

I>o.  by  the  brsincb  banks 

21,436.280    0 

21,618,380    0 

21,655,780    0 

21,609,680    0 

IX).  on  Credit  Foncier 

666,700    0 

Unfls 

676,700    0 

67«!200    0 

661.400    0 

IM.  branches    

617,250    0 

610,760    0 

M2,950    0 

623.060    0 

I>o.  to  the  State  (Con- 

60,000,000    0 

▼pntionJunolO,  1857) 

60,000.000    0 

60,000,000    0 

60,030.000    0 

(iOTemmcut  stock  re- 

serve     

12,980,750  14 

12.990,750  14 

12,9Sn,750  14 

12,9-=tO,750  14 

rwi. 'U^posable 

36,567.487  91 

36,657,487  91 

36.667,487  91 

36,567,487  91 

B«nu»5i      Intinobllisoos 

iluw  of  Jane  9,  1857) 
Boi^l  Knil  fnm.orBauk, 

100,000,000    0 

100,000,000    0 

100.000.000    0 

100,000,000    0 

»wl  lauded  property 

of  branches 

Ki'«nj*es   of  manage- 

8,463,606   0 

8,410.303    0 

8.413,666    0 

8,426,101    0 

ment    

637.426    2 

676.093  65 

677,938  75 

906,807  63 

WBidries 

12,657,438  25 

12,117,914  87 

10.127,65^1  30 

12.104,874  83 

Total    ... 

1,606,928.87^     9 

1,«B8.031,121  67 

1,464,601,226  11 

1.467,302,029  6i 

Digiti 


zedbyLnOOgle 


1164 

FLUCTUATIONS  IN  ENGLISH  AND  FOREIGN  STOCKS  ASD 
RAILWAY  8HABBS; 


Price  on 
July  as. 

HighesL 

LowttC 

Prinon 
Aag.  Mh. 

Ekolish  Fditds. 

OohboIb           

89}  to  90^ 

90i 

89 

89|to| 

Exchequer  Bilk 

parto4piii 

4/pm. 

8/dis.    ;vdtoi/?t 

FoBBiOK  Stocks. 

Brazilian         

_^ 

101 

97 

lOOi 

Bnenos  Ayres            

85 

87 

86 

87 

Chilian           , 

.... 

103i 

103i 

103 

Dutch  2)  per  oenta 



63 

61f 

611 

Mexican          •••  *      •»•        ••• 

28J 

281 

22J 

23i 

Peruvian  4|  per  cents. 

7» 

76J 

7(4 

Rus&ian          

03i 

93) 

93i 

93 

S[>aniBh          •••        ...        ••• 

94 

m 

wj 

£1 

47f 
94 

Ditto  4  per  oeuts. 

— 

lOSi 

lOli 

102 

'Railway  l^feLABxs. 

Brighton         

106 

lOti 

106 

106i 

i32j 

134 

181 

133} 

Great  Eastern            ; 

471 

49} 

451 

m 

Great  Northem 

131 

ISSi 

laoi 

132 

Great  Western           

e5i 

WJ 

641 

66 

Lancashire  and  Yorkshire    ... 

120 

121 

1181 

121 

London  and  North  Western... 

122 

1261 

121i 

1251 

132 

132| 

1281 

1301 

North  Staffordshire  ^. 

791 

80 

78 

i 

South  Eastern           

83 

84 

7S» 

South  Western          

99{ 

1001 

961 

981 

York,  Newcastle,  a»d  Berwick 

llli 

112 

110 

1U| 

York  and  North  Midland    ... 

10% 

l«4i 

102 

104i 

103i 

1031 

1021 

lOSi 

Northern  of  France 

— 

43 

m 

43 

CREDIT,  llNANCE  AND  DISCOUNT  COStPANIES. 


Aum.  Paid.    Istasi 


▲natraUan  Vo 


,  "Uad 


and  FinKice  (Qzn.) 
OonMAicbitod  Diftccnmt  njxn;) 
OoDtraot  Oorporation  (Lim.) 
CMdit  Fonoier  of  Muiitliis 

(Limited)     

Or6dit  Fander  and  KobOier 

of  Bxkgland ;. 

IMaooimt  Oorportttlon  (UnL) 
SMt  India  F&anciAl 
XflTpttan  Oommerdal  antd 

Thigtiiih  and  Foratflu  Credit 
Flnantdal  Corponttioii  ... 
Financial  Disoonnt  (Lim.)..!' 
Q«neral  Credit  and  Flnvioe 

of  London  (Lim.) 

International         Flnandal 

ftalMniMtoua  dUtcaoi 


S6 

100 


10 

tto 

00 

20 
80 
100 
80 


8 

10 
71 

10 

6 

SO 
7» 

4 

? 

10 


6 
10 


t9| 
18. 

? 

ii" 

9 


Impeiiar  lC«r6mtile  Credit 
(Lim.^ 

InteroationiaLandCxvdit ... 

Joint  StbckDiaoonnt  nim.) 

Land  Oredii  of  Ireland      ... 

Land  Becnxitiea        

London  Finajieial  Aitooda- 
tion(L&n.) 

London  KeroatttQe  DlMoanft 

Maoiitin^  Land.  Credit  and 

K^^aa  Diaooont  (X>.  "(Usu) 

Oriental  Financial    

Ottoman  Finahdal  Aaaoola- 

1ion(Lim.) - 

Overend,  GHfinfljAOo;(I<inL) 
Boci«t«  Finamdaize  d'ttgypli 

(Lim.) - 

Bouth  Aftieaa  KoHme  and 


»      J    m 

a    19    * 


7    W 

10      •» 


« ^  r 


Digitized  by  LjOOQIC 


1165 


JOINT-STOCK  BANKS. 


m    and    lCa8terman*s» 

limited       Z 

hoa 

Kttce  Bank  of  London 
ad  Ijrcrpool,  Limited  ... 

Ditco.  iMoed  ataopm. ... 
a|to  Austiiaa  Bank 
»id>Egj'pti*n  (Um.)      ... 

Ktlvlialiaa  (Lim.) 

lUtic  Banking  Corporatfon, 
^c?  Shares  uanGd  at  £15 
7th,  on  which  £7.  10».  is 

pud 

akofAMtwJagi^ 

Ktto,  New         

^  cf  fintiah  ColomtAa... 

Bi  of  London  '"  '.'.. 
»i of Otago  (Limited)  ... 
*k  ^'Oneensland,  Limited 
■li^h  i  Caljfomian  (Lim.) 
aUfNwr  Zealand 
as  of  Victoria,  Australia 

tragi's  B«ak  (Lim.)     

«a'Jtta4Portagne8e(Iim.) 
^ttfh  North  AnTerican  ... 
bartered  Bank  of  India 
^vtnJia  and  China 
wcred  Mercantila  Bank 
<  India.  London  k  Cbina.. 

^Bank       .„       

filial  Bank 

^efcial  Bank  of  Canada 
<^ercial  Bank  of  India 

«1  the  Bast         

ay*dated  Bank  (Lim.)... 
^^laeatal    ...         .        ... 

Jnto.   New        

Aiaad  liondon  Bank  (Lim.) 
■tlaadonflLim.) 
''^Kxchange  ... 

JtebJoint  Stock  Ciam-)... 
jMh,  Scottiah  and  Ana- 
2P^  Chartered  Bank  ... 
!g*an<i8wediah(Lim.) 
!2*n  Bank  (Limited)  ... 
|g^,  China  and  Japan, 

Ditto,  iaaiied  at  2  pm." ' 
»>«o,New        ...       ... 


LoDdoa 

Share. 

Paid. 

latest 
Pric«a 

A 

M 

£ 

BO 

25 

57ixd 

60 

10 

H 

100 

26 

30 

100 

20 

23k 

20 

6 

7 

60 

IZk 

12i 

60 

16 

11: 

20 

6 

40 

40 

76 

40 

40 

751 

ao 

20 

23i 

25 

2S 

29ixd 

lOO 

60 

134 

20 

8 

61 

100 

26 

m 

60 

7k 

6 

10 

10 

16i 

60 

26 

44 

60 

6 

^ 

20 

10 

9 

60 

60 

46 

20 

20 

2*1 

25 

25 

47i 

100 

60 

106 

100 

26 

42 

20 

20 

... 

25 

25 

22 

10 

4 

10 

100 

25 

100 

15 

... 

60 

25 

SO 

6 

"6| 

20 

6 

4 

25 

10 

llizd 

20 

20 

21zd 

60 

20 

16 

60 

16 

11 

100 

25 

19 

100 

25 

19 

100 

20 

IH 

100 

20 

28 

20 

10 

16i 

2r. 

26 

26 

Ionian,  Now      ,., 

Land  Mortgage  Bk.  of  India 
London  Bank  of  Mexico  and 

Boutli  America  (Limited) 
London  Bank  of  Scotland 

(Lim.)  

London  and  Brazilian  Bank 
London,  Bnenos  Ayrea  and 

Eiver  Plate,  Limited 
Ditto,  New,   issued    at 

London  Quartered  of  Australia 

London  and  County  Bank  ... 

London  Joint  Stock  Bank  ... 

London  &  South  African  Bk. 

i«ondon  and  South  Western 

(Limited)      

Ditio,  ditto,    New 

London  and  Venezuela  (Lim.) 

London  &  Westminster  Bank 

Merchant  Bank  (Limited)  ... 

Mercantile  Exchange  (Lim.) 

Metropolitan  and  PIroTincial 

Bank.  Limited        ...       ^ 

Ditto,  New         

Midland  Bank  (Limited)    ... 

National  Bank...       

Ditto,  New  

National  of  Liverpool  (lim.) 

National  Provincial  Bank  of 

England       

Ditto,  2d  and  3d  issues ... 

New  South  Wales     

New  Zealand  Bank  Corpora- 
tion (Limited)       

Ditto,    New    ... 

Northwestern  

Oriental  Bank...       

Provincial.  Banking  Corpo- 
ration  

Ditto,  ditto 

Provincial  Bank  of  Ireland... 
Ditto.  New  

Scinde,  Puqjanb  and  Delhi 
(Limited)      

Ditto,  issued  at  2  pm. 

South  Australian      

Standard  of  British  Africa 

(Limited)      

Do.  New,  issued  at  6  pm. 

Union  Bank  of  Australia    ... 

Dnion  Bank  of  Ireland,  lim. 

Union  Bank  of  London 


Londmi 

Bhazv. 

Paid 

latet 

PrlMB 

25 

5 

5 

20 

4 

4i 

60 

IS 

131 

lOO 

13 

100 

40 

43 

100 

40 

50 

25 

10 

13 

20 

20 

25 

60 

20 

75|xd 

60 

15 

47t 

20 

20 

17{xd 

100 

20 

19zd 

100 

174 

letxd 

50 

124 

H 

100 

20 

86 

100 

25 

26 

60 

10 

6 

100 

20 

15* 

100 

15 

lot 

100 

20 

18xd 

60 

30 

94 

50 

25 

100 

10 

17 

100 

42 

165i 

20 

12 

444 

20 

20 

41 

10 

1 

i 

10 

1 

20 

74 

104 

25 

26 

52 

60 

7i 

44 

60 

10 

7 

100 

25 

86 

10 

10 

20 

10 

64 

20 

2 

25 

25 

34 

100 

25 

154 

100 

10 

4 

25 

26 

54 

100 

22 

17 

60 

15 

63f 

^OL.  XXV. 


Digitized  by 


ft^ogte 


Sanit  oi  (Z^glanli  Wlttiiis  ^tvams* 

Aeooant,  pursuant  to  the  Act  7th  and  8th  of  Yiotoria,  cap.  33,  for  the  We^ka  ondmg  as  foDowsr- 

ISSUE  DEPAETICENT. 


. 

1865. 
Angnst  4. 

1865. 
Aagnstll. 

1965.             ItW. 
August  18.    AngofitSS. 

Notes  issned        

28.253.805 

£ 

27,995,080 

27,992,850 

£ 
27.»0,775 

Government  debt          

Other  secoiities 

Gold  coin  and  bullion 

Silver  buUion      

11.051,100 
3.634,900 
13,603,805 

11.016,100 
3.6»*,M0 
13,315,060 

11.015,100 
8,834,900 
13,342,850 

III 

28,268,805 

27,995,090 

27.992.850 

27.920.775 

BANKING  DEPARTMENT. 


Proprietors*  capital      

TlCHt 

Public  dfiposita  (IncladlnR  Exchequer, 
Savinw  liwiikti.  C<»miiiin«ion<»ni  of  National 
Debt,  and  Divid-jud  Aecottnts) 

Other  Deposits     

Seven  day  and  other  bills 


1865. 
August  4. 


£ 

14,553,000 
3,508,814 
6,214,377 


14,681,727 
657.427 


38.515,315 


1865. 
August  11. 


£ 
14,553,000 
3,617,879 
5,264,730 


1S6S.  1885. 

August  18.    August  35. 


£ 

14,553,000 
3,539.451 
5,326,453 


14,688.181       14,962,797 
553,627  615,150 


38,677,328  '    38.93B.SI1 


14,5SS.ffl» 
5,5H2iSI3 

IVliSS 
S31,«l 


Government    Securities    (including 
Dcful  Weight  Annuities)      . . . 

Other  Secunties 

Notes  

Gold  and  Silvfo*  coin     


10,394.200  ! 

81,668,618  j 

5,807,475  ; 

653,843 


10,38 1,309  '  10,384,209 

21,341,M57  I  21,687,044 

6,972,930  6,917,aV5 

878,830  '  937.6>v} 


_38,'?9Sae^ 

!0,38U« 
21,4».W 
6,IK» 


38,515,345      38,577,326  I    36,926,841  1  38,90M£ 


THE  EXCHANGES. 


August  4. 

August  11. 

AogostlS. 

AngasiS. 

Amsterdam,  short         

11    19 

11  m 

11    19 

11  » 

Ditto     3  months       

12      1 

12      1 

12      U 

11    H 

Rotterdam,  ditto 

12      1 

12      If 

12      1| 

U  1 

Antwerp,  ditto 

26    60 

25    65 

25    67 

Sll 

Brussels,  ditto     

25    60 

25    66 

25    67 

Hamburg,  ditto  ...        

13    101 

13    101 

13    lot 

13   Wj 

Paris,  short 

25  ao 

25    26 

25    25 

SI  s\ 

Paris,  S  months 

25    45 

26    45 

25    471 

u  » 

Marsoaies,  ditto 

25    45 

26    46 

25    471 

25   59 

Frankfort,  ditto 

121 

121t 
11    37| 

121t 

"^L. 

Vienna,  ditto       

11    97k 

11    25 

11  r 

Trieste,  ditto 

11    37* 

11    37 1 

11    23i 

11  »; 

Petersburjfh,  ditto        

Madrid,  ditto       

Catliz,  ditto 

SI 

48 

481 

301 

1^1 

§ 

Xiechom,  ditto     

26    65 

So    60 

25  m 

25  ei 

Milan 

25    65 

25    60 

26    60 

25  ei 

2S   t*} 

Genoa,  ditto 

26    65 

25    60 

25    60 

Naples,  ditto 

25    66 

26    60 

25    62i 
25    6S| 

25   <U 

Palermo,  ditto     

26    65 

25    60 

55   C4 

Me?8ina,  ditto      

25    66 

25    60 

25    6? 

35   «^ 

Linbon 

61| 
61} 

6U 
6li 

61i 

51J 

Oporto 

sii 

PRICES  OP  BITLLION. 


Foreign  Gold  in  Bars  (Standard) 

Mexican  Dollars  

Silver  in  Bare  (Standard) 


PerQs. 
£  8.  d. 
3  17  9 
0  0  0 
0    0    0 


PeirOs. 
£  8.  d. 
3  17  9 
0  0  0 
0    0    0 


ParOs. 

£  8.  d. 
3ir  » 
0  6  Oi 
0   0    0 


Per  OS. 
£  0.  d. 
3  17  • 
0  0  0 
0  0  0 


Digitized  by  LjOOQIC 


Sanittrst'  Wittkl)^  Ctrntlation  iUtunts;. 

Airfiiaii^  to  the  Act  7  4r  8  Victoria^  c.  32;  extracted  from  the  Lokdok  Gazette. 
PRIVATE    BANKS. 


NAME  OF  BANK. 


Author- 
ised 
Imne. 


t  AshfordBank    

2  Ajleabnry  Old  Bank 

3  Baldock  and  Bisgleswade  Bank  ... 

4  Barnstaple  Bank 

5  Bedford  Bank 

<  Bicester  and  Oxfordshire  Bank  ... 

7  Boston  Bank — Claypons  and  Co..., 

8  Boston  Bank — Gee  and  Co , 

9  Bridgewater  Bank , 

10  Bristol  Bank  , 

11  Broselejr  and  Bridgnorth  Bank    .., 

12  Bnckingham  Bank.. , 

13  Bttr^  and  Suffolk  Bank 

14  Banborj  Bank m. 

15  Banbory  Old  Bank 

16  Bedfordshire  Leigh  ton  Bazzard  Bk 

17  Binningham  Bk. — Lloyds&Co.  ... 

18  Brecon  Old  Bank 

19  Brighton  Union  Bank , 

20  Burlington  and  Driffield  Bank , 

21  Bury  St.  Edmund's  Bank 

22  Cambridge  Bk.— Mortlock  &  Co 

23  Cambridge  and  Cambridgeshire  Bk. 

24  Canterbury  Bank  

25  Carmarthen  Bank 

26  Chertsey  Bank    

27  Colchester  Bank 

28  Colchester  and  Essex  Bank 

29  Cornish  Bank— Tweedy  &  Co. 

30  Coventry  Bank  

31  City  Bank,  Exeter 

32  Craven  Bank—Alcocks  &  Co. 

33  Chepstow  Old  Bank  

34  Derby  Bank — Messrs.  Evans  &  Co. 

35  Derby  Bank— Smith  and  Co.  ... 

36  Derby  Old  Bank    

37  Devizes  and  Wiltshire  Bank    ... 

38  Diss  Bank  

39  Doncaster  Bank  and  Retford  Bank 

40  Darlington  Bank  

41  Devonport  Bank    

42  Dorchester  Old  Bank    

43  East  Cornwall  Bk.—RobiDS&  Co. 

44  East  Biding  Bank— Bower  &  Co. 

45  Essex  Bk.&  Bishop's  StortfordBk. 

46  Exeter  Bank  

47  Faruham  Bank  •• 

48  Faversham  Bank 

49  Godalming  Bank 

50  Guildford  Bank 

51  Grantham  Bank — Hardy  and  C0..1 

52  Hull  &  KinB:ston-npon-IIull  Bank 

53  Huntingdon  Town  &  County  Bank  | 

54  Harwich  Bank   ..' 

55  Hertfordshire, Hitchin  Bank    

56  Ipswich  Bank...,. , 


£ 

11,849 
48,461 
37,223 
17,182 
34,218 
27,090 
75,069 
15,161 
10,028 

48,277 
26,717 

29,657 
82,362 
43,457 
55,>53 
36,829 
38.816 
68,271 
33,794 
12,745 
3,201 

25,744 
49,9  >  6 
33,67 
23,597 
3,436 
25,08 
48.704 
49,869 

12,045 

21,527 
77/54 

9,387 
13,332 
41,304 
27,237 
20,674 
10.657 
77,400 
86,218 
10,664 
48,807 
112,280 
53,392 
69.637 
37,8941 
14,202 

6,681 

6,322 
14,524 
30,372 
19,979 
56,59 » 

5.778 
38,764 
21,901 


1                  AVEBAGB 

AMOUNT 

Julyl. 

Julys. 

July  16. 

July  22. 

£ 

£ 

& 

£ 

11,889 

12,077 

10,416 

10,135 

ai,777 

22,365 

21,987 

22,407 

14.976 

15.920 

16,543 

17,264 

3.501 

3,776 

3,820 

3,403 

28,032 

29.273 

29,604 

29.417 

14.671 

14.490 

14,690 

13,960 

71.776 

68,871 

65,267 

64,183 

1    i».557 

12,827 

11,577 

11,213 

1      7,075 

6,792 

6,652 

6,654 

19.078 

20,760 

20.583 

20,824 

15.053 

16,064 

15.664 

16,644 

17.611 

18,548 

18,975 

18,833 

47,078 

47.191 

47,288 

48,185 

25.997 

25.700 

26,020 

25.171 

18,620 

16,859 

16,430 

17,094 

33.085 

33.362 

35.681 

35,702 

2,690 

2,508 

2,335 

2,235 

44.533 

44.854 

43,971 

42,790 

18,148 

17.904 

18.711 

18,383 

12,248 

12,476 

11,841 

11,001 

2,906 

3.046 

2,912 

2,912 

12,371 

13.777 

12,722 

11.712 

38,962 

39.315 

39, 128 

38.627 

25.647 

27.510 

30,559 

31,4^3 

14.292 

14,536 

14,234 

13.793 

2,615 

2,920 

2,649 

2,442 

17,433 

17,554 

16,954 

16,869 

1   28,282 

29.537 

29,405 

29.463 

25.573 

26,055 

24,689 

25.060 

4.479 

4,275 

4,197 

4.336 

14.682 

14,669 

14, 142 

14,510 

65,626 

65.490 

65,467 

66,504 

8,455 

8,058 

7,800 

8,060 

8.945 

9.429 

9,259 

9.194 

24.593 

24.966 

24,065 

23.845 

26,305 

28,208 

28,311 

25.845 

5.952 

6,262 

6,382 

6,397 

9.903 

9,639 

10,080 

10,344 

66,068 

67,590 

67.686 

66,418 

80,705 

82,198 

82.636 

80.348 

6,213 

6,350 

6.554 

6,518 

35.960 

36,765 

37.967 

38,210 

74,314 

75.583 

75.393 

76,365 

52,872 

51,697 

51.974 

51.653 

37,500 

h9f<>l9 

38,398 

38.506 

20,767 

22,205 

20,517 

21,378 

,     5.^96 

5.745 

5.619 

5.748 

5.^62 

5.560 

5,709 

6,104 

4.547 

4,800 

4,770 

4,745 

10,026 

10,215 

10,027 

9.930 

23.447 

23.826 

22,337 

22,530 

17,974 

19.894 

18,940 

20,250 

30,817 

31.^95 

30.738 

30,991 

5;o35 

5.101 

5.153 

4,280 

33,282 

33.572 

3».85i  1  32.232 

17,526 

18,011 

37,774 

1     ^-^ 

1  17,472 

Digiti 


izedbyL^OOgle 


1168 


WEEKLY  KBTITRNS   OF   BAKKS  OV  TBSUZ* 


NAHE  OF  BANK. 


57  Ipswich  &  Needham  Market  Bank 

58  Kentish  Bank— Mercer  &  Co.  ... 

59  Kington  and  Radnorshire  Bank... 

60  Knareshorough  Old  Bank  , 

61  Kendal  Bank 

6z  Jjongtorx  Staffordshire  Bank  ..< 

63  Leeds  Bank 

64  Leeds  Union  Bank 

65  Leicester  Bank 

66  Lewes  Old  Bank 

6y  Lincoln  Bank  

68  Llandovery  Bank  &LlandiloBank 

69  Loughborough  Bank 

70  Lymington  Bank 

71  Ljnn  Regis  and  LincolnshireBank 

72  Lynn  Regis  and  Norfolk  Bank  .. 

73  Macclesfield  Bank 

74  Manningtree  Bank  

75  Merionethshire  Bank  

76  Miners' Bank   

77  Monmouthshire  Agricultural  and 

Commercial  Bank 

78  Monmouth  Old  Bank 

79  Newark  Bank 

80  Newark  and  Sleaford  Bank  .. 

81  Newbury  Bank 

81  Newmarket  Bank 

83  Norwich  Crown  Bank  and  Norfolk 

and  SniToIk  Bank 

84  Norwich  and  Norfolk  Bank  .. 
8<  Nottingham  &Nottingham6h.Bk. 

86  Naval  Bank,  Plymouth  

87  NewSarumBk. — Pinckney8,Bros, 
83  Nottingham  Bank    

89  Oswestry  Bank    

90  Oxford  Old  Bank 

91  Old  Bank,  Tonbridge 

9»  Oxfordshire  Witney  Bank . 

93  Pease's  Old  Bank,  Hull  

94  Penzance  Bank    

95  Pembrokeshire  Bank  

96  Reading  Bank — Simonds  &Co... 

97  Reading  Bk. — Stephen*,  B1andy&  Co. 

98  Richmond  Bank,  Yorkshire    

99  Rochdale  Bank    

100  RoystonBank 

101  Rugby  Bank 

loa  Rye  Bank - 

103  Saffron  Waldcn&  North EsscxBk. 

104  Salop  Bank  ■ 

105  Scarborough  Old  Bank 

106  Shrewsbury  Old  Bank 

107  Sittingbourne  and  Milton  Bank.., 
138  Southampton  Town  &  County  Bk. 

109  Southwell  Bank   

110  Southampton  and  Hampshire  Bk. 

111  StaffordOld  Bank 

112  Stamford  and  Rutland  Bank...*.c 

113  Shrewsbury  and  Welsh  Pool  Bank 

114  Taunton  Bank... • < 

115  Tavistock  Bank 


Author- 
iced 
Lwue. 


£ 

80,699 

19.895 
26,050 
11,825 
44,663 
5,624 
53,357 
37.459 

3^,322 

44,836 
100,342 

3^,945 

7,359 

5.038 

42,817 

13.917 

15,760 

7,692 

10,906 

18,688 

29.335 
16.385 
28,788 
5>.6»5 
36,787 
23,098 

49.671 

«o5»5»9 

10,866 

27,.«i 
'5,659 
3i,047 
18,471 
3+,39i 
13.183 
11,852 
48,807 
"1,405 

12,910 

37,5»9 
43<27i 

6,889 

5,590 
16,393 
17,250 
29,864 
47.646 
",338 
24,813 
43,191 

4.789 
18,589 
14,744 

6,77c 
14,166 
31.858 
25,336 
39.799 
i3»4ai 


AYE&AfiB  AMOTTNT. 


Julyl.        Julys.   IpiOyU.     JnlySi 


£ 
51,616 

12,151 
18,167 
19,810 
39,081 
5.038 

51,034 
36,853 

23,6t»o 
26,973 
81.447 
18,555 

7.014 

2,210 
28,093 
12,181 
11,029 

5ti3o 

7,426 
18,904 

26,950 

5.120 

20,200 
41,023 
13»877 
16,118 

45,993 
77,384 

7,998 
19.570 

6,:8o 
20,459 
11,5*7 
35»4i7 

9,005 

8,810 
44.276 

8,919 

9.786 
25,639 
^5.346 

6,107 

1.805 

9,860 

8,883 
10,015 
19,792 

9.365 
20,604 

34. 751 
3.249 
8,574 
8,099 
1,025 

10,271 

15.107 

11.332 

19,769 

8«59S 

iJigifized 


£ 
52,062 
11,874 
17,257 
19.833 
38,870 

5,295 
55,348 
37,492 
23,004 
31,106 
81,651 
17.869 

7.170 

2.443 
28,168 

11.705 

11.567 

5.375 

7,012 

2C,G40 

28,226 

4.889 
20,857 
43.322 
14,388 

i7»925 

46,871 

76,870 

8,669 

21,402 

6,369 

10,948 

11,609 

35.919 

9.735 

9,070 

44,379 
9,629 

9,973 
25,872 
26,165 

5,783 

1,884 

10,000 

8,795 

9,709 

19.339 

9,771 

21,525 

35.912 

3.411 

9.657 

8.413 

2,260 

10,808 

15.818 

20,910 

19.939 


£ 

51.758 
13.509 
17,621 

18,951 
38,211 

5,213 
54,520 
37.461 
22,503 
31,163 
83,462 
18,545 

6,905 

2,59^ 
28,688 

11,445 
12,104 

5.447 
6,441 
18,493 

27,5-0 

4,90« 

20,452 

41,640 

14.437 
17,2« 


£ 
5».4'9 

i:,45> 

18. '^'7 

6.5^5 


4«».r) 


46,9:*  *5'^^ 

75,2«   -y4 

^^^^"^ 

6,SH 

H.313 
13,116 

32,885 

9,381 

8,794 
43,927 

8,670 
10,090 
25.715 
26,134 

5,633 

1,747 
10,164 

8,660 
10,645 
20,015 

9.5*1  I 
21,310  I 
35.757  i 

3.246! 

9,261  ■ 

10,527 1 II'-!; 
15,549 '  '4'^:^ 
,9,874  ^»^f 
20,179  »?•  ' 

re 


25»3'' 

2i,*5: 


5" 


2.1  J- 


WBBJLLT   BBT0RNB  OF  BANKS  OV    IBSm. 


1169 


NAME  OF  BANK. 


ii6 
117 
Ii8 
119 
120 
1:1 

I2Z 

114 

126 
U7 
ii8 
129 
130 
131 
131 
^33 
134 
»35 
136 

^37 


Thornbury  Bank 

TiTerton  and  Devonshire  Bank  ...j 
Thrapstone  and  Kettering  Bank.. 
Tring  Bank  and  Chesham  Bank..: 

Towcester  Old  Bank  

Union  Bank,  Cornwall   

Uxbridge  Old  Bank    ' 

Wallingford  Bank   ! 

Warwick  and  Warwickshire  Bank 

Wellington  Bank,  Somerset  

WestKiding  Bank 

Whitby  Old  Bank   

Winchester,  Alresford  &  AltonBk. 

Weymouth  Old  Bank 

Wirksworth  and  Derbyshire  Bk. 
Wisbeach  and  Lincolnshire  Bank 

Wiveliscombe  Bank 

Worcester  Old  Bank  

WolTerham.Bk.— R.  &  W.  Fryer 

Yarmonth  and  Suffolk  Bank 

Tarroontb,  Norfolk,  &  Suffolk  Bk. 
York  Bank 


£ 

10,026 

I3»470 

",559 

13,531 

10,801 

17,003 

25,136, 

17,064 

30.504: 
6,528 

46,158 
14,258 
25,892 
16,461 
37,602 

59.7x3, 
7.602' 

87.448 
11,867 
53.06c 

46,387: 

JOINT  STOCK 


Anthor- 
!2ed 
Issue. 


AYERAGB  AMOUKT. 


Jnlyl. 


£ 

8,214 

9,968 

10,671 

12,695 
5,761 

14,676 
8,005 
5,166 

16.419 

4.136 
37,826 
13,830 
11,683 
13,284 
35,238 
37,3x2 

3,457 
43,974 

8.199 
36,472 

7,292 
35,184 


Julys. 


£ 
7,9c8 

10,135 
10,901 

13,404 

5,714 
13,820 

8,  ceo 

5,627 
16,578 

4,240 
37,940 
14.275 
11,925 
i4,3»5 
35,950 

36,375 
3,466 

45.946 
7,924 

35,755 

7,834 

35^559 


July  16.      July  22. 


Bank  of  Westmorland  

Bamsley  Banking  Company    

Bradford  Banking  Company   

Bilston  District  Banking  Company 

Bank  of  Whitehaven 

Bradford  Commercial  Banking  Co. 
Barton  ,trttoxeter  ,an  d  Staffordshire 

Union  Bankinc:  Co 

Chesterfield  &  N.Derbysh.  Bk.  Co. 
Cumberland  Union  Banking  Co.... 
CoTentry  and  Warwickshire  Bk.  Co. 
Coventry  Union  Banking  Company 
County  of  Gloucester  Banking  Co. 
Carlisle  &  Cumberland  BankingCo. 
Carlisle  City  and  District  Bank  ... 
Dudley  &  West  Bromwich  Bk.  Co. 
Derby  and  Derbyshire  Banking  Co. 
Darlington  Dist.  JointStockBk.Co. 
Gloucestershire  Banking  Company 

Halifax  Joint  Stock  Bank 

Huddersfield  Banking  Company... 

Hull  Banking  Company   

Halifax  Commercial  Banking  Co... 
Halifax  &  Huddersfield  Union  Bk. 

Helston  Banking  Company 

Knaresborough  and  Claro  Bk.  Ca 

Lancaster  Banking  Company 

Leicestershire  Banking  Company... 
Lincoln  and  Lindscy  Banking  Co« 
Leamington  Priors  and  Warwick- 
shire Banking  Co. 

Ludlow  and  Tcnbury  Bank 

Moore  &  Robinson's  Notts.  Bank- 
Nottingham  and  Notts.  BankingCo. 
National  Provincial  Bk.  of  England 
North  Wilts  Banking  Company  ., 


12,225 
9,563 

49.292 
9,418 

32.681 

20,084 

60,701 
10,421 
35,395 
28,734 
16,251 

144,352 
25,61c 

19,972 
37,6i^6 
20,093 
26,134 
» 55,92c 
>8,534 
37,354 
29,333 
»3,733 
44-137 

28,059 
64,311 
86,060 
51,620 

13,875 
10,215 

35,813 

29,477 

442,371 

63,939 


BANKS. 

10,985 


11,099 
46,685 
8,642 
8,820 
27,841 
19,^27 

44,539 
10, 309 
30,137 
13, 65« 
11,549 
93,092 
26,410 
19,281 

25»374 
18,152 
27,459 
135,272 
16,028 
34,201 
28,505 
13,462 
33.180 
1,500 
27,841 
54,809 
54,858 
49,400 

8,859 

9,483 

28,519 

24.582 


9,520 
46,546 

9,654 
29,233 
20,076 

44,804 
ic,790 
31.572 
I4,«77 
12,878 

97,994 
26,310 
20, 161 
26,854 

17,990 
26, 120 

139,548 
16,520 
32,420 
30, 360 
13,373 
33,095 
1,494 
26,744 
55,009 
53,501 
51,216 

9,217 
8,605 
50,099 
25,792 


£ 
7,416 

9,945 
11,005 

13,191 

5,695 

12,669 

8,028 

5,591 

17,185 

4,753 

37,132 

13,982 

11,184 

14,283 

35,893 

35,177 

3,661 

45,991 
8,000 

36,431 

7,927 

35,529 


£ 

7,574 

9,975 

11,267 

13.299 

5,875 
13.263 

8,140 

5,840 
17,335 

4,969 
37,781 
13,850 
11,270 
17,954 
35,636 
33,324 

3,381 
46,303 

8,186 
36,610 

8,173 
33,481 


4»a,754  ,417,274 
39,061      39,662 


11,124 

10,425 

9,522 

9,265 

46,885 

47,239 

9,537 

9,041 

29,739 

28,844 

ao,393 

19,880 

42,875 

39>5^S 

10,316 

9,557 

32,5*0 

32,249 

15,663 

16,050 

11,850 

10,786 

98,930 

100,712 

25,315 

24,375 

19,758 

19,436 

27,469 

26,928 

17,929 

17,260 

23,671 

21,820 

i35»345 

137,216 

16,758 

17,384 

34,260 

35, 'C5 

29,614 

26,38s 

13,106 

12,598 

34,770 

39.250 

1,480 

1,519 

25,370 

25.110 

55,243 

53.465 

51,410 

51,075 

48,962 

48,113 

8,887 

8,042 

9,181 

8,798 

28,999 

29,760 

24,629 

24,292 

4*^495 

412,065 

49,945 

1  42, 520 

Digiti 


izedbyLnOOgle 


1170 


WBBKLT  BBTtTRNS  07  BANKS  OV    ISSUE* 


KAMB  OF  BANK. 


35  Northamptonshire  Union  Bank 

36  Northamptonshire  Banking  Co. 

37  North  and  South  Wales  Bank.. 

38  Fare's  Leicestershire  Banking  Co... 

39  Saddleworth  Banking  Company 

40  Sheffield  Banking  Company 

41  Stamford,  Spalding  &BostonBk. Co. 
4z  StackeT*s  Banking  Company   .. 

43  Shropshire  Banking  Company.. 

44  Stourbridge  and  Kidderminster  Bk. 

45  Sheffield  and  Hallamshire  Bank  ... 

46  Sheffield  &RotherhamJt.StockBk 

47  Swaledale  and  Wensleydale  Bank.. 

48  Wolverhampton  &  Staffordsh.  Bk.. 

49  Wakefield  and  Bamsley  Union  Bk. 

50  Whitehaven  Joint  Stock  Bank    ... 

51  Warwick  and  Leamington  Bk.  Co. 
5a  West  of  Eng.ft  S.Wales  DistrictBk. 

53  Wilts  &  Dorset  Banking  Conopany 

54  West  Riding  Union  Banking  Co.... 

55  Whitchurch  and  EUesmere  Bk.  Co. 

56  Worcester  City  and  County  Bk.Co. 

57  York  Union  Banking  Company  ... 

58  York  City  and  County  Banking  Co 

59  Yorkshire  Banking  Company 


Anthor- 
iMd 
iBSae. 


84,356 
26^01 

^3.95' 

59.300 

8,122 

35,843 
55.721 
35^,976 
47,951 
56,830 
23.524 
52,496 
54.372 
35.378 
14,604 
31,916 
37,124 
83,535 
76,162 

34.029 

7,475 

6,848 

71,24c 

94.695 

122,532 


AYSBAGB  AMOmnr. 


July  1.       July  8.       Jidy  15.     Jolj  2£ 


£ 

58.813 

20,903 

58,985 
50,920 

335 

36,893 

47,330 

284,693 

27,394 
47,804 
24,727 
52,378 
49,008 

21,135 
14,476 
23,428 
23.866 
78,047 

67,79» 
33 » 224 

4,529 

6,144 

69,679 

92,262 

118,546 


£ 

61,185 
21,405 
58,469 
52,885 

.  335 

36,916 

46,859 

289,675 

I  39,396 

I  49,630 

23,385 

54,664 

48,055 

21,760 

14.338 

22,835 

H.374 
80,434 
69, 820 

34,750 

4,475 

5.920 

70,605 

89.747 

120,500 


£ 
60,988 
20,255 
58,047 
52,*59 
335 
35,438 
42,516 
288,064 
38,446 
50,9*0 

22, 060 
51,086 

47,88a 

25,791 
14*356 
22,374 
24.598 

82,2C3 

7i,a43 

33.714 

4,467 

5,8«o 

70,595 

87,825 

120,721 


1      X 
'  60.517 
'  19,855 
1  56,620 

'  Si>>30 
335 

i  33,^35 

288,6^0 

L39,c<5 

;  5o,C4=> 

j  22,515 

51. 2n 

j  46.963 

25*  25** 

I4,cfr 

'   22,4J4 

23.9-? 

,  79, in 

74.'>'' 

33,^*^ 

!    4,1-^^' 


4  ' 
'122.  So^ 


f 


\x\^  aitbi  ^rottlbICtrniIattonlSUturn& 

Average  Circulati<m,  and  Coin  held  by  thelKisn  and  Scotch  Bxsk^s  in§  (i*  fo^ 
weeke  ending  Saiurdag^  the  ^Ath  day  qfJwUf  1865. 

IRISH   BANKS. 


NAMB  OV  BANK. 


— 1 

Bank  of  Ireland 

Provincial  Bank  of  Ireland. 

Belfast  Bank   ! 

Northern  Bank  

Ulster  Bank 

The  National  Bank 

Totals  (Irish  Banks) 


Authorised 
CimUtioB 


X 

3,738,428 
927,667 

281,611 

243,440 
311,079 
852,269 


Armngn  CireuUcioii  duiag  F«mr  W  mkA 
cndiBf  ••  above. 


'.T 


vpwuds. 


£ 
',590,725 
380,861 

124,395 
102,654 

156,059 
604,576 


«BtaL 


£ 
980,725 
449t598 
285,543 
234,714 
271,138 

537«419 


8 


Bank  of  Scotland   

Boy al  Bank  of  Scotland    ... 

British  Linen  Company 

Commercial  Bk.  of  Scotland] 
National  Bank  of  Scotland.. 
Union  Bank  of  Scotland  ... 
Aberdeen  Town  and  Co.  Bk. 
North  of  Scotland  Bk.  Co... 
Clydesdale  Banking  Co.  ... 

City  of  Glasgow  Bank  

Caledonian  Banking  Co.  ... 

Central  Bank  of  Scotland... 

ToTAiB  (Scotch  Banks)... 


6,354,494^ 

COTC 

300,485 

2i6,45« 

438,024 

374,88c 

297,024 

454,346 

70,133 

154.319 

274,321 

72,921 

53,434 

42,933 


2,959*270  |2,759>i57 

BANKS. 


£ 
4c3,2i5 

l62.f:*j 

5,718,427  la,o7*.r^5 


£  I 

2,571.450  • 

830,459  , 

409,938  ' 

337,368  I 

427,197  1 

1,142.0*5  ■ 


2,749»27» 


1  '^9.560 

327,419 

1  210,168 

342,491 

1  176,345 

321,505 

189,973 

360,223 

164,106 

309,960 

t  199.289 

381.835 

61,902 

80,499 

1  104,582 

117,148 

132.829 

236,817 

127,993 

a20, 968 

24,656 

48,778 

24,131 

38.C60 

|i»5«5.534  U,7i>6,203 

Digitized  by 


496,979 
552.659 

497, 850 
550, 196 
474,066 
581,124 
142,401 
221.731 
369.645 
348,061 

73.434 
6z6,9l    I 


581.  W-" 
4l**3» 


4,37', 737  . 
LnOOgle 


2,4^5.-: 


•-f^ 


CIRCULATION  RETURNS.  1171 

SUMMARY  OP  WEEKLY  RETURNS  OP  BANKS  OP  ISSUE. 


7  Frivftte  Banks 

9  Joint-Stock  Banks 

5  Totals 


Ffxedlssaes, 


July  1.      I     July  8.      I     July  16. 

£2,859,192  £2,912,170  .£2,890,344 

2,738,491      2,782,170      2,765,853 


7,415.408  I   5.597,683  ;    5,694,340  1   5.^5^.197 


July  22. 
£i,866,667 

2,750.  U5 


5,616,802 


^rraqf  Weekly  Circulation  of  these  Baxiks  for 
jiDiith  ending  July  22nd  :— 

atcBauka       j53,882,093 

t-Stock  Banks 2,769,163 

rasrc  Weekly  Circulation  of  Private 
■1  Joint-Stock  Banks  ending  as 

uvo       £5,641,266 

1  a  compariflon  of  the  above  with  the  Returns 
hti  month  ending  June  34th  last,  it  shows  :— 
Vo-eiiM  in  the  notes  of  Private 

aks  of. £14,679 

%irra»f  in  tho  notes  Gf  Joint-Stock 
kaks,of...        12,074 


»Uil  d&create  on  the  month ... 


£2,605 


And   as  comi5ared  with  tho  month  ending 
July  23nl,  18*4,  it  shows  :— 
A  decrease  in  the  notoi  of   Privato 

Banks,  of £227,956 

II  decrease  in  the  notes  of  Joint-Stock 

Banks,  of 136,063 

Total  deereate,  as  compared  with  the 

same  period  of  last  year       £364,019 

The  fmlowing  is  the  comparative  state  of  the 

circulation  as  regards  the  fixed  issues  :— 

The  Private  Banks  are  below  their 
fixed  issues        £1,907,068 

The  Joint-Stock  Banks  are  below  their 
fixed  issues        487,095 


Total  BZLOW  their  fixed  issues       ...  £1,774,153 


SUMMARY  OF  IRISH  &  SCOTCH  RETURNS  TO  JULY  22,  1865. 


Ld  Rotoms  of  Circulation  of  the  Irish  and 
i/.'h  Banks  for  the  four  weeks  ending  Ju^y 
1  when  added  together,  give  the  following  as 
average  weekly  circulation  of  those  Banks 
•ng  the  paKt  month,  viz. : 
r.«o  Circulation  of  the  Irish  Banks  £5,718,427 
ra^'c  Circulation  of  the  Scotch  Banks  4,371,737 

iU  ATcrage  Circulation  of  these  banks 

>T  tLe  past  month     £10,090,161 

n  comparing  these  amounts  with  the  Returns 
the  mouth  ending  24th  June  last,  they  show — 
reaMin the  Circiuatlonof Irish  Banki»  £43, 7S1 
reaseintheCirculatio&ofScotchBanksl86,969 


^tal  decrease  on  the  month 


£229,760 


nci  as   compared  with  the  month  ending 
•23rd.  1B64,  they  show— 
^'•mo  in  theCircnlation of  Irish  Banks  £372,992 
re&se  mtheCircuIationof  Scotch  Banksl21,265 


vul  increase  on  the  year £40i,247 


The  fixed  iMues  of  tho  Irish  and  Scotch  Banks 
at  tho  present  time  are  given  in  the  Bankiiuf 
Almnnne,  as  follows : — 

e  BankBinIreland,allowod to  issue...  £6,364,494 
12  Banks  in  Scotland,  alio  wed  toissue     2,740,271 

18  Banks  in  all,  allowed  to  issue  £9,108,765 

The  following  appears,  therefore,  to  he  the 
comparative  state  of  the  circulation  :— 
Irish  Banks  are  below  their  fixed  issue     £636.067 
ScotchBanks  are  above  their  fixed  issue  1,622,466 

Total  above  the  fixed  issue  £^69,999 

The  amoimts  of  Gold  and  Silver  hold  at  the 
head  offices  of  the  several  banks,  during  the  past 
month,  have  been  as  foUows :— 
Gold  and  Silver  held  by  the  Irish  Banks  £2,078,443 
GoldandSilverheldbythe ScotchBanks  2,408,292 

Total  of  Gold  and  Silver  Coin. i&i,486,7S5 

Being  an  increase  of  £2,012  on  the  part  of  the 
Irish  Banks,  and  a  decrease  of  £82,457  on  the 
part  of  the  Scotch  Banks,  on  the  several  amounts 
held  by  tliem  during  tho  preceding  month. 


CIRCULATION  OF  THE  UNITED  KINGDOM  TO  JULY  22,  1865. 

1*he  following  is  the  state  of  the  Note  Circulation  of  the  United  Eiugdom  for  tho  month  ending 

^"-M  July,  1866:— 

'ilatiou  of  Notes  for  the  Month  ending  22nd  July,  as  compared  with  the  previous  month  :^ 


^  of  Kngland  (month  ending  July  19) 

•ate  Banks  

it-Stock  Bonks 

*;  in  Enjlond 

••^tiil , 

::iiui   


June  24.      I 
£30,877,112 
2,896,772  I 
2,747,088  I 


July  22. 
£21,993,547 
2,882,093 
2,759,162 


26,520.972 
4,067,706 
6,762,208 


27,634,802 
4,371,737 
6,718,427 


Increase. 
£1,116,435 

12,071 


1,129,009 


Decrease. 
£14,679 


14,679 
185,969 
43,781 


Pnited  Kingdom £36,840,880       £37,721,968  1,128,609  244,429 

j'^io  comparison  of  the  month  ending  July  23rd,  1S64,  with  the  month  ending  July  22nd,  1865, 
■""  ui  increate  in  the  Bank  of  England  circulation  of  £658,137,  a  deereame  in  Private  Banks  of 
'  *<A,  and  a  dserecue  in  Joint-Stock  Banks  of  £136,003 ;  being  a  total  inereaee  in  England  of  £294,118 ; 
'  --.  ui  Scotland  there  is  an  increaee  of  £121,256;  and  in  Ireland  an  incrfoae  of  £372,992.  Thus 
'•^iif  that  the  month  ending  22nd  July,  as  compared  with  the  same  T>eriod  last  year,  presents  on 
'-;'"'  of  £294,118  in  EttffUind,  and  an  increase  of  £788,365  in  the  UnUed  Kingdom. 
^Ii6  return  of  Bullion  in  the  Bank  of  England,  for  the  month  ending  July  10th,  gives  aa 
^  >'ate  umotmt  in  both  departments  of  £15,774,689.  On  a  comparison  of  this  vrith  the  Return  for 
'•-mth  ending  June  21st,  there  appears  to  be  a  decrease  of  X235,232;  and  an  increase  of  £2,024,356 
'  T'P*'**  with  the  some  period  last  year. 

i':c  stock  of  specie  held  by  the  Banks  in  Scotland  and  Ireland  during  tho  month  ending  22nd 
y  \7as  £4,486»786 ;  being  a  decrease  of  £80,416  as  compared  with  the  Return  of  the  previona 
uui,  ud  an  mctcom  of  £258,984  oa  compared  with  the  corresponding  period  last  year. 

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THE  BAMER8'  MAGAZINE, 

AND 

|0ttrnal  0f  il^t  ptomjy  P^  arkd. 


OCTOBEB,  1865. 


THE  NEW  LAW  OF  PARTNERSHIP. 
Iw  our  August  number,  we  expressed  our  doubts  jconcerning 
some  of  the  provisions  contained  in  the  new  act  to  amend  the 
law  of  partnership.  We  stated  that  our  chief  objection  was 
the  element  of  uncertainty  which  the  new  measure  will  intro- 
duce into  transactions  with  such  private  firms  as  may  avail 
themselves  of  the  facilities  it  gives  for  the  admission  of  dormant 
or  annuitant  partners.  The  statute  specifies  certain  acts  which 
shall  not  of  themselves^  make  the  persons  doing  them  responsible 
as  partners  in  the  undertaking.  These  acts  are  the  advance  of 
money  on  a  contract  to  receive  a  share  of  the  profits,  or  a  rate 
of  interest  varying  with  the  profits ;  the  acceptance  of  a  share 
of  profits  as  remuneration,  by  a  servant  or  agent;  the  receipt 
of  annuity  by  the  widow  or  child  of  a  deceased  partner,  or  by 
the  vendor  of  a  business  who  takes  a  portion  of  profits  in  pay- 
ment for  good  will. 

We  ofler  no  apology  for  thus  speedily  recurring  to  a  subject 
so  important.  Nor  need  we,  after  our  repeated  expressions  of 
approval  of  the  principle  of  limiting  the  risks  of  joint-stock 
shareholders,  assure  our  readers  that  we  are  by  no  means  unwilling 
to  see  it  adopted  by  private  firms.  What  we  complain  of  is  the 
uncertainty  in  which  creditors  will  be  left  by  the  new  law. 
A  working  man  of  business,  who  is  known  not  to  have  sufficient 
capital  for  the  trade  he  is  doing,  every  day  gets  credit,  because 
SolidsideB  is  known  to  have  a  share  in  the  concern,  or  because 
the  Oolden  Dustman  has  come  in  as  sleeping  partner,  or  because 
Sir  Peter  Plutus's  buxom  yoimg  widow  is  ^own  to  draw  quite 
a  haadsome  income  out  of  the  profits  of  the  firm  of  which  her 

▼OL.  XXV.  90 


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1174  The  New  Law  of  Partnership. 

late  husband  was  for  so  many  years  the  head.  Hitherto,  the«? 
excellent  and  wealthy  people  have  been  the  creditor's  trust,  and 
the  ti'ader's  stay,  but  now,  when  anything  goes  wrong,  it  mar 
come  out  that  they  have  been  wise  in  their  generation,  and  that 
by  a  secret  back-stairs  arrangement  they  have  limited  their 
risk  to  a  certain  sum  agreed  upon  between  the  working  mem- 
ber of  the  firm  and  themselves.  There  will  of  course  be  some 
cases  in  which  the  creditors  will  have  no  right  to  complain  of 
the  loss  in  which  they  are  thus  involved.  But  there  will  te 
many  others  in  which,  with  greater  or  less  justice,  they  will  be 
able  to  protest  that  they  have  been  deceived  all  along,  and  that 
they  would  never  have  parted  with  their  goods  or  their  money, 
had  they  not  supposed  they  had  all  the  estate  of  the  more  opu- 
lent partners  to  fall  back  upon  This  will  naturally  lead  to  a 
number  of  attempts  to  show  that  the  "  limited,*'  or  as  we  nay 
henceforth  call  them,  the  protected  partners,  have  done  some- 
thing to  forfeit  their  statutory  protection,  and  what  is  or  is  not 
an  act  sufficient  to  entail  this  consequence  will  be  contrated 
at  nisi  prius,  argued  in  banco^  discussed  in  the  Exchequer 
Chamber,  and  finally,  after  an  indefinite  amount  of  anxit^?* 
uncertainty,  and  expense,  decided  in  whole  or  in  part  by  sb 
appeal  to  the  House  of  Lords.  And  after  this  little  game  ha* 
gone  on  long  enough.  Parliament  will  begin  to  think  of  a 
remedy  for  the  evil,  and  will  enact  at  last,  as  it  ought  to  have 
done  at  first,  that  every  co-partnership  on  the  new  basis,  shall 
have  the  word  "  limited  '*  at  the  end  of  its  title,  and  shall  be 
compelled  to  register  the  names  and  shares  of  every  oBe  in- 
terested, the  proportion  of  profit  he  draws,  and  the  amount  ot 
protected  capital  which  he  has  invested. 

We  have  no  hope,  however,  that  the  legislature  will  show  any 
undignified  haste  m  supplying  its  own  omissions.  As  the  evik 
which  Lord  Tenterden's  Act,  and  the  Mercantile  Law  Ame»l- 
ment  Act,  were  designed  to  cure,  had  subsisted^  greatly  to  the 
advantage  of  the  learned  and  long-robed  professicm,  for  yc^ 
after  any  attempt  to  defend  them  had  been  given  up,  so  will  the 
crop  of  legal  difficulties  which  the  new  law  may  be  expected  tj 
mature,  remain  unsolved  until  some  great  and  peculiarly  hard 
case  shall  satisfy  futuie  Melboumes  that  the  matter  can  c*^ 
longer  be  safely  let  alone.  The  question  whether  the  jtfotcctea 
partners  have  done  any  act  to  forfeit  their  protection,  wUl  aomj^ 
times  be  one  of  law  for  the  judge,  but  will  far  more  frequently 
be  one  of  fact  for  the  jury,  whose  decision  will  vary  with  tkir 
sympatliies  and  their  prejudices,  so  as  to  add  yet  anothtr 
element  of  confusion,  to  the  glorious  uncertainty  of  the  lav- 
Misera  est  servitm  ubijus  est  aut  vagum  out  incertum,  isaroaxim 


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The  New  Late  of  Partnership,  1175 

of  which,  we  doubt  not,  we  shall  be  pretty  frequently  reminded 
in  connection  with  this  subject.  The  protected  partners  may 
sometimes,  in  legal  phrase,  estop  themselves  from  setting  up 
the  limitation  of  their  risk,  by  some  immistakable  act,  as  by 
joining  in  a  deed,  a  bill,  or  other  security.  As  regards  the  parties 
to  such  instruments,  these  acts  will  be  conclusive  to  fix  the 
ability  of  those  who  might  otherwise  claim  exemption.  And 
other  acts  may  have  the  same  effect  as  against  all  the  world,  as 
if  they  allowed  their  names  to  appear  as  partners ;  if  they  are 
in  the  habit  of  buying,  selling,  or  otherwise  acting  in  such  a 
way  as  to  induce  a  general  belief  that  they  are  members  of  an 
ordinary  co-partnership,  for  here  the  juaicial  rule  clearly  is, 
that  '^  if  a  person  by  a  course  of  conduct,  or  by  actual  ex- 
pressions, so  acts  that  another  may  reasonably  infer  the  exist- 
ence of  an  ordinary  partnership,  whether  the  party  intend  it 
so  or  not,  the  party  so  acting  cannot  afterwanis  gainsay  the 
reasonable  inference  to  be  drawn  from  his  woids  and  conduct." 
We  must  not,  however,  expect  that  the  courts  will  often 
have  to  deal  with  these  clear  and  conclusive  cases.  They  will 
have  to  draw  fine  distinctions,  to  split  hairs,  to  lay  down  scarcely 
perceptible  dividing  lines.  They  will  also  be  governed  in  great 
measure,  by  the  analogy  of  cases  already  decided,  and  therefore 
we  shall  rapidly  glance  at  some  of  the  tests  which  have  been 
held  to  prove  partnership  in  former  days.  The  doctrine  of  the 
leading  case  of  Waugh  v.  Carver ^  in  wbicli  it  was  long  held  that 
the  gist  of  our  partnership  law  was  contained,  may  now  be  re- 
garded as  abrogated  by  statute,  at  least  so  far  as  those  pro- 
tected partnerships  are  concerned.  It  was  laid  down  in  a. very 
celebrated  judgment,  that  he  who  takes  profits  must,  ex  necea* 
sitate  reiy  be  made  liable  to  the  losses.  For  many  years  how- 
ever, the  courts  leaned  in  favour  of  restricting  the  application 
of  this  rule,  and  at  length  in  Wheatcroft  v.  Sickman,  a  most 
elaborate  judgment  was  given  in  the  House  of  Peers  to  the 
effect  that  the  true  test  of  partnership  liability  is  whether  the 
persons  by  whom  the  business  was  carried  on  were  the  agents 
of  those  it  was  sought  to  make  liable  and  authorised  to  pledge 
their  credit.  The  defendants  in  that  case  were  trustees  of  a 
firm  in  difficulties  appointed  to  carry  on  the  business,  and  to 
apply  the  profits,  if  any,  in  reduction  of  the  debts  owing  to  them- 
selves and  the  rest  of  the  creditors.  In  the  course  of  their 
trusteeship,  they  ordered  goods  of  the  plaintiff,  who  knew  the 
capacity  in  which  they  were  acting.  The  trading  proved  un- 
profitable, and  the  plaintiffs  sought  to  make  the  trustees  liable 
as  partners,  because  as  they  contended,  they  were  to  benefit  by 
the  payment  of  their  debts,  and  therefore,  on  the  principle  of 


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1176  The  New  Lmc  of  Partnership. 

Watigh  V.  Carter ^  they  were  liable  as  partners  in  the  concern. 
But,  as  already  stated,  the  attempt  failed  on  the  ground  above 
mentioned,  following  this  decision  was  one  in  which  the  paT- 
ment  of  a  certain  salary  and  10  per  cent,  on  the  profits  was  held 
insufficient  to  fix  the  partnership  liability. 

The  first  essential  of  a  partnership  appears  to  beacommnnion 
of  participation  of  profits  and  loss  arising  both  from  parchase 
ond  sale,  flence,  in  a  transaction  for  purchasing  oil  by  three 
persons  jointly,  they  were  held  not  to  be  partners,  because  they 
w^ere  not  interested  in  the  future  sale.  On  this  principle,  after 
the  railway  mania,  sundry  exceptionally  lucky  proTisional  com- 
mittee-men escaped  liability  on  contracts  entered  into  by  their 
coadjutors  without  their  knowledge  or  consent,  though  the  qne- 
tion  in  such  a  case  as  to  whether  the  defendant  held  himself  oat 
as  responsible  for  the  debts  incurred  is  always  one  for  the  juiT. 
The  same  may  be  said  as  to  the  eflTect  of  the  defendant's  dedar- 
ations  respecting  the  nature  of  his  interest  in  a  ooncern,  ▼hi<^^ 
he  may  have  made  on  'Change,  or  in  the  course  of  bosiness,  or 
even  in  ordinary  conversation,  though  the  presumption  ifl  neces- 
sarily very  much  weaker  in  this  last  case  than  in  the  two  former. 

Persons  have  been  held  partners  by  such  acts  as  these :  Wha 
a  company  had  been  formed  to  work  a  mine  with  a  capital  of 
£30,000,  and  only  £20,000  being  subscribed,  the  defendant  took 
an  active  part  in  appointing  a  director  to  continue  the  echane 
with  the  smaller  amount.  This  was  held  evidence  of  his  having 
authorised  the  board  to  go  on  with  the  smaller  amount  In  the 
same  way  a  member  of  a  building  society  was  fixed  as  partner 
in  an  action  for  building  certain  houses  whose  erection  ha^ 
been  resolved  upon  at  a  meeting  at  which  he  was  present  and 
approving.  So  when  two  merchants  joined  in  certain  consign- 
ments, and  agreed  that  all  commission  on  such  business  shcold 
be  equally  divided,  this  made  them  partners  quoad  hoe. 

Attempts  by  a  protected  partner  to  bind  the  firm  by  «f^- 
ultra  vires,  may  show  that  he  has  ceased  to  rely  on  his  pr<^ 
tion.  As,  if  he  submits  a  dispute  in  which  the  partnership  i"^ 
interested  to  arbitration,  or,  contrary  to  stipulation,  draws  bilb 
on  behalf  of  the  partnership,  these  acts,  though  invalid  as  i^aisi^ 
the  firm,  may  be  sufficient  to  prove  that  he  regarded  \msea. 
and  wished  the  world  to  regard  him,  as  a  partner  in  the  ordinary 
sense  of  the  term.  And  the  same  would  happen  if  he  purchased 
goods  in  the  name  of  the  partnership,  and,  in  fraud  of  his  partner, 
converted  them  at  once  to  his  own  use.  Here,  though  the 
innocent  partner  would  be  liable  to  the  vendee,  the  guilty  one 
would  probably  be  held  no  longer  within  the  statutory  ex«np" 
tion.    The  same  result  might  follow  if  any  protected  partner, 


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Commercial  Influences  of  the  American  War,  1177 

other  than  a  servant  or  agent  remunerated  by  part  of  the  profits, 
were  to  busy  himself  in  collecting  debts,  or  otherwise  asserting 
an  authority  over  the  assets  of  the  concern ;  and  acts  subsequent 
to  a  particular  contract  may  make  such  persons  liable,  as  if  they 
were  to  accept  a  bill  or  otherwise  assume  unrestricted  partner- 
ship liability,  for  their  condition  would  be  different  from  that  of 
partners  newly  admitted,  who  have,  on  the  plea  of  no  considera- 
tion, successfully  resisted  actions  on  biUs  which  they  had  accepted 
for  antecedent  debts  of  the  firm.  In  fine,  we  may  say  that  the 
only  safe  course  for  a  dormant  protected  partner  will  be  to  re- 
frain from  taking  any  active  part  whatever  in  the  management 
of  the  concern,  if  he  would  enjoy  the  privilege  whiclf  the  legis- 
lature has  given  him  of  reaping  many  of  the  advantages  and 
escaping  some  of  the  most  onerous  responsibilities  of  ordinary 
traders.  But  with  agents  remunerated  by  a  portion  of  the 
profits,  this  reticence  will,  of  course,  be  impossible,  and  in  con- 
nection with  them  some  of  the  chief  difficulties  of  the  new  statute 
are  likely  to  arise.  Whether  the  evils  we  anticipate  speedily 
become  intolerable,  will  greatly  depend  upon  the  spirit  in  which 
our  judges  deal  with  the  questions  that  may  arise  under  the  Act, 
but  only  a  very  sanguine  man  will  hope  to  find  that  the  beneficial 
working  of  the  measure  under  notice  has  not  been  largely  impeded 
by  neglect  of  a  very  simple  and  obvious  provision — a  provision, 
be  it  observed,  which  has  already  been  tried,  and  which  is  in 
actual  and  extensive  operation  in  a  class  of  transactions  closely 
analogous  to  those  of  a  private  co-partnership. 


COMMERCIAL   INFLUENCES   OF  THE  AMERICAN  WAR. 

The  American  war  being  ended,  it  will  be  useful  to  consider 
its  influences  on  the  great  branches  of  American  commerce, 
that  hereafter  we  may  be  better  able  to  predict  the  business 
consequences  of  any  great  European  struggle  in  which  we,  or 
others,  may  engage.  When  the  war  began,  and  indeed,  gene- 
rally throughout  its  continuance,  it  was  regarded  from  two 
distinct  points  of  view  on  this  side  of  the  Atlantic.  There  were 
those  who  judged  of  the  probabilities  of  the  case ;  and  there 
were  those  who  took  their  stand  on  past  experience.  In  some 
cases  it  might  be  said  that  probability  and  experience  were  com- 
bined, but  they  were  exceptional :  public  writers  and  others,  in 
the  main,  ranging  themselves  either  on  the  side  of  theory  or  ex- 
ample. One  of  the  most  frequently  quoted  instances  was 
France,  when  Law  seduced  our  neighbours  into  extravagances 
and  delirium.      Mr,  Chase's  banking  project  was  the  conversion 


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1178  Cofnmercial  Influences  of  ihe  American  War, 

of  the  General  Bank  into  the  Royal  Bank ;  the  petroleiim  a&d 
contracts,  his  Indian  Company,  and  Mississippi ;  and  Wall 
Street  the  veritable  Rue  Quincampoix.  The  blackness  of  dark- 
ness was  said  to  be  before  him.  As  long,  it  was  m^ed,  as  the 
sea  is  smooth,  the  tiniest  baric  may  float  upon  its  bosom,  but 
when  the  tempest  blows,  the  staunchest  ship  strains  and  creaks, 
and  skilful  seamanship  alone  saves  it  from  destmction.  Mr. 
Chase  was  a  heretic,  occupied  in  the  stupid  work  of  piling 
faggots  for  his  own  sacrifice ;  of  driving  stakes  for  his  own 
pinioning,  that  when  the  advancing  tide  touched  high  water 
mark,  all  would  be  over  with  him.  And,  it  was  continued,  what 
else  could  be  looked  for  from  America :  all  economic  wisdom 
being  supposed  to  dwell  at  Birmingham  or  in  Manchester  T  On 
the  other  hand,  the  gentlemen  of  theory,  those  who  never  saw 
America,  or  if  they  ever  saw  it,  knew  so  little  of  its  strong 
national  feeling,  of  its  dogged  resolution,  and  withal  of  its  stiirdy 
honesty,  at  bottom,  that  ghosts  and  goblins  were  constantly  be- 
fore them,  looked  forward  to  counter  revolutions,  anarchy,  op- 
risings  of  the  blacks,  and  with  the  triumph  of  the  Confederate 
arms  an  instant  repudiation  of  the  unsound  and  unstatesman- 
like  expedients  of  the  United  States  treasury.  According  to 
those  gentlemen,  things  had  been  done  which  ought  not  to  have 
been  done  ;  and  of  all  sins,  financial  sins,  they  said,  carry  with 
them  the  surest  punishment.  What  would  haj^n  when  Qeneral 
Lee  crossed  the  Potomac  a  conqueror  T  The  rotten  fabric  of 
shoddy  rearing  would  tumble  down,  and  the  shock  would  be 
felt  across  the  length  and  breadth  of  Europe* 

If,  however,  it  is  the  case  that  few  if  any  Englishmen  were 
sufficiently  comprehensive  in  their  views  of  the  American  war, 
it  is  not  less  true  that  the  Americans  were  few  and  far  between 
who  saw  their  way  through  the  haze  of  greenbacks,  certificates 
of  indebtedness,  bonds  bearing  various  rates  of  interest^  and 
available  for  different  purposes.  Indeed  it  is  true  that  several 
intelligent  Americans,  officially,  semi-officially,  and  otherwise, 
found  their  way  to  England  for  information,  and  carried  back 
with  them  to  New  York  and  Washington,  all  the  standard 
treatises  on  currency  and  banking,  and  as  many  1812  and  later 
pamphlets  as  the  second-hand  booksellers  could  lay  hands  up(m. 
Ifor  is  it  to  be  overlooked  that  so  utterly  at  sea  were  the 
Americans,  that  the  last  appointment  to  the  treasury  turned 
on  the  names  of  the  nominees,  as  if  the  accident  of  name  might 
confer  virtue ;  as  if  a  second  M*Culloch  were  to  be  formed  at 
the  mere  will  of  President  Johnson.  The  circumstances  were 
unusual,  unprocedent,  perplexing ;  and  the  requirements  stag- 
gering.    The  greatest  conflict  that  history  reconls,  or  that  ever 


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Commereial  Influences  of  the  American  War.  1179 

may  occur  again,  was  in  progress  literally  deluging  the  earth 
with  blood,  and  demanding  sacrifices  of  life  and  treasure  which 
no  doubt,  would  not  have  been  made  at  all,  could  their  extent 
by  any  chance  have  been  ascertained  before.  So  alike  on  both 
sides  of  the  Atlantic  men's  judgments  failed  them;  either 
because  the  sagacity  or  the  faculty  was  wanting,  to  deal  with  a 
problem  of  greater  breadth  and  depth  than  ever  had  been  pre- 
viously submitted  to  human  reason.  Fortunately  for  the 
interests  of  the  commercial  world,  it  has  turned  out  that  the 
resources  of  the  United  States  have  proved  equal  to  the  occa- 
sion, and  that  the  policy  of  small  expedients  suggested  by 
common  sense  has  not  been  so  much  astray  as  to  create  con- 
fusion. The  war  is  ended,  and  the  atmosphere  of  commerce 
has  regained  much  of  its  usual  quiet.  No  great  panic  or  revul- 
sion has  followed  its  eventful  close,  and  with  the  exercise  of 
common  prudence  none  is  likely  to  arise. 

A  very  good  general  apprehension  of  the  commercial  in- 
fluences of  the  war  may  be  gathered  from  a  few  well-ascertained 
figures,  accompanied  by  such  matter-of-fact  remarks  as  the 
figures  may  require.  At  the  following  dates  gold  stood  at 
certain  premiums,  and  certain  sixteen  commodities  presented 
certain  market  values  at  those  dates.  What  then  was  the 
fluctuation  in  gold,  and  what  the  fluctuation  in  the  sixteen 
commodities'  ?     The  figures  are  : — 

Grold  Premium. 
March,  1862  ...        1\ 

March,  1863  ...       54 

March,  1864  ...       59 

Dec.,  1864  ...    1.25 

Here,  then,  is  not  a  very  rapid  advance  in  gold,  and  not  a 
very  rapid  advance  in  the  market  value  of  sixteen  articles  ;  for 
we  are  told,  on  the  authority  of  Mr.  Senator  Woodbury,  secretary 
of  the  treasury,  that  during  the  first  American  revolutionary 
war  the  depreciation  of  notes,  and  of  course  the  appreciation  of 
gold  and  commodities,  was  in  the  following  rates  :  — 

March    1,1778  1  dollar  in  coin  =  $1.75  in  paper. 

Sept.      1, 1778  1  dollar  in  coin  =  4.00  in  paper. 

March    1, 1779  1  dollar  in  coin  =  10.00  in  paper. 

Sept.      1, 1779  1  dollar  in  coin  =  18.00  in  paper. 

March  18, 1780  1  dollar  in  coin  =  40.00  in  paper. 

Dec.       1, 1780  1  dollar  in  coin  =  100.00  in  paper. 

May       1, 1781  1  dollar  in  coin  =  500.00  in  paper. 

1  dollar  in  coin  =  1,000.00  in  paper. 

From  March,  1862,  to  December,  1864,  and  from  March, 
1778,  to  May,  1781,  are  much  the  same  intervals,  and  yet  the 
gold  premium  in  the  first  case  was  as  ^1.25 — in  other  words 
$2.25  in  notes  had  to  be  paid  for  $1  m  coin;  while  in  the 

Digitized  by  LnOOQ IC 


16  Articlea. 

Hise  per  cent. 

$241.30 

— 

383.55 

60 

546.56 

130 

709.19 

194 

1180         Commercial  Influences  of  the  American  War. 

second  case  §1,000  in  notes  was  the  equivalent  of  $1  in  coin* 
The  difierence  is  the  measure  of  the  relative  intensity  of  the 
monetary  disturbance  at  the  two  periods.  In  1781  the  North 
American  colonists  were  in  the  condition  of  the  Confederates  a 
year  and  a  half  ago ;  the  currency  worthless,  regular  busiaess  at 
an  end,  and  the  army  kept  in  the  field  by  forced  supplies.  On 
the  other  hand,  in  December,  1864,  the  Americans  proper  were 
in  easy  circumstances,  actuedly  charging  more  for  everything 
they  sold — their  Libour  included — ^than  they  had  any  right  to 
do ;  for  the  figures  quoted  show  that  while  gold  had  advanced 
125  per  cent.,  the  aggregate  of  sixteen  commodities  shows  m 
advance  of  no  less  than  194  per  cent.,  a  superfluous  advance  of 
69  per  cent.  No  doubt  some  one  pavs  the  piper  :  but  who  pap 
him  ?  Not  the  tens  of  thousands  of  labourers,  mechanics,  and 
others  who  have  been  enabled  to  commence  business,  to  engage 
in  market  gardening,  or  to  become  farmers.  Not  the  farmers 
who  have  had  the  means  of  increasing  their  acreage,  and  adding 
to  their  flocks  and  herds.  Not  the  brokers,  bankers,  ecu- 
tractors,  and  capitalists,  endless  numbers  of  whom  haveaocamn- 
lated  substantial  fortunes.  The  sufferer  is  the  nation  in  its 
collective  sense,  and  the  measure  of  its  suffering  is  the  debt 
contracted  in  its  name.  That  debt  there  is  no  use  repudiating, 
and  its  burden  will  fall,  like  our  debt,  on  future  genentioQa. 
Thus,  in  a  certain  sense,  the  war  may  be  even  said  to  have  done 
some  good  ;  inasmuch  as  it  has  enabled  many  to  climb  to  social 
eminence,  independence,  and  comfort,  who,  without  it,  would 
have  been  struggling  as  before.  The  sixteen  conmiodities  and 
their  prices,  to  wHch  reference  has  been  made,  are  the 
following : — 

March,  1862.  March,  186S. 

Cordage  MiniUa $9.00  to  $10.00  $18.00  to  18i» 

Indigo  1.25  to  2.50  2.00  to  2.85 

Coffee,  Rio,  100  lbs 17.26  to  19.50  80.50  to  3i«) 

India  Rubber 48  to  .50  .85  to  87 

Gummy  cloth,  100  yarda 11.00  to  11.60  16.00  to  16."5 

Hides,  Rio,  100  IbR 21.00  to  21.60  30.00  to  31^ 

Plaster  of  Paria 1.50  to  1.75  3.60  to  8.r5 

Leather,  out,  mid. 27.00  to  30.00  40.00  to  4100 

Mahogany    35.00  to  45.00  46.00  to  55.00 

Molasses,  20  gallona 50  to  .65  .45  to  ij 

Silk,  raw 5.00  to  6.50  10.00  to  10£ 

Cassia,  100  lbs 31.00  to  32.50  45.00  to  4e.0O 

Gin   26.00  to  27.00  65.00  to  WJlJ 

Sugar,  Cuba,  100  lbs 6.87  to  8.76  9.26  to  a* 

Tin,Banca  30.00  to  32.00  66.00  to  saOO 

Spelter     6.50  to  6.70  9.00  to  9^ 

$228.35  to  254.26  $370.65  tojggg 

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Commercial  Influences  of  the  American  War.        1181 

March,  1864.  December,  1864. 

Cordage,  MiniUa    !^19.00  to  20.00  $24.00  to    26.00 

Indigo  1.60  to  2.50  2.60  to      3.00 

Coffee,  Rio,  100  lbs 36.00  to  37.50  44.00  to    48.00 

India  Rubber 83  to  .85  1.16  to      1,20 

Gummy  doth,  100  yards 15.50  to  15.75  20.50  to    21.00 

Hides,  Rio,  100  lbs 29.60  to  30.00  31.00  to    32.00 

Plaeter  of  Paris 3.25  to  3.60  4.50  to      4.80 

Leather,  out,  mid 45.00  to  47.00  49.00  to    52.00 

Mahogany   100.00  to  150.00  75.00  to  110.00 

Molasses,  20  gallons 70  to  .80  1.10  to      1.27 

Silk,  raw 9.50  to  9.75  14.00  to    15.00 

Cassia,  100  lbs 62.50  to  65.00  100.00  to  105.06 

Gin   103.00  to  110.00  210.00  to  215.00 

Sugar,  Cuba,  100  lbs 12.26  to  14.75  16.26  to    22.25 

Tin,Baiica  56.00  to  57.00  70.00  to    72.00 

Spelter 12.60  to  13.00  16.00  to    15.50 

$516.13  to  577,00  $679.11  to  739.27 

From  March,  1864,  until  December,  1864,  when  the  premium 
on  gold  was  59  per  cent.,  and  the  premium  on  the  sixteen  com- 
modities 130  per  cent.,  the  actual  crisis  of  the  war  is  covered; 
for  in  the  words  of  a  well-known  American  writer,  "  The  un- 
certainties that  attend  the  election,  the  publication  of  the 
annual  reports,  the  assembling  of  Congress,  the  new  projects  for 
increasing  the  taxes,  and  their  probable  influence  upon  the 
value  of  and  the  demand  for  goods,  together  with  the  anxieties 
in  relation  to  military  operations  and  their  possible  influence, 
in  combination  with  the  treasury  measures  for  raising  money 
upon  the  value  of  goods  have  all  tended  to  paralyze  enterprise 
the  more  so  as  a  new  draft  for  300,000  men  was  announced 
towards  the  close  of  December."  No  wonder  that  such  an 
extraordinary  complication  advanced  gold  from  59  per  cent,  to 
125  per  cent.,  and  commodities  from  130  per  cent,  to  194  per 
cent.  It  is  a  curious  circumstance,  that  the  advances  did  not 
more  readily  suggest  this.  That  before  we  venture  to  predict 
the^commercial  influences  of  war,  we  should  be  well  assured  of 
the  resources  of  the  people  and  of  the  basis  on  which  rest  the 
expedients  of  the  treasury  and  the  shifts  of  the  banks.  Then 
we  may  theorise  as  we  please,  and  fortify  our  theories  with  the 
experience  of  former  times.  Had  our  American  information 
been  such  as  it  now  is,  men  wouloLhave  been  spared  committing 
themselves  to  the  realisation  of  impossible  and  absurd  prophecies. 

{To  he  continued.) 
♦        — 


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1182 


THE  CLEARING  SYSTEM. 

To  the  Editor  of  the  <"  Bankers'  Magazine," 

Sir, — It  will  hardly  have  escaped  the  observation  of  readers  of  the 
*'  Bankers'  Magazine/'  that  banking  extension  in  the  Metropolis  ka^ 
within  the  laat  few  years,  assumed  a  new  character.  Formeriv, 
all  the  banks  were  clustered  in  and  around  Lomb&rd  street,  or  in  the 
immediate  neighbourhood  of  Temple  Bar.  Those  outside  this  com- 
panionship might  be  reckoned  on  the  fingers.  It  Ls  obvious  that  by 
this  arrangement  vast  numbers  of  persons  whose  business  happened 
to  lie  at  a  distance  from  the  "  city  of  gold  "  were  debarred  from  the 
advantages  derived  from  keeping  a  banking  account,  and  the  banb 
thereby  lost  much  sound  and  valuable  business.  This  £auct  does  not 
seem  to  have  attracted  the  attention  of  the  private  bankers,  or  if  it 
did,  they  did  not  care  to  act  upon  it ;  but,  with  the  rise  of  tk 
joint-stock  system  and  consequent  increase  of  competition  amongst 
bankers,  came  a  change  of  practice  :  the  experiment  was  tried  of 
bringing  the  bank  to  every  man's  door,  and  thereby  creating  a  great 
deal  of  new  business,  of  a  different  claAS,  it  is  true,  to  the  accounts  of 
the  old  first-class  merchants  and  traders,  but  still  well  worthy  of  the 
attention  of  bankers.  How  successful  the  experiment  has  been  may 
be  judged  by  the  number  of  branches  the  joint-stock  banks  have 
established,  in  fact,  it  may  now  be  said  that  scarcely  a  district  of 
importance  is  without,  at  least,  one  bank.  Bayswaterand  Limehoase, 
Kensington  and  Camden  Town,  Pimlico  and  St.  John's  Wood,  have 
all  their  branch  banks ;  and  within  the  last  year  or  two  some  eight 
or  ten  have  been  opened  at  the  West  End  of  London,  there  being 
now  nearly  forty  separate  offices  west  of  Temple  Bar. 

There  can  be  no  difference  of  opinion  as  to  the  advantages  the 
public  derive  from  the  extension  of  the  area  of  banking  accommo- 
dation. The  banker  also  reaps  considerable  benefit  from  newaocoante 
from  which  he  was  formerly  shut  out  by  reason  of  distance^  To  the 
old  banks  however,  this  extension  can  hardly  be  said  to  be  a  boon; 
not  only  are  they  subjected  to  the  competition  of  the  new  estabUah- 
ments,  but  they  have  entailed  upon  them  additional  labour  aofi 
expense  in  the  performance  of  the  very  important  duties  of  collection 
ikc.  It  is  to  the  system,  or  rather  want  of  system,  in  the  coilection 
of  cheques  and  bills  on  non-clearing  bankers  that  I  wish  to  call  the 
attention  of  the  banking  community,  with  a  view  to  the  initiation  of 
some  method  to  supersede  the  present  antiquated,  clumsy,  and  dila- 
tory plan. 

It  seems  most  extraordinary  that  seeing  the  admirable  way  in 
which  the  clearing  house  has  worked  in  the  City,  in  economising  both 
labour  and  time,  the  West  End  bankers  should  have  remained  con- 
tented so  long  without  an  attempt  to  extend  its  benefits  to  themselves, 
but  still  allow  two  or  three  dozen  clerks  simultaneoiisly  to  traverse 
the  same  ground  to  do  business  that  might  be  just  as  efficiently  tiazis- 
acted  by  a  fourth  of  the  number.     Doubtless  there  are  difficolties  in 


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The  Clearing  System.  1183 

the  way  of  Btartmg  a  fresh  system,  but  what  reform  worthy  of  the 
name  was  ever  carried  where  there  were  none  to  overcome  ?  I  for 
one  cannot  believe  the  West  End  bankers  are  averse  to  improvement, 
but  think  that  if  a  feasible  plan  were  laid  before  them,  they  would 
be  ready  to  give  it  a  &tir  consideration. 

It  would  be  well  nigh  impossible  to  obtain  at  the  West  End,  over 
so  much  more  extended  an  area,  the  rapidity  and  precision  of  the  City 
clearing  house,  stiU  that  can  be  no  reason  for  declining  to  amend 
the  present  most  unsatisfactory  system.  Concentration  is  the  thing 
required,  and  this  may  be  had  in  two  ways,  either  by  the  adoption  of 
a  central  place  of  exchange,  where  one  or  more  clerks  from  each  bank 
should  attend,  or  by  a  scheme  propounded  by  Mr.  Jarvis,  and  discussed 
in  this  magazine  a  few  months  since,  fie  proposes  that  the  collection 
should  be  made  as  at  present  at  the  counters  of  the  different  banks, 
but  that  instead  of  each  banker  clearing  his  own  cheques  they  should 
be  remitted  to  a  common  centre,  and  collected  by  one  individual  on 
behalf  of  all.  The  simplicity  and  economy  of  this  plan  strike  one  at 
once,  and  if  a  comjmrison  between  it  and  the  present  system  be 
instituted  it  appears  to  great  advantage.  Mr.  Jarvis  would  include 
in  his  collection  all  bills  payable  at  private  bouses,  post-office  orders, 
and  drafts  on  those  nondescript  people,  army  and  navy  agents ;  bills 
for  acceptance  would  also  be  taken  charge  of. 

It  is  said  that  Mr.  Jarvis  finds  an  obstacle  to  the  working  of  his 
scheme  in  the  practice  of  receiving  credits  up  to  four  o'clock,  and 
that  if  the  public  would  submit  to  a  regulation  by  which  half-past 
three  should  be  the  latest  time  for  ^*  paying  in,"  his  scheme  would  be 
facilitated.  It  would,  I  think,  be  difficult  to  induce  the  public  to 
accede  to  this  arrangement,  but  supposing  that  point  conceded,  I  must 
confess  that  it  does  not  appear  to  me  that  Mr.  Jarvis^s  plan  would  be 
thereby  assisted,  as  I  do  not  understand  that  it  his  wish  to  supersede 
the  clearing-house,  but  to  engraft  his  own  ideas  thereupon.  Under 
any  circumstances  the  City  banks  could  collect  no  more  than  they  do 
now,  and  of  course  the  West  End  banks  must  retain  all  their  charge 
till  the  moiTiing. 

Whilst  fully  admitting  the  merits  of  this  scheme  of  Mr.  Jarris,  and 
recognizing  the  benefits,  it  would  confer  on  the  banking  community,  I 
am  of  opinion  that  an  extension  of  the  clearing-house  system  to  the 
West  ihid  would  facilitate  business  to  a  greater  extent,  inasmuch  as 
it  would  be  perfectly  practicable  to  have  the  draft  on  those  bankers 
who  joined,  cleared  twice  in  the  day. 

Again,  the  establishment  of  a  West  End  clearing  house  would  re- 
lieve the  banks  of  the  necessity  of  keeping  a  large  reserve  of  noten^ 
which  would  then  be  released  to  meet  the  ordinary  requirements  of 
trade,  of  itself  no  small  advantage  when  the  amount  thus  uselessly 
held  is  taken  into  consideration,  as  it  cannot  at  the  lowest  estimate 
amount  to  less  than  half  a  million.  The  profit  would  not,  however,  be 
reaped  by  the  bankers,  but  by  the  community  generally ;  as  the 
bankers  would  not  reduce  their  reserves  materially,  the  form  of  those 


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184  The  Clearing  System. 

reflerves  only  would  be  altered :  they  would  keep  fewer  notes,  but  it 
would  be  necessary  to  have  an  account  with  some  West  End  bank  bj 
whom  the  balances  could  be  adjusted.  The  benefits  the  baoken 
would  derive  would  be  the  economy  of  time  and  labour  ;  consequently 
increased  efficiency.  I  venture  to  offer  the  following  suggesdona  for 
the  consideration  of  the  banking  community  : — 

I  propose  that  a  clearing  house  should  be  established  at  some  con- 
venient spot  westward  of  Temple  Bar  (Channg  Croas  would  be 
suitable)  to  be  conducted  on  similar  principles  to  that  in  the  City. 
That  the  City  clearing  bankers  should  present  all  drafts  on  West  End 
bankers  through  a  member  of  the  West  £nd  clearing  house  ;  West  End 
bankers  on  the  other  hand  should  present  their  City  charges  through 
a  City  clearing  banker. 

That  the  day's  dealing  should  embrace  the  receipt  finom  noon  to 
noon,  and  be  divided  into  morning  and  afternoon  clearing. 

That  the  clearing  house  open  at  10  o'clock,  and  the  morning 
clearing  close  at  12  :  this  would  include  the  receipt  of  the  previoos 
day  after  12,  and  all  returns  from  the  previous  aftemoon's  charge. 

That  the  aftemoon's  clearing  commence  at  2  o'clock,  th&d  close  st 
3 ;  this  would  include  the  receipt  of  the  day  up  to  12  o'clock,  and 
the  returns  from  the  morning's  charge. 

That  the  adjustment  of  the  balances  of  the  clearing  be  effected 
through  the  medium  of  the  western  branch  of  the  Bank  of  England, 
and  that  the  members  of  the  clearing  house  should  keep  accounts  vith 
the  branch  for  that  purpose. 

That  when  the  balances  between  the  respective  bankers  and  the 
clearing  house  shall  have  been  agreed,  the  clearing  derk  shall  make 
out  and  sign  a  credit  or  debit  ticket  to  adjust  the  same  ;  this  shall  be 
countersigned  by  the  superintendent,  who  will  afterwards  forward  it 
to  the  Bank  of  England,  and  also  send  a  certificate  of  the  amount  so 
debited  or  credited  to  each  bank. 

Some  arrangement  of  this  description  would  be  necessary  owing  to 
the  distances  between  the  banks,  unless  it  was  agreed  that  the  seUle- 
ment  should  be  one  clearing  in  arrear,  a  system  obviously  open  to 
very  serious  objection. 

These  suggestions  are  not  offered  under  the  impression  that  the 
plan  proposed  is  perfect^  I  think,  however,  that  valuable  resdte; 
would  follow  its  adoption.  It  is  time  that  the  whole  army  of  collect- 
ing clerks  could  not  be  dispensed  with,  but  their  numbers  might  be 
greatly  reduced.  The  counters  of  the  different  banks  would  be 
relieved  of  the  crowds  that  besiege  them  during  the  early  part  of  the  daj, 
causing  vexatious  delays  to  customers,  and  consequent  loss  of  temper. 

The  large  reserve  of  bank  notes  now  held  by  the  various  West 
End  establishments  to  meet  the  demands  of  other  banks  wodd  be 
rendered  unnecessary,  lastly  the  business  of  collection  would  be  con- 
ducted more  expeditiously  for  the  customer,  and  economically  for  the 
banker ;  a  twofold  advantage  surely  worth  making  the  attempt  to 
attain. 


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Banking  and  Financial  Anecdotes.  1185 

T  have  ventured  to  trouble  you  with  these  remarks  on  a  subject 
the  present  position  of  which  has  long  been  an  admitted  evil,  in  the 
earnest  hope  of  inducing  some  of  the  many  talented  men  in  the 
banking  world  to  take  it  up  in  a  really  practical  manner ;  if  it  is  my 
fortune  to  have  my  plan  criticised  by  any  of  your  readers,  I  shall 
consider  that  a  step  has  been  gained  by  the  ventilation  of  the 
'question. 

I  am,  Sir, 

Your  obedient  Servant, 

J.  D.  R 
London,  August,  1865. 


BANKING  AND  FINANCIAL  ANECDOTES. 

No.  XI. 

A  bankeb's  clerk  and  his  salary. 

A  banker's  clerk,  well  known  among  his  fellow  clerks  for  his 
parsimonious  habits,  and  whose  salary  waa  only  eighty  pounds  a-year, 
was  informed  by  one  of  the  partners  in  the  bank  that  the  "  house" 
(the  title  partners  in  a  banking  firm  usually  euiopted)  intended  to 
raise  his  salary  ten  pounds.  The  clerk  appeared  somewhat  surprised  at 
this  announcement,  and  replied,  "  I  think  it  unnecessary,  sir ;  I  do  not 
spend  more  than  thirty  pounds  of  what  I  now  receive,  and  this  addition 
will  only  tend  to  increase  my  anxiety  and  trouble."  The  banker, 
being  quite  unused  to  such  an  announcement,  asked  the  clerk  a  few 
questions  as  to  his  mode  of  living,  when  he  replied,  "  I  usually  breakfast 
in  the  street ;  and  as  to  my  dinner,  I  buy  a  penny  loaf;  and  as  you  have 
an  excellent  pump  at  the  end  of  the  street,  I  have  a  drink  of  pure 
water ;  I  have  no  tea  or  supper,  and  ouly  indulge  in  a  meat  dinner  on 
Sundays."  This  reply  had  the  etfect  of  hardening  the  heart  of  the 
banker,  so  that  when  any  of  his  other  clerks  applied  for  an  addition  to 
their  salary,  he  would  relate  this  anecdote  as  an  excuse  for  declining 
to  accede  to  the  request.  The  clerks  very  soon  found  means  to  rid 
the  esta'bUshment  of  such  an  enemy  to  good  living,  exclaiming — 

"  Dost  thou  think  because  thou  art  virtuous 
There  shall  be  no  more  cakes  and  ale  1 " 


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1186  Banking  and  Financ  ial  A  ttecdoies. 


SINGULAR  TaiAL   FOB  FORGn^G  BANK  KOTI^ 

During  the  twenty-five  years  the  Bank  of  England  issued  one-pound 
notes,  the  number  of  persons  who  were  tried,  convicted,  and  aenteaced 
to  death  for  forgery  exceeded  500,  besides  1,200  who  were  trensportai 
^*  for  having  forged  notes  in  their  possession,  knowing  them  to  be 
forged."  Several  of  the  trials  were  remarkable  for  the  ingenuitr 
displayed  both  by  the  counsel  engaged  for  the  prisoners,  and  also  the 
prisoners  themselves,  in  their  endeavours  to  obtain  an  acquittal  One 
was  the  case  of  a  man  who  had  very  peculiar  notions  reRpecting  the 
nature  of  the  offence  with  which  he  was  charged,  and  fur  which  he 
was  found  guilty.  When  asked  by  the  judge  whether  he  had  m- 
thing  to  say  why  sentence  of  death  should  not  be  passed  upon  him,  he 
replied  as  follows : — "  My  lord,  I  am  indicted  for  issuing  bank  notes 
knowing  them  to  be  false  and  fraudulent ;  but  I  should  like  to  knov 
what  difference  there  is  between  the  offence,  if  it  is  an  offence,  with 
which  I  am  charged,  and  that  which  *  the  old  lady '  is  daily  com- 
mitting :  for  she  promises  to  pay  what  she  never  intends  to  paj,  or 
ever  can  pay,  for  she  invariably  exdianges  one  promise  to  pay  i^* 
another  pi-omise  to  pay."  (At  the  time  the  bank  did  not  pay  its  D)c4a, 
but  simply  exchanged  them  for  other  notes.)  "  The  learned  coansel 
for  the  bank,  who,  no  doubt,  has  been  well  paid,  told  the  juiy  thftt  1 
was  instigated  by  the  devil.  This  T  deny ;  but  even  if  I  was  my  case 
would  not  be  blacker,  for  if  the  '  old  lady '  is  allowed  to  issue 
millions  of  false  promises,  why  should  not  the  old  geniiemaii  f "  HeiCf 
the  account  states,  there  was  a  burst  of  laughter  in  the  courts  e\^esi  the 
gravity  of  the  judge  was  for  a  moment  disturbed  He  desired  the 
officers  to  take  into  custody  the  offending  parties ;  but  this  ordfr  v«s 
not  so  easy  to  execute,  for  the  infection  spread  throtighout  the  whole 
court,  even  the  very  officers  appointed  to  keep  order  in  the  ooait 
could  not  refrain  from  laughing  ;  but  as  laughing,  like  dyings  no^ 
come  to  an  end,  the  judge  judged  it  best  to  let  the  laugh  go  round 
When  order  was  restored,  and  the  prisoner  was  about  to  resume  h» 
address,  the  judge  stopped  him,  saying,  "We  do  not  sit  here  to  try  the 
old  lady  to  whom  you  allude,  but  to  ascertain  whether  you  ha^ 
been  guilty  of  felony.  The  jury  have  declared  that  you  are  guHty,  sd^ 
it  is  my  painful  duty  to  pass  upon  yon  that  sentence  frtHn  which  I  cm 
offer  you  no  hope  of  pardon,"  ibc,  &c  This  may,  and  doubtless  do« 
appear  very  shocking,  but  in  those  days  of  "good  old  Geoige  III. 
of  blessed   memory,''  every  Monday  mornings  during  the 


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Banking  and  Financial  Anecdotes,  1 187 

brought  with  it  its  death-bell,  and  Jack  Ketch,  whose  profeHsion 
was  BO  profitable  that  no  one  ever  thought  of  allowin(;  him  a  fixed 
salary,  wan  present. 


THE   BILL  DISCOUNTER   OUTWITTED. 

One  Sunday  evening,  in  the  summer,  a  celebrated  bill  broker  was 
taking  a  walk  near  the  Heaside  with  his  daughter,  when  they  came  to 
a  gentleman's  seat,  the  grounds  round  which  were  adorned  with  very 
beautiful  flowers ;  and,  on  stopping  to  admire  the  flowers,  the  lord  of 
the  domain,  happening  to  be  near  the  gate,  and  hearing  the  young 
lady  express  her  admiration,  invited  the  gentleman  to  view  the 
grounds ;  he  also  showed  him  his  horses  and  carriages,  then  took  him 
into  the  house  and  set  before  him  wine  and  biscuits.  *0n  the  gentle- 
man's departure  he  exchanged  cards  with  his  hospitable  host,  each 
being  pleased  one  with  the  other.  It  never  occurred  to  the  money- 
lender that  all  this  show  of  wealth  might  be  assumed  for  an  object ; 
however,  it  was  so,  the  party  having,  the  previous  week,  by  false 
pretensions,  got  temporary  possession  of  the  estate  (which  was  to  be 
sold  with  all  the  appurtenances)  was  determined  to  make  the  most 
of  his  present  position.  Consequently,  on  the  following  day  he  went 
fo  town  and  drove  up  to  the  door  of  the  bill  broker,  and,  having 
obtained  an  interview,  he,  with  the  greatest  possible  coolness,  said  he 
had  come  to  town  to  pay  for  an  adjoining  estate,  the  purchase-money 
for  which  he  found  was  £250  more  than  he  had  brought  with  him  — 
would  he  kindly  lend  him  his  cheque  for  that  amount  in  exchange  for 
one  of  a  like  amount  on  his  banker  in  the  country  1  The  bill  broker 
was  for  a  moment  disconcerted ;  but  on  reflecting  on  the  apparent 
splendour  of  the  country  establishment,  and  that  his  carriage  was  at 
the  door,  he,  without  further  hesitation  and  with  many  courteous 
expressions  of  pleasure  at  an  opportunity  of  obliging  the  gentleman, 
made  the  exchange  of  cheques ;  the  latter,  with  many  thanks  and 
apologies  for  the  novelty  of  the  request,  drove  off  to  the  bank,  received 
the  money,  then  off  home  with  his  booty,  being  highly  pleased  with 
himself  for  having  outwitted  the  money-lender.  We  need  hardly  say 
the  cheque  was  returned  **  not  sufficient ; ''  this  unexpected  result 
much  surprised  the  bill  broker,  who  of  course  wrote,  to  the  drawer, 
apprising  him  of  the  return  of  his  cheque,  who  replied  stating  he 
would  be  in  town  in  a  day  or  two.  and  would  call  and  repay  the  loan 
with  thanks,  adding,  "  The  return  of  the  cheque  was  a  blunder  of  the 


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1188  Banking  and  Financial  AnecdottB, 

bank  clerk,  who  lias  been  severely  reprimanded  for  tlie  error."  But 
he  never  did  call,  but  on  the  contrary,  after  victimising  nearly  all  th« 
tradespeople  in  the  neighbourhood,  he  took  French  leave  of  liis 
splendid  establishment,  canying  with  him  every  portable  article  of 
value,  and  was  nev^er  seen  more. 


BANKING   IK  JBBSKT. 

A  FEW  weeks  ago,  an  English  mechanic,  having  been  engaged  in  per- 
fecting some  machinery  in  Jersey,  on  the  completion  of  the  job  vas 

paid  the  amount  of  his  bill,  £20,  in  £\  notes  of  the  Bank  of y 

and  being  desirous  of  returning  to  England,  and  knowing  that  tbe 
Jersey  notes  would  be  useless  out  of  the  island,  went  to  the  hank  to 
get  the  notes  changed  for  gold.  On  presenting  them  to  the  bank  and 
requesting  he  might  be  furnished  with  twenty  sovereigns,  the  deik  in 
attendance  seemed  struck  with  the  novelty  of  the  request,  and  after 
some  hesitation  confessed  "  that  he  had  not  so  much  gold  in  ih»  bank,'' 
adding,  "  but  I  will  tell  you  what  I  can  do  for  you.  I  will  give  m 
twenty  notes  on  the  Commercial  Bank  in  exchange,  which  you  can 
present  at  that  bank  and  obtain  gold  for  them."  Our  informant,  vho 
vouches  for  the  truth  of  the  above,  then  applied  to  the  Commodal 
Bank  and  obtained  the  needful. 

Most  of  us  remember  the  story  of  the  Killamey  banker,  who  vas 
also  a  saddler,  and  who,  on  being  asked  for  cash  for  some  of  his  promis- 
sory notes,  answered,  "  Cash,  your  honour,  what  is  that  I  Im  it  anj- 
thing  in  the  leather  line  ?  "  This  unsophisticated  answer  is  not  sur- 
passed by  that  of  the  Jersey  banker. 

Banking  in  Jersey  must  be  conducted  on  principles  peculiarij  local 
and  entirely  of  a  novel  character,  for  it  appeara  by  the  Jeiwf 
Almanack  for  1865,  that  almost  all  the  parishes  in  the  isLuulare 
banks  of  issue,  a  list  of  the  parish  bankH  is  given,  and  the  places  whcit 
their  promissory  notes  are  made  payable ;  but  our  readers  will  be  some 
what  surprised  to  learn  that  several  of  the  parish  banks  do  not  state 
where  their  notes  are  to  be  paid ;  for  instance,  the  parish  of  St  Biilades 
issue  notes  "  payable  nowhere."  The  Trinity  parish  bank  notes  ait 
also  stated  to  be  "  payable  nowhere."  This  can  be  verified  on  ref«^ 
ence  to  the  Jersey  Almanack,  from  whence  we  have  extracted  the 
above  information. 

In  our  simplicity  we  thought  it  was  necessary  to  state  in  the  body 
of  a  promissory  note  where  it  is  to  be  paid ;  but  our  Jersey  feDow- 


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Banking  and  Financial  Anecdotes.  1189 

Aubjects  take  a  very  different  view  of  such  promises  to  pay,  by  unre- 
servedly stating  they  are  "payable  nowhere."  We  should  think 
such  notes  cannot  have  a  very  wide  circulation,  possibly  not  out  of 
the  parish ;  but  the  whole  system  appeal's  to  be  a  burlesque  on  the 
issue  of  paper  money. 


HOARDING   OF  GUINEAS. 


An  old  Irish  woman  went  into  a  bank  at  Tipperary  and  asked  the 
manager  to  give  her  Irish  notes  for  ten  golden  guineas,  which  she 
said  she  had  brought  upwards  of  twenty  miles  to  get  changed,  that 
she  had  hid  the  ten  guineas  up  the  chimney,  and  that  they  had  re- 
mained there  for  forty  years,  that  they  had  heen  placed  there  by  her 
on  the  birth  of  her  only  daughter,  that  she  had  kept  the  secret  up  to 
this  time,  intending  them  as  a  marriage  portion  for  her  child,  and 
as  her  daughter  was  to  be  married  on  the  following  morning  she 
must,  she  said,  return  with  the  money,  as  no  one  in  the  village  would 
take  the  gold.  The  banker  told  the  old  woman  that  he  had  no  means 
of  weighing  the  guineas  and  as  some  of  them  appeared  much  worn, 
if  he  gave  her  the  full  amount  it  must  be  at  a  risk  of  loss.  After 
some  parleying  the  old  woman  consented  to  receive  ten  pounds  in 
bank  notes  with  which  she  trotted  off  with  great  glee.  Now,  if  she 
had  put  the  ten  pounds  in  the  savings  bank  and  kept  it  there  all 
the  time  it  would,  with  interest  and  compound  interest,  have  accumu- 
lated to  a  much  larger  amount :  as  it  was  she  considered  it  an  important 
marriage  portion.  After  the  old  woman  had  left  the  bank  with  the 
ten  one-pound  notes,  a  singular  circumstance  took  place  with  respect 
to  one  of  the  guineas,  which  proved  to  be  a  William  and  Mary  guinea 
of  the  year  1693,  in  capital  preservation.  A  young  Irish  gentleman, 
a  genuine  Orangeman,  offered  the  bank  a  £ve  pound  note  for  the 
guinea,  which  having  obtained,  he  said,  "  I  will  bore  a  hole  in  it  and 
wear  it  round  my  neck  on  the  12th  of  next  July,  in  honour  of  the 
**  immortal  memory." 


REMAHKABLE  CASE   OF  GENEEOSITT   AND  DISINTERESTEDNESS. 

A  MAN  of  the  name  of  Marsh,  a  furniture  dealer  in  Dublin,  in  the 
course  of  many  years  made  an  immense  fortime,  and  having,  in  the 

early  part  of  his  career  met  with  many  kindnesses  tvom  Mr. ,  a 

VOL.  XXV.  91 


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1190  Banking  and  Financial  Anecdotes. 

celebrated  pawnbroker  m  Dublin,  and  wiili  whom  he  had  always  lie*  e 
on  terms  of  friendship,  was  desirous  of  showing,  bj  some  generous  act 
his  gratitude  for  past  favours,  but  being  remarkably  fond  of  money  lie 
was  a  long  time  making  up  his  mind  how  to  effect  his  object  At 
last  he  came  to  the  determination  to  do  for  the  pawnbroker  vUt 
would  doubtless  be  considered  an  act  of  unsurpassed  generosity.  Ac- 
cordingly he  called  upon  Mr. j  and  informed  him  that  he  was  goinz 

to  the  Bank  of  Ireland  to  make  a  transfer  of  some  stock,  and  wished 

his  friend  to  accompany  him.     Mr. ,  having  on  many  prerioas 

occasions  gone  to  the  bank  with  him,  was  not  surpiised  at  the  request* 
and  therefore  consented  to  do  so.  When  they  arrived  at  the  Bank  cf 
Ireland,  Mr.  Marsh,  who  was  a  man  well-known  there,  addressed  the 
clerk  as  follows,  "  I  am  desirous,  sir,  of  showing  my  gratitude  to  this 
gentleman"  (turning  to  Mr.  — )  "for  many  kind  services  he  hu  re&- 
dered  to  me  for  many  yeai's  past,  by  making  him  some  return  for  sod 
kindnesses  ;  I  therefore  request  that  you  will  make  out  the  necesarr 

papers   for  the  transfer  from  my  name  to  that  of  Mr.  one 

hundred  thousand  pounds,  which  is  just  one-half  of  the  stodc  staxxiicc 
in  my  name  in  the  books  of  the  Governor  and  Ck)mpany  of  the  Eiak 
of  Ireland."  Both  the  clerk  and  the  jjawnbroker,  particnlariy  the 
latter,  heard  with  amazement  this  announcement  However,  after  vfry 
little  discussion  on  the  subject,  the  transfer  was  made ;  and  on  leaving 
the  bank  Mr.  Marsh  was  poorer  than  when  he  entered  it  by  one 
hundred  thousand  pounds,  whilst  the  pawnbroker  was  the  ridier  bv 
that  amount 

About  ten  days  after  the  above  transaction  took  place,  Mr.  Marsh 
called  on  the  pawnbroker  and  informed  him  that  he  had  beoi  veiy 
unha])py  in  his  mind  since  he  had  made  the  transfer  of  the  stock, 
that  he  had  not  had  a  wink  of  sleep,  would  he  therefore  go  with  hie 
to  the  bank  and  re-transfer  the  amount  into  his  name  t  The  pawo- 
broker  readily  accompanied  him,  and  without  the  slightest  hesitati^^a 
re-transferred  one  hundred  thousand  pounds  from  his  own  same  v^ 
that  of  Mr.  Marsh,  and  on  this  occasion  leaving  tlie  pawnbroker  poonT 
by  £100,000  than  when  he  entered  it.  Kow,  let  ns  see  bow  ili> 
generous  and  disinterested  act  on  the  part  of  the  pawnbroker  ▼«* 
rewarded.  Just  twelve  months  after  the  events  just  recorded  t<«'k 
place,  Mr.  Marsh  died,  leaving  the  whole  of  his  stock,  amouDting  t«» 
£200,000,  to  the  pawnbroker,  in  consideration  of  kindnesses  rcoei^«-i 
and  the  unselfish  disposition  disijlayed  on  the  occa^on  of  the  tnmaitr 

of  the  stock. 

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1191 


THE  NEW  BRAZILIAN  LOAN  OP  £5,000,000. 

Thk  prospecfcnB  of  a  new  Brazilian  loan  of  £6,000,000  was  issned  on  the 
lOth  September  by  Messrs.  Rothschild  and  Sons,  the  financial  agents  of 
the  government,  and  is  as  follows  : —  . 

**  Imperial  Brazilian  6  per  cent,  loan  of  1865,  for  £5,000,000  sterling. 

**  Hia  Majesty  the  Emperor  of  Brazil  having  by  decree,  under  date  of  the 
6th  July,  1865,  authorised  a  loan  of  £5,000,000  sterling,  in  conformity  with 
the  law  No.  1,244,  of  26th  June,  1865,  and  with  the  law  No.  1,245,  of  28th 
June,  1865. 

**  Messrs.  N.  M.  Rothschild  and  Sons,  financial  agents  of  the  Imperial 
govenunent,  have  to  announce  that  they  are  ready  to  receive  at  their 
ofiioe  subscriptions  for  this  loan. 

^  It  will  be  emitted  in'bonds  to  bearer  for  £100,  £500,  and  £1,000  each, 
carrying  interest  at  5  per  cent,  per  annum,  with  coupons  payable  half- 
yearly  in  London  or  at  Amsterdam,  at  the  exchange  of  eleven  guilders 
eighty  cents  per  pound  sterling ;  the  first  half-year's  dividend  b^g  due 
on  Ist  March,  1866. 

"  The  boiick  are  to  be  issued  for  thirty-seven  years,  and  will  be  redeemed 
by  a  sinking  fund  of  £1  per  cent,  per  annum,  together  with  the  interest 
on  all  bonds  paid  off,  operating  half-yearly  in  drawing  by  lot  at  par. 

^  The  first  drawing  to  take  place  in  March,  1867.  The  price  of  emission 
is  £74  for  eveiy  £100  stock,  payable  as  follows : 

5  per  cent,  on  application. 

10  „  on  allotment. 

10  „  on  3rd  November,  1865. 

10  „  on  25th  January,  1866. 

10  „  on  23rd  March,  1866. 

10  „  on  23rd  May,  1866. 

10  „  on  24th  July,  1866. 

9  „  on  25th  September,  1866. 

74 

**  The  tailure  to  pay  the  whole  of  these  instalments  forfeits  all  previous 
payments. 

**  To  subBcribers  who  prefer  payment  by  anticipation  of  the  above  periods 
a  discount  of  5  per  cent,  will  be  allowed. 

'^  Applications  for  this  loan  must  be  accompanied  with  a  deposit  of  5 
per  cent,  on  the  amount  applied  for.  In  case  the  allotment  should  not 
require  the  whole  deposit,  the  surplus  will  be  returned ;  if  it  be  insufii- 
cient  for  the  first  instalment  on  the  amount  allotted,  the  balance  reqiured 
must  be  paid  forthwith. 

**  Smp  will  be  issued,  which  will  be  exchanged  for  the  bonds  after 
payment  of  the  last  instalment. 

**  Applications  will  be  received  until  Tuesday  evening,  the  19th  instant. 

**  New  Ck)urt,  St.  Swithin's  Lane,  Sept.  14, 1865." 


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1192 


BOMBAY  BROKERS'  LOAN,  DISCOUNT,  AND  BANKING 

COMPANY. 

As  ordioary  general  meeting  of  the  shareholders  of  the  Brokers'  Loan  and 
Discount  Company  was  held  at  the  office  of  the  company  on  the  :24th  JoIt, 
to  receive  the  report  of  the  directors  and  a  statement  of  the  affairs  of  the 
company  for  the  half-year  ending  Jone  30th,  and  also  to  elect  diiectora. 
CowajBJee  Nanabhoy,  Esq.,  Chairman.  The  manager,  after  reading  the 
notice  convening  the  meeting  and  the  proceedings  of  the  last  extraordmaiy 
general  meeting,  read  the  following  report  of  the  directors : — 

"  In  accordance  with  clause  75  of  the  articles  of  assodation,  the  dnnet- 
tors  have  the  pleasure  of  meeting  the  shareholders  with  a  view  of  submittmg 
the  report  of  the  state  of  the  affairs  of  this  compsmy  for  the  half-y^r 
ending  30th  Jtme,  1865.  As  for  the  state  of  the  affairs,  the  directors  beg 
to  refer  the  shareholders  to  the  auditors'  report,  and  in  order  to  prerest 
erroneous  impressions  that  may  be  entertained  by  any  of  tiie  sharehoidenv 
from  the  remark  made  by  the  auditor, "  that  the  securities  have  also  bees 
examined  and  found  in  order,  with  exception  of  a  small  portion,"  tiie 
directors  have  to  state  by  way  of  explanation  that  they  did  not  and  do  not 
think  proper  to  have  the  shares  of  some  of  the  institutions  ^^ansfened  ifl 
the  name  of  this  company,  as  by  so  doing  it  becomes  a  party  liable  to  the 
debt  of  any  such  institutions  in  which  shares  are  r^;istered  into  the  name 
of  this  company  or  its  affairs :  they  trust  this  explanation  will  be  quite 
sufficient  to  the  shareholders.  The  directors  regret  to  state  that  from  the 
present  bad  times  they  estimate  that  the  loss  to  this  company  would  be 
about  4  lacs  of  rupees ;  but,  of  course,  such  loss  would  be  reduced  to  a 
great  extent  when  the  securities  improve  from  the  present  d^reased  state. 
Your  directors  are  glad  to  say  that  notwithstanding  the  resolution  paaaeJ 
at  the  extraordinary  general  meeting  held  on  the  8th  March  last,  they  hare 
not  entered  into  any  time-bargains,  and  also  they  have  not  lent  any  mmtej 
on  any  finanftift]  or  reclamation  companies'  shares,  but  they  have  moatlj 
lent  money  on  the  shares  of  this  bank  and  of  chartered  banks,  and  also  oai 
the  shares  of  the  banks  with  limited  liabilitiee,  and  on  landed  property, 
and  also  on  shares  of  presses  and  spinning  companies,  ^tc,  &e.  Tbe 
directors  have  to  state  that  the  greater  portion  of  the  loss  is  attributable 
to  the  sums  lent  to  Bur joijee  Sorabjee  Lywalla  (late  a  director  and  now  is- 
solvent)  on  the  securities  of  the  shares  in  the  Bank  of  Bombay  and  otiier 
banks.  The  directors  have  also  to  point  out  to  the  shareholders  that  the 
balance-sheet  of  the  company,  with  the  auditors'  report  thereon,  ahws 
that  the  net  profit  for  the  past  half-year  is  Ks.  87,070-3-5,  induaive  of 
Bs.  25,5  '7-8-1,  as  outstanding  interest  on  the  overdue  billa  up  to  30& 
June,  186i5.  The  directors  have  to  state  that  clause  76  provides 
that  a  printed  copy  of  the  balance-sheet  shall  seven  days  previously  in 
the  meeting  be  furnished  to  every  shareholder,  but  the  di^cton  regret 
to  say  lliat  owing  to  the  unavoidable  delay  on  the  part  of  the  aoditffs 
in  auditing  the  accounts,  they  have  not  been  able  to  comply  with  its 
requisition.  The  directors  have  to  state  that  some  time  ago  three  of  the 
directors,  Messrs.  C.  6.  de  Souza,  Burjorjee  Sorabjee  LywaUa,  and 
Buttonjee  Runchoredass,  became  insolvents,  and  consequently  they  are 
disqualified,  and  there  now  remain  Messrs.  Cowaajee  Nanabhoy,  Luck> 


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Bombay  Brokers*  Loan,  Discount,  and  Banking  Co.     1193 

midoas  Dharsey,  and  Munjee  Nurseyy  of  whom  the  two  former  now  retire, 
bfit  are  re-eligible.  The  directors  are  willing  to  give  any  explanation 
any  of  the  shareholders  may  ask  for.  In  oondnsion,  the  directors 
would  recommend  the  meeting  not  to  declare  any  dividend  until  the 
amount  of  loss  is  provided  for.'^ 

Bakmee'Sheetfor  haff-year  ending  30th  June,  1865. 

LIABILITIES. 

Faid-np  capital      •••  •••  ...  ••• 

Current  Deposits  ... 

Fixed  deposit 

Dividend  (unclaimed)  ...  ,.. 

Second  dividend  (unclaimed)  .••  ... 

Mrs.  A.  Dumayne 

Reserve  fund 

Profit  and  Loss    ... 


Union  Bank  of  London 

Balances  in  local  banks 

Dead  stock 

Local  bills  discounted 

Loans  receivable... 

Stamps  on  hand    ... 

Daty  on  goods  hypothecated  with  this  bank 

Freight  do.  do. 

Bank  of  Bombay  shares  account 

Brokers^  loan,  mscount,  and  banking  shares  account 

Adjusting  account 

Cash  on  hand 


Statement  qfPrqfit  and  Lqms, 
Dr. 
Sundry  expenses,  charges,  &c. 
Premiam  and  discount  account 
Balance  ••• 


Or. 

Amount  of  earnings  during  the  half-year  ending  SOth  June, 

IoDO  .*•  •••  ...  «..  *.•  ... 


July  1st,  1865.    By  balance  brought  forward  Bs.  87,070-3-5. 

It  was  then  proposed  by  Pestonjee  Burjoriee,  Esq.,  and  seconded  by 
Dorabjee  Cursetjee  Colah,  Esq,,— **  That  the  proceedings  of  the  last 
extraordinary  general  meeting  now  read  be  confirmed." — Carried 
unanimously. 

Proposed  by  Pestonjee  Burjorjee,  Esq.,  and  seconded  by  Dorabjee 
Cursetjee  Colah,  Esq.,—"  That  the  directors*  report,  the  balance-sheet, 
and  auditors'  report  now  read  be  adopted." — Carried  unanimously. 


1,900,600 

0 

0 

327,199 

8 

1 

5,192 

0 

0 

1,590 

0 

0 

5,539 

8 

0 

440 

0 

0 

6,218 

6  U 

87,070 

3 

5 

2,423.849 

10 

5 

112,874  12 

8 

360,865 

2 

7 

2,636  11 

4 

1,719,818 

9 

1 

86,218  15 

0 

59 

9 

5 

525 

10 

0 

112 

8 

7 

55,000 

0 

0 

42,000 

0 

0 

19,226 

6 

8 

24,511 

5 

1 

2,423,849  10 

6 

21,886 

10 

1 

54,194 

8 

0 

87.070 

3 

5 

163,151 

5 

6 

168,151 

5 

6 

163,151 

6 

6 

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1194  Bank  o/Audralaaia. 

Proposed  by  I>(»«bjee  CnrBotjee  Cokh,  Esq.,  and  aeooiided  by  Pei- 
ionjee  Burjorjee,  Eftq.,— '^  That  Messrs.  Cooverjee  KunOdioy  tad 
Luxmedass  Dbarsey  be  re-elected  as  directors." — Carried  unanimonlT. 

Proposed  by  Pestonjee  Burjorjee,  Esq.,  and  seconded  by  Dhunje^ 
boy  Jamsetjee  Jussawalla,  Esq.,— *"  That  Messis.  A.  O.  de  Ga^BiotoD. 
jee  Burjorjee  Mody,  Dorabjee  Framjee  Panday,  and  Sorabiee  PaUoDies 
Meherjee  be  appointed  as  directors  in  the  room  of  those  disqiuhficd.'' 
— Carried  imanimoiisly. 

Proposed  by  Pestonjee  Bnrjorjee,  Esq.,  and  seconded  by  Bhnnjeeb- 
hoy  Jamsetjee  Jnssawalla,  Esq.,— <"  That  the  thanks  of  this  meeting  u 
due  to  Mr.  Ardaseer  Bomanjee,  the  manager,  for  his  conduct  is  the 
discharge  of  his  duty,  and  also  thanks  to  the  existing  direcAon,  Mesn. 
Cowasjee  Nanabhoy,  Luxmidass  Dharsey,  and  Munjee  Nuney,  for  ther 
management."— Carried  unanimously. 

The  meeting  then  terminated. 


BANK  OF  AUSTRALASIA. 

Thb  half-yearly  meeting  of  the  shareholders  of  this  company  iras  hM  ^ 
the  bank  premiBes,Threadneedle  Street,  on  the  28th  July— Mr.E.Hamiltoo, 
M.P.,  in  the  chair. 

The  following  was  the  report  of  the  directors : — 

**  In  conformity  with  the  practice  which  has  now  been  established  some 
years,  the  directors  have  isTited  the  attendance  of  theshareholdenfortlK 
purpose  of  dedaring  a  dividend,  and  of  informing  them  that  in  the  isteml 
that  has  elapsed  since  their  last  report  the  progress  of  the  bank  has  baa 
steady  ^d  satisfactory.  It  must  be  borne  in  mind  that  within  tiie  bst 
few  years  the  number  of  local  banks  in  the  Australian  colonies  has  gretfij 
increased,  and  that  banking  operations  there  are  now  carried  on  in^  ^ 
of  active  competition  in  aU  quarters.  The  position  of  the  bank  is>  ^^' 
ever,  fully  maintained,  and  there  is  every  reason  to  look  oonfidenily  to  tbe 
future.  The  business  in  New  Zealand  is  becoming  important,  and  tk 
result  for  the  half-year  ending  in  April  last  is  as  good  as  was  antiapit»' 
The  seat  of  government  having  been  transferred  from  Auckland  to  W^lio^- 
ton  it  has  liicome  necessary  to  open  a  branch  at  the  latter  place,  for  whi<s 
the  sanction  of  the  court  has  been  already  given.  The  dividend  and  hM 
will  be  payable  on  the  17th  of  October  nei^  and  will  be  at  the  late  of  H 
per  cent,  per  annum,  free  of  income  tax,  that  is  to  say  £2. 16«.  on  escb  <ud 
share  and  £2.  2s.  on  each  new  share.  Henceforward  the  okl  and  ne* 
share,  will  stand  on  the  same  footing  in  regard  to  dividend  and  bosiiB>  u*' 
all  distinction  between  them  will  cease.'' 

The  Chairman,  in  moving  that  the  report  be  adopted,  obaared  ftattbe 
business  to  be  transacted  was  of  so  formal  a  diaracter  that  he  aln^ 
regretted  that  they  were  bound  by  precedent  to  invite  the  attcndaDce  d 
the  shareholders  on  that  occasion.  The  only  definite  matter  before  tbtf 
was  the  announcement  of  the  dividend  at  the  rate  of  14  per  ceot-  per 
annum,  or  7  per  cent,  for  the  half-year.  He  much  wished  that  tlie  pn^^ 
realized  had  enabled  them  to  make  a  better  return,  but  with  all  del'?*'^ 
to  those  who  formed  over  sanguine  expectations  he  thought  the  diTideau 
was  a  satisfactory  one,  espedaUy  when  they  considered  the  recent  ert<a»^« 
of  their  ci^tal  by  the  issue  of  new  shares  without  the  usoal  loading  «  * 
high  premium.  The  directfira  could  not  take  credit  or  discredit  for  issmsff 
the  shares  at  parkas  they  were  required  to  do  so  by  the  deed  of  settlenient 


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Bombay  Presidency  Bank,  1195 

Some  might  suppose  that  the  directors  were  Dot  good  stewards  in  giving  to 
the  sliareholders  in  bhis  way  £200,000 ;  but,  as  he  had  said,  they  had  no 
option.  The  colonial  management,  they  would  admit,  had  done  well  in 
cuabling  them  to  declare  a  tlividend  at  the  rate  of  7  per  cent,  for  the  half- 
year  upon  their  £1,125,000  of  capital,  and  which  would  absorb  the  large 
rfum  of  £78,750,  The  accounts  from  the  colonies  continued  to  be  favour- 
able. It  was  true  that  business  was  represented  as  dull,  but  that  was  in 
cr>mparison  with  the  standard  of  1853, 1854, 1855,  and  1856,  which  their 
zealous  officers  on  the  other  side  would  be  glad  to  see  maintained.  Their 
own  business  had  not  diminished ;  on  the  contrary,  it  had  in  some  respects 
improved.  All  their  advances  were  protected  by  good  security,  and  from 
»(>inc  that  were  at  the  last  meeting  a  source  of  anxiety,  they  had  escaped 
with  less  loss  than  they  then  anticipated.  The  superintendent  was  satisfied 
with  the  progress  of  business  at  New  Zealand.  The  bank  had  taken  deep 
rr>ot  there,  and  they  had  every  confidence  that  before  long  all  the  branches 
there  would  be  productive  of  profit.  The  necessity  of  opening  a  branch  at 
Wellington  had  arisen  from  the  provision  in  the  charter  which  directed 
that  all  notes  issued  by  any  of  the  branch  banks  should  be  payable  at  the 
Beat  of  government  as  well  as  at  the  branch  by  which  they  were  issued ; 
they  had,  however,  no  reason  to  regret  the  change.  Wellington  was  the 
c;[i,pital  of  the  first  settlement  made  by  the  New  Zealand  Company,  and 
boing  near  Cook's  Straits,  which  separated  the  northern  from  the  southern 
islands,  was  more  central  and  more  available  for  business  than  Auckland. 
The  reports  from  Australia  were  also  favourable. 

Mr.  Holme  seconded  the  motion. 

lu  reply  to  a  shareholder  the  Chairman  stated  that  the  bank  allowed 
interest  on  deposits  for  fixed  periods,  but  not  on  current  accounts. 

The  motion  was  agreed  to,  and  a  vote  of  thanks  to  the  chairman  concluded 
the  proceedings. 


BOMBAY  PRESIDENCY  BANK,  LIMITED. 

The  second  ordinary  general  meeting  of  the  shareholders  of  this  bank 
was  held  at  the  bank's  office  on  the  3l8t  July ;  Mr.  Pestonjee  Nowrojee 
Pochajee,  in  the  chair. 

The  manager  read  the  minutes  of  the  last  meeting  which  were  confirmed, 
and  afterwards  read  the  advertisement  convening  the  meeting  for  the 
following  purposes  : — 1st.  To  receive  the  report  of  the  directors,  and  the 
balance-sheet  to  30th  June,  1865,  and  to  transact  such  business  as  shall  in 
the  said  report  be  presented  to  the  meeting.  2nd.  To  elect  two  directors, 
in  the  room  of  Messrs.  A.  C.  Gumpert  and  Nowrojee  Ardaseer  Dauver, 
resigned.  3rd.  To  elect  auditors  for  the  ensuing  year.  4th.  To  amend 
the  30th  article  of  association  by  adding  the  words  "or  August"  after 
the  word  "  July"  in  the  said  article.  5th.  To  amend  the  37th  article 
of  association  by  stricking  out  the  said  article,  and  by  substituting 
in  lieu  thereof  the  following  words :  "  Any  meeting  of  which  notice 
specifying  the  intention  to  propose  such  resolution  shall  have  been  duly 
i^iven."  6th.  To  amend  the  lOOIh  article  of  association  by  adding  after 
the  words  "  any  calls  that  may  have  been  made  upon  any  share  of  such 
.^liareholders  in  the  company,"  where  the  same  occur  in  the  said  articles, 
the  words  following,  that  is  to  say  :  "or  otherwise  howsoever  as  a  debt 
I  Ine  to  the  company  from  him  either  alone  or  jointly  with  any  other  person 
or  persons.*' 

The  following  is  the  directors'  report : — 

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1196  Botnbay  Presidency  Bank. 

<<  The  directors,  in  meeting  tlie  shareholders  for  the  teoond  time,  hare  to 
lay  before  them  iJie  balance-sheet  of  the  bank  on  the  dOtii  Jane  bust,  duly 
audited.  A  third  call  of  Ke.  50  per  share  was  made  payable  on  22iid 
September  last,  and  the  aooonnts  show  that  the  sum  of  Ba.  62,300  reoiMnB 
unpaid  of  that  call,  and  Bs.  24,900  of  the  second  call.  Notice  to  &e  effect 
that  all  shares  on  which  the  second  and  third  calls  have  not  been  pud 
ha^e  been  forfeited,  has  been  duly  given  to  registered  shareholden. 
The  directors  do  not  at  present  contemplate  making  any  foither  calk 
A  statement  of  the  income  and  expenditure  for  eleven  months  to  3(Hb 
June  is  laid  before  the  meeting.  The  balance  (rf  profit  and  loss  aooonnti 
viz.,  Bs.  3,59,720-15-2  the  directors  propose  to  carry  forward  to  tlie 
current  hsJf-year,  and  beg  to  express  their  regret  thai  they  cunwt 
recommend  the  payment  of  a  dividend  at  this  tinie.  Looking  tX^f 
monetary  crisis  which  has  existed  here  for  the  last  three  months,  it  is 
not  to  be  supposed  that  the  bank  will  escape  loss,  bat  meanwhild  the 
directors  cannot  estimate  accurately  the  exact  amount.  The  directors, 
however,  may  mention  that  although  in  some  cases  they  might  bare 
forced  the  sale  of  shares  held  in  security  for  advanoeH,  they  thongbt  it 
advisable  not  to  do  so  in  a  depressed  market^  and  are  o^ifideot  thit 
consequently  the  bank  is  now  in  a  much  better  position.  Since  tiie  be> 
ginning  of  July  the  prices  of  good  stock  have  much  improved,  and  the 
directors  venture  to  hope  that  the  course  they  have  adopted  will  ultimately 
prove  to  have  been  a  prudent  one.  With  the  view  of  extending  ezdnsg^ 
business,  the  diroctors  propose  opening  branches  of  the  bank  in  Cskotta 
and  London,  and  forming  local  committees  in  those  places.  The  shv^ 
holders  will  observe  in  the  balance-sheet  an  entry  of  Ba.  91,500  for  610 
shares  held  for  allotment  to  the  committees.  The  directors  had  hoped  ere 
this  to  have  had  the  branches  iu  operation,  but  the  unlooked-for  state  of 
local  affairs  has  for  a  time  prevented  the  arrangements  being  carried  ooi 
The  shareholders  will  have  to  elect  two  directors  in  room  of  Mr.  A.  C. 
Gumpert  and  Mr.  Nowrojee  Ardaseer  Dauver,  resigned.  The  sharebolden 
will  also  have  to  elect  two  auditors  for  the  ensuing  year.  The  direct^ii^ 
recommend  that  certain  clauses  of  the  articles  of  association  be  amen<iBd, 
viz. : — The  30th  article  of  association  by  adding  the  words  ^or  August 
after  the  'July'  in  the  said  article.  The  37th  arti<de  of  assodatkia  by 
striking  out  the  words  '  such  meeting'  where  they  first  occur  in  the  said 
article,  and  by  substituting  in  lieu  thereof  the  following  words:— *  Any 
meeting  of  which  notice  specifyinc^  the  intention  to  propose  toch 
resolution  shall  have  been  duly  given.'  The  100th  artide  of  aseoditioo 
by  adding  after  the  words  '  any  calls  that  may  have  been  made  npoo  tfy 
shares  of  such  shareholders  in  tiie  Company '  where  the  same  oocorintbe 
said  articles,  the  words  following,  that  is  to  say :  '  or  otherwise  buvscv 
ever  as  a  debt  due  to  the  company  from  him  either  alone  or  jointly  with 
any  other  person  or  persons.' " 

Balanee-fheet  to  90th  June,  1865. 

LlABILlTlEf. 

Capital  Accoant— First  call,  20,00,000 ;  second  call,  19,75,100 : 

third  caU,  19,87,700 ^            ...  59,12.900   <>  J 

Deposits,  billa  of  exchange,  and  other  sums  due  by  the  bank  17,01,516   7  > 

Adjustinflf  account         ,.•             ...            ...            ...            ,..  17,667  11  1* 

Profit  and  Iobs  account ...            ...            ...            ...            ...  8,69,7»)  15  2 

Total  Rupees...    79.91.705   ? 

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Bombay  Presidency  Bank.  1197 

▲68B1S. 

Cash  in  hand  ftnd  with  bankers*  ...            ,..  ...            ...  3,11,202  0  3 

House  property  in  Bombay          ...            ...  ...            ...  6,05,000  0  0 

GDvemment  securities  ...            ...            ...  ...            ...  8,94,772  8  0 

Shares  held  on  account  of  London  and  Calcutta  committees  ...  91,500  0  0 

Local  bills  discounted,  loans  on  securities,  bills  of  exchange 

parchased,  and  other  sums  due  to  the  bank  ...            ...  65,67,991  6  10 

D^Eid  stock,  fnmitorea  stamps,  stationery,  &c.  ...            ...  21,239  3  5 

Total  Ropees...    79,91,705    2    6 

FrqfU  and  Lost  Account  from  \st  August,  1864,  to  ZOth  June,  1865. 

Dr. 
Balance  carried  forward  to  profit  and  loss  new  account         ...      3,59,720  15    2 

Total  Rupees...      3,59,720  15    2 

Cr.  """"^"^^ 

Net  profits  after  deducting  preliminary  and  current  expenses, 
including  salaries,  directors*  remuneration,  interest  paid  and 
due  on  current  and  fixed  deposit  accounts,  income  tax,  &c.      8,59,720  15    2 

Total  Rupees...      3,59,720  15    2 

The  Chairman  then  said— -Gentlemen, — I  have  little  to  add  to  the 
report  which  has  been  read.  The  balance-sheet  has  been  in  your  hands 
for  the  last  week,  and  the  directors  are  happy  to  think  that  it  is  more 
favourable  than  was  at  one  time  anticipated.  After  a  careful  valuation 
of  our  assets,  I  am  able  to  say  that  the  probable  losses,  although  consider- 
able, will  not  be  so  heavy  as  to  interfere  in  any  way  with  the  working  of 
the  bank.  I  only  ask  yon  to  continue  that  support  and  confidence  in  the 
directors  which  you  have  hitherto  shown.  Two  of  the  directors  having 
resigned,  the  board  have  the  pleasure  to  recommend  in  their  places  Mr. 
Sapoorjee  Ardaseer  Pauday  and  Mr.  Kustomjee  Framjee  Metah.  The 
names  of  Mr.  A.  Huson  and  Mr.  J.  L.  Brodie  will  be  submitted  to  the 
meeting  as  auditors  for  the  next  year. 

The  following  resolutions  were  then  submitted  to  the  meeting  and 
carried  unanimously : — 

Proposed  by  S.  P.  Framjee,  Esq.,  seconded  by  Framjee  Bomunjee 
Cama — ^''That  the  report  of  the  directors  and  balance-sheet  be  adopted  and 
printed  for  the  information  of  the  shareholders,  and  that  a  statement 
giving  additional  information  be  prepared,  and  be  open  for  the  inspection 
of  any  registered  shareholder  at  any  time  in  business  hours  from  the  6th 
to  the  16th  August." 

Proposed  by  Jehangeer  Gkx>8tadjee,  Esq.,  seconded  by  Manockjee  Hor« 
musiee— **  That  Mr.  Sipoojee  Ardaseer  Panday  and  Mr.  Bustomjee  Fram* 
jee  be  elected  directors  of  the  bank." 

Proposed  by  Limjee  Jamsetjee,  Esq.,  seconded  by  Cursetjee  Sorabjee 
Wadia — ^'^That  Mr.  Arthur  Huson  and  Mr.  J.  L.  Brodie  be  appointed 
auditors." 

Proposed  by  Framjee  Hormusjee  Camasarywalla,  Esq.,  seconded  by 
Pestonjee  Kowrojee  Shroff,  Esq. — ^That  30th  article  of  association  be 
amended  by  addmg  the  words  '  or  against '  after  the  word  '  July '  in  the 
said  article." 

Proposed  by  Jehaugocr  Goostadjec,  Esq.,  seconded  by  Jehangeer  Bus- 


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1 198  Bank  of  Bombay. 

tomjee  Mody— "  That  the  37th  article  of  aBsodation  be  amended  bj 
atriking  out  the  words  *  such  meetiog '  where  they  firrt  oocur  in  B»id 
article,  and  by  substituting  in  lieu  thereof  the  following  words:  *ADy 
meeting  of  which  notice  specifying  the  intention  to  propose  soch  rewdn- 
tion  shall  have  been  duly  given.'  " 

Proposed  by  Frainjee  Bomanjee  Cama,  Esq.,  seconded  by  John  Forth— 
"  That  the  100th  article  of  association  be  amended  by  adding  sfter  the 
words  *  any  calls  that  may  have  been  made  upon  any  shares  <rf  roch 
shareholder  in  the  Company '  where  the  same  occur  in  the  said  article,  the 
words  following,  that  is  to  say  :  *  or  otherwise  howsoever  as  a  debt  due 
to  the  company  from  him,  either  alone  or  jointly  with  any  other  penon  or 
persons.' "  «     j 

Mr.  S.  P.  Framjee  then  proposed,  and  Mr.  Merwanjee  Ruttonjee  Parudt 
seconded,  a  vote  of  thanks  to  the  chairman  for  his  able  conduct  in  the 
chair,  and  the  proceedings  terminated. 


BkS¥i  OF  BOMBAY. 


Tbb  annual  general  meeting  of  the  proprietors  of  the  Bank  of  Bombay 
was  held  at  i^  offices  on  the  7th  August,  to  enable  the  directors  to  snbmH 
a  statement  of  the  affairs  of  the  bank  made  up  to  the  30th  June,  fiobeit 
Hannay,  Esq.,  chairman  of  the  board  of  directors,  presided.  All  the 
directors,  except  the  Hon.  Rustom jee  Jamsetjee  Jejeebhoy,  together  vxth 
a  niunber  of  shareholders,  were  present. 

The  Chairman  having  read  the  advertisement  calling  the  meeting,  W 
on  the  table  the  statement  of  accounts,  and  read  the  directors'  report, 
as  follows : — 

^'The  directors  have  now  to  submit  to  the  proprietors  a  statement 
of  the  affairs  of  the  bank  up  to  the  30th  June  last,  showing  a  net 
profit  of  the  half-year  of  Es.  19,82,065-3-6,  after  providing  for  current 
expenses  of  establishment,  interest  on  deposits,  and  deducting  Ks.  22^836-9-* 
for  a  loss  incurred  at  one  of  the  branches.  From  this  statement  it  irill 
readily  be  seen,  that  under  usual  circumstances  the  directors  would 
not  only  have  been  enabled  to  have  declared  a  liberal  dividend,  hot 
also  to  have  carried  a  handsome  sum  to  credit  of  reserve.  Lodds& 
however,  to  the  terrible  crisis  through  which  we  have  just  ptseed 
(the  most  trying  time  perhaps  for  bi^iks  and  commercial  men  ever 
seen  in  India),  and  considering  the  amount  of  liabilities  current  on 
30th  June,  the  directors  have,  after  much  anxious  deliberation,  resolred 
not  to  declare  a  dividend  for  the  past  half-vear.  This  they  have  already 
intimated  by  circular  to  proprietors  resident  in  Europe.  The  directon 
have  much  satisfaction  in  stating  that  since  30th  June  last  the  debts  dne 
to  the  bank  have  been  very  considerably  reduced.  Some  time,  howeTer, 
must  elapse  before  a  reliable  estimate  can  be  made  of  the  ultimate  loss  the 
bank  will  sustain  through  the  failure  of  many  of  its  unfortunate  con- 
stituents. They  trust,  therefore,  that  the  proprietors  will  approve  d 
the  course  adopted  by  the  directors  in  withholding  a  dividend  for 
the  past  half-year.  Taking  a  rather  unfavourable  view  of  liabititiaB 
current  on  30th  June  last,  the  directors  estimate  that  the  losses  vOl 
not  exceed  SO  lacs,  but  it  is  quite  possible  that  the  ultimate  loss  viQ 
be  nauch  less,  so  that  there  is  every  hope  of  shareholders  receiTio^ 
a  fair  dividend  at  the  end  of  the  current  half-year.  Since  the  b«t 
annual  meeting  of  proprietors,  new  branches  and  sab-branchcs  bare 


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Bank  of  Bombay.  1199 

been  opened  as  follows  : — ^Branches  at  A j  mere  and  Jubbulpore ;  sub- 
branches  at  AhmednuggUTy  DhoUera,  Secunderabad,  and  Wudwan. 
The  directors  have  pleasure  in  rei)orting  that  the  business  at  the  branches 
is  progressing  favourably,  although  the  government  treasuries  have  not  as 
yet  been  handed  over.  During  the  crisis,  when  for  the  first  time  in  the 
history  of  Bombay,  many  hoondees  were  not  paid  at  maturity,  it  was  feared 
that  the  branches  would  prove  a  serious  source  of  loss,  but  already  the  bulk 
of  past  due  hoondees  have  been  retired,  and  there  is  now  no  reason  to  doubt 
that  the  profits  of  the  bi*ancheB  will  considerably  more  than  meet  their 
losses.  Calls  on  the  new  capital  have  been  very  promptly  met ;  out  of 
Rs.  1,04,60,000  of  new  capital,  only  Bs.  76,690-2  remained  unpaid  on  the 
SOth  June  last.  When  this  sum  is  paid  the  total  capital  of  the  bank  will 
be  Bs.  2,09,00,000.  The  directors  have  much  pleasure  in  informing  the 
proprietors,  that  in  November  last  they  effected  a  favourable  sale  of  the 
premises  occupied  at  present.  The  net  amount  expended  on  the  building 
vas  Bs.  3,01,101-S-8,  and  the  amount  realised  by  the  sale  was  Bs.  6,05,000, 
80  that  they  were  thus  enabled  to  place  a  profit  of  Bs.  3,03,898-12-4  to  the 
credit  of  *  Best  account'  The  new  and  more  commodious  premises  in  the 
Elphinstone  Oirde  are  progressing  favourably,  and  will  probably  be  ready 
for  occupation  about  Ist  June  next.  A  very  erroneous  impression  having 
gone  abroad  relative  to  the  extent  of  the  bank's  advances  on  shares,  the 
directors  have  to  state  that  after  the  rescinding  of  an  old  rule  in  April 
last,  only  about  36  lacs  were  loaned  to  constituents  of  the  bank  on  the 
collateral  security  of  shares.  The  bulk  of  the  loans  granted  during  the 
past  year  were,  as  was  the  custom  of  the  bank,  granted  upon  personal 
security  only ;  and  during  the  crisis  when  these  loans  became  due,  if  con- 
stituents  were  unable  to  pay  in  full,  the  bank  never  hesitated  to  take  what 
collateral  security  it  could  obtain.  This,  it  is  presumed,  must  have  been 
the  origin  of  the  rumours  as  to  enormous  advances  having  been  made  upon 
shares.  For  the  information  of  the  proprietors,  there  are  hereto  appended 
copies  of  the  auditors'  rexx>rt  and  the  correspondence  that  passed  between 
GovemmBut  and  the  bank  regarding  a  proposal  made  by  the  former  that 
the  iMink  should  enter  into." 

Statement  qf4fairs  on  30th  June,  1865. 

Dr.  Rs. 

Proprietors'  capital  ...             .. 104,50,000 

Do.            do.    (new) 103,73,309 

Bank  notes  and  post  bills  in  circulation  at  head  office  and  branches  3,81,511 

Deposit  accounts  and  receipts,  and  all  other  liabilities     ...            ...  345,77,161 

Reserve  fond,  including  profit  for  the  half-year               ...            ...  30,39,068 

Rs.  588,21,049 

Or. 

Loan  and  cash  credit  accounts  on  deposit  of  securities    ...            ...  166,03,536 

Bills  discounted        229,41,396 

Deadstock 6,68,153 

Stamps        ...             ...            •••            •••             —             •••            •••  13,762 

Balance  with  correspondents...            ...            ...            ...            •••  14,21,049 

Do.     branches ^^?^'I$^ 

Cash  and  currency  notes  at  head  office              ...           ...           ...  116,76,403 

Rs.  588,21,049 


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1200  Bank  of  Bombay 

Statement  of  Profit  and  Loss  account  for  the  half-year  ending  30f  A  /hm,  I9€5. 


Dr.  B». 

Charges  at  head  office            ...            •••            ...            .-            ...  l,4l.$4<) 

Do.      at  branches               ..,            ...            ...            ...            ...  1,91,<»J3 

...                   ...                   ...                   ...  09t*'v» 

...            ...             ...  53/V)o 

8,041 

...  W^2.(k5 


Interest  paid  at  H,  0« 

Do*      do.  at  branches 
Auditors'  allowance ... 
Stationery  ... 
Balance  of  profit  and  loss 


Rs.  24,65,1^ 


Cr, 

Discormt  accounts  head  office  and  branches  ...  »..  ...  10,90,015 

Exchange  account        do.                     ...  ...  ...  ...  4,9(>.3T3 

Interest  account           do.                     ..»  ...  ...  ...  7,37,7:^ 

'  Commission  account     do.                     ...  ...  ...  ...  1,47,663 


Dr. 

Balance  of  Reserve  fimd  at  this  date 


Rs.30.39/«i^ 


Cr. 

Balanceof  reserve  fund,  31st  December,  1864  ...  ...  ...        7,5S.0S4 

Profit  on  the  sale  of  reserves  presently  occupied  by  the  bank        ...        ZS^^*^ 
Balance  of  profit  and  loss  'account  for  half-year  ending  30th  June, 

1865        ...  ...         "    ...  ...  ...  ...  ...       19,82,1^ 


Rs.  30.39.(W 


The  Chainnan,  in  addressing  the  meeting,  said : — ^Gentlemen,  is 
moving  the  adoption  of  the  report,  I  will,  with  your  leave,  make  a  fev 
remarks  upon  the  management  of  the  bank,  before  and  daring  the  veiy 
trying  period  through  wluch  we  have  just  passed.  No  one  present  <3& 
regret  the  losses  sustained  by  the  bank  more  than  the  directors  themselTes. 
Most  of  them  are  large  shareholders,  so  that  you  may  be  assured  in  evoj 
thing  they  did  they  considered  they  were  actmg  in  the  interest  cl  &e  pnv 
prietors.  The  past  three  months  has  probably  been  as  trying  a  time  hat 
as  ever  any  directors  had  to  contend  with.  Few  banks,  and  I  believe  verf 
few  individuab,  have  escaped  heavy  losses ;  and  as  the  Bank  of  Bombay 
was  the  chief  bank  of  discount,  dealing  with  enormous  sums  of  mon^,whn 
Bombay  and  its  inhabitants  were  supposed  to  be  revelling  in  wealth,  I U- 
lieve  that  had  it  in  1864>65  been  under  the  control  of  a  Hodgson,  a  Bowiii^. 
or  a  Lord  Overstone,  it  would  have  been  impossible  even  for  them  to  Ilat? 
avoided  heavy  losses  occurring  in  the  late  time  of  unprecedented  disa^ 
In  what  were  termed  the  good  old  times,  when  the  bank  sailed  under  is 
old  charter,  Bombay  was  a  very  different  place  from  what  it  is  to-d»T. 
In  those  good  old  days  the  limit  of  personal  security  was  3  lacs,  sz^ 
very  few  firms  or  individuals  required  more  up  till  say  1866.  Disoom:? 
were  then  very  trifling,  for  the  greater  part  of  the  bank's  funds  vcfc 
generally  locked  up  in  Government  paper,  and  the  bulk  of  the  loans  v^ 
at  low  rates  on  similar  securities.  The  bank  sailed  easily  on,  doing  vei; 
little  good,  but,  it  is  true,  no  harm.    When  investments  left  a  profit,  s  7 


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Bank  of  Bombay.  120 1 

or  8  per  cent.  diTidend  was  paid,  bnt  when  Goyemment  paper  was  dull, 
shareholders  had  frequently  to  be  content  with  6}  per  cent.  During 
the  first  sixteen  years,  say  from  1841  till  1856  inclusive,  the  annual 
average  dividend  was  about  6}  per  cent.  From  1857  till  now  (including 
this  half-year  without  a  dividend)  the  average  has  been  10|  per  cent.,  but 
taking  1863, 1864, 1865,  the  period  during  which  the  new  charter  has  been 
in  operation,  the  average  dividend  (still  including  this  blank  half-year) 
has  been  over  12^  per  cent.,  and  this  upon  a  greatly  increased  capital. 
From  1856  the  commercial  growth  of  Bombay  has  been  rapid ;  greater 
facilities  than  the  Bank  of  ]£>mbay  could  give  were  required,  and  these 
were  met  chiefly  by  the  yearly  increasing  exchange  banks.  Much  for  the 
benefit  of  shareholders,  the  system  of  investing  in  Government  paper  was 
given  up,  under  the  presidentship  of  Mr.  Birch,  one  of  the  ablest  financiers 
it  haft  been  my  good  fortune  to  meet  in  India.  This  gave  the  bank  more 
power  for  good,  but  it  was  soon  found  that  the  capital  was  insufficient ; 
also  that  the  restrictions  in  the  old  charter  were  antiquated,  and  Required 
revision.  Whatever  may  be  said,  I  consider  that  you  had  then  sagacious 
men  on  the  direction.  The  new  Act  was  carefully  considered  at  the  council 
board  and  by  special  committees,  and  the  result  was  the  passing  of  it 
without  restrictions  as  to  amount,  and  with  permission,  when  deemed 
admissible,  to  advance  on  shares  in  public  companies.  The  result  of  this 
was  an  enormous  increase  of  business,  and  handsome  dividends  to  the 
shareholders,  and  although  large  sums  were  advanced  on  personal  security, 
until  within  the  past  twelve  months,  the  bank's  only  loss  was  Ks.  20,000. 
The  directors  had  thus  increased  confidence  in  the  profit  and  safety  of 
large  personal  loans,  and  one  of  the  native  directors,  who  was  on  all  sides 
considered  the  most  'sagacious  man  of  his  community — I  allude  to  Mr. 
CJowasjee  Jehangeer — ^proposed  that  the  secretary  and  treasurer  from  his 
long  experience  should  not  only  have  full  power  to  grant  loans  on  his  own 
jiidgment,  but  should  also  have  a  vote  at  board,  and  power  of  veto  over 
the  recommendations  of  directors.  This  was  not  agreed  to,  but  greater 
latitude  was  given  to  the  secretary,  and  in  1864,  when  Bombay  was  in  the 
heyday  of  prosperity,  loans  were  granted  to  the  then  considered  good  men, 
with  a  free  hand.  At  this  time  it  was  again  proposed  to  double  the  capitaL 
Shareholders,  the  press,  and  the  public  applauded :  the  act  was  done.  New 
shares  were  issued,  and  those  who  chose  to  sell  had  an  opportimity  of 
making  profits  equal  to  many  years'  dividends.  Had  the  present  state  of 
matters  been  then  foreseen,  no  doubt  a  handsome  reserve  would  have  been 
formed  out  of  the  new  issue,  but  instead  of  this  the  greater  part  of  another 
crore  was  loaned  to  the  eager  public.  In  the  now  ^tered  state  of  things 
it  may  possibly  ere  long  be  found  that  the  capital  is  too  large.  We  now 
approach  the  time  when  the  present  directors  had  their  work  to  do.  In 
the  early  part  of  the  year  applications  for  discoimt  and  loans  were  enor- 
mous ;  with  a  view  to  check  this  the  bank  rate  was  raised  week  alter 
week.  The  bulk  of  the  money  then  given  was  lent  to  purchasers  of  pro- 
duce, and,  as  we  believed,  few  of  the  loans  granted  were  for  the  purpose  of 
local  speculation.  Soon  after  this  came  the  collapse  in  cotton,  and  with  it 
the  ooUai>8e  of  Bombay.  The  management  of  the  bank  was  then  a  matter 
of  ceaseless  anxiety  to  your  directors,  and  for  my  own  part  I  can  say  the 
cause  of  many  a  sleepless  hour.  Loans  were  scrutinised  with  the  utmost  care, 
and  were  granted  only  in  cases  where  they  appeared  to  be  likely  to  be  produc- 
tive of«general  good.  The  times  being  so  peculiar,  after  due  consideration  we 
thought  that  circumstances  would  warrant  the  relaxing  of  rules  and  the  lend- 
ing to  constituents  who  had  the  bulk  of  their  funds  locked  up  in  first  class 
securities.    It  was  too  late.    Shortly  after,  the  great  share  collapse  came  like 


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1202  Bank  cf  Bombay, 

a  peal  of  thnnder,  and  the  rule  was  placed  In  abeyanoe  after  adranoM  bad 
been  made  to  the  extent  of  only  about  thirty-five  lacs.  Sir  ChaxieB  Wood, 
in  his  budget  speech,  says  : — "  Somehow  or  other — ^I  don't  know  how— 
the  bankers  of  Bombay  got  the  power  in  their  charter  of  adTaDcingmonej 
cm  speculatiye  shares,  and  they  used  that  power  to  a  considerable  extent. 
I  wrote  early  in  the  year  to  Sir  Bartle  Frere,  calling  his  attention  to 
the  necessity  of  looking  after  what  they  were  doing ;  and  whether  is 
consequence  of  my  letter  or  not  I  can't  say,  but  the  goremment  direc- 
tors went  down  to  the  bank,  and  on  their  representations  it  ceased  to  do 
that  which  it  had  been  doing  for  some  time,  viz.,  advancing  lar]gelj  oo 
these  shares.  It  was  very  wrong  ever  to  have  advanced  money  in  tint 
way  at  all,  upon  a  perfect  unnegotiable  security.  Whatever  rmnoim  maj 
have  reached  this  country,  I  wish  to  state  that  the  bankers  in  Bomhay 
will  in  future  go  on  in  the  ordinary  way,  and  there  need  be  no  appre- 
hension in  the  public  mind  on  this  subject."  Here  he  must  endentlj 
have  been  misinformed.  What  he  may  have  written  to  Sir  Barfcle  Frere, 
we  do  not  know  ;  but  you  are  now  aware  that  we  did  not  advance  largely 
upon  shares,  and  the  statement  about  the  government  directors  eomii^ 
down  is  simply  an  illusion.  After  all  you  have  heard  and  read  outsde, 
you  may  possibly  be  surprised  when  I  teU  you  that  out  of  the  35  lakhi 
advanced  on  shares,  only  from  6  to  7  lakhs  of  this  was  lent  upon  shareB  is 
the  Bombay  Reclamation  Company ;  and  even  these  advances  were  to 
men  whose  personal  security  any  of  you  would  have  taken.  Eight  asd  a 
half  lacs  were  advanced  upon  shares  in  the  Elphinstone  Land  Compaiij 
at  a  premium  which  I  believe  any  of  you  will  be  most  willing  to  girei 
month  or  two  hence.  The  balance  of  the  sum  na^ed  was  upon  ahara 
in  chartered  banks.  Many  of  these  loans  are  already  paid  up,  and  npM 
others  additional  security  has  been  obtained.  Our  policy  may  hate  Iwb 
wrong :  it  is  easy  to  prophecy  after  an  event ;  but  at  the  time  the  cry  of 
the  public  and  the  press  was,  "  What  is  the  Bank  of  Bombay  ahoct  I 
With  two  and  a  half  crores  of  cash,  why  should  it  not  freely  help  the 
public  ?"  My  belief  is  that  during  the  past  four  months  the  course  parsoed 
by  the  Bank  of  Bombay  and  one  or  two  other  establislmientB,  has  done 
much  to  lessen  the  severity  of  the  crisis,  as  well  as  to  prevent  the  gcocral 
ruin  of  Bombay : — ^first  by  judicious  and  well-timed  loans  to  institntio» 
and  to  individuals ;  next  by  not  pressing  good  constituents  in  the  midat  oi 
panic.  Had  we  adopted  the  latter  course,  what  would  have  been  the 
result  f  [  leave  you  to  picture  it.  Whatever  may  have  been  the  mistakeB 
(who  will  throw  the  first  stone,  and  say  he  has  not  made  one  during  tb« 
past  year  T)  whatever  the  shortcomings,  whatever  the  much-to-be-regrett« 
di8apx)ointment  to  shareholders,  I  again  maintain  that  we  have  done 
much  to  avert  a  eeneral  bankruptcy.  Many  of  our  constituents  are  aware 
of  this,  and  I  feel  confident  that  the  day  is  not  far  distant  when  our 
actions  will  receive  juster  and  firmer  criticism.  Considering  Uie  amovst 
of  local  business  done,  I  have  no  hesitation  in  saying  that  the  losaee  d  v» 
Bank  of  Bombay  will  be  smaller  in  proportion  to  the  amount  of  i^ 
transactions  than  those  of  almost  any  other  institution  in  Bonb^i 
although  the  bulk  of  our  loans  were  granted  upon  personal  security  oiuj- 
From  accounts  now  before  you  it  will  be  seen  that  the  net  profits  are  aboot 
twenty  lacs  for  the  half-year^  making  the  total  amount  of  rest  neariy 
thirty  lacs.  This,  in  the  opinion  of  the  directors,  will  more  than  «)▼« 
the  losses  on  past  due  bills,  and  all  business  current  on  the  SOth  of  Jqo«> 
If  we  are  right,  and  there  is  no  present  reason  to  doubt  it,  I  think  wa  tfj 
to  be  congratulated  on  getting  so  well  out  of  such  a  time  of  difficmty  ana 
disaster.  For  my  own  part  I  should  be  sorry  to  see  any  gr«»*  alterati* 
in  your  new  charter  ;  it  has  been  found,  in  my  humUe  opinion,  to  work 

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Bank  of  Bombay.  1203 

veil,  and  past  sore  experience  will  I  tnist  enable  the  directors  in  future  to 
work  under  it  with  some  hope  of  large  profits  to  shareholders.  During  the 
pa-st  six  months  a  bank  doing  local  business  must  have  lost  heavily  under 
any  charter,  and  in  these  days  were  you  to  go  back  to  the  old  charter  it 
would  be  about  equivalent  to  letting  the  bank  die  a  natural  death ;  nor 
w^ould  it  be  kept  long  in  pain.  I  must  not  forget  to  mention  the  great 
moral  support  received  by  the  bank  in  the  late  trying  times,  both  from  Sir 
Bartle  Frere,  and  the  Governor-General.  I  hope  this  bank  may  never 
re(iuire  the  aid  of  government ;  but  it  was  a  comfort  to  the  directors  in 
such  a  time  of  difficulty,  to  know  tliat  they  would  have  the  assistance  of 
government  in  case  of  need,  and  knowing  this  they  were  enabled  to  give 
timely  support  in  many  quarters.  I  have  much  pleasure  in  stating  that 
during  the  late  trying  time  great  unanimity  has  prevailed  at  our  weekly 
meetings  ;  each  director  has  done  his  utmost  for  the  benefit  of  the  bank, 
and  we  have  received  great  assistance  and  encouragement  from  the  cordial 
co-oi)eration  of  the  government  directors,  Messrs.  Lushington  and  Chap- 
man. During  the  past  ten  or  twelve  years,  I  think  I  have  known  all  the 
government  directors — most  of  them  I  have  known  intimately, — and  I 
hesitate  not  to  say  that  no  more  upright  and  honourable  men  ever  sat  at 
any  board.  I  feel  convinced  tliat  the  most  hostile  critic  or  inspector  woiild  # 
fail  to  discover  that  they  ever  assisted  in  passing  a  single  resolution,  or  in 
carrying  out  a  single  transaction,  from  a  selfish  motive.  Sometimes  they 
were  thought  to  favour  government  a  little  too  much,  but  this  was  all. 
Mr.  Birch  was  a  model  director,  and  a  man  of  business  ;  he  did  much  for 
your  welfare,  and  I  hope  his  portrait  may  long  adorn  the  board  room  of 
your  new  building.  Mr.  A.  D.  Robertson  has  been  much  blamed  with 
reference  to  the  new  charter ;  but  if  the  truth  were  told  I  think  it  would 
be  found  that  his  brother  directors  considered  him  exceedingly  obstructive, 
not  only  in  objecting  to  some  clauses  now  in  the  bill,  but  also  to  some 
others  which  possibly  but  for  him  might  have  been  there.  I  will  say  a 
word  about  Mr.  Premchund  Roychund,  of  late,  perhaps,  the  best  abused 
man  in  the  three  Presidencies.  He  is  said  to  have  ruined  the  Bank  of 
Bombay,  being  dictator  and  director-in-chief ;  but  the  bank  is  not  ruined, 
gentlemen ;  and  if  you  ask  Mr.  Premchund,  he  will  tell  you  that  many  of 
his  proposals  have  met  with  considerable  opposition  at  the  board.  It  is 
very  true  that  many  loans  have  been  granted  during  the  past  year  on  his 
recommendation ;  but  it  is  equally  true  that  this  has  been  the  case  for  the 
past  ten  years ;  and  until  lately  1  do  not  think  there  was  a  bank  manager 
in  the  place  who  was  not  eager  for  his  advice ;  nor  until  lately,  do  I  think 
there  was  one  who  lost  a  rupee  by  taking  it.  Before  you  made  Mr. 
Premchund  a  director,  the  most  common  remark  in  circulars  returned  by 
our  native  colleagues  was  **  Better  ask  Mr.  Premchund,  and  be  guided  by 
his  opinion."  Bear  with  me  for  a  moment  on  a  personal  matter,  and  I  have 
done.  Mr.  Tracey's  name  and  my  own  have  been  made  free  use  of.  We 
have  been  pointed  at  as  speculators  who  had  no  right  to  be  at  this  board. 
I  believe  that  all  merchants  are  more  or  less  speculators.  Be  this  aft  it 
may,  it  is  some  consolation  to  my  colleague  and  myself  to  be  able  to  tell 
you  that  we  have  not,  for  our  firms  or  for  ourselves,  borrowed  one  rupee 
from  the  Bank  of  Bombay,  directly  or  indirectly,  neither  have  we  recom- 
mended a  friend  to  do  so.  I  will  also  publicly  mention — what  many  of 
you  may  possibly  be  aware  of — that  1  have  never  been  concerned  in  a  time- 
bargain,  whether  on  stamped  paper  or  unstamped.  I  always  looke<l  upon 
time-bargains  in  produce  as  being  a  hindrance  to  trade,  and  anxiously 
hoped  they  might  nave  been  suppressed.  As  for  time-bargains  in  shares, 
they  have  been  the  curse  of  the  place,  and  I  believe  a  source  of  grief  to  all 

Digitized  by  LnOOQ IC 


1204  Merchant  Banking  Company  of  London. 

who  have  had  to  do  with  them.  For  the  good  of  Bombay,  then,  lei  us 
hope  there  is  not  an  institution  or  a  man  in  the  place,  willing  to  hare  any- 
thing to  do  with  them  henceforth,  and  for  ever.  The  presidentship  of  this 
bank  I  consider  to  be  a  post  of  high  honour,  but  it  has  grave  responaibiliticB 
attached,  and  it  has  not  been  to  me  a  bed  of  roses  since  Mardi  last  1 
have  upon  more  than  one  occasion  offered  to  resign  it,  as  well  as  my  seat 
at  the  board,  but  my  fellow  directors  said  "  No."  I  tender  you  my  re- 
signation now.  If  you  accept  it,  good  and  well ;  if  not,  health  permittbg, 
I  am  willing  to  work  on  to  the  best  of  my  ability,  and  Unst  that  you  msj 
have  a  more  cheeripg  report  read  to  you  at  your  next  meeting.  I  moTe, 
^*  That  the  report  and  accoimts  now  before  you  be  adopted,  printed,  and 
circulated  amongst  the  proprietors." 

Mr.  Lidderdale  seconded  the  motion,  which  was  carried  unanimously. 

Sir  Jamsetjee  Jejeebhoy  moved  '^  That  the  president's  address  to  thii 
meeting  be  also  printed  and  appended  to  the  directors'  report." 

The  Hon.  George  Foggo  seconded  the  motion,  and  remarked  that  h« 
hoped  the  chairman's  anticipations  would  be  realised. 

The  motion  having  been  carried, 

Mr.  Muncherjee  Nowrojee  Banajee  moved  ^  That  Mr.  James  Banta 
and  Mr.  J.  G.  Tyndall  be  re-elected  auditors  to  the  bank  for  the  cnrrmt 
*  year." 

Mr.  Jehangier  Hormusjee  Chinoy  seconded  the  motioxi,  which  was  also 
carried  without  comment. 

As  the  proceedings  of  the  meeting  were  about  to  terminate.  Sir  Jamsetjee 
Jejeebhoy,  addressing  the  chairman,  said  :  "  I  b^  to  propose  that  too 
retain  your  seat  at  the  board — we  have  great  confidence  in  you." 

Dr.  CoUum  remarked  that  as  the  meeting  seemed  to  have  eveiy  ono- 
fidenoe  in  the  directors,  he  thought  that  a  vote  of  confidence  should  be 


Sir  Jamsetjee  Jejeebhoy  then  proposed  "  That  the  shareholders  of  the 
bank  have  every  confidence  in  the  chairman  and  directors^  and  that  their 
thanks  be  accorded  to  them." 

Dr.  Collum  seconded  it. 

The  resolution  was  then  put  to  the  meeting  and  carried  unanimooaly- 

The  meeting  then  broke  up. 


MERCHANT  BANKING  COMPANY  OP  LONDON. 

An  ordinary  general  meeting  of  the  shareholders  of  this  company  w^ 
held  on  the  14th  September,  at  the  London  Tavern ;  Mr.  John  PafeoKffl 
in  the  chair. 

The  Secretary  (Mr.  B.  W.  Ball)  having  read  the  notice  convening  the 
meeting, 

The  Chairman  observed  that  hon.  proprietors  were  aware  thai  by  the 
articles  of  association  it  was  not  necessary  that  a  meeting  of  thepxo^eton 
should  be  held  oftener  than  once  a  year ;  but  the  directors  thought  it  vas 
fitting  and  wise  to  call  them  together  at  a  shorter  interval,  in  order  that 
any  explanations  which  might  be  required  should  be  afforded  to  them.  It 
was  very  gratifying  to  him  to  be  able  to  state  that  the  businea  of  the  baiiA 
up  to  the  30th  of  Jime  last,  to  which  time  the  accounts  had  been  made  up, 
had  been  most  satisfactory,  the  progress  of  the  institution  more  than  equal- 
ling the  anticipations  of  the  directors.  It  was  hardly  necessary  to  say  thai 
the  interest  account  was  not  so  large  this  year  as  last,  becanse  in  an  insti- 


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Merchant  Banking  Company  of  London.  1205 

tution  like  the  Morohaiit  Bank,  it  was  necessary  to  keep  a  large  amount  of 
their  funds  at  call  at  the  bankers'.  During  the  year  1864  the  company 
receiyed  from  7  to  8  per  cent,  upon  such  funds,  but  in  consequence  of  the 
decline  of  interest  during  the  last  six  months  they  had  only  receiyed  from 
3  to  5  per  cent.  The  interest  accounts  of  the  customers  of  the  bank  also 
showed  a  decline  of  something  like  3  per  cent,  as  compared  with  1864.  He 
did  not,  however,  conceive  that  it  was  desirable  that  a  very  large  amount 
of  the  profit  should  be  made  out  of  a  high  rate  of  interest,  because  when 
interest  ruled  from  £7  to  j£9  per  cent.,  it  indicated  an  unsound,  if  not  alto- 
gether an  unsafe,  state  of  trade,  and  he  for  one  thought  that,  since  interest 
had  declined  to  4  or  5  per  cent.,  a  better  state  of  trade  had  arisen.  Except 
as  regarded  the  interest  account  the  business  of  the  Merchant  Banking  Com- 
pany had  been  quite  equal  to  the  expectations  of  the  directors,and  they  had  no 
hesitation  in  declaring  the  ad  inieram  dividend  of  £8  percent,  per  annum  upon 
the  last  half-year's  work.  They  might  be  asked  why  they  did  not  declare  a 
dividend  of  £10  per  cent.,  as  on  the  occasion  of  the  last  ad  iidtrim  divi- 
dend ;  but  his  answer  was,  that  whereas  they  could  at  that  time  get  1\ 
per  cent,  for  their  money,  they  could  not  now  obtain  more  than  from  4 
to  5  per  cent.,  and  that  relatively  the  shareholders  were  in  precisely  the 
same  position,  because  the  bank  gave  them  a  dividend  in  eaich  case  at  a 
rate  exceeding  the  current  rate  of  interest  by  3  per  cent.  Moreover,  the 
directors  did  not  consider  it  good  policy  to  declare  excessive  dividends 
until  they  had  considerably  reduced  the  sum  due  on  account  of  the  amal-. 
gamation,  and  had  raised  a  sufficient  reserve  fund.  The  amalgamation 
account  was- a  very  large  one,  and  the  directors  conceived  that  they  would 
be  acting  in  the  interests  of  the  company  if,  while  declaring  what  might 
be  considered  a  fair  dividend,  they  took  the  opportunity  of  liquidating  the 
amalgamation  account  within  the  shortest  possible  period.  They  intended 
to  abolish  it  within  the  next  few  years,  because  they  were  convinced  that 
if  it  was  not  now  in  existence,  the  shares  of  the  company  would  be  worth 
100  per  cent,  above  the  present  value.  If,  therefore,  they  were  able  to 
decla^  a  dividend  at  the  rate  of  8  per  cent,  for  the  next  few  years,  and, 
at  the  same  time,  take  measures  to  extinguish  that  debt,  it  would  raise 
the  shares  to  their  proper  value,  while  the  shareholders  would  be  receiving 
virtually  something  like  40  per  cent.  By  the  articles  of  association, 
whenever  they  declared  a  dividend  above  6  per  cent,  they  were  bound  to 
place  a  sum  equal  to  the  excess  to  the  reserve  fund,  so  that  while  they 
were  declaring  a  dividend  of  8  per  cent.,  they  were  necessarily  placing  also 
3  per  cent,  to  the  reserve.  The  dividend  would  absorb  £10,000,  and  the 
remainder  of  the  profits,  deducting  the  working  expenses  and  contingen- 
cies, had  been  carried  forward  to  Uie  annual  account.  Of  course,  it  would 
be  understood  that  it  was  impossible  in  such  a  business  as  theirs  to  balance 
the  accounts  oftener  than  once  a  year,  but  he  assured  the  meeting  that 
the  profits  amounted  to  a  very  considerable  siun.  He  now  begged  to  move 
that  a  dividend  of  8  per  cent,  per  annum  be  declared,  stating  at  the  same 
time  that  he  should  be  happy  to  answer  any  questions  hon.  proprietors 
might  have  to  put  to  him. 

A  Proprietor  called  attention  to  the  great  depression  of  the  shares  of 
the  company  in  the  Stock  Exchange,  and  inquired  of  the  board  to  what ' 
they  attributed  the  sudden  fall  iiom  a  premium  of  8  per  cent,  to  par. 

Mr.  Law  could  not  help  thinking  that  the  depreciation  in  the  shares 
arose  from  the  over-candour  of  the  chairman,  who  stated  at  the  last  meeting 
that  advances  were  made  to  the  full  extent  of  produce  securities,  and  inas- 
much as  about  that  time  the  whole  of  the  produce  markets  experienced 
an  alarming  depression,  and  several  failures  took  place,  the  public  naturally 
V6L.  XXV.  92 


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1206  Bank  of  Engliuid. 

enough  associated  the  bank  with  the  state  of  the  {voduoe  mazket,  and  the 
price  of  shares  fell  in  consequence.  He  should  be  glad  uf  some  explanation 
uiK>n  this  point ;  and  wished  particularly  to  know  whether  the  bank  con- 
tinued to  advance  to  the  full  amount  of  the  securities  presented  to  them. 

The  Chairman  explained  that  there  was  S(»ne  misapprehenakm  npi'D 
the  point.  The  principle  upon  which  the  bank  oondu<^ed  its  biuiness 
was  not  in  any  case  to  advance  abov«  three-fourths  of  the  seonriti^ 
What  he  state<i  was  that  there  were  many  sale  houses  who  never  woold 
pledge  their  securities,  and  that  in  such  cases  they  had  done  business  with- 
out exacting  any  such  pledges,  but  certainly  the  general  nndentanding 
was  that  they  never  went  beyond  three- fourths  of  the  securities. 

A  Proprietor  said  that  the  true  criterion  of  tiie  state  of  the  bank  m 
the  price  of  the  shares,  and  they  had  fallal  considerably,  no  doubt  oving 
to  the  impression  that  it  must  have  sustained  great  losses  by  the  depressiiHi 
of  the  produce  market. 

The  Chairman  assured  the  hon.  proprietor  that  he  had  taken  a  in«t 
mistaken  view  of  the  question.  The  business  of  the  Merchant  Banking 
Company  was  in  no  way  regulated  by  the  operations  of  the  St^ick 
Exchange.  Ko  doubt  a  general  fall  in  shares  had  taken  place,  but  it  wss 
quite  Buihcient  for  him  to  state  that  not  only  had  no  oonsider&ble  loses 
been  made— in  fact  none  of  consequence — ^but  that  the  board  bad  not  in 
the  slightest  degree  departed  from  the  sound  mode  of  doing  bnsines 
adopted  by  the  eminent  firm  with  which  an  amalgamation  had  taken  place- 
Of  course  no  bank  enjoyed  a  perfect  immunity  from  leases,  and  if  they 
could  insure  that  this  would,  he  for  one  should  <Mily  be  too  glad  to  boy  up 
tiie  whole  concern.  At  the  same  time,  the  losses  had  been  very  small,  and 
in  no  way  justiiied  the  fall  in  the  shares.  He  must  state  onoefor  all,  thst 
the  board  conducted  their  business  on  sound  banking  principleSy  and  weie 
totally  uninfluenced  by  what  took  place  on  the  Stock  Exchange. 

Mr.  Butler,  a  director,  stated  that  the  loss  on  produce  had  taken  pl»>? 
chiefly  in  the  article  of  cotton,  with  whidi  the  Merchant  Banking  Companj 
had  had  little  or  nothing  to  do.  The  whole  supposition  of  losses  susUiBeJ 
was  based  on  an  entire  misapprehension,  and  arose  frcnn  the  fact  tbit 
because  the  bank  made  advances  on  produce,  and  because  the  prodno? 
market  had  been  depressed,  losses  must  have  been  sustained  by  the  Bjoik 
to  a  considerable  amount.  On  the  contrary,  the  losses  of  the  company  bad 
been  very  small.     (Hear,  hear.) 

Mr.  Law  expressed  himself  much  gratified  at  the  statements  wbidi  bad 
been  made  by  the  board,  which  he  hoped  would  put  an  end  to  the  iiu«- 
apprehensions  that  had  certainly  existed  in  reference  to  the  positi<»  ol  the 
company. 

The  resolution  for  the  declaration  of  the  dividend  proposed  by  the  board 
was  then  put  to  the  meeting  and  carried  unanimously,  and  a  vote  of  tbani* 
to  the  chairman  and  directors  terminated  the  prooeedinga. 


BAim  OF  ENGLAND. 
A  GEinsRAL  court  of  the  proprietors  in  this  oorporatkMa  was  held  in  the 
bank  parlour,  on  the  14th  September,  under  the  presidency  of  Hejuj 
I^fel?t  Holland,  Esq.,  the  gotemor. 

The  Secretary  having  read  the  minutes  of  the  former  meeting, 
J^®  1    ^®"^^^  ^^  ^®  ^^  ^  acquaint  the  court  that  this  wa»  one  of  the 
quarterlygeneral  courts  appointed  by  the  charter,aad  thai  it  ww  one  of  Utf 


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Bank  of  England.  12U7 

half-yearly  general  courts  appointed  by  the  12th  bye-law  for  the  making  of 
dividends ;  that  the  net  profits  of  the  half -year  ending  the  31st  Augiist 
last  were  i£704,269.  4«.  6d.,  making  the  amount  of  the  rest  on  that  day 
£3,733,946.  Ss.  Id.,  and  that  after  providing  a  dividend  at  the  rate  of 
5  per  cent.,  the  rest  would  remain  at  £3,006,296.  3«.  Id.  The  court,  there- 
fore, would  be  asked  to  adopt  the  recommendation  for  a  dividend  at  the 
rate  of  6  per  cent,  upon  and  after  the  10th  of  October  next,  without  deduc- 
tion for  income  tax.  (Hear,  hear.)  The  Gk)vernor  said  that  no  doubt  the 
proprietors  were  prepared  for  the  announcement  of  a  smaller  dividend  than 
the  previous  one,  but,  taking  into  consideration  all  matters,  he  thought 
they  would  agree  with  him  that  there  was  great  reason  to  be  satisfied,  and 
therefore,  there  would  be  no  dissentient  voice  to  the  resolution  proposing 
to  pay  that  dividend.  (Hear,  hear.)  He  then  formally  moved  that  the 
dividend  at  the  rate  of  6  per  cent,  be  declared,  and  stated  that  the  warrants 
would  be  ready  on  the  11th  of  October  next. 

Upon  the  motion  that  the  court  be  adjourned, 

Mr.  Moxon  wished  to  ask  one  or  two  questions.  Last  year  he  asked 
the  directors  whether  they  intended  to  allow  the  payment  of  interest  on 
deposits,  and  the  answer  given  was  that  the  court  had  taken  the  matter 
into  consideration,  but  had  not  made  up  their  minds  upon  the  subject. 
He  now  repeated  the  question.  Another  point  was  one  of  great  import- 
ance, and  that  was,  as  to  the  state  of  the  debenture  debt,  in  which  the  bank 
was  alleged,  out  of  doors,  to  be  largely  affected  with  railway  companies. 
One  of  the  directors  of  the  Bank  of  England  had  taken  the  trouble  to  write 
to  the  newspapers  upon  the  subject  of  the  debentures  of  the  Great  Eastern 
ilailway  Company,  and  he  wished  to  know  whether  the  Bank  of  England 
were  large  holders  of  that  company's  debentures.  He  was  anxious  to 
know  this,  as  in  the  next  session  of  parliament  some  action  might  be  taken 
upon  the  subject.  It  was  asserted  that  the  Bank  of  England  held  deben- 
tures  in  different  railway  companies  to  the  extent  of  between  £8,000,000 
and  £9,000,000,  and  in  the  interest  of  the  proprietors  and  the  public 
generally  he  wished  to  know  whether  such  was  the  case.  Whether  the 
question  was  answered  or  not,  he  hoped  that  the  matter  would  receive  due 
attention  at  &e  hands  of  tbe  court  of  directors  at  a  future  period. 

The  Crovemor  said  that  with  regard  to  the  first  question  he  thought  the 
hon.  proprietor  had  misunderstood  the  answer  of  the  late  governor.  The 
subject  of  interest  on  deposits  was  every  now  and  then  pressed  on  the 
directors.  But  that  was  a  question  wider  and  larger  than  at  first  sight 
sq)peared.  No  person  could  say  what  changes  might  take  place,  but  at 
present  the  directors  were  of  opinion  that  it  was  not  the  interest  of  the 
bank  to  allow  interest  on  deposits.  (Hear.)  The  second  question  was  a 
very  proper  one,  and  the  attention  of  the  directors  had  been  called  to  it. 
Though  they  had  not  held  anything  like  the  amount  of  debentures  men* 
tioned  by  the  hon.  gentleman,  they  held  a  considerable  amoimt,  something 
like  £4,000,000.  But  they  had  the  pick  of  the  railway  debentures,  and 
had  not  only  good  secarity  but  the  respectability  of  the  directors  and  of 
the  management  generally. 

Mr.  Moxon  asked  what  amount  of  Great  Eastern  debentures  was  held. 

The  Gk>vemor'Baid  they  did  not  hold  any  great  amoimt  of  the  Great 
Eastern.  There  were  fifteen  or  sixteen  railways  whose  debentures  they  held, 
but  the  amount  of  any  one  was  not  very  large.  In  this,  as  in  other  instances 
by  consulting  their  own  interest  they  were  doing  all  that  could  be  required 
of  Uiem  for  the  defence  of  the  public.  The  House  of  Commons  might, 
take  some  action  in  the  spring,  and  it  was  a  matter  more  for  that  body 
than  Uie  Bank  of  England. 


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1208         London  Bank  of  Mexico  and  South  America. 

Mr.  Moxon  referred  to  the  case  of  the  West  Hartlepool  to  show  tb« 
dauger  of  these  securities. 

The  dividend  was  then  agreed  to. 

On  the  motion  of  Mr.  Cavoy  seconded  by  Mr.  Botley,  a  Tote  of  thanks 
was  passed  to  the  governor  and  directors. 


LONDON  BANK  OF  MBXICO  AND  SOUTH  AMERICA,  LtMITED. 
Thb  half-yearly  general  meeting  of  the  proprietors  of  this  company  wis 
held  on  the  19th  September,  at  the  London  Tavern ;  Mr.  J.  Patenoa  in 
the  chair. 

The  report,  which  was  taken  as  read,  was  as  follows  : — **  In  oompliMioe 
with  the  request  expressed  by  the  shareholders  at  the  last  general  meeting, 
to  the  effect  that  such  meetings  should  in  future  be  held  half-yearly,  the 
directors  have  pleasure  in  calling  them  together  on  the  present  oocs«ioD, 
for  the  purpose  of  submitting  the  subjoined  statement  of  accounts,  duly 
vouched  by  the  auditors,  and  of  declaring  an  interim  dividend.  Frfun 
these  accounts  it  will  be  seen,  that  for  the  six  months  ending  JuneSOth  Ivt 
the  business  of  the  bank  at  its  several  branches  has  made  very  satisfactoiy 
progress;  the  net  profits,  after  deducting  rebate  of  interest,  cuTTcnt 
expenses,  and  providing  for  bad  and  doubtful  debts,  amounting  to 
£2!2,884. 17«.  1(1.,  or  about  20  per  cent,  per  annum  on  the  paid-up  c^itil 
of  the  bank,  which,  with  the  sum  of  £1,964. 2s.  brought  forward  from  Itft 
account,  makes  an  available  total  of  £24,848.  19i.  Id.  This  sum  the 
directors  recommend  should  be  dealt  with  as  follows : — To  the  payment «! 
an  interim  dividend  for  the  half-year  ending  30th  June,  of  10».  pet  share, 
being  at  the  rate  of  about  9  per  cent,  per  annum,  £9,992,  leaving  a  balaoce 
to  be  carried  forward  to  the  next  account  of  £14,856.  19*.  Id.— subject  to 
payment  of  remuneration  to  directors  and  auditors,  and  income-tax.  The 
directors  have  only  further  to  add,  that  latest  accounts  are  equally  favour- 
able, and  furnish  continued  evidence  that  in  Mexico,  Lima,  CaHso,  sod 
Bogota,  where  the  branches  of  this  bank  are  established,  there  is  a  great 
field  for  the  profitable  employment  of  large  capital  in  banking  operatioiB.' 

Balanee'Sheetfor  hiUf-year  ending  dOth  June,  1865. 

CAPITAL  AND  LIABIL1TI£S. 

Capital— Amount  authorised,  in  20,000  shares  of  £60  each,  with  power  to 
increase,  £1,000,000. 
Shares  issued— 1 9,984  shares  of  £60  each,  on  which  £12. 10s, 
per  share  has  been  called  up,  £249,800 ;  less  calls  in  arrear 
(of  which  only  £316  now  remain  unpaid)  £4,327.10#.,  making 
a  total  of  £245,472.  10«;  add  calls  paid  in  advance,  £60       ...  €245,522  10   0 
Liabilities— Deposits,    bills    payable,    and    other    liabilities 
£587,725.   13*.   lOd. ;   notes  issued  at  Lima,  Mexico,  and 

BwtA,  £14.078.  13*.  4rf.  601,804    7   ? 

Unchiimcd  dividends       291    4   0 

Rebate  of  mterest  on  bills  current  7.924  12© 

Keberve  fund     ...  ...  ..,  ^^^  ,,,  ,,^  1,000    0   0 

^^°oL*"5  *****  acconnt— Balance  of  profit'to  31st  December, 
1 864,  aaer  payment  of  diyidend.directors'  fees,  &c.,  £1,964.2*. : 
balance  of  profit  from  31  st  December,  1864  to  30th  June,  1866, 
as  per  annexed  account.  £22,884.  17*.  Id.  24,848  19    1 

£881391  12    ) 


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London  Bank  of  Mexico  and  South  America.         1209 

PBOPERTT  AVD  AB8KI8, 

Cash  on  hand  and  at  bankers'        ...            ...            ...            ...  £108,912    0  5 

Bullion  in  hand                ...             ...             ...             ...            ...            658     1  8 

Bills  receirable                ..«            ...            ...            ...            ...     455,567     1  8 

Balances  due  on  cnrrent  accounts,  loans,  &c.            ...            ...     302,461  15  6 

Expenditure  on  bank  premises,  office  furniture,  &c.  (after  de- 

dncting  10  per  cent,  written  off  at  branches)        ...            ...         4,659  '0  7 

Preliminarj  expenses  (balance)    ...           -...            ...            •••         9,133  12  10 

£881,391  12  8 

Prqfit  and  Loss  Aeeounifor  hcHf-year  ending  Z^h  June,  1865. 

General  charges  in  London,  and  branches  at  Mexico,  Lima, 

Callao,  and  Bogota       ...            ...            ...            ...            ...    £13,270    8  3 

Rebate  of  interest  on  bills  current               ...            ...            ...         7,924  12  0 

Balance,  being  net  profit                ...            ...            ...            ...       22,884  17  1 

£44,079  17  4 


Gross  profits  from  1st  January,  1865,  at  London,  Lima,  Callao, 

and  Mexico,  and  from  7th  November,  1864,  at  Bogota         ...    £44,079  17    4 

The  Chairman,  in  moving  the  adoption  of  the  report,  stated  that  it  was 
advantageous  in  new  concerns  to  make  the  shareholders  acquainted  as 
frequently  as  possible  with  the  state  of  their  affairs,  and  with  that  feeling 
the  directors  had  readily  responded  to  the  wish  of  some  of  the  shareholders 
to  hold  half-yearly  meetings,  consequently  they  were  called  together  on 
the  present  occasion.  The  report  was  very  satisfactory,  and  required  little 
from  him  to  recommend  it.  The  profit  fully  equalled  the  expectations  of 
those  who  looked  for  great  things  as  resulting  from  banking  in  Mexico. 
They  had  made  a  net  profit  during  the  half-year  at  the  rate  of  20  per  cent, 
per  annum,  while  their  losses  had  been  very  small  indeed.  To  avoid  a 
heavy  item  of  preliminary  expenses  they  had  carried  to  current  charges 
the  cost  of  conve3ring  the  managers  and  officers  to  the  branches  at  Bogota, 
Lima,  <&c.,  and  adso  the  expenses  of  removing  books,  safes,  <kc.,  to  uiose 
places,  which  was  very  heavy.  This  brought  up  the  general  diarges  to 
the  large  sum  of  £13,270,  but  at  least  £4,000  of  this  &e  directors  misht 
justly  and  fairly  have  carried  to  preliminary  expenses,  but  they  feel  that 
having  made  large  profits,  they  would  be  acting  most  in  accordance  with 
the  wishes  of  the  shareholders  by  carrying  these  items  to  current  charges. 
(Cheers.)  If,  however,  they  had  been  charged  to  preliminary  expenses, 
the  results  of  the  half-year  would  have  shown  a  profit  at  the  rate  of  £25 
per  cent,  per  annum.  (Hear,  hear.)  The  largest  proportion  of  the  busi- 
ness of  the  bank  was,  as  they  were  aware,  in  Mexico,  and  he  was  happy  to 
say  that  it  was  carried  on  almost  absolutely  without  loss.  He  was  justified 
in  saying  this,  inasmuch  as  the  entire  loss  they  had  incurred  from  the 
beginning  was  only  £40,  which  arose  on  a  small  bill  taken  on  a  remittance 
to  this  country.  On  the  other  hand,  the  assets  in  Mexico  were  very 
satisfactory,  and  the  exchange  business,  which  was  very  large,  was  as 
good  as  any  similar  business  carried  on  by  any  bank  in  the  city  of 
London.  They  had  eqiially  good  reports  of  the  state  of  affairs  at 
Peru,  Callao,  and  Lima.  The  only  loss  made  there  arose  out  of  a  small 
bill  drawn  upon  an  Australian  bank  which  turned  out  to  be  forged, 
but  it  was  only  for  a  small  amount.  At  these  branches  the  assets  were 
equally  satisfactory  with  those  at  the  establishment  in  Mexico.  At 
Colombia,  that  was  at  Bogota,  they  only  commenced  business  in  Ko- 


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1210         London  Bank  of  Mexico  and  Sofidh  America. 

vember,  but  from  the  reporto  reoetTed  and  the  ezaminatioDS  which  had 
been  instituted,  eveiything  seemed  to  be  going  oa  satiBfaokoniy  there 
also.  The  amount  of  businesA  done  at  Bogota  was  larger  thui  th^ 
ooold  with  their  present  capital  follow  upland  he  believed  the  ihanholdaf 
were  not  just  ikow  inclined  to  sancticni,  nor  were  the  directofB  deBiro«B  of 
makins^  a  further  issue  of  capital.  Since  the  doring  of  the  half-year 
ending  30th  June  the  business  had  continued  to  progress  most  satisfactorily 
at  all  the  branches  except  Bogota,  from  which  it  was  as  yet  too  early  to 
receive  accounts.  The  profit  made  during  the  first  month  of  the  current 
half  year  was  £5.872.  6s.  lOd. ;  against  the  rebate  of  £7.924  they  had  for 
the  mouth  of  July  made  a  profit  of  £13  796.  and  as  they  carried  forward 
to  the  current  half-year's  account  £14.856,  they  had  actually  already  in 
hand  for  the  purposes  of  dividend  at  the  next  half-year  £28,650. 17f.  Ui^ 
less  the  current  expenses.  (Hear,  hear.)  Within  the  last  month  they  had 
increased  their  deposits  to  the  extent  of  £5,000,  and  at  Lima  they  had 
some  of  the  wealthiest  and  most  influential  of  the  inhabitants  amongst  the 
depositors  with  the  bank  on  fixed  accounts.  The  notea  of  the  bank  were 
also  readily  taken,  and  altogether  they  were  in  a  most  healthy  and  satis- 
factory state.  Some  alarm,  he  believed,  had  been  felt  by  some  of  tht 
shareholders  on  account  of  the  projected  National  Bank  of  Mexico,  on  the 
ground  that  it  might  compete  prejudicially  with  this  bank.  He  had 
no  apprehensions  of  the  kind,  for  he  believed  that  in  Mexico  there  was  an 
abundant  field  for  the  successful  operations  of  two  banks,  but  he  was  hap[7 
to  inform  them  that  the  scheme  for  establishing  a  National  Bank  of  Mexico 
was  now  altogether  in  abeyance,  and  he  did  not  know  whether  or  not  it 
would  be  ever  revived.    In  conclusion  he  moved  the  adoption  of  the  rapozt. 

Mr.  J.  T.  Hunt  seconded  the  motion. 

In  reply  to  questions. 

The  Chairman  said  as  they  were  in  favour  in  Mexico  as  a  British 
banking  institution,  it  was  not  intended  to  take  any  steps  to  obtain  the 
position  of  a  national  bank  in  Mexico,  it  being  better  to  leave  well  abne, 
and  it  being  also  to  be  remembered  that  as  a  British  institution  they  wimld 
be  uncompromised  by  any  political  changu  that  might  take  place.  In 
Colombia  there  was  an  idea  of  constituting  the  several  brandies  of  the 
bank  into  a  National  Bank  of  Colombia,  but  if  they  should  decide  upon 
taking  steps  to  give  practical  effect  to  that  idea,  it  would  be  on  the  principie 
of  a  separate  capital,  the  shareholders  having,  of  course,  the  option  to  take 
up  that  capital.  He  could  not  promise  that  there  would  be  no  further  call, 
but  there  was  no  present  intention  of  calling  up  further  cafttta]. 

A  brief  discussion  followed,  in  the  course  of  whidi  one  or  two  share- 
holders held  that  it  would  increase  public  confidence  in  the  oonoon  it  a 
larger  proportion  of  the  subscribed  capital  were  called  up,  and  Mr.  Sindair 
expressed  some  disappointment  that  with  such  a  flourishing  state  of  affiun 
the  shares  should  be  at  a  discount,  and  asked  for  information  as  to  where 
the  weak  point  was — a  question  which  was  replied  to  by  another  propriHcr, 
who  said  that  the  only  weak  point  was  the  infancy  of  the  bank,  and  the 
chairman  added  that  many  persons  entertained  fears  of  the  political 
position  of  Mexico,  and  that  feeling  no  doubt  acted  to  the  prejudice  of 
the  bank.  They  were,  however,  improving,  inasmuch  as  the  shaitf) 
which  were  four  discount  a  short  time  ago,  were  now  at  par. 

The  motion  was  carried  unanimously. 

An  interim  dividend  of  lOi.  a  share,  payable  on  and  after  the  29tii  insi., 
was  also  carried ;  £1,000  was  set  apart  as  remuneration  to  the  directon 
for  the  past  half-year,  and  a  vote  of  thanks  to  the  chairman  and  directics 
concluded  the  proceedings. 


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1211 


BRITISH  GUIANA  BANK. 

The  following  is  a  report  of  the  proceedings  at  the  fifty-seventh  half- 
yearly  general  meeting  of  the  proprietors,  held  on  the  17th  Angnst ;  J.  W. 
DaYSon,  Esq.,  in  the  chair. 

The  Manager  read  the  following  abstract  summary,  exhibiting  a  general 
statement  of  the  affairs  of  the  British  Guiana  Bank  on  the  30th  June : — 

Br, 

Proprietors*  paid-up  capital          $926,520    0 

Reserve  fund  invested  per  Contra          200,000    0 

Due  to  the  public  on  account  of  lodgments,  including  interest 

on  deposits  current        586,262  14 

Circulation               285,870    0 

Dividends  unclaimed          ..          — 7,479  61 

Balance  in  favour  of  the  bank      85,526  34 


$2,091,658  09 


Cr.  • 

Dne  to  the  bank  on  securities  in  bills  discounted,  bonds,  other 
investments,  cash  in  hand  and  in  the  hands  of  agents       ...       $1,858,458  09 

Reserve  fnnd  investments  in  Turkish  4  per  cents,  guaran- 
teed by  England  and  France  $96,000 

In  Bank  of  England  Stock        104,000  200,COO    0 

Bank  premises,  office  furniture,  &c 33,200    0 

$2,091,658  09 


^  The  balance  shown  in  the  foregoing  statement  consists  of  the  snrplus 
fund,  $34,628.  60 ;  net  profits  for  the  half-year  ending  30th  of  Jane, 
g 50,897.  74.  The  Directors  recommend  the  declaration  of  a  dividend  of 
4  per  cent,  for  the  past  half-year,  being  at  the  usual  rate  of  8  per  cent, 
per  annum ;  this  will  require  the  sum  of  $37,068.  80,  leaving  $13,836. 94 
in  accumulation  of  the  surplus  fund,  and  they  further  propose  ti^at  abonua 
of  1  per  cent,  be  paid  to  the  proprietors  out  of  the  surplus  fund,  after 
whicL  their  will  remain  a  balance  of  surplus  profits  of  $39^200.  34. 
•*  Georgetown,  27th  July,  1865." 

Moved  by  the  Chairman,  seconded  by  Mr.  Eobert  Smith,  and  resolved — 
"  That  the  report  of  the  Directors  be  received  and  adopted," 

Moved  by  Mr.  John  Drysdale,  seconded  by  Mr.  £.  G.  Barr,  and  re- 
solved— *^  That,  as  recommended  by  the  court  of  directors,  a  dividend  be 
declared  of  4  per  cent,  for  the  half-year  ending  30th  June;  and  that, 
further,  a  bonns  of  1  per  cent,  be  paid  to  the  proprietors  out  of  the  sur- 
ploafimd." 

Moved  by  Mr.  B.  Y.  Abraham,  seconded  by  Mr.  W.  Knox,  and  re- 
solved— ^  That  a  copy  of  the  report  be  laid  before  His  Excellency  the 
Governor,  and  that  the  proceedings  of  the  meeting  be  printed  for  circula- 
tion among  the  proprietors." 

Moved  by  Mr.  "V^^ter,  seconded  by  Mr.  Barr,  and  resolved — ^^  That  a 
sum  not  exceeding  $2,000  per  annum  be  placed  at  the  disposal  of  the 
directors  for  the  purpose  of  remunerating  them  for  their  services." 

Moved  by  Dr.  Scott,  seconded  by  Mr.  E.  H.  G.  Dalton,  and  resolved — 
^  That  the  thanks  of  the  meeting  be  tendered  to  the  chairman  and  di- 
reelors  of  the  bank." 


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1212  ^  Bank  of  Britiah  Columbia. 

Moved  by  Mr.  R.  D.  Stewart,  seconded  by  Mr.  H.  J.  Paxn^  and  ij- 
Bolved— "  That  the  thanks  of  the  meeting  be  given  to  the  offioeis  of  the 
bank  for  their  attention  to  their  duties/'  «  nn.  ♦ 

Moved  by  the  Chairman,  seconded  by  Mr.  Mackey,  and  resolved--  That 
the  thanks  of  the  meeting  be  tendered  to  the  president  and  committee  of 
the  AthensBum  for  the  use  of  the  rooms.*' 

The  Chairman  vacated  the  chair,  and  the  same  having  been  token  by 
Mr.  Mackey,  it  was  moved  by  Mr.  Winter,  seconded  by  Mr.  Drysdale,  snd 
resolved,  that  the  thanks  of  the  meeting  be  given  to  the  chairman  for  Hii 
conduct  in  the  chair. 

The  Chairman  having  resumed,  declared  the  meeting  doBeo. 


BANK  OF  BRITISH  COLUMBIA. 
The  following  is  the  report  of  the  directors  to  be  presented  at  the  genenl 
meeting  to  be  held  at  the  London  Tavern,  on  the  Srd  October : — 

"  The  directors  have  the  pleasure  to  submit  to  the  proprietors  tiie  so- 
companying  statement  of  accounts  for  the  half-year  ended  30th  June  last, 
and  have  satisfaction  in  stating  that  after  paying  all  charges,  <l^j^ 
rebate  of  interest  on  bills  not  due,  and  making  ample  provision  for  bad  and 
doubtful  debts,  the  undivided  profits  amount  to  £20,078.  13<.  Sd.,  which 
the  directors  propose  to  appropriate  as  follows,  viz. :— £0,375  in  payment 
of  a  dividend  at  the  rate  of  10  per  cent,  per  annum ;  £7,000  to  reaenre 
fund,  which  wiU  then  amount  to  £20,000 ;  leaving  £3,793. 13a.  M.  to  !» 
carried  forward  to  the  current  half-year." 

Statement  qf  Liabilities  and  Assets  at  the  London  office  and  hranehet 
on  3WA  June,  1865. 

LIABIIITIES. 

Capital  paid-up               £187.500    0  0 

Reserve  fund 13,000    0  0 

Deposits,  notes  in  circulation,  bills  payable,  and  other  liabilities    271,909  17  > 

BaUDce  of  profit  and  loss  on  the  30th  June,  1865      ...            ...       20,078  13  » 

£492,488  11    1 


Specie  and  buUion  in  hand,  and  cash  at  banken*      ...  ...     £89,676   0   € 

Bills  discounted,  bills  receivable,  government  and  other  seonrities   398,188  U  1^ 
Bank  premises,  furniture,  and  other  property  ...  ...         4,C23  18  g 

£492,488  llj 

Prqfii  and  Loss  Account,  90th  June,  1865. 

Dividend  paid  8th  April,  1865        *           .-  8.338   •* 

Amount  carried  to  reserve  fund     ...            ...            ...            —  7,000   0  » 

Charges  to  30th  June,  1865,  including  lent,  taxes,  salaries, 
directors'  fees,  and  all  other  expenses  at  head  office  and 

branches ^ 10.865    8» 

Balanceofprofit,  30th  June,  1865                20,078  13  « 

£45.777    9   5 


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East  India  Bank  1213 

Balance  of  profit  and  loss  account  brought  from  31  st  December, 

1864  ... 18,630  12     1 

Profits  for  six  months  ended  30th  Jane,  1865,  after  deducting 
rebate  of  interest  on  bills  not  due,  and  making  ample  pro- 
Tision  for  bad  and  doubtful  debts  ...  ...  ...       27,096  17    2 


£45.777     9    3 


PROPOSED  APFSOPRIATIOK,  TIB. : — 

XKyidend  at  10  per  cent,  per  annum  ...  ...  ...  9,375    0  0 

Amount  to  be  added  to  reserve  fund  ...  ...  ...  7,000    0  0 

To  be  carried  forward     ...  ...  ...  ...  ...  3,703  13  8 


£20,078  13    8 


By  balance    20,078  13  8 

£20,078  13  8 


EAST  INDIA  BANK. 

The  second  ordinary  general  meeting  of  the  shareholders  of  this  bank  was 
held  at  its  offices  in  Hornby  Bow,  on  the  9th  August,  to  receive  the 
directors'  report ;  to  consider  whether  the  bank  should  be  registered  with 
limited  liability ;  and  to  take  such  steps  as  might  be  considered  necessary 
for  effecting  that  object.  The  shareholders  present  oonsisted  entirely  of 
natives. 

On  the  motion  of  Mr.  Kessowjee  Naiqne,  seconded  by  Mr.  Alladinbhoy 
Hnbbibhoy,  Mr.  Muncherjee  Nowrowjee  Banajee  was  cisJled  to  the  chair. 

After  reading  the  advertisement  caUing  the  meeting,  the  Chairman  read 
the  following  report : — 

''Tour  directors  have  this  day  the  pleasure  of  meeting  you  for  the 
second  time  since  the  formation  of  the  East  India  Bank,  and  it  is  their 
duty,  in  terma  of  the  articles  of  association,  to  place  before  you  a  state- 
ment of  accounta  made  up  to  the  30th  June.  A  reference  to  the  balance- 
sheet  will  show  a  profit  to  that  date  of  Bfl.  4,35,276-12-6 ;  but  as  it  is 
apparent  that  these  figures,  though  correct  in  point  of  form,  are  merely 
nominal,  it  is  proposed  to  give  a  short  explanation  on  the  subject.  In  the 
first  place,  your  directors  are  anxious  that  it  should  be  distinctly  under- 
stood that  the  exhibition  of  a  balance  of  profit  on  the  bank's  operations  to 
the  30th  June  is  not  put  forward  with  any  intention  of  misleading  those 
interested  as  to  the  real  position  of  the  bank.  On  the  contrary,  your 
directoTB  wish  to  place  you  in  full  possession  of  all  details,  whidi  may 
enable  yoa  to  form  a  correct  estimate  of  how  it  stands ;  but  the  exigences 
of  book-keeping  required  that  the  acootmte  should  be  made  up  aa  they 
have  been.  On  nimierous  transactions  still  open,  the  bank  will,  without 
doubt,  sustain  very  considerable  losses ;  but,  as  the  auditor  very  properly 
remarks,  the  extent  of  them  it  i&  impossible,  with  any  degree  of  accuracy, 
at  present  to  estimate.  That  heavy  losses  should  have  been  sustained 
by  this  bank,  in  common  with  every  other  institution  of  a  similar 
character  in  Bombay,  will  excite  no  surprise.  Bombay  has  passed,  is  still 
passing,  through  an  ordeal  of  no  ordinary  character,  and  the  shareholders 
must  be  prepared  to  find  that  the  East  India  Bank  will  not  oome  out 
scatheless.    The  present  is  not  an  opportunity  for  making  a  detailed  pubUc 


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1214  East  India  Bank. 

statement  of  the  probable  Tiltimate  results  of  the  bank's  transaeiiow; 
but  your  directors  may  safely  say,  that  it  is  their  beli^  that  those  results 
will  at  least  bear  comparison,  and  favourable  comparison,  with  those  flhown 
by  any  other  local  bank  established  under  similar  circumstances.  A  fev 
items  in  the  balance-sheet  call  for  observation.  Shares  to  the  extent  ol 
Ks.  15,70,000  have  been  forfeited,  and  the  capital  of  the  bank  is  thna 
reduced  to  Bs.  46,80,000.  The  shares  in  question  were  forfeited  for  non- 
payment of  the  3rd  and  4th  calls,  and  Bs.  9^1^9250,  the  amount  paid-up 
on  Ist  and  2nd  calls  on  those  shares,  has  been  placed  to  a  reserve  fowL 
Your  directors  did  not  take  this  step  without  full  consideratioiL ;  H  mvf  st 
first  sight  seem  a  harsh  proceeding  to  forfeit  shares  because  their  holden 
are  unable  to  pay  calls ;  but  your  directors  would  remind  you  that  the 
interests  of  those  shareholders  who  can  and  do  pay,  are  at  least  to  be 
regarded  as  much  as  those  of  shareholders  who  cannot,  or,  as  often  happeia, 
will  not.  It  is  clearly  unfair  that  the  operations  of  a  bank  shoold  be 
crippled,  and  its  business  restricted,  to  the  loss  of  those  shareholders  who 
have  honestly  contributed  their  share  of  its  capital,  merely  because  other 
shareholders  are  unable  to  pay  their  proportion,  or  think  they  can  em^oj 
their  funds  more  profitably  to  themselves  in  other  ways.  The  require- 
ments of  the  articles  were  fully  met ;  every  one  whose  shares  have  been 
forfeited  had  ample  notice  in  the  prescribed  form,  and  your  directors  do 
not  doubt  but  that  the  course  they  adopted  will  meet  with  your 
approval.  It  should  also  be  mentioned  that  Bs.  8,00,000,  the  amomt 
of  capital  allotted  to  the  bank's  Calcutta  agency,  is  induded  i&  the 
balance-sheet  under  the  item  of  loans  and  lo<»d  bills  diBOoanted. 
With  reference  to  the  auditor's  remark  that  some  of  the  bank's 
securities  are  not  in  ord<>T,  it  must  be  stated  that  these  almost  entiTdT 
consist  of  financial  and  other  shares  which  your  directors  do  not  oa- 
sider  it  advisable  to  have  transferred  to  the  bank's  name.  LesTiog 
the  balance-sheet  and  accounts,  your  directors  would  now  make  the  follow- 
ing important  recommendation  affecting  the  constitution  of  ihe  bank. 
The  basis  upon  which  the  bank  is  established  is,  as  you  are  all  aware, 
that  of  unlimited  liability,  and  the  recommendation  of  the  board  is  that 
that  basis  be  changed,  and  that  the  UabUity  of  the  shareholders  shall  fr«r 
the  future  be  restricted  in  accordance  with  the  provisions  of  Act  7  <^ 
1860.  This  recommendation  is  made  in  concert  with  the  wishes  d  manf 
large  and  influential  shar^olders  whom  your  directors  have  ooasnlted: 
and  they  have  reason  to  believe  that  the  proposal  will  meet  witii  tba 
general  sanction  and  approval  of  all  concerned.  In  this  view  of  the  matter, 
tiiey  do  not  here  enter  into  the  reasons  which  have  influenced  tibem  is 
arriving  at  the  conclusion  they  have.  If  the  proposal  meet  witii  toot 
approved,  it  will  be  necessary  to  wind*up  the  affairs  of  the  bank,  profeimi: 
but  this  can  be  done  without  difficulty,  and  without  stopping  cmreot 
business  for  a  day." 

The  report  having  been  adopted,  Mr.  Byramjee  Cursetjee  moved — **  VaX 
Messrs.  Kessowjee  Kaique  and  Alladinbhoy  Hubbibhoy  be  re-e)eet<^ 
directors." 

Mr.  Muncherjee  Nowrowjee  Banajee  moved  : — **  That  the  oonBtitatkfl  ^ 
the  bank  be  altered  by  making  the  liability  of  the  shareholden  linutei 
instead  of  unlimited  as  at  present,  and  that  the  board  of  direetois  be, 
and  they  are  hereby  authorised,  in  consultation  with  Mr.  Crawfoid,  tb^ 
bank's  solicitor,  to  take  all  necessary  steps  with  that  object." 

Mr.  Eduljee  Dorabjee  seconded  the  motioti,  which  was  agreed  to  i 
mously. 

The  meeting  then  terminated. 


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1215 


BOMBAY  CITY  BANK. 

Thb  first  ordinary  general  meeting  of  the  registered  shareholders  of  this 
bank  wa£  held  at  its  ofiicea  in  Church  Gate  Street,  on  the  16th  of  August. 
Mr.  Rudolph  Ahlers  occupied  the  chair.  The  shareholders  present  were 
exclusively  natives. 

The  Chairman  read  the  directors'  report  as  follows : — "  The  directors, 
in  meeting  the  shareholders  for  the  first  time,  beg  to  lay  before  them  the 
balance-sheet  of  the  bank  ta  30th  June,  1865.  The  bank  was  opened  for 
business  on  the  15th  August,  1864,  and  you  will  observe,  from  the  state- 
ment  now  submitted,  that  the  whole  of  the  first  call  made  on  21st  June, 
1864,  and  due  27th  idem,  has  been  paid ;  that  of  the  second  call  made  on 
21st  September,  1864,  and  due  5th  November,  there  is  unpaid  the  sum  oC 
Ha.  7,850 ;  and  of  the  third  call,  made  on  31st  December  last,  and  due  28th 
February,  1865,  there  still  remains  to  be  paid  Es.  8,09,000.  The  share^ 
holders  have  been  duly  advised,  both  by  post  and  advertisements,  that  the 
shares  on  which  these  calls  remain  unpaid  are  forfeited.  This  measure  has 
only  been  adopted  after  mature  consideration,  and  the  directors  in  dointf 
eo  are  confident  that,  for  the  benefit  of  the  present  shareholders,  it  should 
be  carried  out.  Sufficient  time  has  been  allowed  for  the  payment  of  all 
calls,  the  notice  of  forfeiture  of  shares  upon  which  the  second  and  third 
call  remained  unpaid  having  been  advertised  as  long  back  as  February 
last,  but  not  acted  upon  until  the  5th  instant.  After  estimating  the  de« 
predation  in  the  value  of  the  securities  held  by  the  bank  on  its  own  account, 
allowing  no  interest  to  be  calculated  upon  overdue  loans  or  past-due  bills^ 
and  taking  into  consideration  the  expenses  incurred  in  the  opening  of  the 
agencies  in  London  and  Calcutta,  the  balance  of  the  profit  and  loss  account 
is  lU.  97,583-12.9.  This  amount  the  directors  propose  to  carry  forward  to 
the  current  half-year,  r ^retting  that  they  cannot  recommend  any  dividend 
at  this  time.  The  sudden  and  great  fall  in  the  value  of -all  securities  in  this 
market,  and  consequent  panic,  coupled  with  the  numerous  &ilures  both  here 
and  at  home,  will,  the  directors  regret  to  say,  cause  the  bank  to  suffer  oon* 
siderable  loss,  but  as  in  the  great  majority  of  its  transactions  the  bmnk  has 
been  secured,  and  as  an  improvement  in  the  value  of  good  securities  my 
be  fairly  expected,  they  trust  that  by  a  judicious  disposal  of  those  now 
held  the  eventual  loss  will  prove  but  small.  Branches  have  been  esta- 
blished in  London  and  Calcutta,  the  former  being  under  the  charge  of  Mr. 
Davison,  the  late  manager  here,  and  the  latter  under  that  of  Mr.  Leitch, 
late  of  the  Oriental  Bank,  Calcutta ;  as  both  these  gentlemen,  especially 
the  former,  have  considerable  experience  in  banking,  we  have  no  doubt 
that  these  agencies  will  become  a  source  of  profit  to  the  bank.  In  room  of 
the  present  directors,  who  now  retire,  the  shareholders  have  to  elect  others. 
Of  those  who  have  been  acting,  Mr.  Ahlers,  Mr.  Prioe,  and  Mr.  Bhugwandssa 
Purshotumdaas,  offer  themselves  for  re-election.  The  remuneration  to  be 
allowed  must  also  be  decided  upon.  The  shareholders  have  also  to  elect 
auditors  for  the  ensuing  year,  and  Messrs.  Brodie  and  Wilson,  gentlemen 
well  qualified  for  the  post,  are  recommended.  Their  remuneration  must 
also  be  fixed." 

Tbe  Chairman  then  addressed  the  shareholders  as  follows : — "  Gentle- 
men,  in  moving  the  adoption  of  the  report  just  .read,  I  will,  with  your 
I>ermi88ion,  make  a  few  explanations  as  regards  the  item  of  profit  and  loss 
in  the  balance-sheet  now  before  you,  and  ^so  a  few  remarks  with  reference 
to  the  general  position  of  this  baoik.  Tou  will  observe  that  the  amount 
carried  to  the  credit  of  profit  and  loss  account  for  30th  June  last  is 


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1216  Bombay  City  Batik. 

Ba.  97,583-12-9,  and  I  imagine  that  some  of  you  will  ooiudder  this  amount 
small  as  compared  with  the  profit  shown  by  other  banks  which  were  esu- 
blished  about  the  same  time  as  this,  and  which  also  have  recently  published 
their  accounts,  according  to  which  larger  profits  than  ouis  haye  been  reall«ol. 
Now,  in  this  respect  I  wish  to  point  out  to  you  that  the  profit  of  tins  bank 
also  is  larger  than  the  amount  stated  above,  but  that  we  have  rednced  it 
by  deducting  from  it  the  probable  loss  which  the  bank  wiU  fostain  owing 
to  the  depreciation  in  the  value  of  the  securities  held  by  the  bask  iu 
its  own  account.  For  this  purpose  we  have  written  off  from  the  profit 
an  amount  of  Ba.  84,735-13-10,  and  we  now  anticipate  no  farther  li«s 
in  this  respect.  Another  circumstance  which  may  make  the  profit  appev 
small  is,  that  we  have  not  yet  taken  into  account  any  interest  cm  snch 
loans  or  transactions  as  fell  due  before  the  end  of  June  but  hive  not 
yet  been  paid.  We  considered  it  best  not  to  swell  onr  profit  by  any  rach 
fictitious  calculations,  which  might  lead  to  disappointments  afterwvds. 
Our  above  profit,  although  small,  is  really  earned  and  due ;  but  I  regret 
that  I  cannot  recommend  its  distribution  as  a  dividend,  but  must  adm 
its  being  carried  forward  to  next  yoeur's  account ;  for  although,  ss  alreidr 
stated,  we  have  provided  for  the  depreciation  in  the  aecuritias  hdd  on  the 
bank's  own  account,  no  provision  has  as  yet  been  made  for  the  loss  vhich 
the  bank  may  sustain  from  the  reduction  in  the  value  of  the  eecoritits 
held  on  account  of  its  customers.  I  would  gladly  have  framed  an  estimate 
also  of  this  loss,  and  laid  it  before  you,  but  this  is  impossible,  for  tv? 
reasons,  one  of  which  is,  that  the  securities  are  not  yet  sold,  and  Uie  oiIk:. 
that  we  do  not  yet  Iqiow  the  amoimt  which  ultimately  will  be  rea>ven-l 
from  those  on  whose  ^account  the  securities  are  held.  In  six  months'  tioif 
we  shall,  no  doubt,  see  much  clearer  in  this  respect.  In  connection  vitk 
this  subject  I  may  mention  that  as  the  bank  is  entirely  free  from  deh:, 
no  necessity  exists  for  any  undue  haste  in  the  realisation  of  these  secu- 
rities ;  on  the  contrary,  the  bank  will  hold  them  (unless  previoasly  re- 
deemed) until  such  a  moment  as  may  be  considered  the  most  bvoorable 
for  the  sale ;  and  I  have '  no  doubt,  in  consideration  of  this  dream- 
stance,  and  keeping  a  careful  watch  over  the  movements  of  the  msrket, 
that  the  ultimate  loss,  although  no  doubt  important,  will  stiU  prore 
considerably  less  than  is  generaUy  anticipated.  If  the  bank  has  pot  been 
fortunate  in  its  local  transactions,  it  certainly  may,  as  compared  with  otltf 
banks,  congratulate  itself  upon  its  operations  with  Europe,  for  the 
amount  of  dishonoured  bills  in  our  hands  is,  comparatively  speaking,  Terr 
small,  and  after  careful  calculation  it  is  thought  that  about  one  ls£  <^ 
rupees  will  be  sufficient  to  cover  the  whole  ultimate  loss  on  this  acootat. 
The  forfeiture  of  the  shares  on  which  the  second  and  third  calls  are  nnpsid 
has  for  some  time  had  the  very  serious  consideration  of  your  directore, 
and  in  justice  to  the  existing  shareholders,  they  had  no  alternative  but  to 
adopt  this  measure.  Nor  can  it  be  oUled  harsh  ;  for  the  third  csll  vw 
made  long  before  the  commencement  of  the  crisis,  and  the  forfeiture  btf 
not  been  put  into  execution  until  a  few  days  back,  when  the  crisis  mar  be 
considerea  as  ended.  The  position  of  the  remaining  shareholder?  K  <' 
course  considerably  benefited  by  this  measure.  The  report  informs  f*^ 
that  agencies  have  been  opened  both  at  Calcutta  and  London,  snd  y^ 
directors  trust,  after  confidence  has  been  fully  re-established,  that  bi^ 
agencies  will  prove  sources  of  profit  to  the  bank.  The  gentleman  st  the 
head  of  the  Calcutta  agency,  Mr.  Leitch,  was  formerly  in  the  Oriet**l 
Bank,  and  the  gentleman  at  the  head  of  the  London  agency  is  Mr.  Dsvisoii, 
formerly  manager  here  of  the  French  Bank,  and  who  probably  is  perBOOsyy 
known  to  most  of  you  as  a  very  able  and  intelligent  bank  msnagcr.  f^- 


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Alliance  Bank  of  Bombay.  1217 

Paviflon  takes  very  great  interest  in  the  snocess  of  our  bank ;  and,  as  a 
proof  of  this,  I  feel  pleasure  in  mentioning  that  he,  about  two  months  back, 
voluntarily  placed  half  of  his  salary  at  the  disposal  of  the  directors,  in 
order,  as  he  writes,  to  prove  his  interest  in  the  success  of  the  bank,  and 
in  order  to  reduce  its  losses  as  much  as  lies  in  his  power.  The  directors 
have  accepted  this  sacrifice  on  the  part  of  Mr.  Davison,  hoping  soon  to  be 
justified  in  requesting  him  to  revert  to  his  previous  remuneration. 
As  you  all  know,  we  have  just  passed  through  a  fearful  crisis ;  but  after  a 
crisis,  legitimate  business  in  all  its  branches,  as  a  rule,  soon  revives  with 
renewed  vigour.  I  have  no  doubb  that  this  will  also  prove  the  case  in 
Bombay,  and  that  good  and  profitable  years  are  before  us,  during  which, 
also,  this  bank  will  find  safe  and  profitable  employment  for  its  funds,  and 
ample  opportunity  of  redeeming  its  previous  losses.  Nor  need  we  antici- 
pate any  further  losses  of  consequence  for  several  years  to  come ;  for  I  have 
no  doubt  that  the  crisis  just  passed  has  taught  us  all  a  lesson  which  we 
shall  not  soon  forget.  In  conclusion,  I  call  upon  the  shareholders  to  let 
their  full  confidence  remain  with  the  directors,  and  to  give  the  bank  all  the 
8Up[K>rt  that  may  be  in  their  power,  and  I  have  no  doubt  that  twelve 
months  hence  we  shall  be  in  a  position  to  lay  before  you  a  much  more 
satisfactory  report  than  we  can  do  to* day.  I  beg  to  move  that  the  report 
and  accounts  now  submitted  be  adopted." 

Mr.  Cooverjee  Cowasjee  Jussawalla  seconded  the  motion,  which  was 
agreed  to  unanimously. 

Mr.  Muncherjee  Pestonjee  then  proposed,  and  Mr.  Dadabhoy  Nusseran- 
jee  seconded — ^^  That  Rudolph  Ahlers,  Esq.,  R.T.  Price,  Esq.,  and  Bhugwan- 
dass  Purshotiundass,  Esq.,  be  elected  directors  for  the  ensuing  year ;"  which 
was  also  carried  unanimously. 

Mr.  Cursetjee  Eduljee  Ohinoy  proposed,  and  Nowrosjee  Muncherjee 
seconded — ^*^  That  CuUiandass  Mohundass,  Esq.,  and  Tribhohundass  Jug- 
jeevuudass,  Esq.,  be  elected  directors  in  place  of  Mr.  Ardaseer  Cursetjee 
Dady,  and  Mr.  Merwanjee  Nusserwanjee  Bhownuggree,  resigned."  The 
resolution  was  carried  without  discussion. 

It  was  then  proposed  by  Cursetjee  Eduljee  Chenoy,  and  seconded  by  D. 
J.  Lisboa,  Esq. — ^  That  Messrs.  Brodie  and  Wilson  be  elected  auditors  for 
the  ensuing  year,  and  their  remuneration  be  Us.  600  for  each  audit." 

A  vote  of  thanks  was  then  awarded  to  the  Chairman,  and  the  meeting 
broke  up. 


ALLUNCB  BANK  OF  BOMBAY. 

The  first  ordinary  general  meeting  of  the  registered  shareholders  of  this 
bank  was  held  at  the  offices  of  the  company  on  the  16th  August,  for  the 
purpose  of  receiving  the  report  of  the  directors  and  the  balance-sheet  to 
30th  June  last, — to  elect  directors  and  auditors  for  the  ensuing  year,  and 
to  fij.  their  remuneration.  F.  C.  Kelly,  Esq.,  of  the  firm  of  KeUy,  Hore 
and  Manisty,  occupied  the  chair.  All  of  the  shareholders  present,  number- 
ing between  twenty  and  thirty,  were  natives. 

The  Chairman  read  the  directors'  report,  which  is  as  follows  : — 
"  In  meeting  the  shareholders  for  the  first  time  since  the  formation  of 
the  company,  the  directors  would  lay  before  them  a  short  statement  of 
what  has  been  done.  The  company  was  registered  on  the  11th  of  August, 
1864,  and  commenced  business  on  the  1st  September  with  a  paid-up  capital 
of  twelve  lacs  of  rupees.  A  second  call  of  Ks.  75  per  share  was  made 
payable  on  the  15th  of  September,  and  was  duly  paid  on  all  the  shares 


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1218  Alliance  Bank  of  Bombay. 

except  77.  A  third  call  of  Bs.  50  per  share  was  made  pajable  on  the  15th 
of  December  last,  bnt  the  same  has  been  paid  upon  about  half  only  of  the 
shares.  The  shares  upon  which  the  second  call  was  not  paid  hare  been 
forfeited  for  the  benefit  of  the  company.  As  to  those  shares  upon  which 
the  third  call  has  not  been  paid,  the  Directors  have  in  consequence  of  the 
state  of  affairs  in  Bombay,  abstained  hitherto  from  taking  any  proceeding 
to  enforce  payment — but  they  think  that  the  time  has  arrived  when  the 
defaulting  shareholders  should  be  required  to  pay,  and  they  propose, 
in  case  the  call  with  interest  is  not  paid  in  the  course  of  the  month,  to 
forfeit  the  shares  for  the  benefit  of  the  company.  From  the  aooooots 
which  have  been  circulated  to  the  shareholders,  it  will  be  seen  that  th« 
profit  earned  during  the  ten  months  over  which  the  account  exteixifl  is 
entered  as  Es.  3,78,544-4-2.  This,  however,  must  not  be  taken 
to  be  the  sum  actuaUy  received  as  profits,  but  it  represents  the  amount 
of  profits  which  would  have  been  earned  on  the  sssumption  that  all  loans 
with  interest  were  duly  paid  off,  and  to  ascertain  the  true  amomit  yco 
must  deduct  the  item  of  '^  adjusting  account  of  interest."  The  result  is 
that  the  amount  of  profits  actually  received  is  Es.  2,29,456-13-1.  The 
directors  regret  that  they  cannot  divide  this  sum  as  a  dividend  among?^ 
the  shareholders.  The  bank  has  not  passed  uninjured  through  the  panic 
which  came  upon  Bombay,  and  the  directors  regret  to  suy  that  the  bank 
has  suffered  considerable  losses.  It  is  impossible  at  present  to  say  irkit 
the  extent  of  the  loss  will  be,  as  there  are  many  accounts  still  to  be  »!• 
justed ;  but  the  directors  hope  to  be  able  in  most  cases  to  make  satisfactorr 
settlements  of  the  debts.  The  fall  in  the  value  of  shares  in  Bombay  has 
been  so  sudden  and  so  great,  and  persons  recently  of  credit  and  wealth 
have  suffered  so  seriously  thereby,  that  all  companies  who  have  adraocsd 
money  must  necessarily  have  sustained  losses  to  a  considerable  amount'* 

The  Chairman,  in  moving  that  the  report  and  balance-sheet  be  adopted, 
said  he  did  not  propose  to  detain  them  for  any  length  of  time.  The 
directors  unfortunately  had  to  appear  before  the  shareholders  of  the 
bank  on  the  occasion  of  the  first  ordinary  general  meeting,  in  times  of  grot 
commercial  depression  in  Bombay,  and  they  Very  much  regretted  to  say 
they  are  not  in  a  position  to  recommend  any  dividend.  A  panic  had  come 
upon  Bombay,  he  did  not  say  unexpectedly — but  much  more  suddenlr 
than  was  anticipated,  and  the  result  was  that  this,  as  well  as  all  the  other 
banks,  had  had  to  strain  its  utmost  energies  to  maintain  its  positioD.  ^T 
the  accounts  submitted,  the  shareholders  would  be  able  to  form  an  opinion 
as  to  the  work  done  by  the  bank  during  the  ten  months  in  whidi  it  htf 
been  in  existence.  The  directors  had  not  thought  it  expedient  or  pn^ 
to  suggest  to  the  meeting  any  ideas  of  their  own,  bnt  they  would  deTOto 
their  attention  to  receiving  the  money  due  to  the  bank,  and  making  the 
best  settlement  they  can  with  the  accounts  outstanding ;  and  they  hoped 
by  the  next  meeting  to  be  able  to  lay  before  the  shareholders  a  nu^re 
satisfactory  balance-sheet — one  which  would  be  sound  both  in  figure 
and  in  fact.  He  did  not  propose  to  go  through  the  accounts  in  de^ : 
but  if  any  shareholder  present  wished  to  ask  any  questions,  he  should  he 
happy  to  answer  them.  By  the  articles  of  association,  the  bank  h«d  t 
right  to  establish  branches  ;  but  under  existing  circumstances  the  directon 
had  not  thought  it  expedient  to  open  any  at  present.  In  aocordanoe  with 
the  provisions  of  those  articles,  all  the  directors  retire  by  rotation ;  tad 
the  meeting  would  have  to  elect  new  ones.  Their  number  was  dedaxed  w 
be  not  less  than  four,  nor  more  than  ten,  and  the  meeting  would  h>^« 
to  decide  how  many  the  number  should  be.  For  his  own  ^rt,  he  naighi 
say,  that  if  the  meeting  saw  fit  to  re-elect  himself  and  the  other  direcioi». 


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Eastern  Financial  Association  of  India*  1219 

tliey  should  be  happy  to  act.  The  meeting  would  also  have  to  elect  auditors 
for  the  ensuing  year.  No  provision  had  been  made  for  remunerating  the 
directors  and  auditors  ;  and  owing  to  the  present  distressed  state  of  affairs 
in  Sombay,  the  former  did  not  ^k.  anything  for  their  services ;  but  with 
regard  to  the  auditors,  the  directors  wished  the  meeting  to  fix  their  re- 
mimeration.  In  conclusion,  he  hoped  that  by  judicious  management  the 
securities  sold  by  the  bank  increasing  iu  vadue,  they  should  be  able  to 
render  the  shareholders  a  more  satisfactory  account  of  affairs  by  this  time 
next  year.    The  chairman  concluded  by  proposing  that  the  report  and 

balance-sheet  be  adopted. 

Mr.  Jehanghier  Bomonjee  seconded  the  motion  which  was  agreed  to 

tm  animonsly . 

On  the  motion  of  Merwanjee  Framjee,  seconded  by  Purbut  Luckdaiis, 

tbe  present  directors,  (Messrs.  Charles  F.  Kelly,  Hurbum  Nursey,  Gell* 

abhoy  Puddumsey,  and  Seeojee  Yelljee)  were  re-elected  for  the  ensuing 

year. 

Mr.  Luckmisunker  Hariprassim  moved  that  Messrs.  Brodie  and  Wilson 

be  appointed  auditors  of  the  bank  for  the  next  year,  which  was  also 

af^reed  to. 

A  vote  of  thanks,  on  the  motion  of  Merwanjee  Framjee,  seconded  by 

Purbut  Luckdass,  was  then  awarded  to  the  chairman,  which  having  been 

suitably  acknowledged,  the  meeting  broke  up. 


EASTERN  FINANCIAL  ASSOCIATION  OF  INDIA. 

On  the  Ist  August,  the  Chief  Justice  ordered  that  all  the  creditors  and 
contributaries  of  the  Eastern  Financial  Association,  Limited,  should  be 
allowed  an  opportunity  of  showing  cause,  if  any,  against  an  order  of  the 
6th  July,  1865,  which  directed  that  the  association  should  be  wound  up, 
and  that  all  suits  and  actions  against  it  should  be  stayed ;  and  against  the 
appointment  of  official  liquidators.  The  whole  matter,  under  the  above 
order,  was  subject  to  be  re-opened  on  the  10th,  before  the  Chief  Justice, 
but  no  creditor  or  contributary  appeared  to  oppose  the  order  of  the  court. 

Mr.  Bayley,  instructed  by  Mr.  Crawford,  appeared  for  a  number  of  cre- 
ditors of  the  association,  under  an  authority  given  by  them,  and  stated 
that  the  parties  whom  he  represented,  considered  that  the  best  course  to 
promote  their  interests  was  to  wind  up  the  affairs  of  the  company,  and  that 
the  desired  end  would,  in  their  opinion,  be  secured  more  advantageously 
and  more  effectually  by  winding  up  voluntarily  than  by  the  court. 

Mr.  Taylor,  who  appeared  on  behalf  of  the  association,  agreed  in  the 
suggestion  made  by  the  creditors,  and  applied  that  the  court  would,  with 
the  consent  of  the  creditors,  grant  leave  to  let  the  order  already  made 
remain  operative.  The  learned  counsel  stated  that  the  company  would 
take  immediate  steps  to  pass  a  special  general  resolution  to  wind  up  volun- 
tarily, but  that,  as  some  time  would  be  required  to  give  the  necessary 
notice  to  shareholders,  d^c,  he  would  suggest  that  the  order  now  to  be 
made  should  be  an  order  adjourning  furSier  consideration  of  the  matter 
for  two  months. 

Mr.  Marriott,  who  appeared  on  the  same  side,  submitted  that  the  only 
hostile  creditor,  the  Imperial  Bank  of  Bombay,  had  no  right  to  appear  io 
opposcf  the  application,  their  claim  being  in  a  fair  way  to  be  satisfied. 

Mr.  Green,  instructed  by  Messrs.  Bickersteth,  Cleveland,  and  Peile,  for 
the  Imperial  BaidL  of  Bombay,  said  that  he  had  notiiing  to  urge  againsi 


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1220  Otneral  Financial  Corporation  of  India. 

the  present  application,  and  that  he  appeared  merely  to  watch  tiie  caM  on 
behalf  of  his  client. 

Mr.  Bayley  stated  that  the  debts  due  to  his  clients  amounted  in  the 
aggregate  to  upwards  of  49  lacs  ont  of  56  lacs,  the  total  amount  of  the 
liabilities  of  the  company. 

The  Chief  Justice  remarked,  that  subject  to  an  affidavit  to  be  in«k 
Terifying  Mr.  Bayley's  statement  of  the  amount  due  to  his  dients^he 
would  order  that  the  appointment  of  official  liquidators  be  adjourned  for 
two  months,  with  liberty  in  the  mean  time  to  any  of  the  creditors  to  tike 
such  proceedings  as  might  be  advised,  in  reference  only  to  the  winding' 
up  of  the  association.  The  order  last  made  directed  all  suits  against  the 
company  to  be  stayed  unless  cause  to  the  contrary  was  shown  on  the  lOth 
inst.  (yesterday)  ;  and  as  no  cause  to  that  effect  had  been  shown,  his  lord- 
ship now  ordered  that  all  suits  against  the  company  should  be  stayed.  If, 
within  the  time  now  allowed,  no  steps  should  be  taken  against  tiie  oom- 
pany  winding-up  Yoluntarily,  the  court  would  interpose  no  obstade  to  its 
doing  so. 

Mr.  Taylor  remarked,  with  reference  to  an  allegation  made  in  the  seoond 
affidavit  of  Mi.  Macpherson,  manager  of  the  Imperial  Bank,  that  he  to 
now  in  a  position  to  show,  on  an  affidavit  made  by  Mr.  V^atson,  manager 
of  the  Eastern  Financial  Association,  that  none  of  the  directors  had  em 
been  indebted  to  the  association,  with  the  exception  of  PestonjeeCuiaetjee 
Shroff,  now  an  insolvent. 

Mr.  Green :  I  do  not  know  what  this  has  to  do  with  the  matter ;  and  I 
object  to  my  friend  trying  here  to  impeach  the  accuracy  of  one  of  oar 
affidavits. 

Mr.  Taylor  said  he  was  only  contradicting  an  imputation  made  against 
the  directors  of  the  Association,  which,  if  left  unref nted,  might  injure  tiiar 
reputation. 

The  Chief  Justice  observed  that  imputations  having  been  made  against 
some  of  the  directors,  which  had  been  made  matter  of  public  disconon, 
Mr.  Taylor  took  this  opportunity  of  clearing  the  character  of  the  directory 
with  the  exception  of  one  of  them.  The  gentlemen  who  were  directors  of 
the  company  had,  to  his  lordship's  mind,  taken  a  proper  course  in  trying 
to  dear  their  character  of  the  imputations  alleged  against  them.  A  ttat»> 
ment  like  that  made  by  Mr.  Taylor,  was  no  unusual  thing  under  the  cir- 
cumstances of  the  case. 

The  authority  under  which  Mr.  Bayley  appeared  for  the  creditors,  to 
signed  by  agents  and  managers  of  the  Bank  of  Bombay,  the  Asiatic 
Banking  Corporation,  the  Agra  and  Masterman's  Bank,  the  Indo-Egyptian 
and  London  Bank,  the  Central  Bank  of  Western  India,  the  Bank  of 
Hindustan,  China  and  Japan,  the  Bank  of  Surat,  the  Delhi  Bank  Corpora- 
tion, the  Financial  Association  of  India  and  China,  the  European  Assur- 
ance Society,  and  a  number  of  private  gentlemen.  They  are  creditors  to 
the  extent  of  Ba.  49,67,600 ;  the  total  amount  of  the  company's  debu 
beinff  -Bs.  66,88,000,  of  which  five  lacs  are  due  to  the  Impmal  Bsak  of 
Bombay. 


GENERAL  FINANCIAL  CORPORATION  OF  INDLL 
In  pursuance  of  a  requisition  addressed  to  the  directors,  an  extraordinary 
general  meeting  of  the  shareholders  of  the  General  Financial  Coxporaiioa, 
Limited,  was  held  on  the  16th  August,  at  the  Company^s  (^ces  in  BeU 
l4vne ;  Curmally  Kassumbhoy,  Esq.,  was  called  to  the  chair. 


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General  Financial  Corporation  of  India,  1221 

The  manager,  Mr.  E.  H.  Warren,  read  the  notice  oonvening  the  meeting, 
after  which  the  chairman  read  a  Guzerathee  version  of  the  report  of  the 
directors,  which  runs  as  follows : — 

"  The  directors,  in  placing  the  circumstances  of  the  corporation  before 
this  meeting,  wish  to  do  so  in  as  full  a  manner  as  possible  consistent  with 
their  duties  towards  parties  doing  business  with  the  establishment,  so  that 
the  shareholders  may  know  exactly  the  state  of  their  finances  up  to  31st 
July  last,  to  which  date  the  balance  is  made  out,  and  no  transactions  of  any 
consequence  have  taken  place  since.  They  have  not  considered  it  necessary 
to  close  the  books  of  the  corporation,  as  the  balance  of  the  general  ledger 
gives  quite  a  sufficient  account  of  their  position,  with  the  explanation 
they  now  make  of  the  two  principal  items  shown  therein    The  first  is 
'  share  purchase  account,'  which  stands  Dr.  Bs.  3,87,761-12-0.    This  sum  is 
represented  by  60  Port  Canning  and  10  Elphinstone  Land  and  Press  Com- 
pany's shares,  which  were,  unfortunately,  purchased  at  high  premiums 
shortly  after  the  corporation  commenced  business ;  but  the  terrible  panic, 
which  has  shaken  Bombay  to  its  centre,  having  set  in  soon  after,  all 
power  of  selling  even  at  a  small  loss  became  absolutely  impossible.    Yalu- 
ui%  those  shares  at  their  present  quotation,  the  difference  from  the  rates  at 
which  they  were  purchased  would  entail  a  loss  upon  the  company  of  about 
Bs.  2,90,000 ;  but  the  directors  feel  certain  that,  in  the  course  of  a  few 
months,  both  classes  of  shares  will  again  rise  very  considerably  in  public 
estimation,  as  they  represent  good  and  sound  companies,  whose  real  value 
is  much  under-rated  in  the  present  state  of  nervous  uncertainty  with  which 
all  capitalists  are  affected ;  and  purchasers  at  ruling  rates  will  hereafter 
wonder  much  at  the  folly  which  caused  men  to  throw  away  their  sound 
stocks  for  nominal  prices,  in  a  time  of  panic  almost  unequalled  in  the 
history  of  any  country.  These  are  the  only  share  transactions  the  directors 
have  entered  into,  having  always  refused  to  meddle  with  ^time-bargains ' 
or    speculation   in    your  own   shares,    both    which   transactions  have 
caused  the  ruin  of  so  many  companies  in  Bombay.    The  other  item 
which   needs    explanation    is    that  of  ^  local  bills  discounted.'      This 
represents  all  advances  made  by  the  company ;    and  the  directors  are 
glad  to  be  able  to  inform  you  that  very  nearly  the  entire  amount  of 
Hs.  3,18,000  is  covered  by  securities  sufficient  to  clear  them,  even  if  realised 
at  present  rates ;  and  the  unsecured  balance    is  granted  to  such  men 
that  recovery  is  undoubted.    So  the  directors  do  not  anticipate  any  losa 
whatever  on  this  account.    The  other  items  of  the  balance  do  not  need 
any  explanation,  as  each  shareholder  can  easily  understand  them.    It  is 
only  necessary  to  add  that  no  persons  whatever  have  any  claims  against 
the  establishment,  the  deposit  account  being  merely  nominal,  and  loans 
have  never  been  contracted.    Upon  the  stagnation  of  business  the  ex- 
penses  were  reduced  as  much  as  possible,  and  everything  was  done  that 
economy  could  suggest  to  lessen  the  outlay.    The  directors  further  state 
that  they  should  have  been  able  to  show  a  much  more  favourable  result 
bat  for  being  effectually  paralysed  by  the  small  amount  of  paid-up  capital 
at  their  command.    They  did  intend  to  make  further  calls  on  the  share- 
holders immediately  after  commencing  business,  but  the  unusual  distress 
which  affected  all  classes  at  that  time,  effectually  prevented  the  possibility 
of  such  a  course ;  but  notwithstanding  this  difficulty,  the  directors  feel 
assured  that  the  shareholders  will  consider  the  position  of  the  company 
very  favourable  indeed  when  contrasted  with  that  of  the  other  institu- 
tioDS  in  Bombay  of  the  same  nature." 

The  meeting  w^s  then  adjourned  till  August  31st. 


VOL.  XXV,  93 

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1222 

LONDON  AND  AUSTBALIAN  AGENCY  COMPANY. 
The  London  and  Australian  Agency  Company,  Limited,  has  been 
announced,  and  it  proposes  to  carry  out  very  important  operations. 
The  capital  sought  to  be  raised  is  £1,000,000  in  50,000  shaies  of  £20 
each,  the  first  issue  being  30,000  shares.     Of  this  issue  6,000  ahara 
have  been  apportioned  to  the  vendors,  leaving  24,000  for  allotment  w 
the  public.     The  business  intended  to  be  takoi  over  isthat  of  M«n. 
J.  H.  Clough  and  Co.,  of  Melbourne,  vho  have  for  yean  posaesBcda 
recognised  position  as  pastoral  agents,  and  transacting  a  most  extenave 
business    -with  flock  and  station  proprietors  tbroughout  Anstola- 
Operations  are  commenced  with  a  guaranteed  profit  of  £30,000  per 
annum  ;  Le.,  the  vendors  guarantee  to  forfeit  so  much  of  the  poichafie- 
money  of  their  goodwill  should  they  fell  short  of  making  sudi  profit 
It  is  stated  that  the  purchase  has  been  effected  on  the  basis  of  pw- 
apective  as  well  as  retrospective  profits.     The  sonroes  of  thflse  aw 
fivefold — ^viz.,  interest  on  money  advanced  ;  second,  commission  on 
money  advanced;  third,  commission  on  wool  sold  by  weekly  auction; 
fourth,  the  charge  for  storing  all  wool ;  fifth,  tbe  diff«ence  betwwn 
the  cost  of  borrowing  money  here  and  lending  it  at  ihe  colonial 
rate.     Arrangements  have  been  made  for  guaranteeing  a  dividend  d 
10  per  cent  for  three  years,  and  the  vendors  havB  also  agreed  toplMC 
their  sendees  at  the  disposal  of  the  company  for  the  same  period,  to 
co-operate  with  the  manager,  who  will  be  appointed  by  an  aci  onder 
the  direction  of  the  board  in  London.     The  qualification  of  each 
director  is  fixed  at  £4,000,  at  least,  to  be  teldby  him  in  his  own  ng^t 
in  the  shares  of  the  company. 


NEW  ISSUE  OF  ERIE  BAILWAY  BONDS. 

Thb  issn^of  £800,000  sterling  bonds  ol  tbe  Brie  Railway  CoWiiVv*' 
announced  on  the  22nd  September.  ^Qiey  are  introdneed  thro«#  Metf^ 
J.  S.  Morgan  and  €o., and  bear  interest  at  tiie  rate  of  6  V^^J? 
annum  in  bonds  to  bearer  of  £100  sterling  eaeh,  at  the  priee  <£^: 
redeemable  at  £100  at  the  end  of  ten  yean;  The  princsfial  end  n»^ 
will  be  payable  in  sterling  money  in  London,  free  from  all  fedanl  ^  "*^ 
tax;  £5per£100bQodi8payableonap|dieBtion,and£6ooaUotni«^^ 
remaining  instalments  spreading  over  mm  the  88tk  October  to  itotf^ 
of  January  next.   Taking  into  aooount,  in  addition  to  the  anninl  ^f^^ 


cent,  per  annum  upon  the  issue  ]^oe,  visL,  76.     Suhecriben  "•^^Tj 
option  of  paying  the  full  amount  in  advance  vqpon  any  of  thft  diici  vo^ 


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Communications.  1233 

for  the  mstalmentB,  and  upon  such  payments  discount  at  the  rate  of  5  per 
cent,  per  annum  will  be  aUowed.  Upon  payment  of  the  allotment  money 
scrip  certificates  to  bearer  will  be  issued  to  the  subscribers,  which  will  be 
exchanged  for  the  definitive  bonds  as  soon  as  possible  after  the  payment  of 
the  whole  amount  of  the  subscription.  Where  no  allotment  is  made  the 
deposit  will  be  returned  in  full,  without  deduction.  The  amount  of  the 
loan  authorised  by  the  railway  company  was  £1,000,000,  but  it  appears 
it  is  doubtful  whether  the  remaining  £200,000  will  ever  be  sent  out,  and  it 
will  not  in  any  event  be  issued  before  the  16th  of  September,  1866.  The 
traffic  of  the  route  shows  a  large  increase,  which  is  mainly  due  to  the 
development  of  the  resources  of  the  district,  to  the  numerous  coal,  iron, 
aJid  oil  companies  recently  brought  into  operation,  and  to  the  opening  of 
the  Atlantic  and  Great  Western  Kailway,  which  has  proved  a  great 
success. 


TENDERS  FOR  BILLS  ON  INDIA. 

Thb  biddings  for  bills  on  India  took  place  on  the  6th  September,  at  the 
Bank  of  England.  The  proportions  allotted  were—to  Calcutta,  13,46,000  rs.; 
to  Madras,  90,000  rs. ;  and  to  Bombay,  10,00,000  rs.  The  minimum 
price  was  as  before.  Is,  lO^d.  on  Calcutta  and  Madras,  and  la.  10{<2.  on 
Bombay.  Tenders  on  Calcutta  and  Madras  at  Is.  llfd.  will  receive  in 
full,  and  on  Bombay  at  Is,  Hid.  about  72  per  cent. ;  above  these  prices 
in  fuU.  Further  biddiDgs  for  20,00,000  rupees  in  bills  on  India  took  place 
on  the  20th  September.  The  proportions  allotted  were — to  tialcutta, 
10,61,000  rs. ;  to  Madras,  1,49,000  rs. ;  and  to  Bombay,  8,00,000  rs.  The 
minimwn  price  was  as  before.  Is.  lOid.  on  Calcutta  and  Madras,  and 
Is.  lOid.  on  Bombay.  Tenders  on  Calcutta  and  Madras  at  l5.  lljd.  will 
receive  about  47  per  cent.,  and  on  Bombay  at  Is,  Hid.  about  49  per  cent. ; 
above  these  prices  in  full. 


€ox!mmxcntwxiB. 


To  the  Editor  of  the  "  Banktrs^  Magazine.*' 

PRACTICE  WITH  REGARD  TO  BRANCH  BANK  CHEQUES. 

Wells,  6th  September,  1865. 

Sir, — ^You  state  in  your  current  number  that  you  are  not  aware  of  any 
such  case  as  that  described  by  your  correspondent  **  T,'^  liaving  formed 
the  subject  of  a  judicial  decision. 

I  beg  to  refer  you  to  Woodland  P.  0.  v.  Fear^  26  Law  Journal 
(Queen's  Bench)  202,  where  a  precisely  similar  case  was  decided  in  a 
most  satisfactory  and  conclusive  manner. 

The  facts  of  this  ease  were  these— A  person  named  Helller'drew  a 
cheque  up<m  the  branch  of  Messrs.  Studce^r's  Banking  Company,  at 
Glastonbury^  where  he  kept  an  account  and  paid  the  cheque  to  Fear,  who 
cashed  it  at  the  Bridgwater  branch  of  the  same  establishment. 

The  cheque  waa  duly  forwarded  to  the  Glastonbury  Bank  and  returned 
from  thence  unpaid.  Due  notice  of  the  dishonour  was  given  to  Fear,  and 
ultimately  an  action  brought  against  him  to  recover  the  amount,  which 
the  Court  decided  in  favour  of  the  Bank. 


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1224  CommunicatioM^ 

As  this  is  a  question  vitally  affecting  Ooimtiy  Banks  wiih  brandia,! 
beg  to  refer  your  readers  to  the  Bankers'  Magazine  of  1857,  page  724, 
where  there  is  an  article  on  this  subject,  and  a  full  report  of  the  jndgmieDt 
of  the  Court  of  Queen's  Bench  onthe  case  I  have  alluded  to. 

Your  obedient  senrant, 

JBL  G.  Maxshall. 


CHEQUES  THROUGH  THE  POST. 

Sir, — The  opinion  expressed  in  your  July  number  (page  888),  vi«.,  that 
a  banker  receiving  a  cheque  through  the  post,  may  hold  it  over  till  tiie 
following  day  before  returning  it,  has  been  questioned  by  bankers  of  ex- 
perience, both  in  town  and  country. 

It  is  stated  that  remitting  through  the  post  a  cheque  to  a  banker  on 
himself,  is  tantamount  to  presentation  over  the  oounter,  and  thai  the 
banker  is  legally  bound  to  pay  or  return  the  same  day. 

The  practice  with  us  has  been  the  contrary,  and  I  shall  feel  obliged  if 
you  will  kindly  favour  us  with  your  reasons  in  full,  quoting  any  caaes 
bearing  on  the  subject. 

Yours  truly, 

W.C. 

16th  August,  1865. 

[All  the  decisions  appear  to  confirm  the  opinion  given  in  our  July  num- 
ber. In  «  Byles  on  BUls"  8th  edition,  pp.  19,  20,  it  is  stated,  « If  the 
party  receiviug  a  cheque  do  not  live  in  the  same  place  with  the  drawer,  he 
should  send  it  to  his  banker,  or  other  agent,  by  the  next  day's  post,  and 
they  should  present  it  on  the  day  after  they  have  received  it."  Again, 
'*  If  it  so  hapx>en  that  the  drawer  of  the  cheque,  is  the  banker  of  the 
holder  as  well  as  of  the  drawer,  no  promise  by  the  banker  to  pay  the 
cheque  will  be  implied  by  his  receiving  the  cheque  from  the  holdor,  with- 
out observation,  and  keeping  it  till  the  following  day ;  for  primd  /am,  he 
will  be  taken  to  have  received  it  as  the  holder's  agent."  A  perusal  of  the 
judgment  in  the  several  cases  referred  to  by  Byles,  will  show  that  the 
opinion  of  the  judges  was  that  a  banker  receiving  a  cheque  drawn  upon 
himself,  whether  through  the  post  or  from  a  customer  for  his  credit,  is  not 
bound  to  return  it,  if  unpaid,  until  the  following  day.] 


CHEQUES  SENT  ABBOAD. 

Leeds,  September,  186& 
SiK, — Will  you  be  so  good  as  inform  me  if  a  cheque  for  £5,  or  under, 
drawn  here  and  circulated  abroad,  requires  a  penny  foreign  bill  stamp,  in 
addition  to  the  stamp  on  which  it  is  drawn. 

Your  obedient  servant^ 

G.L 

[By  Act  27  and  28  Vict.,  c.  56,  s.  2,  it  is  provided  that  any  bill  ol  ex- 
change payable  on  demand,  which  shall  be  endorsed,  or  purport  to  be  en- 
dbrsed,  out  of  the  United  Kingdom,  wheresoever  drawn,  shall  be  deemed 
a  foreign  bill  of  exchange,  and  chargeable  with  the  same  amoant  of 
stamp  duty  as  on  an  inland  bill  of  exchange  payable  otherwiae  than  on 
demand-j 


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Communications.  1225 

CROSSED  CHEQUES. 

London,  Sept.  23rd,  1866. 

Sir, — ^A  gentleman  paid  into  his  credit  at  his  banker's  at  the  West  End 
(a  branch  of  a  City  bank  in  the  Clearing)  a  cheque  for  £100,  drawn  npon 
a  City  bank.  The  cheque  was  crossed  with  the  name  of  the  bank  through 
which  it  was  to  pass,  and  was  presented  through  the  Clearing  for  payment. 
In  due  course  the  cheque  was  returned  to  the  West  End  branch  bank, 
marked  **not  sufBcient."  The  West  End  branch  returned  it  to  its 
customer.  After  the  lapse  of  a  day  or  so  the  customer  wrote  a  note  to  the 
manager  of  the  branch  (enclosing  the  dishonoured  cheque)  and  requested 
him  to  present  it  again  for  pajrment  without  delay.  The  West  End 
manager  accordingly  took  the  cheque  to  the  bank  upon  which  it  was 
drawn  and  requested  the  manager  to  cash  it,  or  ^  mark  it  for  payment,"  if 
he  was  then  in  funds.  This  request  was  refused,  with  the  answer  from  the 
City  manager  '^  that  as  the  cheque  was  crossed  it  must  go  again  through 
the  Clearing  House ;  that  a  cheque  once  crossed,  although  dishonour^, 
was  always  crossed,  and  that  neither  cash  nor  answer  could  be  giyen  to 
any  private  person  nor  the  banker  to  whom  crossed,  except  through  the 
Clearing  House." 

Will  you,  Sir,  kindly  say  in  your  next  impression  whether  you  consider 
the  crossing  stiU  holds  good  and  can  be  insisted  upon  after  the  cheque  has 
been  dishonoured  and  returned  te  the  customer.  Has  not  the  intention 
of  the  maker  of  the  cheque  been  carried  out  by  its  having  once  been 
presented  by  the  banker  te  whom  he  has  crossed  it  ?  Has  not  the  crossing 
directed  the  cheque  through  the  intended  channel  and  done  its  work  ?  Aa 
the  crossing  on  a  paid  cheque  is  of  no  further  use  than  te  show  the  channel 
through  which  the  cheque  was  presented  and  paid,  so,  it  appears  to  me, 
the  crossing  of  a  dishonoured  cheque  ought  te  be  of  no  further  use  after  it 
has  conducted  the  cheque  te  the  point  where  it  would  haye  been  paid  had 
there  been  funds  te  meet  it. 

I  am,  Sir, 

Your  obedient  seryant, 

H.  B. 

J  By  the  letter  of  the  Act  21  and  22  Vict.,  c.  79,  a  crossed  cheque  can 
y  be  paid  through  a  banker ;  but  it  certainly  appears  to  us  that  the  first 
presentation  should  exhaust  the  effects  of  the  crossing  and  that  a  dishon- 
oured cheque,  upon  being  re-presented,  should  be  considered  as  payable  to 
any  holder,  although  it  may  haye  been  crossed.] 


CASHING  OF  CHEQUES. 

Sib,— With  reference  to  the  letter  of  your  correspondent "  Y"  in  the 
September  number  of  your  magazine,  will  you  allow  me  te  state  a  case 
which  came  within  my  own  experience  a  few  years  ago. 

I  was  then  manager  of  a  branch  bank,  at  which  a  cheque  was  cashed, 
drawn  on  another  branch  of  the  same  bank  by  a  person  who  was  in  the 
habit  of  chajiging  cheques  with  me  though  he  kept  no  account. 

The  cheque  was  duly  forwarded  for  payment  and  returned  dishonoured. 
The  fact  was  at  once  communicated  to  the  person  of  whom  it  had  been 
reoeiyed,  and  application  made  for  re-payment  of  the  amount.  After  some 
delay  he  denied  his  liability  and  I  was  obliged  te  place  the  matter  in  the 
hands  of  our  8oliciter,when  te  my  intense  surprise  I  was  teld  the  bank 
had  no  power  te  insist  on  repayment,  as  the  cheque,  haying  been  cashed  by 


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1226  Future  Prospects  of  Finance, 

the  bank  on  which  it  was  drawn,  althon£;h  not  by  the  partienlar  bnndi  to 
which  it  was  addressed,  was  ^  satisfied,  and  the  affidr  as  mndi'setfcLed  as 
if  it  had  been  paid  in  there.  At  first  this  interpretation  of  the'  law  wu 
considered  false  and  absurd,  but  farther  inquiry  seemed  to  prove  dearly 
that  this  was  not  the  case,  and  proceedings  were  consequently  abandoned, 

Tomrs  obemecitly, 

W.J.A. 


THE  FUTURE  PROSPECTS  OF  FINANCE. 

At  the  last  moment,  the  28th  of  September,  the  directors  of  tie 
Bank  of  England  have  increased  the  rate  of  discount  from  4  to 
4^  per  cent, ;  although,  from  the  strain  for  money  the  last  few 
days,  it  was  imagined  that  the  court  would  have  to  support  the 
terms  for  capital,  it  was  hoped,  in  the  face  of  the  early-payment 
of  the  dividends  and  the  release  of  the  deposits  on  the  BraziliBn 
loan,  that  the  supply  would  have  become  better. 

The  ftill  subscription  to  the  Brazilian  loan,  and  the  payments 
upon  the  Erie  £800,000  debentures,  have  in  a  partial  d^;ree 
affected  the  general  market  the  last  week  or  ten  days.  At  the 
same  time^  however,  business  has  assumed  a  much  brisker 
appearance.  Not  only  in  London,  but  also  in  Manchester  and 
Liverpool,  operations  have  been  entered  into  on  a  moat  extensiTe 
scale,  which  have  temporarily  quite  changed  the  aspect  of  things. 
The  produce  markets  in  Mincing  Lane  have  been  firmer,  with 
a  rise  in  prices,  and  the  tendency  in  other  respects  has  been 
favourable. 

But  it  is  at  Manchester  and  at  Liverpool  where  the  great 
activity  has  been  manifested,  particularly  at  Liverpool,  $ad  if 
it  is  not  checked  a  little,  it  may  eventually  become  a  souTCe  of 
embarrassment.  Cotton  and  com  have  been  largely  adventured 
in,  and  an  improvement  has  been  going  steadily  forward  in  both 
of  these  articles  for  some  time  past.  Cotton  has  experi^iced 
an  important  jump,  and  the  speculation  recently  has  been  of 
such  a  rabid  character,  that  it  has  threatened  to  verge  into  an 
excitement  equal  to  that  witnessed  two  years  ago.  If  these 
symptoms  should  make  further  progress,  ana  Liverpool  and  Han- 
pnester  become  once  more  the  centre  of  this  kind  of  gamUing, 
a  short  period  of  dear  money  will  entail  a  reaction^  and  ihe 
consequences  may  prove  as  serious  as  those  encountered  is 
October  and  November  last.  We  trust  we  are  not  going  to 
pass  through  any  stringency  during  the  last  three  montk 
of  the  present  year,  and  for  the  moment  the  indicationfl  are  not 
sufficiently  startling  to  create  any  apprehension.  The  safest  wav, 
nevertheless,  to  avoid  shoals  and  quicksands  of  the  sort,  wiH  be 


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JEstates  of  Failed  Firms.  1227 

to  dlBCOurage  speculation^  whether  in  Liyeipool,  Manchester^ 
or  elsewhere ;  and  everyone  wUl  be  bounds  in  justice  to  him- 
sdf  pr  his  neighbour,  if  he  sees  anybody  going  too  fast,  to 
interpose  a  word  of  caution  or  advice  for  the  general  good. 

No  doubt  our  trading  relations  are  in  a  more  healthy  position 
than  they  were ;  that  the  pacific  policy  of  President  Johnson 
has  assisted  to  stimulate  business,  not  only  with  the  North  but 
also  with  the  South  ;  and  that  a  revival  oi  industry  throughout 
the  American  States  will  cause  large  orders  to  be  given  over 
the  length  and  breadfch  of  the  United  Kingdom.  These  will 
greatly  assist  to  invigorate  the  condition  of  our  commercial 
transactions,  and  in  the  end  leave  profitable  results.  The  intro- 
duction of  new  loans  and  new  projects  may  be  tolerated  to  a 
certain  extent,  and  besides  those  already  announced  there  are 
others  to  follow ;  but  even  such  drains  upon  our  resources  must 
not  be  supported  ad  infinitumf  because  the  Stock  Exchange  has 
been  suffering  for  a  long  time  past  from  the  plethora  of  securi- 
ties created  smce  1862. 

Nothing  can  be  more  certain  than  that  we  shall  get  through 
1866  satisfactorily  if  speculation  is  not  allowed  to  ride  rampant 
over  legitimate  business.  If  that,  however,  is  to  be  the  case, 
the  sooner  arrangements  are  made  for  another  collapse,  the  better 
it  will  be  for  those  who  seek  to  protect  themselves  by  tiniely 
preparations.  There  are  numerous  mercantile  firms  who  have 
not  got  through  the  dark  days  of  1864-65  without  difficulty, 
and  should  they  have  large  losses  through  any  fresh  reaction, 
they  will  yet  have  to  go  by  the  board,  prejudicing  themselves 
and  their  connexions.  A  variety  of  finance  and  other  institu- 
tions would  also  like  to  see  the  current  year  pass  unaccompanied 
by  any  new  financial  disturbance,  since  their  position  by  the 
lapse  of  a  few  months  of  ease  and  quietude  will  be  materially 
strengthened.  So,  on  all  grounds,  we  desire  to  counsel  a  repres- 
sion of  active  speculation. 


THE  ESTATE  OF  MESSES.  SCOTT,  BELL  <&  CO. 

Thsbs  was  a  numerous  meeting  on  the  31st  August,  of  the  creditors  o{ 
Messrs.  Scott,  Bell,  and  Co.,  who  had  recently  faHed,  when  the  statement 
presented  by  Messrs.  Coleman,  Turquand,  Youngs,  and  Co.,  showed  debts 
and  liabilities  placed  at  £296,780,  and  assets  at  i^23,517.  Great  sympathy 
was  expressed  for  the  partners,  and  it  was  unanimously  agreed  to  cairy 
out  a  liquidation  under  inspection. 


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1228 


THE  ESTATE  OF  MESSRS.  JOHN  T.  BELL  k  00. 

ks  adjourned  meeting  of  the  creditors  of  Messrs.  John  T.  Bell  md  Co., 
merchants,  2,  Billiter  Square,  was  held  on  the  7th  September,  when  printed 
statements  of  the  affairs  of  the  Bombay  firm,  and  also  of  their  native 
broker,  which  had  been  submitted  to  the  creditors  there,  were  laid  befoce 
the  meeting,  with  certain  amendments,  as  prepared  by  Meesn.  Coleman, 
Turquand,  Youngs,  and  Co.,  when  it  was  resolved  that  the  statement  cod- 
taining  those  amended  statement's  should  be  forwarded  to  the  inspecton  flt 
Bombay  and  communicated  to  the  creditors  there,  together  with  the  dnit 
of  a  deed  of  inspection  prepared  in  this  country,  according  to  the  piia- 
ciples  of  the  Bankruptcy  Act,  which  the  meeting  here  inyited  the  Lidiu 
creditors  to  execute. 


MONTHLY  CHRONOLOGY. 


September  4. — ^The  directors  of  the  Bank  of  Prussia  raised  their  rate  of 
disooont  to  5  per  cent. 

13. — Announcement  by  Messrs.  Bothschild  and  Co.  of  a  new  BrasUitt 
loan  for  £5,000,000  sterling  in  a  5  per  cent,  stock  at  the  price  of  74,  vith 
a  sinking  fund  of  1  per  cent.,  to  be  brought  into  immediate  operatioo. 

22. — ^Messrs.  J.  S.  Morgan  and  Co.  announced  the  issue  of  £800,000 
sterling  bonds  of  the  Erie  Railroad  Company,  to  bear  interest  at  the  rate 
of  6  per  cent,  per  annimi,  in  bonds  to  bearer  of  £100,  at  the  price  of  75, 
to  be  redeemable  at  £100  at  the  end  of  ten  years. 

25. — Intelligence  received  that  the  Greek  government  had  contracted  i 
loan  of  £140,000  with  the  Ionian  Bank  at  7  per  cent,  interest,  theprindpsl 
to  be  reimbursed  in  fifteen  years  by  monthly  deductioDS  from  the  c»- 
toms  revenues  of  Corfu,  Cephalonia,  and  Zante. 

28. — The  Bank  directors  raise  tiie  rate  of  discount  from  4  to  4)  per  oeot 


BANKING  OBITUARY. 


On  the  29th  of  June,  lost  on  his  passage  from  Hong  Kong  to  Foochov, 
in  the  P.  and  0.  Company's  steamer^  Oorea,  Mr.  Henry  Noble,  mansger 
of  the  Agra  Bank. 

On  the  ,12th  September,  at  Heathfield  Lodge,  Upper  Homsey  Rise,  Mr. 
James  Stewart,  late  secretary  of  the  Bank  of  England. 

On  the  22nd  September,  at  Great  Cambridge  Street,  Hadcney  Boad, 
Mr.  William  Pawley,  late  of  the  Bank  of  England,  in  the  81st  year  of 
his  age. 

On  the  10th  August,  at  Sydney,  New  South  Wales,  Mr.  George  Kilgow 
Ingelow,  manager  of  the  Oriental  Bank  Corporation. 


BANK  MOVEMENTS. 


Mr.  John  Hall|  Jun.,  of  the  firm  of  John  Hall,  Jan.,  and  Co.,  of  Now  1,  Kev^ 
London  Street,  haa  joined  the  board  of  the  Albion  Bank. 


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Trade  of  the  United  Kingdom.  12S59 

Mr.  WiDiam  Dent,  Sen«,  has  joined  the  board  of  directors  of  the  Joint-Stock 
Discount  Company,  and  will  occapy  the  position  of  chairman. 

Mr.  G.  M.  Albert!,  of  the  firm  of  Oppenheim,  Albcrti,  and  Co.«  has  joined  the 
conncil  of  direction  of  the  Imperial  Ottoman  Bank  at  Constantinople. 

The  Union  Bank  of  Ireland  has  opened  a  branch,  nnder  the  management  of 
Wm.  Macfadin,  £8q.,  at  Abbeyleiz,  Queen's  County. 

Messrs.  C.  S.  Hanson  and  G.  Tubmi,  bankers,  of  Constantinople,  have  been 
nominated  by  the  Porte  members  of  the  Conncil  of  Surveillance  of  the  Grand 
Livre  of  Public  Debt  of  the  Ottoman  Empire,  in  accordance  with  Article  II.  of 
the  Law  of  the  29th  of  March  last. 


The  directors  of  the  Delhi  and  London  Bank,  Limited,  have  declared  an  in- 
terim dividend  of  9  per  cent,  per  annum  for  the  half-year  ending  30th  June, 
1865. 


The  British  and  Californian  Banking  Company,  Limited,  have  announced  an 
ad'interim  dividend  of  4s,  per  share  for  the  haf-year  ending  the  30th  of  June. 

The  Merchant  Banking  Company  of  London,  Limited,  has  declared  an  in- 
terim dividend  of  £1  per  share  upon  the  old  shares,  and  Is,  6cL  per  share  upon 
the  new  shares  (equal  to  8  per  cent,  per  annum). 

It  has  been  announced  by  the  liquidators  of  the  East  of  England  Bank  that  a 
third  dividend  of  2«.  6d.,  making,  with  the  former  payments,  lis,  6d.  in  the 
pound  payable  to  the  creditors. 


TRADE  OF  THE  UNITED  KINGDOM. 

The  Board  of  Trade  returns  for  the  month  and  seven  months  ended  the 
31st  July,  were  issued  on  the  Slst  Augnst,  and  must  be  regarded  as  of  a 
more  favourable  character  than  those  presented  for  the  past  few  months. 
Although  the  value  of  the  exports  is  rather  below  that  of  the  corresponding 
month  last  year,  still  the  difference  is  but  slight,  and  tends  to  show  that 
the  trade  of  the  country  is  increasing,  and  that  commerce  is  in  a  sound 
oondition.  The  total  declared  value  of  exports  for  the  month  of  the  pre- 
>^nt  year  was  £14,113,410  against  £14,394,364  in  1864,  and  £13,648,840  in 
1863,  which  is  a  decline  as  compared  with  the  former  period  of  £^(^,964^ 
but  an  increase  over  the  latter  of  £464,570.  For  the  seven  months  of  the 
present  year  the  total  declared  value  was  £88,242,048  against  £92,441,950 
in  1864,  and  £75,663,037  in  1863,  which  show  a  decrease  of  £4,199,202, 
compared  with  1864,  and  an  increase  of  £12,579,011  contrasted  with  1863. 
The  chief  changes  have  been  an  increase  in  the  exportation  of  alkali, 
gunpowder,  beer  and  ale,  coals  and  culm,  cotton  yarn,  cotton  manufactures, 
haberdashery  and  millinery,  hardware  and  cutlery,  linen  manufactures, 
metals,  seed  oil,  silk  manufactures,  and  woollen  and  worsted  manu- 
factures. But  there  has  been  a  decrease  in  linen  yarn,  machinery, 
thrown  silk,  wool,  and  woollen  and  worsted  yam.  In  imported  articles 
the  increase  has  been  in  raw  cotton,  flax  and  hemp,  guano,  flaxseed 
and  linseed,  tallow,  cocoa,  cofiee,  spirits,  unrefined  sugar,  tea,  and  tobacco. 
And  the  falling  off  in  leather  manufactures,  paper,  raw  ailk,  wool, 
Woollen  manufactures,  and  wine.  With  respect  to  cereals  there  has  been 
an  increase  in  the  importation  of  barley,  oats,  beans  and  Indian  corn, 


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1230 


Trade  qf  the  United  Kingdom. 


with  a  deeieaie  ia  wheal,  peas,  and'  wheat  meal  and  floor.  In  the  eaas 
of  proviaiona  an  inoreaae  ia  ihown  in  the  importation  of  all  duauij^ 
tiona,  with  the  ezoeption  of  lard,  in  which  there  haa  been  a  larga 
deoline.  The  annezea  tables  exhibit  the  alteration  in  the  cMef  artidei 
enumerated :— • 


Ezroaia. 


••• 

' ...    tons 

1864. 

vm. 

Coals  and  enlm ...  * 

761,496 

881,633 

Cotton  manufaotQies  ... 

... 

...    yards 

148.980,311 

172,134,196 

Cotton  yarn      

•  a. 

...     lbs. 

8,322,915 

10,941.783 

Haberdashery  and  millinery 
linen  manofactorea    ... 

...  valae  £ 

408,738 

447,909 

...  yards 

17,034,189 

19,787.946 

Linen  ram       

Iron,  pig           

...     lbs. 

4,064,308 

3,305,923 

...     tons 

43,630 

46,216 

Ditto,  railway 

.*•       „ 

33.639 

43,196 

Copper,  nnwioaght     ... 

...   cwts. 

14,597 

«l.t7« 

Ditto,  sheets,  n^,  &c. 

...        „ 

54,124 

35.373 

OH  seed           

...  gallons 

475,803 

938,643 

Bilk  mannfaetorea 

...  Value  £ 

134^406 

186,767 

Ditto,  thrown 

...     lbs. 

48,636 

17,997 

Spirits,  British 

Woollen  cloths,  &o.     ... 

...  gaUona 

478,676 

2O3»400 

...    yards 

2,876,653 

2,500,314 

Woollen  and  worsted  yam 

..• 

...     lbs. 

8,965,357 

2,940jD45 

Imports. 


Cocoa  "• '      ... 

uotteo     •••        •••        at. 

Wheat    ...        ...        •«• 

Wheat-meal  and  floor 

Cotton,  raw       

Flax        

Hemp,     •• 

Hides,  tanned,  &c. 
Leather  mannfactares ... 

Butter    

Chee^    ...        ...       ... 

Flax-seed  and  linseed  ... 

Silk,  raw. 

Silk,  thrown      

Silk  manufactures 

Spirits     

Suffar,  unrefined 

Tallow 

Tea        

Tobacco  

Wine 

Wool      „ 

Woollen  manufactures... 


lbs. 

«« 

qrs. 
cwts. 


lbs. 
pairs 
cwts. 

ft 
qrs. 


,  gallons 
>   cwts. 

:  i^ 

n 

,  gallons 
.     lbs. 
,  yaloe  £ 


1864. 


756,446 

9,372.996 

2,505,182 

315,931 

577.656 

215,079 

135,948 

490,545 

691,044 

81,154 

55,141 

56,086 

453,010 

1,997 

199,322 

827,599 

1.171.544 

40,16? 

2,917,230 

2,252,237 

1,451,806 

81,579,087 

.  228,824 


981,954 
14,052,141 
2,078,481 
291,434 
885,209 
8Ci3,0S4 
IS7.433 
571,699 
657,216 

86^963 

86,91^ 

819,438 

379 

19U999 

1467,9Sl 

1,382,00 

52,l!0 

4.651,677 

6304,011 

1,196,0^ 

2M78,140 

144,406 


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1231 


THE  INLAND  KBVENUE. 

Thx  Board  of  Inland  Bevenne  Have  the  good  fotiune  to  be  able  to  state, 
in  their  report  for  the  financial  year  ending  with  Mareh,  1866^  that  not- 
withstanding a  loss  of  £1^00 fiOO  by  repeal  of  taxation,  the  inland  reye^nne 
oaUected  was  greater  by  £161,000  tiian  in  the  previous  year*  .  The  reyenne 
from  home-made  Bpirits,  £10,176,781,  showed  an  increase  of  £484^16,  and 
the  niunber  of  gallons  consumed  as  beverage  in  the  United  Kingdom, 
£20,369,844,  an  increase  of  £d46,398.  This  is  an  unequivocal  testimony 
to  the  pirosperoiis  condition  of  the  labouring  classes.  Those  who  take 
alarm  at  an  increased  sale  of  intoxicating  liquors  must  remember  that, 
notwithstanding  the  increase  of  population,  the  quantity  consumed  is  now 
very  considerably  less  than  it  was  some  years  ago  before  the  duties  were 
raised.  The  year  1852  was  the  last  before  those  alterations  in  the  rates  of 
duty  oommenoed,  whidi  terminated  in  1860  in  a  uniform  rate  of  10«. 
throughout  the  kingdom.  The  consumption  in  1862  was  nine-tenths  of  a 
gallon  per  head  of  population,  but  the  present  consumption  is  little  more 
than  six-tenths  of  a  gallon  per  head,  and  yet  there  is  an  increase  of  nearly 
£4,000,000  in  the  revenue.  If  we  include  the  foreign  and  colonial  spirits 
consumed  the  quantity  is  still  almost  a  gallon  and  one-tenth  per  head  in 
1852,  and  not  quite  nine-tenths  of  a  gallon  in  1864.  Of  wine  the  consmnption 
has  risen  ia  the  same  period  from  '23  of  a  gallon  per  head  to  '38,  and  of 
beer  from  *6  of  a  barrel  to  *7.  These  facts  show  the  tendency  towards  the 
substitution  of  milder  stimulants  for  ardent  spirits.  Comparing  stiU  the 
years  1852  and  1854,  the  consumption  of  beer  in  England  will  be  found 
to  haye  increased  nearly  12  per  cent. — ^yiz.  from  '85  of  a  barrel  per  head  to 
*95  ;  in  Scotland,  60  per  cent.-^viz.,  from  '20  of  a  barrel  to  '32 ;  in  Irelandi 
122  per  cent. — vis.,  from  '09  of  a  barrel  to  *20,  Illicit  distillation  has 
decreased  in  Great  Britain  in  the  last  year,  but  has  increased  in  Ireland, 
the  cases  there  arising  to  3,452  in  number.  The  smuggling  in  Ireland  is 
concentrated  in  the  poorest  districts— Donegal,  Sligo^  Galway,  and  Mayo ; 
and  the  consumers  are  those  who  are  too  poor  to  buy  the  duty-paid  spirit. 
The  quantity  of  malt  made  last  year  reached  48,538,412  bushebi,  again 
showing  an  increase.  Foreign  barley  has  been  used  for  malting  to  an  un- 
usual extent,  not  merely  on  account  of  the  inadequacy  of  the  supply  of 
English  barley,  but  also  because  the  colour  or  quality  of  some  of  th^ 
foreign  barleys  recommend  them  to  the  brewers  of  a  certain  class  of  ales. 
28  persons  made  entry  of  malthouses  for  making  malt  duty  free  to  be  used 
in  feeding  animals  under  the  Act  of  1864.  The  quantity  made  was  10,706 
qrs.,  bat  only  8,748  qrs.  were  mixed  with  linseed  and  delivered  for  con* 
sumption.  Of  the  remainder  part  was  placed  in  store,  and  part  allowed  to 
be  used  for  brewing  on  payment  of  the  duty.  Several  of  these  maltsters 
hay«  gireD  notice  that  it  is  not  their  intention  tp  make  cattle-f  ee<)iDg  mali 


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1232  The  Inland  Eevenue, 

again,  and  it  seenu  TOx>babl6  that  leas  than  half  the  original  number  will 
continue  at  work.  But  it  must  not  be  supposed  that  this  ia  owing  to 
excise  restrictions.  On  the  oontrary,  the  great  majority  of  the  gentlemen 
engaged  in  this  manufacture  acknowledge  that  they  had  nothing  to  oomplain 
of  on  that  score,  and  the  objections  which  were  made  by  the  few  who  were 
dissatisfied  were  directed  against  the  regulation  requiring  that  the  mixture 
should  be  ground  to  a  degree  of  fineness  which  has  since  been  considerafaly 
modified.  The  entire  net  produce  of  excise  duties  in  the  year  waa 
£19,409,636— an  increase  of  £1,000,529  o7er  the  previous  year. 

Stamps  produced  £9,531,974,  an  increase  of  £219,058.  So  &r  as  ^ 
board  can  judge  from  the  returns,  the  estimate  given  by  some  of  the 
principal  insurance  offices  that  stock-in-trade  Was  about  one-third  d  the 
property  insured  against  fire  was  a  very  fair  one.  A  letter  in  Hu  Tiwta 
in  the  autumn  of  last  year,  complaining  of  the  operation  of  the  Legacy 
Duty  Acts,  elicited  others  of  a  similar  lund,  and  produced  an  impression 
that  either  the  law  or  the  administration  of  it  by  this  department  was 
unjust  and  oppressive.  Complainants  were  invited  to  state  their  griev- 
ances to  the  Treasury  or  to  the  ChanoeUor  of  the  Exchequer,  and,  oome- 
quently,  in  addition  to  some  of  those  who  had  publicly,  but  anonymoaalyy 
expressed  their  dissatisfaction,  several  others  came  forward  to  dUim  a 
hearing.  As  the  Board  of  Inland  Revenue  have  received  instruddoms  to 
report  generally  on  the  operation  of  the  legacy  and  succession  duties, 
they  refrain  at  present  from  any  discussion  of  the  subject.  They  remark 
that  much  of  their  time  ia  occupied  in  adjudicating  penalties  on  unstamped 
instruments.  Of  ordinary  deeds  thus  brought  to  their  chief  office  for  com- 
pletion there  seems  to  be  a  gradual  increase.  This  no  doubt  arises  in  a 
great  measure  from  the  general  increase  in  the  number  of  deeds,  ooose- 
quent  upon  the  growth  of  railroads,  the  rise  in  value  of  landed  propstr, 
and  the  prosperous  condition  of  the  country ;  but  it  may  also  be  attributed 
to  a  practice  which  is  extending  itself  among  country  solicitors  of  having 
their  deeds  engrossed  by  law.  stationers  in  London,  who  are  carelesB  or 
uninstructed  as  to  the  stamp.  It  is  suggested  that  solicitors  should  bear 
in  mind  that  every  deed,  in  strictness  oxlaw,  ought  to  be  stamped  not  only 
before  execution,  but  before  its  engrossment,  and  if  they  paid  pr^ypa 
attention  to  this  requirement  they  would  avoid  the  penalties  whi^  th^ 
sow  so  frequently  incur. 

Passing  by  the  land  and  assessed  taxes,  which  produced  in  the  year  a 
net  sum  of  £3,287,934,  being  an  increase  of  £57,^90,  we  come  to  the  poro- 
perty  and  income  tax,  which,  being  reduced  &om  7d.  to  6<i.,  showed  a 
decrease  of  £1,116,221,  and  produced  £7,985,773.  The  estimate  f<xr  the 
year  was  based  on  the  very  liberal  calculation  of  a  yield  equivalent  to 
£1,230,000  for  each  penny  of  tax,  much  more  than  was  warranted  by  the 
actual  receipts  in  former  years,  but  about  what  might  &drly  be  antieipated 
from  the  new  assessments  in  1864,  under  schedules  A  and  B  and  the  general 
progress  of  the  country.  It  appears,  therefore,  from  the  excess  of  £180,000 
over  this  sanguine  estimate,  that  the  improvement  upon  the  assesamesti 
of  former  years  is  very  remarkable.  The  mere  account  of  the  produce  of 
the  tax  does  not  represent  the  assessments  of  the  year,  because  it  is  com- 
posed of  nearly  one-third  of  the  tax  from  the  previous  year's  assessment, 
and  two-thirds  of  the  tax  of  the  year  in  question.  When  there  has  been 
an  alteration  in  the  rate  of  the  tax,  it  is  of  course  still  more  difficult  to 
arrive  at  any  conclusion,  from  the  accounts  of  the  receipt  within  the  year, 
as  to  the  effect  of  the  alteration.  But  it  is  certain  that  in  many  districts 
the  amount  of  duty  both  under  schedule  A  and  schedule  D  is  greater  than 


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Monetary  Intelligence,  1233 

it  was  when  the  tax  was  at  7d.  in  the  pound,  and  this  remarkable  im- 
provement has  shown  itself  in  Ireland  as  well  as  in  Great  Britain.  So  far 
as  schedules  A  and  B  are  oonoemed  this  result  is  attributable  in  no  small 
d^ee  to  the  care  and  judgment  with  which  the  assessments  were  made 
on  this  occasion  by  the  surveyors^  acting  under  special  uistnictions  from 
the  Inland  Reyenue-offioe.  The  valuations  under  the  Union  Assessment 
Act  were  also  of  great  assistance^  especially  in  the  case  of  land  in  the  occu- 
pation of  the  owner,  where  the  former  unsatisfactory  parochial  rating  to 
the  relief  of  the  poor  was  the  guide  on  which  the  officers  chiefly  reUed. 
The  same  Act  has  likewise  furnished  a  much  higher  valuation  on  a  descrip- 
tion of  property  most  difficult  to  assess  fairly — ^the  houses  of  country 
gentlemen. 


MONETARY  EEYIEW  FOR  THE  MONTH  OF  SEPTEMBER. 

Gr£at  sluggishness  has  prevailed  throughout  the  month  both  in  finance 
and  trading  affairs.  It  is  only  at  the  last  moment  that  there  is  any  pros- 
pect of  revival ;  symptoms  of  returning  activity,  however,  are  visible,  and 
the  apprehension  is  that  speculation  may  perhaps  be  too  freely  encouraged. 
The  end  of  the  autumn  and  the  whole  of  the  winter  trade  should  be  good, 
seeing  the  late  favourable  weather  and  the  moderate  rates  of  discount 
which  have  recently  ruled.  The  advance  of  J  per  cent,  just  made  in  the 
Bank  official  minimum  will  create  no  pressure,  though  always,  at  the  ter« 
mination  of  the  quarter,  there  is  a  greater  inquiry  for  capital  to  meet  revenue 
and  other  payments.  The  Bank  rate  being  4}  per  cent.,  the  bill-brokers 
charge  4^,  and  the  joint-stock  banks  work  at  4|  per  cent. 

The  tendency  in  the  market  for  English  securities  has  been  unfavourable. 
A  fall  has  followed  the  cessation  of  the  government  purchases,  and  the  in- 
troduction of  the  Brazilian  Loan  has  caused  sales  to  be  effected  to  take  up 
that  stock.  No  large  transactions  in  other  respects  have  ensued.  The 
Exchequer  bill  market  has  been  in  a  quiet  state. 

Foreign  securities  show  no  great  change.  Attention  has  been  much 
<iirected  to  the  Brazilian  scrip,  which  from  1^  pm.  has  gone  to  3}  to  4  pm., 
and  is  expected  to  be  higher.  Turkish  has  remained  quiet,  and  the  opera- 
tors manifest  no  desire  to  push  transactions.  Mexican  has  recovered, 
but  after  reaching  27  has  gone  back  to  26}.  It  is  said  the  National 
Bank  of  Mexico  is  about  to  be  introduced.  Spanish  presents  a  slight 
increase  of  firmness.  Most  Federal  securities  have  advanced;  but  the 
Confederate  loan  remains  dull,  and  is  now  thoroughly  repudiated. 

Railway  shares  have  been  latterly  rather  stronger,  but  business  has  not 
been  so  active  as  it  was  last  month.  The  principal  speculators  have  been 
out  of  town. 

Bank,  finance,  and  credit  shares  have  been  fairly  supported,  and  there  is 
a  gradual  tendency  to  improvement.  The  buyers  have  taken  the  leading 
descriptions,  because  they  believe  in  better  dividends.  A  large  amount  of 
stock  has  been  recently  absorbed. 

The  produce  markets  have  generally  revived.  An  increased  business 
has  be^  concluded  in  sugar,  tea,  and  coffee  in  London ;  and  there  haa 
been  great  animation  in  cotton  at  Liverpool. 


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1234 

TBS  GRAIN  TRADE. 

Tm  grain  markets  have  exhibited  considerablo  fluctnations  during  tbe 
laat  few  weeks,  as  is  nsiially  the  case  at  this  period  of  the  year,  when  the 
state  of  the  weather  exercises  so  much  influence  on  the  resnlts  of  the 
harvest.  The  few  wet  days  which  occurred  a  short  time  since,  caased  the 
price  of  wheat  to  advance  materially,  but  tiie  subsequent  brilliant  and  hoi 
weather  dissipated  all  ideas  that  might  have  been  entertahied  with  re- 
gard to  the  state  of  the  crops,  which,  on  the  whole,  have  been  veli  got  in, 
and  the  samples  which  have  since  been  brought  to  market  have  ^eoenily 
proved  in  excellent  condition.  The  yield  of  most  cereals  is  ocoiBideced  to 
be  of  about  a  fair  average,  consequently  prices  have  again  receded  io  raj 
nearly  the  extent  of  the  previous  advance.  At  the  present  prices,  hov- 
ever,  the  markets  are  firm,  the  latest  official  average  quotations  being*- 
wheat,  42«.  per  qr. ;  barley,  30s.  2d.  per  qr. ;  and  oats,  20s.  lOd.  per  qr. 
The  Gazette  returns  for  England  and  Wales  have  been  : — 

Week  Whoftfc. 

ending,  .  Qr8.sold. 

1866. 

Aug,  26  48,026  .. 

Sep.    2  61,742  .. 

„      9  60,834  .. 

„     16  62.441  .. 

M     23  69,988  .. 


Weeklj 

Av^. 

Dnigr. 

46    4        .. 

1    0 

46    r       .. 

1    0 

46    0 

10 

44    7 

10 

42    0 

1    0 

ff.  I 

43  ; 

.        4S  \ 

..     42  : 

..        42  i 

.•        42  i 


The  importations  since  the  harvest  of  1864  have  been : — 

Wheat.         OtlHrQmfcB.  TOUL 

,    .           .                     .    Cwto.                 OrtB.  Gvtt. 

Fifty-seven  weeks  ended  19th  Aug....    20,32^,212  Sfr,662,456  47,385,(68 

Five  weeks  ended  23rd  September  ...      2,342,982    2,911,711  ^254,^ 

22,666,194  30,474^67  53^46^1 
And  the  weekly  a,verage8  have  been : — 

Fifty-seven  weeks  ended  19th  Aug.    ...      366,000       484,000  840^ 

Five  weeks  ended  23rd  September    ...      468,000      682,000  l,O5Q|p00 

More  112,000         98,000  210,000 


STATE  OF  TRADE. 


Tee  state  of  trade  is  generally  better,  and  the  mereantile  eommnilT 
believe  in  an  improvement  throughout  the  remainder  of  ^e  year. 


-♦-*- 


VOTICEB  TO  CORBSSPOVBSHTS. 

We  hare  arraD|ied  in  ftitaze  to  iwoe  a  double  number  in  Fetaroaxy  aatf  Avgoatt  tnrtrr*  cf  ■> 
Ibrm^IjidHavttndKorember.  This  has  been  rendered  neoeesazy  by  tli«  gnat  iaow  ^ 
tho  Meetings  or  IheBanks  sad  DisooontCkMupaniee,  vbicii  will  be  slwi^s  oaraflsQy  coBicaM 
in  the  pages  of  the  Bankert^  Magaeiue.  We  diaU  also  frive  the  prooeedbiaa  ct  tka  wl"* 
Credit  ana  Finance  Companies  as  th^  are  more  or  less  aswociated 
that  onr  sabscribers  and  readers  can  refer  to  them  without  diffiflolf 
will  please  forward  conrnmnicatlons  addreaaed  to  the  Editor,  Ko^S,  — —t—  «^^i  • 
scripttons  and  orders  as  osoal  to  Messrs.  Groombridge  and  Sons,  Patemosfisr  Bov. 
Xesars.  WSterlow  and  Sons,  Carpenters'  Hall,  Iiondon  WalL  BAnmr«  ajto  Tommo^ 
AiraonoTM.— It  will  be  peroeiyed  from  notice  eLsewhare,  thai  the  Editor  of  the  Bm^m 
JTo^'anM  is  collecting  and  arranging  a  series  of  Banlring  and  Finanoial  Anniil"*"  VT 
oontribations  firom  sabsorlbers  and  readers  of  the  Maaazin^  will  be  thankfiiQy  reeern^ 
partioolarly  if  the  snlgect-matter  shall  not  haye  prerioaaly  upoared  i&  pdat.  Kocsec 
panoxuaoroflhnalTOwiUreoaiyepiiblioiiy.  ^^ 


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1236 


.BANK  OF  FRANOB. 

DEBTOR. 


Aug,  31. 

Sept.  7. 

Sept.  14. 

Sept.  21. 

V.              0. 

V.              0. 

».        c. 

».             0, 

Capital  of  ihe  Bank  ... 

182,600,000    0 

182.600,000    0 

182,600.000    0 

188.600.000    0 

Profits  in  addition  to 

« 

Capital -(Art.  8,  Law 

orJime9.18S7)       ... 

Beeerre  of  t^e  Bank 

7.0M,776    2 

7,044,778    2 

7,044,776    2 

7,044,776    8 

and  ita  brancbea     ... 

22,106.780  14 

22.106,760  14 

28,105,780  14 

88,106,760  14 

Beeerre  in  landed  pro- 

per^    

Kotesln  drealation  ... 

4.080.000    0 

4.000,000    0 

4.000,000    0 

4,000.000    0 

•16,601,326    0 

849,749,876    0 

860,146,626    0 

841,097,786    0 

BazLk'notes    to    order 

and  receipts  payable 

i 

ataiglit         ...       ... 

9,6H9M  67 

8,966,167  22 

7,796,108  69 

7.689,669  93 

Treasoiy  aooOont  onr- 

rent»  creditor.^ 

166.906.684  80 

166,028,740  66 

164,817.774  66 

170.002,286    1 

Cnrrent  aooonnts,  Paris 

168,886,138  76 

189,232,879  48 

173,067.871  84 

166.396,441    9 

Do.  branch  banks      ... 

28,416.712    0 

28,606,466    0 

87.980,106    0 

28.283.619    0 

DlTldezids  payable     ... 

1,743,466  76 

1,634^32]  76 

l,648,7ffi(  76 

1,483.389  75 

DiBOoonte  aod  suDdiy 

intsrests       ...       ••* 

^307,707  66 

4,867.726  36 

6,807,616  67 

6.641,464  33 

Be-diaooanted  the  last 

tax  montNT    

1.487,623  17 

1,427,623  17 

1.487,683  17 

1,427,623  17 

Borphis  of  receipts  not 

• 

diatifboted    ...       ... 

962,003  86 

768,093  36 

762,993  36 

Bi|Tt^f  i^yiy.j,          ,,,          ,,, 

9,394^209  16 

9,744^442  79 

9.418.284  86 

9,489.343  93 

Total 

1,606,669,616  87 

1,465,640.361  84 

1,467,747,312  86 

1,447,774^066  73 

OBXDrcOB. 

Aag.  31. 

Sept  7. 

.  iept.ii 

Sept  21. 

9.          0. 

V.          c. 

V.             0. 

V.            0. 

Caahin  band  and  caah 

in  the  branch  banka 

486,978,020  67 

603,716.344  87 

409,884^478   7 

409,913,899  33 

Gommerdal  bills  OTor- 

. 

dod      

Commerdal  bills  dis- 

672,4^83 

880,460  68 

8,806,661  48 

coanted.not  yetdne 
I>o.  brandi  banks  _^... 
Advances  on  deposits 

338,660,620  76 
306,111,833   0 

289.169.977  67 
866,442,672    0 

881,839.631  38 
899.860.743    0 

876,847,057  06 
801,819,900   0 

ofbnmon      

63,116.273  86 

64,439,066  16 

417.887,666  16 

48.147,766  16 

Do.  branch  banks 
I>o.  on  French  pnblio 

11,902,000    0 

12.094^900    0 

18,743.600   0 

12^606.900   0 

eecoritias      ...^  «. 

14676,700    0 

14.428,100   0 

14.161,400   0 

13.961.100   0 

Do-bythebeanohbanks 

10,826,000    0 

9.793,300    0 

9.846,300    0 

9,277,000   0 

Do.  on  railway  ahaiea 

30,820,600    0 

and  debentores      ... 

80,723.700    0 

80,769,800    0 

^1,185,200    0 

Do.  bythebaraDdhbanks 
Do.  on  Orrait  Foncier 

'    21,078,680    0 
668,000    0 

ai>22,080    0 

81.661,876    0 

ai;798,976    0 

bonds  

668^00    0 

'647.600    0 

687,600   0 

Do.  benches    ...       ... 

498,160    0 

609,160    0 

490,860    0 

463,650   0 

Do.  to  the  State  (Oon- 

mention  June  10, 18C7) 

GoveDpment  stodk  re- 

60,000,000    0 

60,000,000    0 

60,000,000  « 

60^000,000    0 

12,960,760  14 

18,980.760  14 

18,060.760  14 

U,080,760  14 

Dq.  dispoaable'." 
Bantea^SmobUIatea 

86,667,487  91 

36,646.487  91 

86,646,487  91 

80,546,487  91 

(lav  of  June  9. 1867) 
Hotel  and  ftmLOf  Bank, 

100,000,000    0 

100^000»000    0 

100,000,000    0 

100,000,000   0 

and  landed  property 

of  branches 

8,426,191    C 

1         8,484,423    0 

8.440,844   0 

^440.244   0 

Sxpenses  of  manage- 
metn    •»       ••• 

1,069,373  4c 

>         1.100,299  88 

1,146.606.68 

1.830^487  88 

BnndzleB...      

9.447.898  81 

\       1^362^669  73 

10,381.221  11 

9.675.006    1 

Total  ...       ... 

ll,606,669,616  89 

'  1.466,640,361  81 

\  1,457,747,318  86 

1.447.774,086  73 

Digitized  by  LnOOQ IC 


15J36 

FLUCTUATIONS  IN  ENGLISH  AND  FOREIGN  STOCKS  AND 
RAILWAY  SHARES. 


Aug.  28. 

Hiffhest 

LOWMi. 

Prices 

Sep.  roL 

Enolish  Funds. 

89^  to     i 

90| 

89} 

89|toJ 

Exchequer  Bills        

3/dis. 

2/pm. 

3/dis. 

3;dtoi;pm 

^    FoBBiOK  Stocks. 

Brazilian        

99 

99 

92 

921 

Buenos  Ayres            



87 

87 

87 

Chilian           

-. 

103 

103 

103 

Dutch  2}  per  cents 

61f 

62 

61| 

?* 

Mft-gififtn          •••         •••         ••• 

231 

26f 

231 

25} 

Peruvian  4)  per  cents. 

76 

74 

75 

Russian           •••        •••        ••• 

93| 

94i 

92 

92 

bpanisn           •••         •••         ••• 

47f 

m 

47 

47 

Turkish  6  per  cents. 

95| 

94 

95 

Ditto  4  per  cents. 

lOOi 

lOOi 

99} 

100 

Railway  Shabxs. 

Brighton         •••        •••        ••• 

104 

107 

*103i 

105{ 

Caledonian      

.. 

136 

129 

129^ 

Great  Eastern            

46 

491 

45|. 

48i 

Great  Northern         

1331 

136J 

133 

133} 

Great  Western           

66 

67J 

65} 

65i 

Lancashire  andTorkshire    ... 

119} 

122^ 

119i 

121i 

London  and  North  Western... 

126i 

1281 

124i 

124i 

Midland          

131J 

132} 

126i 

1261 

North  Staffordshire 

— 

77i 

761 

77 

South  Eastern           

80i 

83t 

79} 

81} 

South  Western          

99 

100 

96 

96 

York,  Newcastle,  and  Berwick 

112| 

113J 

llOJ 

111} 

York  and  North  Midland    ... 

1041 

106  J 

103} 

104 

103i 

104} 

103} 

104 

Northern  of  France 

— 

43i 

43 

43 

CREDIT,  FINANCE  AND  DISCOUNT  COMPANIES. 


Anatnlian  Morteage,  Land 

and  Finance  (Lini.) 
Oonaolidated  Discount  fLun.) 
Contract  Corporation  (lim.) 
Credit  Foncier  of  Manxitias 

(Limited)      

Credit  Foncier  and  MobiUer 

of  England 

Diaooont  Corporation  (LIm.) 
East  India  Financial 
Effrptian  Commercial   and 

Tn/d&ng      

Ihiglish  and  Foreign  Credit 
Financial  Discount  (Lim.)... 
General  Credit  and  Finance 

of  London  (Lim.) 

Intexnational         Financial 

Society  (Lim.)       

ntemattonal  Contract 


LoDdon 

L«^"« 

llum. 

Pidd. 

Utert 

shsiiL 

ML 

ii^ 

Pric«». 

PK> 

< 

< 

a 

A 

A 

i 

86 

8 

2i 

Imperial    ICeraantile  Credit 
(Lim.) 

60 

S 

'] 

60 

10 

6 

20 

• 

1 

100 

7} 

2} 

Joint  Stock  Discount  (Lim.) 
Land  Credit  of  Ireland       ... 

26 
60 

10 

s 

fi 

60 

10 

8 

Land  Securities         

London  Financial  Aasocia- 

60 

6 

I 

ao 

6 

H 

tion  (Lim.) 

60 

IS 

r» 

100 

20 

16 

London  MercantQe  Discount 

60 

10 

: 

60 

7} 

3i 

Manritius  Land,  Credit  and 

20 

4 

31 

Katumia  Discount  Co."(Luil) 

20 
26 

3 

'A 

It 

60 

7} 

6 

Oriental  Financial 

60 

10 

* 

60 

10 

6 

Ottoman  Financial  Aasocia* 

1 

tion  (lim.) ^ 

60 

IS 

f 

23 

4 

ei 

Orerend.  GwraeykCo.  (lim.) 
Bo<aM  Financtain  d'Egyptfe' 

60 

11 

:H 

20 

6 

6| 

(lim.) .^ 

20 

H> 

'4 

50 

10 

6 

South  AlHcan  Mortoaffe  and 
TnTeatmeat  (lim.). 

1 

60 

6 

I 

Warrant  Finance  (Urn.)    ... 

60 

M 

"i 

Digitized  by  LnOOQlC 


1237 


JOINT-STOCK  BANKS. 


Amh  and  Mastormon's, 
Limited        

Albion 

Alliance    Bank    of  London 

and  Liverpool,  limited  ... 

Ditto,  iasued  atSOpm. ... 

Angrlo  Aiuferian  Bank 

An^kKBgrptian  (Lim.)      ... 

Anirlo-Italian  (Lim.) 

Aaiatfc  Bamlring  Cknpofatlon, 
Now  BbareslBBaed  at  £16 
pm,  on  which  £1,  10<.  la 
paid     

Bank  of  AoBtralama 

Ditto,  New         

Bank  of  British  Coltunbia... 

Bank  of  Egypt 

Bank  of  London        

Bank  of  Otago  (Limited)    ... 

Bank  of  Qaeensland,  LumteQ 

British  Jt  C^iibniian  (Lim.) 

Bank  of  New  Zealand 

Bank  of  YictoriB,  Australia 

Barned's  Bank  (Lim.)    

Brazilian  ft  Portague6e(Lim.) 

Britiah  North  American     ... 

Chartered   Bank  of  India 
Australia  and  China 

Chartered  Mercantile  Bank 
of  India,  London  &  (]hina.. 

Ci^Bank        

Cotonial  Bank 

Commercial  Bank  of  Canada 

Commercial  Bank  of  Lidla 
and  leh^f  East         

Consolidated  Bank  (Idm.)  ... 

Continental     

Ditto,    New       

Delhi  and  London  Bank  (Lim.) 

East  London  (Lim.) 

Eastern  Xzofaange    ...       ... 

English  Joint  Stock  (lam.)... 

English,  Boottish  and  Aus- 
tralian Chartered  Q^nk  ... 

Bni^h  and  Swedish  (Lim.) 

European  Bank  (Limited)  ... 

Hindustan,  China  and  Japan, 


Ditto,  issued  at  Spm. 

IHttcvNew 

Imperial  (Limited) 

Imperial  Ottoman     

Ionian ...       .., 

Ionian,  New #« 


London 

Bhaia. 

Pall 

latosl 
Puces 

< 

< 

< 

SO 

25 

67 

60 

10 

7f 

100 

25 

81* 

100 

20 

25^ 

2Q 

6 

7 

60 

12» 

13i 

60 

15 

lU 

20 

6 

18 

40 

40 

76 

40 

40 

75 

20 

20 

2H 

25 

25 

3t) 

100 

60 

133i 

20 

B 

8 

100 

26 

21i 

60 

7* 

6 
10 

10 

10 

60 

26 

40 

60 

10 

10* 

20 

10 

4 

60 

60 

46 

20 

20 

261 

26 
100 

25 
60 

iSt 

100 

25 

42 

20 

20 

... 

25 

25 

29 

10 

4 

10 

100 

25 

100 

15 

... 

60 

26 

34 

60 

6 

6i 

20 

5 

4 

25 

10 

"i 

20 

20 

2\\ 

60 

20 

16 

60 

16 

12* 

100 

25 

20* 

100 

25 

21 

100 

20 

15 

100 

20 

30 

20 

10 

151 

25 

25 

26 

26 

5 

^ 

Land  Mortgage  Bk.  of  India 
London  Bank  of  Mexico  and 

South  America  (Limited) 
London   Bank   of  Scotland 

(Lim.)  

London  and  Brazilian  Bank 

Ditto,  Now 
London,  Baenoa  Ayros  and 

Biver  Plato,  Limited 
Ditto,  Newr,   issued    at 

London  (jhartered  of  Australia 

London  and  Countv  Bank  ... 

London  Joint  Stock  Bank  ... 

London  &  South  African  Bk. 

lA)ndou  and  South  Western 

(Limited)      

Ditio,  ditto,    New 

London  and  Venezuela  (Lim.) 

London  &  Westminister  Bank 

Merchant  Bank  (Limited)  ... 

Mercantile  Exchange  (Lim.) 

Metropolitan  and  Provincial 

Bank,  Limited        

Ditto,  New  

Midland  Bank  (Limited)    ... 

National  Bank 

Ditto,  New  

National  of  Liverpool  (lim.) 

National  Provincuil  Bank  of 

England       

Ditto,  2d  and  3d  issues ... 

New  South  Wales     

New  Zealand  Bank  Corpora- 
tion (Limited)       

Ditto,    New    

Northwestern  

Oriental  Bank 

Provincial  Banking  Corpo- 
ration  

Ditto,  ditto 

Provincial  Bank  of  Ireland... 
Ditto.  New  

Scinde.  Pu^jaub  and  Delhi 
(Limited)      

Ditto,  issued  at  2  pm. 

South  Australian 

Standard  of  Britiah  Afirica 

(Limited)      

Do.  New,  issued  at  6  pm. 

Union  Bank  of  Australia    ... 

Dnion  Bank  of  Ireland,  lim. 

Union  Bank  of  London 


London 

Shate 

Paid 

lat«rt 
Ptioes 

20 

4 

^ 

60 

15 

m 

100 

13 

llX) 

40 

45 

20 

2* 

3 

100 

40 

55 

25 

10 

11 

20 

20 

M 

60 

20 

77 

60 

16 

60i 

20 

20 

IS 

100 

20 

10 

100 

17i 

16 

60 

121 

10 

100 

20 

1-6 

100 

25 

27 

fiO 

10 

6i 

100 

20 

165 

100 

15 

104 

100 

20 

18 

60 

30 

60 

25 

100 

10 

io 

100 

43 

20 

12 

20 

20 

43 

10 

1 

i 

10 

1 

20 

7i 

n 

25 

25 

62 

60 

n 

4i 

60 

10 

7 

100 

25 

S%\ 

10 

10 

20 

10 

7 

20 

5 

25 

26 

35 

100 

25 

16 

100 

10 

5 

25 

25 

55 

100 

22 

17 

60 

15 

634 

TOL.  XXV. 


Digitized  by 


Goc^k 


Sanit  of  englatdi  WMd^  iUturnsL 

pazBuni  to  the  Act  nh  and  8th  of  ^otoriA,  0H».  S3,  fbr  the  We«ls  ending  M 
ISSUE  DKPABTMBNT. 


1866. 
Sept.  1. 

1966. 
Sept.  & 

1866. 
Sept.  15. 

1866. 
Sept  22. 

Noteeianed       ^       ...       ...       ... 

28,215,866 

£ 
28,072.140 

£                 £ 

27^60.400      27.901.80 

Other  aecorities  ...       ^       

Gold  coin  and  tmnion 

SilTerbnUiaa      ...       .'„       .!. 

11.015.100 
3,684.900 
12,665,866 

U,016,100 
8.654,900 
13,422,140 

11.015,100 
3.63^900 
13,330.400 

11,015.100 
S,6S1«(» 
1S,341,«S 

J8.,215,866 

27.950,400 

27.99U98i 

BANKING  DEPABTMENT. 


Pioprietoia'  capital      •••       ... 

PabUo'  depoaita  Oiieliidiat  MuSbtmer, 
9mting»  Banks,  OwnmiMinnwi  d  MaUonal 
Debt,  and  DlTldcBd  Aceomita) 

Other  Depoaita    

Seyen  dij- and  other  Ulla 


1866. 
Sept.  1. 


£ 
14,653,000 
3»60e,097 

6,004,786 

14,402.034 

534,621 


39.182.477 


1865. 
Septa. 


£ 
14^563,000 
3,739,107 

6,966,710 

14»207.996 

534^273 


39,020.085 


8epL16. 


£ 
14^663,000 
3^747,90 

6.S21.6M 

13,800^879 

664,606 


S9,0aM27 


B&pUtL 


£ 
3^8014^ 
6,82X99 

is,M7.sn 


TX* 


Goveniment    SecmitieB    (ind&ding 
Dead  Weight  Annoitiea)     ... 

Other  Secontiea ...       

Notea         

Gold  and  Silyer  coin    


10,384.209 

21,266.716 

6.617,805 

923.747 


10,384,209  '  10,38^200 

21.365.336  ■  21,243,500 

6^0.406  <  6,555,340 

900,135  '  855.170 


!flt29»^ 

21.SSt4» 

6,6rs.ti<» 

877,8^ 


39,182,477  '    39,020.085  I   39.098,237 


8»,2ff.4U 


THE  EXCHANGES, 


Sept.1. 

SeptwS. 

S^pCU. 

B^tL 

Amsterdam,  abort        

11    19 

11    19 

11    19 

u  m 

Ditto     3  months       

12     1 

12     1} 

12   n 

12     U 

Bottenlam,  ditto 

12     1 

12     U 

12     U 

Antwerp,  ditto 

25    57 

25    66 

26    65 

26   B 

Brossela,  ditto     

25    67 

26    56 

25    66 

26   15 

Bamborff,  ditto  ...       ...       ... 

13    10 

13    10 

13    10| 

If    10| 

Paris,  short 

26    26 

25    27i 

26    ^ 

26   27i 

Paris,  3  months 

26    47i 

25  47t 

26  47t 

25    471 

26   » 

MftTitffiiiiw,  ditto 

25    50 

26    50 

26   » 

Piankftyrt,  ditto  »—       ...       .m 

12U 

1211 
11    V\ 

11    27{ 

^l 

Yienna,  ditto       

11    26 

Trieste,  ditto 

U    26 

U    30 

U   171 

Petersbcnvh,  ditto        ... 

lCadrid,ditto      

Cadix,  ditto 

30 
47 
47 

S 

48 

Iieirhom,  ditto    ... 

26  m 

25    60 

26    60 

26    60 

26    681 

26  m 

25   «t 

25  ei 

Genoa,  ditto 

25    60 

26    00 

26    60 

26   C 

Nu>)ee,  ditto 

Palermo,  ditto     

Messina        

26    62i 

25  6H 

26  62, 

ii 

ii 

25  oat 

26  6t 

26   C 

Lisbon,  3  months          

61i 

514 
6lJ 

Si 

*M 

Oporto,  ditto 

«l 

511 

PBICES  OF  BULLION. 


Foroign  Gold  in  Bars  (Standard) 

Heziaan  Dollars 

surer  in  Ban  (Standard} 


PerOs. 
£  s.  d. 
3  17  9 
0  0  0 
0   6    Oi 


PerOa.    1 

£  s. 

d.     1 

3  17 

9 

0    0 

0 

0    0 

0 

u 

igitize 

FteOs.  '  PbtOs. 

£  s.d.  t  £  s.d. 

3  17    9  ,  3  17   9 

0    0   0  I  0   0  0 

0   0   0  I  0   0   0 

izetbyLnOOgle 


JPursuant  to  ike  Act  1  if  9  Fietoria^  c.  32;  extracted  fir<m  the  Lohdoit  Ginrra. 
PRIVATE    BANES. 


NAIOB  OF  BANK. 


1  AflfafordBank 

2  Aylesbury  Old  Bank.. 

3  Baldock  and  Biggleswade  Bank 
4.  Barnstaple  Bank 

5  Bedford  Bank 

6  Bicester  and  Oxfordshire  Bank 

7  Boston  Bank— Claypons  and  Co. 

8  Boston  Bank — Gee  and  Co 

9  Bridgewater  Bank 1.... 

10  Bristol  Bank 

11  Broselejr  and  Bridgnorth  Bank   ... 

12  Buckingham  Bank 

13  Bury  and  Suffolk  Bank 

14  Banbury  Bank    

15  Banbury  Old  Bank 

1 6  Bedfordshire  Leighton  Buzzard  Bk. 

17  Birmingham  Bk. — Lloyds&Co.  ... 

18  Brecon  Old  Bank  

19  Brighton  Union  Bank  

20  Burlington  and  DrifBeld  Bank 

21  Bury  St.  Edmund's  Bank 

22  Cambridge  Bk.— Mortlock  &  Co. 

23  Cambridge  and  Cambridgeshire  Bk. 

24  Canterbury  Bank  

25  Carmarthen  Bank 

26  ChertseyBank 

27  Colchester  Bank , 

28  Colchester  and  Essex  Bank 

29  Cornish  Bank— Tweedy  9c  Co.  ... 

30  CoTentryBank  

31  City  Bank,  Exeter 

32  CraTen  Bank — Alcocks  &  Co.   ... 

33  Chepstow  Old  Bank  

34  Derby  Bank — Messrs.  ETans&Co. 

35  Derby  Bank— Smith  and  Co , 

36  Derby  Old  Bank    

37  Denzes  and  Wiltshire  Bank    

38  Diss  Bank  

39  Doncaster  Bank  and  Retford  Bank 

40  Darlington  Bank 

41  DeTonport  Bank    ..•»«•«•••• 

42  Dorchester  Old  Bank    

43  East  Cornwall  Bk.— Robins  &  Co. 

44  East  Biding  Bank— Bower  &  Co. 

45  Essex  Bk.&  Bishop's  StortfordBk. 

46  Exeter  Bank 

47  Famham  Bank  •• 

48  FaTcrsham  Bank  

49  Godalming  Bank 

50  Guildford  Bank 

51  Grantham  Bank — ^Hardy  and  Co.. 

52  Hull  &  Kingston-upon-Uull  Bank 

53  Huntingdon  Town  &  County  Bank 

54  Harwich  Bank   

55  Hertfordshire,  Hitchin  Bank    

56  Ipswich  Bank. ••• 


£ 

11,849 
48461 

37,a»3 
17,182 
34,»x8 
27,090 

75,0^9 
15,161 
10,028 
48,277 
26,717 
29,657 
82,362 
43.457 
55.153 
36,829 
38,816 
68,271 
33.794 
ia.745 
3,201 

15,744 
49,916 

33.671 

a3,597 

3,436 

25,082 

48,704 
49,869 

12,045 
ai,5»7 
77;»54 

9.387 
13,33* 
41.304 
a7.a37 
*o,674 
10.657 
77.400 
86,218 
10,664 
48,807 
112,280 
53.39* 
69,637 
37.894 
14,202 

6,681 

6,322 
14.5M 
30,37* 
19,979 
56,591 

5,778 
38,764 
21,901 


\\                 AVBRAGK  AMOUNT 

Aug.  8. 

Aug.  15. 

Aug.  22. 

Aug.  29. 

£ 

£ 

£ 

10,132 

10,7*4 

11.538 

11,620 

"»935 

23,361 

*3.5i7 

*3,34i 

17,7*3 

18,151 

18,461 

19,644 

3,351 

3,*45 

3,173 

3,3*6 

39,675 

*9,3i9 

28,946 

28.672 

13,746 

13.850 

15,165 

14.7*3 

62,748 

63.679 

62,057 

63,583 

10,927 

10, 730 

10,662 

10,598 

6.847 

6,74« 

«,553 

6,465 

*o,595 

20,481 

19,905 

*o,377 

16,157 

15,817 

16,088 

'5'Z^i 

18,717 

18,7*6 

20,035 

19.848 

48,292 

50,73* 

50,9*1 

48,981 

25,382 

a6,44» 

*6,i59 

*5.6o5 

i7,*34 

17,17* 

17,307 

17,821 

36,059 

35.496 

35,216 

36,266 

*,173 

2,080 

2,027 

1.989 

43,*76 

42,806 

41,776 

4*, 174 

17.535 

17,354 

17,779 

17,170 

10,518 

10, 9*5 

10,847 

10,918 

3.005 

*,995 

*.858 

*,857 

ii»045 

10,451 

ii,3«3 

11,012 

39.011 

39,907 

39.957 

38,911 

30,112 

29, 560 

28,815 

*8,330 

13,627 

13,854 

14,31* 

14,634 

*.395 

*,3** 

1,507 

*,557 

17,144 

17,040 

16, 961 

16,108 

*9.039 

*9,4*3 

*9,8o5 

28,581 

24,462 

24,010 

23,290 

11,807 

4,865 

4,697 

4,743 

4,433 

14.159 

14.615 

14,637 

14,654 

66, $6$ 

67,461 

68,939 

69,224. 

7.590 

7,673 

7,779 

7,590 

9,292 

8,816 

8,369 

8,137 

*3»305 

*4.785 

*4,*59 

*5, 34* 

*5.955 

26,057 

26,382 

15»9*9 

6,590 

7,024 

7,1*9 

7,»*7 

10,19* 

9.906 

10,368 

9,988 

66,678 

68,623 

68,291 

65,736 

78,546 

79,698 

79,8*3 

79.282 

6,750 

6,414 

5,995 

5,980 

37,983 

37,716 

38,102 

39,853 

75,083 

74,464 

73,490 

74,170 

5»,i«7 

50,550 

50,9*9 

5i,*3a 

38,261 

38,922 

38,570 

38,079 

ai,747 

22,250 

21,029 

10,170 

6,006 

6,241 

5,99* 

5.870 

.«5i957 

5.907 

5,840 

5.*6o 

4,6*4 

4,902 

4,730 

5,025 

9,947 

10,4*5 

10,4*7 

10,706 

*»,5*7 

ao,9o5 

19,94* 

20,581 

*i,4*i 

18,751 

17,695 

16,628 

30,50* 

31.347 

31,575 

31,550 

5,343 

5.160 

4,965 

4.971 

3*,644 

3*.858 

33,45* 

32,269 

17,593 

18,156 

17,195 

16, 799 

Digitized  by  LjOOQIC 


1240 


WEBKLT  &BTURN8   Of   BAKES  OV  IMUB. 


NAME  OF  BANK. 


£ 

57  Ipswich  &  Keedham  MaricetBank  80,699 

58  Kentish  Bank— Mercer  &  Co.  ...  19,895 

59  Bangton  and  Radnorshire  Bank...  26,050 

60  Knaresborough  Old  Bank  %  11^25 

61  Kendal  Bank    44,663 

62  Longton  Staffordshire  Bank 5,624 

63  Leeds  Bank 53057 

64  Leeds  Union  Bank 37,459 

65  Leicester  Bank , 32,322 

6S  Lewes  Old  Bank 44,836 

67  Lincoln  Bank  100,342 

68  Llandorerjr  Bank&  LlandiloBank  32,945 

69  Loughborough  Bank  7,359 

70  Lymington  Bank 5,038 

11  Ljnnl^gisandLincolnshireBank  42,81 

72  Lynn  Regis  and  Norfolk  Bank  ...  13,917 

73  Macclesfield  Bank  15,760 

74  Manningtree  Bank  7,692 

75  Merionethshire  Bank  10,906 

76  Miners' Bank   18,688 

77  Monmouthshire  Agricultural  and 

Commercial  Bank 29,335 

78  Monmouth  Old  Bank 16,385 

79  Newark  Bank  28,788 

80  Newark  and  Sleaford  Bank  S^%^^S 

8 1  Newbury  Bank , 36,787 

8»  Newmarket  Bank , 23*098 

83  Norwich  Crown  Bank  and  Norfolk 

and  Suffolk  Bank 49,671 

84  Norwich  and  Norfolk  Bank  105,519 

85  Nottingham  &Nottingham8h.Bk.  10^866 

86  Nayal  Bank,  Plymouth  27,321 

87  NewSarumBk.— Finckneys,Bros.  15,659 

88  Nottingham  Bank   31,047 

89  Oswestry  Bank    : 18,471 

90  Oxford  Old  Bank 34,391 

91  Old  Bank,  Tonbridge 13,183 

92  Oxfordshire  Witney  Bank  ., » 1,852 

93  Pease's  Old  Bank,  HuU 48,807 

94  Penzance  Bank    >ii405 

95  Pembrokeshire  Bank 12,910 

96  ReadingBank — Simonds  &Co....  37,519 

97  Reading  Hk.—-stephent,BIuidj Ik  Co.  43«27i 

98  Richmond  Bank,  Yorkshire   6,889 

99  Rochdale  Bank    ,  5,590 

100  RoystonBank  16,393 

101  Rugby  Bank 17,250 

102  Rye  Bank 29,864 

103  Saffron  Waldcn&NorthEsscxBk.  47.646 

104  Salop  Bank  22,338 

105  Scarborough  Old  Bank  24,813 

106  Shrewsbury  Old  Bank 43*191 

107  Sittingbonme  and  Milton  Bank...  4.789 
to8  Southampton  Town  &  County  Bk.  18,589 

109  Southwell  Bank i4,744 

110  Southampton  and  Hampshire  Bk.  6,770 

111  Stafford  Old  Bank  14,166 

1 12  Stamford  and  Rutland  Bank 3 1,858 

113  Shrewsbury  and  Welsh  Pool  Bank  25,336 

114  Taunton  Bank ^.  49,799 

i»5  TariftockBank 13^21 


ATEBAGB  AMOUNT. 


Ang.  d.    i  Aug.  16.  I  Aug.  S.  |  Aog.  S. 


£ 
51,823 

»2,475 
«7,303 
17.927 
36,065 

5.078 

5^739 
37.213 
2i,c88 
28,070 
79.383 
15.739 
6,400 
a,  990 
29,416 

11.375 
12,697 

5.373 

5.514 

17.812 

26,749 
4,609 
19.797 
39.^57 
13,865 
16,118 

44.5^3 

73.733 

7.703 

22,235 

7,084 

11.054 

".775 

33.5»8 

9.160 

8,870 

44.723 

8,492 

8,201 

25,162 

26,805 

6,045 

1,909 

9.583 

8,840 

10,690 

20,072 

9.030 

20,296 

29.655 

3.455 

8,690 

8,672 

2,127 

12,105 

14.543 
20,295 

19.501 
10,267 


£ 

51.875 
12,420 
18,825 
«7.574 
36,917 
4,893 
53.974 
36,936 

21, 008 
27,248 

79.814 
16,229 

6,271 

3.003 

29.406 

11.187 

12,638 

5.370 

5.328 

18,150 

28,013 
4.322 
20,789 
40,121 
13.785 

'5»5»» 

45.433 

74,328 

8,117 

22,470 

6,751 
22,366 

11,290 

33.366 

9.435 

8,997 

45. 390 

10,326 

8.785 

25.614 

27,301 

5,833 

1,585 

9,082 

8,851 

10,490 

20,458 

8,570 

20,003 

28,354 

3,476 

8,893 

8.557 

a, 060 

10,889 

14,669 

19.978 
ao,o27 

9.599 


X       1 
51,10s  I 

12,431 
19,579 
«7»588 
36,575 

4,825 
53,615 
37, 3H 
21,410 
27,406  1 
79.418 
18,548 

6»iSo  I 

2,985 
29*580  1 
11.675  I 
12,565  i 
5.290 
6,114 
»8,753 

28,129 
4,06a 

'W>,337 
40,106 

13,238 
«5,i9* 

46,025 

71,630 

8,067 

21,424 

6,6ot 

22,645 

11,177 

3*,  387 

9,029 

8,667 

44,725 

9,658 

9,292 

26,386 

26,196 

5.385 

1,564 

8,776 

8,833 
10,070 

20, 333 

8,636 

19,715 
27,688 

3,230 

8,745 
8,626 

1,944 

9.906 
15,518 
18.969 
ao,37« 


£ 
50,639 

12,J11 
19,361 

»7,7i6 

36,674 

5»ic6 

21,848 

27,Sfc 

76,570 
20,504 

6,I«9 

2,^0 
28,230 
11, 60 

i2,745 
5.5H 
6.3^^ 

19,645 

27,420 

4.24^ 
19.T5^ 
40.4:9 
12.540 
14,836 

45. '06 

71, 32* 

7,812 

21,450 

23,00s 

10,589 

31.6S5 

8.663 

8,319 

42.930 

8,955 

*.99* 

25,442 

26,130 

5.226 

1,427 

8,734 

8,7C5 

9,777 

19,859 

8,713 

19,936 

27,457 

3,i3» 

8,595 

8,<56 

1,758 

10.79* 

15,631 

19.475 

20,457 

9,497 


WEEKLY  BBTU&NS  OF  BANKS  OF    ISIUB. 


1241 


NAKB  07  BANK. 


E  6  Thornbury  Bank... 

X  y  TiTerton  and  Deronshire  Bank .. 
1 8  Thrapstone  and  Kettering  Bank, 
X  9  Tring  Bank  and  Chesham  Bank.. 

20  TowcMter  Old  Bank  , 

2 1  Union  Bank,  Cornwall  

2  2  Uxbridge  Old  Bank    

2  3  Wallingford  Bank   

:  24.  Warwick  and  Warwickshire  Bank 

2  ^  Wellington  Bank,  Somerset  

[  26  West  Riding  Bank 

127  Whitby  Old  Bank   

128  Winchester,  Alresford  &AltonBk. 

129  Weymonth  Old  Bank 

130  Wirkflworth  and  Derbyshire  Bk. 

131  Wisbeach  and  Lincolnshire  Bank 
13a  Wireliscombe Bank 

133  Worcester  Old  Bank  

1 34  Wolrerham.  Bk.— R.  &  W. Fryer 

135  Yarmonth  and  Suffolk  Bank .. 

136  Tarmonth,  Norfolk,  &;  Suffolk  Bk. 

137  York  Bank  


Anthor- 
iMd 
iBsae. 


£ 

10,026 
X  3.470 
".559 
13.531 
10,801 
17,003 
25,136 
17,064 

30,504 
6,528 

46.158 

14,258 
25.89* 
16,461 
37,602 

59,713 
7,602 

87,448 
11,867 
53,060 
13.229 
46,387 


AYEBAGB  AH0T7NT. 


Aug.  8.      Aug.  16.     Aug.  22.     An^.  29. 


£ 

7,874 

9,751 

11,544 

13,686 

5,731 
12,733 

8,287 

6,ft98 
17,585 

4.914 
37,851 
13,390 
11,691 
16,90a 
35.729 
33,230 

4,039 
46,023 

8,205 
34,741 

8,539 
33,411 


£ 

7,749 

9,727 
11,786 
13,546 

6,110 
13,819 

8,064 

6,313 
17,118 

5|0'2 

37,511 
13,485 

12,379 
16,411 

35,333 

35,357 

3,746 

45,310 

8,008 

8,8;8 

34,4»9 
35,262 


JOINT  STOCK  BANKS. 


2 
3 
4 
5 
6 

7 


Bank  of  Westmorland  „ 

Bamslej  Banking  Company 
Bradford  Banking  Company 
Bilston  Dittriet  &nking  Company 
Bank  of  Whitehaven 
Bradford  Commercial  Banking  Co. 
Barton  ,Uttoz6ter  ,and  Stafforwire 
Union  Banking?  Co. 

8  (;heflterfield&K.Derby8h.Bk.Co. 

9  Gnmberland  Union  Banking  Co. 
t  o  CoTontry  and  Warwickshire  Bk.  Co. 

1 1  Coventry  Union  Banking  Company 

1 2  Coonty  of  Gloucester  Banking  Co. 

1 3  Carlisle  &  Camberlan  d  BankingCo. 

14  Carlisle  City  and  District  Bank  ... 

15  Dudley  Bt  West  Bromwich  Bk.  Co. 

1 6  Derby  and  Derbyshire  Banking  Co. 

17  Darlington  Dist.JointStockBk.Co. 

18  Gloucestershire  Banking  Company 

19  Halifax  Joint  Stock  Bank 

20  Hoddersfield  Banking  Company.. 

21  Hall  Banking  Comnany   

22  Halifax  CommercisLl  Banking  Co. 

23  Halifax  &  Hnddersfield  Union  Bk. 

24  Helston  Banking  Company 

25  Knaresboroagh  and  Claro  Bk.  Co. 

26  Lancaster  Banking  Company 


27  Leicestershire  Banking  Company... 

28  Lincoln  and  Lindsey  Banking  Co.. 

29  Leamington  Priors  and  Warwick- 

shi^  Banking  Co.  ..•• 

30  Ludlow  and  Tenbary  Bank 

3 1  Moore  &  Bobinson's  NotU.  Bank... 
3  2  NoUingham and  Notts. BankineCo. 
33  NationalProTincialBk.  of  England 
H  17onh  Wilts  Banking  Company 


12,225 
9,563 

49.292 
9,418 

32,681 

20,084 

60,701 
10,42  J 
35,395 
28,734 
16,251 

«44,35» 
25,610 

19,972 
37,696 
20,093 
26,134 
155.920 
18,534 
37,354 
29,333 
13,733 
44-137 
1,503 
28,059 
64,311 
86,060 
51,620 

13.875 
10,215 

35,813 

29,477 

H*»37i 

63,939 


10,156 
9.1*4 

47,439 
7,873 

27,515 

19,855 

38,662 
9,126 

33,401 
15,447 
10,504 
98,243 
26,433 
19,248 

26,763 
17,425 
22,491 
137,561 
19,325 
34,608 
25.970 
12,943 
40,470 
1,498 
24,300 
51,827 
51,079 
46.409 

8,368 

8,570 

32,310 

24,550 

4i7,"5 

4a,35* 


9,834 

9,275 

47,614 

8,51* 

27,7.'>o 

20,668 

38,73* 
8,952 
34,360 
15,652 
10,818 
97,169 
25,697 
19,873 
26,528 
17,000 
23,307 
139,289 

17,491 
31,977 
28,110 

12,994 
39,900 

i,5«5 
23,405 

5»»995 
48,839 
47,415 

8,715 

8,650 

34,082 

24,909 

415,435 

4*1589 

Dig 


£ 

8,331 
9,264 

11,28a 

11,466 
6,483 

14,299 
8,133 
5.83a 

16,810 

4,691 
37,064 

i3,»9o 
11.712 
16,117 
34,115 
34,976 

3,590 
44,716 

9,330 
34,393 

8,312 
35**63 


9,997 
9,208 

49,025 

8,360 

28,05a 

19,775 

39,387 
9,010 
35,416 
15,710 
10,956 
97,145 
24,769 
19,866 

27,185 
17,445 
24,215 
136,445 
17,795 
31,839 
27,993 
11,895 
40,252 
1,512 
23,208 
52,184 
48,36a 
48,928 

8.50a 

8,820 

32,390 

a4,43* 

417,04a 

4a, 678 


tized  by  ^ 


£ 

8,055 

9,415 

n,3ox 

12,69a 

6,367 
13,366 

8,44a 

5,575 
17,529 

4,168 

38,335 
13,450 
11,005 

15,433 
34,003 
34,340 

3,875 
44,449 

9,654 
34,853 
71,715 
35,186 


9,850 

9,3*4 
50,805 

8,864 
27,660 
19,838 

39,69a 
8,64 
34,690 
15,710 
11,237 
98,880 

25,131 
19,801 

a7,558 
17,285 

23,9*4 
138,655 

17,530 
32,728 

27,798 
12,806 
41,815 
1,475 
24,309 
53,120 
49,o6t 
47,060 

8,828 

8,683 

29,257 

a4,45i 

419, 309 

43,471 

e 


Lribogk 


1242 


WBXiLLT  BBTt7BNS  OP  BANKS  OF    I861JB. 


NAME  OF  BANK, 


35  Nortbamptonshire  Union  Bank 

36  Northamptonshire  Banking  Co. 

37  North  and  South  Wales  Bank.. 

38  Fare's  Leicestershire  Banking  Go... 

39  Saddleworth  Banking  Company  .. 

40  Sheffield  Banking  Company 

41  Stamford,  Spalding  &BostonBk.Co 

42  Stnckej's  Bianking  Company  

43  Shropshire  Banking  Company 

44  Stonrbridge  and  Kidderminster  Bk. 

45  Sheffield  and  Hallamsbire  Bank  ... 

46  Sheffield  &BotherhamJt.StockBk. 

47  Swaledale  and  Wensleydale  Bank. 

48  Wolverhampton  &  Stafford  sh.  Bk. 

49  Wakefield  and  Bamsler  Union  Bk. 

50  Whitehayen  Joint  Stock  Bank    ... 

51  Warwick  and  Leamington  Bk.  Co. 
5  s  West  of  £ng.&  S.Wales  DistrictBk. 

53  Wilts  &  Dorset  Banking  Coinpany 

54  West  Biding  Union  Banking  Co.... 

55  Whitchurch  and  Ellesmere  Bk.  Ca 

56  Worcester  City  and  County  Bk.  Co. 

57  York  Union  Banking  Company  ... 

58  York  City  and  County  Banking  Co. 

59  Yorkshire  Banking  Company  ... 


Author- 
ised 
Issae. 


£ 
84,356 
26,401 

63.95' 

59.300 

8,122 

35.843 
55.721 
356,976 
47.951 
56,830 
a3.5a4 
5M96 
54,37a 
35.378 
14,604 
31,916 
37,124 

83,535 
76,162 
34.029 

7.475 

6,848 

71,240 

94.695 
122,532 


AVERAGE  AMOXJVT. 


Aug.  8.     Aug.  IS.     Aug.  82.     Ab«.  ». 


£ 

61,315 
20, 149 
55,765 
51,423 
335 
35.834 
41,755 
288,515 
37,828 
50,316 
23.884 
5»,99o 
44,538 
23,835 
13,803 
22,365 

23,953 

78,714 

75, 109 

33,008 

4,003 

5.4«6 

69,767 

85,075 

121,816 


£ 

61,370 

20,790 
55,022 

51,771 
335 
35.865 
41,510 
291,010 
39,756 
50,481 
23,900 
53,172 
43,618 
22,868 

14,354 

22,843 

23,702 

79,596 

77,315 

32,249 

4»a56 

5,i2T 

69,934 

84,883 

119,636 


£ 
62,167 
20,481 

55 » 541 
49  f  946 

335 

35.^02 

41.452 
291,148 

39.575 
51.162 
23,081 
52.339 

43,492 
23,210 

14t229 

23.576 
24.441 
83.093 

76.808 

33.^55 

4.4»o 

5.017 

70,195 

84,51a 

1x1,665 


X 
61  if 9- 
l9.6ii 
57.64* 
49,^5* 
355 
34.^; 
'  40, lit 

1191.599 

I  41.C14 

I  49,"» 

2i.;4o 

I  5»»ii4 

42.:5v 
23.573 

14,6«5 
23,4fi* 

84,iio 

74.4:5 

33. fe? 

4.^5 

4,6ci 

70.5'5 

«4.3S3 

121, Tff 


irisf)  aitb  i^tottb  Cirnilation  iUtunu^ 

Average  Circulation,  and  Coin  held  hy  the  Ibisb  and  Scotch  Baxkb  dmrimgde  fi*r 
weeks  ending  Saturday ,  the  I9th  day  qf  August^  1865. 

IRISH   BANKS. 


KAMI  or  BANK. 


Bank  of  Ireland 

Provincial  Bank  of  Ireland! 

Belfast  Bank   

Northern  Bank  , 

Ulster  Bank , 

The  National  Bank 

Totals  (Irish  Banks) 


Antborlsed 
CircvUtioB. 


£ 
3,738,428 
927,667 
281,61 
243,440 
311,079 
852,269 

•IK  354,4941 


Avsng*  CirenlalloB  4uiBf  9vmx  Wscks 
cadiBf  «•  abov*. 


^5  and 
spwardt. 


£ 
1,509,100 
389,043 
128,230 
101,909 
157,163 
59<»o9i 


2,«70,536    2,7J»7,477 


£ 

990,425 
460,278 
287,236 
236,786 
274,452 
538.300 


TMiL 


£ 

523»9^r 
4ca,o^i 
212,13" 
i85,-cc 
163,924 

SS4''9Cl 

5,664,OUi2,0«^i«»4 


£ 

2,499.525 
849,321 
4«5,466 

338,695 

431,615 

1,129,291 


Bank  of  Scotland 

Royal  Bank  of  Scotland    ... 

witish  Linen  Coinpany  .... 

Commercial  Bk.  of  Scotland 

National  Bonk  of  Scotland.. 

Union  Bank  of  Scotland    ...I 

Wowwr°c'^''T°  *"^  Co.  Bk. 
North  of  Scotland  Bk.  Co... 

Clydesdale  Banking  Co.       I 

City  of  Qlaagow  Bank  ... 

S**«^*>?^n  Banking  Co.      ' 

CentralBank  of  Scotland   : 

ToTAi.B(ScoichBaiik.>. 


SCOTCH   BANKS. 


300,485 
216,451 
438,024 
374,88c 
297,024 
454,346 
70,133 
154.319 
274,321 

72,921 

53,434 
42,933 


2,749.271 


177,681 
193,272 
183,036 
193,850 
165,773 
198,394 
59,332 
99,096 

140,175 
135.120 

24,375 
24.435 


320.053 

335.453 
314,916 
360, 776 

307,959 

382,747 

78,888 

111,053 

237,972 

219,884 

48,310 

37.116 


497.734 
528,725 
497,953 
554.626 

473,733 
581,141 
138*220 
210,150 
378,147 
355.004 
72.685 

61.551 


2li.i-3 

36r.r« 

275.*'3 

291,  ?r 

133. 3« 

241. 25^ 

76,»>4 

76.25' 

163.S' 

22;,jij 

J*o-4 

18. i«- 


1.594,539   2,755.1*7  14.349,669  t«.394.*i* 

Digitized  by  LnOOQlC 


CIRCULATION  RETURNS. 


1243 


SUMMARY  OF  WEEKLY  RETURNS  OF  BANKS  OF  ISSUE. 


7  Priyate  Banks 

9  Joint-Stock  Banks  ... 


Fixed  lasnes. 
3,226,257 


Totals.. 


7,415.408 


Joly  29.    I   AogOBt  6. 
£2,843.426  £2,859,084 


1,740.591 


3,584,017 


»,745.4H 


Angasi  12. 

^*,845,75o 

2,750,628 


5,604,498 


Angtut  19. 

£2,824,266 

»,756.«78 


5.59^.378 


5,580,444 


^9  WeeUj  OiroolAtlon  of  these  Banks  for 

crionth  ending  Aogost  IQth  :— 

^aue  Banks      £2,843,131 

it>-Stock  Banks        2,748,203 

rag«  Weekly  Cironlation  of  Private 
xd  Joint-Stook  Banks  ending  as 

:Kyr9       £6,691,334 

n  a  oompariBon  of  the  above  with  the  Returns 
J^e  month  ending  July  22nd  last,  it  shows  i— 
i^crta—  in  the  notes  of  Private 

BXfcks,  of. 

'.^rrvoM  in  the  notes  cfJoint^took 
.anka,of...        10,969 


otal  dwermu  on  the  month ... 


£49,921 


And  as  Gompared  with  the  month  ending 
Aofost  20th,  186^  it  shows :— 
A  (U»'MM  in  the  notes  of  Private 

Banks,  of £176,446 

KdecreoM  in  the  notes  of  Joint-Stook 

Banks,  of 70,474 

Total  dtereate,  as  compared  with  the 

same  period  of  last  year       £246,919 

The  following  is  the  comparative  state  of  the 

circolation  as  regards  the  fixed  iasnes : — 

The  Private  Banks  are  h«low  their 
fixed  issaes        .£1,346,020 

The  Joint-Stock  Banks  are  Ulow  their 
fixed  issues ...      478,064 


Total  BiLOW  their  ilxed  issaes 


.£1,824^074 


SUMMARY  OF  IRISH  &  SCOTCH  RETURNS  TO  AUGUST  19.  1866. 


lx.e  Betoms  of  Circolation  of  the  Irish  and 
3tch  Banks  for  the  four  weeks  ending  August 
h  when  added  together,  give  the  following  as 
^  average  weekly  dronlation  of  these  Banks 
rintr  the  past  month,  vis. : 
crageCireolalionofthe  Irish  Banks  £5,664,013 
erage  Circulation  of  the  Scotch  Banks  4^340,660 

tal  AverageCircnlation  of  these  banks 

>jr  the  past  month    £10,013,682 

Dn  comparing  these  amounts  with  the  Betuma 
•  the  month  ending  22nd  July  last,  they  show— 
•creaaeintheOircdiationof  Irish  Banks  £64,414 
tcreaseiniheCironlationof  BcotchBanks  22,068 

Total  deerease  on  tha  month  £76,482 

And   as  compared  with  the  month  ending 
:igust  20th,  1864,  th^  show— 
LcreaseinttieCirculationof  IrishBanks  £466.045 
crease  intheCircolationof  Scotch  Banksl63,323 


Total  increase  on  the  year. 


.  £609,368 


The  fixed  issues  of  the  Irish  and  Scotch  Banks 
at  the  present  time  are  given  in  the  Banking 
Almanae,  as  follows:— 

6  Banks inIreIand,aUowedto issue...  £6,364,494 
12  Banks  in  Scotland,  allowed  toissue     2,749,271 

18  Banks  in  aU,  allowed  to  issue   £9,103,765 

The  following  appears,  therefore,  to  be  the 
comparative  state  or  the  circulation:— 
Irish  Banks  are  bek>w  their  fixed  issue     £690,481 
ScotchBanks  are  above  their  flxedissue  1,000,398 

Total  above  the  fixed  issue £909,917 

The  amounts  of  Gold  and  Silver  held  at  the 
head  offices  of  the  several  banks,  during  the  pasi 
month,  have  been  as  follows : — 
Gold  and  SUverheld  bythe  Irish  Banks  £2,040,184 
GoldandSilverheldbytheScotohBanks  2,39^666 

Total  of  Gold  and  SUyer  Coin. £4,434,841) 

Being  a  decrease  of  £88,269  on  the  partof  the 
Irish  Banks,  and  a  decrease  of  £13,636  on  the 
part  of  the  Scotch  Banks,  on  the  several  amounts 
add  by  them  during  the  preceding  month. 


CIRCULATION  OF  THE  UNITED  KINGDOM  TO  AUGUST  19, 1865. 

The  following  is  the  state  of  the  Note  Oiroulation  of  the  United  Kingdom  for  the  month  ending 
0  19th  August,  1866:— 
iculataon  of  Notes  for  the  Month  ending  19th  August,  as  compared  with  the  previous  month  :— 


uak  of  Kt^e^^"*^  (month  ending  Aug.  16) 

ivate  Banks 

iint-Stock  Banks 


3talin 
sotland 

«UuLd 


July  22. 
£2U»3,647 
2,882,093 
2.760.162 


27,634,802 
4,371,737 
6.718,427 


August  19. 
£22,178,744 
2,848,131 
2.748.203 


27.770,078 
4,340,669 
6,664.013 


Increase. 
£186,197 


Decrease. 


10.969 


49,921 
22,068 
64^414 


TTnited  Kingdom £37.724,966       £37.783.760  185.197  126,403 

The  comparison  of  the  month  ending  August  20th,  1664,  with  the  month  ending  August  19th,  1866, 
lowB  an  imarm»e  in  the  Bank  of  England  circulation  of  £688,089.  a  dseraoM  in  IVivate  Banks  of 
176,416,  and  a  dtcMtue  in  Joint-Stock  Banks  of  £70,474 ;  being  a  total  ituretu*  in  England  of  £446.170 ; 
Uilo  in  Scotland  there  is  an  iner§a$«  of  £163,823;  and  in  Ireland  an  inertate  of  £466,046.  Thus 
:towiii(F  that  the  month  ending  19th  August,  as  compared  with  the  same  period  last  year,  presents  an 
icreoM  of  £446,170  in  England,  and  an  mctmm  of  £1,066,638  in  the  United  Kingdom, 

The  retain  of  Bullion  in  the  Bank  of  England,  for  the  month  ending  August  16th,  gives  an 
Rgrej^ate  amount  in  both  departments  of  £14,341.312.  On  a  comparison  of  this  with  the  Return  for 
!ie  month  ending  July  19th,  there  appears  to  be  a  deereate  of  £1.433,377 ;  and  an  inenau  of  £1.638.862 
ft  compared  witn  the  same  period  last  year. 

r  The  stodk  of  specie  held  by  the  Banks  in  Scotland  and  Ireland  during  the  month  ending  19th 
■1^  was  £A484,840 ;  belmr  a  deortau  of  £61,896  as  compared  with  the  Betom  of  the  prtvioos 
Bth,  asd  an  MerMM  Of  £267,664  aa  compared  wish  the  oorraBpondiiigpviod  last  year  :,OOQl€ 


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Wtk^w  M  9mm,  Prtn»«,  c«p«urr  BWl.  Lp«ioa  W.lL'^^^^gl^ 


THE  BANKERS'  MAGAZINE, 

AMD 


NOYEMBEB,  1865. 


ADMINISTRATION  OF  BANKBUPTOT. 

Me.  Moffatt  has  established  a  claim  to  the  gratitude  of  the 
commercial  community  by  the  carefully  prepared  paper  on  the 
working  of  the  existing  law  of  bankruptcy,  which  he  read  at  the 
recent  meeting  of  the  Social  Science  Association.  The  evils  of 
which  the  honourable  member  for  Southampton  complains,  have 
indeed  been  long  felt  and  universally  lamented  by  those  who 
have  had  the  evil  hap  to  be  personally  interested  in  the  realisa- 
tion of  a  bankrupt  estate.  The  proportion  of  legal  and  o£Blcial 
charges  to  the  simi  realised,  is  an  old  grievance  which  is  in  some 
degree  inseparable  from  the  operation  of  winding  up  a  sus- 
pended  and  confessedly  insolvent  concern,  by  persons,  many  of 
whom  have  no  direct  interest  in  a  good  dividend.  But  it  i&  not 
of  this  that  the  mercantile  public  have  most  reason  to  be  appre- 
hensive. Our  great  danger  arises  from  the  facilities  for  fraud 
which  recent  alterations  in  the  law  give ;  from  the  means  of 
baffling  creditors  which  they  provide,  and  from  the  frightful 
extent  to  which  these  two  causes  appear  to  be  sapping  the 
foundations  of  mercantile  morality,  and  making  bankruptcy 
rather  the  "correct  thing"  for  any  trader  who  finds  a  difficulty  in 
getting  on.  No  one  would  desire  to  copy  the  Roman  jurists  in 
making  the  bankrupt's  jperson,  as  yell  as  his  property,  an  avail- 
able asset.  Few,  very  few,  would  ask  for  the  power  to  subject 
the  debtor  to  protracted,  or  indeed  to  any  incarceration,  in  the 
absence  of  fraud,  or  such  recklessness  as  almost  amounts  to  it. 
Even  among  creditors,  there  is  considerable  difference  of  opinion 
as  to  whether  the  right  to  go  against  affcer-acquired  property, 
should,  in  all  cases,  be  given.  But  no  one,  except  those  who 
VOL.  XXV.  95 


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1246  Administration  cf  Bankruptcy. 

benefit  by  it^  can  refrain  from  deprecating  the  continuance  of  a 
system  which  seems  to  make  integrity  a  folly,  by  holding  oat 
unlimited  inducements  to  knavery. 

That  the  code  established  by  the  Act  of  1861  has  this  effect^ 
is  abundantly  evident  from  a  comparison  of  last  year's  bank- 
ruptcy business  with  that  of  its  immediate  predecessors.  Making 
every  allowance  for  local  disaaters,  such  as  the  cotton  famine, 
and  for  exceptional  causes,  such  as  the  recent  joint-stock  mania, 
it  is  incontestibly  true  that  the  country,  during  that  period,  has 
enjoyed  a  very  considerable  amount  of  prosperity.  Yet,  since 
Lord  Westbury's  Bill  became  law  the  number  oi  bankruptdes 
has  been  multiplied  tenfold.  We  grant  that  the  abolition  of 
insolvency  will  account  for  a  great  part  of  this  increase^  but  the 
same  remark  will  not  apply  to  the  amount  of  assets  realised. 
In  1863,  the  sum  of  £699,000  was  realised  under  bankruptcies. 
In  1864,  about  £677,000  was  obtained  from  7,224  bankruptcies. 
Out  of  these  sums,  the  officials  netted  £100,000  in  the  lir^ 
year,  and  £140,000  in  the  second.  What  the  creditors  got  may 
be  imagined  from  the  fact  that  in  6,600  caaes  oat  of  tlie  7^24 
the  petitions  were  filed  by  the  bankrupts  themselyes :  and  that 
5,324  of  these  estates  paid  no  dividend  at  aU,  while  848  othen 
yielded  less  th^  haK*a^rown  in  the  pound.  Yet  <mly  80  oat 
of  the  entire  number  (a  trifle  over  one  per  cent,  of  ii^eae  pay- 
nothing  peoplej  failed  to  obt-ain  their  discharge  from  the  Com- 
missioners. Il  it  be  asked  why  nearly  7,000  men  should  pro- 
claim their  own  insolvency  in  a  single  year,  we  are  afraid  the 
reason  must  be  found  in  the  state  of  the  law.  If  a  man  commits 
an  aot  of  bankruptcy  (such  as  keeping  house,  going  abroad  to 
evade  his  creditors,  or  executing  a  biU  of  sale),  and  lua  creditors 
make  him  bankrupt  within  three  months,  the  title  of  the  assi^- 
ees  relates  back  to  the  original  Act,  and  all  those  questionable 
transfers  of  property  which  so  commonly  precede  an  appear- 
ance in  the  ^*  Gazette'^  are,  or  may  be,  invalidated.  But  if  he  takes 
the  initiative  and  makes  himself  bankrupt,  their  title  only  dates 
from  the  day  of  the  petition,  because  his  going  into  court  is 
supposed  to  be  an  entirely  voluntary  act  on  his  part.  Thb 
reasoning,  the  fruit  of  legal  ingenuity,  accounts  in  the  most 
natural,  though  not  in  the  most  satasfactory  manner,  for  the 
alacrity  of  debtors  to  seek,  the  friendly  shelter  of  Bannghall 
Street  at  the  rate  of  about  twenty-three  per  working  day. 

It  may  be  thought  that  these  figures  are  sufficiently  portent- 
ous. But  our  insight  into  the  business  of  insolvency  will  be 
lamentably  incomplete  if  we  confine  ourselves  to  the  reguLir 
and  f ormsd  issue  of  fiata  by  bankruptcy  oammiasioitterB.  By  i^r 
the  greater  part  of  such  business  is  now  done  by  deeds  of  inspeo- 


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Administration  of  Bankruptcy,  1247 

tioTLj  composition  and  assignment.  The  first  of  these  was  until 
lately  least  in  favour^  possibly  because  willingness  to  place  the 
affairs  of  a  business  which  has  got  into  difficulty,  under  the 
constant  control  of  the  creditors,  was  formerly  strong  evidence 
of  the  debtor's  bona  fides.  They  accordingly  represent  only 
£198,000  in  1863  and  £600,000  in  1864.  But  some  hitherto 
undiscovered  virtue  must  have  been  found  in  them  this  year, 
for  in  the  six  months  from  October  to  April,  they  have  bounded 
up  at  a  rate,  which  if  maintained  through  the  year,  will  reach 
£10,612,000.  Composition  deeds  come  next,  standing  in  1863, 
for  £373,000;  in  1864,  for  £2,497,000;  in  the  six  months  of 
1865,  at  the  rate  of  £8,872,000.  But  the  grand  new  device 
for  paying  old  debts  is  the  composition  deed,  which  the  Act  of 
1861  made  fashionable  by  its  192nd  section ;  at  first,  indeed,  it 
was  looked  upon  as  coolly  as  if  it  had  been  really  a  beneficial 
novelty.  But  in  1863,  the  amount  of  debts  represented  by 
these  instruments  was  £1,015,000,  and  so  prompt  were  defaulting 
debtors  to  appreciate  the  advantages  they  thereby  gained,  that 
the  total  for  1864  rose  to  £5,726,000,  and  while  that  for  the 
first  six  months  of  1865,  if  maintained  throughout  the  year,  will 
amount  to  £13,450,000;  making  a  grand  total  of  within  a 
trifle  of  £33,000,000  a  year,  or  £106,000  per  working  day, 
to  which  the  statutory  sponge  is  applied  by  means  of  theee 
deeds  of  assigment,  which  oner  such  facilities  for  fraud,  that 
Mr.  Moffatt  thinks  all  other  questionable  facilities  the  law 
has  provided  for  the  bankrupt's  special  benefit,  are  fair  and 
honest  in  comparison !  There  is  no  preliminary  proof  of 
debts.  The  trustees  are  constantly  in  collusion  with  the  bank- 
rupt. Delays  and  adjournments  ad  libitum  are  employed  to 
worry  and  wear  out  creditors  who  refuse  to  come  to  any 
arrangement  the  bankrupt  likes  to  propose,  and  the  result  in 
most  cases  is  that  the  fraudident  debtor  gets  his  own  way,  and 
makes  that  particular  disposition  of  his  estate  which  gives 
him  the  most  plunder  and  his  creditors  the  least  pav.  And 
here  again  the  law  steps  in  to  his  aid.  Though  there  has  been 
no  formal  decision  on  the  question,  the  leaning  of  the  courts  is 
in  favour  of  regarding  bankruptcy  by  deed  as  bankruptcy  on  a 
man's  own  petition,  and  as  consequently  giving  his  assignees 
no  rights  anterior  to  the  date  of  execution.  The  only  case 
which  favours  a  different  view  is  one  in  which  the  debtor  had 
been  made  a  bankrupt,  and  had  afterwards,  at  the  instance  of 
his  creditors,  executed  a  deed  in  order  to  save  the  expense  of 
winding-up  in  court.  This  was  held  to  give  the  trustees  under 
the  deed  the  same  rights  as  assignees  in  bankruptcy ;  but  the 
judges  expressly  guarded  themselves  against  laying  down  a 


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1248  Administration  of  Bankruptcy. 

general  rule,  as  they  went  only  upon  the  circumstanceB  of  Aat 
particular  case.  The  result  is  that  counsel  advise  a  petition  in 
regular  form  whenever  a  suspicious-looking  sale  or  transfer  has 
to  be  set  aside ;  creditors  hesitate  about  incurring  the  expense, 
and  in  the  end  the  bankrupt  and  those  in  collusion  with  him  pbce 
the  creditors  at  defiance.  In  memory  of  these  facts,  the  above 
noted  increase  of  such  deeds  ceases  to  be  remarkable. 

The  repeated  failures  of  bankers,  merchants,  statesmen,  and 
law  reformers  to  devise  a  good  law  of  bankruptcy  render  it 
rather  hazardous  to  offer  opinions  or  suggestions  in  that  bebdf. 
And  we  must  own  we  have  little  faith  in  some  of  the  remedies 
propounded  by  Mr.  Moffatt  for  admitted  evils.  We  cannot  see 
now  a  chief  judge  in  bankruptcy  would  have  ferreted  oat  the 
frauds  which  lie  hidden  under  thousands  of  seemingly  bona  fide 
instruments,  nor  how  he  would  have  done  work  for  which  the 
Act  of  1861  provides  no  efficient  machinery.  The  appointment 
of  a  paid  trustee,  with  power  to  admit  or  reject  claims,  would 
be  an  advantage  only  if  he  were  controlled  by  a  court  constantly 
sitting,  before  which  any  dispute  could  be  immediately  brought. 
And  his  remuneration  should  be  made,  not  only  contingent  upon^ 
but  increasing  with  a  favourable  realisation  of  the  assets,  girin? 
bonuses  or  increased  per  centages  as  the  dividend  progressel 
towards  20«.  in  the  pound.  Where  bankruptcy  has  taken  place 
without  fault,  the  debtor  should  receive  a  final  duscharge  firom  h» 
liabilities ;  but  where  there  has  been  neglect  or  recklessness,  and 
(a  fortiori)  fraud,  the  creditor's  right  to  sue  should  be  sus- 
pended over  him  in  terrorem  tmtil  he  has  paid  the  whole 
amount,  or  such  portion  thereof  as  the  commissioner  should 
determine  when  granting  his  conditional  discharge.  ^^ 
do  not  join  in  the  laudations  which  some  people  seem  dispo^ 
to  bestow  on  the  system  pursued  in  Scotland.  We  believe  that 
the  economy,  rapidity,  and  equity  of  bankruptcy  administration 
in  that  country  to  be  very  much  overrated.  "  '  Tis  distance 
lends  enchantment  to  the  view,*'  and  overcrowded  as  our  courts 
are  already  with  ordinary  business,  we  should  find  a  scheme  hv 
which  questions  in  bankruptcy  might  be  kept  waiting  for  lengthy 
trials  at  Nisi  Prius^  interminable  arguments  in  Banco,  and  m- 
evitable  delays  on  Circuit,  would  never  be  endured.  What  «^^ 
want  is  a  statutory  abolition  of  all  mischievous  distinctions 
between  bankruptcy  by  a  man's  own  act,  and  by  the  ^drer^ 
action  of  his  creditors,  and  a  simplification  of  procedure.  To 
make  effective  the  law  when  thus  established  it  should  he  ad- 
ministered by  men  chosen  from  such  members  of  the  bar  ^ 
have  a  special  familiarity  with  conmiercial  matters.  Theyshc^ 
be  clothed  with  ample  powers,  their  sittings  should  be  arransw 


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The  American  Dry  Ooode  Trade  throughout  the  War.  1249 

so  that,  even  in  vacation,  there  should  always  be  one  court  open^ 
and  their  judicial  functions  should  include  the  duty  of  deciding 
whether  tne  bankrupt  should  receive  an  absolute  or  only  a  quali- 
fied discharge  from  his  debts  and  liabilities.  Lastly,  the  men  to 
whom  the  administration  of  bankruptcy  law  is  committed,  should 
have  the  primitive  power  of  police  magistrates.  For  the  smaller 
offences  against  the  commercial  code,  they  should  have  power  to 
commit  summarily,  while  the  more  serious  cases  they  should 
send  for  trial.  The  onlv  objection  to  this  is,  that  the  greater 
knave  would  have  the  better  chance  of  escape,  and  thus  the 
smaller  offenders  would  be  punished  while  their  more  guilty 
brethren  get  off  scot  free.  Whether  this  consideration  ought 
so  far  to  prevail  as  to  continue  the  present  impunity  to  all,  may 
be  doubtful ;  but  we  think  we  have  indicated  some  of  the  fea- 
tures which  a  good  Bankruptcy  Law  should  possess,  and  should 
be  only  too  happy  to  see  them  embodied  in  the  next  attempt  to 
legislate  upon  this  difficult,  but  most  important  subject. 


THE  AMEEIOAN  DRY  GOODS  TRADE  THROUGHOUT  THE 

WAR. 

The  American  dry  goods  trade  has  been  the  sport  of  various 
influences  throughout  the  war.  The  imports  were  closely 
scrutinized,  the  auction  room  resorted  to,  the  experiment  of 
private  sale  tested,  jobbers  trusted  and  distrusted,  buyers 
courted  and  turned  awav,  that  importers,  consignees,  merchants 
and  retailers  might  hold  their  own  against  the  changes  of  the 
war,  and  the  exactions  of  the  Federal  treasuiy.  Moreover, 
there  were  the  panic  of  1863  with  gold  at  171  premium  on  the  1st 
of  March,  and  at  140  premium  on  the  26th  of  the  same  month ; 
the  panic  of  1864  with  gold  at  181  premiimi  on  the  14th  of 
Apnl,  and  at  166  premiiun  on  the  19th  of  the  same  month ;  and 
the  panic  of  1865  with  gold  at  201  premium  on  the  1st  of  March, 
and  at  147  premium  on  the  24th  of  the  same  month.  The 
trade,  however,  still  survives.  It  is,  indeed,  at  the  present  time, 
in  a  hopeful  state,  old  faces  from  the  South  having  re-appeared, 
old  accounts  being  adjusted  and  re-opened  on  terms  as  ad- 
vantageous to  the  seller  as  they  well  can  be  to  the  buyer.  May 
nothing  happen  to  prevent  the  dry  goods  import  values  at  New 
York  soon  reaching  the  old  figures  of  upwards  of  $100,000,000 
annoallv. 

The  iollowing  figures  show  the  total  imports  at  New  York 
for  the  twelve  years  before  the  war : — 


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1250  The  American  Dry  Goods  Trade  throughout  the  War, 


1849.... 

$11,983,279 

1850.... 

16,565,016 

1851.... 

16,252,028 

1852.... 

16,172,991 

185S.... 

28,204,146 

1854.... 

21,884,346 

1855.... 

19,157,015 

1856.... 

36,185,825 

1857..., 

24,938,408 

1858.,,. 

21,124,303 

1869.... 

37,829,041 

1660.,.. 

84^32,922 

Silks. 

FIftx.    MiaccUaneoits. 

TotaL 

$15,295,753 

$4,756,561 

$3,959,210 

$45,514,775 

20,281,034 

7,662,9U 

2,282,437 

5832a,i<:i3 

23,486,456 

6,744,818 

4,110,163 

60.626,4iti} 

22,944,503 

7.103,887 

4,644,017 

62,304^.1 

84,128,519 

8,790,135 

5,766,964 

93.499,ti»« 

27,599,393 

7,258,052 

5,805,939 

l^hl^-l 

23,478,460 

6,924,635 

6,968,865 

ee^.sms-^ 

28,780,519 

8,772,922 

7,208,592 

88^27,453 

27,691,987 

6,938,737 

6,676,856 

82,676^2 

20,381,735 

7,008,636 

4,914,523 

69,093,765 

83,682,647 

11,120,484 

6,266,052 

112,97ll,»ll 

84,988,710 

7,914,162 

6,674,497 

101,880,^ 

IMPORTS  OF  DRY  OO01>S  AT  NEW  YORK, 

Cottons. 
$6,519,972 
11,038,595 
11,027,938 
11,389,858 
16,808,363 
16,610,148 
11,274,221 
10,901,185 
17,480,962 
13,567,943 
27,781,264 
17,721,726 

To  these  large  import  valaes,  the  New  York  trade  was 
reconciled,  and  those  of  1860  were  not  thought  excessive ;  not 
in  the  least  exceeding  the  legitimate  and  proper  wants  of  trade. 
In  the  trade  of  1860  there  are  some  points  of  general  interest. 
The  unprecedented  consumption  of  1859  so  greatly  stimulated 
European  shipments  that  the  spring  trade  was  supplied  early, 
and  with  much  freeness.  Indeed  so  excessive  were  the  ship- 
mentSy  that  the  receipts  for  duties  paid  at  the  custom  house,  in 
January  and  February,  exceeded  those  of  1859,  for  the  same 
months,  by  no  less  a  sum  than  ^3^360,000,  or  15  per  coit. 
Bu^rs  held  back ;  for  they  anticipated  a  deluge  of  imported 
articles.  Importers  in  turn  became  alarmed ;  the  spring  trade 
languished ;  and  ultimately  there  was  a  clearance  at  auction  to 
the  extent  of  $25,000,000,  at  an  average  loss  of  15  to  20  per 
cent.  The  loss  to  importers  was  computed  at  $4,000,000.  The 
South  bought  largely,  and  the  West  bought  largely,  and 
European  shippers  received  a  lesson  which  just  now  should  be 
remembered.  The  New  York  market  to  be  remunerative  to  the 
European  shipper  must  be  sparingly  supplied,  not  gorged, 
because  when  gorged  the  goods  are  literally  thrown  away.  That 
the  South  and  West  bought  largely  was  accidental,  and  in  no 
way  connected  with  subsequent  events,  for  the  election  of 
President  Lincoln  did  not  take  place  for  some  months  after. 

The  fall  trade  of  1860  was  as  profitable  as  the  spring  trade 
was  losing.  The  imports  were  short  $6,000,000,  and  there  was 
no  enthusiasm  betrayed  by  European  shippers.  They  were  not 
to  bum  their  fingers  twice  in  the  same  year,  in  the  same  market ; 
and  the  Jobbers  speedily  realizing  the  character  of  the  situati<m 
stepped  m  and  bought  up  everything  at  good  prices.  Of  aueticm 
sales  there  were  next  to  none,  and  such  as  took  place  involved 
no  sacrifice.  The  only  let-down  the  market  had  was  from  a 
large  arrival  of  French  worsted  and  wooUen  goods,  through 
the  withdrawing  of  the  French  export  bounty  to  the  oolonies. 
But  prices  were  on  the  whole  sustained ;  even  in  the  eventual 
absence  of  any  considerable  Southern  demand.    Hie  fall  had 

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The  American  Dry  Goods  Trade  throughout  the  War.  1251  • 

found  the  South  convulsed  on  the  vexed  slavery  question,  and, 
being  beaten  at  the  poll,  the  intensity  of  sectional  hatred  was 
manifested  by  the  absence  from  New  York  of  the  chief  Southern 
jobbers.  They  kept  aloof  from  New  York,  neither  buying  nor 
pajiog  for  their  spring  purchases.  That  the  North  alone  absorbed 
the  imports,  shows  what  it  can  do  in  prosi)erou8  times  without 
the  South.  It  further  indicates  the  enormous  increase  which, 
but  for  the  war,  would  have  taken  place  in  the  imports  at  New 
York.  But  for  the  war  the  European  shipments  in  1861  would 
have  been  greatly  in  excess  of  those  during  what  proved  to  be 
the  last  year  of  peace. 

The  following  figures  show  the  total  imports  at  New  York 
throughout  the  war  : — 


IMPORT   OF   DRV  GOODS 

AT   NEW  YORK. 

J^^l.. 

1HV2., 

Woollens.        Cottons. 
..$16,720,931     $7,192,931 
...     25.718,592       8,501,512 
,..    29,703,956       7,913,967 
-..    31,411,965       8,405,246 

Silks. 

$13,384,411 

11,568,807 

15,534,469 

16,194,080 

Flax.     Miscellaneons. 

$3,580,303     $2,808,520 

7,666,916       2,665,370 

10,381,059       8,731,106 

11,621,831       3,956,630 

Total. 

$43,636,689 

66,121,227 

67,274,547 

71,589,762 

These  are  sjpecie,  as  distinguished  from  " greenback'*  values; 
and  the  falling  off  from  1859  and  1860  exemplifies  the  intensity 
of  the  war.     It  also  points  to  vital  questions  of  deep  interest ; 
especially  in  our  own  manufacturing  districts.     The  demand  for 
woollens  Icust  year  exceeded  the  average  wants  of  all  the  States 
before  the  war ;  but  it  chiefly  consisted  of  blanket  and  clothing 
stuffs  for  the  Northern  armies.     It,  therefore,  was  an  exceptional 
demand  ;  one  which  will  not  be  maintained,  and  which  neces-. 
j^arily  suggests  dullness  and  forced  idleness  among  a  numerous 
class  of  home  operatives,      Manchester  and  Glasgow,  on  the 
contrary,  may  anticipate  iacreased  demands  upon  their  looms, 
no  matter  what  the  price  of  fabrics,  because  last  year  the  manu- 
factured cotton  imports  of  New  York  were  §8,405,246  against 
$17,721,725  in  1860,  and  $27,781,264  in  1859.     Lyons  and 
vSpitalfields  will  also  now  be  busy ;  for  the  normal  state  of  the 
New  York  silk  imports  is  35  per  cent,  of  all  the  manufactures. 
Nowhere,  in  peaceful  times,  ifi  there  such  a  market  for  silks  as 
in  New  York,  and  while  last  year  the  imports  were  to  the  extent 
of  $16,194,080,  those  of  1860  were  of  the  value  of  $34,988,710. 
Tbroagliout  the  war  calico  dresses  were  much  worn,  but  now 
tlicy  are  sure  to  be  put  aside.     Whether  Dundee  and  Belfast 
H'ill  continue  shipping  on  the  same  scale  as  recently  is  scarcely 
doubtfuL    Until  the  price  of  cotton  falls,  flax  fabrics  will  prac- 
tically be  as  cheap  as  cotton  fabrics ;  and  among  the  wealthier 
Southern  families  the  stock  of  linen  must  be  short.    Of  the 
miscellaneous  it  is  not  required  to  speak. 
The  trade  of  1861  was  not  pirofitable.    It  was  a  trade  of  in- 

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1252  The  American  Dry  Goods  Trade  thraughoui  the  War. 

tense  distrust ;  no  man  caring  to  trust  his  neighbour.  Indeed 
no  man  cared  to  trust  the  government ;  and  Mr.  Giase,  had  he 
listened  to  all  advisers  and  adopted  half  the  schemes  submitted 
to  him,  would  have  illustrated  the  well-known  fable.  What 
each  and  all  were  eager  for,  was  a  command  of  money,  and  that 
they  were  willing  to  secure  on  any  terms.  Accordingly  the 
importer  stood  aloof  from  the  jobbers  and  the  trade.  He  de* 
sired  money,  money  only,  and  designed  to  have  it  For  the 
speedy  and  sure  attainment  of  his  purpose  the  auction  was 
resorted  to.  Here  goods  were,  so  to  speak,  realized;  but 
realized  without  the  remotest  reference  to  cost.  For  as  mach 
as  they  would  bring,  they  were  sold  by  the  hammer,  and  odIj 
when  even  on  such  terms  the  demand  failed,  the  jobbers  were 
agaiu  sought  and  three  and  four  months  bills  drawn. 

The  trade  of  1862  was  the  most  lucrative  of  several  yean. 
An  American  writer  of  repute  thus  speaks  of  it :  *^  In  1859  and 
1860  the  market  was  depressed  with  over  supplies;  in  1861 
trade  was  light  on  account  of  the  absence  of  Southern  demand, 
and  the  large  amoimts  of  money  lost  which  wexe  due  frcon 
Southern  debtors  to  Northern  merchants,  and  which  losses  car- 
tailed  the  credit  of  merchants.  Moreover,  the  breaking  out  of 
the  war  had  induced  the  greatest  caution.  But  in  the  spring  of 
1802  the  market  improved,  and  prices  which  had  been  roinoasly 
low  the  year  before,  now  advanced  nearer  cost,  and  in  some 
cases  left  fair  profits.  At  the  time  for  the  commencem^it  of 
the  autumn  trade  money  was  easy  and  plenty,  the  government 
having  issued  $200,000,000  in  treasury  notes;  and  with  an 
abundance  of  money  among  the  people,  trade  commenced  earlier 
than  usual,  and  the  jobbing  trade  sought  to  supplv  their  wanta 
by  regular  purchases  at  private  sale  instead  of  waiting  for  the 
importers  to  put  up  their  goods  at  public  auction.  ^Oie  wants 
of  the  jobbing  trade  were  so  large  that  the  private  sale  market 
became  brisk,  and  the  stock  of  goods  ran  short.  This  imparted 
firmness  to  the  market,  which  was  increased  by  the  rising  values 
of  exchange,  and  by  an  advance  on  goods  in  Europe  which 
greatly  increased  the  cost  of.  getting  out  further  supplies. 
With  an  active  demand,  moderate  receipts,  and  greatly  in- 
creased expense  in  landing  new  goods,  prices  ,began  to  rise 
quite  early,  and  continued  to  rise  as  exchange  and  cottcci 
advanced.  The  demand  for  distribution  exceeding  the  ex- 
pectations of  the  trade,  many  kinds  of  goods  became  scarce. 
With  an  active  demand,  a  scarcity  of  stocks,  and  plenty  of 
mone^,  it  is  easy  to  produce  a  panic  in  prices,  if  we  may  call 
a  rapid  upward  movement  a  panic,  as  well  as  a  rapid  down- 
ward movement  when  it  occurs.  In  the  latter  part  of  October, 
when  the  demand  was  most  active  and  prices  at  the  highest 


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The  American  Dry  Oooda  Trade  throughout  the  War,  1253 

point,  the  advance  on  many  kinds  of  desirable  goods  was  as 
mucli  as  50  per  cent,  over  the  lowest  point  which  had  been 
obtained  during  the  two  previous  years ;  while  on  some  descrip- 
tions it  was  even  greater."  But  the  satisfaction  arising  from 
a  redundant  currency  is  usually  short-lived.  The  gains  of 
1862  were  more  than  once  distrusted  in  1863,  and  the  quiet  sub- 
stantial state  of  things  which  existed  before  the  war  would  have 
been  gladly  welcomed  back  by  all.  Importers  were  in  turn 
enriched  and  robbed  by  hasty  tariff  changes;  jobbers  and 
others  disconcerted  in  their  computations  by  unforeseen  appre- 
ciations and  depreciations  of  the  precious  metals ;  and  mechanics 
and  workmen  at  times  goaded  to  the  verge  of  treason,  because 
it  happened  that  their  nominally  high  wages  were  not  always 
sufficient  for  the  purchase  of  daily  bread.  Still,  it  must  be 
confessed,  that  the  poor  man  was  on  the  whole  benefited, 
partly,  no  doubt,  through  his  resolute  crying  out,  and  that  the 
middle  class  were  also  gainers;  and  necessarUy  when  the  middle 
class  and  the  poor  prosper,  the  rich  are  not  losers.  But  let  it 
be  remembered  that  the  gains  of  all  classes,  in  the  pectdiar 
circumstances  of  the  people  of  the  United  States,  are  contingent 
on  good  faith  being  maintained  with  the  public  creditor.  Were 
the  American  public  creditor  to  be  disavowed,  or  were  the  debts 
of  the  separate  States — the  aggregate  amount  of  which  is  now 
enormous — to  prove  too  great  a  burden,  in  conjunction  with  the 
debts  of  the  Federal  treasury,  it  would  be  a  task  of  some  diffi- 
cxdty  to  produce  a  goodly  number  of  solvent,  rich  or  poor, 
within  the  bounds  of  the  United  States.  Under  a  purely  credit 
system  individuals  and  nations  are  rich  on  the  assumption  only 
that  what  is  owing  to  them  will  be  really  paid. 

But  it  is  time  to  speak  of  1864,  and  to  touch  on  some  details. 
Trade  in  1864  was  m  a  most  unsatisfactory  state ;  it  being 
generally  necessary  to  take  advantage  of  the  favourable  fluctua- 
tions in  the  gold  premium  for  paying  duties.  Nor  were  the 
duties  the  only  care  of  the  importer,  there  were,  in  addition, 
the  premiums  on  exchange.  At  the  close  of  last  year  some 
descriptions  of  woollens  which  had  to  pay  an  import  duty  of 
60  per  cent,  in  gold  were  thus  burdened  : — 

Net  cost  afloat  at  New  York        ..  ...  Sl.OO 


Premium  on  exchange 
Gold  duty        ...  •. 

€k>ld  duty  premimn 

Total  tax  on  the  one  dollar's  worth 
Total  cost  to  the  importer 


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1254  The  American  Dry  Goods  Trade  thronghout  ike  War. 

Into  the  hands  of  the  confiomer  the  one  dollar's  worth  perhaps 
passed  at  a  charge  of  §5  or  $6.    But  to  put  the  matter  broadlr, 
the  whole  value  of  the  dutiable  goods  imported  in  1864  was 
$264^381,101,  the  average  premium  on   gold   155,  and  the 
exchange  170.     The  actual  cost  of  the  imports  was  therefore — 
OrigmalcoBt     ...  ...  ...  $360,381401 

Freight,  <fec.      26,038410 

$286,41V11 
Exchange,  60  premimn  ...  •••  161,061J526 

Duties  ooUected  in  cuirenoy  ...  159,945,630 

Total  oo6t  in  greenbacks  •••  $601^6,367 

Another  American  writer  of  position  savs  (October,  1864), 
**  The  events  of  the  last  month  have  been  influenced  principally 
by  the  great  fluctuations  in  the  prices  of  gold,  that  have  tended 
to  unsettle  all  values  prospectively,  and  create  great  apprehen- 
sions in  relation  to  the  possible  consequences  of  a  sudden  and 
large  depreciation  in  the  prices  of  goods.  The  combined 
influence  of  taxes  and  of  currency  inflation  has  carried  goods 
so  high  as  seriously  to  check  consumption.  The  efiect  is  the 
more  decided  since  domestic  productions  have  not  risen  in  price 
so  fast  as  other  articles,  because  although  articles  of  home  prch 
duction  suffered  the  influence  of  paper  inflation,  those  mana- 
factured  articles  composed  of  imported  materials,  and  goods 
directly  imported,  were  influenced  also  by  the  premium  on  gold 
as  well  as  the  paper  inflation,  and  the  latter  in  the  double  ratio 
of  premium  on  exchange  and  premium  on  gold.  The  deprecia- 
tion of  the  currency  is  the  one  general  cause  of  the  rise,  but 
the  import  taxes  have  added  a  further  element  of  cost  which  is 
not  borne  by  the  domestic  products.  With  each  advance  in 
the  price  of  gold  this  becomes  more  evident,  and  it  is  the  sign 
of  increasing  relative  difference  in  prices  which  is  the  main 
I  cause  of  languishing  commerce.     The  Fall  trade  is  very  back- 

ward, and  many  dealers  are  awaiting  orders  for  the  re-slupment 
of  their  goods  to  more  propitious  quarters.  An  ordinary  qoalitj 
of  cloth,  which  paid  24  per  cent,  duty  three  years  since,  now 
pays  460  per  cent,  before  it  reaches  the  retailer,  a  fact  whifH 
represents  so  many  yards  less  for  the  same  quantity  of  farm 
produce."  Thus  it  was  not  unfortunate  for  th<f  United  Strifes 
Government  that  the  war  terminated  at  the  time  it  did,  for  its 
j  resources  and  energies  were  beginning  to  be  fairly  tried.    X<> 

I  doubt  its  energies  and  resources  are  great,  but  it  is  pretty  certain 

that  at  the  present  time  they  are  unequal  to  the  renewal  and 
continuance  of  so  great  a  conflict. 


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1255 


BANXma  AND  FINANCIAL  ANECDOTES. 


No.  xn. 

LOMBARD   STREET. 

This  sti'eet  Las  for  many  centuries  been  &mous  for  its  wealth,  its 
iDhabitants  being  formerly,  as  now,  dealers  in  money;  it  is  well  known 
that  previous  to  the  time  of  Edward  the  Second  it  was  the  principal 
mart  for  the  goldsmiths  and  money-lenders,  now  commonly  called 
pawnbrokers.  They  displayed  their  bags  of  money  on  low  benches 
in  open  shops,  protected  perhaps  by  occasional  awnings  from  the  in- 
clemency of  the  weather.  We  have  seen  an  ancient  lease  of  a  hoiise 
in  Lombard  Street,  in  which  permission  is  given  to  the  occupier  to 
enclose  it  with  windows  ;  and  to  this  day,  that  part  of  a  banking  house 
m  which  money  is  received  and  paid,  is  called  "the  shop."  The 
celebrated  Sir  Thomas  Gresham,  goldsmith  to  Queen  Elizabeth,  had 
his  shop  in  Lombard  Street,  on  the  site  of  the  banking  house  of  Martin, 
Stone  and  Company  ;  and  for  many  years  the  successors  of  Sir  Thomas 
Gresham,  Charles  Duncombe  and  Richard  Kent,  occupied  the  house 
and  kept  up  the  sign  of  the  "Grasshopper."  The  present  names  of 
the  courts  and  alleys  in  Lombard  Street  had  their  origin  from  the 
banker's  signs,  with  the  exception  of  "  Pope's  Head  Alley,"  which 
was  so  named  because  the  dealers  in  Roman  Catholic  wafer  cakes 
and  pardons  resided  there.  The  grandfather  of  Anne  Boleyn,  wife 
of  Heniy  VIIL,  was  a  goldsmith  in  Lombard  Street,  as  was  also, 
according  to  Pepys,  the  husband  of  Jane  Shore.  Lloyd's  Coffee  Houi^e 
was  originally  in  Lombard  Street ;  it  was  the  property  of  Edward 
Lloyd,  in  the  time  of  Elizabeth,  who  was  noted  for  his  permitting 
merchants  and  others  to  assemble  in  a  room  in  his  house  to  discuss 
their  business  matters,  without  insisting  on  their  taking  refreshments ; 
its  many  conveniences  of  locality,  &c.,  increased  its  reputation,  and  at 
last  it  became  the  only  place  where  marine  insurances  could  be 
effected,  and  continued  to  be  so,  until,  as  Stow  relates,  "  The  merchants 
began  to  make  their  meetings  at  the  Royal  Exchange ;"  and  up  to  the 
present  time  all  the  policies  for  marine  insurance,  effected  at  Lloyd's, 
contain  these  words,  **'And  it  is  agreed  by  us,  the  insurers,  that  this 
writing  or  policy  of  assurance  shall  be  of  as  much  force  and  effect  as 
the  surest  writing  or  policy  of  assurance  heretofore  made  in  Lombard 
Street^  or  in  the  Royal  Exchange,  or  elsewhere." 


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1256  Banking  and  Financial  Aneedotei. 

In  1677  was  published  a  list  of  all  the  bankers  who  kept  "mnniDg 
cash/'  with  their  several  signs,  for  the  practice  of  numbering  bouses 
had  not  then  been  adopted.  Among  them  will  be  fomid  Peter 
Percefull  and  S.  Evans,  of  Lombard  Street,  with  the  sign  of  the 
"  Black  Boy,"  evidently  the  predecessors  of  Willis,  Percival  and  Com- 
pany. James  Hore,  at  the  sign  of  the  '*  Golden  Bottle,"  Cheapside,  the 
ancestor  of  the  Mensrs.  Hoares,  of  Fleet  Street,  who  have  the  symbol 
of  a  leather  bottle,  gilt,  over  the  principal  entrance  of  their  btnking 
house  ;  it  appears  from  Sir  Bichard  Hoare's  history  of  the  iamilj,  that 
Mr.  Richard  Hoare,  goldsmith  at  the  «  Golden  Bottle,"  Fleet  Stoeet, 
resided  there  in  1692.  Messrs.  Goslings,  also  in  Fleet  Street,  retain 
their  aucient  sign  of  the  "  Three  Squirrels."  Bemains  of  this  custom 
may  still  be  found  in  many  of  the  Metropolitan  banks,  for  example,  in 
the  branch  of  the  London  and  Westminster  Bank,  formerly  the  btnk- 
ing house  of  Snow  and  Paul,  in  the  Strand,  may  be  seen  a  gcddeo 
anchor. 


RUN  ON  THE  BANK  OF  EKQLAMD,  1720. 

The  following  explanation  of  a  reported  run  on  the  Bank  of  England 
was  printed  and  published  in  the  above  year  : — 

''  Whereas  there  hath  been  several  false  and  malicious  reports  in- 
dustriously spread  abroad  reflecting  on  Sir  Bichard  Hoare,  goldsmith, 
for  occasioning  and  promoting  a  run  for  money  on  the  Bank  (d 
England  ;  and  in  particular  several  of  the  directors  of  the  said  bank, 
reporting  that  the  said  Sir  Bichard  sent  to  the  bank  for  ten  of  their 
notes  of  £100  each  with  a  design  to  send  several  persons  with  th« 
said  notes  to  receive  money  thereon,  so  as  to  effect  his  ill  designs  and 
to  bring  a  disreputation  on  the  bank,  and  occasion  a  disturbance  in 
the  City  of  London."  This  accusation  Sir  Bichard  as  publicly  denied, 
stating  that  the  ten  bank  notes  were  required  by  Major  Ashbumham 
for  his  journey  to  Scotland,  for  his  expenses.  Sir  Bichard  farther 
stated  that  had  he  intended  to  promote  a  run  for  money  on  the  bank, 
he  could  have  done  it  in  a  more  effectual  manner,  having  by  him  all 
the  time  that  the  great  demand  for  money  wad  on  the  bank,  aeTexml 
thousand  pounds  in  notes  payable  by  the  bank  ;  and  also  that  then^ 
was  brought  to  Sir  Bichard,  by  several  gentlemen,  in  the  time  of  the 
run  on  the  bank,  notes  payable  by  the  bank,  amounting  to  a  great 
many  thousands,  which  he  was  desired  to  take  and  receive  the  monej 
immediately  from  the  bank,  which  he  refused  to  do  until  the  gnat 


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Banking  and  Financial  Anecdotes.  1257 

demand  for  money  on  the  bank  was  over.  The  authorities  of  the 
bank  must  have  been  very  sensitive,  if  the  withdrawal  of  so  small  a 
sum  as  £1,000  could  have  caused  them  any  uneasiness,  or  to  report 
that  the  withdrawal  of  that  sum  could  possibly  be  construed  into  a 
run ;  but  no  doubt  the  real  fact  was,  that  there  still  existed  a  jealousy 
between  the  private  bankers  of  London  and  the  Bank  of  England. 
Many  of  the  former,  at  the  above  period,  and  in  particular  Messrs, 
Hoaresy  issued  their  own  notes,  which  notes  only  ceased  to  be  issued 
when  the  bank  had  been  fully  established  in  public  favour,  and 
consequently  a  preference  being  given  to  the  notes  issued  by  the 
Bank  of  England. 


A  BANK  PORTEB  CHOSBN    AS    A   CLERK. 

Some  years  ago  it  was  the  practice,  and  we  believe  still  is,  for  a 
candidate  for  a  clerkship  in  the  Bank  of  England  to  undergo  a 
certain  degree  of  examination  as  to  his  fitness  for  the  office,  one  of 
the  tests  was  that  of  counting  twenty  pounds  in  silver.  It  happened 
on  a  certain  occasion  that  the  name  of  a  young  man  (who  was  a 
candidate  for  the  post  of  porter)  was  placed  in  the  list  of  clerks,  and 
on  the  young  man  receiving  the  silver  to  count,  he  whispered  to  the 
head  of  the  department,  "  There  is,  I  think,  some  mistake  here,  sir ; 
I  am  to  be  a  porter  and  not  a  clerk."  "  Count  the  silver,  sir,"  was  the 
reply,  adding,  "  a  clerk  is  better  than  a  porter  any  day ;"  whereupon 
the  young  man  counted  the  silver,  and  having  performed  the  opera- 
tion expeditiously  and  correctly,  he  was  told  he  would  do  very  well. 
The  candidate  again  whispered  to  the  chief  of  the  office, ''  I  write  very 
bad,  sir,  not  being  used  to  it ;"  the  reply  was  "  Pooh,  pooh,  when  you 
pass,  as  you  will  do,  take  lessons  in  writing  afler  office  hours,  and 
you  will  soon  write  as  well  as  the  best  of  us."  This  kind  and  con- 
siderate advice  was  adopted,  and  in  a  very  short  time  the  young  man 
became  a  most  efficient  officer  of  the  corporation,  remaining  in  the 
bank  for  upwards  of  forty  years,  much  respected. 


THE  BANK  CLEBK  AND  THE  MUD  CABT. 

That  portion  of  the  Bank  of  England  now  called  the  Garden,  was 
formerly  the  churchyard  of  St.  Christopher-le-Stocks,  and,  having 
formerly  been  consecrated,  became,  in  the  estimation  of  pious  people, 
.<«  holy  ground."    One  of  the  derks  in  the  Bank,  of  the  name  of 


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1258  Banking  and  Financial  Anecdote*. 

Jenkins,  lies  buried  in  this  consecrated  gronnd ;  the  cause  of  this 
inteiment  in  such  a  place  arose  out  of  a  fear  expressed  by  his  rek- 
tives,  that  in  consequence  of  his  singular  height — ^he  was  upwards  of 
seven  feet — ^his  body,  which  was  much  coveted  by  the  feculty,  would 
be  exhuming  if  it  were  buried  in  any  other  place.  A  whimsicsl  stoiy 
is  related  of  Mr.  Jenkins.  He  was  in  the  daily  habit  of  passiiig 
through  the  Borough,  and  at  the  foot  of  London  Bridge,  on  the  Snirej 
side^  there  was  a  linen-draper's  shop,  the  proprietor  of  which  was  a 
very  little  man.  This  dwarf  made  a  point  of  standing  at  his  doer 
every  morning  at  the  time  Mr.  Jenkins  passed,  looking  up  to  him  in 
rather  a  contemptuous  manner — at  the  same  time,  like  the  frog  in  the 
fable,  endeavouring  to  swell  himself  up  to  the  dimensions  of  the  giant 
This  conduct  on  the  part  of  the  little  linen-draper  had  become  90 
irritating,  that  one  morning  observing  a  mud  cart  opposite  the  drapers 
door,  full  to  oversowing,  Mr.  Jenkins  took  up  the  little  man  and 
soused  him  in  the  liquid  mud-cart,  walking  away  as  though  nothing 
had  happened. 


ffTORT  OF  A  LOTTEBT  TICKET. 

One  of  the  joint  stock  companies  formed  during  the  bubble  mania  of 
1720  was  "  The  Charitable  Corporation  for  lending  money  totiie  poor 
at  moderate  interest"  This  corporation  got  into  difficulties,  and  the 
creditors  petitioned  Parliament  for  relief.  The  prayer  of  the  petition 
was  granted  in  the  shape  of  a  lottery — a  very  common  mode  of  re 
lieving  distressed  companies  in  those  days.  The  following  whimstol 
incident  arose  out  of  the  purchase  of  a  ticket  in  this  lottery  :— - 

An  old  bachelor  had  a  female  servant  who  bought  a  half  ticket  in 
the  Charitable  Corporation  Lottery,  No.  9,999.  She  said  she  chose 
this  number  beca\ise  she  had  dreamt  for  three  consecutive  nights  that 
this  ntimber  had  turned  up  a  prize.  This  dream  she  told  to  her 
master,  who  made  a  minute  of  the  number  in  his  pocket-book  On 
the  day  the  lottery  was  drawn  the  old  gentleman  saw  an  announce- 
ment that  No.  9,999  had  been  drawn  a  prize  of  X20,000.  He  went 
immediately  to  Doctors'  Commons  and  took  out  a  marriage  lioei»e 
for  himself  and  Sarah  Smith,  his  servant  He  then  hastened  home,  fear- 
ing lest  any  one  should  have  announced  to  Sally  her  good  fortune,  aaii 
thereby  frustrate  his  intentions  towards  her. 

On  reaching  home,  he  found  Sally  was  ignorant  of  the  &te  of  her 
htbtry  ticket     He  then  addressed  hw  in  very  faauliar  terau^  stating 


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Banking  and  Financial  Anecdotes*  1259 

he  thonght  her  a  very  comely  lassie,  and  ended  by  asking  if  she  would 
like  to  become  mistress  of  his  house,  in  fact  his  wife.  Sally  blushed, 
and  playing  with  the  comer  of  her  apron,  asked  if  he  was  serious, 
Tvliereupoi^he  showed  her  the  license.  Notwithstanding  the  short-* 
ness  of  the  courtship,  it  was  arranged  that  they  should  be  married  the 
first  thing  in  the  morning.  Accordingly  on  the  following  morning 
they  were  married,  and  after  the  ceremony  was  over,  the  old  gentle- 
man said,  "  Now,  Sally,  my  dear,  we  will  call  at  the  lottery  office 
about  your  ticket,  which  I  have  the  pleasure  to  inform  you  has  been 
drawn  a  prize  of  X20,000,  so  let  us  lose  no  time  in  obtaining  the 
money."  Sally  immediately  exclaimed,  "  Oh  dear,  what  a  pity  T* 
**  Why,  what  is  the  matter,  Sally  ]"  She  replied,  **  Why,  you  must 
know  that  my  sweetheart,  who  is  a  sailor,  called  on  me  a  few  weeks 
ago  and  told  me  he  was  going  to  the  East  Indies,  and  asked  me  to 
give  him  a  keepsake,  when  I  gave  him  the  lotteiy  ticket."  It  is 
easier  to  imagine  than  describe  the  chagrin  and  disappointment  this 
information  must  have  caused  the  old  gentleman,  who  found  he  had, 
through  his  avaricious  disposition,  been  saddled  with  a  penniless  wife, 
and  that  wife  his  former  housemaid. 


XXCHBQUSB  TALLIES. 

Tallies  were  of  great  and  constant  use  in  the  exchequer  coeval  with 
the  institution  of  the  exchequer  itself;  these  tallies  were  pieces  of 
wood  cut  in  a  peculiar  manner.  For  example,  a  stick  or  rod  of  hazel, 
well  dried  and  seasoned,  was  cut  square  and  uniform  at  each  end  and 
in  the  shaft.  The  sum  of  money  which  it  bore  was  cut  in  notches 
in  the  wood  by  the  cutter  of  the  tallies,  and  likewise  written  on  both 
aides  of  it  by  the  writer  of  the  tallies.  These  notches  were  cut  at 
two  opposite  angles  of  the  prism,  which,  being  split,  converted  it 
into  two  prisms  with  triangular  basis ;  these  two  notched  cuts  of 
woods  were  exactly  equivalent  to  the  modem  engraved  cheque  and 
counterfeit ;  one  was  given  to  the  parties  pa3ring  money  and  the  other 
retained  at  the  exchequer.  Clumsy  as  such  instruments  must  appear 
to  modem  ideas  they  were  undoubtedly  an  effectual  protection  against 
forgery  or  fraud.  The  circumstances  attending  the  entire  extinction 
of  these  primitive  instruments  is  thus  related  in  Lawson's  History  of 
Banking: — '* In  the  month  of  October,  1834,  the  authorities  of  the 
exchequer  gave  directions  that  the  tallies  and  foils  (which  were  no 
longer  required)  should  be  destroyed.    They  were  accordingly  re* 


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1260  The  Clearing  Bankers''  CammiHee. 

moved  firom  ihe  excHequer  to  the  celkra  of  the  Honaea  of  Pariiunent 
and  by  a  modem  Gnj  Fawkes  were  placed  in  the  flues  to  be  can- 
snmed.  The  operation  of  burning  the  talliea,  of  which  there  were 
several  cart  loads,  they  having  accumulated  for  centuries,  began  at 
ox  o'clock  on  the  morning  of  Thuraday,  the  16th  of  October,  1831, 
and  continued  the  whole  of  the  day,  until  half-past  six  in  the  evening 
when  the  flues  having,  as  might  have  been  expected,  become  oTcr- 
heated,  a  temfic  fire  burst  forth,  and  in  a  few  hours  ihe  entire  boiki* 
ing  was  a  heap  of  ruiD&'' 


THE  CLEABING  BANE:£BS'  COMMITTEK 

{From  a  CorrtMpondent) 

It  is  a  matter  for  national  congratulation,  that  the  banking  bnsiDess 
of  the  world  centres  itself  in  London,  bringing  in  its  train  ennchment 
not  only  to  the  dtizen^s  merchants,  and  tradesmen  of  the  metropolk, 
but  di^^ising  wide-spread,  throughout  the  country,  handsome  dividends 
amongst  those  who,  by  virtue  of  the  Joint- Stock  Act,  are  partner  in 
this  lucrative  business.  Few  people  know  the  immense  extent  of  this, 
or  have  ever  heard  of  the  millions  sterling,  by  which  alone  its  daiir 
operations  are  measured^  or  by  what  laws  its  internal  economy  is  rego* 
lated,  or  who  compose  the  council  of  so  important  a  guild  as  gut 
modem  **  goldsmiths,^'  who,  by  their  enterprise  and  probity,  have  » 
largely  contributed  to  England's  greatness  among  the  nationa  We 
think  the  constitution  of  this  ooundl  calls  for  a  few  remarks,  as  it 
assimies  to  itself  the  functions  of  controlling  the  whole  bodj  of 
bankers  in  London,  in  their  relation  with  each  other,  and  in  a  minor 
d^ree  with  their  customers  also. 

In  its  present  state  it  is  an  anomaly  amongst  our  English  instita- 
tions,  for  it  is  neither  elected  by  the  members  of  its  ownprofe^oo, 
nor  is  it  nominated  by  state  or  municipal  authority,  and  the  right  to 
sit  in  the  council  appertains  to  the  heads  of  a  few  private  banking 
firms  only,  as  an  hereditary  privilege. 

Of  course  no  one  had  any  right  to  complain  of  the  manner  in  whidi 
this  council  or  committee  was  constituted,  so  long  as  it  assumed  only 
to  govern  the  private  bankers ;  and  without  agreeing  with  those  vba 
say  that  private  bankers  have  had  their  day  and  will  be  unknown  to 
the  next  generation,  imless  history  records  that  they  contained  in  their 
ranks  a  poet  and  a  peer  in  the  reign  of  our  Sovereign  Lady  Qneen 
Yictoria,  we  cannot  but  see  in  the  marvellous  success  of  the  joint«tock 
banks,  a  power  or  principle  which  they  might  as  well  hope  to  resist 
by  restrictive  measures,  as  to  stop  an  express  train  by  placing  t 
cord  across  its  route. 

Those  of  our  readers  whose  memories  can  cany  them  back  to  the 
introduction  of  joint-stock  banking  to  the  metropolis,  may  lememlwr 


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The  Clearing  Bankers*  Committee.  1261 

witK  vliat  determiii&tion  the  Committee  of  Clearing  Bankers  resisted 
the  innoYation  by  throwing  every  obstacle  in  the  way  of  business  that 
could  harass  and  annoy  the  joint-stock  banks,  or  be  detrimental  to 
the  interests  of  their  customers,  and  admitted  them  to  share  the 
facilities  afibrded  by  the  bankers'  clearing  house,  only  when  the 
joint-stock  banks  were  so  rapidly  rising  in  importance  as  to  com- 
mand the  privilege  of  exchanging  drafts  ujjon  equal  terms,  which  they 
had  80  long  been  denied.  But  though  compelled  to  yield  the  use  of 
their  clearing  house  to  their  poweHul  rivals,  they  have  withheld 
from  them  to  the  present  day,  ^e  right  to  share  their  deliberations 
on  measures  which  affect  them  equally  with  the  private  bankers  who 
thus  practically  assume  to  themselves  the  sole  right  of  determining 
matters  not  only  affecting  their  own  business  but  also  the  joint- 
stock  banks  who  use  their  clearing  house,  for  which  accommodation 
a  very  ample  rent  is  required  by  the  committee. 

The  number  of  joint-stock  banks  who  are  doing  a  London  business, 
and  come  under  the  title  of  "clearing  bankers,"  is  eleven;  their 
paid-up  capital  amounts  to  upwards  of  twelve  niillion  pounds,  and 
their  united  ''  liabilities  "  to  nearly  one  himdred  million  pounds,  and 
constitute,  we  think,  a  fair  title  to  consideration  on  any  question 
^hich  in  any  degree  affects  this  enormous  wealth.  The  interests  of  the 
numerous  customers  whose  it  is,  and  a  due  regard  to  the  wishes  of  the 
executive  in  whose  hands  it  is  deposited,  demand  that  this  wall  of  ex- 
clusiveness  ^hall  now  be  thrown  down  and  the  right  fully  conceded  to 
every  clearing  banker  to  be  represented  in  that  council,  which  may 
then  with  dignity  discuss  any  proposition  brought  under  its  notice. 

The  necessity  for  an  immediate  change  in  the  constitution  of  this 
council,  which  is  to  control  the  banking  interest  of  the  future,  with 
the  prospect  of  an  indefinite  extension  of  the  joint-stock  system,  and 
a  probable  decrease  in  the  number  of  private  bankers,  is  apparent^  for 
inequality  is  daily  increasing  and  must  continue  to  do  so.  Nor  are 
the  joint-stock  banks  without  specific  grounds  of  complaint ;  for  in- 
stance they  have  been  recently  called  upon  to  obey  an  order  in 
council,  extending  the  time  for  receiving  "  returns  "  at  the  Clearing 
House,  and  thereby  entailing  upon  managers  and  those  whose  duty  it 
is  to  supervise  this  important  item  a  longer  attendance  at  the  respec- 
tive banks — and  during  the  present  month  an  extension  of  time  in 
another  department  has  been  decreed  by  the  committee,  who  order  • 
that  all  bankers  shall  '^mark''  cheques  for  payment  next  day  to  5.15 
iastead  of  5  o'clock,  again  causing  part  of  the  staff  of  the  joint-Stock 
banks  to  be  detained  for  a  longer  period  than  usual  hitherto. 

We  venture  to  say  that  had  the  joint-stock  banks  been  individually 
ri^j)resented,  the  above  orders  would  not  have  been  issued,  but  a  remedy 
would  have  been  sought  in  quite  another  direction  for  the  pressure 
of  business  which  they  are  designed  to  alleviate.  An  extension  of 
time  was  most  urgently  needed  to  enable  the  bankers  to  pass  through 
their  books  the  enormous  number  of  drafts  sent  by  their  customers 
for  clearing,  and  in  itself  was  just  one  of  those  subjects  upon  which 
the  opinions  of  all  the  clearing  bankers  should  have  been  taken.  In- 
VOL.  XXV.  96 

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1262  I%e  Charing  Bankers'  Oanmittee. 


stead  of  doing  this,  the  otdera"WB'ha?e  referred  to  "wgrekwiadlyy  the 
Committee,  and  unless  the  increase  in  our  meroantile  faamantinitt  n 
to  stop,  these  retrogressive^  steps  most  before  long  be  repealed. 

We  inll  now  'venture  to  point  out  the  remedy  irhiehoor  jomtiAock 
banks  would  hare  advocated,  and  whidi  we  think  is  the  only  true  come 
to  be  pursued  unlesa  indeed  we  are  te^dnftbadc  to  the  banking  boon 
of  1847;  but  before  we  state  the  remedy,  it  will  be  well  to  ^moeibr 
a  minute  at  the  case  requiring  its  application.  The  hanking  hoDM 
are  open  until  four  o'clock,  and  their  customen  can  and  do  seed  to 
their  credit  bills,  dieques,  notes,  and  coin,  up  to  the  ktest  niiniifte, 
just  as  they  did  eighteen  years  ago  ndien  tiie  banks  wean  open  intil 
five  o'clock. 

The  bills  and  cheques  upon  dealing  bankeni  mnst  be  psad 
through  two  sets  of  books  at  least,  and  examined  for  eDdoraesaail^  ^ 
before  they  can  be  despatched  to  the  Clearing  Honae,  which  also  das 
at  four  o'clock  ;  but  a  difference  of  five  minutes  exists  between  titt 
docks  in  fii.vour  of  the  Clearing  Housci  and  notwithatan^Bg  ito 
device,  and  the  concentration  of  all  tbe  avaolaUe  leeouices  d  tbe 
bankers,  they  can  never  succeed  in  tiie  sdf-imposed  task  of  denii^ 
all  the  drafts,  because  no  maigin  of  time  is  allowed  within  wkioh  it 
maybe  effected,  except  the  miserable  five  nunutea  alluded to^ lui 
consequently  the  number  of  drafts  dafly  undeared  la  so  great  tint 
the  beoikeiB  find  it  necessary  to.give  their  derka  iacieaaed  tiaie  to 
present  these  undeared  drafts  at  the  various  *>«"^**g  houses  to  be 
''  marked  "  for  ne±t  day's  dearing. 

We  think  if  a  margin  of  thuty  minutes  were  required  of  eveiT 
I  customer  who  should  pay  in  dearing  cheques,  it  would  at  once  beoos* 

I  ceded  by  them,  and  we  know  it  would  allow  amjde  time  to  the  bsdaar 

to  dear  the  drafts  on  the  heaviest  settling  day,  and  all  the  drafts  beinf 
cleared  none  would  be  left  for  <*  marking ;"  and  further,  it  will  bewen 
that  due  time  being  thus  allowed,  the  drefte  would  be  passed  throe^ 
the  books  more  correotly  and  examined  with  greater  care  thsa  n 
possible  under  the  present  system,  and  many  serious  mistakes  wcdii 
be  avoided  thereby. 

We  are  able  to  speak  oonfidently  of  the  beneficial  results  of  sadit 
system  as  we  indicate^  because  for  many  yean  it  has  been  in  aciaal 
operation  at  the  Bank  of  Bnghmd  and  jilso  at  the  Union  Beak  of 
•London,  and  we  think  we  may  saldy  infer  that  all  the  cuiuiaeicul 
I  classes  are  represented  at  these  two  banks,  and  therefore  no  iikvd- 

venience  is  suffered  by  them  in  consequence  of  this  anrangement;  tad 
from  actual  inquiry  we  can  state  that  no  single  oon^>]aiut  has  evtf 
been  lodged  against  the  plan  adopted  at  the  Union  Bank  with  oA 
signal  benefit  to  every  member  of  their  establishment. 

We  feel  assured  that  we  diould  be  wronging  our  merdtaaiB  ead 
others  if  we  doubted  that  a  request  £nr  reasonable  time  in  winch  to 
perform  the  important  duties  entrusted  by  them  to  their  bss^ 
would  be  otheiwise  than  rea<Uly  granted,  even  if  it  did  invdve  in 
some  caoes  a  sl^t  alteration  in  thdr  own  aRangenieDtB  to  meet  tfca 
propoBed  diangei 


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"  The  Times  "  and  the  Currency  Question.  1263 

We  revert  for  a  moment  to  the  immediate  subject  of  otir  remarks' 
and  earnestly  hope  that  the  Committee  of  Clearing  Bankers  may,  wisely 
considering  the  situation,  ayoid  an  assault  on  their  citadel  by  a  timely 
parley  with  their  friends  the  joint-stock  bankers,  and  by  a  graceful 
concession  of  just  rights  attach  to  themselves  the  good  opinion  of 
their  countiymen  and  prove  th Aaselves  to  be  in  this  generation,  what 
their  Others  were  in  the  past^ ''  wise  men  discerning  the  times.^' 


«THE  TIMBS"  AND  THE  OUKRBNOY  QUESTION, 

Thb  annexed  communication  (8a3rB  T?^  Timet)  fomishes  another 
illustration  of  the  ideas  entertained  in  some  commercial  quarters 
regarding  the  Bank  of  England.  The  writer  complains  of  the 
lock-np  of  a  certain  portion  of  the  bank  funds  in  railway  and 
other  debentures,  and  of  "  the  miserably  small  jeserve  with 
which  the  directors  are  content  to  work/'  and  recommends  that 
the  debentures  in  question  should  all  be  disposed  of,  and,  further, 
that  the  note  issue  unprotected  by  bullion  should  be  increased 
from  its  present  amount  of  £14,600,000  to  £20,000,000.  41ie 
expediency  of  holding  railway  debentures  may  be  open  to  dis- 
cussion, but  the  writer,  in  describing  the  system  as  fraught 
with  danger,  and  in  assuming  that  an  opposite  course  would 
place  a  more  fuU  amount  of  circulation  at  the  command  of  com- 
merce, overlooks  three  facts.  These  are,  first,  that  if  the  bank 
were  not  to  hold  such  debentures  they  would  be  held  by  other 
parties  whose  means,  now  employed  in  commerce,  would  thus  be 
withdrawn  to  exacUy  the  same  extent,  so  that  the  discount 
market  would  be  in  just  the  same  condition  as  before;  next, 
that  these  debentures,  when  selected,  as  is  doubtless  the  case,  to 
fall  due  at  different  intervals  and  at  moderately  short  dates, 
give  the  bank  a  power  over  the  money-market  almost  as  com- 
plete as  if  they  were  commercial  bills ;  and  finally,  that  if  the 
bank  were  not  to  make  such  investments  they  must  employ 
the  amount  in  bills,  and  that  this  necessity,  when  money 
is  extremely  abundant,  would  render  it  essential  for  them  to  put  * 
down  Iheir  rate  not  only  to  3  or  2\  per  cent.,  as  is  sometimes 
complained  of,  but  to  a  still  lower  point.  Apart,  moreover, 
from  all  these  considerations,  there  is  the  fact  that  the  question 
is  purely  one  of  banking  management,  and  that  the  Bank  of 
England  in  that  matter  has  just  as  much  right  as  any  other 
joint-stock  or  private  bank  to  pursue  its  own  course.  With 
respect  to  the  "  miserablj  small  reserve'*  with  which  the  bank 
are  content,  the  allegation  is  altogether  unfounded.  It  is  the 
object  of  the  bank  sdways  to  keep  a  sufficient  reserve,  and 
the  very  measures  which  speculators  now  find  so  distasteful 
have  been  adopted  with  that  view.    The  sufficiency  of  a  banking 

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1264  "  The  Times  "  and  the  Currency  Question. 

reserve  is  to  be  tested  by  the  state  of  public  confidence^  and  if 
there  are  any  of  the  private  customers  of  the  bank  who  fed  ap- 
prehensive that  the  management  in  this  respect  is  unsound  they 
can  withdraw  their  deposits  to  establishments  they  may  deem 
more  secure.  The  circumstance  of  the  bank  being  compelled  to 
publish  its  reserve  is  in  itself  an  anomaly,  that,  like  all  anomahes, 
must  occasionally  be  attended  with  inconvenience.  Thepodticn 
of  the  Bank  of  England  in  its  banking  capacity  is  precisely  the 
same  as  that  of  any  other  bank,  and  if  one  is  to  publisn  its 
accoimts  the  whole  should  be  compelled  to  do  so.  Finally,  ihe 
suggestion  that  the  issue  of  notes  unprotected  by  gold  should  be 
increased  from  £14,600,000  to  £20,000,000  simply  amounts  to 
a  recommendation  that  the  sum  of  £5,400,000  of  gold  should  be 
driven  out  of  the  country,  and  although  the  temporary  inflation 
of  prices  which  would  be  the  immediate  symptom  of  the  process 
would  give  great  satisfaction  to  a  large  class  of  operators,  the 
final  result  would  be  one  of  disappointment  and  dismay : — 

«*  London,  Oct  20. 

*^  Sib,— In  looking  over  the  last  half-yearly  report  of  the  Bank  d 
England  in  the  Banker^  Magasinty  I  have  been  much  struck  with  the 
following  answer  made  by  the  governor  to  a  proprietor  ; — '  Though 
they  had  not  held  anything  like  the  amount  of  debentures  (nulvav, 
mentioned  by  the  hon.  gentleman  (jE8,000,000  to  £9,000,000),  they 
held  a  considerable  amoimt,  something  like  £4,000,000/  Now  dii^ 
confirms  reports  which  I  have  often  heard,  but  never  before  believed  ; 
and  as  I  am  told  that  they  also  hold  other  bonds,  such  as  the  city  of 
London,  for  a  laige  amoimt,  T  submit  for  the  consideration  of  the 
directors  that  such  a  lock-up  is  most  unsound  banking.  Had  the 
Bank  of  England  been  a  loan  company  or  an  insurance  companj,  it 
would  be  legitimate  enough  to  invest  their  funds  in  long-dated  bcoda* 
but  for  a  bank,  and  that  the  bank  of  all  the  bankers  in  the  kmgdom, 
to  lock  up  its  funds  in  that  manner,  is  a  proceeding  fi^ught  with 
danger,  and  may  lead  to  disastrous  results. 

^<  When  we  think  of  these  '  lock-ups,'  and  the  miserably  sntall 
reserve  on  which  the  bank  is  content  to  work,  we  need  not  wonJer 
that  a  little  activity  in  the  manufacturing  districts  is  enough  to  tasost 
the  value  of  money  to  advance  3  per  cent,  in  as  many  weeks. 

'^  I  admit  that,  upon  the  whole,  the  bank  has  been  well  man^g^ 
of  late  years,  but  the  government  should  be  moved  during  cfit 
session  of  Parliament  to  permit  an  issue  of  notes  upon  £20,000, OtH> 
of  government  securities,  in  place  of  upon  £14,600,000  as  at  prexnt, 
and  the  directors  should  realise  all  these  dead  loans  forthwith.  The 
bank  would  then  be  in  a  position  to  keep  a  larger  amount  of  nsserrtv 
and  would  be  freed  from  the  necessity  of  frightening  the  commeroe  d 
the  country  when  it  is  in  a  most  prosperous  stata 

**  Your  obedient  senrant, 


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1265 


ROBBERY  AT  THE  BANK  OF  LONDON. 

Thomas  Wood,  38,  a  gentlemanly-looking  man,  who  formerly  held  the 
appointment  of  cashier  at  the  Bank  of  London,  and  pleaded  guilty  at  the 
September  sessions  to  a  charge  of  stealing  about  £3,000,  the  property  of 
his  employers,  was  placed  at  the  bar  at  the  Central  Criminal  Court  on  the 
24th  October,  to  receive  judgment. 

IVIr.  Sleigh,  who  with  Mr.  Poland,  had  been  instructed  to  prosecute,  said 
that  the  prisoner  had  been  for  ten  years  in  the  service  of  the  bank  as 
cashier,  and  it  appeared  that  in  consequence  of  something  that  transpired 
his  till  was  removed  suddenly,  when  it  was  discovered  that  there  was  a 
deficiency  of  about  £1,900  in  lus  accounts.    This,  of  course,  led  to  further 
inquiries,  and  it  was  ascertained  that  in  addition  to  this  sum  of  £1,900 
the  prisoner  had  obtained  possession  of  a  further  sum  of  £1,600  belonging 
to  a  gentleman  named  Martin,  who  kept  an   account  at  the  bank.    It 
appeared  that  Mr.  Martin  kept  two  accounts,  one  a  deposit  account,  and 
the  other  a  banking  account,  and  the  prisoner  executed  a  pretended  autho- 
rity from  Mr.  Martin  to  transfer  £1,600  from  the  deposit  account  to  the 
current  account,  and  by  this  means  obtained  possession  of  that  sum,  and 
the  nature  of  the  transaction  was  such  that  it  was  not  likely  to  be  dis- 
covered unless  some  special  attention  was  directed  to  the  subject,  as  the 
amount  of  money  in  the  prisoner's  possession  would  appear  to  be  correct. 
The  prisoner  did  not  seem  to  have  given  any  explanation  when  the  defal- 
cation was  discovered,  and  there  appeared  to  be  no  doubt  that  he  had  been 
engaged  in  Stock  Exchange  operations,  which  had  turned  out  unsuccessful, 
and  he  employed  the  money  of  the  bank  to  cover  the  losses  he  had  su<)tained. 
The  prosecutors  did  not  feel  themselves,  under  these  circumstances,  justified 
in  recommending  the  prisoner  to  the  mercy  of  the  court,  but  having  stated 
the  facts  they  would  leave  the  matter  entirely  in  the  hands  of  his  lordship. 
Mr.  MetcsJf e,  who  was  instructed  for  the  defence,  said  he  was  afraid  that 
it  ivas  too  true  that  the  prisoner  had  brought  himself  into  his  present  posi- 
tion through  a  spirit  of  speculation  and  a  desire  to  become  imduly  rich  by 
that  means.    He  could  not  deny  that  the  prisoner  had  made  use  of  the 
money  that  was  entrusted  to  him  by  the  bank ;  but  without  wishing  in  any 
way  to  dictate  to  bankers  how  they  should  conduct  their  business,  he 
could  not  help  remarking  that  it  appeared  to  him  that  there  was  a  want  of 
caution  in  allowing  a  person  in  the  position  of  the  prisoner  to  have  the 
entire  control  over  a  large  sum  of  money  for  a  very  long  period  without 
any  check  over  it  whatever  on  their  part.    The  effect  of  the  proceeding  was 
to  place  very  great  temptation  in  the  way  of  the  prisoner,  and  when  he 
entered  into  these  Stock  Exchange  operations  there  was  no  doubt  that  he 
entertained  a  sincere  belief  that  he  might  use  the  money,  and  that  he* 
should  be  able  to  replace  it  before  it  was  missed.    The  prisoner  did  not 
seem  in  any  way  to  have  falsified  the  books  of  the  bank,  and  this,  as  it 
appeared  to  him,  afforded  additional  grounds  for  believing  that  the  prisoner 
really  intended  to  replace  the  money ;  and  he  was  also  instructed  that  out 
of  the  money  that  had  been  abstracted  by  the  prisoner  £1,000  had  been 
paid  by  the  prisoner's  sureties,  and  £1,100  had  been  obtained  by  the  sale 
of  securities  and  other  property  in  his  possession.    All  he  could  say  in 
addition  to  the  facts  he  had  just  mentioned  was,  that  the  prisoner  threw 
himself  entirely  upon  the  mercy  of  the  court. 

The  Recorder,  in  passing  sentence,  said,  that  every  point  of  mitigation 
that  was  possible  had  been  urged  in  favour  of  the  prisoner,  but  it  waa 
impossible  for  him  to  regard  the  offence  he  had  committed  as  any  other 


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1266  Boyal  Bank  tff  Ireland. 

than  a  most  senoms  one.  It  WM  not  as  though  there  had  been  only  a 
single  act  of  dishoneaty ;  hat  the  priaoner  had  not  <xily  taken  the  mtmej 
out  of  the  till,  but  he  had  obtained  possession  of  a  large  aom  tiiat 
belonged  to  Mr.  Martin,  one  of  the  customers,  bjr  a  very  iogmiimis  pro* 
ceeding.  Upon  the  &cts  he  felt  that  he  had  no  altemaiive  but  to  r~"~ 
the  prisoner  to  five  years'  penal  serritade. 


KOYAL  BANK  OF  IKELAND. 

Ths  annual  general  meeting  of  the  shareholders  was  held  ai  the  Bank 
House,  Foster  Place,  on  the  27  th  September ;  Joshua  Waiaon,  Saq.,  chair- 
man of  the  board  of  directors,  in  the  chair. 

The  following  report  was  submitted  to  the  meeting :— > 
**  The  directors,  in  submitting  their  twenty-ninth  annual  r^mit,  are  imp 
pressed  with  the  belief  that  it  will  afford  satisfaction  to  the  shaieboldaa 
The  high  rates  of  discount  prevailing  during  the  first  half  of  the  past  year 
were  not  maintained  during  the  aeoond  period,  which,  on  the  contrary,  w» 
marked  by  terms  rather  under  than  above  those  ordinarily  existing.  The 
results,  neyertheless,  of  the  bank's  operations  exhibit  unmiatakafale  evidesMe 
of  a  continued  &vourable  action ;  and  the  shardiolders,  at  the  same  time, 
will  not  fail  to  notice  that  the  dividends  this  year  had  to  be  diatfibyfted 
over  a  considerably  larger  amount  oi  capital  than  in  preceding  yeaza.  The 
reserve  fund  on  this  occasion  has  only  been  nominally  incroaaed ;  hot, 
while  from  the  large  addition  made  last  jrear  it  was  not  deemed  necaaaary 
to  add  to  it  iu  any  essential  degree  this  year,  the  directors  retsin  the 
opinion  they  have  heretofore  expressed,  that  an  increaae  of  this  fond  dioQld 
not,  under  fitting  circumstances,  be  lost  sight  of ;  as  experienoe  has  eon- 
vinced  them  that  the  command  of  a  resource  of  this  nature  is  an  impoiiaiiit 
element  in  the  successful  working  of  the  bank,  by  enabling  it  to  cany  cb 
its  operations  independently,  as  well  aa  on  account  of  ^e  increased  ooaifi- 
dence  in  the  bank's  stability,  whidi  it  is  calculated  to  afford.  In  their 
last  report  the  directors  had  to  advert  to  the  death  of  their  then  late  ^Mtr- 
man ;  and  it  is  now  with  extreme  regret  that  thef  have  to  record  the 
resignation  of  his  successor,  Mr.  Edward  AtkiuROii,  in  conseqnaioe  of  iD 
health.  This  gentleman's  time  and  abilities  had  been  so  loi^  and  ao  ably 
devoted  to  the  service  of  the  bank,  that  it  was  with  unlaign^  retadance 
the  board  accepted  his  proffered  resignation,  which,  with  a  full  aenaaef  the 
.  loss  they  sustamed,  they,  neverthdess,  were  compelled  to  do.  Tlie  vacam^ 
created  by  Mr.  Atkinson's  retirement  has  been  filled  up  by  the  election  tD 
the  board  of  Mr.  Robert  CallweU,  a  gentleman  so  well  known  and  so 
highly  appreciated  in  the  mercsntile  community  of  Dublin  that  tiie  direc- 
tors feel  no  doubt  of  their  choice  meeting  the  approval  of  the  sharahblden. 
The  two  directors  who,  under  the  provisions  of  the  deed  of  settleaaent, 
should  have  retired  from  the  board  by  rotation  tiiia  year  were  Joseph 
Hone,  jun.,  Esq.,  and  Jonathan  Pirn,  Esq.,  M.P.  They  wete  eligible  for 
re-election,  and  would  have  been  proposed  for  that  purpose  on  uds  occa- 
sion. The  sudden  and  lamented  death  of  Mr.  Hone,  wluch  took  place  ca 
Monday  last,  precludes  the  election  of  more  than  one  director  at  &s  pre- 
sent time ;  but  the  board  wUl  give  their  eadieBt  attentioii  to  tktt  iUii^  up 
of  the  vacancy  which  thus  arises." 


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Bayal  Bank  of  Ireland. 


1267 


Dr. 

Propiieton*  paid-np  capital         .-        £300,000    0 

Beaenre  fima  214,627  16 

Amount  dae  by  the  bank  on  cnrrent  and  otber  accounta,  and 

on  deposit  receipts        1,307,311    7 

Post  billB  and  circular  notes        32,139    0 

Balmnce  of  profit  and  loss  unappropriated  last  ^ear 6,120    5 

Net  profit  for  year  ending  this  date,  after  deducting  all  expenses 
of  management,  £66,384. 10».  !<<.,  lessr-Fefaniarjr  diridend 
paid  to  propriatoffs,  £24,000,  amount  allocated  tot  bad  and 

doabtfol  debts,  £6,000— £30,000        26,384  10    1 

Profit  by  sale  of  unclaimed  Boyal  Bank  shares  (new  issue), 
£10,027.  Bs,  9J.,  less  amount  allocated  in  reduction  of  value 
of  gOToroment  stock  held,  £4,568.  l&r »       .-  5,458  13    9 


0 
3 

10 
8 
6 


£1,892,041  14    1 


Or. 


ASSBTV. 


Bills  discounted  on  band •        

AdTances  on  government  stock  and  other  securitiea 
Gash  and  government  stock  on  hand     ... 
Bank  premises       


...£1,289,049    6  6 

...       399,772    8  9 

...       244,220    3  10 

19,000    0  0 

£1,892,041  14  1 


Dr. 


P90VIT  AXD  ujm  AOOOnXT* 


Amount  of  interest  paid  on  deposit  receipts  and  cnrrent  ac- 
counts, &c         £34,549  15  5 

Total  expenses  of  management,  including  salaries,  rent,  taxes, 

stotionery,  ftc 14,911     7  10 

Amount  carried  to  bad  and  doubtful  debt  ftmd           6,000    0  0 

Amount  allocated  in  reduction  of  yalue  of  government  stock, 

now  estimated  at  90      4,568  15  0 

Amount  carriedto  reserve  fond,  making  that  account  £215,000  372    3  9 

IMvidendofSpeVcenk.  lor  half-year  ended  28th  February  last  24,000    0  0 

Dividend  of  10  per  cent  for  half-year  ending  this  date         ...  30,000    0  0 

-Bakiioenni^»piopriated.at  this  date      ...        7f591    5  7 


£121,993    7    7 


Or. 
Unappropriated  balance  from  last  year,  as  above 
Gross  banking  profits  for  this  year  (rebate  of  interest  on  current 

bills  having  been  estimate^    ... 
Profit  on  securities  sold,  as  above         


Present  ameimt. 


Balance  from  last  year 
Amount  Appropriated  as  above 


£6,120    5    6 


... 

105,845  13 
10,027  8 

4 
9 

£121,193  7 

7 

>*» 

£215,000  0 

0 

t*. 

£214,627  16 
372  3 

3 

9 

£215,000  0 

0 

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1268  Bank  of  British  Columbia. 

The  followmg  resolatioDS  then  ware  proposed  and  nDimmonsly 
adopted  : — 

Moved  by  the  chairman ;'  seconded  by  Edward  Fox,  Esq.,  ^Thatil^ 
report  now  read  be  received  and  adopted,  and  that  the  same  be  piiukd 
and  circulated  amongst  the  shareholders." 

Moved  by  Alexander  Findlater,  Esq. ;  seconded  by  Bobert  CaJlTtll, 
Esq.,  *"  That  Jonathan  Pirn,  Esq.,  M.P.,  be  re-elected  a  director  of  the 
bank." 

Moved  by  Alexander  Parker,  Esq. ;  seconded  by  Alexander  Boyle,  E«q , 
^  That  the  proprietors  of  Royal  Bank  stock  here  assemUed  desire  u> 
unite  with  the  directors  in  an  expression  of  sincere  sympathy  aad  ac- 
dolence  with  the  widow  and  family  of  the  late  Mr.  Hone,  under  the  peifi- 
ful  circumstances  which  attend  a  bereavement  so  sudden  and  usexpet^ 
as  they  have  just  sustained. 

Moved  bv  Henry  Peile,  Esq. ;  seconded  by  Bobert  Millner,£6q.,  "Tbt 
the  cordial  thanks  of  the  meeting  be  given  to  Joshua  Watson,  Esq, 
chairman,  and  to  the  other  directors  of  the  bank  for  their  able  and  rnxxat- 
ful  conduct  of  its  affairs  during  the  past  year." 

Moved  by  Edward  Fox,  Esq. ;  seconded  by  Itobert  O'Brien,  &q-» 
<*That  the  grateful  thanks  of  the  meeting  be  given  io  Mr.  CopUiKi, 
manager,  for  his  uniform  seal  in  promoting  so  suoceasfully  the  best 
interests  of  the  bank." 

Moved  by  John  Quinlan,  Esq. ;  seconded  by  Richard  ^TOson,  Esq-, 
*'That  the  warm  thanks  of  the  meeting  be  given  to  Mr.  North,  sub- 
manager,  and  to  the  other  officers  of  the  bank,  for  their  earnest  aod  skil- 
ful attention  to  their  duties,  and  for  their  uniform  oonrtesy  to  the  public 


BANK  OF  BBITISH  COLUMBIA. 


The  half-yearly  general  meeting  of  the  proprietors  of  this  company  «* 
held  at  the  London  Tavern,  on  the  3rd  of  October ;  Mr.  T.  W.  L 
Mackean  in  the  chair. 

The  Manager  (Mr.  Hansom)  having  read  the  advertisement  oonveniBf 
the  meeting,  the  following  report  and  accounts  were  taken  as  read:— 

^  The  accounts  for  the  half-year  ended  dOth  of  June  last,  show  that  after 
paying  all  charges,  deducting  rebate  of  interest  on  bills  not  dw,  and 
making  ample  provision  for  bs^  and  doubtful  debts,  the  undivided  pnnv 
amount  to  £20,078. 13«.  8d.,  which  the  directors  propose  to  ^pwiifiatf  « 
follows,  viz.,  £djd7b  in  payment  of  a  dividend  f^  the  rate  of  ^^P^T^^ 
per  annum ;  £7,0()0  to  reserve  fund,  which  will  then  amount  to  £20,ftw ; 
leaving  £3,703.  Ids,  8d.,  to  be  carried  forward  to  the  current  half-year. 

Statement  qfLiainUties  and  Assets  at  the  London  Office  and  Branches  en 
30M  June,  1865. 

LUBIIICTS*. 

Capital  paid  up  ..•  ...  ..,£137^  J  0 

Beservefond      .,•  ...  ...  ...  ..•  ...     13.000  0  ^ 

DeposiUi  notes  in  circulationt  hills  payable,  and  other  Hahilities  271,909  17  ^ 
BaUmce  of  profit  and  loss  on  the  30th  June,  1866      ..«  -    ^^^  ^^  " 


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Bank  of  Briiwh  Columbia.  1269 


AflSVTS. 


Specie  and  bnllton  in  hand  and  cash  at  bankers'        ...  ...  £89,676    0    6 

Bills  disc4  inn  ted,  bills  receivable,  goyemment  and  other  securities   39S,  1 88  11  1 1 
Bauk  preokises,  fumitare,  and  other  property  ...  ...       4,623  18    8 


£492,488  11     1 


Prqfit  and  Loss  Account,  June  SOth,  1865. 

Balance  of  profit  and  loss  account  brought  from  Slst  December, 

1864  ...  £18,680  12     I 

ProfiU  for  six  months  ended  30th  June,  1865,  after  deducting 
rebate  of  interest  on  bills  not  due,  and  making  ample  pro- 
vision for  bad  and  doubtful  debts  ...  ...  ...     27,096  17    2 

£45,777     9    3 


9  10,365  8 
.   20,078  13 

U 

8 

£45,777  9 

8 

..  £9,375  0 
.   7,000  0 
,   3,703  13 

0 
0 
8 

£20,078  13 

8 

.  £20.078  13 

8 

JHvidend  paid  8th  April,  1865        ...  ...  ...  ...     £8,333    6    8 

Amount  carried  to  reserve  fund      ...  ...  ...  ...       7,000    0    0 

Charges  to  30th  June,  1865,  including  rent,  taxes,  salaries,  di- 
rectors*  fees,  and  all  other  expenses  at  head  office  and  branches 
Bahince  of  profit,  30th  June,  1865  ... 


Proposed  appropriation,  viz. : — 
Dividend  at  10  per.  cent  per  annum 
Amount  to  be  added  to  reserve  fund 
To  be  carried  forward 


By  balance         .•• 

The  Ghairmaa,  in  moving  the  adoption  of  the  report,  said  that  the 
directors  felt  great  pleasure  in  meeting  the  proprietors  under  favourable 
drcnmstances,  and  in  being  enabled  to  prese^t  them  with  a  balance-sheet 
which,  he  trusted,  would  meet  with  their  approval.  This  was  the  sixth 
time  they  had  met  them  in  public  meeting,  and  if  they  referred  to  their 
various  reports  and  balance-sheets,  they  would  find  a  steady  progress  of 
business  with  which  there  was  everv  reason  to  be  satisfied.  The  net  profits 
had  gone  on  steadily  increasing,  and  the  note  circulation,  which  was  a  sure 
index  of  public  confidence,  had  increased  from  $36,959,  at  which  it  was  in 
1863,  to  ft 204,325,  according  to  the  June  returns  of  this  year.  The  direc- 
tors might  have  asked  them  to  declare  a  larger  dividend,  but  they  con- 
sidered their  first  duty  was  to  extinguish  debt  in  the  shape  of  preliminary 
expenses,  and  to  set  aside  for  a  reserve  fund  rather  more  at  first  than 
thev  would  recommend  in  future.  They  would  also  observe  that  they 
had  only  increased  their  capital  as  the  demands  of  their  business  re- 
quired. Since  they  last  met  they  had  opened  a  branch  at  Portland, 
in  the  State  of  Oregon,  and  without  venturing  any  opinion  now,  they 
felt  that  at  a  future  meeting  the  proprietors  woiild  be  satisfied  with 
the  results.  (Hear,  hear.)  l^e  extension  to  San  Francisco  and  Portland 
iieoessitated  fresh  capital  to  meet  their  requirements,  and  for  this  pur- 
pose aa  extraordinary  general  meeting  would  be  held  on  the  18th  instant 


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1270  Bank  ^BrUiih  Columbia. 

to  Banotion  tbiB  step  in  terms  of  tiMir  charter.    In  iisiiiiig  nev 
the  directon,  m  promued,  would  offer  them  to  ilie  ^iriaHag  ahanhokkn 
pro  raid  at  a  preminm  of  £2  to  be  paid  on  allotment,  and  £5  on  the 
Ist  of  January  next.    Future  oalls  would  be  made  at  mtervala  ct  not 
less  than  three  months,  and  only  when  the  buamess  of  the  benk  requized 
it.    Hitherto  the  directors  had  been  obliged,  as  prudent  men,  to  set  ands 
a  large  proportion  of  the  profits  for  the  creation  of  a  reaerre  fond,  bet 
after  the  addition  of  £26,000  to  that  fund  by  the  issue  ol  new  sham  it 
would  amount  to  £45,000,  which  would  justly  for  the  future  the  divisioa 
of  a  much  larger  proportion  of  profits  amongst  the  aharbholden.  (CSieen.) 
They  had  hitherto  been  exempt  from  bad  debts,  but  he  bad  cautioDed  the 
proprietors  that  they  could  not  always  expect  immunity  in  this  respeeL 
The  amount,  however,  which  they  now  haa  to  report  was  small,  and  had 
been  provided  for  out  of  the  profits  of  last  half-year.    They  had  much 
pleasure  in  bearing  testimony  to  the  continued  zeal  and  pradeace  of  their 
inspector  (Mr.  Widker)  and  the  manstfers  of  the  various  branches  under 
him,  and  they  also  felt  it  due  to  record  their  sense  of  the  courteay  cf  the 
States  governments  in  doing  all  they  could  by  their  representstivn  tt 
promote  the  interests  of  the  ^nk.  and  to  facilitate  their  arrangements  in 
establishing  branches  in  United  States  territory.    It  must  be  a  matter  ol 
congratulation  to  every  right-minded  man  that  the  fearful  crisis  in  the 
United  States  had  terminated,  and  as  her  people  possessed  great  intelligenoB 
and  energy,  and  boundless  resources,  the  directors  felt  assured  that  t^re 
would  be  such  a  revival  of  business  in  every  part  of  the  Union,  that  it 
would  be  felt  by  all,  md  by  none  more  tlnm  by  thia  bank.    Thej 
were  very  unwillii^  to  touch  upon  the  present  political  positum  of  tin 
colonies  of  British  Columbia  and  Vancouver  Island,  but  the  meeting  was 
aware  that  his  Grace  the  late  Duke  of  Newcastle  sanctioned  unwillingly  a 
separation  of  the  colonies.    The  board  felt  perfectly  convinced  that  in 
their  union  there  would  be  strength — ^morally,  ph^caUy,  and  commer- 
cially—besides a  vast  saving  of  expense  in  havmg  only  one  staff  of 
government  officials  to  support  instead  of  two.    One  colony  pnsMissed  un- 
bounded mineral  wealth,  with  sufficient  land  for  agricultimd  purposes  to 
support  a  large  population,  while  the  other  possessed  not  only  a  mie  diraate, 
and  one  of  the  finest  harbours  in  the  Pac&c,  but  fields  of  coal  with  other 
minenJ  wealth  capable  of  rendering  it  an  important  oommeradL  oentie. 
It  might  prove  interesting  to  them  to  hear  an  account  of  Britiah  Oolumbia 
from  the  i>er8oiial  observations  of  the  inspector  of  tiie  bank,  on  his  visit 
to  the  branches  in  that  colony,  and  he  would  therefore  read  the  foHowing 
extract  of  a  letter  from  that  gentleman,  dated  Srd  July,  18tt : — ^  I  faaie 
now  to  report  for  the  information  of  the  court,  that  I  have  mmpleted  my 
tour  of  inspection  to  the  various  agendes  of  the  Bank  of  British  Oolnmbia 
My  impressioiiB  of  the  colony  are  much  more  favourable  than  they  wen 
previous  to  my  visit  to  Cariboo.    The  country  is  more  settled  up  than  I 
expected  to  find  it,  the  mining  interests  appear  more  permanent,  and  tiie 
area  of  land  along  the  road  capable  of  cultivation  is  mudi  greater  than  I 
had  any  idea  of."    **  For  the  first  ten  miles,''  from  Yale,  **  you  follow  the 
Fraser  ou  its  left  bank,  crossing  Trutch's  suspension  bri<^  vadMhomiag 
the  river  on  the  other  side,  the  road  for  the  first  thirty  miles  runs  ako^ 
the  face'of  the  mountain,  and  in  many  places  is  blasted  out  of  the  &eeot 
the  solid  rook,  and  built  on  crib  work,  looking  down  perpendiealarly  frost 
^0  to  500  feet,  right  into  the  Frazer.    The  scenery  is  wild  and  mountain- 
pus  in  the  extreme,  and  the  road  is  a  monumoDt  ofgreat  engineering  skill 
and  wonderful  enterprise  for  so  young  a  colony.    l%e  first  evening  Dringi 
you  to  Lytton,  a  smidl  village  which  can  never  be  more  than  a  iuiwaidiiy 

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^ank  of  British  Columbia.  1271 

]x>mt.     Here  you  leave  tlie  Frazery  and  follow  np  the  right  baxik  of  the 
Thoinx>soOy  keeping  the  same  wild  Alpine  Boenery  till  you  croRS  SpenoeB* 
bridge,  at  which  point  the  Hudson's  Bay  Company's  trail  for  Kamloops 
diverges.    Leaving  the  bridge,  a  more  open  prairie  country  is  found  ad^ 
mirably  adapted  for  grazing  or  agricultural  purposes,  and  this  lasts  tUl 
you   reach  Clinton,  which  is  the  junction  of  the  Douglas   and  Yale 
routes.     This  place  at  one  time  took  a  considerable  start ;  there  is  a  good 
deal  of  available  land  about  it  which  gives  capital  crops,  and  it  seems  to 
me  to  be  a  very  central  point.    Leaving  Clifton  you  travel  through  the 
*  Green  Timber'  for  about  50  miles,  at  an  elevation  of  fully  4,000  feet 
above  the  sea,  where  continual  night  frosts  stop  all  vegetation ;  descending 
from  this,  you  come  to  Lake  la  Hache ;  ahd  from  there  to  Soda  Creek,  a 
distance  of  about  70  miles,  there  is  a  fine  rolling  prairie  country-,  where 
with  the  help  of  irrigation,  for  which  there  is  every  facility,  lu>ge  crops  of 
oats,  barley,  wheat  and  hay  are  raised.    From  Soda  Creek  a^ieiuner  takea 
you  to  Quesnel.  from  there  you  take  the  stage  to  Cottonwood,  36  miles 
from  Williams'  Creek,  whidi  distance  is  got  over  on  horseback  over  a 
most  execrable  trail.    The  trip  took  me  from  the  Monday  morning  till  the 
Friday  night,  travelling  all  the  time,  sleeping  one  night  on  board  the 
steamer.    As  far  as  I  can  see,  this  is  a  colony  which  can  only  be  settled  up 
by  miners,  but  having  once  got  a  mining  population,  there  is  abundance  of 
available  land  to  supply  a  large  number  of  people  with  aU  the  necessaries 
of  life.     Success  in  farming  will  permanently  settle  the  colony,  and  create 
other  means  of  employment  and  other  sources  of  wealth.    Hitherto  the 
farmers  have  aU  been  men  of  little  or  no  means,  but  they  are  almost  all 
content  with  what  they  have  done,  and  1  oould  give  instances  where  the 
most  extraordinary  success  has  followed  industry  and  hard  work,  where 
there  has  been  a  total  absence  of  capital.    Up  to  the  present,  the  ohief  orop 
raised  has  been  barley,  for  which  large  prices  have  been  got.  Now,  however, 
government  is  about  to  offer  a  premium  of  £1500  for  the  first  flour  mill  built 
in  the  colony,  so  that  I  expect  next  year  will  see  the  colony  entirely  self- 
supporting,  as  far  as  flour  goes.    The  actual  mining  of  the  colony  is  as  yet 
confined  to  Cariboo,  almost,  I  may  say,  to  WilHams'  Creek.   This  is  to  be 
accounted  for  by  the  fact  that  provisions  have  hitherto  been  too  high  to 
allow  of  men  going  off  on  a  prospecting  tour.    The  enonnous  finds  on 
the  creek  have  so  dazzled  men,  that  they  have  hung  about  this  great 
centre,  working  for  wages,  only  to  try  again  when  enough  has  been 
saved.     Besides  this,  a  great  many  other  creeks  known  to  be  rich  are 
unworkable,  owing  to  the  absence  of  machinery,  which  it  has  hitherto 
been  impossible  to   transoort  over  the  present  trail.     One  Saturday 
I  was  on  Williams'  Creek,  one  claim  washed  up  over  1,000  ozs.  for 
one  week's  work,  others  were  taking  out  from  300  to  70 ;  and  all  this  gold 
has  been  taken  out  by  the  most  primitive  means,  not  an  artide  of  ma- 
chinery ever  having^  been  used.    With  my  past  experience  as  a  guide,  I 
am  inclined  to  believe  that  on  Williams'  Creek  alone  there  is  work  for 
luany  years  to  come,  and  I  am  at  ease  in  my  own  mind  as  to  the  stability 
of  our  operations  tiiere.    All  along  the  banks  of  the  Frazer  there  are 
evidences  of  mining  operations — the  whole  country  is  more  or  less  rich  in 
gold.    The  government  has  received  most  satisfactory  reports  from  the 
gold  commissioner,  who  has  gone  to  Kootenais  and  the  Upper  Columbia, 
and  steps  are  being  taken  to  survey  the  best  line  for  a  road  to  the  Columbia 
Kiver,  which  I  beUeve  will  go  by  Shuswap  Lake,  where  the  Hudson's  Bay 
Company  are  to  run  a  steamer.    While  at  Yale  I  saw  a  large  lamp  of 
silver  ore  taken  from  a  lead  in  the  Shuswap  district,  which  I  am  told  is  of 
considerable  extent.    Samples  of  this  have  been  assayed  both  at  San  Fran- 


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I'i72  Bank  of  British  Columbia. 

CI80O  and  New  Westminster,  and  show  an  out-tnin  of  from  1,100  dels,  to 
1,300  dels,  to  the  ton.  At  present  the  disooTerers  of  the  lead  are  busy 
getting  down  several  tons  of  the  ore,  which  are  to  be  sent  to  San  Francisco, 
and  there  thoroughly  tested.  If  this  turns  out  sa  represented  (and  the 
specimen  I  saw  warrants  belief),  I  need  not  point  out  the  revolution  it 
will  work  in  the  prospects  of  the  colony."  It  was  right  to  mention  that 
the  American  line  of  steamers  from  San  Francisco  to  China  was  in  active 
progress,  and  there  was  also  a  new  English  line  advertised  for  New  York 
and  Panama,  which  eventually  they  hoped  to  see  extended  from  thenoe  to 
Vancouver  Island  and  British  Columbia;  and  that  at  no  distuit  diy 
England  would  have  a  line  of  her  own  from  Victoria  to  China,  in  frien  ily 
rivalry  with  their  brethren  of  the  United  States.  Everything  that  facili- 
tated communication  between  this  country  and  her  possessions,  and  reduced 
the  cost  of  passage  to  the  emigrant,  must  tend  to  develop  those  oolooiefl 
where  the  bank  ^t  commenc^  business.  In  conclusion,  he  begged  to 
move  the  adoption  of  the  report  and  accounts,  and  would,  before  it  vat 
seconded,  be  happy  to  answer  any  questions  that  any  proprietor  might 
wish  to  put. 

The  Deputy-Chairman  seconded  the  motion. 

Mr.  Wright  thought  the  report  and  statement  of  accounts  eminently 
satisfactory,  and  that  the  proprietors  ought  to  feel  themselves  much  in- 
debted to  the  management  for  the  prosperous  state  of  the  bank. 

Mr.  Morrell  called  attention  to  the  increase  in  the  expenses,  and  thon^ht 
it  would  be  convenient  if  the  remuneration  of  the  directors  was  set  forth 
as  a  separate  item.  With  respect  to  the  expenses,  they  were  set  down  in 
September,  1863,  at  ;[^,940 ;  they  had  increased  in  September,  1864,  to 
£6,186 ;  and  now  they  had  crept  up  to  over  £10,000  for  the  half-vesr. 
He  also  expressed  an  opinion  that  the  debenture  of  British  Columbia  held 
by  the  company,  which  was  taken  in  the  accounts  at  par,  was  put  down  at 
too  high  a  rate,  because  if  it  was  thrown  into  the  market  it  would  not 
realise  so  large  a  sum  by  6  per  cent,  as  the  amount  at  which  it  stood  in 
their  asset  aoconnt.  He  also  wanted  to  know  what  amount  they  had  in 
debentures? 

The  Chairman,  in  reply,  stated  that  with  regard  to  the  increase  of  ex- 
penditure,  it  had  resulted  solely  from  increase  of  business.  At  the  sanif 
time  he  pointed  out  that  the  honourable  proprietor  who  put  the  questita 
had  omitted,  in  his  comparison  of  1863  with  1864,  an  item  of  upwards  d 
£6,700,  which  in  point  of  fact  brought  the  expencUture  of  the  former  half- 
year  up  to  nearly  £9,000.  With  reference  to  their  expenses,  all  he  onold 
say  was  that  in  September,  1864,  they  were  able  to  show  a  net  profit  d 
12  per  cent.,  while  they  now  showed  20  per  cent.  (Hear,  hear.)  In  rtpri 
to  the  government  debentures  of  British  Columbia  they  were  paying  a 
good  interest,  and  they  were  quite  justified  in  putting  them  at  par.  They 
had  no  intention  whatever  of  parting  with  them,  as  they  considered  thtis 
quite  as  good  as  Mauritius  bonds  or  Victqna  bonds  at  £X0^  or  £105;  ud 
it  was  to  be  remembered  that  the  debt  of  the  colony  did  not  equal  the 
revenue. 

After  some  discussion  the  report  was  adopted. 

A  dividend  at  the  rate  of  10  per  cent,  per  ft«Ti-nm     as  then  declared. 

In  answer  to  a  question  from  a  shareholder, 

The  Chairman  said  the  amount  of  new  capital  was  to  be  £260,000,  hot  it 
would  be  called  up  only  as  it  should  be  required. 

A  cordial  vote  of  thanks  to  the  ftlifM"wfti^  and  directors  and  managv 
ooncluded  the  proceedings. 


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London  and  Brazilian  Bank.  1273 

An  extraordinary  general  meeting  of  the  abareholderB  of  this  company 
-was  held  on  the  18th  October,  at  the  London  Tavern,  Mr.  M'Kean  in  the 
chair,  for  the  purpose  of  authorising  the  increase  of  the  capital  of  the  bank 
by  the  issue  of  new  shares. 

The  Chairman  said  it  was  so  very  lately  that  he  from  the  chair  mentioned 
the  purposes  for  which  they  required  additional  capital  that  he  had  nothing 
further  to  remark.  The  fact  was,  extended  capital  was  required  for  their 
immensely-increased  business.  It  was  proposed  to  issue  12,500  new  shares 
of  £20  each,  on  such  terms,  and  on  such  conditions,  and  at  such  prices  as 
the  directors  should  think  fit ;  being  distributed  p^o  raid  at  £2  premium, 
£2  on  application,  and  £5  on  the  4th  of  January;  no  other  calls  to  be 
made,  except  at  a  limit  of  three  months ;  but,  of  course,  every  facility 
would  be  afforded  to  avoid  calling  up  capital,  unless  really  required. 

The  motion  having  been  seconded,  the  question  was  put. 

Mr.  Conybeare  hoped  that  the  public  would  not  be  allowed  to  take  shares 
at  a  lower  rate  than  they  were  offered  to  the  shareholders. 

The  Chairman — Certainly  they  would  not. 

Question  put  and  carried. 

A  vote  of  thanks  to  the  chairman  closed  the  proceedings. 


LONDON  AND  BRAZILUN  BANK,  LIMITED. 

Ak  extraordinary  general  meeting  of  the  shareholders  of  this  bank  was 
held  at  the  London  Tavern  on  the  10th  October,  for  the  purpose  of  taking 
into  consideration,  and  approving  a  supplemental  agreement  relative  to 
the  amalgamation  of  the  banking  businesses  caiTied  on  by  this  bank,  and 
by  the  bank  of  Messrs.  Mau&  and  Co.  (and  which  agreement  was  confirmed 
by  the  shareholders  on  the  11th  May  last),  and  wluch  supplemental  agree- 
ment has  reference  to  the  liquidation  by  the  amalgamated  bank  of  tiie 
existing  establishments.    Mr.  J.  W.  Cater  occupied  the  chair. 

The  Secretary  (Mr.  Beaton)  having  read  the  notice  cohveningthe  meet- 
ing, read  a  short  report,  which  stated  that  at  the  special  general  meeting 
of  the  11th  of  May  last  the  details  of  the  agreement  for  carrying  into  effect 
an  amalgamation  of  this  bank  with  those  of  Messrs.  Mau&  and  Co.  and 
Messrs.  Mau^  M'Gregor,  and  Co.,  were  submitted  and  agreed  to,  and  that 
at  a  subsequent  meeting  that  agreement  was  confirmed.  The  directors  had 
accordingly  taken  the  necessary  steps  to  carry  it  out,  having  issued  the 
new  shares,  except  those  which  were  retained  for  special  purposes,  and  the 
company  had  been  duly  incorporated  under  the  title  of  the  Loudon  and 
Brazilian  and  Mau&  Bank,  Limited,  for  t)ie  purpose  of  carrying  on 
business  in  London,  Brazil,  the  Biver  Plate,  and  the  Argentine  Confed« 
eration.  The  agreement  for  the  amalgamation  proceeded  on  the  principle 
that  the  liquidation  of  the  existing  businesses  should  be  made  independent 
of  the  amalgamated  bank,  but  it  was  foimd  impossible  to  give  effect  to 
such  an  arrangement,  and  it  became  necessary  to  make  some  provision  for 
the  purpose  of  effecting  that  object  by  the  amalgamated  bank.  A  supple- 
mental agreement  had  therefore  been  made,  which  provided  for  the 
liquidation  of  the  businesses  by  this  bank  at  the  risk  of  each  bank  re- 
spectively. Messrs.  Mau&  had  submitted  a  statement  of  the  liabilities  and 
assets  of  the  several  banks  and  branches,  and  that,^th  the  balance  sheet, 
had  been  gone  over  carefully  by  the  directors,  the  result  of  which  was  that 
surplus  assets  to  the  extent  of  £1,500,000  in  Brazil  and  the  Biver  Plate  were 
shown.    Those  assets  would  be  duly  inspected  and  verified  by  the  officen^ 

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1274  Landan  and  Brazilian  Bank. 

of  the  bulk  abroad,  and  it  was  proyided  by  the  agreement  that  the  ahares 
in  the  new  bank  to  which  Messrs.  Maui  and  Co.  wonld  become  entitied 
should  not  be  delivered  except  for  cash  or  on  approved  sectuitieB. 

The  Chairman,  before  calhng  on  the  secretary  to  read  the  snpplementd 
agreement,  explained  that  the  process  of  liquidating  the  business  of  each 
bank  by  itself  would  not  only  involve  great  delay,  bat  oonsiderable  ad- 
ditional expense,  rendering  three  establishments  necessary  instesd  of  one 
untU  everting  was  liquidated.  The  balance-sheet  (up  to  the  30th  June 
last)  submitted  to  the  directors  by  Messrs.  Maui,  riiowed  assets  to  the 
amount  of  a  million  and  a  half,  so  uiat  their  minds  were  made  easy  on  the 
score  of  the  liabilities  the  bank  might  incur  in  oonsequenoe  of  this 
arrangement.  It  was  stipulated  that  the  whole  of  the  assets  of  the  three 
banks  should  be  handed  over  to  the  London  and  Brazilian  for  the  purpoee 
of  liquidating  the  business,  and  that  a  balance  should  be  stm^  at  the  end 
of  two  years,  by  which  time  it  was  anticipated  the  liquidation  would  be 
complete,  when  the  balance  due  from  one  bank  to  another  would  be 
handed  over.  The  object  of  the  directors  was  that  nothing  deMmental 
to  the  business  of  the  new  bank  should  occur,  which  might  be  the  case  if 
these  several  processes  of  liquidation  went  on  at  the  same  time. 

The  Secretary  then  read  the  supplemental  agreement,  which  was  almost 
precisely  in  the  terms  of  the  chauman's  explanation,  the  only  additioa 
being  a  clause  to  the  effect  that  the  shares  to  which  Messrs.  Maui  and  Co. 
would  become  entitled  might  be  disposed  of  by  Baron  Man4  at  a  sum  not 
less  than  the  aggregate  of  the  sum  due  to  the  bank,  and  th%t  the  prooeeds 
erf  the  same  should  be  placed  to  the  liquidation  account  of  the  said  fins 
with  the  amalgamated  bank. 

The  Chairman  having  moved,  and  the  deputy-chainnan  aeoonded,  the 
adoption  of  the  supplemental  agreement, 

A  Shareholder  inquired  whether  it  was  not  stated  at  ihef(»mer  meeCinff 
tiiat  Baron  Maui  would  not  dispose  of  the  shares  to  which  he  would 
become  entitled,  but  that  they  would  be  kept  locked  up. 

The  Chairman  explained  that  so  far  as  regarded  the  50,000  shares  whidi 
belonged  to  him,* they  would  not  be  disposed  of  by  the  baron  unless  at  a 
premium  of  £2. 10s.  per  share,  nor  would  he  permit  his  oo-partnera  to  sell 
their  100,000  shares,  exc^t  at  such  a  premium.  It  was  certainly  under- 
stood that  the  60,000  would  be  locked-up. 

Another  shareholder  expressed  an  apprehension  that  if  so  large  a  number 
of  shares  was  thrown  into  the  market,  the  concern  would  be  swamped. 

The  Chairman  said  that  if  the  baron  did  not  dispose  of  them  except  at  a 
premium  of  £2.  lOs.  it  would  be  very  satisfactory  to  the  shaiehalden, 
because  their  own  shares  must  be  at  the  same  premium. 

The  resolution  was  then  put  and  carried  unanimoualy,  and  a  lomial 
res(dution  authorising  the  diroctors  to  carry  out  the  supplemental  agree> 
ment  with  such  modifications  as  they  considered  necessary  waa  also 
agreed  to. 

The  Chairman  stated  that  there  would  be  no  alteration  in  tiie  lesmie 
fund  pending  the  liquidation,  and  he  also  announced  that  there  was  no 
probability  of  any  further  calls  being  made,  as  the  assets  of  the  bank  woaU 
be  between  £9,000,000  and  £10,000,000,  but  should  further  capital  be 
necessary,  he  wss  sure  the  dbareholders  would  be  glad  to  meet  a  csU, 
because  they  might  depend  on  its  not  being  made  unless  the  money  ooold 
be  profitably  employed.  He  was  also  able  to  state  that  they  would  he  in 
a  position  to  dedare  the  same  dividend  to  the  30th  of  June  last,  as  on  pre- 
vious occasions — (hear,  hear) — and  carry  forward  a  small  surplus ;  ana  be 
eonduded  by  saying  that  Baron  Maui  had  behaiTed  to  the  company  in  tlie 

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London  and  Mediterranean  Bank,  1275 

most  frank  and  candid  manner,  and  that  his  captal  had  not  only  been  found 
intact,  but  that  there  was  a  large  sarplos  beyond,  which  capital  and  sur- 
plus remained  in  security  to  the  bank  for  any  liabilities  they  might  incur, 
which  oould  not  but  be  satisfactory  to  the  shareholders.    (Hear,  hear.) 

This  being  tiie  whole  of  the  business,  the  proceedings  terminated,  it 
being  first  announced  that  an  extraordinary  general  meeting  would  have 
to  be  held  to  confirm  Hxe  proceedings  of  the  present. 


LOKDON  AND  MEDITERRANEAN  BANK,  LIMITED. 

As  eztraoardinary  general  meeting  of  the  shareholderB  of  this  company, 
was  held  at  the  Baltic  Sale  Room,  Threadneedle  Street,  on  the  16th  Octo- 
ber, to  consider  an  agreement,  bearing  date  the  7th  day  of  September,  1866. 
and  made  between  the  London  and  Bombay  Bank  and  Greneral  Financial 
Insurance  Agency  Corporation,  Limited,  of  the  one  part,  and  the  London 
and  Mediten'anean  Bank,  limited,  of  the  other  part,  for  the  sale  and 
transfer  of  the  business  and  property  of  the  London  said  Mediterranean 
Bank,  Limited,  to  l^e  London  and  Bombay  Bank  and  Qeneral  Financial 
Insurance  Agsacy  Ckxrporation,  Limited,  and  for  acceptiog  payment  for  the 
same  in  shares  of  the  last-named  company,  and  for  the  amalgamation  of 
the  two  companies  upon  the  terms  mentioned  in  the  said  agreement ;  and 
in  the  event  of  this  agreement  being  approved  by  the  meeting,  to  declare 
what  is  necessary  or  expedient  to  hb  done  by  the  members  (S  this  com- 
pany for  the  purpose  of  carrying  such  agreement  and  sale  into  effect. 

Mr.  W.  J.  Maxwell  took  Uie  chair. 

The  Secretary  read  the  notice  oonTeuing  the  meeting,  and  also  a  circu- 
lar in  which  it  was  stated  that  by  the  terms  of  the  amalgamation, "  the 
£20  shares  in  this  bank  will  be  exchanged  for  an  equal  number  of  £10 
shares  in  the  amalgamated  bank,  which  will  be  credited  with  the  amounts 
respectiyely  paid  up  on  the  shares  in  this  bank,  leas  one-fifth  of  such 
amounts ;  this  one-fifth  being  an  estimated  allowance  for  certain  assets  of 
this  bank  not  transferred  to  the  amalgamated  bank,  and  which  will  be 
afterwards  diyided  amongst  the  shareholders,  pro  ratd^  on  the  winding-up 
of  this  bank,"  and  that  ^  the  London  and  Bombay  Bank  was  formed  for 
the  purpose  of  carrying  on  business  between  London  and  India,  and  has  a 
subscribed  capital  of  £744,930  in  74,493  shares  of  £10  each,  of  which  £2 
per  share  have  already  been  paid ;  and  the  directors  of  that  bank,  belieying 
that  its  position  would  be  materially  improved  by  including  in  ^e  field  of 
its  opexations.  branches  at  Alexandria  and  at  Marseilles,  in  connection 
with  the  overland  route,  have  entered  into  arrangements  for  an  amalga- 
mation with  this  bank,  the  terms  of  which  will  be  submitted  to  the 

The  Chairman  said  the  notice  and  circular  which  had  been  read,  ex- 
plained pretty  fully  the  object  of  the  meeting,  and  left  him  but  little  to 
say.  The  directors  felt,  as  the  directors  of  aU  new  bonks  must  fe^  that 
they  required  strength,  and  they  thought  that  by  joining  a  concern  like 
the  London  and  Bombay  Bank,  with  a  paid-up  capital  of  a  million,  and  a 
wealthy  body  of  sharehcdders,  they  should  find  it.  By  the  amalgamation 
they  had  decreased  the  liability  of  the  shareholders,  and  they  considerably 
increased  the  strength  of  their  share  list.  In  addition  to  that  they  had  got 
some  gentlemen  of  high  standing  to  join  them  in  the  direction,  lie 
moved :— ^  That  the  agreement  bearing  date  the  7th  day  of  September 


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1276  London  and  Mediterranean  Bank* 

1865,  and  made  between  the  London  and  Bombay  Bank  and  G«nenl 
Financial  Insurance  Agency  Corporation,  Limited,  on  the  one. part,  and 
the  London  and  Mediterranean  Bank,  Limited,  on  the  other  pari,  which 
has  been  produced  and  read  to  this  meeting,  be  and  the  same  is  hen^y 
approved  and  confirmed ;  and  that  the  directors  be  and  they  are  herel^ 
autliorised  to  carry  the  same  into  effect." 

Mr.  Cargill  seconded  the  motion. 

Mr.  Everitt  said  he  presumed  before  the  amalgamation  took  i^aoe,  tlia 
old  bank  be  wound  up. 

The  Chairman  asked  if  Mr.  Everitt  alluded  to  the  new  shares  in  thf 
London  and  Mediterranean,  applied  for  the  other  day  ? 

Mr.  Everitt  said  he  did. 

The  Chairman  said  they  were  going  to  return  the  deposits  on  them. 

Mr.  Newman  inquired  whether  there  were  not  some  shareholders  in  ihe 
Continental  Bank  Cori>oration  who  refused  to  oome  in,  and  whetiier  their 
money  would  be  returned  to  them. 

The  Chairman  replied  that  there  were  parties  holding  some  600  shares 
out  of  10,000  who  refused  to  come  in.  It  was  not  intended  to  return  those 
shareholders  their  money,  it  would  be  illegal  and  inoonsistent  to  do  so,  sad 
the  loss  they  would  sustain  could  not  be  ascertained  until  the  aaaets  wen 
realised. 

Mr.  Newman  said  when  he  last  met  the  board  it  was  stated  that  their 
capital  was  intact,  and  that  the  Egyptian  connection  would  enable  tbem  to 
realise  great  profits,  and  he  was  considerably  surprised  to  receive  the 
circular  in  which  the  shareholders  were  asked  to  acquiesce  in  a  diange  ia 
the  constitution  of  the  bank  and  join  the  Bombay  company.  Snppctfdng 
the  resolution  were  carried,  what  would  be  his  position  if  he  declined  to  go 
on  with  the  company  under  its  new  designation,  and  its  new  auspices ;  s&<i 
if  he  withdrew,  what  portion  of  his  capital  might  he  expect  to  get  retuneii 
to  him  from  the  old  concern  ? 

Mr.  King  said  as  he  understood  the  bank  still  retained  the  bmines  of 
the  Landells,  which  was  a  profitable  one,  he  thought  that  under  the  cir- 
cumstances there  was  every  ground  to  hope  that  the  company  would  be 
very  prosperous. 

The  Solicitor  said  he  would  explain  how  this  amalgamation  took  pUea 
The  Continental  Bank  was  a  bank  with  £100  shares,  and  at  the  meeciog 
in  February  the  shareholders  unanimously  determined  that  it  was  de- 
sirable to  reduce  the  shares  to  £20  each,  and  to  increase  their  capital  hr  » 
million.    In  the  state  of  the  law  that  could  only  be  effected  by  inoorporas* 
ing  a  new  bank  to  take  the  business  of  the  old  one.  They  incorporated  the 
London  and  Mediterranean,  which  was  in  fact  nothing  more  than  the  old 
Continental  Bank.    At  the  same  time  they  offered  to  the  public  to  ooise  in 
and  take  the  million.     The  public  did  not  respond,  and  then  the  Load « 
and  Bombay  offered  to  come  in,  the  only  difference  being  that  their  caj^ul 
was  paid  up.    In  the  present  state  of  the  law  no  such  thing  as  an  aaial^ 
mation  could  take  place  in  form,  and  to  effect  it  the  busineaa  of  one  befiJ^ 
must  be  transferred  to  the  other.    By  that  agreement  the  businen  of  thr 
London  and  Mediterranean  would  be  transferred  to  the  London,  Boml4T 
and  Mediterranean,  and  by  that  means  the  shareholders  of  this  hmak  wiiiiu 
carry  out  their  original  intention,  and  the  business  of  the  united  bsn^ 
would  be  carried  on  with  a  capital  of  two  millions  instead  of  one.    If  id5 
shareholder  refused  to  come  in  the  directors  could  declare  his  shans  k^f- 
feited,  bitt  they  would  be  bound  to  pay  him  the  market  price  of  thta 
fourteen  days  afterwards. 
.    Mr.  Newman— Can  the  chairman  tell  us  what  the  market  price  is  I 


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Chartered  Bank  of  India,  Australia,  and  China.       1277 

The  Chairman — ^It  is  difficult  to  say,  as  the  Stock  Exchange  has  refused 
VLB  a  settlement. 

The  resolution  was  then'  put  and  carried  nem.  dis. 

The  Chairman  then  moved— *^  That  this  meeting  declares  that,  for  the 
purpose  of  carrying  into  effect  the  sale  of  the  business  and  property  of  this 
company  to  the  London  and  Bombay  Bank  and  General  Financial  Insur- 
ance Agency  Corporation,  Limited,  in  accordance  with  the  agreement  of 
the  17th  September,  1865,  which  had  been  approved  and  confirmed  by  this 
meeting,  it  is  necessary  that  the  members  of  this  company  should  accept 
in  exchange  for  each  £20  share  held  by  them  respectively  in  this  company, 
a  £10  share  ^in  the  London  and  Bombay  Bank  and  Ceneral  Financial 
Insurance  Agency  Corporation,  Limited,  credited  with  a  sum  equal  to  four- 
iifths  of  the  amount  paid  up  on  each  such  £20  share." 

Mr.  Cumming  seconded,  and  the  motion  was  imanimously  agreed  to. 

Mr.  King  moved — "  That,  in  consequence  of  the  refusal  of  the  Stock 
Exchange  to  grant  a  settlement  in  the  dealings  of  the  shares  of  tliis  bank, 
all  persons  to  whom  shares  in  the  bank  have  been  allotted,  and  who  have 
paid  the  sum  of  £2.  10s.  per  share  thereon,  are  entitled,  if  any  should  de- 
sire it,  to  have  their  allotments  cancelled  and  their  money  returned  without 
interest." 

Mr.  Bouth  seconded,  and  the  motion  was  likewise  unanimously  agreed  to. 

A  vote  of  thanks  was  then  given  to  the  chairman,  who,  in  acknowledging 
it,  said  he  intended  to  stick  to  the  concern,  and  that  he  had  every  reason 
to  believe  it  would  be  a  very  prosperous  one. 

The  meeting  then  separated. 


CHARTERED  BANK  OF  INDIA,  AUSTRALIA,  AND  CHINA. 

Ak  extraordinary  general  meeting  of  the  shareholders  in  this  bank  was 
held  at  the  London  Tavern  on  the  18th  October,  Mr.  Mitchell,  M.P.,  in 
the  chair ;  for  the  purpose  of  declaring  an  interim  dividend  for  the  half- 
year  ended  the  30tn  June  last. 

The  Secretary,  Mr.  J.  C.  Stewart,  having  read  the  advertisement  oon- 
vening  the  meeting. 

The  Chairman  said  that  he  had  on  this  occasion  to  confine  himself  to 
submitting  to  the  meeting  a  simple  resolution.  It  had  never  been  the 
custom  of  the  directors  to  submit  the  accounts  to  the  proprietors  at  a  half- 
yearly  meeting,  and  in  not  submitting  them  on  the  present  occasion  they 
made  no  exception  to  the  general  rule.  But  he  must  be  candid  with  the 
meeting,  and  tell  them  that  it  would  be  very  difficult  at  the  present 
moment  to  submit  a  perfectly  accurate  statement  of  the  acoounts  of  the 
bank,  because  they  had,  in  common  with  every  other  bank  oonnected  with 
the  east,  been  involved  in  severe  losses,  and  until  the  estates  were  wound 
up,  or  until  all  the  produce  was  sold  upon  which  they  held  the  hypotheca- 
tion, it  would  be  absolutely  impossible  to  furnish  any  statement  of  what 
had  been  the  real  losses  of  the  bank  in  the  east.  On  the  last  occasion 
when  he  addressed  the  proprietors — ^namely,  in  April  of  this  year,  they 
were  in  the  middle  of  the  crisis  which  had  since  passed  over  every  part  of 
the  east.  They  were  then  in  the  midst  of  losses,  a  candid  estimate  of 
which  was  submitted  to  the  proprietors  at  the  time,  made  up  to  the  14th 
of  March,  and  the  directors  then  recommended  a  reserve  of  i&2,0C0  out  of 
their  ways  and  means  with  a  view  to  meet  those  losses.  That  recommenda- 
tion was  adopted.  He  regretted  to  say  that  since  then  the  crisis  in  the 
east  had  become  more  severe.  It  had  now  happily  passed  away,  but  in 
.  VOL.  XXV.  97 


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1278       Chartered  Bank  oflniia^  Amtratia,  and  China. 

the  meanwliile  the  severity  of  the  erisis  had  been  Torj  greaiy  and  be  did 
not  believe  that  any  bank  connected  with  the  east  had  escaped  it.  He 
was  not  there  to  invite  invidious  comparisons  witii  other  banks,  bat  he 
believed  that  they  had  not  fared  worse  than  any  of  the  other  banks.  At 
any  rate,  as  far  as  the  directors  could  calcniatey-the  farther  losses  inourred 
by  the  bank  in  the  east  had  not  been  sufflcientlv  severe  to  warrant  thecQ 
in  advising  that  the  dividend  should  be  withheld.  (Hear,  hear.)  By  the 
terms  of  their  charter  they  were  forbidden  to  trench  upon  the  paid-up 
capital,  and  in  recommending  thopresent  dividend  they  had  not  kncArin^y, 
and  he  believed  not  at  all,  trenched  upon  the  capital  of  £800,000;  birt» 
tmquestionably,  they  had  k'enched  severely  upon  the  reserve  fond  of  the 
bank,  which  it  woidd  be  necessary  hereafter  to  make  np  againu  Tbsr 
losses  had  originated  entirely  in  the  east.  He  coold  say  that  no  hiMl  debl 
had  originated  with  the  head  office  at  home,  and  the  main  losses  had  bea 
incurred  at  Bombay,  Calcutta,  and  Shanghae.  Against  their  agents  st 
these  places  he  certainly  made  no  charge  of  dishonesty,  but  he  did  chai^ 
them  with  culpable  neglect,  remissness,  and  disobedience  ci  the  onkn  cl 
the  directors.  (Hear,  hear.)  The  persons  who  had  hitherto  acted  in  that- 
eapacity  at  Bombay  and  Calcutta  had  now  ceased  to  be  their  agents,  and 
there  was  a  person  already  on  his  way  out  to  suceeed  their  present  agent 
at  Shanghae.  As  regarded  the  Bombay  agent  such  had  been  his  cnlpahle 
'  remiBsness  in  one  instance  that  the  directors  considered  it  not  only  poesiUe 
but  even  probable  that  they  might  come  upon  his  securities.  That  was  a 
point,  however,  which  had  yet  to  be  determined.  Their  losses  at  Bombay 
had  been  unquestionably  very  severe.  As  to  the  crisis  at  Bombay,  as 
far  as  he  could  judge,  no  such  crisis  had  ooourred  in  the  history  of  tibs 
world  since  the  famous  South  Sea  bubble.  It  was  created  partiy  by  British 
speculators  and  partly  by  natives,  and  it  cnlminated  in  all  sorts  of  new 
schemes,  which  were  driven  up  by  stimulants  to  the  most  frandc  pointy 
and  which  had  resulted  in  enormous  losses.  He  believed  that  many  ot 
tiie  new  concerns  so  started  had  already  been  wound  up  or  were  on  the 
point  of  being  wound  up»  He  could  not  give  a  better  proof  of  the  sevoity 
of  the  crisis  at  Bombay  than  by  furnishing  the  quotations  of  the  valne  df 
the  shares  c^  the  Bank  of  Bombay,  which  was  a  state  bank.  On  the  15th 
of  January  of  this  year  the  shares  stood  at  £275  premium,  and  on  the  23rd 
of  June  they  were  at  2  discount.    That  was  a  state  bank.    (Hear.) 

A  Shareholder— >But  what  are  they  now. 

Chairmaui  £65  premiiim  was  the  last  quotation.  With  x^g^rd  to 
Shanghae,  the  losses  of  the  bank  thefehad  been  incurred,  in  some  respects^ 
fairly  enough ;  but  in  the  case  of  two  houses  that  had  dnoe  failed,  hue  had 
BO  hesitation  in  saying  that  their  agent  had  allowed  the  bank  to  become 
the  victim  of  a  complete  juggle.  (Hear,  hear.)  These  two  houses  were  wdl 
known,  and  he  left  them  to  their  fate,  l^ir  ^fffoX  aooommodated  tlkem  by 
drafts  of  theirs  at  fifteen  days  upon  Hong>]^ng|  took  their  bills  upon 
their  Hong-Kong  branches  at  sixty  days^and  the  oonsequenoe  was  that  the 
bank  had  been  let  in  for  a  large  sum.  He  had  nothing  to  say  exoept  that 
their  agent  had  been  guilty  of  the  most  culpable  rashness  in  giving  way  to 
these  Sms,  and  he  could  only  conceive  thai  their  object  must  have  be^ 
to  make  the  bank  the  victim  in  order  to  enable  them  to  pay  a  better  divi. 
dend  to  their  general  creditors.  (Hear,  hear.)  He  believed  that  the  crisis 
had  now  passed  \  trade  was  recovering  itself,  and  it  only  remained  for  then 
to  consider  what  was  still  the  position  of  the  bank  in  the  east  and  at  home. 
He  believed  that  the  confidence  in  their  bank,  both  at  home  and  in  the  east, 
was  perfectly  unshaken  at  the  present  moment.  They  were  now  a  tolerabh 
old-established  institution^  and  he  knew  from  their  oorrespondenos  with 


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Bank  of  Queemland.  1279 

their  present  agents  that,  as  far  a^  exchange  operations  were  concerned,  they 
could  pass  their  bills  on  the  best  of  terms  there,  and  if  they  wanted  money 
at  home,  they  ootdd  raise  it  on  the  best  of  terms.  Their  deposits  had  in- 
creased rather  than  fallen  off ;  their  credit  remained  the  same,  and  he  saw, 
therefore,  no  reason  why  they  should  not  renew  their  business  again  on 
the  same  f ayonrable  terms  as  heretofore.  (Hear,  hear.)  He  should  inform 
the  proprietors  that  they  were  about  to  lose  one  of  their  directors,  in  the 
person  of  Mr.  Bell,  who  was  retiring  in  consequence  of  his  unfortunate 
failure.  Mr.  Bell  had  been  with  them  from  the  beginning,  and  a  more 
honest  and  attentive  director  it  would  be  impossible  to  find.  He  could  say 
^th  oonfidence  that  the  bank  would  lose  no  sum  of  any  magnitude  by  his 
failure,  and  very  likely  would  lose  nothing  at  all.  (Hear^  hear.)  The  hon. 
gentleman  conduded  by  moving—'*  That  an  interim  dividend  at  the  rate 
of  6  per  cent,  per  annum,  free  of  income-tax,  be  declared  for  the  half-year 
ended  the  SOth  of  June  last,  to  be  payable  on  or  after  the  26th  inst." 

Mr.  Jones  seconded  the  resolution. 

In  reply  to  a  shareholder, 

The  Chairman  said  he  could  not  state  to  what  extent  the  reserve  fund 
'would  be  trenched  upon.  He  had  already  stated  that  it  would  be  seriously 
trenched  upon. 

The  resolution  was  then  put,  and  carried  unanimously. 

On  the  motion  of  Mr.  W.  H.  Mann  a  cordial  vote  of  thanks  was  accorded 
to  the  chairman,  who  briefly  acknowledged  the  compliment,  and  the  meet- 
dug  terminated. 


BANK  OF  QUEENSLAND,  LIMITED. 

TflX  fourth  ordinary  general  meeting  of  the  proprietors  of  this  bank  was 
held  on  the  18th  October,  at  the  bank  oflGices,  Old  Broad  Street,  City ;  Sir 
Joshua  Eowe^  C.B.,  in  the  chair. 

The  following  report  was  read  : — 

"  The  directors  have  pleasure  in  reporting  to  the  shareholders  the  result 
•of  the  bank's  operations  for  the  half-year  ended  80th  June,  1866.  In 
the  accompanying  accounts  it  will  be  noticed  that  the  balance  of  undivided 
profit  amounts  to  £12,381. 170. 7(i.,  or  about  12  per  cent,  per  annum  on  the 
paid-iqi  capitaL  The  directors  propose  to  appropriate  this  balance  of 
profit  as  follows  :— £1,600  to  be  added  to  reserve  fund;  £688. 10s.  4<i. 
to  be  written  off  preliminary  expenses  account ;  £2,861.  6«.  3e2.  to  be 
carried  to  next  half-year,  being  rebate  on  bills  discounted  current  at  SOth 
June^  1866 ;  £6,261  in  payment  of  a  dividend  of  16«.  per  share,  equal  to 
6  per  cent,  per  annum ;  £130.  80.  9d.  in  payment  of  income-tax  on  the 
dividend .;  and  the  balance  of  £940.  IZs.  Zd.  to  be  carried  forward  to  profit 
loss  new  account.  It  is  gratifying  to  the  directors  to  be  able  to  present 
this  report,  which  must  be  satisfactory  to  the  shareholders.  Tlie  gross 
earnings,  after  paying  interest  on  deposits,  and  providing  for  bad  and 
doubtful  debts,  it  will  be  noticed,  are  large,  amounting  to  upwards  of  17 
per  cent,  per  annum  on  the  capital  paid  up.  Deposits  and  circulation  have 
increased  41  and  40  per  cent,  respectively,  and  the  number  of  new  accounts 
opened  has  been  220,  an  increase  in  the  half-year  of  60  per  cent.  A  large 
and  lucrative  business  has  now  been  established  by  the  bank,  which,  it  is 
confidently  anticipated,  will  yet  be  still  largely  increased,  and  there  is, 
therefore,  every  encouragement  to  expect  that  the  operations  in  future 
half -years  will  continue  U)  show  equally  satisfactory  residts.  The  colony 
is  still  prospering ;  the  pastoral  interest  will  be  much  enhanced  by  the 


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1280  Bank  of  Queenslatid. 

facilities  which  the  rail  ways  now  under  oonstruction  will  afford  in  mcymg 
the  wool  and  other  station  produce  to  market  and  to  the  sea-board.  The 
gold-fields  are  being  gradually  developed,  and  the  precious  metal  now  forms 
an  important  item  in  the  list  of  exports.  The  number  of  public  works  in 
progress,  and  the  great  demand  for  labour,  together  with  a  considerable 
and  continual  emigration^  keep  up  an  increasing  trade  and  an  active  demand 
for  money  and  banking  accommodation.  It  is  proposed  that  the  dividetid 
announced  in  this  report  shall  be  paid  in  the  usual  manner,  on  Monday, 
23rd  October  instant." 

Statement  qf  Liabilities  and  Assets  on  30th  June,  1865. 

LIABnJTUSS. 

Dr. 

Capital      £207,900    0  0 

Circulation         19,881    0  u 

Depoaits 95.719  18  lo 

Bills  payable  and  other  liabilities          96,707    7  i 

Reserve  fund     1.500    0  0 

Undivided  profits  on  30th  June,  1865 12.381  17  7 

£434.090    S   7 

ASSETS. 

Or. 

Specie  and  cash  at  bankers  £19.802  16  5 

Mils  discounted,  bills  receivable,  and  other  secarities       406,202    1    8 

Preliminary  expenses,  amount  as  per  first  statement,  31st  Decem- 
ber. 1868,  £5.962.  19«.  lid.    Written  off  to  17th  May,  1865. 

£1,374.  9ff.  7d 4,588  10  4 

Bank  premises,  fnmimre,  &c ^        ...       3,496  15  i 

£434.090    3   7 

Pn^  and  Loss  Account,  3Xith  Junt,  1665. 

Current  charges,  including  salaries,  rent,  taxes,  stationery.  8cc., 
at  head  office.  £1.222.  15*.' 2d.,  ditto  at  branches,  including 
all  preliminary  expenses  and  first  charges  at  new  branch  at 
Toowoomba,  £3.945.  I5s.  4d.,  making  a  total  of  ...       •«•     £5.168  10  € 

Dirucio  s*  and  auditors*  remuneration 610   0  tf 

Dividend  (free  of  income-tax)  on  8,348  shares  at  lot.  per  share, 

£6,261;  income-tax  on  dividend,  £130.  8j.  9d. 6.391    8  9 

Amount  written  off  preliminary  expenses     688  10   4 

Amount  added  to  reserve  fund     1.500   0  0 

Rebate  on  bills  current  30th  June,  1865        2.861    5   3 

Balance  carried  to  profit  and  loss  new  account       940  IS   S 

£18,190    8  [ 

Balance  from  last  account £856   4   9 

Gross  profits  to  30th  June,  1865,  after  paying  interest  on  de- 
posits, and  allowance  for  bad  and  duubuul  debts         17,335   3  4 

£18,190   M 

The  Chairman,  in  movinfl;  the  adoption  of  the  report,  an  abstnct  of 
which  has  already  been  published,  said  that  the  directozs  had  much  ntis- 


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Bank  of  Queensland.  1281 

faction  in  meeting  the  proprietors,  and  in  laying  before  them  a  report 
which  showed  snch  satisfactory  results.  During  the  past  six  months  the 
dejKwits  and  circulation  had  increased  respectively  40  and  41  per  cent.,  and 
the  accounts  60  per  cent.  The  gross  profits  had  been  £17,335,  which, 
with  £856  brought  over  from  the  preceding  six  months'  accounts,  amounted 
to  £18yl90.  After  paying  all  expenses,  both  here  and  in  the  colony,  and 
adding  £1,500  to  the  reserve  fund,  which  was  consequently  raised  to 
i£3,000,  they  were  able  to  recommend  a  dividend  at  the  rate  of  6  per  cent, 
per  annum,  free  of  income-tax.  He  was  anxious  to  say  a  word  on  the  item 
of  rebate  on  ftlls  current,  both  because  the  sum  was  considerable  with 
reference  to  the  amount  they  had  to  dispose  of,  namely,  £2,861,  and  because 
on  previous  occasions  they  had  not  been  in  the  habit  of  rebating  bills  dis- 
counted. The  amount  having  hitherto  been  insignificant,  they  had  followed 
the  practice  of  some  banks  which  did  not  include  this  item  in  the  accounts. 
After  giving  the  matter  a  full  consideration  they  had  come  to  the  conclusion 
that  the  proper  course  to  adopt  was  to  take  ofif  the  amount  mentioned  in 
the  accounts  for  rebate.  (Hear,  hear.)  He  might  mention  that  although 
it  was  deducted  now  it  did  not  actually  come  out  of  their  profits,  but  was 
only  delayed,  and  would  come  into  their  profits  next  half-year.  He  oon- 
clnded  by  stating  that  since  the  last  meeting  a  vacancy  in  the  board  had 
been  filled  up  by  the  selection  of  Mr.  H.  Davidson,  a  gentleman  of  high 
character  and  standing  in  the  city,  but  that  the  vacancy  caused  by  the 
retirement  of  Mr.  Mangles  in  consequence  of  delicate  health,  had  not  been 
filled,  nor  was  it  proposed  to  do  so. 

Mr.  H.  Brockett  seconded  the  resolution. 

Mr.  DarvaU  complained  that  after  he  had  taken  a  leading  part  in  the 
formation  of  this  bank  and  in  promoting  its  interests,  without  having  re- 
ceived a  single  shilling  from  it,  he  had  been  most  cavalierly  treated  by  the 
proprietors,  who,  when  he  went  to  the  colony  for  a  short  time,  expressed  a 
wish  that  he  should  retire  from  the  board  on  the  groimd  that  he  was  chair- 
man of  another  bank.  It  was  true  that  his  position  in  the  colony  placed 
him  as  chairman  in  a  wealthy  bank,  but  so  far  from  his  connexion  with 
that  bank  being  injurious  to  this,  it  was  exactly  the  reverse.  Acting, 
however,  on  the  wish  of  the  shareholders,  he  had  retired,  but  he  took  this 
opportunity  of  explaining  to  them  that  he  was  not  at  all  in  their  debt,  but 
that  in  point  of  fact  he  had  conferred  considerable  obligations  on  the  bank. 
He  thought  their  business  operations  were  somewhat  limited  in  comparison 
with  other  banks ;  but  at  the  same  time  their  manager,  Mr.  Anderson,  had 
shown  himself  highly  qualified,  not  only  to  conduct  what  business  they  had 
in  hand,  but  to  extend  it  if  he  had  larger  means  placed  at  his  disposal. 
He  (Mr.  DarvaU)  thought  there  ought  to  be  a  local  board  of  directors  in 
the  colony,  who  could  test  the  securities  and  ascertain  fully  the  character 
of  the  assets.  If  there  was  a  board  of  three  directors  at  Brisbane  the 
number  in  London  might  be  judiciously  reduced  as  vacancies  occurred, 
through  the  simple  process  of  not  filling  them  up.  He  thought  also  that 
the  accounts  would  be  improved  by  deducting  the  rebate  from  the  profit,  in- 
stead of  adding  it  to  liabilities,  because  the  profit  then  shown  would  bo 
actual,  instead  of  a  portion  of  it  being  a  sort  of  estimate  derived  from 
discounting  bills  not  due.  He  expressed  himself  in  favour  of  increasing 
the  capital,  being  confident  that  the  bank  had  a  great  future  before  it  if 
sufficient  funds  were  placed  at  the  disposal  of  the  manager  to  enable  him 
judiciously  to  extend  the  business. 

Mr.  Brockett,  in  reply  to  the  remarks  of  his  friend  Mr.  DarvaU,  admitted 
that  the  board  were  much  indebted  to  that  gentleman  for  his  assistance 
when  the  bank  was  first  established,  and  was  confident  that  his  services  in 


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1282  Oriental  Bank  Corporation, 

the  colony  would  still  be  of  yery  great  benefit  to  it.  When,  bowem^ 
some  of  the  shareholderB  expressed  an  opinioii  that  that  geatleman  ou^^ 
sot  to  continue  on' the  board,  it  was  the  duty  of  the  other  directontooom- 
municate  that  opinion  to  him.  Mr.  Darvall  at  once  rengned  his  sesti 
and  he  assured  that  gentleman  no  one  regretted  the  circimiskanoe  more 
than  his  colleagues  did.  With  respect  to  the  suggestion  of  a  locallwiid 
he  did  not  approve  of  it,  because  his  experience  had  taught  him  thit  local 
boards  often  tended  to  the  injury  rather  than  to  the  advantafe  of  the  iiati< 
tution,  because  they  frequently  availed  themaelTes  of  their  pootion  to 
obtain  advances  either  for  themselves  or  their  fri^ids,  and  iBstesd  of  bdog 
an  assistance  often  did  a  great  deal  of  damage.  Independent  of  tfait 
objection,  however,  there  was  another  in  the  present  instance,  and  that  «h 
that  none  of  the  shares  in  the  bank  which  were  reserved  for  tibe  parpoK  of 
idlotment  in  the  colony  had  been  taken  up,  and,of  course,  it  was  imponbU 
to  form  a  local  board  unless  the  capital  was  increased^  aswl  a  large  number 
of  shares  were  taken  up  in  the  colony. 

The  report  and  accounts  were  then  unanimously  adc^ted^  and,  on  the 
motion  of  Mr.  Darvall,  a  cordial  vote  of  thanks  was  given  to  the  dmixmui 
and  directors  for  their  able  management  of  the  bank,  which  cooidoded  the 
proceedings. 


ORIENTAL  BANK  COKPOBATION. 

A  QVFB&AL  meeting  of  the  shareholders  of  this  corporation  was  held  on 
the  I9th  October  at  the  offices  of  the  corporation,  Threadneedle  Street  > 
Mr.  H.  G.  Gordon  in  the  chair,  for  the  purpose  of  declaring  an  interim 
dividend  for  the  half-year  ended  the  30th  June  last. 
The  advertisement  convening  the  meeting  having  been  read. 
The  Chairman  said  he  regretted  that  the  dividend  which  he  was  aboot 
to  declare  was  less  than  that  declared  for  the  correspondinff  period  Itft 
year.  The  causes  lay  in  a  nutshelL  They  were  well  aware  uat  the  yetf 
1864.  and  a  great  part  of  the  year  1865,  would  ever  be  memc^able  in  tbe 
annals  of  East  Incfia  and  China  commerce  and  banking  as  one  of  the  m<«t 
disastrous  that  had  occurred  for  many  years.  That  period  was  to  the 
directors  one  of  intense  anxiety,  care,  and  trouble,  and  he  sinoerelv  kosted 
that  he  should  never  see  the  like  again.  la  thia  oountry,  about  the 
period  to  which  he  had  alluded,  a  tremendous  fall  took  place  in  all  kinds  <» 
imported  produce,  particularly  from  India  and  China;  credit  became  very 
much  contracted,  losses  were  exceedingly  severe,  and  eventually  failures, 
unsurpassed  for  magnitude  and  extent,  occurrM.  There  was  scarcely  s 
mail  which  arrived  from  India  that  did  not  bring  accounta  of  some  disaster 
having  occurred  there.  They  were,  in  fact,  between  two  firea.  What  were 
the  directors  to  do  ?  To  endeavour  to  g^t  out  of  the  ran^  of  shot  as  sood 
as  possible.  They  restricted  their  business,  and  in  doing  so  they  vero 
most  vigorously  and  efficiently  supported  by  their  representativeB  in  the 
east.  !nie  result  naturally  was  that  their  profits  were  very  much  car- 
tailed,  but  they  avoided  losses  which  he  had  no  doubt  th^  would  other- 
wise nave  incurred.  Losses  they  had  incurred,  but  far  leas  than  he  at 
one  time  had  anticipated,  and  they  had  determined,  on  what  he  tboqgh^ 
was  the  wisest,  the  moat  honest,  and  best  course — to  meet  those  losses  at 
once.  fHear,  hear.)  They  had  written  them  all  off  (hear,  hear) ;  th^ 
had  made  ample  provision  for  any  contingencies  that  might  occur,  vhiie 
they  carried  forward  a  considerable  sum  for  next  year.    He  was  &vai^ 


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Mauritius  Lcmd  Credit  and  Agency  Company.        1283 

tb&t  it  waa  no  oooBoJatioii  to  fellow-BuffereTs  to  know  that  oihara  had 
been  in  the  aame  predicament  as  themselves^  and  it  was  with  no  feeling 
of  that  kind  that  he  should  allude  to  one  bank,  but  in  order  thafc  the 
meeting  might  see  how,  with  far  greater  advantages  at  their oommand,  that 
bank  Buffered  much  more  severely  l^an  th^  had  done.  He  alluded  to 
the  Bank  of  Bombay — a  state  bank,  in  the  centre  ol  the  very  best  informa- 
tion, and  supported  with  an  immense  capital  and  with  immense  powers 
of  wariouB  kuids.  That  bank  at  its  meeting,  which  took  place  a  few 
months  ago,  announced  that  its  losses  during  the  period  to  which  he  (the 
Chairman)  wa»  referring  amounted  to  £300,000,  and  that,  therefore,  they 
could  not  dedaro  any  dividend.  It  was  from  no  invidious  feeling  that  he 
mada  that  remark,  nor  from  any  desire  to  show  that  others  might  hav« 
been  great  sujSerers;  but  it  was  to  show  that  institutions  carefully 
managed  during  the  terrible  crisis  that  orevailed  could  not  escape  the 
losses  in  which  all  banks  connected  with  the  east  were  more  or  less 
involved.  Now  for  the  reverse  of  the  medaL  Confidence  had  again  been 
xestored,  credit  was  very  sound,  and  there  was  every  reason  to  anticipate 
a  great  increase  to  their  business.  Many  offers  had  been  mads  to  them, 
showing  the  high  position  and  credit  which  the  Oriental  Bank  Corpora* 
tion  stiLL  maintained ;  and  he  trusted  that  when  he  had  the  j^easure  of 
meeting  them  again  at  the  annual  meeting  ia  April  next,  instead  ol 
having  to  make  an  apology  for  a  rather  shorter  dividend  than  usual,  he 
should  have  to  address  them  in  the  language  of  congratulation.  He  con- 
cluded by  moving,  "  That  an  interim  dividend  of  £1.  5«.  per  share,  free 
of  income-tax,  be  declared  lor  the  half-year  ended  tiie  30th  June  last,  to 
be  payable  on  and  after  the  let  November  next.'^ 

The  resolution,  having  been  seconded,  was  put  and  carried,  and  tiie 
proceedingi  then  terminated. 


MAUBITIUS  LAND  CREDIT  AND  AGENCY  COMPANY, 
LIMITED. 

Thb  second  ordinaxy  general  meeting  of  this  company  was  held  on  the  29th 
September,  at  the  o^oes  of  the  company,  25,  Gracechurch  Street ;  Major- 
General  H.  P.  Burn  in  the  chair.  The  following  report  was  taken  as 
read: — 

**  The  directors  have  much  pleasure  in  meeting  tl^e  proprietors  for  the 
second  time,  and  submitting  to  them  the  annex^  statement  of  the  assets 
and  liabilities  of  the  company  to  30th  June  ultimo ;  and  the  profit  and 
loss  account,  showing,  with  the  small  balance,  £101.  5s.,  brought  forward 
from  30th  September,  1864,  a  net  profit  of  £3,502.  IQs.  lid.  (or  nearly  15 
per  eent.)  for  the  nine  months  ending  30th  June;  a  result  wluoh  they 
deem  most  satisfactory.  In  ocder  to  comply  with  the  company's  regula- 
tions, the  directors  have  carried  to  the  credit  of  reserve  fund  the  sum  of 
£500,  leaving  a  balance  of  £3,002. 16«.  lid.  to  be  dealt  with  bv  the  pro- 
prietors — and  which  they  recommend  should  be  appropriated  as  follows : — 
1st.  That  a  dividend  of  10  per  cent.,  or  4s.  per  share  (free  of  income-tax), 
be  dedared,  which  will  absorb  a  sum  of  £2,438.  lis.  M,  2nd.  That 
£471.  5«.  5a.  be  carried  to  the  credit  of  preliminaiy  expenses.  3rd.  And 
that  tiie  balance  of  profit  be  carried  forward*  George  Lyall,  Esq.,  being 
the  director  retiring  by  rotation,  and  being  eligible,  offers  himself  for  re- 
election; the  board  have  much  pleasure  in  recommending  him  to  the 
proprietors.    The  remuneration  of  the  company's  auditor  in  London  for 


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1284  Ottoman  Financial  AMoeiaiion. 

the  past  year  will  be  fixed  at  the  meetdng ;  and  the^liredon  leoommead 
that  a  further  amount  be  voted  for  the  senrioea  of  the  oompaay's  andiion 
in  Mauritius  to  30th  June  Qlt«  In  oondiudon,  the  directors  beg  to  onn- 
gratulate  the  proprietors  on  the  snocess  which  has  attended  the  oompioy's 
operations  during  the  past  year." 

The  chairman,  in  moving  the  adoption  of  the  report,  reminded  t^ 
shareholders  that  at  their  last  meeting  they  were  informed  that  the  cam- 
pany  had  commenced  business  in  the  Mauritius  with  every  proanped  of 
success,  and  he  congratulated  ihe  shareholders  on  the  progress  which  bad 
since  been  made.  The  accounts  showed  that  nearly  the  whole  of  their 
capital  was  invested,  and  all  the  investments  which  had  been  made  ven 
of  a  satisfactory  character,  the  loans  being  for  terms  reaching  to  twenty- 
one  years,  which  was  considered  generally  to  be  the  best  stiited  to  the 
wants  of  the  colonists.  The  great  demand  for  loans  best  indicated  bow 
greatly  such  a  company  as  this  was  required,  securing  great  advantages,  as 
it  did,  alike  to  the  borrower  and  the  lender.  As  yet  he  was  happy  to  ny 
they  had  not  had  to  encounter  bad  debts  (hear),  but  they  had  opened  t 
reserve  fund,  which  would  be  increased  as  circumstanoee  mi^t  reqniTe. 
Another  security  they  had  was  the  sinking  fund,  which  was  an  adTSBtage 
to  the  borrower.  It  was  a  ooUatoral  security,  which  in<Hreased  the  aeoiity 
to  the  debenture  holder,  and  placed  him  in  the  first  rank  of  secoritieB.  Is 
recommending  the  payment  of  a  dividend,  the  directors  had  kept  in  ntw 
the  policy  of  declaring  such  an  amount  as  it  was  hoped  would  be  ood* 
tinned  in  after  years.  They  had  met  with  the  most  cordial  oo-opentioa 
of  the  board  at  the  Mauritius,  and  the  directors  were  happy  to  adnMw. 
ledge  their  efficient  services  during  the  past  year.  In  conduskm,  the 
hon.  g«itleman  moved  that  the  report  be  adopted,  and  that  a  dividend  of 
10  per  cent.,  or  4a.  per  share  (free  of  income-tax),  be  dedafed. 

Mr.  G^rge  Lyall  seconded  the  motion,  which  was  carried  unanimonaly. 

Mr.  George  Lyall  was  re-elected  a  director ;  £25  was  voted  td  the 
auditor  in  London,  and  a  like  sum  to  those  in  the  Mauritius. 

A  special  vote  of  thanks  was  moved  by  Captain  Qossett,  and  seoooded 
by  Sir  S.  Villiers  Surtees,  D.C.L.,  to  the  Mauritius  board  in  very  enlogistie 
terms. 

After  a  brief  conversation,  in  which  questions  on  details  of  seooasia 
were  put  and  satisfactorily  answered,  the  meeting  separated. 


OTTOMAN  FINANCIAL  ASSOCIATION,  LIMITBD. 

The  second  ordinary  general  meeting  of  the  shareholders  was  hdd  at  the 
London  Tavern  on  the  10th  October — Oeorge  P.  Kitson,  Esq.,  in  the 
chair — for  the  purpose  of  receiving  the  report  of  the  directors  and  for 
general  business. 

The  advertisement  convening  the  meeting,  and  the  minutes  of  the 
adjourned  meeting  of  the  28th  IPebruary,  having  been  read  and  confirmed, 
The  report  was  agreed  to  be  taken  b^  read.  It  was  as  follows  :-- 
"  The  directors,  in  their  first  report  to  the  shareholders,  submitted  the 
accounts  of  the  association  to  the  31st  of  December,  1864,  proposing  th^ 
the  financial  year  should  terminate  on  the  30th  of  June  in  each  year,  sod 
ihkj  therefore  now  furnish  the  proprietors  with  the  balance-sheet  aa  at 
the  30th  of  June,  1865,  together  with  the  profit  and  loss  accoont  for  the 
six  months  to  that  date,  both  duly  audited  Since  the  gemiral  meeting, 
held  on  the  28th  of  February  last,  the  directors  have  ad<tod  to  the  board 


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Ottoman  Financial  Association.  1285 

gentlemen  of  high  oommercial  atanding  and  inflnenoe  ;  and  pnrsnant  to 
intentions  expressed,  they  appointed  a  general  manager  in  London,  but 
the  result  not  being  in  accordance  with  the  directors'  expectations,  the  ap- 
p>ointment  has  been  terminated,  and  the  matter  of  securing  the  services  of 
another  manager  engages  attention.  Although  the  six  months  ending  30th 
June  last  cannot,  for  various  reasons,  amongst  them  the  reduction  in  the 
price  of  cotton  consequent  on  the  cessation  of  hostilities  in  America  and  the 
losa  of  crops  through  the  inundations  in  Turkey,  be  considered  to  have 
been  favourable  for  the  operations  of  the  company,  yet  it  will  be  seen 
from  the  profit  and  loss  accoimt  that  the  gross  profits  for  the  half-year 
were  £23,292. 19s.  8d.,  which,  with  £6,833.  U.  6d^  balance  of  last  account, 
enables  the  directors,  after  payment  of  all  current  expenses,  to  propose 
that  £959.  Sa.  be  written  off  preliminary  expenses,  £2,000  put  to  the 
reserve  fond,  and  £18,079.  14s.  (less  a  smaU  amount  for  rebate)  carried 
over  to  meet  any  losses  which  may  result  from  the  suspension  of  payment 
by  their  agents  at  Smyrna,  Stephen  Maltass  and  Anthony  Pittaoo,  which 
the  directors  regret  to  announce  occurred  in  May  last.  The  directors  duly 
dispatched  a  representative  to  Smyrna  to  take  charge  of  the  bridich  and  to 
arrange  all  outstanding  matters ;  and  from  information  received  they  have 
every  reason  for  believing  that  the  losses  will  be  more  than  covered  by  the 
sum  now  carried  over ;  but  until  they  are  in  a  position  to  state  definitively 
the  exact  amount  of  loss,  they  consider  it  prudent  to  recommend  to  the  pro- 
prietors the  carrying  forward  of  the  whole  sum  rather  than  declare  a  dividend 
on  the  present  occasion.  The  directors  have  to  state,  in  conclusion,  that 
certain  arrangements  are  in  view,  which,  if  completed,  and  the  operations 
of  the  company  be  not  entirely  confined  to  the  Turkish  empire,  must 
materially  advance  the  interests  of  the  shareholders,  and  they  have  still 
fall  confidence  in  the  future  pro6i)erity  of  the  association.  Two  directors, 
Frederick  Harrison,  Esq.,  and  F.  B.  Henshaw,  Esq.,  retire  at  this  meeting, 
and,  being  eligible,  offer  themselves  for  re-election.'' 

Balance-^heet,  dOM  June,  1865. 
Dr. 

Capital  called  up,  viz. : — London,  £16  per  share  on  10,000  shares, 
£150,000,  less  arrears,  £19,370;  Constantinople,  £15  per  share 
on  4,779  shares,  £71,685,  less  arrears,  £22,715;  Smyrna,  £15 
per  share  on  2,045  shares,  £30,675,  less  arrears,  £14,943 — 
Total,  16,824  shares        £195,331     0    0 

Sundry  creditors  on  bills  payable,  current  deposits,  and  other 
accounts       •      

Re^errefund     

Profit  and  loss  account,  amount  standing  to  credit,  as  per  an- 
nexed statement 


Or, 

Cash  in  hand  and  at  hankers  in  London  and  branches 

Bills  receivable         

Investments  and  loans  finclnding  £3,501.  16#.  disbalances  an- 

adjusted  between  the  Dranches)      

Office  farniture  in  London  and  Turkey        

Preliminary  expenses        


.  383,984  17 
,   2,000  0 

.  21,039  2 

10 
0 

0 

£602,354  19  10 

.  £4,560  15 
.  135,146  3 

.  452.071  17 

982  3 

9,594  0 

10 
5 

0 

6 

1 

£602,354  19  10 

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1286  Otiaman  linandal  As8oeiatum. 

PrqfU  and  Lou  Aeeounifor  the  sia  months  ending  90^  June,  186S. 

Dr. 

Current  expenses,  inclading  salaries,  directors*  fees,  stationery, 
advertisements,  rent,  and  all  other  charges  —  London, 
£3,058.  14«.  lilt;  branches,  £6,028.  4s.  Sd.,  making  a  total  of    £9,066  19    t 

To  balance  to  be  dealt  with  as  follows  ^—written  off  preliminary 
expenses,  £959.  Ss. ;  added  to  reaerre  fond,  £2,000 ;  earned 
to  new  account,  subject  to  an  amoont  for  rebate,  not  exceeding 
£300,  and  subject  to  proyiuion  for  bad  and  doubtful  debu 
(chiefly  Smyrna),  the  amount  of  which  is  not  at  present  de- 
terminable, £18,979. 14f.,  making  a  total  of    ...      .^         .^     21,039   2    0 

£30,126    1    2 

Or. 

Balance  brouffht  forward  flpom  last  aocowit .•    £6,883    I    6 

Gross  profits  for  the  half-year 23,292  19    9 

£3(U26    1    2 


The  Chainnan,  i&  moTing  the  adoption  of  the  report  and  acoooniB,  i 
the  directors  woidd  have  had  much  more  pleasure  if,  in  presenting  tliia 
report,  they  could  have  felt  it  right  to  reoommeud  the  payment  o#  a 
reepectable  dividend ;  but,  though  they  showed  a  good  amoont  of  profiti 
except  in  Smyrna,  the  board  thought  it  their  duty  to  reoommend  that  which 
was  suggested  in  the  rejwrt — ^namely,  to  carry  oyer  the  profits  to  the  aaxt 
half-year's  account,  by  which  time  they  would  be  enabled  to  asoeirtain  tka 
actual  value  of  i^eir  assets  at  Smyrna,  where  nnhaivpily,  the  buiiiMas 
had  been  conducted  in  a  mauner  contrary  to  the  desixe  of  ih^  dizeokon 
and  to  the  expectations  of  the  shareholders.  But  the  time  had  anivBd 
when  he  was  called  upon  to  give  a  contradiction  as  to  the  reported  J 


which  had  occurred  at  &nyma  through,  the  failure  of  their  agents  there, 
Messrs.  Stephen  Maltass  and  Anthony  Pittaoo.  In  the  month  of  April  they 
appointed  a  general  manager,  and  deputed  him  to  go  over  to  Smyrna^  hot 
his  mission  proved  a  failure,  lor,  instead  of  making  the  arrangements  that 
were  given  him,  he  unfortunately  differed  from  everybody.  Another  gentle- 
man was  appointed  subsequently  who  had  acted  in  tiie  best  possible  manner 
in  the  face  of  great  difficulties,  and  the  result  was  that  an  arrangement  was 
proposed  which  had  the  approval  of  the  board.  Into  the  details  of  that  ar- 
rangement it  would  not  be  wise  at  the  present  moment  to  enter,  but  the  prin- 
dpfd  features  of  that  agreement  were  that  Maltaaa  andPittaoo,thetwoagea&ts 
in  Smyrna,  whose  suspension  had  occurred,  had  made  over  all  their  property, 
and  had  guaranteed  a  certain  amount  of  assets  due  to  this  oompany.  To 
that  statement  he  did  not  mean  to  commit  himself  on  the  present  oocasion, 
but  he  trusted  that  the  recommendation  contained  in  the  report  would  be 
approved,  and  that  the  profits  would  be  carried  on  to  the  neqrt  half-year. 
But  he  could  not  help  saying  that  the  want  of  unanimity  of  feeling  and 
harmony  which  had  prevaaled  at  the  last  meeting  had  had  a  most  dasoag- 
ing  effect;  it  had  for  a  time  seriously  affected  their  credit,  and  had  left  the 
board  in  a  most  unenviable  position.  They  had  had  great  *«ff8^l^MK  to 
oont^d  against ;  but,  in  spite  of  hostile  rumours,  no  man  ooald  aaj  this 
association  had  ever  failed  to  meet  its  engagements.  (Amlaue.)  He 
alluded  to  the  prospect  of  the  cooperation  of  parties  of  the  highest  standing, 
and,  in  conclusion,  moved  that  the  report  and  statement  ol  aooooats  be 
adopted. 


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Orienfaf  Financial  Carporation.  •  1287 

The  Hon.  Riohard  Thos.  Bowley  having  seconded  the  motion, 

A  Shareholder  inquired  whether  any  information  of  a  more  specifia 
character  would  be  given  as  to  these  negotiations  ? 

The  Chairman  said  he  could  not  do  so  without  mentioning  the  names  of 
the  persons  with  whom  they  were  in  course  of  negotiation.  As  regarded 
the  foundation  of  the  arrangement,  it  would  simply  amount  to  a  favourable 
opportunity  of  amalgamating  with  persons  whose  character  and  fame  were 
known  all  over  Europe  (hear,  hear),  and  they  might  be  inoori>orated,  he 
hoped,  with  this  firm.  The  general  view  of  such  proposed  arrangement 
would  be  that  the  holders  of  shares  of  £20  each,  with  £10  paid-up,  would 
have  a  liabililrjr  of  £10.  At  present  the  shares  were  £50,  having  £15 
paid-up  on  each  share,  with  a  liability  of  £35  hanging  over  each  share. 
The  proposition  was  to  pay  up  £5,  making  £20  per  share  in  the  present 
eompany,  and  then,  when  the  amalgamation  took  place,  they  would  receive 
in  exchange  for  each  of  those  shares  on  whidi  they  had  paid  up  £20  per 
share,  two  shares  of  the  amalgamated  company  of  £10  each. 

The  motion  was  carried  unanimously. 

On  the  question  of  the  remuneration  to  be  given  to  the  auditors, 

Mr.  Thom|)flon  proposed  that,  looking  to  the  increased  labours  of  their 
auditors,  their  remuneration  should  be  increased  to  £50  ;  and  the  motion 
was  seconded,  amidst  an  eaq[>re88ion  of  dissent. 

Mr.  Cooper  (of  the  firm  of  Johnstone,  Cooper,  Wintle,  and  Evans),  as 
one  of  the  auditors,  begged  to  remind  the  shareholdera  of  the  necessity  of 
always  having  a  good  and  searching  audit  of  their  accounts,  and  gentlemen 
who  devoted  their  time  to  the  matter  had  a  just  right  to  be  properly  paid. 
But  he  was  in  the  hands  of  the  shareholders. 

The  Chairman  begged  to  bear  testimoi^  to  the  great  labour  which  their 
auditors  had  bestowed  on  their  aoeotmfak 

The  motion  was  put  that  the  remuneratioik  be  £60,. which  was  negatived. 

Mr.  Qreen  and  others  suggested  that  the  remuneration  should  be 
regulated  l^  the  payment  or  non-payment  of  a  dividend. 

It  was  then  moved  and  seconded  that  the  remuneration  be  £25 ;  and 
the  motion  was  carried. 

Mr.  Galsworthy,  one  of  the  aoditors,  said  that  the  vote  having  been 
passed  he  could  assure  the  meeting  that  whether  the  grant  was  £25  or 
£50,  it  was  a  matter  of  small  momei^  to  him  ;  but  he  coidd  not  admit  the 
principle  of  making  the  payment  of  the  auditors  depend  upon  the  dividend. 
These  accounts  had  cost  them  more  than  three  times  the  trouble  they  had 
had  on  the  former  occasion.  Surely  auditors  ought  to  be  fairly  re- 
monerated. 

Mr.  Peter  Crellin  moved  a  vote  of  thanks  to  the  chairman,  which  was 
carried  with  acclamation:  and  the  chairman  having  responded  thereto 
the  meeting  separated. 


OMENTAL  FINANCIAL  CORPORATION,  LIMITEP. 

Ax  extraordinary  general  meeting  of  shareholders  in  this  corporation  was 
held  on  the  12th  Catcher,  at  the  London  Tavern,  Bishopsgate-street ;  Mr. 
Brown  occupied  the  chair. 

The  notice  convening  the  meeting  having  been  read, 

The  Chairman  ezplioned,  tbot  with  the  notice  of  the  meeting  two  other 
circulacs  were  sent  to  each  shareholder,  one  was  a  notice  for  a  meeting  of 
shareholdexs  in  the  London  and  Mediterranean  Bank,  and  the  other  a 
report  and  balanoe^shaet  of  the  London  and  Bombi^  Bank.    After  the 


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1288  London  MercanfiTe  Discount  Company, 

London  and  Mediterranean  Bank  bad  agreed  to  amalgamate  with  them 
they  applied  for  a  settlement,  which  waa  refused.  They  had  taken  for 
granted  that  the  whole  of  the  50,000  shares  wonld  oome  in,  instead  of 
which  only  43,000  or  44,000  came  in.  Upon  those  gronnds  the  settlement 
was  refused  to  the  Mediterranean,  and  they  had  agreed  to  amidgamate  with 
the  London  and  Bombay  Bank,  the  capital  of  which  was  intact.  The 
advantage  of  an  amalgamation  wonld  be  that  the  liabilities  of  the  share- 
holders wonld  be  reduced  from  £40  per  share  to  £16  per  share.  He  th«i 
moved  as  follows : — ^  That  the  directors  be  at  liberty  to  carry  into  e&ct 
the  amalgamation  referred  to  in  the  resolution  passed  at  the  last  genenl 
meeting  without  requiring  the  fulfilment  of  the  condition  of  the  Ixntdon 
and  Mttiiterranean  Bank,  Limited,  obtaining  a  settlement  upon  the  I/>n- 
don  Stock  Exchange."  It  was  necessary  to  psss  that  resolution  to  euble 
them  to  amalgamate  with  the  London  and  Mediterranean,  and  to  ensUe 
the  Mediterranean  to  amalgamate  with  the  London  and  Bombay  Bank. 

Mr.  Lysley  briefly  seconded  the  resolution,  which  was,  after  a  slight 
discussion,  carried  with  only  one  dissentient. 

A  second  resolution  authorising  the  voluntary  winding-up  of  the  com- 
pany having  been  adopted,  a  vote  of  thanks  to  the  chairman  and  directon, 
moved  by  Mr.  Stuart,  and  seconded  by  Major  Boss,  brought  the  proceed- 
ings  to  a  close. 


LONDON  MERCANTILE  DISCOUNT  COMPANY,  LIMITED. 
Am  extraordinary  general  meeting  of  the  shareholders  of  this  oomptny  vi^ 
held  at  the  London  Tavern  on  the  18th  October,  for  the  purpose  of  reeeiring 
the  report  of  the  committee  of  shareholders  appointed  at  the  last  meeting, 
to  confirm  the  resolution  passed  at  the  extraordinary  general  meeting  « 
the  company  held  on  the  19th  dt  September,  to  wind  up  the  oompuiy 
voluntarily,  or  to  pass  such  other  resolutions  as  the  sfaaraholden  might 
deem  advisable.    Mr.  John  Greary,  the  chairman  of  the  directors,  presided. 

The  chairman  moved  ^  That  the  resolution  for  winding  up  the  ooinpsnj 
voluntarily,  passed  on  the  19th  September,  be  and  is  hereby  ccmfiimed.'' 

Mr.  Thomas  Flight  remarked  that  they  had  been  oouTened  to  reoeiTe  * 
report,  and  he  submitted  that  that  report  should  be  read  before  any  farther 
business  was  done. 

Mr.  Edwin  H.  Galsworthy  then  read  the  report  of  the  oommittee  of  in- 
vestigation, as  follows : — 

"•  The  London  Mercantile  Discoont  Company,  Limited^  was  promoted  (7 
Mr.  Archibald  Kintrea ;  the  memorandum  of  association  is  dated  the  7th 
January,  1864 ;  the  nominal  capital,  £500,000,  divided  into  10,000  share* 
of  £60  each,  first  issue,  6,000  shares ;  and,  according  to  the  prospectaa,  vai 
formed  to  *  carry  on  and  extend '  the  business  of  an  'important  diaocmnt 
establishment' — ^^ satiof aoto^  arrangements'  having  been  made 'for 
acquiring  the  business.'  By  an  agreement  dated  2nd  Januiry,  1^ 
between  Mr.  Kintrea  and  Mr.  Whi&L,  seeretaxy  to  and  on  behalf  of  tbe 
British  Beversionary  and  Investment  Company,  Mr.  Kintrea  proposed  to 
bring  out  a  discount  company  with  a  nominal  o^ital  of  £600,p0(^  ^ 
10,000  shares  of  £60  each,  first  issue,  6,000  shares,  he  (Mr.  Kijiti««) 
agreeing  to  purchase  the  business  and  assets  of  the  British  Beveniooai7 
and  Investment  Company,  which  business  was  not,  as  has  been  soppo^ 
confined  within  the  ordinary  limits  of  reversionary  oompsniss,  M  is- 
eluded  the  discounting  of  bills  of  exchange  and  promissory  noteii  *^ 


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London  Mercantile  Discount  Company.  1289 

wLich.  company  was  the  important  discount  establishment  mentioned  in 
the  prospectus  of  the  London  Mercantile*  Discount  Company  as  having 
beeu  acquired  under  '  satisfactory  arrangements.'     Subject  to  the  intended 
discount  company  being  established  with  a  capital  of  not  less  than  two- 
tliirda  of  the  issue  of  5,000  shares,  Mr.  Kintrea  covenanted  to  use  his  best 
exertions  to  successfully  establish  the  proposed  discount  company,  and  to 
pivy  the  whole  of  the  expenses  relating  to  the  establishment  of  the  com- 
^lany  *  prior  to  the  date  of  the  allotment  of  shares  ;'    the  directors  not  to 
proceed  to  an  allotment  unless   two- thirds  of  the   first  issue  of  5,000 
shares  were  subscribed  for  and  taken  up.     On  the  otlier  hand,  Mr.  Whiffin, 
ou   behalf  as  aforesaid,  covenanted  with   Mr.   Kintrea   to  exchange  the 
shares  of  the  British   Reversionary  and  Investment  Company,  amoimt- 
iiig    to  1,580   in  all,  for  the  like  number   of  shares  in  the  proposed 
discount  company ;   and  in  case  the  pro]x>sed  discount  company  should 
Xnircbase  the  goodwill  of  the  business  of  the  British  Reversionary  and 
Investment  Company  at  the  sum  of  £9,000  and  take  to  their  assets  and 
liabilities,  then  the  British  Reversionary  and  Investment  Company  would, 
out   of  the  £9,000,  pay  to  Mr.  Kintrea  £5,000  in  consideration  of  his 
'  services,  risk,  and  expenditure,'  and  would  give  the  proposed  discount 
company  a  sufficient  amount  of  good  debts,  cash,  <bc.,  to  balance  the 
liabilities  of  the  British  Reversionary  and   Investment  Company.      At 
a  meeting  of  the  subscribers  of  the  London  Mercantile  Discount  Company, 
consisting  of  Messrs.  James  Barrett,  Henry  A.  Hatton,  Richard  LadeU, 
Frederick  Slack,  Richard  Buller,  John  Parry,  and  Andrew  Forsyth  (each 
of  whom  subscribed  for  five  shaj-es,  which,  as'  soon  as  the  company  was 
formed,  were  transferred  to  Mr.  Kintrea),  held  on  the  8th  January,  1864, 
at  Mr.  Kintrea's  offices,  the  agreement  referred  to,  dated  the  2nd  January, 
18C4,  was  read,  agreed  to,  and  adopted ;  and  it  was  resolved  that  the 
common  seal  of  the  London  Mercantile  Discount  Company  be  affixed  to  a 
second  agreement,  one  between  the  London  Mercantile  Discount  Company 
and  ArcMbald  Kintrea,  which  was  also  '  read,  considered,  and  adopted,'  for 
carrying  into  effect  the  before-mentioned  purchase  of  the  British  Reversion- 
ary and  Investment  Company  ;  at  this  meeting  Messrs.  J.  W.  C.  Aylett,  G. 
Anderson,  George  Bermingham,  Henry  Chateris,  F.  H.  Gilbart,  John  Geary, 
and  Edmund  Clench,  directors  of  the  British  Reversionary  and  Investment 
Company,  and  John  Denton,  E.  T.  Gourly,  and  James  Rymer,  were  ap- 
pointed directors  of  the  Discount  Company.      This  second  agreement, 
dated  the  day  of  the  subscribers'  meeting,  namely,  8th  January,  1864,  in 
reciting  that  part  of  the  first  agreement,  dated  2nd  January,  1864,  wluch 
states  fliat  Mr.  Kintrea  had  agreed  to  pay  the  expeqses  of  the  establish- 
ment of  the  proposed  disooimt  company  'prior  to  the  date  of  the  allotment 
of  shares,'  contains  the  important  words,  not  to  be  found  in  the  first 
agreement,  namely, '  provided  no  allotment  of  shares  be  made.'     In  other 
respects  the  second  agreement  coincides  with  the  first,  covenanting  that 
the  directors  of  the  London  Mercantile  Discount  Company  shall  not  pro- 
ceed to  an  allotment  unless  two-thirds  of  the  first  issue  of  5,000  shares  be 
subscribed  and  taken  up ;  to  give  London  Mercantile  Discount  Company's 
shares  for  British  Reversionary  and  Investment  shares ;   to  give  £9,000 
for  the  goodwill  of  the  British  Reversionary  and  Investment  Company's 
business ;  and  to  take  the  debts  and  liabilities  upon  the  same  terms  as 
those  mentioned  in  the  first  agreement.    The  first  i^eement  divides  the 
£9,000  into  £4,000  for  good^Sd,  and  £6,000  for  Mr.  Kintrea,  for  which  he 
was  absolutely  to  pay  '  all  expenses  prior  to  the  aUotment  of  shares '  in  the 
new  company;  but  the  second  agreement  puts  the  £9,000  as  for  the  goodwill 
only,  and  differs  further  and  most  materially  from  the  first  (although  both 
agreements  are  by  the  minutes  said  to  have  been  considered,  agreed  to,  and 

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1290  London  Mercantile  Discount  CoaqMnf. 

tulopied),  inMmudi  as  Mr.  Kmtrea  by  it  was  to  pay  the  said  expeiuMi,  not 
absolately,  but  prorided  *  no  allotment  of  shares  be  made.'  The  pro^iectiB 
"of  the  London  Mercantile  Disoonnt  Company  having  been  some  time  before 
the  public,  and  about  3,000  shares  only  (▼is.  about  1,420  by  the  public,  and 
1,580  by  the  British  Reversion»Ty  and  Investment  Gompany's  share- 
Wders)  having  been  applied  for,  and  not  two-thirds,  as  rwpiirad  by  ths 
^agreements,  Mr.  Hardwick,  of  the  firm  of  Messrs.  Sole,  Tamers  and  Hard. 
irick  (introduced,  as  your  committee  believe,  by  Mr.  Kintrea),  at  ameei^ 
ing  of  the  directors  of  the  London  Mercantile  Discount  Company,  hdd  <a 
the  18th  January,  1864^ '  attended  and  submitted  to  the  board  a  propoaal 
for  their  acquiring  by  purchase  the  business  of  &  oeriain  discount  firm; 
but  before  giving  the  name  of  the  firm  in  questioD,  he  wished  them  to 
understand  that  the  matter  came  to  him  through  the  introduotian  of  ]fr. 
A.  Jay,  who  stipulated  thai  he  should  receive  a  fee  of  £2,000,  pfovided 
the  du-ectors  came  to  terms  with  the  parties,  and  concluded  the  parchsei 
Mr.  A.  Jay  was  then  introduced,  and  requested  before  proceeding  fnrkfaer. 
that  a  resolution  should  be  passed,  agreeii^  to  pay  him  the  abOTe  sum; 
wherupon  it  was  agreed  to  by  the  board.  1&.  Hardwidk  then,  at  tiie  re- 
quest of  Mr.  Jay,  *  informed  the  board  that  the  firm  was  Messrs.  Wosnen- 
tey  and  Burt's,  and  gave  the  terms  and  conditions  upon  whidi  tiiey  were 
willing  to  transfer  their  business,  and  identify  themselves  with  the  eom- 
pany.^  After  discussion,  it  was  resolved — ^That  &  committee;,  viz., 
Messrs.  Bermingham,  Geary  and  Gilbart,  be  appointed  to  oondode  the 
n^otiations  for  the  purchase  of  the  business  submitted  by  Mr.  Jay.^ 
KM^otiations  were  thus  commenced  for  the  purchase  of  Messrs.  Wooienley 
nnd  Burt's  business  ^  and  at  a  meeting  of  the  committee,  held  26tti  January, 
1864,  at  which  your  solicitor,  Mr.  L^ris,  was  present,  the  Ixxteof  MeasrSb 
Womerslcy  and  Burt  were,  as  your  committee  are  given  to  undentand, 
Tequeated  as  evidence  of  the  stated  profits  of  the  Irarineas ;  and  the  r». 
•quest  having  been  refused,  for  reasons  then  given,  the  n^gotiatkma  were 
ior  the  moment  suspended^  but  at  a  meeting  on  the  following  day,  to 
whidi  Mr.  Lewis  was  not  summoned,  the  point  seems  to  have  been  wsved. 
The  committee  concluded  an  arrangement,  which  was  ooaofirmed  by  the 
board,  for  the  purchase  of  M&srs.  Womersley  and  BurPs  busineBS  for  the 
irams  of  £13,000  in  ctth,  and  £13,000  in  shares,  varying  aooordiDg  t9 
profits^  the  minimum  being  £10,000  cash,  and  £10,000  in  shares.  Under 
«  deed  embodying  this  arrangement,  Messrs.  Womersley  and  Root  were 
appointed  directors  of  the  company  for  a  period  of  three  yean  from  1st  of 
March,  1864,  one  to  attend  daily,  as  a  member  of  the  dauy  oommiltee,  at 
a  salary  of  £760  a  year  each :  Messrs.  Womersley  and  Burt  being  boend, 
under  a  stringent  covenant,  not  to  enter  into  discount  buainesB  <b  Iheir 
own  account  for  aperiod  of  fifteen  years  from  1st  BCarch,  1864.  ConeenuBg 
the  power  of  the  board  to  make  the  preceding  salaried  arxangemeBt,  and  as 
to  the  liability  of  Messrs.  Womersley  and  Burt  to  refund  the  aalaries  paid, 

Suestions  may  arise  hereafter.  On  the  condusion  of  the  arrangemeeit  wi& 
lessrs.  Womersley  and  Burt,  further  applications  for  shares  wwe  soon 
received;  and  in  the  allotment  of  the  shares  l^MO  instead  of  1  J5Bt>  were 
allotted  to  the  British  Reversionary  *and  Invertment  Company's  share- 
holders,  and  the  balance  of  the  6,000  to  the  pubUo.  The  short  aBoteenl 
or  difference  between  1,380  shares  whidi  were,  and  1,590  shares  which 
were  to  have  been  allotted  to  the  British  Beversionaiy  and  Investment 
Company's  shareholders,  vis.,  200,  fell  upon  Mr.  Edmund  CSeneh,  who 
inst^  of  getiiufi^  300  shares  in  the  new  company  in  lien  of  SCO  in  the  old!, 
got  100  only  in  the  new  company,  and  was  compensated  for  the  non-allot- 
ment of  200  shares  of  £5  eacb  hy  the  payment  ol  £l,O0O]n  cMh.  In  dse 
course  the  agreed  sum  of  £6,000  was  paid  to  Mr.  Kintrea,  and  £4,000^  tk 

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London  MercanliU  Dmount  Company.  1291 

Vialanoe  of  the  £9,000  for  good-will  of  the  British  Tteversionar^  and  In- 
vestment  Company's  business  was  put  to  the  credit  of  the  British  Keversion«> 
ary  Investment  Company's  assets.  Shortly  afterwards  acoounts  were  sent 
in  to  the  company  for  certain  *  expenses  prior  to  allotment,'  which  the 
Becretary,  on  12th  February,  1864,  forwarded  to  Mr.  Kintrea,  as  having 
been  sent  to  the  company  instead  of  to  him.  Mr.  Kintrea  wrote,  on  the 
20th  February,  1864,  'perfectly  astonished'  at  being  asked  to  pay  the 
debts  of  a  company  from  which  he  had  ^  never  received  a  shilling.'  The 
directors  were  advised  by  the  solicitor  that,  under  the  agreement  of  the 
2ud  January,  1864,  Mr.  Kintrea  was  clearly  liable,  but  a  committee,  con- 
fdsting  of  Messrs.  G^ary,  Gilbart  and  Bermingham,  was  appointed  to  meet 
and  confer  with  Mr.  Kintrea  on  the  subject  \  and,  notwithstanding  yout 
solicitor's  advice,  the  committee  reported,  on  the  Ist  of  March,  1864,  that 
the  company  was  liable,  and  became  so  under  the  ninety-fourth  clause  of 
the  articles  of  association — the  committee  considering  the  whole  case  rested 
xm  the  articles  of  association  and  the  agreement  ol  the  8th  January,  1864 
(in  which,  as  has  already  been  explained,  were  inserted  words  not  to  be 
found  in  the  first  agreement),  ignoring,  apparently,  altogether  the  first 
agreement,  that  dated  the  2nd  January,  1864  (under  which  the  solidtot 
had  adviseid  that  Mr.  Kintrea  was  liable)  ^  and  the  company  consequently 
paid  the  expenses,  amounting  in  all  to  upwards  of  £700.  Whether  Mr-w 
Kintrea  is  liable  for  the  return  of,  or  whether  the  directors  are  not  person- 
ally  liable  for  the  amount  thus  paid,  are  questions  for  yomr  legal  advisers. 
The  resources  and  busiuess  of  the  British  B,eversionary  and  Investment 
Company  appear  to  have  been  small,  and  looking  at  the  £5,000  as  having 
been  paid  to  Mr.  Kintrea  as  promotion  money,  your  committee  will  not 
tiiscuBB  whether  the  good- will  of  the  business  was  worth  the  remaining 
£4,000,  seeing  that  that  «um  Was  mainly  a  matter  of  account — the  British 
Beversionary  Company's  shareholders  not  having  divided  any  cash.  With 
reference  to  Messrs.  Womersley  and  Burt^s  business^  those  gentlemen  have 
stated  to  your  committee  that  they  did  not  seek  to  sell  their  business,  but 
were  sought  by  Mr.  Bardwick  \  and  in  recard  to  Mr.  Hardwick's  stat^ 
ment '  that  the  matter  came  to  him  through  the  introduction  of  Mr.  Jay,' 
Messrs.  Womersley  and  Burt  state  they  did  not  know  Mr.  Jay,  nor  had 
they  at  the  time  of  the  negotiations  any  knowledge  of  an  introduction  fee. 
Your  committee,  at  an  interview  with  Messrs^  Geary  and  Gilbart,  were 
told  by  those  gentlemen,  in  reply  to  a  question  upon  what  evidence  of  the 
value  of  Messrs.  Womersley  and  Burt's  business  the  directors  agree  to  pay 
1;he  sums  mentioned  in  the  deed,  that  they  had  made  inquiries  at  the  time, 
and  found  Messrs.  Womersley  «nd  Burt  to  be  Inghly  respectahle,  and  had 
l>een  told  that  it  was  not  usual  in  such  cases  to  have  the  books  produced. 
Mr.  Geary  did  not  remember  sufficient  of  what  took  place  at  the  time  of 
the  negotiations  to  be  able  to  afibrd  your  committee  any  positive  informa- 
tion ;  but  two  of  the  committee  who  negotiated  with  Messrs.  Womersley 
and  Burt,  vis.,  Messrs.  Bermingham  and  Gilbart,  have  stated  that  the 
business  was  represented  to  them  by  Messrs.  Womersley  and  Burt  as 
yielding  large  profits,  certainly  upwards  of  £6,000  a.year  $  also  that  Messrs. 
Womersley  and  Burt  trt»ted  the  business  was  capable  of  great  extension, 
and  that  there  would  be  for  the  future  working  c^  the  company  deposits 
to  a  considerable  extent.  Messrs.  Womersley  and  Burt  entireiy  deny 
having  made  any  such  statements  ^  but  say  that,  on  the  contrary^  they 
stated  at  the  lime  they  would  not  pledge  themselves  to  any  figures.  Under 
these  circumstances,  and  finding  that  Messrs.  Womersley  and  Burt's  books 
were  not  in  possession  of  the  company,  your  committee  ask  those  gentle- 
men to  mraduce  them  (the  committee  being  of  opinicm,  as  they  informed 
Messrs.  Womersley  and  Burt  that  their  books  became  the  property  of  the 


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1292  London  Mercantile  Discount  Company. 

oompany  on  the  purchase  of  the  boBiness),  but  Messrs.  Womersley  and 
Burt  declined  doing  so.  Messrs.  Womersley  and  Burt  have  attributed  the 
failure  of  the  business  to  the  want  of  capital,  and  have  stated  that  they 
were  not  aware  at  the  time  of  the  transfer  of  their  business  of  the  heavy 
sums  the  London  Mercantile  Discount  Company  was  imder  engag^nentto 
pay  to  Mr.  Kintrea  and  others,  and  that  they  were  under  the  belief  that 
further  shares  woidd  have  been  issued  and  more  capital  called  up.  The 
heavy  preliminary  payments  and  the  small  capital  to  work  upon  appear 
to  your  committee  to  have  been  the  main  cause  of  failure,  the  bad  debts 
not  appearing  to  be  disproportionate  to  the  amount  of  the  bills  discounted. 
Whether,  however,  Messrs.  Womersley  and  Burt's  businese  was  worth  wluu 
the  directors  agreed  to  pay  for  it,  is  a  question  the  shareholders  generaUj 
can  as  well  judge  as  your  committee ;  but  to  enter  into  a  deed,  covenant- 
ing in  any  case  to  pay  those  gentlemen  a  heavy  sum  for  a  businaa 
concerning  the  value  of  which  no  positive  evidence  was  stipulated  for  or 
produced,  was  a  course  which  your  committee  cannot  too  strongly  condema. 
Tour  committee  find  that,  under  the  head  of  salaries,  in  the  company's 
accounts,  is  included  sums  taken  by  the  directors  for  committee  fees  at  the 
rate  of  £300  a  year,  which  they  consider  to  be  contrary  to  clause  77  of  thd 
articles  of  association,  which  states  that  the  directors  shall  be  remunerated 
for  their  services  as  may  from  time  to  time  be  fixed  by  the  shareholders  ; 
and  the  liability,  therefore,  of  the  directors  to  refund  will  be  a  farther 
question  for  your4egal  advisers.  Your  committee,  in  the  course  ol  the 
various  meetings  they  have  held,  examined  carefully  the  last  printed  state- 
ment of  account  or  estimated  balance-sheet,  issued  on  the  eve  of  the 
general  meeting  held  on  the  19th  September ;  and  although  they  do  not 
agree  in  the  balance  there  shown  of  assets  over  liabilities,  yet  they  trust 
t£at  with  careful  management  matters  may  be  so  arranged  as  at  least  not 
to  entail  any  further  loss  upon  the  shareholders.  With  every  desire  to 
save  as  much  as  possible  of  the  proprietors'  property,  your  committee  sug- 
gested to  Messrs.  Womersley  and  Burt,  that,  looking  to  thepreeent  position 
of  the  company,  as  estimated  in  the  printed  statement  referred  to,  and 
bearing  in  mind  the  large  cash  sums  they  received  and  have  retained  for 
the  goodwill  of  their  business,  viz.,  £10,000,  they  should  propose  to  take 
the  company's  offices,  goodwill  of  the  business,  assets  and  liabilities  into 
their  own  hands,  upon  an  undertaking  to  pay  back  so  much  per  ahare  to  the 
proprietors ;  but  those  gentlemen  declined  to  entertain  the  suggestion,  nor 
have  they  made  any  counter  proposal.  On  the  10th  instant  your  commit- 
tee were  requested  by  resolution  of  the  board  to  state  when  a  oopy  of  their 
report  would  be  furnished  to  the  directors,  to  which  a  reply  was  seat  that 
the  report  of  the  committee  would  be  ready  for  submission  to  the  meetiDg 
of  shareholders  on  the  18th  instant,  in  accordance  with  the  resolntioii 
passed  at  the  meeting  on  the  19th  of  September.  In  submitting  the  pie- 
ceding  outline  of  facts  to  the  shareholders,  your  committee  reoonunend 
that,  subject  to  the  approval  of  liquidators,  whose  nomination  the  coin- 
mittee  prefer  to  leave  entirely  to  the  shareholdersy  and  who  shall  be 
empowered  to  seek  the  assistance  of  the  court  if  necessary,  the  volnntaiy 
winding-up  of  the  company  be  confirmed  and  proceeded  with ;  for  looking 
at  the  past  management  and  results,  they  consider  that  oourae  far  prefer- 
able to  making  further,  calls  upon  the  shareholders  for  the  purpose  of 
carrying  on  the  company  at,  in  all  probability,  still  further  loss. 

^  Gborob  a.  Addibos. 

"  JoBK  Boyd. 

'<  Edwik  H.  Qalswobzet. 

^  QsoBas  Wflivrat, 
"17th  October,  1866." 


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London  Mercantile  Discount  Company.  1293 

The  chainnan  inqnired  if  any  one  liad  any  obsenrations  to  make  ? 
For  some  time  there  was  no  response.  At  length — 
Mr.  J.  Flight  said  as  no  one  else  rose  he  woidd  make  a  few  observations. 
It  appeared  to  him  that  the  interests  of  the  company  had  not  been  looked 
as  well  after  in  this  concern  as  had  the  interests  of  the  directors.  He 
observed  that  a  charge  was  made  of  £300  for  fees  to  the  directors.  Now 
he  distinctly  recollected  that  at  a  former  meeting  it  was  stated  that  no 
salary  would  be  paid  to  the  directors  except  with  the  approval  of  the 
general  body  of  shareholders,  and  the  shareholders  had  never  sanctioned 
any  such  payment.  He  should  like  to  know  whether  any  farther  out- 
goings in  the  shape  of  salaries  were  going  on,  and  if  so  to  what  amoimt. 
He  sdso  wanted  an  explanation  aa  to  how  the  property  of  the  shareholders 
had  been  sacrificed.  What  they  had  got  was  the  suspended  business  d! 
Messrs.  Womeraley  and  Burt.  Unless  some  satisfactory  explanation  on 
these  points  was  afforded  him  he  should  seek  it  through  the  medium  of  the 
Court  of  Chancery. 

Mr.  Alger  said  that  he  should  like  to  know  how  it  was  that  the  directom 
permitted  Mr.  Edward  Clench  to  forego  the  allotment  of  200  shares,  and 
give  him  £1,000  in  lieu  thereof.  He  should  be  quite  ready  to  join  Mr. 
Flight  and  others  in  having  these  matters  investigated  by  the  Court  of 
Chancery.  He  should  also  like  to  know  who  were  the  orkdnal  subscribers 
to  this  company  who  signed  the  articles  of  association.  He  believed  thai 
they  were  derks  in  the  office  of  the  promoter,  and  persons  of  that  class, 
who  each  took  five  shares,  and  made  up  the  magic  seven  who  could,  by  law, 
form  a  company  for  any  purpose  whatsoever,  and  when  it  was  formed 
these  five  persons  passed  any  resolution  which  their  lord  and  master  put 
before  them.  On  that  they  purchased  the  British  Beversionary  and  In- 
vestment Company,  which  was  not  formed  as  a  discount  company  but  was 
cue  under  a  guise.  He  could  not  understand  how  the  directors  of  this  com- 
pany could  have  entered  into  such  a  transaction  as  this.  The  report  of 
the  committee  was  a  very  long  document ;  it  had  only  just  been  placed 
before  them,  and  he  thought  the  best  course  would  be  to  adjourn  the  meet- 
ing in  order  to  give  them  time  to  consider  it. 

Mr.  Morris  (solicitor)  said  tlie  committee  had  properly  abstained  from 
forming  any  judgment  on  the  facts  which  they  had  rather  imderooloured 
than  overcoloured.     With  regard  to  the  parties  who  signed  the  articles  of 
asj^ociation,  he  believed  it  was  a  common  practice  to  get  the  formal  docu- 
ment signed  by  almosVany  person  they  could  get  hold  of.    But  bethought 
tUat  the  articles  of  association  of  this  company  had  an  importance  which 
they  did  not  possess  per  »e.     There  was  a  point  to  be  considered,  which 
was  whether  the  whole  thing  was  not  rotten  and  unsound  from  the  begin- 
ning.    (Hear,  hear.)    What  did  they  find  1    Why,  that  certain  parties  in- 
terested in  another  company,  called  the  British  Reversionary  and  Invest- 
xaent  Company,  conceived  a  plan  of  getting  out  of  that  company,  not  by 
selling  it  to  bona  fide  parties  who  would  purchase  it,  but  by  getting  up 
a^nother  company ;  and  what  they  did  in  effect  was  to  continue  the  British 
Iteversionary  Company  with  a  new  name.    It  seemed  to  him  to  be  useless 
Uy  go  into  such  matters  of  detail  as  whether  the  directors  had  received 
^CSOO  and  Mr.  Clench  £1,000 ;  but  if  the  promoters  of  this  company  had 
primed  off  somethinff  on  the  shareholders  which  was  not  what  was  repre* 
fluted ;    if  they  had  done  that  which  in  the  language  of  the  Court  of 
Z?  liancery  was  called  a  fraud,  they  must  indemnify  the  shareholders  of  this 
company.    He  suggested  that  counsel's  opinion  should  be  taken  on  thia 
>oint. 

Mr.  Lewis  said  if  they  wanted  to  aggravate  the  present  position  of  affairs, 
VOL.  XXV.  98 


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1294  London  Mercantile  Discount  Company, 

and  have  still  farther  loBsea  io  lament  over,  they  wonld  adopt  Hr.  Moirii's 
suggestion.  In  order  to  show  that  he  (Mr.  Lewis^  was  a  thoroiiglily  on- 
prejudiced  x)eTaon,  he  might  inform  tiiem  thai  he  nad  nothing  to  do  vith 
the  formation  of  &e  company,  directly  or  indirectly.  He  did  noi  bKyv  of 
itB  existence  until  it  was  formed,  and  he  neyer  was  adyertiaed  as  its  solid- 
tor.  But  after  the  company  was  formed,  it  was  a  question  whe&er  the 
business  of  Messrs.  Womendey  and  Burt  should  be  purchased,  and  he  m 
called  in.  He  had  no  connection  with  the  British  BeveTsioDarf  aod 
Inyestment  Company,  and  therefore  he  entered  into  the  matter  as  a 
stranger.  So  far  as  regarded  the  suggestion  of  Mr.  Morris,  he  did  not 
hesitate  to  say  that  it  would  be  an  utter  delusion  on  the  part  of  the  share- 
holders to  cause  any  delay  in  the  winding  up,  still  less  to  incur  any  expei^ 
The  original  prospectus  dt  the  company  stated  that  it  was  formed  for  the 
purpose  of  taking  up  another  business,  and  he  bdieyed  that  at  that  time 
the  writer  of  the  money  article  in  one  of  the  journals  made  the  signifieaot 
remark  that  the  promoters  did  not  condescend  to  state  what  the  busiBeK 
was.  But  by  the  articles  of  association,  whidi  unfortunately  by  the  lav  of 
the  country  were  held  to  be  a  distinct  notice,  the  name  of  the  company  m 
distinctly  referred  to,  and  by  clause  7  it  was  stated  that  the  directoraahodd 
carry  into  effect  an^  contract  which  had  been  made  on  behalf  of  the  eoo- 
pany  with  the  British  Reyersionarv  and  Inyestment  Company.  The  oib- 
mittee  had  not  been  able  to  show  uiat  any  one  person  connected  with  the 
British  Beyersionary  and  Inyestment  Company  had  receiyed  any  heo^t 
from  this  contract,  and  at  the  time  that  company  was  entirely  out  of  <kbt, 
except  the  ordinary  current  liabilities.  And  it  was  not  the  caae,  he 
belieyed,  that  Mr.  Kiutreawaa  himself  a  shareholder  of  that  oompaay. 
With  regard  to  Mr.  Clendii,  it  appeared  that  instead  of  haTingtotake 
£600,  he  was  lucky  enough  to  set  more* 

Mr.  Morris  remarked  Siat  l£r.  Clench  was  Mr.  Kintrea's  partner. 

Mr.  Lewis  said  it  might  be  so,  but  that  did  not  lessen  the  effect  of  tiiai 
whidi  he  was  statiug ;  for,  with  the  exception  of  Mr.  Clench  getting  £1,0<J0, 
not  (me  of  the  directon  of  the  British  Bieyersionary  Company  obtained  any 
cash  or  any  adyantage  by  the  transfer.  The  case  stood  Uius,  that  ihii 
company  was  formed  to  take  oyer  the  business  of  the  British  BevmoDiiy 
Company.  Whether  tiiat  was  a  good  bargain  or  not  was  another  ([aestioB, 
but  there  did  not  appear  to  be  the  slightest  fraud  in  the  hiatoTy  of  the 
case,  and  he  tiiiought  the  shareholders  would  do  themselyes  aserioos  inj^ 
by  taking  the  matter  into  the  Court  of  Chancery. 

Mr.  lAoTm  said  what  he  had  adyised  was,  not  that  they  should  eoo^ 
mence  a  euit,  but  that  they  should  take  the  opinion  of  counsd. 

The  Chairman  said  he  was  placed  in  a  yeiy  painful  position.  The  report 
which  had  been  read  to  than  went  deei^y  ^^  ^^  details  of  the  oompaoj. 
The  directors  apjdied  to  haye  a  copy  furnished  them  in  time  for  then  to 
consider  it  before  the  meeting,  but  that  was  refused,  and  th^  were,  UitfOj 
fore,  quite  unprepared  to  say  a  single  word  upon  it,  except  this,  that  they  had 
not  done  one  single  act  which  would  not  bear  the  light  of  day.  Thfiy  v^ 
the  largest  sharuiolders  in  the  company,  and  had  lost  Uieir  own  m^^* 
With  regard  to  the  question  of  adjournment,  the  directon  wjwQ  ^ 
wind-up  as  soon  as  possible,  and  it  was  requisite  that  the  order  to  viad*^ 
should  be  confirmed  within  a  month.  The  fees  had  been  alluded  ^  °^ 
dUstinetly  stated  at  the  last  meeting  that  all  that  waa  recmyed  was  £75  a 
quarter  for  the  daily  attendance,  it  did  little  more  than  pay  his  cab  hue 
They  declined  to  dx«w  the  cheques  last  montl^  and  they  were  doi^g  ^ 
they  could  to  saye  expense.  With  regard  to  Mr.  Clench^  mors  BhareaW' 
ii{)plied  for  than  they  had  shares  to  allot    Mr.  Qlench  was  to  hate  had 


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London  Mercantile  Diecount  Company.  1295 

900  in  lieu  of  those  he  held  in  the  old  company,  bnt  he  let  another  appli- 
cant, A  B,  have  200,  and  the  directors  paid  Mr.  Clench  the  premium  he 
oould  then  have  sold  them  at.  He  did  not  see  how  it  made  any  difference. 
(Laughter.) 

Mr.  Addison  said  they  were  told  that  at  the  annual  meeting  the  directors 
said  they  would  not  take  any  fees,  but  he  would  remind  them  that  a  reso- 
lution was  put  that  they  be  paid  a  salaiy,  and  ilhat  it  was  ne^tived. 
KevertheiesSy  after  that,  ihej  took  fees  for  six  months,  and  the  chairman's 
cab-hire,  it  seemed,  was  rather  expensive,  for  out  of  £300  he  took  £156, 
and  the  remaining  £144  was  divided  among  the  rest.  He  thought  they 
ought  to  have  the  opinion  of  some  eminent  counsel  as  to  whether  the 
British  Beversionary  Company  was  not  liable  to  this  company. 

A  Shareholder  inquired  who  was  Mr.  Eintrea. 

Mr.  Addison  said  they  were  told  he  was  a  partner  of  one  of  their  direc- 
tors, and  in  man^  of  the  companies  that  he  got  up  Mr.  Kintrea  appeared 
as  one  of  the  directors.  There  was  one  point  with  regard  to  Womersley 
and  Burt ;  that  Mr.  Burt  distinctly  told  them  he  woiQd  not  sav  that  the 
business  of  his  firm  was  worth  even  £1,000  a  year.  "  Then,'*  said  Mr. 
Lewis,  <'I  advise  you  to  have  nothing  to  do  with  it."  The  meeting  was 
adjourned,  and  at  the  next  meeting,  Mr.  Lewis  being  got  rid  of,  the 
purchase  was  effected. 

Mr.  Oalsworthy  said  it  was  right  that  it  should  be  known  that  at  the 
time  of  the  transfer  the  British  Reversionary  had^  besides  the  £6,900,  a 
capital  of  £9.000  of  other  people's  money,  with  which  they  were  working. 
But  he  would  dismiss  them  without  further  remark,  because  nothing  was 
divided  among  them.  The  prospectus  stated  that  the  company  was  formed 
to  take  up  the  business  of  another  company,  and  the  articles  of  association 
stated  what  oompanv  it  was ;  but  unfortunately  parties  when  they  applied 
for  shares  did  not  often  look  at  the  articles  of  association.  The  main  point 
in  the  report  was  what  was  called  the  second  agreement,  which  he  must 
confess  was  the  most  ingenious  thing  he  had  seen.  By  the  alteration  of  a 
few  words  the  company  were  charged  with  £700.  Another  point  was,  that 
when  the  company  had  been  some  time  before  the  public  two-thirds  of  the 
shares  had  not  been  applied  for.  and  in  his  opinion  Mr.  Eintrea  ought  to 
have  then  been  told  that  he  haa  not  fulfilled  his  contract ;  but  instead  of 
that  he  was  allowed  to  introduce  a  Mr.  Hardwicke,  who  in  his  turn  intro- 
duced  Mr.  Jay  as  the  seller  of  the  business  of  Messrs.  Womersley  and 
Burt.  He  got  £2,000  for  that,  though  it  appeared  that  Messrs.  Womersley 
and  Burt  did  not  even  know  him,  and  that  he  entered  into  the  negotiation 
without  their  knowledge.  The  getting  of  that  £2,000  was  a  piece  of 
ingenuity  which  ought  to  be  h^d  u^  for  the  admiration  of  a  discerning 

C»lic.  He  did  not  say  that  the  bunness  of  Womersley  and  Burt  was  a 
business ;  but  it  was  another  question  whether  it  was  worth  the  sum 
they  gave  for  it.  That  their  directors  should  agree  to  give  £10,000  for  a 
business  the  value  of  which  was  not  established  appeared  to  him  monstrous. 
He  thought  the  best  thing  the  company  oould  do  was  to  wind-up  volun- 
tarily. That  would  not  prevent  any  one  taking  counsel's  opinion  on  any 
one  of  these  points  if  he  pleased.  He  did  not  think  there  was  anything 
like  ffaud  in  the  inception  of  the  company.  He  thought  that  Messrs. 
Womersley  and  Burt's  books  ought  to  have  been  given  up  when  the  pur- 
chase was  made ;  but  that  had  not  been  done. 

Mr.  Whiffin  said  that  the  capital  of  the  British  Reversionary  was  about 
£8,000,  and  they  had  about  £10,000  deposite.  Out  of  the  £4,000,  £2,300 
was  paid  for  pr^iminary  expenses,  a  sum  was  devoted  to  an  ad  interim 
dividend,  ana  a  small  mim  was  paid  to  the  directors ;  and  with  regard  to 

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1296  Credit  Fancier  and  Mobilier  of  England, 

the  shareholders  themselTeSy  they  had  exchanged  a  liatnlity  of  £5  a  sbaie 
for  a  liability  of  £45. 

After  some  further  discnssion,  principally  on  the  question  of  adjonin- 
ment,  in  the  course  of  which  the  chairman  stated  that  the  directon  in- 
tended to  publish  a  full  reply  to  the  report  of  the  committee,  the  motLon 
confirming  the  resolution  to  wind-up  was  unanimously  agreed  to. 

Mr.  Addison  then  moved  that  the  proceedings  of  the  meeting  he  further 
adjourned  till  Friday,  the  27th  instant,  and  that  the  committee  be  re- 
quested in  the  meantime  to  take  counBel's  opinion  on  the  yarious  poiatt 
which  had  been  raised. 

Mr.  Zuccani  seconded,  and  thia  motion  was  likewise  agreed  to. 

The  meeting  then  separated. 


THE  CREDIT  FONCIER  AND  MOBILIER  OF  ENGLAKP, 

LIMITED. 

This  half-yearly  general  meeting  of  the  shareholders  of  this  company  ins 
held  on  the  24th  October,  at  the  London  Tarem  ;  the  Right  Hon.  James 
Stuart  Wortley,  governor,  in  the  chair,  for  the  purpose  of  receiving  the 
directors'  report  and  declaring  a  dividend. 

The  following  report  was  taken  as  read  : — 

^'  The  directors  have  much  pleasure  in  presenting  their  second  report  to 
the  shareholders,  but  before  entering  upon  its  details  desire  to  call  attea* 
tion  to  the  general  scope  of  the  observations  made  in  their  report  dated 
8th  April  last.  A  reference  to  that  report  will  show  that  the  objects  which 
the  directors  had  in  view  were,  the  declaration  of  such  a  dividend  asmi^t 
be  permanently  maintained,  and  which  they  fixed  at  a  minimum  of  20  per 
cent,  per  annum,  the  establishment  of  a  fund  to  be  called  the  dividend 
reserve  fund,  for  the  purpose  of  insuring  the  due  payment  of  such  dividend, 
and  generally  to  place  the  business  of  the  company  on  so  solid  a  basis  as  to 
secure  the  confidence  of  the  public,  and  render  its  shares  a  safe  and  highly 
desirable  investment.  The  directors  also  committed  themselves  to  an 
opinion  that  the  apprehensions  so  generally  entertained  of  disastrous  con- 
sequences to  the  commercial  world  upon  the  close  of  the  American  war 
were  groundless,  and  they  concluded  their  report  by  an  expression  of  their 
confident  belief  that  a  continuance  of  profitable  business  would  not  be 
wanting.  The  American  war  has  terminated,  but  the  predicted  disoigan- 
isatiou  of  commercial  affairs  has  certainly  not  followed  that  event ;  and  it 
will  be  seen  by  the  balance-sheet  which  the  directors  have  now  the  pleasure 
to  lay  before  the  shareholders,  that  the  result  of  the  business  transacted  by 
the  company  during  the  last  six  months  has  been  so  profitable  as  fully  to 
confirm  the  directors  in  their  predictions  of  results  for  the  present  half-year 
equally  satisfactory  to  those  realised  during  the  previous  six  months.  On 
reference  to  the  statement  of  accounts  annexed,  it  will  be  seen  that  the 
sum  to  the  credit  of  profit  and  loss  account  (after  paying  all  charges, 
expenses,  and  outgoings,  including  income-tax  on  dividend  and  banns), 
and,  therefore,  net  profit  available  to  3(Hh  September  last,  is  £180,805.  U.^^ 
The  directors  recommend  that,  out  of  such  profits,  the  sum  of  £30,000  be 
carried  to  the  '  dividend  reserve  fund,'  which  will  increase  that  fund  to 
£100,000.  The  above  mentioned  appropriation  will  leave  £150,805. 4i.  M^ 
out  of  which  the  directors  recommend  a  dividend  of  10«.  per  ahare)  eqiul 
to  20  per  cent  per  annum),  and  in  addition  thereto,  10«.  per  share  a«  a 
bonus  (equal  to  20  p^  cent,  per  annum),  both  free  of  inooDia>taz,  being 


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Credit  Foncier  and  Mohilier  of  England.  1297 

together  £1  per  Bhare,  or  at  the  rate  of  40  per  cent,  per  annum,  the  same  as 
distributed  last  half-year.  The  payment  of  this  dividend  and  bonus  will 
absorb  £100,000,  and  the  directors  call  the  attention  of  the  shareholders 
to  the  fact,  that  after  providing  for  this  large  dividend  and  bonus,  and 
increasing  the  dividend  reserve  fund  to  £100,000,  the  general  reserve 
fund  being  £200,000,  they  will  be  enabled  to  carry  forward  the  large  sum 
of  £50,805.  4s.  9c2.  to  the  credit  of  next  half-year's  profit  account.  These 
results,  the  directors  feel  assured,  will  be  as  gratifying  to  the  proprietors  as 
they  are  to  themselves ;  they  have  been  attained  by  great  attention  on  the 
part  of  all  concerned  in  the  administration  of  the  company's  affairs.  The 
directors  have  also  the  satisfaction  to  state  that  in  addition  to  these  pe- 
cimiary  results,  the  company's  influence  has  steadily  progressed.  This  is 
abundantly  attested  by  the  offers  of  combinations  in  lucrative  financial 
operations,  from  eminent  private  firms  as  well  as  companies  and  corpora- 
tions, but  which  the  directors  are  unable  to  fully  avail  themselves  of  by 
reason  of  the  inadequacy  of  the  present  capital  of  the  company,  which 
compels  them  to  decline  valuable  business  daUy.  Although,  however,  the 
company  has  thus  increased  in  prosperity,  the  directors  feel  they  are  called 
upon  not  to  ignore  the  injurious  reports  which  from  time  to  time  have  been 
circulated  against  it.  In  utter  disregard  of  facts,  rarely,  if  ever,  has  any 
commercial  association  been  so  recklessly  aspersed,  or  so  unwarrantably 
assailed :  the  directors,  however,  are  more  than  consoled  by  the  reflection 
that  rarely,  if  ever,  has  a  company  achieved  so  remarkable  a  success. 
Without  attributing  such  reports  to  unworthy  motives,  they  prefer  to 
consider  them  as  emanating  from  a  not  uncommon  prejudice  against  new 
forms  of  commercial  enterprise.  It  will  not  be  requisite  to  remind  most 
of  the  shareholders  that  many  companies  formed  on  new  principles,  in 
their  earlier  stage  have  had  to  pass  through  a  somewhat  similar  probation, 
the  most  prominent  and  recent  instances  being,  perhaps,  the  company 
which  first  introduced  joint-stock  banking :  the  company  which  inaugurated 
joint-stock  discounting  as  well  as  the  principle  of  limited  liability ;  and 
one  or  two  of  the  leading  marine  insurance  companies  which  first  under- 
took joint-stock  imderwriting.  The  directors  refer  to  those  instances 
because,  notwithstanding  the  well  known  present  success  of  those  institu- 
tions, they  were,  at  the  commencement  of  their  career,  subjected  to  as 
large  an  amount  of  prejudice  and  unfair  criticism  as  this  company  has  had 
to  suffer,  in  consequence  of  its  being  one  of  the  first  to  introduce  the  then 
new  principle  of  joint>stock  finance.  The  balance-sheet  now  presented  to 
the  shareholders  affords  perhaps  the  best  answer  to  these  aspersions.  The 
directors  desire  emphatically  to  state  that,  in  examining  the  accounts  x>f 
the  company,  with  a  view  to  ascertain  the  rate  of  dividend  which  it  would 
be  proper  to  declare,  they  have  in  all  cases  made  ample  allowance  for  every 
contingency.  In  order  to  put  the  position  of  the  company  fairly  and 
without  exaggeration  before  the  shareholders  they  have  in  every  instance 
valued  the  assets  below  the  lowest  market  value  of  the  day  ;  and  it  has 
ever  been  the  object  of  the  directors  so  to  conduct  the  business  of  the 
company  as  to  realise  the  largest  amount  of  profit  consistent  with 
the  avoidance  of  excessive  rislu.  It  is  a  fact  that  the  position  of  the 
company's  affairs  at  this  moment  is  such,  and  its  investments  are  of 
that  sound  character,  that,  if  necessary,  the  company  could  be  imme- 
diately wound  up  and  brought  to  a  dose  by  the  distribution  of  assets 
amounting  to  £860,805.  4^.  9d.  among  the  shareholders,  represented  by — 
The  paid-up  capital  of  £500,000 ;  the  general  reserve  fund,  £200,000 ;  the 
dividend  reserve  f uncL  £100,000 ;  the  balance  of  unappropriated  profit, 
£50,805.  4«.  9d.— total,  £850^5.  4t.  9d. ;  equal  to  above  £8. 10«.  per 

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1298  Credit  Fonder  and  Mobilier  of  England. 

share.  Before  leaving  this  subject,  the  dixeGton  wish  to  jdaoe  cm  rooofd 
their  deliberate  opinion  and  oonviction  that  this  company  is  destinfld  in  a 
veiy  short  period  to  take  a  foremost  place  among  the  leading  moneiaiy 
institutions  of  the  country.  Adyerting  to  the  remarks  made  at  the  oon- 
elusion  of  the  last  report,  and  also  in  cEe  present  one,  as  to  the  insofficieney 
of  the  capital  of  the  company  for  the  transaction  of  all  the  business  which 
it  would  be  disposed  to  accept,  and  to  the  great  success  which  has  at- 
tended its  operations  in  spite  of  the  comparatively  limited  amount  of  the 
capitskL  at  its  disposal,  the  directors  feel  assured  that  the  diareholderB 
will  learn  with  satirfaotion  the  determination  of  the  board  to  increase  tiie 
capital  to  the  full  amount  authorised  by  the  articles  of  associatioa,  viz^ 
£4,000,000,  by  the  issue  of  100,000  new  shares,  on  which  £5  per  share 
only  is  intended  to  be  called  up.  These  100,000  new  shares  the  direefeon 
propose  to  issue  as  f  dllows,  vis. — 60,000  shares  will  be  offered  to  the  share- 
holders in  this  company  who  shaU  stand  registered  on  the  books  d  the 
company  on  Friday,  the  20th  October  next,  to  be  allotted  in  the  propor- 
tion of  one  new  share  for  every  two  shares  then  held,  such  new  shsies  to 
be  issued  to  them  at  a  premium  of  £2. 10s,  per  share ;  the  remaining  50/)00 
shares  to  be  offered  to  the  general  public  (which,  howefver,  is  also  to 
include  such  shareholders  as  may  wish  to  apply  for  shares  in  addition 
to  those  they  are  entitied  to  as  shareholders),  sudi  shares  to  be  kroed 
at  a  premium  of  £S.  10#.  per  share.  The  premiums  to  be  reoeived  upon 
this  issue  will  amount  to  £300,000,  which  will  be  added  to  tho  £30O/)O0 
already  standing  at  the  credit  of  the  general  reserve  fund,  and  will 
thus  increase  that  fand  to  £600,000.  The  paid-up  oi^tal  will  then  be 
£1,000,000.  The  new  shares  will  be  paid  up  as  follows,  vis. : — On  thoM 
issued  at  £2.  10s.  premium  to  the  sharehcAd^s,  £1  per  share  on  appli* 
cation  being  on  capital  account ;  £1. 10«.  per  share  on  ulotment,  £1  b^2ig 
on  capital  account,  and  IO0.  on  premium  account ;  £2. 10s.  per  share  on 
Ist  January,  1866,  £1. 10s,  being  on  capital  account  and  £1  on  premhon 
account ;  £2.  10«.  per  share  on  1st  March,  1866,  £1.  10s.  being  on  capital 
account  and  £1  on  premium  account;  being  £6  capital,  and  £2.  lOi. 
premium.  On  those  shares  issued  at  £3.  10s.  premium  to  the  general 
public,  the  following  will  be  the  mode  of  payment : — £1  per  share 
on  application,  being  on  capital  account;  i&.  10s.  on  allotment,  £1. 
being  on  capital  account  and  £1.  10s«  on  premium  account ;  £2. 10s.  on 
Ist  January,  1866,  £1.  10s.  being  on  ci^ital  account  and  £1  on  pre- 
mium account ;  £2.  10s.  on  Ist  March,  1866,  £1.  10s.  being  on  cental 
account  and  £1  on  premium  account;  being  £6  capital,  and  £3.  lOt. 
premium.  These  lOO^KX)  new  shares  will  participate  in  the  next  distri- 
bution of  profits  pro  raid  with  the  existing  shares,  according  to  th« 
amouDt  of  capital  paid  up  thereon :  the  valuable  option  will  be/hoverer 
reserved  to  the  h<uders  of  these  shares  ci  paying  upon  any  of  them  th« 
whole  of  the  above  instalments,  at  any  time  previous  to  the  date  of  the 
last  instalment,  viz.,  1st  March,  1866,  on  paying  the  company  bock  interest 
from  the  date  of  such  payment  to  SOth  September  last,  at  the  rate  cf  20 
per  cent,  per  annum ;  such  shares  so  paid-up  to  be  then  entitied  to  the 
Bome  amount  of  profits  next  half-year  as  is  declared  on  the  fiyintmg  shsrs. 
The  directors  are  aware  that  in  thus  admitting  the  public  to  subscribe  i<s 
shares,  at  a  price  so  much  below  their  value,  they  are  departing  froon  tbo 
practice  generally  adopted  in  an  issue  of  new  shares,  of  offering  the  whcJe 
of  them  io  the  shareholders ;  but  the  directors  are  so  imprwed  with  tbo 
importance  of  increasing  the  area  of  influence  of  this  company — iufbenoe 
second  only  in  importance  to  oapitid  to  a  company  like  the  Ciedit  Fonder 
and  Mobilier  of  England— and  have  had  bu<&  proofii  in  the  lesuh  of  the 

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Credit  Fancier  and  Mobilier  of  England.  1299 

issne  of  shares  a  year  ago,  of  the  sotind  policy  of  admitting  the  public  to 
&  participation  in  such  issue,  that  they  feel  confident  of  obtaining  the 
ctpproYal  of  the  shareholders  in  the  course  they  have  adopted.  The  follow- 
lug  calculation  wiU  guide  investors  in  estimating  the  intrinsic  value  of  the 
shares,  after  the  dividend  and  bonus  now  declared  are  paid,  and  when  the 
issue  is  completed  : — The  general  reserve  fund  wiU  stand  at  £500,000 ;  the 
dividend  reserve  fund,  £100,000;  in  hand,  profits  not  divided  £50,805. 48. 9d.; 
total,  £660,805.  4^.  9d.  Equal  to  above  £3.  5^.  per  share  on  the  whole 
200,000  shares.  So  that  the  public,  on  subscribing  at  £3. 10s.  premium 
per  share,  are  bong  admitted  partners  in  this  company  by  only  paying  58. 
premium  as  premium ;  £3. 6s,  per  share  being  actually  represented  in  value 
in  the  assets  of  the  company.  It  follows,  therefore,  that  the  shareholders 
are  practically  receiving  a  bonus  of  £1  per  share  on  each  share  they  sub- 
scribe for,  by  getting  their  shares  at  £2. 108.  per  share  premium.  Oyer 
and  above  these  advantages,  there  is  the  probable  enhanced  value  which 
^n^ill  attach  to  these  shares  in  the  same  way  that  the  shares  issued  to  the 
public  at  £2.  138.  4<2.  premium  in  September,  1864,  after  having  received 
£1  per  share  in  April  last  as  dividend  and  Inonus,  are  now  worth  £4. 108. 
per  share  premium,  being  in  one  year  more  than  100  per  cent,  increase 
on  the  amount  paid  for  premium.  The  directors  feel  that  with  a  paid-up 
capital  of  £1,000,000,  a  general  reserve  fund  of  £500,000,  a  dividend  re- 
serve  fund  of  £100,000,  making  a  total  of  £1,600,000,  they  will  be  in  a  posi- 
tion to  meet  the  exigencies  of  any  business  that  may  be  brought  before  them. 
It  is,  however,  the  intention  of  the  directors  to  increase  out  of  future 
profits  the  dividend  reserved  fund  to  £200,000,  being  in  accordance  with 
the  plan  announced  in  the  last  report,  to  have  always  in  hand  one  year's 
dividend  at  20  per  cent,  per  annum,  calculated  on  the  amount  of  the  capital 
paid-up  for  the  time  being.  In  conclusion,  the  directors  have  much  plea- 
sure in  expressing  their  conviction  that,  from  the  business  proposals  now 
under  consideration  and  in  part  concluded,  the  past  management  and  opera- 
tions may  be  accepted  as  an  earnest  of  the  future  success  of  the  company. 

Bakmee'Sheet/rom  8th  Jprilt  1865,  to  SOth  September,  1865. 
Dr. 
Capital  authorised,  £4,0C0,000,  in  200,000  shares  of  £30  each. 

Capital  sabwribed,  £2,000,000,  in  1(K),000  shares  of  £20  each. 
Capital  paid-up,  £5  per  share  on  100,000  shares  ..•  ...£500,000    0    0 

Bills  payable  ...     17,500    0    0 

Sundry  creditors      •••     79,413  19    3 

Depositors,  loans,  &c 269,423  19    2 

Debenture  holders •        ...     72,830    0    0 

General  reeerve  fund  ...   200,000    0    0 

Dividend  reserve  fund  (to  8th  April,  1865)        70,000    0    0 

Profit  and  loss— balance  at  credit  of  this  account  carried  down...   180,805    4    9 
Guarantees : — City  offices  debentures,  per  contra,  £300,000 ;  on 

bills  receirable,  rediscoonted,  aad  sundry  other  contingent  Ua- 

bilities,  per  contra,  £357,620 

£1,889,973    8    3 
Or.  s 

Cash  at  bankers*  and  at  call  £172,040    6  10 

Bills  receivable,  securities,  loans  do  securiUes,  &c.,  and  sundry 

debtors      1,317,932  16    4 

Guarautet  a :— City  offices  debentnres,  per  contra,  £300,000 ;  bills 

receivable,  rediscoonted,  and  sundry  debits,  per  contra,  £257,620 


£1,389,978    3    3 

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1300  Credit  Fonder  and  Mobilier  of  England, 

Prqfit  and  las  aeeountfram  8M  April,  1865,  to  dOth  SepUmber,  1865. 

Amount  carried  to  dmdend  reserve  fond  ..•        ...  ...  £^,000    0   0 

Dividend  of  105.  per  share  and  bonus  of  10*.  per  share  (free  of 

income  tax)  on  100,000  shares,  equal  together  to  40  per  cent. 

per  annum *..  100,000    0    0 

Balance  unappropriated,  carried  forward  to  profit  and  loss  new 

account  below       •••     ' ...     50,806    4   9 

£180,805    4    9 

Amount  brought  down,  being  net  balance  after  deducting  aU 
current  expenses,  advertising,  salaries,  and  all  expenses  of 
management,  printing,  stationery,  directors*  allowances,  &c., 
and  income  tax  on  dmdend  and  bonus  ...        ,••  ...£180,805   4  9 


£180,805   4   9 


GXHEEAL  SXBERTE  FUVD. 

Amount  to  credit  of  this  fund  brought  down  from  balance  sheet  £200,000   00 

DTVIDEirD  BB8EXTB  FTin). 

Amount  tu  credit  of  this  fund  to  8th  April,  1865,  brought  down 

from  balance-sheet  ...   £70,000    0  9 

Amount  now  added,  brought  down  from  profit  and  loss  account     30,000   0  0 

£100,000    0  0 

PROFrr  AKD  LOBS  HEW  AOOOUKT. 

Amount  unappropriated  brought  down  from  profit  and  loss 
account ...  £50,805    4   9 


The  Ohairman  then  said,  thai  as  he  knew  they  were  men  of  boniMis, 
and  that,  therefore,  their  time  was  yaluable,  he  wonld  not  detain  them  bj 
any  lengthened  obsenrationB.  This  was  the  seoond  meeting  of  this  ^reat 
society ;  and  he  said  great  society  deliberately,  for  although  some  critki 
and  detractors  of  its  fair  fame  sought  to  spread  abroad  reports  injuiioa 
to  ity  there  was  no  denying  the  fact  that,  after  twelve  montlu  of  its  existenee, 
it  had  secured  an  importance  in  the  eyes  of  the  commercial  paUic  whidi 
could  not  be  mistaken.  (Hear,  hear.)  Without  detaining  tiiem  bjacf 
genend  observationB,  he  must  say  that  it  was  the  wish  of  the  directors  thait 
every  information  should  be  given  to  the  shareholders  with  respect  to  dtf 
business  transacted  and  the  mode  of  doing  so.  This  Company,  it  must  be 
recollected,  was  no  ordinary  one;  there  were  public  interests  in\*oiTed 
which  required  that  confidence  shoidd  be  maintianed,  and  prevented  div 
dosures  being  given  to  the  public  at  large ;  but,  except  in  cases  of  tbat 
description,  the  directors  were  anxious  to  give  every  ii^ormation  in  tto 
power  to  those  who  had  an  interest  in  it.  (Hear).  They  must,  howerer, 
remember  that  it  was  utterly  impossible  JUie  directors  oonld  disclose  the 
private  transactions  of  their  friends  and  diente  to  a  public  meeting  li^^ 
the  present  and  in  presence  of  the  public  press.  (Hear,  hear.)  Such  a  ooone 
was  never  adopted  by  the  creat  houses  of  Rothschilds  and  Baring  firolheiSi 
and  he  was  quite  certain  the  shareholders  would  not  expect  the  director 
of  the  Oredit  Fonder  and  Mobilier  of  England  to  ado^  so  imnraal  ami 


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Credit  Fancier  and  Mohilier  of  England.  1301 

unwise  a  proceeding.    Any  questions,  howeyer,  which  might  be  put  the 
answers  to  which,  if  given,  would  not  be  injurious  to  the  Company,  he 
should  be  happy  to  answer.    On  the  part  of  the  directors  he  claimed  the 
confidence  and  support  of  the  shareholders.    They  were  reponsible  for  the 
management  of  the  Company,  and  if  the  shareholders  felt  dissatisfied  they 
had  it  in  their  power  to  relieve  them  of  their  responsibility  whenever  they 
thought  fit .  They  had  the  report  before  them,  ana  if  the  present  condition 
of  their  atfairs  excited  any  feeling  of  alarm  amongst  them  they  had  a  very 
easy  method  of  getting  rid  of  those  who  now  managed  their  affairs.    With 
respect  to  the  balance-sheet,  he  would  not  go  into  details,  but  would  call 
their  attention  to  two  or  three  points.    They  would  find  in  it  every  infor- 
mation ;  and  although  every  transaction  in  their  business  was  not  formally 
disclosed  they  would  find  everything  essential  for  them  to  know  stated  in 
the  clearest  manner,  so  as  to  give  them  a  correct  notion  of  the  soimd- 
ness  and  stability  of  the  Company.  (Hear.)  They  woidd  find  the  amount  of 
bills  payable  reduced  to  £17,500,  which,  compared  to  the  capital  of  the 
company,  was  a  very  small  sum  indeed,  and  they  would  also  observe  that 
there  had  disappeared  from  the  balance-sheet  furnished  in  April  last,  for 
office  furniture,  fixtures,  drc,  the  siun  of  £8,000,  and  another  item  of 
£7,183,  for  what  was  termed  preliminary  expenses,  had  also  disappeared. 
There  was  another  item  at  the  credit  side  of  the  account  to  which  he  also 
wished  to  refer.    They  would  find  that  the  amount  of  bills  receivable  was 
£1,217,930,  and  he  must  remind  them  that  if  they  examined  the  balance- 
sheet  of  similar  establishments  they  would  find  that  it  was  the  practice  to 
give  no  further  particulars.     (Hear.)    He  would  now  call  their  attention 
to  the  present  position  of  the  company.    And,  as  regarded  that,  he  hdd  it 
to  be  impossible  for  its  greatest  and  most  inveterate  enemy  to  say  that, 
under  the  guidance  of  the  present  board  of  directors  and  the  managing 
director,  it  had  not  within  the  last  twelve  months  achieved  the  character 
of.  being  one  of  the  most  prosperous  companies  in  the  United  Eongdom. 
(Cheers.)    Notwithstanding  this  state  of  facts,  however,  information  had 
reached  him  from  many  quarters  that  certain  persons  were  spreading 
rumours  injurious  to  its  reputation  and  stability,  which  in  many  instances 
alarmed  persons  who  could  not  judge  for  themselves,  and  drove  them  into 
the  market  to  sell  their  ^ares  at  a  great  disadvantage.    They  were,  how- 
ever, he  was  happy  to  inform  them,  above  that  sort  of  thing  at  present,  and 
could  assure  those  shareholders  whom  he  then  had  the  honour  to  address 
that  they  might  hold  up  their  heads  aloft  and  despise  these  insinuations 
and  rumours  spread  abroad  to  injure  and  depreciate  their  property.  (Hear, 
hear.)    He  could  assure  them,  from  his  own  personal  knowledge,  that  the 
promises  made  in  Apnl  last  by  the  directors  had  been  rigidly  confirmed. 
That  the  multitudinous  transactions  of  their  company  had  been  of  the  most 
solid  character,  and  that  the  only  difficulty  the  directors  had  to  contend 
with  was  to  make  a  selection  from  among  the  securities  placed  at  their 
disposal.     (Hear,  hear.)    They  saw  in  the  dividend  the  result  of  what  had 
been  done.     (Hear,  hear.)    They  had  a  net  balance  in  their  profit  and  loss 
account,  after  deducting  all  expenses,  of  £180,000 ;  a  half  a  million  of  their 
capital  was  paid  up,  and  the  directors  recommended  tbem  to  follow  the 
advice  given  in  April  last— namely,  that  their  minimum  dividend  should 
be  20  per  cent.    Their  dividend  reserved  fund  amounted  to  £100,000,  and, 
looking  at  all  the  advantages  acquired  by  the  bank,  the  directors  thought 
the  more  prudent  course  would  be  to  give  them  20  per  cent,  for  the  half-year, 
and  a  bonus  of  the  same  amount,  which  woidd  make  an  aggr^;ate  of  40  per 
cent,  per  annum,  or  as  he  already  said  of  20  per  cent,  for  the  half-year,  leav- 
ing a  sum  of  £60,000  to  be  placed  to  their  ciiedit.  They  might  have  divided 


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1302  CredU  Ftmeier  and  MobUier  ^  EngUmd. 

that  amoimt,  Imt  in  a  great  ocmeeni  like  tlie  praBent  ihef  thcmgkt  H  better 
bring  orer  tbat  amount  to  tbe  next  aooonnt.  (Hear.)  Haring  now  maik 
that  statement  be  woold  leave  the  final  decision  in  the  bands  3t  the  shire- 
boldflTS.  Tbe  nominal  capital  of  the  oompany,  he  begged  to  remind  thein^ 
was  fonr  millions  ;  the  capital  issned  was  two  millions,  of  iHiidi  £500,000 
bad  been  paid  np  at  £5pOT  share,  and,  as  far  as  they  eonld  foresee,  there 
was  no  expectation  of  having  to  call  for  any  more,  ahraya  sappasiiig  the 
shareholders  consented  to  eirtend  tbe  powers  of  tbe  dire^ors,  by  enahliiig 
them  to  aogment  their  capital — ^by  the  issue  ol  100,000  shares — from  half 
a  million  paid-np  to  one  million.  (Hear,  bear.)  Tbat  proceeding  woidd 
increase  weir  status  in  tbe  commercial  world,  and  would  gife  their 
opertiHoim  greater  vigour  and  elasticity.  That  course  was  determinfd  on, 
alter  full  and  anxious  deUberation,  in  order  to  benefit  tbo  present  share- 
holders, and  to  give  tbe  general  public  greater  confidence  In  the  oompaaj. 
Those  who  held  shares  would  be  entitled  to  a  premium  of  £3. 10.  on  aham 
worth  £4.  lOs.  or  £5  in  tbe  market ;  and  those  who  took  new  shares  would 
have  them  at  £4  a  piece.  (Hear).  Now,  with  respect  to  their  leaMred 
fund,  some  sbarebolderB  wished  to  know  what  bad  been  done  with  it 
Well,  be  would  not  go  into  details,  but  while  be  assured  them  that  it  vis 
held  on  tbe  best  possible  security,  be  would  remind  shareholders  thai  tbe 
public  funds  were  not  the  most  pn^table  investment  that  could  be  dioMo. 
They  were  always  affected  by  events  which  might  any  day  occur  in  Europe, 
and  be  believed  that,  except  in  tbe  case  of  tru^ees  who  were  bound  bywOl 
to  invest  money  in  the  Three  per  Cents.,  very  few,  nowadays,  put  their 
money  in  the  funds.  Their  reserved  fund  was  b^d  in  securities  which 
could  be  made  available  at  any  time ;  and  if  they  did  not  invest  it  pro- 
perly it  mi^t  be  said  d  them  what  was  said  in  tbe  Gospel  of  Uie  mas  who 
buried  bis  talent,  tbat  they  ^  were  idle  and  unprofitable  Bervants."  (Hear, 
and  a  laugh.)  (hi  the  whole  be  had  tbe  most  perfect  confidence  in  the 
pro^writy  of  their  con^nny,  which  be  b^eved  would  turn  out  to  be  a 
sound  monetary  system,  forming  a  part  in  tbe  government  and  wdU-being 
of  this  great  country.  (Cheers) .  The  right  bon.  gentleman  conchided  by 
moving  the  adoption  ol  the  report. 

Mr.  Levick  (deputy.govemor)  aecmded  the  motion. 

Mr.  Merriless  complained  that  in  the  profit  and  loss  aoooont  the  Bhar»- 
bolders  had  no  information  of  what  tbe  cost  ol  their  business  amounted  to. 
He  bad  no  desire  to  find  Uxdt  witii  the  directors,  nor  did  he  at  all  wpgrcm 
of  captious  objections,  but  he  thought  a  statement  such  as  he  suggested 
might  be  made  with  great  advantage. 

Mr.  Bernard  wished  to  be  informed  whether  the  directors  intended  to 
appropriate  tbe  new  shares  pro  raid,  or  keep  the  power  to  themadvea  d 
dlrtributing  them  to  partLes  of  influence  whose  names  they  should  like  to 
see  on  the  register. 

Tbe  Bev.  Dr.  6.  Brown  complained  that  the  issue  of  the  new  shares 
would  be  more  profitable  to  the  public  than  to  the  present  shanhoMera. 
According  to  the  arrangement  alluded  to  by  tbe  chairman,  they  would  be 
enabled  to  get  the  shares  for  £1. 16«.  each,  while  tbe  present  holden  paid 
£2. 10s.  for  theirs.  He  also  suggested  that  the  £60,000  unappiopnated  be 
transferred  to  the  account  of  profit  and  loss,  and  divided  amcmg  the  share- 
holders, or  carried  to  the  reserve  fund. 

Mr.  Taylor  wished  to  know  bow  their  reserve  fond  was  invested,  and 
what  were  the  costs  ol  management.  He  had  been  assured  that  tbew 
securities  were  worth  £l;200,000,  and  although  he  bad  the  greOest  cca^- 
denoe  in  the  directors  ha  did  not  believe  they  had  found  ih»  philoaophert 
stone,  or  would  continue  to  pay  40  per  cent,  dividend.  (Oh,  oh.)  Be  vs»  a 

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Standard  Bank  of  British  South  Africa.  1303 

friend  of  the  representaiiye  principle ;  but  he  mnst  say  that  preeent  dr- 
cujDstanoeB  made  him  anxious  for  the  honour  of  the  company.    (A  laugh.) 

Mr.  Carpenter  said  he  addressed  a  letter  to  the  chairman,  asking  for 
information  upon  certain  points  which  he  would  then  repeat.  In  the  first 
place,  he  wished  to  know  in  what  securities  the  reserve  fund  was  invested, 
aJid  whether  they  were  permanent.  He  also  wished  to  be  informed  if  the 
securities  of  the  company  were  pledged,  and  whether  any  portion  of  the 
reserve  fund  was  invested  in  the  Three  per  Cent.  Consols.  In  conclusion, 
be  moved,  as  an  amendment  to  the  report,  '<  That  the  directors  be  re- 
quested to  invest  their  reserve  fund  in  the  Three  x)er  Cent.  Consols,  or 
some  similar  security,  and  that  no  part  of  it  shall  be  used  for  conducting 
the  business  of  the  company  without  a  special  vote  of  the  shareholders.^' 

Mr.  Bruce  seconded  the  motion,  and  a  rather  personal  discussion  en- 
sued. 

The  amendment  was  then  put,  and  negatived  by  an  overwhelming 
majority ;  after  which  the  report  was  adopted. 

A  vote  of  thanks  to  the  manager  (Mr.  Albert  Grant,  M.P.)  for  his  zeal 
aud  activity  in  promoting  the  interests  of  the  company  was  then  passed. 

Thanks  were  then  vot^  to  the  right  hon.  diairman,  and  a  vote  having 
been  proposed  to  the  secretary  and  other  officers  of  the  institution,  the 
proceedings  terminated. 


STANDABD  BANK  OF  BEITISH  SOUTH  AFKICA. 

Thx  fourth  ordinary  general  meeting  of  this  company  was  held  on  the 
24th  October  at  the  London  Tavern  ;  Mr.  Stenhouse  in  the  chair. 

The  Secretary  (Mr.  W.  F.  Searle)  having  read  the  notice  convening  the 
meeting,  the  following  report  was  taken  as  read  : — 

**  Since  the  proprietors  were  prepared  by  circular  of  25th  August  for 
the  general  character  of  the  present  half-yearly  accounts,  intelligence  of 
further  mercantile  failures  has  been  received,  and  the  full  amount  then 
estimated  by  the  directors  has  therefore  been  found  necessary  to  cover 
losses  to  the  30th  June.  A  further  sum  may  be  required  in  next  account 
to  meet  losses  on  bills  that  had  not  matured  within  the  half-year,  a  portion 
of  which  is  contingent  on  the  duration  of  the  war  in  the  Orange  Free 
State.  The  directors  have  transferred  £30,000  from  reserve  fund  to  help 
in  providing  for  the  half-year's  losses,  and  in  enabling  the  payment  of  a 
reduced  dividend  of  5  per  cent,  per  annum.  The  directors  take  the  op- 
portunity of  stating  that  the  events  from  which  the  bank  now  suffers  do 
not  repress  their  hox)es  of  future  success ;  thev  rather  rely  on  the  rapid 
progress  of  the  South  African  Colonies  in  productive  wealth  as  the  surest 
foundation  for  a  profitable  banking  business.  Certain  alterations,  sug- 
gested by  experience,  are  now  being  made  with  a  view  to  concentrate  the 
management,  as  well  as  to  strengthen  the  more  important  stations  with 
capitu  derived  from  the  closing  of  others  of  less  promising  character.  The 
reconstitutionof  the  company,  authorised  at  last  meeting,  has  encountered 
difficulties  that  have  led  the  directors  to  suspend  further  proceedings 
thereon.  The  seats  of  Messrs.  Black,  Duthie,  aud  Paterson  have  become 
vacant  since  last  meeting,  and  have  been  filled  by  the  election  of  Messrs. 
George  Charles  Frames,  Alexander  Cowan,  and  William  NeLsob,  which  the 
propiietoTS  are  asked  to  confirm.^' 


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1304  Standard  Bank  ^  BritUh  South  Africa. 

Bakmee-skeei  Jmne  9Qth,  1865. 
Dr. 

Capital  paid-ap,  tu.  :  —£25  per  share  on  17,053  sbares,  £426,325 ; 

£10  per  share  on  6,108  shares,  £61,080 ;    paid  in  anticipation 

ofcails,  £165,  making  a  total  of...  ...  ...  ...£487,570    0    0 

Circulation  notes,  £85,435;  post  bills,  £94/)71.  10#.  4J.,  making 

a  total  of         180,W6  10    4 

Liabilities  on  deposit  and  current  accounts  ...  ...  ...   408,853  19    S 

Bills  payable  and  other  liabilities   ...  ...  ...  ...  410,635  14    6 

Reserve  fund       26,000    0    0 

Profit  and  loss,  riz.  :~Ba]anoe  Slst  December,  1864,  £449.6f  .8d. : 

net  profit  for  half-jear  ending  30th  June,  1865,  £25,233. 1 9#.54i.; 

rebate  on  bills  discounted  and  not  yet  due,  £11»034. 15f.  6J. ; 

amount  firom  reserre  fund,  £30,000,  making  a  total  of  ...     66,718    1    7 

£1,579.784    6   1 

cr.  ; 

Cash  irith  bankers  and  at  branches  ...  ...  ...£103,327    1    5 

Bills  discounted,  other  adv^ances,  remittances  firom  branches,  and 

past  due  biUs 1,411,63114'* 

Bank  jiremised,  furniture^  fitdngs,  &c.  ...  ...  ...     23.606  10    ^ 

Preliminary  expenses        ...  ...  ...  ...  ...       1,300    0   « 

Amalgamation  account    ...  ...  ...  ...  ...     36,815    o 

Unpaid  caUs  and  premium  ...  ...  ...  ...       2354    U 


0     0 


£1,579,784    6    1 


Prqfit  and  Lass  for  kaff-year  ending  June  30th,  1865. 

Charges,  including  rent,  taxes,  salaries,  and  all  other  expenses 
at  head  office  and  branches  ...  ...  ...  .^  £12,124    8 

Balance  carried  down        ...  ...  ...  ...  ...     66,71$    1 


£78,842  10    S 


By  balance  31st  December,  1864  (£2,009.  fit.  9d^  less  remunera- 
tion for  directon  and  auditors  to  that  date,  and  amount 
reserred  for  income  tax)  .  ...  ...  ...  ...        £449    6  8 

By  gross  profits  for  half-year  ending  30th  June,  1865,  alter  de-> 
ducting  interest  on  deposit  and  current  aooonnts,  and  on  calls 
paid  in  advance  ...  ...  ...  ...  '...     48,393    3   7 

Beseryefund      ...  ...  ...  ...  ...  ...     30.000    0   0 

£78,842  10    3 

APPBOFBIATJOV. 

Rebate  on  bills  discounted  and  not  yet  due  ...  ...  ...    £11.034  15   o 

Amount  written  off  amalgamation  account ...  ...  ...        2.U(>  *    0    0 

Amotint  carried  to  suspense  account  ...  ...  ...  253    1    ^ 

Dividends,    viz.: — 12*.    6J.    per    share    on     17,053     shares, 
£10.658.  2j.  6d;  6s.  per  share  on  6,108  new  shares,  £1,527, 
(being  at  the  rate  of  £5  per  cent,  per  annum  on  the  sums  paid 
upon  such  shares  respectively,  to  be  paid  free  of  income-tax)     12,195    2   6 
Bad  debt  account  ...  ...  ...  ...  ..,     41,245    1  H 

£66,718    1    7 


Balance  brought  down      ...  .,  £66,718    Ij 

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Digitiz 


Standard  Bank  of  British  South  Africa.  1305 

Fi7sn>. 


Profit  and  loss  account 
Balance 


Balance,  31  si  December>  1864 
Balance  ... 


...  £30,000 
...  26,000 

0 
0 

0 
0 

£66.000 

0 

0 

...  £66,000 

0 

0 

...  £26,000 

0 

MM 

0 

The  Chairman,  in  moving  the  adoption  of  the  report,  expressed  his  re- 
gret that  they  had  not  met  in  as  fortunate  circumstances  an  on  previous 
meetings ;  but  at  the  same  time  the  affairs  of  the  bank  were  not  in  a  posi- 
tion to  excite  serious  alarm.  There  might  be  some  difference  of  opinion 
as  to  whether  or  not  they  ought  to  declare  a  dividend,  but  looking  to  the 
circmn&tancen  that  there  mi^t  be  many  persons  to  whom  such  a  declara- 
tion might  be  of  the  last  impor banco,  and  to  the  fact  that,  in  all  probability, 
things  had  reached  their  turning  point  at  the  Cape,  the  directors,  on  the 
whole,  thought  it  advisable  that  a  dividend  at  the  rate  of  6  per  cent,  should 
be  dedared.  It  was  stated  in  the  report  that  £30,000  would  be  required 
from  the  reserve  fund  to  pay  the  dividend,  which  would  leave  to  its  credit 
the  sum  of  £26,000.  It  was,  however,  expected  that  the  profits  of  the 
current  half>year  would  amount  to  £25,000,  £10,000  of  which  had  already 
been  earned;  and,  looking  at  the  circumstances  that  the  colony  had 
passed,  or  was  now  passing,  through  a  severe  monetary  crisis,  the  board 
had  thought  it  necessary  to  set  aside  £20,000  for  contingencies  that  might 
arise  in  the  current  half-year.  The  estimated  earnings  being  £25,000,  and 
the  reserve  fund  £26,000,  together  made  £51,000.  The  dividend  at  the 
end  of  December  ii^ould  absorb  £12,000,  which,  added  to  the  £20,000  set 
aside  for  contingencies,  made  £32,000,  which  would  leave  £19,000  to  the 
credit  of  the  reserve  fund  in  December  next.  He  also  mentioned  that 
some  of  the  directors  havins  resigned,  it  became  necessary  to  fill  their 
places,  and  the  directors  had  selected  Mr.  Neisch,  Mr.  Alex.  Cowan,  and 
Mr.  Mackenzie,  to  fill  their  places.  Owing  to  the  fact  that  the  selection  of 
two  of  the  gentlemen  had  been  made  subsequent  to  the  notice,  it  would  be 
competent  for  the  meeting  to  defer  the  confirmation,  if  necessary,  till  April 
next.  He  thought  it  unnecessary  to  make  any  further  observations,  as  no 
doubt  various  questions  would  be  asked,  and  he  thought  it  would  be  better 
to  answer  them  seriatim,  thus  afibrding  the  shareholders  the  fullest  op- 
portunity of  investigating  the  affairs  of  the  bank.  He  concluded  by 
moving  the  adoption  of  the  report. 

A  shareholder  inquired  the  amount  of  the  past  bills  due  on  the  30th  of 
June  last ;  what  amount  there  was  due  on  that  account  since  the  30th  of 
Jtme ;  what  branches  were  being  closed ;  and  whether  the  principal  losses 
had  not  accrued  at  Port  Elizabeth. 

The  Chairman  said  it  was  perfectly  true  that  many  serious  losses  had 
occurred  at  Port  Elizabeth,  mainly  throu|fh  the  commercial  crisis  that  had 
occurred  in  the  colony,  but  at  the  same  time  all  banks  had  suffered  alike. 
The  amount  of  overdue  bills  up  to  the  30th  of  June  last  amounted  to 
£133,000  odd,  but  there  were  collateral  securities  which  would  reduce  the 
*  actual  loss  to  £41,000,  and  which  had  been  written  off  as  a  bad  debt 
accoimt.  Since  the  80th  June  the  past  due  bill  account  amounted  to 
£13,164.  The  increase  of  charges  had  arisen  from  the  appointment  of  a 
manager,  whose  salary  had  to  be  included,  but  they  had  selected  a  most 
able  man  in  Mr.  Stewart,  who  had  devoted  himself  entirely  to  the  elucida- 


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1306  Standard  Bank  qf  British  South  Africa. 

tion  of  the  afDun  of  the  bank,  and  through  whose  efforts  there  was  ereiy 
probability  that  it  would  not  only  reoover  all  its  losses  bat  have  a  Terj 
excellent  future  before  it. 

Mr.  Kintrea  expressed  an  opinion  that  sufficient  caution  had  not  been 
exercised  in  taking  over  the  business  of  the  Conunercial  Bsnk  at  Port 
Elizabeth,  and  that  the  £38,000  due  on  the  amalgamation  account  was  s 
dead  loss. 

Mr.  Manby  read  an  extract  from  the  Ecutem  Province  HeraH  wbidi 
gave  an  account  of  the  insolvency  of  Mr.  Kirkwood,  a  colonial  dirsctor, 
and  called  the  attention  of  the  meeting  to  the  fact  that  the  Standard  Bank 
was  scheduled  as  a  creditor  to  the  enormous  sum  <jt  £40,000,  the  repoit 
in  the  paper  stating  that  Mr.  Kirkwood's  estate  was  likely  to  pay  ia 
pence  rather  than  pounds.  He  inquired  whether  there  was  any  tiuth  is 
the  report. 

The  Chairman  deprecated  any  allusion  to  reports  in  the  publie  aewi* 
papers,  and  stated  that  although  it  was  true  that  Mr.  Kirkwood's  aoooont 
was  so  scheduled,  the  bank  was  in  possession  of  collateral  secmitieB  wfaidi 
would  reduce  the  loss  on  that  account  to  £13,000. 

Mr.  Manby  called  attention  to  the  fact  that  a  very  large  prc^wftioa  of 
the  local  directors  in  the  colony  did  not  hold  a  single  shtfe  in  the  trnds* 
taking,  and  also  to  the  fact  that  a  large  item  appeared  in  the  aocoonti  of 
"  other  adyanoes.''    He  inquired  the  nature  of  those  adrances. 

The  Chairman — They  were  oTerdrawn  accounts  against  seeuritaes. 

A  long  and  animated  conversation  ensued,  in  which  the  chainnaa  and 
directors  were  ajtiked  to  state  the  details  of  the  most  minate  tranaa^ioDB  d 
the  bank,  and  in  reply  to  the  numerous  questions  asked  of  all  sides  of  tbe 
meeting. 

The  Chairman  stated  that  almost  immediately  after  Mr.  Stewart,  tbe 
present  manager  of  the  bank  in  the  colony,  had  arrived,  he  discovered 
that  the  affairs  of  the  bank  had  been  greatly  mismanaged  by  the  local 
boards,  who  seemed  to  have  gone  entirely  on  ^e  principle  of  helping 
thems^ves  and  their  friends,  the  consequence  of  whidi  was  that  when  the 
commercial  crisis  came  and  failures  took  place,  the  persons  who  had 
obtained  these  large  advances,  not  being  able  to  repay  them,  became 
insolvent,  and  the  bank  was  obliged  to  resort  to  such  covering  ss  it  had  ia 
the  shape  of  collateral  securities.    He  also  discovered  that  some  of  tbe 
branches,  instead  of  being  profitable,  were  entirely  unint>ductive.    Id- 
mediately  on  receipt  of  the  intelligence,  the  board  instructed  Mr.  Stewiit 
to  restrict  all  advances,  to  discontinue  son^e  of  the  branches,  and  to  ailov 
no  overdrawn  accounts  that  were  not  fully  covered  by  ample  secuiM 
They  also  issued  an  order  by  which  no  person  who  was  not  coDsidenUj 
interested  in  the  welfare  of  the  bank  should  act  as  a  local  director,  and  in 
point  of  fact  had  given  the  strictest  possible  orders  to  the  manager  to  pot 
an  end  to  the  irr^ularities  that  had  occurred.    He  reminded  the  meeto 
that  the  local  directors  were  not  appointed  by  the  board  but  by  the  ooIoduI 
shareholders,  and  that  when  the  amalgamation  took  place  they  were  coo- 
tinned  in  office  solely  on  account  of  the  able  manner  in  whidi  they  had 
conducted  the  affairs  d  the  Commercial  Bank.    He  could  not  deny  th^ 
they  seemed  to  have  managed  the  afbirs  of  that  bank  in  a  far  more  eatir 
factory  way  than  they  had  in  this  case,  and  he  assured  the  meeting  thai  do 
one  deprecated  more  than  the  board  the  jpractice  of  persons  acting  •» 
directors  in  the  colonies  who  had  no  share  in  the  bank.      It  could  not  be 
denied  that  many  of  those  directors  had  made  the  bank  a  mere  conTe- 
nienoe  to|  obtain  advances,  but  ^t  was  all  bdng  rectified,  and  tbe^ 
manager,  than  whom  there  was  no  more  able  man  in  the  colooy,  had  m 
utmost  confidence  in  the  future  prosperity  of  the  institution. 


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Discount  Corporation.  1307 

In  reply  to  a  question  from  a  shareholder. 

The  Chairman  stated  that  it  had  been  fonnd  impossible  to  carry  into 
effect  the  scheme  of  reconstitution  adopted  at  previous  meetings,  on  accoont 
of  a  large  number  of  shareholders  objecting. 

Mr.  Jervis,  in  seconding  the  adoption  of  the  report,  thought  that  the 
shareholders  had  expressed  a  great  deal  of  unnecessary  alarm  at  the  position 
of  the  bank.  The  general  manager  reached  the  Cape  at  the  latter  end  of 
¥*ebruary ,  and  to  a  man  of  his  experience  it  soon  became  plain  that  a  great 
deal  of  very  improper  bill  accommodation  had  taken  place.  The  first  tiling 
be  did  was  to  shut  the  door  against  aU  transactions  of  that  sort,  and  the 
next  was  to  get  every  kind  of  collateral  security  he  could  lay  his  hands  on. 
That  prudent  conduct  had  been  followed  out,  and  he  was  sure  would  lead 
to  ultimate  success.  The  trade  of  Port  Elizabeth  was  good,  and  that  port 
was  the  fifth  best  customer  they  had.  There  was  every  reason,  now  that 
the  orisiB  was  nearly  over,  to  be  satisfied  that  the  bank  would  not  only 
recover  all  its  losses,  but  eventually  would  yield  a  very  large  profit. 

Mr.  Kintrea  coidd  not  participate  in  the  congratulatious  of  Uie  seconder. 
As  it  appeared  to  him  they  had  not  only  lost  their  reserve  fund  but  they 
had  given  £38,000  for  what  turned  out  to  be  a  bad  business.  He  traced 
the  losses  of  the  bank  to  three  sources — ^first,  to  their  having  local  directors 
who  had  no  interest  in  it ;  secondly,  to  opening  and  maintaining  unre- 
munerative  branches ;  and  thirdly,  to  the  tacilities  afforded  by  the  bank 
to  the  merchants  of  obtaining  money  too  easily,  thus  leadmg  to  over 
speculation,  and  giving  a  false  stimulus  to  trade.  He  had  no  doubt  what- 
ever about  the  future  of  the  bank  if  these  faults  were  corrected,  and  above 
all  he  trusted  that  they  would  never  hear  any  more  about  managing 
directors  who  were  not  shareholders.     (Hear,  hear.) 

Mr.  Beke  expressed  himself  dissatisfied  with  the  position  of  the  bank, 
and  considered  it  highlv  inexpedient  to  declare  a  dividend  at  all.  He, 
therefore,  moved  that  the  report  and  balance-sheet  be  pot  adopted. 

Mr.  Hodgkin  seconded  the  amendment,  which  on  being  put  to  the  meet- 
ing was  lost,  and  the  report  was  adopted  by  a  large  majority. 

The  dividend  having  been  declared,  the  election  of  directors  was 
proceeded  with,  and  after  some  discussion,  resulting  in  a  proposition  that 
the  appointments  made  should  not  be  confirmed,  but  that  the  matter  should 
stand  over  till  April,  which  was  lost,  the  election  of  the  three  gentlemen 
nominated  by  the  directors,  viz.,  Mr.  G.  C.  Frames,  Mr.  Neish,  and  Mr. 
Mackenzie,  was  confirmed. 

A  cordial  vote  of  thanks  to  the  chairman  and  directors,  proposed  by  Mr. 
Kintrea,  and  carried  by  acclamation,  concluded  the  proceedings. 


DISCOUNT  CORPORATION. 

Thx  ordinaiT  general  meeting  of  the  shareholders  in  this  company  was 
held  at  the  London  Tavern  on  the  27th  October ;  Captain  C.  F.  Mangles 
in  the  chair. 

The  following  report  and  balance-sheet  were  submitted  by  the  directors, 
and  taken  as  read : — 

"  In  again  presenting  to  the  shareholders  a  statement  of  the  affairs  of  the 
corporation  for  the  half-year  ending  the  30th  September,  1865,  the  directors 
would  desire  to  point  out,  that  although  the  amount  of  business  transacted 
has  been  less  than  during  the  previous  half-year,  yet  the  net  profit  realised 
has  been  comparatively  greater,  and  has  been  attained  during  a  very  pre- 


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1308  Dkeount  Corporation* 

carious  period,  with  a  loss  of  only  £400.  This  result  has  been  srriired  it 
by  the  operations  of  the  company  having  been  conducted  with  caution.  The 
statement  now  submitted  shows  a  gross  profit,  including  £2411. 7«.  64. 
brought  forward  from  last  account,  of  £21,051.  17^.  8d.,  from  wliich,  after 
allowing  for  bad  debts,  rebate  of  bUls  not  due,  and  current  expenses,  there 
remains  a  balance  of  £6,606^  3«.,  which  the  directors  propose  to  dispose  ol 
•  in  the  following  manner,  viz. : — £5,000  to  the  payment  of  a  diTidend  of  l(k 
per  share,  being  at  the  rate  of  5  per  cent,  per  annum  on  the  paid-up  capital ; 
£1,000  to  be  added  to  the  reserve  fund;  and  £605.  3«.  to  be  carried  to 
next  account." 

Balaneesheeif  30th  September,  1865. 
Dr. 
Capital  account — 9,995  shares,  on  which  £20  has  been  paid, 
£199,900,  less  arrears,  £25,  £199,875;  Five  shares  forfeited 
on  which  has  been  paid  £12.  lOi.,  making  a  total  of  .••£199«887  10   0 

Loans,  deposits,  &o.  .«•  ...  ...  ...  •••1,558^303    3   4 

Keserve  fund      ...  ...  ...  ...  ...  ...       1,000    0   0 

Profit  and  loss  account— amount  at  credit  as  per  annexed  state- 
ment ...  ...  ...  ...  ...  ...      16,779    5   0 


£1,775,969  18   i 


Or. 

Cash  at  YarioQ 8  bankers'               ...            ...            ...  ..£100,597  0  4 

Bills  discounted,  advances,  &c.      ...            ...            •••  ...1^98.520  8  7 

Amalp^amation  account  paid  for  transfer  of  business ...  ...     70,000  0  0 

Premises  in  Abchurcb  Lane           ...            ...            ...  ...       3^00  0  0 

Preliminary  expenses — baUnce  of  account ...           ...  ...       8,352  9  5 

£1,775,969  18  4 


Prqfit  and  Loss  Account  for  the  Six  Months  ending  Sept.  30,  1S65. 

Current  expenses,  including  salaries,  rent,  taxes,  income-tax, 

auditors'  remuneration,  and  all  other  charges          ...            ...  £4,2^72  12 

Bad  debts             ...             ...             ...             ...             ...             ...  400  12 

Rebate  ol  interest  on  bills  discounted,  not  yet  due,  carried  for- 
ward to  new  account    ...            ...            —            ...            ...  9,778  10 

Dividend  of  10^.  per  share  on  10,000  shares...            ...            ...  5,1MX)    0 

Amount  added  to  reserve  fund        ...            ...            ...            ...  1,000    0 

Balance  carried  forward  to  profit  and  loss  neiv  account            ...  ^  605    3 


£21,051  17    9 


Balance  brought  forward  from  31st  March  last  ...  ...     £2,111    7    4 

By  gross  profits  during  the  half*year  ...  ...  ...      18,940  10   i 

£21,ft51  17    8 

T]ie  Chairman,  in  moying  that  the  report  and  statement  of  accounts  be 
adopted,  and  that  a  dividend  of  10s,  per  share  free  of  income-tax  bs 
declared,  and  paid  on  and  after  the  1st  of  November  next,  briefly  ex- 
plained the  position  of  the  company's  affaiiB.  Much  credit,  he  obeored, 
was  due  to  tlie  managers  for  the  way  in  which,  to  use  a  nautical  phiwft 
they  had  steered  the  vessel  through  the  shoals  and  dangers  by  which  it 
had  been  surrounded,  in  the  shape  of  fuluies  in  Indim  banks  and  other 


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Discount  Corporation.  1309 

old  establishments :  and,  seeing  that  the  accounts  showed  a  loss  of  only 
£400,  he  thought  the  managers  were  entitled  to  the  utmost  gratitude. 
Their  business,  if  conducted  safely,  could,  even  under  the  beat  circum- 
stances, only  produce  moderate  results,  because  it  wassimplythe  difference 
between  what  they  could  take  money  for  and  what  they  could  lend  it  at ; 
and  considering  the  great  reduction  of  from  £200,000  to  £300,000  which 
had  taken  place  in  their  liabilities  since  the  last  report,  and  which  had  been 
brought  about  solely  by  prudent  management,  he  trusted  the  shareholders 
would  be  satisfied  with  the  dividend,  although  it  did  not  keep  pace  with 
those  which  were  given  by  some  other  of  the  great  credit  companies.  An 
important  subject  which  had  lately  engaged  the  attention  of  the  directors 
was  the  high  amount  of  the  shares.  He  understood  it  was  contemplated 
to  bring  in  a  bill  of  a  general  character  when  parliament  assembled, 
enabling  companies  to  reduce  the  amoimt  of  their  shares  ;  but  if  no  such 
general  measure  were  introduced  the  directors  would  consider  whether 
they  themselyes  might  not  bring  in  a  bill  empowering  them  to  reduce  the 
shares  of  this  corporation  from  £100  to  £25,  thus  making  the  shares 
£5  paid  up.  Such  a  step,  he  believed,  would  produce  a  wholesome  effect 
on  the  shares,  which  would  then  be  much  more  largely  dealt  in  thim 
they  were  at  present.  Upon  the  whole  he  was  so  satisfied  of  the  perfect 
BoondnesB  of  the  undertalung,  that  he  hoped  the  shareholders  would  imi- 
tate his  own  example,  identifying  themselves  more  thoroughly  with  its 
interests,  and  bring  in  all  the  money  they  could,  in  order  that  it  might  be 
laid  out  with  prudence  and  care,  and  realise  a  good  profit. 

Mr.  O.  Lyall  (a  director)  -seconded  the  motion,  and  urged  the  necessity 
which  daUy  experience  had  shown  to  exist  of  increasing  the  amount  of 
capital,  which  at  present  was  not  sufficient.  The  business  transacted  was 
of  a  very  high  class.  It  was  well  done.  There  was  no  lock-up.  The 
securities  consisted  entirely  of  really  good  mercantile  bills  of  exchange, 
and  none  had  to  run  beyond  six  months.  But  business  had  to  be  constantly 
discouraged,  because  in  these  times  of  fluctuation  it  would  not  do  with  their 
small  capitsd  to  run  any  risks.  If,  however,  the  capital  were  increased  by 
about  £200,000  the  business  might  be  doubled,  and  still  be  of  the  same 
good  class.  At  the  same  time  the  expenses  would  be  no  greater,  whilst 
there  would  be  a  considerable  increase  of  profit.  The  present  was,  perhaps, 
not  an  opportune  moment  for  taking  this  step,  but  at  the  first  favourable 
opportunity  it  ought  to  be  done  in  the  way  that  would  be  most  convenient 
to  the  ^areholders.  As  a  preliminary,  it  would  be  necessary  to  reduce 
the  amount  of  the  shares,  and  after  that  the  question  of  augmenting  the 
capital  should  be  taken  into  consideration. 

In  answer  to  inquiries, 

The  Chairman  stated  that  the  £9,000  set  aside  in  the  previous  account 
against  bad  debts  was  amply  sufficient  to  meet  any  deficiency  that  might 
arise  from  that  source.  To  which  the  manager  added  the  remark  that  the 
whole  of  the  £9,000  would  be  absorbed. 

A  Shareholder  said  that,  after  paying  £70,000  on  the  amalgamation 
account,  the  capital  they  were  workii^y;  with  was  only  £130,000,  and  the 
current  expenses  on  this  were  at  the  rate  of  nearly  5  per  cent.  He  was 
satisfied  with  the  soundness  of  the  concern,  but  contended  that  these 
expenses  ought  to  be  reduced,  and  that  the  most  effectual  means  of  doing 
BO  was  to  have  a  less  numerous  and  costly  staff. 

The  Chairman  stated  that  the  subject  was  then  under  the  consideration 
of  the  board,  and  at  the  fitting  time,  when  it  was  in  their  power,  he  had  no 
doubt  there  would  be  a  reduction.  The  management  should  be  as  economi- 
cally conducted  as  possible,  and  the  directors  pledged  themselves  to  do  their 
VOL.  XXV.  99 


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1310  London  Mercantile  Discount  Company. 

best  to  accomplish  that  resnlt.  He  farther  explaiBed  that  the  £3^.  for 
the  premises  in  Abchtirch  Lane,  had  been  paid  for  the  renewal  of  theiMM 
for  sixty  years. 

A  Shareholder  inquired  whether  the  bills  in  hand  were  beliered  to  U 
good. 

The  Manager,  spealdng  to  the  best  of  his  belief,  shonld  say,  perfselly  lo. 

Ultimately  the  motion  was  agreed  to,  the  retiring  directors,  Mesm. 
Colchester  and  LyaU,  were  re-elected,  a  snm  of  £1,000  was  Toted  to  the 
board  as  remmieration  for  their  serrices  during  the  past  year,  andaecxrdiil 
YOte  of  thanks  to  the  presiding  chairman  terminatea  the  proceedings. 


LONDON  MEBOANTILB  DISCOUNT  COMPANT. 

A  MBSTnro  of  the  shareholders  of  this  company  was  held  at  the  LoDdon 
Tavern,  on  the  27th  October,  by  adjournment  from  the  18th  instant;  Mr. 
John  G«ary  occupied  the  chair. 

The  Chairman  said  the  meeting  was  adjourned  for  the  purpose  of  allow- 
ing time  for  the  committee  of  inTestigation  to  obtain  ooTinaM's  (^uuan  mi 
certain  noints  which  were  raised  at  the  last  meeting. 

Mr.  Morris  then  read  the  case  submitted  to  counsel,  which  went  at  great 
length  into  the  history  of  the  company,  and  concluded  with  the  f dloving 
questions,  on  which  the  opinion  of  counsel  was  requested  :•— 

1st.  Whether  the  originsl  allottees  of  shares  in  the  London  Mefcantile 
Discount  Company  can  receive  back  the  money  paid  on  their  sbarei,  or 
dbtain  anv  other  and  what  relief  in  respect  of  the  oircnmsta&ces  connected 
with  the  formation  of  the  company.  2nd.  1^  y^oa,  against  whom  sad  at 
whose  suit  the  remedy  can  be  enforced.  3rd.  Whether,  even  if  the  com- 
pany was  fraudulently  established,  shareholders  who  were  not  (Hrjgifiallj 
allottees,  but  have  purchased  shares  in  the  open  market,  some  at  a  diiieoant, 
have  any  ground  of  action  or  suit  either  at  law  or  equity.  4th.  Whrthfr 
the  shareholders  should  proceed  with  a  voluntary  winding-up,  or  hov 
otherwise  they  should  act  with  reference  to  the  affiurs  of  the  compaoy  w 
as  not  to  prejudice  their  rights,  and  on  the  other  hand  make  the  moat  of 
what  remains  and  stop  all  useless  expenditure.  5th.  Generally  to  adriie 
the  shareholders  as  to  the  best  course  for  them  to  pursue  under  the  cireom- 
stances  herein  detailed,  so  as  to  recover  the  money  paid  if  they  caBy  and  if 
not,  to  make  the  loss  as  light  as  possible. 

On  these  questions  the  following  opinion  was  given  :— 

**  1st,  2nd,  and  Srd. — ^We  consider  uiatthe  drcumstanceB  eoxmeoiedvith 
the  formation  of  this  company  would  induce  a  court  of  equity  to  hvmr» 
as  far  as  its  rules  might  permit,  any  claims  by  original  allottees  of  aharei 
to  have  such  allotments  cancelled.  But  on  the  whole,  and  especially  can- 
sidering  the  length  of  time  during  which  such  allottees  have  acqnieaoed  in 
their  position  as  shareholders,  we  are  not  of  opinion  that  tiiey  oofold  soc- 
ceed  either  in  recovering  back  the  money  paid  on  their  shares,  or  in  8^*^ 
their  names  removed  from  the  register,  or  in  obtaining  any  other  relia  btf» 
on  the  circumstances  referred  to.  Still  less  is  any  such  remedy  open  to  tboae 
who  have  purchased  their  shares  in  the  open  market,  since  it  is  anlypowoi 
who  contract  for  their  shares  with  the  company  that  can  in  any  c»«^ 
relieved  on  the  ground  of  the  fraud  of  the  company.  4th  and  ^Tj* 
are  of  opinion  that  by  pursuing  in  equity  the  remedies  hereinafter  iw»* 
oated,  the  shareholders  may  reasonably  hope  to  lighten  ttieir  loss  to  s  con- 
siderable extent.    In  the  first  place,  the  purchase  of  the  businos  of  tfe^is 

Digitized  by  ^OOQlC 


Londtm  Mercantile  Discount  Conipan?/.  1311 

Womenley  and  Bnrt  appears  to  have  been  negotiated  with  what  the 
law  calls  crassa  negligeniia  on  the  part  of  the  directors,  not  only  sufficient 
to  make  those  who  took  part  in  the  negotiation  personally  liable  for  the 
damage  resulting  therefrom,  but  also,  together  with  the  other  circum- 
stances, amounting  to  such  evidence  of  improper  conduct  as  to  invalidate 
the  purchase  thereof.  And  next,  we  are  of  opinion  that  in  connection  with 
this  equity  the  £2,000  paid  to  Mr.  Jay  under  the  circumstances  mentioned 
in  consultation  may  probably  also  be  recovered.  We  are  further  of 
opinion  that,  even  if  the  purchase  should  not  be  set  aside,  the  claim  of 
Messrs.  Womersley  and  Burt  to  salaries  as  directors  and  members  of  the 
daily  committee  is  inconsistent  with  the  articles  of  association,  and  cannot 
be  supported.  And  we  are  of  opinion  that  Mr.  Kintrea  is  bound  in 
equity  to  indemnify  the  company  for  the  preliminary  expenses  attending 
the  formation,  which  he  undertook  to  pay  in  a  contract  on  which  the 
existence  of  the  company  was  in  fact  based  The  remedies  above  indicated 
may  be  pursued  while  the  voluntary  winding-np  is  proceeded  with. 

<'Thob.  Bouthoati. 
''John  WxgTLAKx. 
'^  Lincoln's  Inn,  Oct.  25, 1865." 

Mr.  Morris  suggested  that  time  should  be  given  to  consider  the  opinions 
that  counsel  had  given,  and  that  there  should  be  an  adjournment.  (Cries 
of  "  No.") 

Mr.  WhiiSin  objected  to  an  adjournment,  and  said  he  thought  they  ought 
to  proceed  at  once  to  the  appointment  of  liquidators.  He  depreoated 
going  to  law.  If  they  did  they  would  be  entirely  in  the  hands  of  the 
Ikwyen,  and  no  one  could  tell  how  much  they  would  have  to  pay,  whereas 
if  they  avoided  litigation  the  assets  of  the  company  would  about  balance 
the  liabilities,  and  they  might  ]x>8sibly  get  back  10s.  a  share,  or  at  any  rate 
they  would  not  have  to  pay  more  than  10«.  a  share. 

Mr.  Morris  said  he  thought  they  ought,  at  least,  not  to  abandon  this 
matter  without  having  an  opportunity  of  seeing  Messrs.  Womersley  and 
Burt's  books.  They  could  do  this  by  filing  a  bill  in  chancery,  and  it  would 
then  be  open  to  them  whether  they  would  proceed  with  the  suit  or  not. 
Mr.  Britton  inquired  what  were  the  issues  involved. 
Mr.  Morris  said  £10,000  was  paid  to  Messrs.  Womersley  and  Burt  for 
their  business,  besides  which  they  were  appointed  to  serve  on  the  didly 
committee  for  three  years,  at  a  salary  of  £1,400  a  year.  Then  there  was 
a  claim  against  Mr.  Kintrea  for  £700,  and  they  might  recover  the  £2,000 
paid  to  Mr.  Jay. 

Mr.  Galsworthy  said  it  was  quite  clear  nothing  could  be  recovered  on  the 
ground  suggested  at  the  last  meeting  by  Mr.  Morris,  that  of  gross  fraud, 
bat  it  was  not  at  all  clear  whether  they  would  not  be  able  to  recover  some 
of  the  moneys  that  had  been  referred  to.  He  suggested  that  the  share- 
holders  should  that  day  appoiijt  a  liquidator  or  liquidators,  who  should 
consider  whether  proceedings  shoidd  be  adopted  or  not. 

Mr.  Flight  recommended  that  a  bill  in  chancery  should  be  filed. 
Mr.  Toner  moved  that  Mr.  George  Whiffin  and  Mr.  Bichard  Stone  be 
ni^pointed  liquidators. 
Mr.  Kobinson  seconded. 

Mr.  Addison  objected  to  the  appointment  of  either  Mr.  Stone  or  Mr. 
Whifiln,  on  the  ground  that  the  former  was  auditor  of  the  company,  and 
the  latter  had  been  secretary. 

A  discussion  of  an  angry  and  personal  character  ensued. 
Mr.  Addison  moved  as  an  amendment  that  Mr.  Galsworthy  be  appointed. 
Mr.   Galsworthy  declined   to   act,   and   Mr.   Addison   withdrew  his 
amendment. 

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1312  Tetiders/or  Bilk  on  India. 

liSx.  Galsworthy  moved  as  an  amendment  the  appointment  of  Mr.  Jama 
Cooper,  accountant. 

At  the  suggestion  of  the  Chairman  and  Mr.  Morris  words  were  added 
to  the  motion  and  the  amendment  directing  the  liquidators  to  take  pro- 
oeedings  in  chancery  if  they  should  deem  it  adyisable. 

The  amendment  and  the  original  motion  were  then  respectlYely  put  to 
the  meeting,  when  there  appeared  ten  for  the  amendment  and  twency-ODe 
for  the  original  motion. 

A  poll  was  demanded,  and  the  Chairman  declared  that  the  poll  would  be 
taken  that  afternoon,  and  on  Monday  from  12  to  2,  at  the  London  Tstob. 


NEW  ISSUE  OF  THE  SHARES  OF  THE  CBEDIT  FONCIEB  A5D 
MOBILIER  OF  ENGLAOT). 

Afteb  the  Tery  favourable  termination  of  the  meeting  of  the 
Credit  Foncier  and  Mobilier  of  England,  Limited,  the  directon  at 
once  issued  the  prospectus  for  placing  the  100,000  new  shares  of  £^ 
eaeh.  Upon  this  issue,  £5  per  share  only  will  be  called  by  instahnents, 
no  further  call  being  contemplated.  Of  this  amount^  50,000  sharea 
wiU  be  allotted  to  the  present  shareholders,  and  50,000  shares  will  be 
distributed  among  the  general  public.  When  these  shares  are  placed 
the  subscribed  capital  will  consist  of  JP4,000,000,  the  paid-up  capital 
£1,000,000,  the  general  reserve  fund  £500,000,  and  the  dividend  re- 
serve fund  £100,000.  The  terms  of  subscription  both  to  the  existing 
shareholders  and  the  public  have  already  been  announced,  and  there 
is  no  doubt  that  the  lists  will  immediately  be  filled.  The  date  of  ap- 
plication is  limited  to  the  2nd  of  November  for  London,  and  Friday, 
the  3rd,  for  the  country.  In  the  prospectus  the  directors  place  it  on 
record  as  their  deliberate  opinion  and  conviction,  <*  that  this  company 
is  destined  in  a  very  short  period  to  take  a  foremost  place  amcmg  the 
leading  monetary  institutions  of  the  counlay." 


TENDERS  FOR  BILLS  ON  INDIA. 
Thb  biddings  for  bills  on  India  took  place  on  the  4th  October,  at  the  Baak 
of  England.  The  proportions  allotted  were— to  Calcutta  Rs.10,^,000,  to 
Madras  Rs.  2,40,000,  and  to  Bombay  Bb.  8,00,000.  The  mMumttm  price 
was  fixed  at  Is.  U^d.  on  Calcutta  and  Madras,  and  Is.  llfd.  on  Bombay. 
Tenders  on  Calcutta  and  Madras  at  Is.  ll|d.  will  receive  in  foil,  and  on 
Bombay  at  2s.  about  29  per  cent. ;  above  these  prices  in  folL  Fnxtfaflr 
biddings  for  23,00,000  rupees  took  place  on  the  18th  October  at  the  Back 
of  England.  The  proportions  allotted  were,  to  Calcutta,  9,82,000  rapeea ; 
to  Madras,  4,18,000  rupees ;  and  to  Bombay,  9,00,000  rupees.  The  «t»t- 
mwm  price  was  as  before.  Is.  Il|d.  on  Calcutta  and  Madras,  and  Is.  llfd.  ob 
Bombay.  Tenders  on  Calcutta  and  Madras  at  Is.  ll|d.,  will  receive  aboot 
47  per  cent.,  and  on  Bombay,  at  2s.,  about  19  per  cent. :  above  these  pnoM 
in  full. 


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Communication.  1313 

Bahk  of  Austealasia,  BELYAdTy  ViOTOMA.— At  a  meeting  of  the 
most  influential  of  the  inhabitants  of  this  town,  a  large  snm  of  money  was 
subscribed  for  the  purpose  of  presenting  a  silver  epergne  and  complete 
service  of  plate  to  the  local  manager  of  the  above  bank,  on  his  removal  to 
GhristchuTch,  New  Zealand.  At  the  recniest  of  the  subscribers,  the  sec- 
retary, D.  J.  Howes,  Esq.,  J.P.,  asked  the  Yen.  Archdeacon  Braim,  who  was 
returning  to  England,  to  expend  this  money.  The  plate  has  been  selected, 
and  goes  out  this  month.  The  epergne  bears  the  following  inscription  :•— 
^  Presented  to  William  Lilly  Hawkins,  manager  of  the  Bank  of  Australasia, 
Belfast,  Port  Fairy,  Victoria,  on  the  occasion  of  his  removal  therefrom, 
after  a  residence  of  eleven  years,  to  New  Zealand,  as  a  slight  token  of 
appreciation  by  his  friends  of  his  sterling  worth,  both  in  his  public  and 
private  capacity." 

We  have  much  pleasure  in  stating  that  the  suggestion  contained  in  our 
September  number  for  facilitating  the  remittance  of  bills  and  cheques 
from  country  to  London  bankers,  and  expediting  the  operations  of  the 
Clearing  House,  seem  to  have  met  with  much  approval.  We  find  that  the 
plan  has  been  abready  put  in  force  by  several  of  the  largest  private  and 
joint-stook  banks,  and  that  the  results  are  most  satiflfactory. 


€mxxmtxmtwn6. 


To  the  Editor  of  the  "  Batikera*  Magazine." 

PROFITS  OF  ENGLISH  BANKS. 

SiB,--Can  any  of  your  correspondents  justify  or  explain  the  procedure 
of  English  banks  under  the  following  circumstances  ?— 

Say,  A  opens  an  account  with  a  London  bank,  and  pays  to  one  of  his 
creditors  a  cheque  for  £100,  dated  2l8t  October ;  this  is  again  paid  to  some 
provincial  creditor,  and  so  on  it  goes  from  hand  to  hand  imtil  it  reaches 
the  bank,  perhaps  on  31st  October;  but  instead  of  debiting  A  at  the 
31st  (as  is  the  custom  in  all  Scotch  banks)  he  is  debited  at  the  21st,  the 
date  inscribed  on  the  cheque,  and  the  bank  thus  pocketQ  ten  days'  interest, 
which  A  is  entitled  to.  ^ 

This  may  appear  a  small  item,  but  in  these  days  of  high  rates,  and  on  a 
large  account,  it  becomes  considerable.  I  am  told  that  cheques  for  small 
sums,  such  as  £26,  £50,  or  £100,  paid  to  tradespeople,  often  take  several 
weeks  tA'each  the  bank. 

I  should  be  glad  to  hear  that  this  is  not  the  invariable  custom  of  all  the 
English  banks,  for  there  is  not  much  to  be  said  in  favour  of  the  proceeding. 

H« 


BBANCH  BANK  CHEQUES. 

October,  1865. 
Sib, — I  am  very  pleased  to  find  my  inquiry  in  your  September  numberi 
respecting  the  cauiing  of  branch  bank  cheques,  bo  promptiy  responded  to  by 

Digitized  by  LjOOQIC 


iai4  Banking  Ohituary. 

two  of  yotix  oorMpandBiitB.    I  think  thia  is  on©  of  the  bert  mfiw»  of 
TentUating  quwtionB  on  banking,  especially  irhere  bo  much  u  regolated  by 

Mr  H-  G.  MfV"^^'*^^  baokfl  up  your  opinion,  by  quoting  a  oaae  tned  al 
the  Oiieen's  Bench,  wMle  « W.  J.  A/'  (evidently  against  his  own  ju^- 
ment),  giv«i  one  which  waa  decided  a^pMnst  the  banker.  I  hariUy^know 
on  what  grounds  auch  a  legal  opinion  could  be  given,  except  there  waa 

delay  in  the  presentment.  .    .     ,  xt  i.      v.^«  ♦^^ 

The  two  cases  above  quoted  at  present  stand  thus— ome  has  b^  tned 

and  decided  at  the  Queen's  Bench,  and  the  other  rests  on  an  undiluted 

legal  opinion ;  theroforethe  balance  of  o]^on  is,I  think,greaily  m  faroni 

of  thslaaiiker.  ^        ,_  ,.    x  j. 

Your  obedient  servant, 

T. 


BRANCH  BANK  CHEQUES. 

Margate,  26th  October,  1865. 
Sib,— Permit  me,  through  your  columns,  to  aak  your  correspcm^ts, 
«  Mr.  H.  G.  Marshall "  and  '*  W.  J.  A.,"  if  there  were  any  grounds  affe^ng 
the  cases  they  respectively  allude  to  other  than  those  they  speak  of,  as 
from  their  respective  statements  it  would  appear  the  drcumstanoes  wctc 
identically  similar,  whilst  the  legal  decisions  were  diametrically  opposed  to 
one  another. 

I  am,  Sir, 

Tours  obediently, 

T.J. 


THE  ISLE  OF  MAN  AND  JERSEY. 

October  16th,  1865. 
BiE, — ^In  your  next  number  will  you  please  to  say,  whether  a  draft 
drawn  from  London  on  a  person  in  business  at  the  Isle  cmE  Man  or  Jeciey, 
and  which  is  accepted,  payaUe  at  a  bank  in  either  of  those  islands,  requiicB 
a  foreign  bill  stamp,  or  is  an  inland  stamp  suflSicient  I 

A  SUBSCEBKB. 

[If  a  sole  biU,  the  same  duty  and  stamp  as  for  an  inland  bill ;  if  drawn 
in  a  set  of  threoi  then  the  stamps  specially  appropriated  should  be  used. J 


BANKING  OBITUARY. 

On  the  80th  September,  at  Brighton,  Joseph  Aldersey  Olding,  Esq.,  of 
Lee  Road,  Blackheath,  second  son  of  the  late  Stephen  Olding,  Esq.,  oi 
Clement's  Lane,  Lombard  Street,  and  Lower  Clapton,  aged  46. 

On  the  23rd  October,  at  Brighton,  Edward  Wheeler  Mills,  Esq.,  of  67, 
Lombard  Street,  and  6,  Bryanstone  Square,  aged  61, 


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1315. 


MONTHLY  CHRONOLOGY. 

October  2. — ^Thti  Directors  of  the  Bank  of  England  advanced  their  rate 
of  discount  from  4|  to  6  per  cent. 

2. — The  Directors  of  the  Bank  of  Frankfort  put  up  their  rate  from  4  to 
4}  per  cent. 

3. — The  Bank  of  Prussia  raised  its  rate  of  discount  to  6  per  cent. 

6. — The  Directors  of  the  Bcmk  of  England  further  advanced  their  rate 
from  5  to  6per  cent. 

5.— The  Bank  of  France  increased  its  terms  from  9  to  4per  cent. 

6. — ^The  authorities  of  the  Bank  of  Holland  advanced  their  rate  from  3| 
to  4  per  cent. 

7.— The  Directors  of  the  Bank  of  England  again  further  increased  their 
terms  for  discount  from  6  to  7  per  cent. 

10. — The  Bank  of  Prussia  again  put  up  its  rate  from  6  to  7  per  cent. 

14, — The  National  Bank  of  Belgium  also  advanced  its  rate  from  4  to  5 
per  cent. 

18.-«Lord  Palmerston  died  at  Brocket  Hall,  HertfordahirCi  after  a  short 
illness,  in  the  81st  year  of  his  age, 

21. — Earl  EusseU  appointed  Premier. 

27. — ^Lord  Palmerston  buried  in  Westminster  Abbey.  The  Stock  Ex- 
change and  many  other  public  places  closed  in  consequence. 


BANK  MOVEMENTS. 


Thb  liquidators  of  the  East  of  England  Bank  have  announced  a  third  dividend 
of  9».  6d.  in  the  pound.  It  will  Iw  remembered  that  this  bank  failed  aboat  a 
twelvemonth  back,  with  £600,000  liabilities,  and  the  previoas  dividends  have 
amounted  to  15 J.  in  the  pound. 

It  is  intimated  that  Mr.  F.  W.  Rossel],  M.P.»  chairman  of  the  National 
Discount  Company,  and  Mr.  M.  H.  Chaytor,  deputy-chairman  of  the  National 
Discount  Company,  have  joined  the  board  of  the  IJ»ndon  Bank  of  Mexico  and 
South  America. 


The  directors  of  the  British  and  Califomian  Banking  Oompany»  limited 
have  appointed  Mr.  Samuel  Magnus  their  London  manager* 

Mr.  Henry  Davidson,  of  the  firm  of  Messrs.  Davidson  and  Co.,  of  S,  Lime 
Street  Square,  London,  has  joined  the  diiectk>n  of  the  Bank  of  Queendand. 

The  National  Bank  of  Australasia,  which  was  established  in  1888,  and  has  a 
large  and  prosperous  business  in  the  colonies  of  Victoria  and  South  Australia, 
offers  10,000  Miares  of  £4  paid  up  at  a  premimn  of  £2.  These  shares  wiU  be 
on  the  London  register,  and  the  premium  derived  from  them  is  to  be  added  to 
the  reserve  fund,  which  will  then  amount  to  the  handsome  sum  of  £130,000. 
The  Melbourne  direction  embraces  the  names  of  the  Speaker  of  the  Legislative 
Assembly  and  the  President  of  the  Legislative  Council.  The  bank  has  thirty* 
two  branches  and  agencies. 


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1316 

Thb  Frauds  oh  thb  Cahthuiurt  Savikos  Ba«.-AI  ^^^^ 
Qaarter  Sesaons,  on  the  18th  October,  Samncl  Qrearei^mged  ""JT;™*  ^^ 
STS^^S^  and  actwry  to  the  CantcrlwiT 

ckMeXShe^dement.  The  amount  of  the  deporits  m  the  hmk  »»»*»« 
xTsK  Tdtte  Sreatigmtion  showed  that  the  prisoner's  ddU«tooi»jWheh 
^tended  orer  25  years,  «ceedcd  £9,200.  The  pf«ase  chsrg«  P^ 
SSst  him  were  4at  he  in  HoTember.^  ^^^!«^*^!jiSil^iSf^^ 
tSSVmis  of  £80,  £66.  and  £100  ^JS^^fj^^^f^^'^^^^P^^^^ 
iSS^thers  tmstees  of  the  hank,  'fee  indictment  contained  a  second  <»p« 
Sfr^'ii^A  rJ^Tine  money  <m^^otih^  ''"'''^"tiT^ 
UtolSrowni»e.  Mr.Ad&»napn«wedforgieprosecatiOT^ 
for  the  prisoner.  ITie  prisoner  pWed  "Quiity."  and  Mr.  ^ddiwnhnd^ 
iSted  t£e  circumstancJ  ont  of  which  the  charges  had  •««^^.iW«^ 
STthe  prisoner  was  appointed  secretsry  and  actoiy  of  the^n^Wk 
™years  Vjo  at  a  salary  of  £40  a-year,  which  had  he«i  fJ^^^yj^^S 
to  £200  a-year,  in  addition  to  house  rent,  K»s,  »nd  coal.  ]^}^J^,  SS^SST 
tampering  with  the  money  of  the  hank  by  fiibncating  depositow  PJf^ 
ftomwhilh  the  entries  in  the  ledgem  were  made.  ^«  •™J^*»  ff^^jS 
depositors  were  corrccay  entered  in  their  own  paas-bo(^  but  m  «o»T^ 
thf^isoner  placed  before  the  clerk  to  cw>y  mto  the  Icd^  the  figi^«« 
80  altered  as  to  show  the  sums  which  he  had  «ttcceeded  m  drawii«  fton  »« 
different  accounts.  The  entire  deficiency  wm  found  to  be,  m  «?\J^"3 
£9,300.  Mr.  Francis  addressed  the  court  in  miti^^^^O'™™^*'^!!! 
aUeged  that  the  prisoner  was  first  led  to  tamper  with  the  ™^^  21  kM 
through  losses  in  another  business  with  which  he  was  9^^^}^J^z!il^ 
period  through  specuUtions  in  which  he  embarked  witii  » '^  ^.[^'I'JS 
position.  In  anW^  to  the  Eecoidcr  (Mr.  John  Deedea)  Mr.  O^^^^^ 
that  the  claims  of  all  the  depositors  had  been  fullymct^  the  trustees  Bxm^ 
used  the  resenre  fund  of  £3,500  for  that  purpose.  Ttoperty  to  flie  «««««.? 
£700  was  giren  up  by  the  prisoner,  and  his  surety  had  paid  £400.  ]J™;r^ 
the  bsnk  premises,  made  up  orer  £6,000.  so  that  the  aetualkMS  to  ^.^^ 
was  about  £3,000.    The  Becoider  sentenced  the  prisoner  to  penal  semww  » 

l^Wn^  OF  Bib  Jobh  Lubbock.— The  will  of  Sir  John  Willism  l>"Wi«M»rt;« 


i^DDocK,  isart.,  the  actmg  executor,  power  Deing  resenrea  lo  ^^^JJITJ^T^^ 
relict,  to  prove  hereafter.  The  personalty  was  sworn  under  £I20,«w.  *"J 
will  is  dated  3rd  December,  1864.  and  the  tesUtor  died  on  the  20th  J™«J*^  " 
the  age  of  sixty-two.  Sir  John  has  bequeathed  to  his  wile  his  jeweli  snd  pin- 
nhemalia,  also  the  furniture,  wines,  farming  stock,  horses  and  ^"^^f^^Jr^. 
lotcly ;  and  leaves  her  Udy ship  the  use  and  enjoyment,  for  her  life,  of  his  P»™?f; 
paintings,  books,  and  plate,  which,  at  her  ladyship's  decease,  will  ps«  »^ 
eldest  son.  the  present  baronet.  He  disposes  of  hu  share  in  the  bsabaf-M* 
(Hobarts.  Lubbock  and  Co.).  as  follows :  one  moiety  to  his  eldest  son.  tadw 
other  moiety  equaUy  between  his  sons  Hcniy  snd  Beanmont,  th^ K^^^J!?; 
from  an  annuity  of  £6,000  to  his  relict.  To  his  sons  Alfred  and  Bdisri  «f»» 
legacy  of  £10.000.  To  his  son  Neville  (firm  of  Cavan,  Lubbock  and  Co.),  •» 
5S.!S!i?  Montafirue  and  Frederic,  legacies  are  bequeathed  amounting  to  »!«« 
•iT^  ;  ^^^  business  arrangements,  they  also  paying  to  his  refict  s  Be  "T 

tSi^Sr*^«?'*»*'*^'  Mary  and  Diana,  he  states,  are  both  suffiacBtlf  p^ 
hi  l«l/«  ♦  ?""  "^^^  "*d  leasehold  estate?  in  Norfolk  and  Kent  -sd  elicirjert 
hS  Jdi^  *****  *^"-    '^^^  '^^^«  ^^  ^"  personal  estate  he  beq«»tk»  ^ 


Digiti 


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1317 


THB  PRESBirr  AND  THE  FUTURE  OF  THE  MONEY  MARKET. 

It  is  quite  clear  that  at  the  present  juncture  we  are  in  a  criti- 
cal position  with  regard  to  the  state  of  the  money  market. 
Durmg  the  last  three  weeks  we  have  passed  through  a  period 
such  as  has  usually^  in  the  olden  days,  preceded  a  panic,  but  with 
a  calmness  that  has  denoted  how  yastly  things  within  the  past 
few  years  have  altered  in  this  respect.  If  previously  to  1857-58 
the  rate  of  discount  had  been  altered  three  times  within  one 
week,  there  would  have  occurred  the  most  painftd  excitement  that 
could  have  been  witnessed-  Could  our  forefathers  be  summoned 
from  their  graves  and  be  informed  that  the  Bank  rate  of  dis- 
count was  4i  per  cent,  on  the  2nd  of  October^  was  then  raised  to 

5  per  cent.;  that  it  was  again  raised  on  the  5th  from  5  per  cent, 
to  6  per  cent.,  and  on  the  7th  that  it  was  once  more  raised  from 

6  to  7  per  cent.,  and  that  these  changes  took  place  without  re- 
garding panic  symptoms,  they  would  scarcely  believe  the  fact. 
Yet,  although  this  has  been  the  case,  while  still  some  slight  ap- 
prehensions exist  of  the  terms  being  maintained  at  the  present 
point,  if  they  are  not  increased,  the  feeling  among  bankers  and 
others  seems  to  be  that  no  fear  of  alarm  need  be  entertained, 
trade  having  latterly  remained  in  a  sound  and  steady  condition. 
Besides,  we  are  all  now  becoming  so  used  to  these  occasional 
pinches  that  unless  something  is  very  rotten  at  the  core  no  great 
damage  can  ensue. 

The  three  great  causes  which  have  contributed  to  act  upon 
the  rate  of  discount  are  as  follows : — First,  there  is  the  increased 
expenditure  of  the  public,  the  higher  rates  of  wages,  and  the 
more  extended  employment  of  labour ;  in  the  second  place,  a 
large  quantity  of  gold  has  gone  to  Ireland  to  pay  for  cattle,  the 
prices  of  which  at  the  large  fairs  have  been  four  and  five  pounds 
per  head  above  those  paid  in  antecedent  years  ;  the  linen  trade 
at  the  same  time  being  in  a  state  of  great  activity ;  and  in  the 
third  place,  the  speculation  in  cotton  at  Liverpool  has  absorbed 
increased  sums  of  money,  the  general  credit  of  the  operators  not 
being  so  satisfactory  as  eighteen  months  or  two  years  ago.  This 
has  led  to  the  bankers  throughout  the  Lancashire  and  adjoining 
districts  keeping  their  money  close  in  hand,  as  they  have  been 
enabled  to  employ  it  to  advantage.  The  Fenian  agitation  in 
Ireland  was  also  said  to  have  exercised  influence,  but  such  an 
assertion  is  not  traceable  to  any  authentic  source. 

Enough,  however,  is  here  advanced  to  show  the  eflfect  of  the 
absorption  and  the  causes  which  have  produced  it.  The  advance 
in  the  rate  from  4^  to  5  per  cent.,  and  from  5  to  6  per  cent, 
were  not  thought  anything  of,  but  as  merely  indicating  the 
altered  situation  of  the  Bank,  and  the  change  in  the  general 

Digitized  by  LjOOQ IC 


1318        The  Present  atid  Future  of  the  Moneff  Market. 

prospects  of  the  money  market.  But  wlieii  the  turn  firom  5  to  6 
per  cent,  was  followed  by  the  adTaoce  fromd  to  Tpeir  cent.,  then 
it  was  perceiYed  that  the  Bank's  resources  were  being  Iso^y 
interfered  with.  Keyertheless,  although  the  sudden  and  pio- 
gressive  rise  was  considered  sufficiently  ominous^  it  was  received 
as  a  necessity,  and  the  great  hope  expressed  was  that  it  would 
stay  there  and  not  be  carried  to  8  per  cent.  It  was,  howeyer, 
well  understood  that  the  directors,  if  they  imagined  it  requisite, 
would  have  gone  to  8  or  even  9  per  cent,  had  their  reserve  of 
notes  and  stock  of  bullion  not  become  stronger.  The  despatch 
of  gold  to  Ireland  took  place  at  an  unfortunate  period,  just  prior 
to  the  payment  of  the  dividends,  and  the  absorption  of  notes  and 
coin  at  that  moment  being  general,  the  Bank  directors,  to  keep 
the  establishment  in  anything  approaching  a  position,  were  com- 
pelled to  obtain  advances  upon  stock.  By  two  large  operations 
of  this  kind  they  were  enabled  to  bring  themselves  into  a 
tolerably  satisfactory  state,  and  the  peril  of  a  further  rise  in  the 
rate  appears  to  be  temporarily  delayed. 

The  Bank  of  France  all  this  while,  their  resources  being  better 
and  their  loss  of  coin  and  notes  being  trifling,  althou^  their 
silk,  oil,  and  com  hitherto  exercised  some  effect,  only  carried 
their  terms  from  3  to  4  per  cent.,  and  have  since  not  moved 
either  way.  That  establishment,  however,  has  been  in  a  very  ex- 
ceptional situation  the  last  two  years.  France  has  in  a  great 
degree  escaped  the  pernicious  influence  of  a  joint-stock  mania. 
No  rampant  desire  is  now  exhibited  thereto  subscribe  for  shaits 
in  pubhc  companies,  and  if  undertakings  are  organised,  thev 
have  been  invariably  introduced  here  to  obtain  the  capital 
To  this  extent,  therefore,  the  Bank  of  France  has  benefited,  not 
having  lost  any  of  her  resources  in  the  locking  up  of  capital  in 
unremunerative  enterprise. 

The  last  Bank  of  England  return  just  published  shows  that 
the  establishment  is  in  a  much  healthier  condition,  and  that  the 
reserve  and  bullion  is  rapidly  recovering.  It  was  expected 
there  would  be  a  chanee  for  the  better,  but  not  one  so  important 
as  indicated  by  the  figures.  We,  however,  scarcely  find  our- 
selves in  this  relieved  position  before  there  are  grave  surmises 
started  of  the  probable  revival  of  shinments  of  silver  to  Bcmibay 
and  the  East,  and  the  outflow  of  gola  to  Brazil.  The  tocsin  of 
alarm  has  been  sounded  very  vigorously  in  some  quarters ;  but 
while  we  would  not  wish  the  public  to  apprehend  any  difficultv^ 
it  is  very  likely  considerable  sums  will  be  sent  away.  Should 
these  be  out  of  proportion  of  estimates  the  Bank  directors  may 
be  compelled  to  adopt  further  measures  of  restriction ;  but  if,  as 
is  said,  the  imports  from  America,  Australia,  and  the  West  Indies 
shall  keep  pace  with  the  outward  shipments,  the  rate  may  remain 

Digitized  by  LjOOQIC 


Trade  qf  the  United  Kingdam. 


1319 


iit  its  present  quotation.  While  hesitating  to  predict  the  ex- 
istence of  extreme  rates  of  discount  for  the  remainder  of  the 
3^ear,  we  do  not  think  anyone  can  safely  reckon  on  much  lower 
terms  than  embraced  in  the  range  of  6  to  7  per  cent. 


TRADE  OF  THE  UNITED  KINGDOM. 

Thb  Board  of  Trade  returns  for  the  month  and  eight  months  ended  the 
31st  August  were  issued  on  the  28th  September,  and  again  present  results 
of  an  u^avourable  character,  the  falling  off  in  the  value  of  exports  being 
motre  marked  than  for  some  time  past,  and  must  in  a  great  measure  be 
attributed  to  the  general  dulness  of  trade.  The  total  declared  value  of 
exports  for  the  month  last  past  was  £14,168,648,  against  £16,274^269  in  the 
month  of  1864,  and  £14,088,814  in  that  of  1863,  which  is  a  decline  com- 
X^ared  with  the  former  period  of  £2,115,621,  but  an  increase  over  the  latter 
of  £60,834.  For  the  eight  months  of  the  present  year  the  total  was 
£102,400,696,  against  £108,716,219  in  1864,  and  £89,751,851  in  1863,  which 
is  a  decrease  as  contrasted  with  1864  of  £6,315,523,  but  an  increase  over 
1863  of  £12,648,845.  With  regard  to  exports,  these  returns  show  an 
increase  in  alkali,  beer  and  ale,  coals  and  culm,  cotton  yam,  linen  manu- 
factures, machinery,  metals,  seed  oil,  wool  and  woollen  and  worsted 
manufactures.  On  the  other  hand,  there  has  been  a  falling  off  in  cotton 
manufactures,  earthenware,  haberdashery  and  millinery,  hardware  and 
cutlery,  linen  yam,  thrown  silk,  and  silk  manufactures.  With  respect  to 
imports  there  has  been  an  increase  in  animab,  raw  cotton,  flax,  guano 
flaxseed  and  linseed,  tallow,  spirits,  sugar,  timber  and  tobacco,  but  a 
decrease  in  clocks  and  watches,  hemp,  wool,  woollen  manufactures,  cocoa, 
coffee,  tea  and  wine.  In  the  case  of  cereals  there  has  been  an  inorease  in 
the  importation  of  oats,  beans,  wheatmeal,  and  flour,  and  a  decline  in  wheat, 
barley,  peas,  and  Indian  com.  As  respects  provisions,  the  increase  is 
shown  in  bacon  and  hams,  and  salt  beef,  and  the  reverse  in  salt  pork, 
butter,  cheese,  eggs,  and  lard.  The  annexed  tables  exhibit  the  changes  is 
the  several  articles  enumerated : — 

Exports. 


...    tons 

1064. 

1865. 

Coals  and  cnim 

905,977 

917,741 

Cotton  manufactures   ... 

...    yaids 

181,506,861 

152,420,810 

Cotton  yam      

...     lbs. 

7,826,827 

0,821,035 

llaberdashenr  and  millinery  .. 
Linen  manufactores    

...  value  £ 

666,461 

509,073 

...  yards 

17,612,810 

80,245,991 

Xiincn  yam        •••        ..«        •*• 

...     lbs. 

4,486,869 

3,489,037 

Iron,  pig            

.-     tons 

89,059 

57,063 

Ditto,  railway 

»..       ff 

39,351 

47,835 

Copper,  unwrou^ht     ..•  -^    ... 
Ditto,  sheets,  nails,  &c. 

...   cwts. 

9,106 

12,163 

...         ,, 

62,636 

82,192 

Oil  seed            

...  gallons 

774,786 

1,030,079 

Silk  manufactures        

...  value  £ 

147,027 

139,125 

Ditto,  thrown 

...     lbs. 

43,334 

18,105 

Rpirits,  British 

Woollen  cloths,  &o 

...  gallons 

849,887 

216,526 

...    yards 

8,367,992 

2,980,435 

Woollen  and  worsted  yam     ••« 

...     lbs. 

8,016,085 

2,878,208 

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1320 


State  of  the  FranJifort  Money  Marka. 


Imfoktb. 


•■• 

.•• 

lbs. 

18M. 

1MB. 

Cocoa     •••        •••        ••• 

796,403 

319,105 

Coffee     

»•. 

••. 

tt 

16,747,939 

15,992,455 

Wheat 

..• 

... 

qrs. 

2,505,25S 

2,024.724 

Wheat-meal  and  floor 

.*• 

... 

cwts. 

264,398 

272,895 

Cotton,  raw       

..• 

... 

ff 

645,376 

866^78 

£iax        •••        •••        ••• 

.*• 

... 

91 

230,473 

278,110 

Hemp     ...        ...         •• 

*.• 

... 

f> 

147,346 

131,328 

Hides,  tanned,  &c. 

•.• 

... 

lbs. 

1,034.154 

533.»M 

Leather  mannfactorea ... 

••• 

... 

pairs 

815,2gO 

801,571 

Batter     

•.• 

... 

owts. 

106,529 

105,4A6 

Cheese 

••■ 

.*• 

If 

150,967 

129.646 

Flax-seed  and  linseed  ... 

•.• 

... 

Z. 

108,227 

155^721 

Silk,  raw 

.•• 

... 

297,840 

984,399 

Silk,  thrown      

••• 

.•■ 

It 

3,390 

1,220 

Silk  mannfactores 

••• 

... 

9» 

239,184 

229,^18 

Spirits     

... 

gallons 

567,784 

965.751 

Suflrar,  nnrefined 
Tallow 

••• 

... 

cwts. 

1,279,986 

1,298^.1 

... 

... 

fi 

63,495 

105,073 

xea         •••        ...        ••• 

••• 

... 

lbs. 

2,741,127 

1,842,421 

Tobacco  

... 

... 

tf 

2,764.191 

8,068,74fi 

Wine      

..• 

... 

gallons 

1,370,671 

1,0C7,133 

Wool      

.*• 

••• 

lbs. 

27,963,511 

24,012,398 

Woollen  manufactures... 

••• 

▼alae£ 

286,277 

180,137 

THB  STATE  OF  THE  FEANKFOBT  MONEY  HABKST. 

Thb  insane  cry  for  the  inoreaae  of  a  oonveriing  medium  wheneror  money 
fetches  high  rates  finds  an  illustration  here  at  this  yery  momeoi.  Oar 
Franl^ort  hank  disposes  of  a  capital  of  10  milliona,  a  bank-note  isaiie  of 
SO  millions,  and  deposits  on  an  average  of  7  millions  of  florins.  This 
enormous  amount,  almost  a  sixth  of  the  resources  of  the  Bank  of  Bn^^tand, 
is  in  ordimuy  times  by  far  too  large  for  the  requirements  of  ihia  plaee,  and 
the  more  so  as  the  bank  has  to  compete  in  the  discount  market  with  the 
firm  of  Bothschild  and  private  capitalists.  For  ten  months  in  the  year  the 
bank  is  therefore  compelled  to  look  out  for  business  at  the  various  ooainier- 
cial  towns  of  South  Germany,  and  the  consequence  is  that  whenever  an  ex- 
traordinary demand  for  mon^  arises  here  the  funds  of  the  bank  are  kckfd 
up  and  imavailable  for  the  legitimate  trade.  This  year  the  bank  anthori- 
ties  committed  the  mistake  of  going  the  whole  length  with  their  issue  d 
30  millions  before  raising  the  rate  of  interest,  and  when  the  [aeaaum  caiae 
there  were  no  funds  left,  and  the  oonsequence  was  that  money  became  not 
only  dear,  but  difficult  to  get  at  all.  The  directors  had  acted  under  the 
fallacy  that  while  their  sU>ck  of  bullion  remained  unimpaired  it  did  not 
matt^  whether  their  notes  went  out  to  the  utmost  limit  of  their  is«i& 
While  money  was  cheap  our  leading  bankers  took  it  at  bank  rates  <xt  drew 
foreign  bills  at  high  exchanges  and  lent  Uie  produce  out  on  mortgage  d 
American  bonds  at  high  rates,  and  thus  the  very  funds  of  the  bank  were 
made  use  of  to  stock  the  Bourse  with  United  States'  securitiea.  While 
money  was  cheap  in  London  and  Paris,  and  the  exchange  unoommoi^f 
high,  this  was  a  lucrative  business ;  but  now  the  time  having  oome^  with 
increased  rates  in  London  and  Paris,  and  exchanges  defining,  theae  trans- 
actions  must  be  Hquidftted,  and  the  mortgage  bonds  taken  up  by  the  hcddeni 

Digitized  by  LjOOQIC 


Monetary  Intelligence.  1321 

Our  Bourse  is  thereby  thrown  into  complete  "  disarray  "  and  the  result 
would  have  been  yet  more  calamitous  if  London  and  Amsterdam  had  not 
taken  up  last  week  large  amounts  of  American  bonds  sent  from  here.  As 
it  is,  rates  as  high  as  12  per  cent,  had  to  be  paid  for  carrying  over  Ameri- 
can bonds  to  the  next  account.  Now,  the  cry  of  the  sufferers  under  their 
own  folly  is  for  an  increase  of  the  capit-al  and  the  issue  of  the  bank.  It  is 
to  be  expected,  however,  that  our  authorities  will  not  sanction  such  a 
measure,  and  not  make  themselves  responsible  for  the  false  step  to 
fetch  "  money  from  the  skies,"  for  the  sole  purpose  to  enable  speculators  to 
bring  jret  another  bundle  of  American  bonds  to  this  place,  while  there  are 
plenty  in  hand  to  accommodate  such  capitalists  as  are  desirous  to  invest 
money  in  them. 


BKVIEW  OF  THE  MONEY  MARKET  FOR  THE  MONTH 
OF  OCTOBER. 
The  state  of  the  money  market  during  the  past  month  has  been  rather 
exceptional.  The  Bank  accounts  having  fluctuated  and  the  terms  for 
discount  having  been  carried  from  4)  to  7  per  cent.,  the  question  was  at 
one  time,  might  there  not  be  some  disturbance  in  the  general  financial 
circles  ?  Such  an  unfortunate  occurrence  has  happily  been  avoided,  and  idl 
are  now  getting  once  more  into  a  healthy  situation.  Still  the  supply  of 
capital  is  not  so  large  as  usual  at  this  period  of  the  year,  and  the  pinch  has 
beien  felt  with  some  little  severity.  The  transmission  of  sovereigns  to  Ireland, 
and  a  farther  considerable  absorption  of  notes  and  coin  in  the  provinces,  are 
circxmistances  which  have  influenced  the  quotations,  but  for  the  moment 
they  are  a  little  more  easy.  It  is  not  expected  we  shall  see  any  great 
variation  in  the  official  ftwaimym  for  the  next  fortnight,  until  it  sha&  be 
ascertained  what  may  be  the  extent  of  the  shipments  of  mlver  to  India  and 
!Egypt.  The  Bank  of  France  have  only  advanced  their  rate  1  per  cent, 
and  their  resources  have  only  been  affected  in  a  very  partial  degree.  The 
joint-stock  banks  allow  5  per  cent,  for  money  at  call ;  5|  per  cent,  for 
money  at  7  days'  notice,  and  6  per  cent,  for  money  at  14  days'  notice. 

Little  or  no  change  has  occurred  in  English  securities,  but  quotations 
have  been  fully  supported.  The  tendency  is  not  very  decided  just  now, 
the  death  of  Lord  Palmerston  and  the  re-organisation  of  the  Ministry 
having  kept  transactions  in  check.  Foreign  securities  have  exhibited  a 
moderate  amount  of  business.  The  operations  in  any  class  have  been 
limited,  and  within  the  last  few  days  a  general  decadence  has  taken  place. 
The  speculative  descriptions,  such  as  Mexican,  Spanish,  Greek,  and 
Turkish,  are  generally  lower. 

Railway  shares  have  become  weak  through  the  late  sales  for  the  fall. 
Now  the  account  is  in  course  of  adjustment,  several  of  them  are  firmer, 
outstanding  engagements  having  been  closed. 

Bank  and  finance  shares  are  rather  higher.  A  moderate  good  business  is 
transacted  in  them,  and  through  favourable  dividends  prices  are  sustained. 
The  great  feature  however  has  been  the  gradual  and  progressive  rise  in 
the  shares  of  Overend,  Gumey^and  Co.,  which  have  gone  to  9|  to  f  prem. 

The  produce  markets  have  been  pretty  steady,  with  a  fair  extent  of 
transactions.  When  there  was  a  prospect  of  a  further  advance  in  the 
value  of  money  the  tendency  was  dull.  There  is  uow  without  doubt  a  much 
better  feeling. 


Digiti 


ized  by  Google 


1322 


THE  GRAIN  TRADE. 

NoTWiTHSTAKDiKO  tiio  large  importation  of  all  descriptions  of  cereals,  tl » 
markets  throughout  the  month  have  shown  a  gradually  riaing  tendency.  ILe 
recent  wet  weather  has  caused  the  samples  brought  to  market  to  be  is  s 
less  satisfactory  condition  than  for  some  time  past,  [Kirticul&rly  wheat,  la 
consequence  of  the  hardening  tendency  of  prices,  millers  haye  booght  l>Tit 
sparingly,  and  for  other  sorts  business  has  also  been  very  quiet.  The  latest 
official  quotations  were  :— Wheat,  42s,  Id,  per  qr. ;  barley,  30«.  lid.,  aini 
oats,  205.  lid.  per  qr. ;  wheat  is  now  4s,  per  qr.  dearer  than  at  the  corre- 
sponding period  last  year ;  barley  Is,  per  qr.,  and  oats  KkL  per  qr.  dba^^.r. 
The  Gazette  returns  for  England  and  Wales  hare  been  :-- 

Week  Wheal.  Weekly  pwvad 

ending,  Qrs.  sold.  Areraee.  jyaXy.  iMtTcar. 

ises.  9,  d,  s.    d.  «.    i- 

Sep.  30  73^888  ...  40  10  ...  1    0  ...  40  11 

Oct.    7  76,387  ...  41    1  ...  10  ...  89   8 

„     14  89,312  ...  41  11  ...  10  ...  38    » 

„    21  78,404  ...  42    1  ...  10  ...  38    1 

The  importationa  since  the  harrest  of  1864  hare  been : — 

Wheat.         (MbarQnbu  Tolil. 

CwtB.                CwtB.  Cwi». 

Sixty.two  weeks  ended  23rd  Sept....      22,666,194  30,474,167  63^40^ 

Four  weeks  ended  21st  October...        24841,016    3,124,413  6,965^ 

26,507;210  33,698,580    59^05;r9D 

And  the  weekly  ayeragea  have  been :— • 
Sixty.two  weeks  ended  Sdrd  Sept.     ...      366,000      491,000        857,000 
Four  weeks  ended  21st  October      ...      710,000      781,000     1,491,00>1 

More  344,000      290,000       634^000 


STATE  OF  TRADE. 

The  stato  of  business  in  the  manufacturing  districts  was  Tory  aiumateil 
at  the  commencement  of  the  month.  Since  Uie  Bank  rate  was  raised  V>  7 
I)er  cent.,  the  speculation  in  cotton  at  Liverpool  has  subaided,  and  this  lia> 
interfered  with  activity  at  Manchester  and  elsewhere. 


NOTICES  TO  C0RBESF0KDEHT8. 


formerly  in  Idaj  and  Koveicber.  ThiB  hae  been  rendered  neoeeeary  by  the  ^rasi  incr 
tbo  meetings  of  the  Bankn  and  DisoountCompenies,  which  will  be  «iw«y»  csreftiUT  eo 
in  the  pa^cs  of  the  Bankers*  liagaxin:    We  ahAlI  alAO  (^vo  the  proccedixtfa  of  tfac  t 


We  have  iirr&sircd  in  fhtnro  to  isanc  a  double  nnmt^r  in  Febmazy  and  Aagnatk  iaitpsd  ef  i- 

reoarcMl 
;  pa^cs  of  the  Sankers'  Jlagaxin:  We  ahall  alAO  (^vo  the  proceeding  of  the  wi  •:3 
Oedit  and  Finance  Companieaaa  they  are  more  or  leaaaaaociated  with  bankinir.  ao  thai  t: 
aalAcribera  and  readera  can  refer  to  tham  without  difBonlty.  One  or  two  comnvaieifC.  --i 
Btiind  over  for  want  of  room.  Correapondenta  will  please  forward  commnnicatioaa  a<iu*eM\I 
to  the  Editor  No.  8.  Birchin  Lane;  sabecriptiona  and  orders  aanaual  to  Messrs,  OroaBiLbn.i» 
and  Bona,  Patemoator  Row.  or  Mesara.  Waterlow  and  Bona,  Carponten'  Ball,  Loodoa  W&- 
Bakkivo  ijrn  Furiacii^L  AKKODona.— It  will  be  perceived  ftom  notice  daew her*,  thai  u^ 
Kditor  of  the  Banken*  Maaaxine  ia  ooUectiDK  and  arranging  a  eoiiL'a  of  Banking  and  rxsitisJ 
Anecdotes.  Any  contribntiona  fW>m  anbacribera  and  readem  of  the  Mogmxms  wul  be  tfaeakfi./ 
received,  particolarly  if  the  anbieot-matter  shall  not  have  prerioaalr  appealed  a  port 
Nothing  pexBOKua  or  oflboaire  will  reoeiTO  pablid^. 


Digiti 


ized  by  Google 


1323 


BANK  OF  FBANCE. 

DEBTOB. 


of  the  Bank  ... 
in  addition  to 
al  (Art.  8,  Law 
10  D.  1867) 
}  of  the  Bank 
ie  branches  ... 
sin  landed pio- 

a  drenlation  ... 
ites  to  order 
L'rcipts  payable 

ht         

7  aceoani  cor- 
n-cditoTM. 
accounti,  Paria 
tich  banks 
iLs  payable     ... 
u  and  Bondiy 

6ta        

r)nnted  the  last 

:>iitha    

of^eceiptanot 
lated    

8 

Total 


Sept.  28. 


9.  0. 

182,500,000    0 


7,041.776    2 

22,106,760  U 

4.000.000    0 
834,860,676    0 

7,947,M3  28 

192,217.046  87 

140.468,712  96 

81.418.901    0 

1,411,124  76 

6,928,612  65 

1,427,623  ;7 

762,993  36 
9,602.699  48 


1,460,676,657  67 


Oct.  6. 


».  0. 

182,500,000    0 

7,044,776    2 

22,106,760  14 

4.000.000    0 
883,208,626    0 

8,881,696  63 

141.806,067  91 

183.000,822  18 

Si,350,717    0 

1,333,167  76 

6.862,249  26 

1,427,623  17 

762,993  3G 
16,647,956    3 


1,402.882,332  34 


Oct  12. 


■F.         o. 

182,500,000    0 

7,0*4,776    2 

22,105,760  14 

4.000,000    0 
693,590,676    0 

8,685,994  87 

161,693,959  58 

162,017,930  80 

80,559,024    0 

1,282,788  75 

7,662,066  75 

1,427,623  17 

752.093  36 
12,846,753  51 


Oct.  19. 


182,600,000    0 

7,044,776    2 

22,106,780  14 

4,000,000    0 
875,756,476    0 

7,734,866   4 

161,860,760  22 

141,29 1.722  93 

36,682.725    0 

1,184,089  75 

8,328,236  87 

1,427,623  17 

762.993  36 
12.239.979  63 


1,486,050,354  08  1,451,907,987  63 


Oct,  26, 


r,  o. 

182,600,000    0 


7,0W,776    2 

22,105,760  14 

4,000,000    0 
868,969,875    0 

7,660,991  48 

149.619.683  63 

137.952.596  37 

28,363,120    0 

1,129,783  76 

8,760,770  44 

1,427,623  17 

762,993  36 
12,062,296  36 


1,432,340,159  72 


CBEDITOB. 


hand  and  cash 
branch  banks 
ciol  bills  Qy«r- 

cial  biili  dls- 
<1.  not  Tet  dne 
ch  baiuca  ... 
a  on  deposits 

on       

<;h  banks 
hYenoh  pnblio 

ies       

e  branch  bonks 
uilway  shares 
l>cntarea 
i^branohbanks 
.'redit  Fonoier 

?hes    

LC  State  (Oon- 
1  June  10, 1867) 
ent  stock  re- 
usable   

Ixnmobilis6es 
J  line  9.  1867) 
t  fiim.of  Bank, 
Kicd  property 

cbcs 

of  maxiage- 


otal 


Sept.  28. 


».  c. 

492,683,602  93 

839,873  90 

385,611.991  48 
801,379.301    0 

48.264,931  90 
12,630,300    0 

13.996.100    0 
9,278,700    0 

81,110,900    0 
21,626,275.  0 

668.200    0 
466,450    0 

60,000,000    0 

12,980,760  14 
86,646,487  91 

100,000,000  0 


8,410,241  0 

1,474^238  48 
10.204.810  93 


Oct.  6. 


1.460,576,667  67 


».  c 

470.917,716  41 

866,406  73 

337.813,018    6 
820,168,102    0 

41,893.800    0 
12,627,600    0 

14,076.300    0 
9,136,100    0 

31,683,000  0 
21,974,275  0 

674,900  0 
470,450  0 

60.000,000  0 

12,980.750  14 
86,419.737  91 

100,000,000  0 


8,443,402  0 

1,624,264  23 
11,753,620  81 


Oct.12. 


1,402,882,832  84 


v.  o. 

437,766,457  12 

228,866  44 

357,220.426  17 
330,980,831  0 

38.526,700  0 
12,661,800  0 

14,025.000  0 
9,310,600  0 

31.107,900    0 
22,380,580    0 

653.600    0 
478,550    0 

60,000,000    0 

12.980,760  14 
36,419,737  91 

100,000,000  0 


8,406.813  0 

1,617,743  33 
11,335,100  87 


Oct  19. 


1,486,060,364  96 


v.         o. 

431,107,984  86 

479,288  49 

340.987.281  47 
383,946,293    0 

29.419.600    0 
12,638,700    0 

13,962,100    0 
9,310,700    0 

30,819.100  0 
22^276,680  0 

660,700  0 
482,260  0 

60,000,000  0 

12,980,750  14 
36.419,737  91 

100,000,000    0 


8,436,813    0 

1.664.919  69 
9,727,169  17 


Oct.  26. 


».  C. 

430,776,963  54 

2^146,988  10 

829.672.672  29 
326,201,968    0 

26,731,451  60 
10,280,300    0 

13,831.000    0 
9,062,700    0 

80.716,900    0 
21,921.780    0 

644,000    0 
480,060    0 

60.000,000    0 

12.980,760  14 
86,449,737  91 

100,000/)00    0 


8,411,402    0 

7.770,622  83 
10,339.265  42 


1,461^907,987  63  1,432,340,169  72 


Digitized  by  LjOOQIC 


1324 

FLUCTUATIONS  IN  ENGLISH  AND  FOREIGN  STOCKS  AND 
RAILWAY  SHARES. 


Priee  on 
Sep.  28. 

Highest 

Lowart. 

Pneem 
Oct.  ZTsh. 

Ekolish  Fukdb. 

Consolfl           

891  to   } 

89i 

881 

881  to} 

Exchequer  Bills 

4/dis. 

1/dis. 

9/dia. 

8/to2/d]s 

FoBxiON  Stocks. 

Braziliaii        

96 

96 

93 

9i 

— 

88 

86 

87 

Chilian           

.. 

lOltxd 

lOlxd 

101}xd 

Dntoh  2i  per  cents.  ..« 

61i 

6H 

61 

61 

Mexican          •••        >••        ••• 

26 

271 

241 

251 

73 

74 

73 

74 

Russian           



91 

89 

89 

Spanish          • 



46 

45 

45} 

Tiirkish  6  per  cents. 

94| 

95} 

93} 

94 

Ditto  4  per  cents. 

100 

100 

99 

99i 

Railway  Shakes. 

Brighton         •••        •••        ••• 

105J 

106 

104} 

105 

Caledonian      

129i 

130} 

126} 

128} 

Great  Eastern            

48 

49 

46f 

461 

Great  Northern         

133} 

133} 

130 

131 

Great  Western           

65} 

65} 

62} 

631 

Lancashire  and  Yorkshire    .  • . 

121 

122| 

119} 

112} 

London  and  North  Western... 

124| 

125} 

122} 

124} 

Midland         

126} 

127} 

124} 

126 

North  Staffordshire 

76J 

77 

76 

75 

South  Eastern           

80J 

81} 

79 

80} 

South  Western          

96 

97 

95 

96} 

York,  Newcastle,  and  Berwick 

llli 

111} 

109 

110} 

York  and  North  Midland    ... 

104J 

104} 

102 

103} 

East  Indian 

104| 

105 

102} 

103} 

Northern  of  France 

— 

43} 

43 

43 

CREDIT,  FINANCE  AND  DISCOUNT  COMPANIES. 


AoAtralian  Morticage,  Land 

and  Finance  (lim.) 
Consolidated  Discount  fLim.) 
Contract  Corporation  (lim.) 
Credit  Foncier  of  Mauritius 

(Limited)     

Credit  Fonder  and  Mobilier 

of  England 

Discount  Corporation  (Lim.) 
East  India  Financial 
Egvptian  Commercial  and 

Trading       

English  and  Foreign  Credit 
Financial  Disooxmt  (Lim.)-.. 
General  Credit  and  Finance 

of  London  (Lim.) 

tntemational  Financial 

Bociely  (Lim.) 
Intemadooal  Contmct 


3hare. 

Paid. 

London 
latest 
Prtcefc 

25 

60 
100 

S 
10 
10 

1* 

6 

60 

10 

7} 

SO 

100 
60 

5 
20 
10 

1? 
6} 

20 
60 
60 

4 

n 

10 

21 
41 

6 

23 

4 

€1 

SO 
60 

6 
10 

P 

BhMxm.    VsU.  Mii* 


Imperial    Meroaatile  Qredit 

(Lim.) » 

International  Land  Credit ...  SO 

Joint  Stock  Diaooont  (lim.)  2B 

Land  Credit  of  Ireland      .^  60 

Land  Secnrities         ...       ...  80 

London  Financial  A«odap 

tion(Lim.) 60 

London  KercantOe  Disooinnt  n 
Hanritins  Land.  Oedit  and 

Agonor  (Lim.)       ...       ...  SO 

National  Discount  Co.  ( Um.)  Si 

Oriental  Financial    60 

Ottoman  Financial  Aasoda* 

tion  (lim.) Sk 

Orerend,  CiumeyftCo.  (lia.)  60 
Bod^  Financlaire  d'KgnPle 

(lim.) ...  SO 

South  African  Kortffage  and 

TnYeatment  (lim.)...        ••  60 

WarranlFiaaiiOdCIiin.)    .».  iO 


6 
6 
10 

6 
6 

16 
10 

S 

s 

la 

IS 

11 


I 

10 


1 

IH 
Si 

* 


Digitized  by  LjOOQIC 


1325 


JOINT-STOCK  BANKS. 


I^iulon 

hh.,u\ 

laid. 

A 

A 

A 

ft     and    MaAtennan*8, 

mited        «. 

60 

26 

•^ 

on 

60 

10 

nice    Baiik    of  London 

id  liverpool,  limited  ... 
Ditto,  issaed  atSOpm. ... 

100 

26 

31i 

100 

25 

31 

lo  Austrian  Bank 

20 

6 

6f 

lo-E^-ptian  (Lim.) 

60 

I2i 

l\ 

lo- Italian  (Lim.) 

60 

16 

wt 

tic  Bankinsr  Corporation, 

w  Shares  iasncd  at  £la 

1,  on  which  £7.  10«.  is 

id    

20 

6 

19 

:  of  Anatralasia 

40 

40 

71i 

;  of  British  Colombia... 

20 

20 

23ixd 

rofEgj-pt 

of  London        

25 

25 

31 

100 

60 

141 

:  of  Otago  (Limited)    ... 

20 

9 

n 

of  Queensland,  Tiimited 

1(K) 

26 

214 

;h  &  Califomian  (Lim.) 

60 

7* 

4 

of  New  Zealand 

10 

10 

164 

of  Victoria,  Australia 

60 

26 

46 

M's  BHnfc  (Ldm.)    

60 

10 

IP 

lian  &,  Portngneae(Lim.) 

20 

10 

h  North  American     ... 

60 

60 

47 

ercd    Bank  of  India 

tralia  and  China 

20 

20 

24J 

ered  Mercantile  Bank 

adia,  London  &  China.. 

26 

26 

60 

Jaak         « 

100 

60 

112 

iai  Bank 

100 

25 

42 

iercial  Bank  of  Canada 

20 

20 

.«• 

icrcial  Bank  of  India 

the  East          

26 

26 

81 

li dated  Bank  (Lim.)  ... 

10 

4 

10 

tcntal      

100 

26 

tto.    New        

100 

16 

... 

md  London  Baok  (Lim.) 

60 

26 

34 

rf^ndon  (Urn.) 

60 

6 

6 

i:  Kxchange     

20 

6 

4 

h  Joint  Stock  (Lim.)... 

26 

10 

12 

h,   Soottiah  and  Aua- 

iixi  Chartered  Bank  ... 

20 

20 

2U 

h  and  Swedish  (Lim.) 

60 

20 

16 

an  Bank  (Limited)  ... 

60 

16 

12 

sLiikn,  China  and  Japan, 

tod          

100 

26 

21 

itto,  isaued  at  2  pm. 

100 

26 

19 

iitf).  New         

lUO 

25 

20 

al  (Limited) 

100 

20 

20 

ul  OttoBoan     

20 

10 

164 

•••        >.«       .(• 

2& 

26 

20 

New 

26 

6 

t 

ioit^ase  Bk.  of  India 

20 

4 

Londoll 

Sturc.    Paid     UUst 

priceg. 


London  Bank  of  Mexico  and 

Sonth  America  (Limite<l) 
London  Bank   of  Scotland 

(Lim.)  

London  and  Brazilian  Bank 

Ditto,  New- 
London,  Bnenos  Ayrea  and 

River  Plate,  Limited 
Ditto,   New,   issaed    at 

14  pm 

London  Chartered  of  Australia 
Jjondon  and  County  Bank  ... 
London  Joint  Stock  Bank  ... 
London  k  South  AfWcan  Bk. 
London  and  South  Western 

(Limited)      

Ditio,  ditto,    New 

London  and  Venezuela  (Lim. ) 
London  &  Westminster  Bank 
Merchant  Bank  (Limited)  ... 

Ditto,  New  

Mercantile  Exchange  (Lim.) 
Metropolitan  and  Provincial 

Bank,  Limited 

Ditto,  New  

Midland  Bank  (Limited)    ... 

National  Bank 

National  of  Liverpool  (Lim.) 
National  Provincial  Bank  of 

England       

Ditto,  2d  and  3d  issues ... 

New  South  Wales     

New  Zealand  Bank  Coxpora- 

tion  (Limited)       

North  Western  

Oriental  Bank 

Oriental   Commercial  Bank 

(Limited),  late  O.  C. 
Ditto,  ditto,  late  N.  F.... 
Ditto,  ditto,  late  F.  C... 
Provincial,  Banking  Corpo- 
ration   

Ditto,  ditto 

Provincial  Bank  of  Ireland... 

Ditto,  New  

Scinde,  Punjaub  and  Delhi 

(Limited)      

Ditto,  issued  at  2  pm.  ... 

South  Australian       

Stanrlard  of  British  Africa 

i Limited)  
)o.  New,  issued  at  0  pm. 
Union  Bank  of  Australia  ... 
Dnion  Bank  of  Ireland,  Lim. 
Union  Bank  of  London 


60       15       164 


100 

13 

100 
20 

40 
24 

% 

100 

40 

66 

26 

10 

134 

20 

30 

24 

60 

20 

77| 

60 

16 

60 

20 

20 

16 

100 

20 

19 

100 

20  • 

19 

50 

m 

104 

100 

20 

96 

100 

26 

% 

100 

10 

60 

10 

64 

100 

20 

16 

100 

20 

164 

100 

20 

18 

60 

90 

100 

10 

i's 

100 

42 

... 

20 

12 

20 

20 

44 

10 

1 

1 

20 

74 

11 

26 

26 

614 

20 

7 

64 

•*• 

4 

3 

... 

4 

... 

60 

74 

44 

60 

10 

7 

100 

26 

8^ 

10 

10 

20 

10 

6 

20 

6 

25 

26 

364 

100 

26 

16 

100 

10 

4 

26 

26 

64 

100 

82 

17 

60 

16 

631 

vol-.    XXV. 


Digitized 


..^^ogle 


Sank  of  ettfflanli  ^RBttiap  lUtnrhd. 


Aocoimt,  pnraoant  to  the  Act  7th  and  8th  of  Yiotozia,  cap.  32,  for  the  Weeks 

ISSUE  DBPABTMENT. 


ending  m  foOom.— 


1865. 
Sept.^. 

1865. 
October^. 

1966.       1       1866. 
October  13.  ^October  10. 

1 

Notes  isBTied        

£ 
27,778,795 

£ 
27,090.286 

26.606,340  I    SS.66W849 

Govemmont  debentures         

Other  secoritiee 

Gold  coin  and  bnllum 

SUverbuUion      .^       

11,015,100  1    11.015,100 
3.634,900        8.634.900 
13,128,726      12,410,285 

11,015.100 
3.634.9U0 
11,966,640 

U.015.10Q 
S.634JPJ0 

i2.aH,^ 

27,778,726 

27.090.286 

96,606^»40 

aMH,H> 

QANKmO  DBPABTMENT. 


1866. 
Sept.  29. 

1865.       1 
October  6.  ] 

1865. 
October  IS. 

1966. 
October  2D. 

Proprietors*  capital      

Rest 

Public    deposits   (including  BxehMiMr, 

I>«l)i,  and  Dividend  AecoonU) 

Other  Deposits     

Seven  day  and  other  bills      

£ 

14,653,000 
3.811.178 

7,830,010 

13,789.629 

530,883 

i?l  II- 

£ 
14.563.000 
3,134,060 

7,a8»7S7 

13.606.408 

649,674 

£ 
14.663,<XM> 
S,173,W 

ajK86ja 

14,013.114 
665.913 

40,014,699 

1    39,660.166  1    3S^71.8« 

(35,896,4^ 

Government    Seciirities    (Indoding 
Deadweight  Annuities)     

Notes         

Gold  and  Silver  coin     

10.384.209 

22,522.316 

6,276,(W0 

832,094 

10,384,909 

4,170,280 

4,362,125 

743,552 

24,086.476 

4,294,146 

7»},006 

Z1.4«?.>1 

4,33  i.** 
7S8.118 

40.014,609 

1    39,660,166 

88,971.869 

3S,866,tf8 

THE  EXCHANGES. 


Sept.  29. 

October  6l 

October  IS. 

Oeto6ffSl 

Amsterdam,  short        ...       

11    19 

11    19i 

11    19i 

12    e\ 

.   Ditto     3  months 

12     1 

12      2i 

12   ^ 

12     2 

Botterdsm,  ditto 

12     1 

12      2i 

12   n 

12     2 
»    71 

Antwerp,  ditto 

25    57 

26    65 

25    70 

Brussels,  ditto     ...        ...       

25    57  [ 

35    65 

25    70 

u  io| 

Hamburg,  ditto  ...       ...       

13    10 

13    10| 

13    lOf 

Paris,  short 

25    27i 

26    35 

25    35 

2ft    S 

Paris,  3  months 

25    60 

26    60 

25    6S| 

26   6S 

MarseUles,  ditto 

26    60 

26    60 

25    i» 

26   CI 

Frankfort,  ditto 

121 

1211 

1211 

n 

Vienna,  ditto 

11    17* 

11    25 

11    27i 
11    27* 

Trieste,  ditto 

11    20 

11    25 

U    30 

Petersburgh,  ditto        

Madrid,  ditto       

Oadia,  ditto 

30 

48 

s» 

471 

»"k» 

48 

|M 

Leghorn,  ditto     

25  m 

26    80 

26    SH 

Milan,  ditto 

25    60 

26    90 

25    80 

25   iO 

Genoa,  ditto 

25    60 

26    70 

26    60 

25   ^ 

Naples,  ditto 

Palermo,  ditto     

25    6t 

26    72i 

26    80 

25    62 

g^ 

26    80 

Messina         

26    69 

26    80 

26  « 

Lisboil,  8  months         

61* 
61f 

6U 
6l| 

6H 

»i 

Oporto,  ditto 

ill 

PBICBS  OF  BinJJON. 


Foreign  Gold  in  Ban  (Standard) 

Mexican  Dollars  

Bilvw  in  Bam  (Standard)       ... 


PerOs. 
£  s.  d. 
317  9 
0  0  0 
0    6    1 


PerOs. 
£  s.  d. 
317  9 
0  0  0 
0    0    9 


PerOs. 

£  s.d. 
3  17  9 
0  0  0 
0   0    0 


£ad. 
3  17  9 
6  4111 
9  6   1 


Digiti 


ized  by  Google 


iSanliersi'  mtthl^  Cimilation  »etuntsf^ 

Pursuant  to  tM  Act  7  it  ^  Victoria^  c.  32/  extracted  from  the  Londox  Gazbiti. 
PRIVATE    BANKS. 


ITAME  OF  BAJ7K. 


Ashford  Bank    

A/lestniry  (Hd  Bank 

Bdldock  and  Biggleswade  Bank  . 

Barnstaple  Bank 

Bedford  Bank r 

Bicester  and  Oxfordshire  Bank  . 

Boston  Bank^  Cla/pons  and  Co.. 

Boston  Bank— Gee  and  Co........ 

Bridgewater  Bank... 

Bristol  Bank 

Broseley  and  Bridgnorth  Bank    . 

Buckingham  Bank 

Burj  and  Suffolk  Bank |i 

.  Banbury  Bank    ...'. ,| 

;  Banburjr  Old  Bank    i 

I  Bedfordshire  Leighton  Buzzard  Bk.il 
r  Birmingham  Bk. — Lloyds  &  Co.  ...i' 

I  Brecon  Old  Bank  

)  Brighton  Union  Bank  , 

)  Burlington  and  DriflSeld  Bank 

[  Bury  St.  Edmand*s  Bank 

I  Cambridge  Bk. — Mortlock  &  Co. 
(  Cambridge  and  Cambridgeshire  Bk. 

i  Canterbuiy  Bank 

;  Carmarthen  Bank  .....' 

S  Chortsey  Bank 

y  Colchester  Bank 

I  Colchester  and  Essex  Bank 

}  Cornish  Bank-^Tweedy  &  Co. 

>  Coventry  Bank 

I  City  Bank,  Exeter 

I  Craven  Bank — A I  cocks  &  Co. 

\  Chepstow  Old  Bank 

\  Derby  Bank— Massrs.  Evans  &  Co. 
;  Derby  Bank^Smith  and  Co.  .. 

5  Derby  Otd  Bank 

7  Devizes  and  Wiltshire  Bank    .. 

I  Diss  Bank 

^  Don  caster  Bank  and  Retford  Bank 

3  Dariini;*.on  Bank   

1  Devonport  Bank    

z  Dorchester  Old  Bank    

3  East  Cornwall  Bk.— Robins  &  Co. 

4  East  Riding  Bank— Bower  &  Co. 

5  Essex  Bk.&  Bishop's  StortfordBk. 

6  Exeter  Bank  

7  (arnham  Bank  ••..•■•••••••••••.•••.•. 

8  Faversham  Bank  ••••••. 

9  Godalming  Bank  .'. 

0  Guildford  Bank 

1  Grantham  Bank — Hardy  «nd  Co., 

2  HnU&  KinDTston-apon-IluU  Bank  I 

3  Iluntlncrdon  Town  &  County  Bank 

4  Harwich  Bank    • 

«  Hertfordshire,  Hitchin  Bank    

o  Ipswich  Bank 


AVERAGE  AMOUNT. 


Aug.  28.  I   Sept.  a.      Sept.  9.      Sept.  18. 


11,849 
48,461 

i7,i8i 
34,218 
27,090 

75,069 
15,161 
10,028 
48,277 
a6.7»7 
19.557 
82,362 
43,457 
55.'53 
36,829 
38,816 
68,271 
33,794 
12,745 
3,»oi 

25,744 
49,9 » 6 
33,671, 
23,5971 

3,4361 
25,082' 
48,704 
49,869 
12,045 
21,527 
77.«54 

9,387 
13,332 
4i»304 
27,237, 
20.674 
10,657 
77,400 
86,218 
10,664 
48,807 
112,28c 
53,392 
69.637 
37,894 
14,202 

6,681 

6,322 
14,524 
30.372 
19,979 
56,591 

5,778 
38,764 
21,901 


X 

".593 
22,761 

19.874 
3.216 
28, 750 
14.039 
64,640 
10,172 
6,478 
19,789 
15,74* 
20,784 
49,017 
24,838 
18,633 
36,203 

1,947 
46,856 
16,655 

11.113 

2,785 
10,892 

38,359 
28,093 
13.805 

1,408 
16, 7»o 
28,988 
23,061 

4»6i5 
H»  795 
69,610 

7,585 

8,149 

a7,994 

25,844 

7,277 

10,550 

64,711 

77,891 

6,163 

38,41a 

74,221 

5>.5«6 

36,125 

19,995 

5.735 

4>938 

4.830 

10,719 
ai,ooi 
16,199 
31.836 
4.825 
31,283 
16,306 


£ 
ii,8<;o 

=3.894 

20,257 

3,196 

30.052 

14,407 
64.581 
10,907 
6.783 
19,64s 
15,225 
19,979 
47,^48 
24,649 
18,762 

35,S'^5 
1,920 

47,31a 
i6,5?3 
11,461 
3,004 
10.824 
38,606 
28,236 

13.411 
2,282 

17,156 
29,233 
24,072 

4.546 
14,940 
70.725 

7,935 

7.644 
28,53* 
27,203 

7.082 
10,187 
63.546 
79,987 

6.633 

38,385 

75.241 

52.275 

37,089 

19.523 

5,660 

4.976 

4.822 

10,730 

19.260 

16,862 

32,891 

4.553 

30,932 

15.715 


£ 
12.445 
24.3J0 
20,025 
3,200 
30, 540 
14,581 

64, 104 

12,674 

6,818 

19.607 

15.019 
21.006 

48.814 
25,093 
19.5^9 
34,b86 

1.885 
47.025 
17,697 
11,446 

3'»o3 
10,263 
59.464 
28,193 
13.OJ6 

2,480 
16,496 
28,923 
24,485 

4.293 
15.537 
73.639 

7,655 

7.859 
29.891 
28,465 

6,770 

9,858 
66.746 

8i,45« 

6,706 

38,650 

75»934 

53.072 

37,908 

ao,ii8 

5.685 

5.232 

4.676 

10.444 
20,584 

16,498 
32,709 
4.663 
30,450 
16,630 


£ 
",330 
24.404 
19.74> 

3.406 
30.417 
14.884 
66,889 
15.519 

6.748 
20.255 
17.384 
20,222 
49,174 
25,726 

19.49" 
34,496 

1,858 
50,.*526 
17,664 
11,384 

3,009 

9.955 
41.223 
27,269 
13.673 

2,279 
15.920 
28,381 
22,863 

4,140 
16,480 
73.740 

7,577 

8,055 
29.488 
26,574 

6,6i2 

io,co3 
65,861 
83.609 
7,cii 
39.095 
75.55" 
5*. 827 
38,486 

19.65" 

5,796 

4.955 

4.363 

9.984 

20,67* 

17,285 

34,46« 

4.763 

30,973 

17,557 


Digiti 


izedbyLnOOgle 


WEEKLY    RETURNS    OP    uaXKS    OF    1SSU£. 


ITAME  OF  BANK.. 


57  Ipswich  &  Needhani  Market  Bank 

58  Kentish  Bank— Mercer  &  Co.  ... 

59  Kington  and  Radnorshire  Bank... 

60  Knarcsborough  Old  Bank  

61  Kendal  Bank    

62  Longtcn  Staffordshire  Bank 

63  Leeds  Bank 

64  Leeds  Union  Bank 

65  Leicester  Bank 

66  Lewes  Old  Bank 

67  Lincoln  Bank  

68  Llandovery  Bank  &LlandiloBank 

69  Longhborough  Bank   

70  Lymington  Bank 

71  Lynn  Regis  and  LincolnshireBank 
71  Lynn  Regis  and  Norfolk  Bank  ... 

73  Macclcslield  Bank   

74  Manningtrce  Bank  

75  Merionethshire  Bank  

76  Miners'  Bank    

77  Monmouthshire  Agricultural  and 

Commercial  Bank 

78  Monmouth  Old  Bank 

7(;  Newark  Bank  

80  Newark  and  Slcaford  Bank   

Si  Newbury  Bank 

82  Newmarket  Bank 

83  Norwich  Crown  Bank  and  Norfolk 

and  Suffolk  Bank 

84  Norwich  and  Norfolk  Bank   

'^K  Noftinsrham  &NottinRham8h.Bk. 

86  Naval  Bank,  Plymouth  

8  7  New  Sarum  Bk. — Pinckneys.Bros. 

S8  Nottingham  Bank   

^9  Oswestry  Bank     

yo  Oxford  Old  Bank 

9>   Old  Bank,  Tonbridge 

y*  Oxfordshire  Witney  Bank 

')3  Pease's  Old  Bank,  Uull  ... 

'H  Penzance  Bank    

95  Pembrokeshire  Bank  

96  Heading  B.mk — Simonds  &Co.... 
V7  Reading  l)k. — Stephens,  Blandy& Co. 

98  Richmond  Bank,  Yorkshire    

99  Rochdale  Bank    

100  RoystonBank  

»oi  Rugby  Bank 

«oa  Rye  Bank 

»03  Saffron  Waldcn&NorthEsscxBk. 

»04  Salop  Bank  

«05  Scarborough  Old  Bank   

'06  Shrewsbury  Old  Bank 

'07  Sittinirbimrne  and  Milton  Bank  . 
«o8  Southampton  Town  &  County  Bk. 

J09  Southwell  Bank    

« >o  Southampton  and  Hampshire  Bk. 

«»»  StalFordOld  Bank  

"a  Sfteniford  and  Rutland  Bank  ...  . 

■ '  3  Shrewsbury  and  Welsh  Pool  Bank 

lit  i*'*"*on  Bank 

*»5  Tavistock  Bank  


AnthOT- 
ized 
Ij»ue. 


AVERAGE  AMOUKT. 


Aog.as. 


£ 
80,699 

>9.895 
26,050 
11,825 
44,66; 

53.357 
37,459 
3a,3»» 
44,836 

•00,342 

3*,945 

7,359 

5,038 

42,817 

i3,9»7 

15,760 

7,692 

10,906 

i8,68S 

i9.335 
16,385 
28,788 
5»,^>5 
36,787 
a3,09ft 

49,^71 

»05,5i9 

10,866 

»7»3H 
»5/59 
31,047 
18,471 
34,39* 
13,183 
11,852 
48.807 
1 1.405 
12,910 

37,5»9 
43.»7i 

6,889 

5,590 
»6.393 
17,250 
29.864 
47.64.6 
22,338 
24,813 
43,»9« 

4,789 
18,589! 
»4,744, 

6,77*-^  I 
I4,i6f 
31,8581 
*5,33^! 
a9»799  I 
I3,4»' 


86pt.9.   <  6€pCUw 


45.»74 
7t,5«a 

7,5»3 
21,165 

6,70a 
22,780 
io,7»5 
3».*37 

8,360 

8,2i6 

4*. 494 

8,620 
8.885 

^5  Mi 
25*640 
5.a72 
«»533 
8,947 
8,665 

9.905 
>9t*7o 

9»*94 
ao,474 
28,984 
3,400 
8,699 
8,116 

1,993 
10,606 
16,798 
18,948 
20,551 

9.871 


45.773 

7»»727 

6,834 

20,646 

^.454 

22,223 

10,680 

3»»56a 

7,889 

8,456 

43, ''9? 

8,938 

8,833 

26,858 

24,870 

5»35i 
1,372 
9,006 
8,364 
9.938 
19.477 

9.635 

21,124 

28,689 

3.5*6  i 

8,803 

8.246 

2,064 

10,288 

17,326 

«9,»35 

»o,477  1 

10,778 


28,021 

4.639 
19,006 
41,852 
i3.075 
14.746 

45,200 
73.018 

20,430 

6,336 

22.505 

11,261 

3»,3*9 

7,943 

8,453 

44,88c 

9,302 

9.41? 
26,130 

25.463 
5»542 
1.384 
y.o77 
8.532 
9.990 

19*785 
9,908 

21 • 267 
28,432 

3.525 
9.2:0 

8,889 

2,C«7 

11.C27 

16,623 

19.927 
20,951 

11,1^5 


£ 
52,006 

11,2*5 

21,543 

18,142 

40.5*^5 

5*048 

55.»85 

j7,c6o 

2^,512 

82,139 

a«,^53 

f.9'3 

2,4?* 

30,  :h 

I2,44y 
12.923 

6,r?5 
17,9*5 

28,1-0 

4.  "49 
20»555 
45- *^5 

i2,:v3 

14.«H4 

45.8-9 
71.714 

20,597 
6,691 

23. 3H 
11,^44 
30,116 

7-756 

8.9v8 

45.9«?4 

8,83: 

9,8i9 

,  26,315 

I  24,923 

I     5.537 

1,2C9 

8,«C7 

fc.831 
10.217 

20.23* 

9,4-5 

ll,OCft 

28.1^6 

3,3H 
9.«'4 
8.f.> 

|J,>*9 

i7.r> 

15   «    ' 


Digitized  by  LnOOQ IC 


WEE&LT   RETURNS   OF   BA.NKS   OF    1S8UB. 


KAKE  OF  BANK. 


16  Thornbury  Bank 

17  Tiverton  anil  Devonshire  Bank ., 

18  Thrapstone  and  Kctioring  Bank 

19  Tring  Bank  and  Chesham  Bank.. 

20  Towcester  Old  Bank 

21  Uoion  Bank,  Cornwall   , 


22  Uxbridge  Old  Bank 

23  Wallingford  Bank    , 

24  Warwick  and  Warwickshire  Bank 

25  Wellington  Bank,  Somerset 

26  West  Riding  Bank 

27  Whitby  Old  Bank    

28  Winchester,  Alresford  & AltonBk. 

29  Weymouth  Old  Bank 

30  Wirksworth  and  Derbyshire  Bk. 

31  Wisbeach  and  Lincolnshire  Bank 

132  Wivelisconibe  Bank.. 

133  Worcester  Old  Bank 

134  Wolverham.Bk.— R.  &  W. Fryer 

135  Yarmouth  and  Suffolk  Bank 

1 3<^  Yarmonth,  Norfolk,  &  Suffolk  Bk, 
137  York  Bank  


Author- 
ized 
Issue. 

£ 

10,026 

»«,55V 
>3»53J 
10,801 
17,003 
25,136 
17,064 

30,504 
6,528 

46,158 
14,258 
25,892 
:  6,46 1 
37,6oz 

59,713 
7,602 

87,448 
11,867 
53,06c 
»3,i*9 
46,387 


AVERAGE  AMOUNT. 


Aug.  26.      Bept.  a.     Sept.  9.     Sept.  10. 


£ 

7,787 

9.333 

1 1,606 

13,067 

5»89i 

U,«99 

8.503 

5,400 

17,447 
3,810 
38,079 
12.904 
11,096 
>5»555 
33.9^5 
33.697 
3.875 
43.461 
10,272 

34.775 
7,624 

36,554 


£ 

7.756 

9,»3i 

11,449 

13,219 
6,150 

>4,759 
9.0C5 

5.443 
17,710 

3,^4* 
37,936 

»*,9'5 
10,634 

15.450 
33.479 
33.618 

3.749 
43,666 

9.373 
35.073 

8,275 
36,*49 


£ 

7,831 

9,ȣ2 

»o,995 

»3,5»o 

6,199 

«5.747 

8,635 

5.530 

18,049 

3.559 
38,849 
13.720 
10,372 
15,134 
34.424 
35.075 

3,842 
46,187 

8,924 
35.535 

8,705 
36,948 


JOINT  STOCK  BANKS. 


1  Bank  of  Westmorland  , 

2  Barnslcy  Banking  Company    

3  Bradford  Banking  Company    

4  Bilston  District  Banking  Companj 

5  Bank  of  Whitehaven 

6  Bradford  Commercial  Banking  Co. 

7  Barton ,Uttoxeter,and  Staffordshire 

Union  Banking  Co.    ..... 

8  Chesterfield  &  N.Derbysh.  Bk.  Co. 

9  Cumberland  Union  Banking  Co 

I  o  Coventry  and  Warwickshire  Bk.  Co. 

I I  Coventry  Union  Banking  Company* 
I  z  County  of  Gloucester  Banking  Co. 

1 3  Carlisle  &  Cumberland  BankingCo. 

14  Carlisle  City  and  District  Bank  ... 

15  Dudley  &  West  Bromwich  Bk.  Co. 

16  Derby  and  Derbyshire  Banking  Co. 

17  Darlington  Dist.JointStockBk. Co, 
1^  Gloucestershire  Banking  Company 

19  Halifax  Joint  Stock  Bank 

20  Huddersficld  Banking  Company 

21  Hull  Banking  Compnny    

22  Halifax  Commercial  Banking  Co... 

23  Halifax  &  Hnddersficid  Union  Bk. 

24  Helston  Banking  Company  .. 

25  Knaresborough  and  Claro  Bk.  Co. 

26  Lancaster  Banking  Company  

27  Leicestershire  Banking  Company... 

28  Lincoln  and  Lindsey  Banking  Co.. 

29  Leamington  Priors  and  Warwick- 

shire Banking  Co. 

30  Ludlow  and  Tenbury  Bank 

31  Moore  &  Robinson's  Notts.  Bank... 

32  Kotlinghara  and  Notts.  BankingCo. 
3  3  National  Provincial  Bk.  of  England 
'A  North  Wilts  Banking  Company 


I2,22C 

9.974 

10,048 

10,451 

9.563 

9.318 

9.457 

9.565 

49,29^ 

50,806 

50.569 

48,210 

9,41^ 

9,288 

9.305 

9,144 

32,681 

17,182 

27,773 

17,019 

20,084 

ao,38» 

19,713 

19,787 

60,701 

40,118 

38,049 

39,948 

10,421 

8,824 

8,699 

8,431 

35,39.' 

34.3C2 

32,836 

32,980 

2«.734 

14.833 

13,983 

'5,345 

16,251 

10,447 

10,389 

10,038 

«44,35- 

97,602 

97,120 

100,  oi  6 

25,61c 

24,80c 

15,030 

24,337 

19,972 

19.652 

i9>947 

10,159 

37,69^ 

28,291 

a?, 953 

28,088 

20,09: 

17, 5^^ 

18,601 

18,913 

a6,i34 

24.372 

23,965 

25,040 

•55.92c 

137.823 

141,305 

141.703 

18,534 

17,168 

17,495 

'6,975 

37.354 

32.72c 

31,870 

31,633 

29.333 

28,3cc 

29,245 

29,155 

13.733 

13.353 

13,543 

12,970 

44«'37 

41.244 

39.425 

38,568 

1,503 

1,474 

1,516 

1,476 

28,059 

24, 37^' 

14,221 

24,890 

64,3*' 

52.854 

53,177 

54,030 

86,06c 

49.07S/ 

48,800 

48,139 

51,62c 

47,82c 

48,05c 

49.630 

13,875 

9.315 

9,i»5 

10,018 

10.21  f 

8,893 

8,582 

8,888 

35.813 

18,313 

19,460 

17,431 

i9.4'7 

25.23C> 

24,810 

24.7;3 

44».37' 

420,672 

423,00; 

426^688 

63.939 

41,955 

42,726 

41,963 

£ 

8.155 
9,265 

11,364 
13,510 

6,515 

15,201 

8,005 

5,165 
18,823 

3,319 

39.915 
13,726 

9,994 
15.375 
35.153 
36,468 

4, '43 

48,039 

9,803 
35,931 

8,431 
38,291 


10,535 
9, .563 

47,468 

9,063 

16,141 

10,193 

40.817 
8,589 
34,955 
15,016 
10,590 
100,540 

24,451 
10,091 

28,437 
20, 628 
14,997 
141,835 
17,106 
31,185 
27,650 
12,713 
40,531 
1,515 
15,755 
54,609 

49,497 
49,810 

9,217 

9.531 

28,143 

24,455 

440,791 

43,029 


Digitized  by  LnOOQlC 


WUKLT  BBTVRNa  09  BANU  OF    IflSink 


NAKB  OF  BANK. 


35  Northamptonshire  Union  Bank  ... 

36  KorthamptonBhire  Banking  Co.  ... 

37  North  and  South  Walef  Bank 

38  Fare's  Leicestershire  Banking  Co... 

39  Saddleworth  Banking  Company  ... 

40  Sheffield  Banking  Company 

41  Stamford,  Spalding  &BostonBk.Co, 

42  Stackey*s  Banking  Company  

43  Shropshire  Banking  Company 

44  Stonrbridge  and  Kidderminster  Bk. 

45  Sheffield  and  Hallamshire  Bank  ... 

46  Sheffield  &RotherhamJt.StockBk. 

47  Swaledale  and  Wensleydale  Bank.. 

48  Wolverhampton  &  Staffordsh.  Bk.. 

49  Wakefield  and  Bamsleir  Union  Bk. 

50  Whitehaven  Joint  Stock  Bank    ... 

51  Warwick  and  Leamington  Bk.  Co. 
59  West  of  £ng.&  S.Wales  DistrictBk. 

53  Wilts  &  Dorset  Banking  Coinpany 

54  West  Riding  Union  Banking  Co.... 

55  Whltchnrch  and  EUesmere  Bk.  Co. 

56  Worcester  City  and  County  Bk.  Co. 

57  York  Union  Banking  Company  ... 

58  York  City  and  County  Banking  Co. 

59  Yorkshire  Banking  Company 


Author- 
ized 
Issue. 


£ 
84,356 

63.95  > 
59.300 
8,122 
35.843 
55,7a  1 
356,976 

47,95 » 
56,830 

a3,5H 
5a.496 
54,37* 
35,378 
14,604 
31,916 
37,1*4 
83.535 
76,162 

34,0*9 
7.475 
6,848 

71,240 

94,695 
122,532 


AYERAOB  AXOnXT. 


Aug.  88.      BeptL      8efiL9,     ^epLU, 


£ 

6i,473 
«9»440 

57, 757 
48,953 
334 
33.96c 
4i,*8c 

*94,5*4 
38,285 
48,261 
21,646 
50,583 
43.539 
22,260 
141I88 
23,881 
24,J04 
85,088 
69,642 
3*,034 
4,973 

5,438 
70, 199 

84,287 
116^,662 


£ 

62,060 
>9.73* 
58.738 
48,7V 
350 
35,535 
4>,93« 
294, 8S0 

36,875 
47.850 
*3.«34 
5*»  "9 
4*,495 
22,426 
14,015 
*4,3'4 
*4,35* 
79.821 
7*,*97 
32,520 

5**43 

70,463 

84,462 

n5,9«o 


£  £ 

61,719   62,j64 


19, 168 
58,708 
47, 7*0 
330 
36, 161 


305,999 


49,49* 


18,673 
64,*66 
48,307 
350 
36,695 


44,505   47,4*1 


306,605 


36,348!  38,6»i 


49,70* 


*4,65o,  24,34i 
52,892,  50,35; 
4*,467|  44, 7*** 
*»,944i  *3,45* 
14,690;   14,3-3 

04.490  *4.«9o 
*5.45*  *5,»4« 
8*, 347  84,4c8 
74, 732"  78,902 
3*, 658   34»5»o 

5.345     5.*65 

6,208     6.100 

70.2625  7,0352 

86,565]  88,646 

119,316114,595 


ivi&f)  HViti  ^totO)  Ctrniktton  lUtumsL 

Avenge  drathtioH,  and  Coin  held  by  th»  laiiH  aiu/ Scotch  BAMK^edmrimgtkefim 
meekt  ending  Saturday,  the  l^th  dag  qf  September,  1665. 

IRISH   BANKS. 


NAMB  OF  BANK. 


Bank  of  Ireland 

FroTincial  Bank  of  Ireland 

Belfast  Bank   

Northern  Bank  

IHster  Bank 

The  National  Bank 

Totals  (Irish  Banks) 


AotboHs«4 
CirmUcioa. 


£ 

3,738.4*8 
927,667 
281,611 
243 ,44c 
311,079 
852.269 


6,354,4941 


Av«Mf«  Cire«l«iioB  iuiBf  Pm 


vpwaida.  Ua4if  itt. 


£ 
,506,800 
404,109 
133.567 
105,808 
«79>938 
631,213 

», 961, 435 


£ 

,054.275 
498,011 
300,646 
254,468 
288,730 
581,028 


£ 

1,561,075 
902,120 

434, *« 3 

360,276 

468,668 

1,212,241 


*,977,»58  '5,9ia,593 


X 
533,016 
389.638 
218,461 

«9«,33* 
196,8x5 
549*350 


SCOTCH    BANKS. 


Bank  of  Scotland  < 

Bbyal  Bank  of  Scotland 
British  Linen  Company 
Commercial  Bk.  of  Scotland 
National  Bank  of  Scotland.. 
Union  Bank  of  Scotland 
Aherdcen  Town  and  Co.Bk. 
North  of  Scotland  Bk.  Co. 
Clydesdale  Banking  Co.  . 
City  of  Glasgow  Bank  .... 
Caledonian  Bunking  Co.  . 
Central  Bank  of  Scotland. 
Totals  CScotch  Banks). 


300,485 

^53,556 

3M,508 

486,064 

*i6,45> 

187,502 
167,843 

336,147 

5*3.649 

438,024 

312,716 

480.560 

374,88c 

184,973 

375,519 

560,49* 

297,024 

159,345 

311,182 

470, 5*7 

454,346 

180,876 

391,370 

57*,*46 

70,133 

58,566 

84,213 

14*,  779 

«54.3«9 

90,682 

111,277 

*o 1,959 

*74,3a> 

134,830 

»39,»85 

374, l»5 

7*,9*> 

130,698 

a3',*53 

361,95* 

53,434 

*4,56* 

48,7*3 

73.*85 

4*, 933 

21.43* 

36,501 

57.933 

».749,*7« 

1,504.865 

2,800,694 

4.305,561 

2,078,605 


279.86* 

363,700 
a75,*6< 

281, 7^^ 

236,4bi 

*4i,54» 

79, oil 

•   74,781 

14*.^ 

337,&M 

36,240 

27.9JJ 


2,376.797 


Digitized  byV^OOQlC 


6IRCULATI0N  RETURNS. 


SUMMARY  OP  WEEKLY  RETURNS  OF  BANKS  OP  ISSUE. 


136  Priyate  Banks 

59  Joint-Stock  Banks  .., 


Fixed  lasnM. 

£4,178.285 

3,226,i57 


J95 


Totals.. 


7,404i54» 


August  as.  I    Sept.  3. 
£1,826,563  £2,835,090 


2,74-i,a07 


a,745.a97 


5.5^7,770      5.580,387 


Sept.  9. 

£2,872,861 

2,780,689 


Sept  10. 

^i.9«3.»45 

4,831.949 


5,^53.550 


5,745.094 


Average  Weekly  Circulation  of  these  Banks  for 
the  month  ending  September  lOUi  s— 

I'rivate  Banks      £2,861,916 

Joint-Stock  Banks 2,77V8S 

Arerage  Weekly  Circulation  of  Private 
and  Joint-Stock  Banks  ending  as 

abore      £6,«96,700 

On  a  comparison  of  the  above  with  the  RetdmS 

for  the  month  ending  August  19th  last,  it  shows:— 

An  incTMu  in  the  notes  of  Priyate 
Banks,  of £18,784 

An  inerecue  in  the  notes  of  Joint-StOOk 
Banks,  Of. 26,68S 


Total  tacrsoM  on  the  month . 


£45,886 


And  as  compared  with  the  month  ending 
September  17th,  1864,  it  shows :— 
Adeertaw  in  the  notes  of  Private 

Banks,  of £109,810 

XdwrtoM  in  the  notes  of  Joint-Stock 

Banks,  of 14,101 

Total  d4erM$€t  as  oompsred  with  the 

same  period  of  last  year       £123,911 

The  following  is  the  comparative  state  of  the 

circulation  as  regards  the  fixed  issues  :— 

The  Private   Banks  are  btlow  their 
fixed  issues        ...       ., ^£1,316,970 

The  Joint-Stock  Banks  are  helow  their 
fixed  issues ...      451,472 

Total  BXLOW  their  fixed  issues       ...  £1,767,648 


SUMMARY  07  IRISH  &  SCOTCH  RETURNS  TO  SEPTEMBER  16,  1865. 


The  Retoma  of  Circulation  of  the  Irish  and 
Scotch  Banics  ft>r  the  four  weeks  ending  Septem- 
ber 16th  wWbn  added  together,  give  the  following 
as  the  average  weekly  cnnsulation  of  these  Banks 
during  the  past  month,  vis. ; 
Average  Circulation  ofthe  Irish  Banks  £5,938.686 
AverageCircolationofthe  Scotch  Banks  4^306,661 

TotalAverageCircnIationofthese  banks 
for  the  past  month    £10,244,164 

On  comparing  these  amounts  with  the  Returns 
for  the  month  andmgl9thAagust  last, they  show- 
Increase  in  she  Circolationof  Irish  Bankd£274,6e0 
DecreaseintheClrcnlationof  BcotchBanks  44,108 

Total  Inofoaso  oh  the  month  £230,472 

And  as  compared  with  the  month  ending 
Bcr>tember  17th,  1864,  they  show— 
Increase  in  theCircnlationoflrishBanks  £810,520 
Increase  in  cheCircniationof  Scotch  Banksl31,205 


Total  Increase  on  thd  year . 


.  £741,726 


The  fixed  issues  of  the  Irish  and  Scotch  Banks 
at  the  present  time  are  given  in  the  J^aidbiji^ 
Aimanae,  as  follows  :— 

6  Bank8inIr6land,iillowedtoissne...  £6,354,404 
13  BanksinScotlazid,  allowed  toissoe     2,749,271 

18  Banks inaU,aUowed  to  issue  £9,103,766 


appears, 
)  of  the  ci 


comparative  state  of  the  circulation : — 

Irish  Banks  are  below  their  fixed  issue     £415,901 

BcotchBanks  are  above  their  fixed  issue  1,556,290 


Total  above  the  fixed  issue £1,140,388 

The  amounts  of  Gold  and  Silver  held  at  the 
head  offices  of  the  several  banks,  during  the  past 
month,  have  been  as  follows : — 
Gold  and  Silverheld  by  the  Irish  Banks  £2,078,603 
GoldandSilverheldbytheSootohBanks  2,376,797 

Total  of  Gold  and  Silver  Coin £4,465,400 

Being  an  increase  of  £38,419  on  the  part  of  the 
Irish  Banks,  and  a  decrease  of  £17,859  on  the 
part  of  the  Scotch  Banks,  on  the  several  amounts 
neld  by  them  during  the  preceding  month. 


CIRCULATION  OP  THE  UNITED  KINGDOM  TO  SEPTEMBER  16, 1865. 

The  following  is  the  state  of  the  Note  Circulation  of  the  United  Kingdom  for  the  month  ending 
the  16th  September,  1865  :— 
Circolatfon  of  Notes  for  the  Month  ending  16th  September,  as  compared  with  the  previous  month  i^ 


Bank  of  England  (month  ending  Sept.  13) 

Private  Banks 

Joint-Stock  Banks 


Total  in  England... 

Scotland 

Ireland   


August  19. 
£22,178,744 
2,843,131 
2,748,203 


27,770.078 
^340.669 
6,664.013 


Sept.  16. 

£21,617,746 
2,861,916 
2,774,786 


27,254,446 
4,305.661 
6,938,693 


Increase. 

£18,784 
26,562 


46,866 
274,680 


319,946 


£560^999 


660,999 
44,108 


606,107 


United  mngdom £37,783,760       £37,496,699 

The  comparison  of  the  month  endingSeptember  17th,  1864,  with  the  month  ending  September  16tbi 
1S65,  shows  an  increoH  In  the  Bank  of  Kngland  circulation  of  £999,063,  tideertatein  Private  Banks  cf 
iei09,810,  and  a  decrease  in  Joint-Stcck  Banks  of  £14,101 ;  being  a  total  inermue  in  England  of  £875,161 ; 
while  in  Scotland  there  is  an  inoreaee  of  £131,206;  and  In  Ireland  an  inereaae  of  £610,620^  Thus 
showing  that  the  month  ending  16th  September,  as  compared  with  the  same  period  last  year,  presents 
an  inereaae  of  £875,152  in  England,  and  an  increase  of  £1,616,877  in  the  UnUad  Kingdom, 

The  fetum  of  Bullion  in  the  Bank  of  England,  for  the  month  ending  September  13th,  gives  an 
aggregate  amount  in  both  departments  of  £14,297,140.  On  a  oompavison  of  this  with  the  Return  for 
the  month  ending  August  16th,  there  appears  to  be  a  decreoM  of  XH163 ;  and  an  inereaee  of  £1,222,966 
aa  compared  with  the  same  pviod  last  yesr. 

The  stock  of  specie  held  by  the  Beoiks  in  Scotland  and  Ireland  during  the  month  ending  16th 
B^ptembM  was  £4,456,400 ;  being  an  inoreaee  of  £90,660  as  compared  with  the  Return  ofthe  prsyiocui 
month,  SBd  an  inereaee  of  £326,797  as  compared  with  the  corresponding  period  last  yesr 


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THE  BANKERS'  MAGAZINE, 

AHD 

|0ttntal  0f  %  P0mg  W^ixxktt 


DSCICMBEB,  1805. 


BANK    OHEOKS  ON  BANK   CLERKS> 

It  is  said  that  when  companies  are  prosperous,  there  is  little 
chance  of  getting  shareholders  to  look  after  their  own  affairs, 
and  that  words  of  warning  are  only  listened  to  after  the  occur- 
rence of  calamities  which  timely  attention  to  them  might  have 
averted.  If  this  were  an  invariable  rule,  we  should  confess  to 
a  conviction  that  the  writing  of  the  present  article  would  prove 
a  bootless  task.  Our  banks  are  for  the  most  part  prosperous 
and  healthy,  their  deposits  large,  the  rate  of  discount  high, 
credit  in  the  main  sound,  and  business  active,  without  any  very 
dangerous  amount  of  speculation.  At  such  a  time,  it  may  seem 
a  work  of  supererogation  to  dwell  seriously  upon  a  matter  of 
cononon-place  and  every-day  detail.  Yet  one  or  two  lamentable 
instances  of  defalcation  induce  us  to  urge  upon  the  banking 
world  the  desirability,  or  rather  the  imperative  necessity,  of 
some  more  frequent  and  efficacious  check  upon  the  accounts  of 
banking  employ^  than  is  at  present  common.  We  are  not  now 
alluding  to  cases  of  the  Pullinger  and  Durden  class,  in  which 
one  trusted  servant  has  robbed  his  employers  to  the  sum  of  fifty, 
or  five  times  fifty,  thousand  pounds.  Exceptional  instances  like 
these,  especially  when  the  delinquent  is  a  highly-placed  official, 
may  be  accounted  for  by  saying  that  directors  and  shareholders 
must  trust  some  one,  and  that  if  perverted  ingenuity  hits  upon  a 
new  expedient  for  evading  scrutiny,  or  escapmg  detection,  there 
is  nothing  for  shareholders  to  do  but  to  meJce  up  the  deficiency 
and  bear  their  losses  with  what  philosophy  they  may. 

But  our  present  concern  is  with  oflenders  of  a  different  class. 
We  are  not  now  dealing  with  the  generals-in-chief,  or  the  field 

VOL.    XXV.  101 


Digiti 


zedbyLjOOgle 


1334  Hank  Checks  on  Bank  Clerks. 

officers  of  onr  commercial  army,  bat  with  its  rank  and  file. 
We  are  not  about  to  suggest  a  new  check,  but  the  more  constant 
application  of  an  old  one ;  not  to  indicate  a  place  which  has  hitherto 
been  left  unguarded,  but  to  urge  that  a  watch,  which  every  one 
admits  to  be  necessary,  should  be  rendered  constant  and  effective. 
As  to  the  mass  of  our  bank  clerks,  it  will  be  uniTersally  ad- 
mitted that  an  efficient  system  of  checks  is  a  matter,  not  only  of 
business  policy,  but  of  moral  duty.  It  cannot  be  concealed  tbat 
the  development  of  a  highly  organized  system  of  banking,  as  of 
other  business,  has  tended  to  augment  the  value  and  to  diounish 
the  proportion  of  prizes  within  the  reach  of  salaried  servants. 
Of  the  multitude  of  young  men  who  enter  as  bank  clerks,  only 
a  very  few  will  ever  rise  above  "  the  daily  drudgery  of  the 
desk's  dull  wood."  Their  lives  will  be  spent  in  the  performance 
of  routine  duties,  but  duties  nevertheless,  requiring  incessant 
^-igilance  of  eve,  rapidity  of  hand,  and  activity  of  brain ;  but 
whose  faithful  dischage  will  never  lift  them  above  a  position  at 
the  best  of  modest  competence,  at  the  worst  of  decent  poverty 
and  struggling  gentility.  Cases  sometimes  occur  which  show 
that  in  many  tiiriving  establishments,  the  condition  of  the 
clerks  is  infinitely  below  .this.  The  wise  liberality  which  has 
led  many  employers  to  give  bonuses  on  salaries,  and  occasion^u 
gatuities  in  periods  of  exceptional  success,  has  not  been  uni- 
versally imitated,  and  in  consequence  we  hear  every  now  and 
then  of  men  whom  a  lifetime  of  exemplarily  dischai^ed  service 
has  failed  to  raise  above  the  daily  and  painful  pressure  of 
actual  poverty.  We  do  not  say  that  such  things  are  common, 
though  we  do  say  that  they  exist,  but  it  is  not  necessary  to 
cite  extreme  cases  in  order  to  point  the  moral  which  we 
now  desire  to  impress  upon  our  readers.  By  every  considera- 
tion of  regard  for  their  own  interest,  by  eveiy  promptiag  of 
duty  towards  their  employes,  we  hold  it  to  be  the  dutv  of 
bank  proprietors  and  managers  to  keep  their  clerks  well  in 
check.  And  the  system  of  check,  to  be  effective,  should  be  not 
only  complete,  but  constant.  If  not  actually,  those  subject  to 
it  should  feel  that  it  is,  potentially,  applied  every  day  of  their 
lives  under  a  thoroughly  efficient  supervision ;  certain  lament- 
able instances  of  which  we  have  recently  heard,  ought  to  be 
impossible.  There  is  surely  something  wrong  in  a  system  whidi 
leaves  uncounted  money  in  the  hands  of  an  ordinary  cashier, 
three  or  six  months,  without  any  control  by  superior  authoritv. 
We  can  but  think  that  this  involves  a  needless  and  undesirable 
expoiiure  of  the  servant  to  temptation ;  of  the  master,  whetht  r 
individual  or  company,  to  serious  loss.  And  this  latter  con- 
sideration becomes  the  more  important  when  we  remember  the 


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Bank  Checki  on  Bank  Clerks.  1835 

moltitudiiioufl  opportunities  which  this  remissness  in  checking 
accounts  aflfords  to  dishonest  servants ;  the  constant  tem})tations 
to  wrong  doing,  which  it  places  in  the  way  of  honest  ones.  A 
clerk  or  chashier  overhears  a  conversation  about  some  operation 
on  'Change  which  is  sure  to  send  up  some  particular  stock.  He 
knows  that  the  people  who  are  talking  are  likely  to  be  well 
informed,  and  he  has  in  his  till,  money  enough  to  make  a  good 
thing  out  of  the  speculation.  He  knows  also  that  he  has  but 
seldom  to  verify  his  statement  of  the  contents  of  his  till,  and 
he  believes  that  long  before  it  is  checked  again  he  will  have 
been  able  to  make  "a  good  thing"  for  himself  and  family  out 
of  the  knowledge  chance  has  thrown  in  his  way.  The  false 
step  once  taken,  an  innumerable  multitude  of  witnesses  show 
how  inevitable  is  the  day  of  doom.  Facilis  decemus  avcrni. 
Whether,  in  any  instance,  those  who  have  once  crossed  the 
line  that  divides  the  faithful  from  the  unfaithful  servant 
have  found  their  way  back  undetected,  we  cannot  say,  but 
the  records  of  our  criminal  courts  abound  with  the  names  of 
men  who  have  found  their  way  to  the  felon's  dock  through  in- 
dulging the  fatal  self-deception  that  borrowing  their  employer  s 
money  without  his  consent  was  not  dishonesty  if  the  borrower, 
who  became  so  by  thus  abusing  the  confidence  reposed  in  him, 
purposed  to  return  what  he  had  taken  at  some  convenient  but 
indefinitely  delayed  season.  It  is  almost  superfluous  for  us  to 
say  that  we  offer  no  apology  for  crime,  that  we  extenuate  not 
the  offence  of  those  who  resort  to  a  plausible  but  transparent 
self-deception  in  order  to  disguise  from  their  own  souls  tbe 
gravity  of  the  offence  they  commit,  either  under  pecuniary 
pressure  or  under  the  influence  of  the  common  but  delusive 
nope  of  becoming  suddenly  rich ;  but  we  do  desire  earnestly 
to  press  upon  the  proprietors  and  managers  of  banking  and 
similar  establishments  the  importance  of  removing  all  unavoid- 
able temptation  from  their  servants'  way.  A  man  who  would 
scout  the  idea  of  stealing  a  pocket  handkerchief,  may  not  always 
discriminate  between  borrowing  and  stealing  money  for  which 
he  is  accountable.  And  the  men  upon  whom  the  now  too  com- 
mon laxity  exercises  the  most  deleterious  influence,  are  precisely 
those  who  are  most  likely  to  have  their  integrity  tried  by  hearing 
of  apparently  golden  opportunities  for  enlarging  their  fixed  and 
sometimes  straitened  incomes. 

"We  may  be  asked  what  remedy  we  propose  for  the  mischief 
on  which  we  have  been  commenting.  We  reply  that  we  have 
no  new  nostrum  to  propound,  nor  any  patent  plan  for  making 
people  honest,  to  publish.  We  think  too  well  of  bank  clerks  to 
believe  that  any  large  proportion  of  them  will  ever  yield  to 

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1336         The  American  Grain  Trade  throngliout  the  War, 

temptation,  but  we  desire  to  sliield  tliem  by  removing  tie 
circumstances  which  now  make  it  formidable.  We  would 
simply  recommend  that  the  balances  in  every  cashier's  till 
be  checked  at  least  once  in  three  or  four  days,  instead  of  in  as 
many  months ;  and  we  would  have  the  time  of  such  checking 
uncertain,  in  order  that  no  forethought  might  enable  a  defaulter 
to  evade  his  superior's  scrutiny.  To  the  thoroughly  honest  and 
faithful  clerk  this  would  be  no  hardship,  inasmuch  as  it  woald 
only  the  more  conclusively  prove  his  value;  to  the  would-be 
pilferer  it  would  be  an  insurmountable  obstacle  in  the  way 
of  his  nefarious  designs,  while  to  the  morally  weak  and  vacil- 
lating ;  to  those  who  commit  crimes  through  concealing  their 
enormity  from  themselves ;  who  become  thieves  and  forgers, 
through  calling  acts  of  moral  turpitude  by  specious  names,  the 
knowledge  that  discovery  was  not  only  certain  but  immediate, 
would  act  as  an  effectual  safeguard,  and  would  save  from  the 
felon's  dock  and  the  convict's  prison  many  who,  unler  the 
existing  system,  may  get  there  through  the  combined  operatic 
of  their  own  laxity  of  principle,  and  their  master's  negligence  in 
practice.  To  avert  these  evils,  to  save  the  instruments  of  bank- 
ing property  from  the  wretched  and  hopeless  and  utter  ruin  con- 
sequent on  a  criminal  conviction,  is  surely  worth  the  expense  of 
an  extra  salary,  even  if  such  should  be  found  necessary  to  ensore 
the  constant  application  of  the  check  we  have  suggested.  But 
if  additional  motive  be  wanting,  it  is  to  be  found  in  regard  for 
the  shareholders'  interests,  which,  as  experience  has  shown, 
may  be  more  easily  and  more  seriously  jeopardised  through  the 
loss  entailed  by  ihe  ruin  of  one,  than  by  securing,  at  a  com- 
paratively small  expense,  the  security  of  a  great  number. 


THE  AMERICAN  GRAIN  TRADE  THROUGHOUT  THE  WAR 

Thb  American  grain  trade,  for  several  years  past,  has  gained 
steadily  and  rapidly  in  bulk  and  importance  ;  and,  among  the 
well-informed,  the  opinion  is  now  pretty  general  that  at  no  dis- 
tant period  the  grain  trade  of  England  and  of  Europe  wiU  he 
greatly  affected  by  it.  The  form  which  the  question  of  the 
American  grain  trade  assumes  as  regards  the  future  and  our- 
selves is,  that  the  new  Western  lands  are  extremelv  fertile, 
admit  of  rapid  and  inexpensive  appropriation  and  cultivation, 
and  pay  no  rent.  Or,  put  differently,  while  the  English  fanner 
without  the  profits  of  stock-raising,  could  not  pay  his  way  with 
wheat  at  40*.  per  imperial  quarter,  tie  Western  farmer  might 
maintain  himself,  not  in  affluence  certainly,  but  still  comfortably, 

Digitized  by  ^OOQlC 


The  American  Orain  Trade  throughout  the  War.      1337 

were  he  to  be  paid  no  more  than  cme  shilling  a  bushel  for  wheat, 
or  8«.  an  imperial  quarter.  Hence  the  apparent  prospect  of  an 
eventual  deluge  of  American  grain,  and  the  appropriation  of  all 
the  best  English  wheat  lands  by  the  grazier.  But  the  Western 
farmer  is  from  5,000  to  6,000  miles  distant  from  Mark  Lane, 
and  his  wheat  would  be  cheaply  carried  were  it  put  on  board 
lighters  in  the  City  Canal  at  a  charge  of  8«.  more.  That  brings 
the  cost  to  16«.  a  quarter,  against  40^. ;  and  it  may  readily  be 
imagined  that  8«.  a  quarter  for  wheat  in  the  Western  States 
would  not  encourage  and  stimulate  cultivation.  The  Western 
farmer  would  no  doubt  be  well  pleased  with  twice  8t, ;  which, 
with  carriage,  would  raise  the  price  at  which  Western  wheat 
cotdd  be  profitably  offered  in  Mark  Lane  to  24s.  That  it  is  not 
so  offered  at  the  present  time,  merely  proves  that  the  Western 
supply  is  still  deficient ;  and  it  by  no  means  proves  that  the 
Western' farmer  is  just  now  realizing  the  actual  price  paid  by 
the  English  consiuning  classes.  The  disbanding  of  the  Federal 
armies,  and  the  settlement  of  great  numbers  of  the  soldiers  on 
Western  lands  under  the  homestead  law,  may  largely  increase 
the  production  next  year.  The  present  proportions  of  the  trade 
are  to  be  gathered  from  the  recent  report  of  Mr.  Isaac  Newton, 
the  Commissioner  of  Agriculture  at  Washington.  The  yield  of 
1863  and  1864  and  its  value  is  as  follows : — 


QUAKTITY. 

Bushels. 

BnsheU. 

Basbels. 

Bushels. 

1863. 

186k 

Increase. 

Deorease. 

Indian  com 

897,839,212 

530,451,403 

132,612^91 

— 

Wheat 

173,677,928 

160,695,823 

— 

12,982,106 

Rye 

19,989,336 

19,872,975 

— 

116,360 

Oats 

170,129,864 

175,990,194 

5,860,330 

— 

Barley 

12,168,895 

10,716,328 

— 

1,442,567 

Buckwheat 

15,786,122 

18,700,540 

2,014,418 

— 

Potatoes 

98,965,198 
888,546,554 

96,532,039 
1,012,959,292 

VALUE, 

— 

2,433^69 

141,386,939 

16,974,201 

Indian  yalue  $278,089,609 

$627,718,183 

$249,628,574 

_ 

Wheat 

197,992,837 

294,315,119 

06,322,282 

_ 

Bye 

20,589,015 

31,975,013 

11,385,998 

— 

Oats 

105,990,905 

139,381,247 

33,390,342 

— 

Barley 

13,446,373 

16,941,023 

3,444,650 

_ 

Buekwheat 

12,660,469 

21,986,763 

9,326,294 

— 

Potatoes 

55,024,650 

77,184,043 

22,159,393 

— 

Tobacco 

24,239,609 

29,335,225 

5,095,(516 

— 

Hay 

247,680,855       365,707,074 
$955,764,322  $1,504,543,690 

118,026,219 
$548,779,368 

— 

— 

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1338         The  American  Grain  Trade  thraughwd  the  War. 

Previous  to  the  war,  cotton  was  the  great  disturber  and  re- 
gulator of  the  exchange  with  the  United  States,  which  the  grain 
trade  has  since  become ;  but  become  only  until  such  time  as 
the  production  of  American  cotton  is  once  more  fully  under 
way.  Throughout  the  war,  if  credits  were  to  be  put  up  in 
Ijondon,  for  exchange  or  other  purposes,  floor,  wheat,  and 
Indian  com  were  in  request  in  New  x  ork  ;  and  the  Western 
store  houses  gave  of  their  abundance  to  the  extent  required. 
But  when  the  circumstances  were  urgent,  oic  when  the  quota- 
tions in  New  York  were  in  excess  of  those  at  Mark  Lane,  which 
they  frequently  hare  been,  and  now  are,  the  precious  metals 
were  employed.  Apparent  as  this  has  been  to  all  observers,  it 
strangely  seems  to  have  escaped  attention,  both  in  New  York 
and  the  W  estem  States,  that  one  <^  the  earliest  and  surest  con- 
sequences of  the  cessation  of  the  war  would  be  a  demand  for 
many  articles  which  were  not  thought  of,  or  if  thought  of  were 
not  sought  while  the  war  lasted.  The  United  States  are  just 
now  large  buyers  of  almost  eyer3^hing  usually  supplied  by 
Europe ;  and  at  the  same  time  they  are  not  in  a  position  to 
render  the  Western  grain  supplies  available  for  psyment 
Winter  has  set  in,  and  the  watercourses  leading  to  and  from  the 
Western  States  are  frozen.  The  consequenoe  is,  that  no  con- 
siderable quantity  of  grain  can  be  brought  forward  until  next 
summer;  indeed,  it  is  at  the  moment  doubtfiil  whetlwar  the 
Atlantic  seaboard  cities  are  adequately  supplied  for  their  own 
consumption.  Those  cities  are  for  once  bare  of  stock  when 
large  accumulations  ought  to  have  been  on  hand,  and  the 
penalty  incurred  by  them  may  be  that  of  a  considerable 
and  inconvenient,  if  not  embarrassing,  drain  of  the  predous 
metals.  But,  under  the  peculiar  circumstances,  the  oversight 
is  excusable.  Men  of  means  Ia  New  York,  Boston,  Phfladelphia? 
Baltimore,  and  Portland  never,  perhaps,  had  greater  reason  for 
keeping  their  resources  in  a  state  of  readiness  for  possible 
emergency ;  for  there  is  no  saying  to  what  results  large  specie 
drafts  on  the  reserves  of  an  inflated,  and  to  some  extent  an 
unsound  system  of  banking  would  shortly  lead.  Between  the 
banking  system  of  the  Eastern  States,  which  now  obtains^  aQu 
that  which  existed  before  the  war,  the  points  of  comparison  of 
a  favourable  character  are  not  many.  The  old  established 
system  has  been  supplemented  and  overborne  by  another,  the 
basis  of  which  is  the  possession  of  certain  forms  and  amoonts 
of  indebtedness  of  the  United  States  Treasury.  Upon  the 
security  of  those  forms  and  amounts  of  indebtedness  there  have 
been  new  issues  of  notes,  and  in  a  season  of  perplexity  it  would 
not  be  satisfactory  to  the  American  public,  were  the  new  issues 


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The  American  Grain  Trade  throughout  the  War,        1 339 


of  notes   inconvertible  into  coin  on  anything  that  might  be 
offered  by  the  holders. 

The  present  position  of  the  American  grain  trade  is  partly  to 
be  gathered  from  the  imports  into  the  United  Kingdom  for  the 
nine  months  ending  the  30th  September,  and  partly  from  the 
movements  on  the  Erie  Canal  from  Buffalo  and  Oswego  to 
Tide  Water,  at  Albany,  since  the  opening  of  the  canal  to  the 
4th  October  :— 


AMBBIOAK  QTiAXS  IMPORTS  n^TO  THB  tTKITIED  Kn^ODOM. 

1865     854,212  cwts. 

99 


1864 
1863 


7,100,042 
6,726,742 


EBIE  CANAL  BECEIPTS  AT  TIDE  WATEB. 


Flour,  barrels 
Wheat,  bushels 
Corn,  bushels 


1865. 

Canal  opened 

Mayl. 

490,600 

5,733,700 

10,493,900 


1864. 

Canal  opened 

April  sa 

670,000 

11,572,400 

7,435,600 


1863. 

Canal  opened 

Mayl. 

848,600 

12,197,300 

18,313,100 


This  falling  off,  it  may  be  well  to  repeat,  is  in  the  main 
owing  to  the  absence  of  margin  as  between  the  prices  current 
in  New  York  and  Mark  Lane.  The  utter  absence  of  a  margin 
rendered. the  New  York  capitalists  and  trade  indifferent  to 
extensive  operations  in  grain,  and  the  supplies  of  the  Western 
States  have  therefore  been,  and  are  still,  seeking  a  market  in 
the  impoverished  Southern  States.  Those  States  are  insufh- 
ciently  provided  with  the  necessaries  of  life,  and  will  continue 
so  until  next  harvest. 

Throughout  the  war  the  American  grain  trade  has  been  less 
seriously  disturbed  than  might  a  priori  have  been  imagined. 
The  market  has  had  an  upward  tendency,  and  higher  prices  have 
been  established,  and  when  these  statements  are  made  there  is 
hardly  another  word  to  say.  Four  years  of  costly  war  failed 
to  bring  about  confusion ;  failed  to  imsettle  anything  connected 
with  the  sowing,  the  planting,  the  gathering,  or  the  selling  of 
grain.  The  prices  in  New  York  on  the  3rd  January  of  each 
year  have  been  as  follows  : — 

PRICES  OF  OBAIK  IN  KEW  TOBK. 


1860. 

1861. 

1862. 

1863. 

1864. 

1865. 

Flour,  State,  barrels 

94  30 

$5  35 

85*50 

8605 

♦700 

$1000 

—  Genesee 

7-60 

7-50 

7-50 

8-75 

1100 

1200 

Rye  flour 

400 

400 

3-87J 

545 

6-65 

9()0 

Jersey  com  meal 

3-90 

315 

300 

400 

565 

8-80 

WlieatjGen  eflee,bush. 

1-50 

1-45 

1-50 

1-60 

1-80 

2-60 

—    Mi^l'igftn 

1-50 

146 

1-50 

153 

1-83 

2-70 

—    Ohio 

145 

145 

1-48 

153 

1-83 

260 

Digitized  by  LnOOg IC 

1340        The  American  Grain  Trade  throughaui  ike  War. 

1860.        186L        1862.        1863.      1864.     18C$ 


—    Southern 

145 

145 

162 

«-. 

•^ 

275 

—    Western 

130 

138 

l^^ 

148 

157 

2^45 

—    Chicago 

— 

118 

1-30 

133 

1^ 

n2, 

Rye,  Northera 

•92 

•75 

•83 

-96 

130 

175 

Oats,  State 

•46i 

•37 

•42 

•71 

« 

1-U6 

CorOy  old  Weatern 

•90 

•72 

•64 

•82 

1-30 

1^ 

—  new  Southern 

•80 

-72J 

•68 

•86 

— 

— 

In  round  numbers  prices  doubled ;  a  note  could  buy  Ae  half 
of  what  it  bought  before.  And  this,  instead  of  being  surprising, 
is  itself  a  marvel,  for  according  to  the  report  of  Mr.  Fenenden^ 
the  first  successor  of  Mr.  Chase  at  the  United  States  Treasury, 
the  Treasury  expenditure  exceeded  the  revenue  by  the  foUowing 
sums ;  exceeded  it  in  the  form  of  greenbacks,  I%&1  tenders, 
certificates  of  indebtedness,  Ac. : — 

XXCBSS  or  TUKASTTaT  I88T7X8. 

1862 $422^809,068 

1863 603,310,^ 

1864 6D4^i;370 

1865 904^278^608 

$2/94,999,265 

An  emission  of  Treasury  obligations  nominally  equal  to  the 
gigantic  sum  of  JBSOTyOOOyOOO,  effected  no  more  than  an  adTance, 
in  State  flour,  from  $4.30  to  $10.00,  and  in  Genesee  wheat, 
from  $1.50  to  $2.60.  The  increase  seems  incredible;  that  is 
in  the  light  of  past  experience  in  such  matters.  We  were  led 
to  think,  that  in  something  like  the  proportion  that  a  circu- 
lating medium  became  redundant,  and  that  gold  appreciated, 
the  prices  of  commodities  would  advance.  But  in  the  United 
States  we  have  examples  of  speculation  in  gold,  and  of  indif- 
ference to  the  amount  of  notes  issued  by  the  banks  or  the 
Treasury.  Gold,  notes,  and  commodities  were  in  the  main 
acted  on  and  influenced  by  separate  causes ;  and  those  canaeB 
were  chiefly  whimsical  ''quersings'' which  sometimes  painted 
in  the  dullest  colours  the  course  of  events,  the  conduct  of  the 
Government,  and  the  ultimate  action  of  the  ''people''  at  the 

Soiling  booths  on  the  question  of  repudiation.  And  what  has 
appened  in  the  United  States  is  precisely  what  would  happen 
in  this  or  any  other  intelligent  country  at  the  present  day. 
Who,  for  example,  has  not  wondered  at  the  equanimity  irith 
which  sudden  and  extraordinary  advances  in  the  Bank  rate  are 
borne  ?  People  now  exercise  their  minds ;  in  times  gone  by 
they  knew  nothing  of  sensations,  and  fled  like  sheep  when  the 
ciy  of  wolf  was  raSised.    And  the  change  is  a  wholesome  and 

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Banking  and  Financial  Anecdotes.  1341 

hopeful  one:  for  now-a-days  a  free  people  might  venture  on 
almost  any  sacrifice  in  a  popular  cause,  without  coming  to 
serious  injury  by  so  doing.  For  the  same  reason  a  bad  and 
unpopular  cause  could  not  now  possibly  succeed;  because  no 
credit  and  no  reserve  of  specie  would  counteract  and  make 
head  against  the  opprobrium  with  which  it  must  be  assailed. 
The  lesson,  therefore,  of  the  American  war,  as  exemplified  by 
the  grain  trade,  is,  that  the  world  is  not  exactly  as  it  was  when 
the  Bank  of  England  was  restrained  by  Act  of  Parliament 
from  paying  its  notes  in  specie.  Some  fifty  years  of  peace,  good 
government,  and  education  have  modified,  if  not  wholly  invali- 
dated, some  of  the  most  orthodox  of  the  money  theories.  The 
age  has  become  highly  practical. 


BANKING  AND  FINANCIAL  ANECDOTES. 
No.  XITL 

THE  LONDON   BANKER  AND   TH£   IRISH  ICOUNTAIK. 

The  fioorishiDg  seaport  of  Sligo,  on  the  north  western  coast  of 
Ireland,  is  celebrated  for  the  boldness  and  beauty  of  its  scenery ;  a 
short  distance  from  the  town  there  is  a  perpendicular  or  slightly 
sloping  mountain  called  Ben  Bulben,  better  known  in  Ireland  than  in 
England  About  half  a  century  ago  a  trader  in  Sligo,  more  remark- 
able for  enterprise  than  integrity,  having  exhausted  all  the  legitimate 
and  ordinary  means  of  raising  money,  conceived  the  idea  of  floating 
fictitious  acceptances^  and  with  this  object  he  forwarded  to  his  English 
banker,  for  discount,  several  biUs  of  exchange  drawn  on  and  accepted 
by  Ben  Bulben  and  Co.  The  London  banker  not  being  acquainted 
with  the  acceptors,  wrote  to  his  Irish  correspondent  for  his  con- 
fidential opinion  of  the  firm.  The  latter,  well  known  for  his  love  of 
humour,  and  treating  the  inquiry  as  a  joke,  replied  as  follows  :  "  The 
parties  inquired  about  are  ]ong  resident  in  this  locality,  and  are  looked 
up  to  aa  the  most  extensdve  land  holders  in  this  district,  possessing 
within  their  own  limits  the  varied  resources  of  rich  pasture,  turbary, 
and  inexhaustible  supply  of  mineral  wealth  and  an  unrivalled  water 
power.  In  character,  Ben,  the  principal  of  the  partnership,  is  what 
we  call  here  a  stiff-necked  sort  of  fellow,  and  I  have  heard  it  said 
that  if  his  cap  were  on,  he  would  not  take  it  ofi'to  Royalty.  Although 
he  is  constantly  imbibing  mountain  dew,  a  term  often  used  to  express 
illicit  spirits,  his  steadiness  is  undoubted ;   and  as  to  his  stability,  it 

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1342  Banking  and  Itnanctal  Anecdotes. 

cuinot  be  qnestioiied — as  in  fiaict  he  is  the  principal  of  the  chain  of 
mountains  which  run  through  this  and  the  adjoining  oounties." 

This  description,  though  meant  as  a  joke,  was  actually  oonadcred 
bj  the  London  banker  as  a  bond  fide  communication  ;  and  though  the 
bills  were  actually  drawn  on  Ben  Bulben  and  Co.,  a  mountain  range 
near  Sligo^  they  were  actually  discounted  ;  and  the  manager  of  the 
bank,  when  the  fraud  was  discovered,  was  compelled  to  resign. 


A  PECK  OF   BOTBRKIONB. 

At  Wisbeach,  in  Cambridgeshire,  the  bank  of  MessrsL  Gumey  and 
Co.  for  a  long  series  of  years  was  generally  known  by  the  name  of 
the  local  partner,  as  ''  Peckover's  bu:ik.''  During  the  severe  panic  of 
1825  one  of  the  partners  is  said  to  have  had  recourse  to  the  following 
expedient  for  maintaining  the  credit  of  the  firm.  He  caused  a  peck 
measure  to  be  placed  in  the  bank  window,  and  heaping  up  sovereigns 
on  a  £Edse  bottom,  fixed  near  the  mouth  of  the  measure,  announced  to 
the  satisfiiction  of  admiring  customers^  by  means  of  a  placard  under- 
neath, that  the  bank  had  '^  enough  to  pay  and  a  peck- 


OH  THE  BANK  PBOBBCUTIONS  FOR  FOROKBT. 

Many  of  the  forged  notes  of  the  Bank  of  England  were  at  one 
time  so  well  executed,  that  the  authorities  of  the  Bank  themselTei 
were  at  times  unable  to  detect  a  forged  frt>m  a  genuine  note,  con- 
sequently many  of  the  former  were  paid.     This  &ct  having  been 
disclosed  in  the  progress  of  the  case  referred  to  in  a  former  number, 
numerous  petitions  were  presented  to  Parliament  against  the  punish- 
ment of  death,  but  no  circumstance  tended  more  to  cause  the  suproBsitm 
of  the  one-pound  notes  than  the  bol  d  stand  made  by  the  late  St^en 
Curtis^  Esq.,  who  was  one  of  the  juiy  on  an  occasion  when  a  prisoner 
was  on  lus  trial  for  forging  bank  notes  and  acquitted.     The  judge  hsT- 
ing  asked  for  an  explanation  of  a  verdict  of  acquittal  when  the  evidoioe 
against  the  prisoner  was  so  dear,  Mr.  Curtis  publicly  addreesed  the 
judge,  saying,  '^  We  do  not  believe  the  evidence  given  by  the  detective^ 
who,  it  appears,  was  employed  in  entrapping  the  unfortunate  prisoner  to 
commit  the  offence^  he  and  others  arranging  to  receive  ten  ponnds 
each  for  every  person  convicted  by  their  evidence:     We  consider 
such  an  arrangement  highly  objectionable."  And  he  added  the  foUov- 
ing  personal  remarks, — ^**  My  Lord,  as  the  Bank  authorities  are  oft«> 
unable  to  detect  foiged  notes,  I  am  determined  never  to  hnog  in  * 
verdict  of  guilty  against  anyone  who  may  be  put  on  his  izial  fernoh 


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Banking  and  IXn^tncial  Anecdotes.  1343 

an  offence,  and,  acting  on  tbis  determination,  I  have  resolTed,  let  the 
consequences  be  what  they  may,  to  acquit  the  prisoner."  Soon  after 
this  public  exhibition  against  the  law,  as  it  then  stood,  it  was  happily 
altered,  transportation  being  substituted  for  death  for  forging  bank 
notes. 


THE  OLD  LADY  OF  THREADNEEDLE  STEEET. 

Many  people  are  much  puzzled  to  know  why  the  Bank  of  England  is 
commonly  called  ''  The  Old  Lady  of  Threadneedle  Street ;"  it  arose 
from  the  circulation  of  a  caricature  by  the  celebrated  Qilray,  dated 
May  22nd,  1797,  entitled  "  Political  Ravishment,  or  the  Old  Lady  in 
Threadneedle  Street  in  danger.''  In  the  caricature  an  old  lady  is 
represented  seated  on  a  box,  which  is  supposed  to  contain  the  money 
of  the  Bank  so  safely  secured  that  it  is  not  to  be  touched. 

The  stoppage  of  payment  in  specie  by  the  Bank  of  England  in  the 
month  of  February  in  the  same  year,  and  Pittas  measure  for  the  issue 
of  onc'pound  notes,  gave  rise  to  the  satire. 


A   PLEASING  TRATF  IN  THE   CHARACTER  OF  THE  LATE  MR.   OOUTTS, 
THE    BANKER. 

When  Mr.  Coutts  was  a  single  man  and  known  to  be  very  wealthy 
he  was  an  object  of  attraction  to  more  than  one  noble  family  having 
portionless  daughters,  in  the  hope  that  an  alliance  with  the  rich 
banker  would  be  the  means  of  relieving  them  from  their  pecuniary 
necessities,  but  these  aristocratic  matrimonial  speculators  were  all 
deceived  and  confounded  by  the  choice  Mr.  Coutts  made  of  a  wife  in 
the  peiBon  of  Elizabeth  Starkey,  a  superior  domestic  in  his  brother's 
service,  with  whom  he  lived  many  years  in  the  enjoyment  of  every 
domestic  comfort  His  family  consisted  of  three  daughters,  who  re- 
spectively married  the  Marquis  of  Bute,  the  Earl  of  Guildford,  and 
Sir  Francis  Burdett.  Few  men  ever  enjoyed  in  an  equal  degree  with 
Mr.  Coutts  the  confidence  and  esteem  of  his  friends,  or  obtained,  un- 
aided by  rash  or  political  power,  so  much  consideration  and  influence 
in  society.  His  conduct  to  the  clerks  in  the  bank  was  the  constant 
theme  of  admiration.  Take  the  following  instance.  It  was  a  custom 
with  Mr.  Coutts  at  every  return  of  Christmas  to  have  his  clerks  in 
his  private  room,  one  at  a  time,  when  he  would  address  them  in  the 
kindest  manner,  would  inquire  after  their  health  and  that  of  their 
families,  would  then  say,  '*  let  me  see,"  then  turning  to  his  memoran- 


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1344    Forgery  hy  the  Directors  ^  a  Finance  Corporation, 

dum  of  the  preceding  Christmasy  he  would  say,  ^  Oh,  Mr. ^  I 

find  your  family  consisted  of  your  wife  and  fonr  children,  hare  yoa 
during  the  past  year  had  any  addition  to  your  family  l"*  If  the  answer 
was  in  the  negatire,  he  would  say,  ^  Well,  fit,  here  is  a  cheque  for 
£60,  £10  for  yourself  £10  for  your  wife,  and  £10  for  each  of  yoar 
children."  If  the  clerk  was  to  say,  Tes,  sir,  I  hare  had  a  son  or 
daughter,  as  the  case  might  be,  since  last  Christmas^  he  would  then 
give  him  an  additional  £10,  and  this  he  did  on  each  return  of  Christ- 
mas. Of  course  the  gratuities  were  in  addition  to  their  ordinary 
salaries,  which  were  on  a  liberal  scale.  In  the  case  of  a  clerk  who 
was  unmarried  he  would  present  him  with  a  cheque  for  £10,  and  this 
continued  until  his  last  illness  prerented  his  attoidance  at  the 
hanking  house.  An  example  well  worthy  of  imitation  by  all  bankers, 
for  it  is  impossible  to  estimate  too  highly  the  value  and  importance 
of  the  gentlemen  whose  daily  business  it  is  to  carry  out  the  immense 
complicated  transactions  of  our  banking  institutions  throughout  the 
country.  If  we  view  them  as  a  body  of  men  daily  and  hourly  unre- 
servedly intrusted  with  immense  sums  of  money,  we  are  led  to  place 
a  high  yalue  on  the  int^rity  and  fidelity  with  which  their  serezal 
duties  axe  performed. 


DAimSL  O  COMXELL  AND  THE  BAITK  TELLER. 

The  late  Daniel  O'ConneU  was  proverbial  for  his  pungent  remarks 
both  in  the  House  of  Commons  and  in  the  law  courts  of  Ireland  On 
one  occasion  he  was  counsel  for  a  trader  who  was  defendant  uian 
action  brought  by  one  of  the  Irish  banks.  When  cross-examimng 
one  of  the  witnesses  for  the  bank,  Mr.  O'Connell  is  said  to  have  asked 
the  foUowing  question : — '*  What  position  do  yoa  occupy  in  this 
establishment  V  *«  I  am  a  teller,"  replied  the  cleric  ^*  Now,  en 
your  oath,"  said  Mr.  O'Connell,  "if  yon  were  made  cashier,  would  yoa 
become  'a  runner  ?* " 


FORGEBT  BY  THE   DIRECTORS  OF  A  FINANCE 
COBPORATION. 

At  the  Bombay  Criminal  Sessions,  before  the  Hon.  Mr.  Justice  Anstef , 
on  the  29th  September,  B^  Jayras,  Khuttow  Ludha,  and  Culiisnjee 
Lu<Uia,  were  arraigned  for  forgery,  abetment  of  foigeiy,  and  abetment  d 
criminal  breach  of  trust.    They  pleaded  not  guilty. 

Mr.  McCulloch  and  Mr.  Green  conducted  the  prosecuticn;  Mcats. 
Howard  and  CLeary  defended  the  first  prisoner,  Messra.  Mayfaew  and 
Cooper  the  second,  and  Messrs.  Bayley  and  Hayllar  the  third. 


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Forgery  hy  the  Directors  of  a  Finance  Corporation.       1345 

The  facts  of  the  case  were  as  follows  : — In  November,  1864,  an  association 
was  formed  imder  the  designation  of  "  The  Commercial  Finance  and  Stock 
Exchange  Corporation."  Six  names  appeared  in  the  list  of  directors, 
amongst  which  were  those  of  the  first  and  second  prisoners ;  the  third 
prisoner  was  not  at  that  time  associated  with  the  corporation,  but  became 
a  director  subsequently.  They  did  no  business  till  Marcli,  1865,  and  the 
first  minute  on  the  records  of  the  association  gave  notice  that  they  were  to 
commence  business  in  that  month.  During  the  interval  several  directors 
entered  into  an  agreement  to  speculate  in  shares ;  especially  in  shares  of 
their  own  company.  By  that  agreement  the  first  and  second  prisoners 
were  to  advance  two  lacs  of  rupees  for  speculation  in  shares.  When  the 
calls  on  the  shares  of  ttie  cori)oration  were  first  paid,  the  association  opened 
an  account  in  the  Central  Bank ;  and  the  first  and  second  prisoners,  as 
directors,  were  authorised  to  draw  from  the  Central  Bank,  on  accoimt  of 
"  Commercial  Finance  and  Stock  Exchange  Corporation."  In  March  Mr. 
Taylor,  the  chairman,  retired  from  the  directorate,  and  up  to  the  moment 
of  his  retirement,  not  one  transaction  of  any  kind  whatsoever  was  done  on 
behalf  of  the  corporation.  Yet,  notwithstanding  that  there  were  no  trans- 
actions, the  six  directors  had  been  trading,  and  the  loss  of  Rs.  3,39,442  was 
the  final  result  of  their  speculations.  Having  exhausted  the  two  lacs  of 
rupees,  they  wanted  more  funds,  and  obtained  it  from  the  funds  of  the 
corporation  by  drawing  Rs.  2,29,614,  from  the  Central  Bank,  to  make  up 
their  losses  while  speculating  in  shares.  No  business  was  done  till  March, 
and  after  a  few  more  entries  on  the  11th  of  March,  that  set  of  entries  was 
neglected,  and  the  directors  commenced  a  new  account  in  December. 
These  new  entries  were  matle  at  tlie  request  of  the  first  and  second  prisoners, 
and  another  director  named  Toolseydass  Dewjee;  but  Toolseydass  having 
been  made  acquainted  of  his  danger  retired  from  the  company,  and  fur- 
nished information  which  led  to  the  prosecution  of  the  prisoners.  Nothing 
was  known  till  the  10th  of  July,  when  it  appeared  from  the  accounts  that 
a  sum  of  Rs.  3,39,000  was  lost  to  the  corporation,  in  addition  to'  possessing 
some  4,000  of  their  own  shares,  which  were  worthless.  The  conspiracy  of 
the  speculators  involved  the  directors,  and  the  second  prisoner  concocted  a 
scheme  which  led  to  the  present  prosecution.  He  got  some  blank  forma 
of  agreement  for  the  purchase  of  shares,  then  took  them  to  the  chairman, 
and  after  having  obtained  his  signature  to  them,  he  took  six  of  those  blank 
agreements  to  a  broker  and  got  him  to  fill  in,  on  the  18th  July,  the  names 
of  certain  alleged  vendors,  the  dates,  and  number  of  shares.  The  prisoner 
furnished  the  names  which  the  broker  inserted ;  and  the  third  prisoner 
was  in  the  room  when  the  documents  were  forged.  The  agreements  were 
in  that  form  applied  to  the  purchase  of  shares  of  the  corporation,  and  the 
manager  was  instructed  to  enter  them.'  It  was  on  the  18th  July  when  the 
manager  was  instructed  to  enter  the  purchases  of  February.  The  next 
thing  done  was  the  compromise  of  that  purchase  by  the  first  prisoner,  and 
to  the  second  and  third  prisoners  were  granted  a  general  power  of  attorney 
for  the  corporation.  Thus  Dyal,  the  first  prisoner,  obtained  the  sum  of 
Hs.  2,45,306  as  the  net  result  of  the  transaction. 

These  facts  having  been  proved,  by  evidence, 

Mr.  Howard,  in  addressing  the  jury  on  behalf  of  the  first  prisoner  Dyal 
Jayraz,  submitted  that  the  case  for  the  prosecution  was  not  proved. 
The  charge  extended  over  about  fifty  counts,  which  his  lordship  had 
properly  termed  **  oppressive ; "  and  one  could  not  help  entertaining  a 
doubt,  where  it  took  so  much  time  and  so  many  words  to  describe  the 
charge,  whether  it  was  one  on  which  they  co  uld  convict  the  prisoner. 
His  learned  friend,  the  leading  counsel  for  the  prosecution,  said  the 

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1346      Forgery  by  the  Directors  of  a  Finance  Corporation. 

prisonoTB  were  prominent  and  respectable  persons,  and  it  was  no  dcmbt 
a  matter  of  interest  that  they  were  so.    He  did  not  for  one  moment 
ask  tiiem  to  give  the  prisoDers  any  more  respect  on  that  aoooimty  bat, 
on  the  other  hand,  desired  that  they  woold  giye  them  no  leas.     The 
question,  they  were  told  by  the  counsel  for  the  prosecution,  was  whether 
certain  documents  were  executed  in   February,  when  they  bore  date, 
or  in  July ;  and  he  (Mr.  Howard)   should  call  eyidence  to  prore  that 
they  were  executed  in  February  and  not  in  July.    And  it  was  a  matter 
of  remark  that  the  man  who  was  said  to  haye  written  these  docu- 
ments, Luckmedass  Dharsey,  had  not  been  called  by  the  proeecution. 
Th&f  had  not  called  the  yery  mehta  who  wrote  the  agreements :  and  why. 
because  when  they  examined  him  before  Mr.  Baiion,  the  chief  magis- 
trate, he  flatly  contradicted. the  case  of  the  prosecution,  and  said  the 
documents  were  written  in  February.  His  learned  friend  had  shown  ayeiy 
good  acquaintance  with  criminal  proceedings,  and  he  knew  the  importance 
of  haying  a  reply,  and  that  he  could  not  haye  a  r«>ly  unless  the  def eodaDts 
called  eyidence ;  and  that  was  the  reason  that  he  had  thrown  upon  them 
the  obligation  which — with  deference  to  his  lordship — according  to  the 
understanding  of  the  profession,  always  deyolyes  upon  the  prosecution  of 
calling  all  the  witoesses  who  were  examined  when  the  charge  was  first 
brought.    Mr.  Howard  then  proceeded  to  criticise  most  seyerely  the  con- 
duct of  TooLseydass  Dewjee,  who,  he  said,  haying  made  his  exit  from  the 
scene  as  a  scoundrel,  appeared  again  as  an  informer.    And  that  was  the 
man  upon  whose  eyidence,  if  it  was  to  be  belieyed,  the  prisoners  might  be 
sentenced  to  transportation  for  life.    Supposing  what  he  alleged  to  be 
true,  he  himself  was  worse  than  the  prisoners ;  for  he  had  oonmiitted  two 
crimes  instead  of  one :  the  yillain  and  the  traitor  was  surely  worse  than 
the  simple  yillain.    He  called  upon  the  jury  to  discredit  the  eyidence  of  <»e 
who  came  there  coyered  with  infamy,  and  who  desired  to  ruin  those  men 
who— according  to  his  own  statement — had  been  the  partners  of  hii 
guilt.    The  learned  counsel  then  contended  that  the  eyidence  of  Tool* 
seydass  was  not  only  to  be  discredited  on  account  of  his  own  infamy, 
but  by  the  other  eyideuce  for  the  prosecution ;  and  in  support  of  this 
assertion  he  quoted  the  eyidence  of  Manockjee  Hormasjee  and  of  Kor- 
sondass  Kutchra,  the  broker.     How  unlikely  it  was  that  any  broker 
in  Bombay  shoiiLd  put  his  uame  to  bank  agreements,  and  then  retrnii 
them  to  the  person    who    gaye  him   them.     As  for  Kursondass,  his 
opinion  was  tnat  he  was  an  accomplice  in  the  fraud,  and  therefore  he 
could  not  strengthen  the  case  for  the  prosecution  at  all.    And  when  they 
mentioned  Toolseydass  and  Kursondass,  all  the  eyidence  had  been  men- 
tioned that  touched  the  prisoners ;  the  others  did  nothing  but  fill  up  the 
story.    Mr.  Howard  went  on  to  say  that  the  suggestion  he  had  to  make 
was,  that  Dinshaw  Ardeseer  Dayer  and  Tools6das8l)ewjee  were  the  original 
oontriyers  of  the  fraud,  and  that  Dyal  Jayraa,  in  ordering  the  entry  to  be 
made  in  the  minutes,  merely  did  so  at  their  direction.    They  would  put  in 
the  eyidence  that  was  taken  before  the  magistrate,  and  he  thou^t  they 
would  be  much  struck  with  the  deyelopmant  of  the  case  since  that  inqoiiy. 
It  was  wonderful  how  Toolseydass's  story  had  ben  toudied  np  since  Uiaft 
time,  and  its  wei^  points  improyed.    Considering  the  great  number  of 
shares  the  prisoners  had  in  the  company,  their  motiye  for  cheating  the 
company*—  which  was,  in  fact,  cheating  themselyes — ^was  by  no  means  so 
dear  as  that  of  the  prosecutor,  who  had  not  nearly  so  many  shares.    It 
would  be  sworn  that  the  contracts  were  not  written  by  the  orders  of  Dyal 
Jaraz,  but  by  the  orders  of  Toolseydass    That  there  was  attempt  at  frud, 
he  was  perfectly  certain ;  only  he  differed  from  the  prosecution  as  to  the 


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personA  on  whom  the  fraud  ought  to  be  fixed.  There  was  one  who,  by 
his  own  confession,  was  a  criminal,  but  whether  the  persons  whom  he 
accused  were  connected  with  the  fraud  was  another  matter.  Mr.  Howard 
concluded  by  saying  he  would  put  in  the  depositions  made  before  the 
magistrate,  and  would  read  the  evidence  of  Luckmedass  Dharsey,  which  he 
was  proceeding  to  do  when  Mr.  McCulloch  interrupted  him,  objecting  to 
his  doing  so  on  the  ground  he  had  already  stated. 

Mr.  Mayhew  then  addressed  the  jury  on  behalf  of  the  second  prisoner , 
Elhuttow  Luddha,  and  began  by  stating  his  theory  of  the  motives  which 
had  brought  this  prosecution  about.  He  frankly  admitted  at  starting  that 
those  six  documents  were  intended  to  be  used  by  the  man  whose  name 
stood  at  the  foot  of  tjiiem  and  by  the  prosecutor  himself,  as  against  the 
company,  and  for  their  own  advantage.  That,  he  thought,  was  the  irre- 
sistible inference  from  the  facts  which  the  prosecutor  himself  had  deposed 
with  reference  to  Dinshaw  Ardaseer  Daver.  Those  two,  with  Kursondass 
Kutchra,  they  found  working  together,  from  the  commencement  of  the 
company,  as  the  secretary  himself  said,  in  constant  conversation  with  him 
with  reference  to  the  affairs  of  the  company.  Looking  at  the  state  of 
affairs  both  then  and  afterwards,  they  would  not  find  it  an  unreasonable 
supposition  that  the  contracts  were  in  reality  put  in  writing  by  Dinshaw 
and  Kursondass,  with  the  knowledge  of  Toolseydass,  in  the  month  of  Feb- 
ruary and  quietlv  kept  back  for  their  own  purposes  until  the  time  came  at 
which  they  could  make  their  claim  against  the  company.  He  endeavoured 
to  show,  too.  that  it  was  also  quite  reasonable  to  suppose  that  the  prisoners 
at  the  bar  (Khuttow  and  Gullianjee)  acting  on  the  ready  trust  which  they 
had  all  along  had  in  Dinshaw  as  the  man  of  business — merely  did  their 
part  at  the  dictation  of  Dinshaw.  And  it  was  possible,  that,  pressed  after, 
wards  by  questions  from  the  prisoners,  Dinshaw  and  Toolseydass  felt 
obliged  to  turn  about  and  make  this  charge  against  them.  The  real  story 
the  jury  could  never  get  to  the  bottom  of,  but  they  must  be  left  to  sift  the 
matter  in  the  dark,  and  perhaps  they  would  see  reasons  to  come  to  those 
conclusions.  Mr.  Mayhew  pointed  out  that  Toolsedasa  had  proved  himself 
to  be  unworthy  of  credit  by  practising  an  imposition  on  the  jury,  in  saying 
that  he  did  not  understand  English,  when  it  was  proved  in  the  evidence 
that  he  could  both  speak  and  read  English.  He  concluded  by  expressing 
tlie  opinion  that  the  evidence  must  irresistibly  lead  the  jury  to  the  con- 
clusion—albeit  they  must  be  convinced  there  was  a  fraud,  yet  that  it  was 
not  a  fraud  committed  by  the  prisoners,  but  endeavoured  to  be  palmed  off 
upon  them,  the  real  actors  seeking  to  make  them  the  victims. 

Mr.  Bay  ley  next  spoke  on  behalf  of  Gullianjee  Ludha,  the  third  prisoner, 
and  began  by  impressing  upon  the  jury  that  his  case  differed  in  the  most 
material  points  from  that  of  the  other  two  prisoners.  Gullianjee  was  not 
an  original  partner  in  the  share  speculation,  and  was  not,  as  Toolseydaes 
had  said,  even  a  sub-partner  with  his  brother,  neither  could  it  be  said  that 
he  was  indebted  a  single  pice  to  the  corporation.  Mr.  Robert  Taylor— that 
model  chairman  of  an  association,  a  gentleman  who  came  out  at  Es.  200 
for  Messrs.  Watson  and  Company — said  he  knew  nothing  whatever  of  Gul- 
lianjee. Not  only  was  Gullianjee  not  a  sub-partner  with  his  brother  in 
the  slightest  degree,  but  it  was  proved,  even  from  the  evidence  of  Toolsey- 
dass, that  he  was  separate  from  his  brother  in  food,  worship,  and  estate— 
and  that  proved  a  great  deal.  All  these  things  showed  that  there  was  a 
marked  diBtinction  between  his  case  and  that  of  the  other  two  prisoners. 
The  theory  of  the  prosecution  was  this,  that  the  fraud  and  the  conspiracy 
were  concocted  for  the  purpose  of  enabling  parties  who  had  no  money  of 
their  own,  to  meet  tiieir  engagements  and  perhaps  make  a  little  profit ;  but 

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1348       Forgery  hy  the  Directors  of  a  Finatice  Corporaium. 

this  theory  could  not  apply  to  Cullianjee,  who  was  a  man  of  wealth  and  had 
not  for  a  single  moment  owed  a  pioe  to  the  company.  Therefore,  he  (the 
learned  counsel)  asked  them  to  look  npon  him  when  he  came  npon  the  stage 
on  the  18th  July — ^when  he  first  acted  as  a  director,  having  been  ^pointed 
only  three  days  before— as  one  who  came  with  dean  hands.  He  then 
stated  that  Cullianjee  was  and  is  a  judgment  creditor  of  the  prosecator 
Toolseydass.  He  lent  him  Bs.  20,000  early  in  March  of  the  present  year, 
and  sued  him  for  payment,  and  on  the  26th  June  decree  for  payment  was 
obtained  with  an  order  for  immediate  execution.  In  consequence  of  some 
intercession,  execution  was  delayed,  and  Cullianjee  was  persuaded  by 
Toolseydass  to  lend  him  Rb.  11,000,  a  mortgage  being  executed  in  hu 
favour  uj^n  some  property  belonging  to  Toolseydass  on  the  8th  July.  This 
was  only  seven  days  before  he  became  a  director,  and  Toolseydass  in  exe- 
cuting this  mortgage  in  his  favour  must — ^if  what  he  averreid  was  true— 
have  known  that  he  was  at  that  time  engaged  in  a  fraudulent  conspiracy. 
Such  conduct  it  was  very  difficult  to  understand  Then,  coming  to  the 
appointment  of  two  directors  on  the  15th  July,  he  could  not  see  how  it 
was  necessary  for  Dinshaw  or  Toolseydass,  or  any  other  person  carrying 
on  this  fraud,  that  the  directors  should  be  appointed.  Again,  it  was 
almost  impossible  to  believe  that  Kursondass  Kutchra  came  to  the  meeting 
on  the  16th  July  merely  to  sunmion  Toolseydass  to  his  father's  sickbed. 
Kursondass,  it  was  said,  filled  up  the  blanks  for  those  six  agreements,  at 
whose  dictation  ?  At  Chillianjee's  f  No.  And  thus  they  saw  again  how 
distinct  his  case  was  from  that  of  the  others.  It  was  Dyal  and  Kuttow, 
and  those  two  alone,  who  gave  instructions  to  Kursondass  to  fill  up  these 
blanks.  Cullianjee  was  charged  with  forgery ;  but  a  man  oould  not  be 
charged  with  forgery  unless  he  had  done  something.  The  learned  counsel 
having  referred  to  points  indicating  as  probable  that  Cullianjee  knew 
nothing  at  all  about  the  transactions  in  question  before  the  18th  July, 
proceeded  to  show  that  probably  he  merely  signed  the  minute  in  obedience 
to  the  direction  of  his  co-directors ;  and  expressed  his  belief  that  the  jury 
would  see  that  he  could  not  in  the  slightest  degree  be  implicated  with  any 
body  else.  He  oould  have  no  motive  whatever  either  being  indebted  to 
the  company  nor  to  anybody  else — for  entering  into  any  wicked  conspiracy 
or  fraud,  such  as  that  diarged  by  the  prosecu^on.  He  was  a  gentlemanly 
man,  of  good  standing,  and  of  high  socnvl  position  among  his  neifi^boura 
and  his  fellows.  Monetary  motives  he  could  have  none,  for  he  had  plenty 
of  money  of  his  own.  To  screen  Ids  brother  it  could  not  have  been. 
To  aid  the  other  in  perpetrating  the  crime  it  oould  not  have  heea ;  for 
they  could  have  done  it  without  him.  Prosecutor  had  brought  him  into 
the  case  through  spite  or  revenge,  or  on  account  of  the  heavy  debt  under 
which  he  lay  to  him. 

About  eight  witnesses  were  examined  on  behalf  of  the  prisoners ;  some 
of  whom  gave  their  evidence  in  a  most  unsatisfactory  manner.  One  of  the 
justices  of  the  peace,  Mr.  Luckmidaas  Khimjee,  was  severely  reprimanded 
by  the  learned  judge  for  having  failed  to  inform  the  police  about  the  plot 
which  was  made  against  the  third  prisoner,  and  of  which  he  was  oogninni 

The  last  witness  examined  was  R.  B.  Barton,  Esq.,  acting  senior  magis- 
trate of  police,  who  stated,  that  he  committed  the  case  for  trial  without 
taking  any  evidence  for  the  defence.  The  prisoners  were  represented  by 
their  counsel.  Keither  Luckmidass  Khimjee,  nor  anybody  eue,  disdosed 
to  him  any  plot  against  the  third  prisoner.  LuckmidsBs  Dharseywas 
treated  by  the  prosecution  as  a  hostile  witness  when  at  the  police  oflRoe. 

Mr.  MacuUocb,  the  leading  counsel  for  the  prosecutiou,  then  replied  at 
considerable  length.    He  contended  that  the  evidence  for  the  priaooen  had 


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Forgery  hy  the  Directors  of  a  Finance  Corporation.    1349 

totally  failed  to  support  the  case  for  the  defence ;  and  stated  tliat  the 
reason  n^hy  he  did  not  call  Luckmidaas  Dharsay  was  that  he  did  not 
belieye  a  word  of  his  evidence,  and,  consequently,  could  not  ask  the  jury 
to  believe  it.  All  the  evidence  as  to  the  filling  up  of  the  blank  forms 
had  been  brought  forward  by  the  prosecution ;  and  it  did  not  matter  when 
the  blank  forms  were  prepared.  Kef  erring  to  the  question  of  motive  on 
the  part  of  Toolseydass,  he  here  remarked  that  it  was  of  no  consequence 
what  his  motive  was.  And  why  did  the  counsel  for  the  defence,  after  having 
advanced  as  part  of  their  case  that  the  contracts  were  fraudulent  and  fic- 
titious agreements,  bring  forward  evidence  to  prove' that  they  were  hona 
fide  agreements  ?  The  learned  counsel  then  called  the  attention  of  the 
jury  to  the  case  for  the  prosecution  as  unaffected  by  the  evidcDoe  for  the 
defence,  and  dwelt  upon  the  different  points  at  some  length. 

His  lordship  afterwards  proceeded  to  sum  up  the  evidence,  and  in  doing 
so  read  the  depositions  of  the  different  witnesses  in  extenso  ;  interspersing 
them  with  frequent  comments  and  explanations  of  his  own.  He  first  went 
over  the  evidence  of  Mr.  Weatherhead,  Manockjee  Hormusjee,  and  Mr. 
Robert  Taylor,  and  afterwards  observed  that  the  jury  would  see,  that  if  any 
of  the  transactions  in  question  had  occurred  before  the  23rd  March,  they 
must  have  been  done  luiderhand  or  fraudulently,  and  that  was  one  great  stoj) 
gained  in  the  discovery  of  the  truth.  The  persons  who  ought  to  have  known 
of  them  were  kept  in  the  dark.  From  the  evidence  he  had  read,  they  saw 
the  position  of  affairs  down  to  a  period  later  than  that  when  those  six  con- 
tracts were  purported  to  have  been  written.  That  date  was  the  28th  Feb- 
ruary, and  they  would  see  that  down  to  some  time  after  that  the  corporation 
had  not  commenced  business.  The  chairman  was  ignorant  of  its  having 
commenced  business,  the  first  secretary  and  his  successor  were  also  ignorant; 
so  if  they  believed  that,  in  spite  of  all  this,  the  prisoners  and  their  associates 
had  been  purchasing  shares  at  that  time  imknown  to  those  whose  duty  it 
was  to  control  them,  that  alone  was  a  very  reprehensible  breach  of  trust 
and  was  a  point  gained  towards  the  elucidation  of  what  was  to  follow. 
After  referring  to  various  remarks  in  the  speeches  of  the  couusel  for  the 
defence,  his  lordship  said  he  must  inform  the  jury  that  accuracy  of  dates 
was  of  no  consequence  whatever  in  proving  an  allegation  of  crime.  A  man 
might  be  indicted  for  a  crime  of  murder  committed  on  the  1st  of  December, 
though  it  was  perfectly  well  supported  in  evidence  that,  it  was  done  on  the 
1st  of  November.  Therefore,  if  they  thought,  though  he  could  not  see  how 
they  could  come  to  that  opinion,  that  the  fabrication  of  those  agreements 
was  in  February  and  not  in  July,  their  verdict  must  still  be  the  same— a 
verdict  of  guilty — if  they  were  kept  back  for  the  purposes  for  which  they 
were  alleged  to  have  been  used.  His  lordship  then  proceeded  to  read  the 
evidence  consecutively,  omitting,  of  course,  what  he  had  read  already. 
In  going  through  the  deposition  of  Toolseydass  Dewjee,  liis  lordship 
remarked  that  amongst  all  the  minutes  of  the  corporation  there  was 
only  one  minute  referring  to  ijarticulars  of  agreements  made  in  the 
purchase  of  shares  by  the  corporation,  and  that  solitary  exception  was 
that  very  minute  of  the  18th  July.  Of  this  transaction  there  was 
no  previous  entry ;  there  was  no  allusion  to  it  to  be  found  in  any 
document  whatever,  or  in  any  subsequent  entry.  The  only  entry  re- 
ferring to  it  was  the  entry  which  was  impeached  as  fraudulent,  and  which 
formed  the  subject  of  the  last  five  counts  in  the  indictment.  Further  on^ 
his  lordship  alluded  to  the  remarks  by  counsel  in  regard  to  Luckmidass 
Dharsey,  observing  to  the  jury  thai  they  must  understand,  that,  when  a 
prisoner  was  brought  before  a  magistrate  he  was  not  upon  his  trial.  It  was 
merely  for  investigation,  and  it  was  the  duty  of  all  persons  oonoemed,who 
VOL.  XXV.  102 


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1350    Rryery  by  Oe  Diredtm  €f  m  Fmaee  CorporwHrn, 


facto  mi^it  be  inTcrtigmfcBd.  Acear^aaffy,  ibis  mm,  w1m>  ra  said  to  lisft 
writtea  thcBe  lavma  m  Tiay  pn^ari j  aeoi  for  !ij  Mr.  TWrtcw,  li  t^ 
iMtanee  of  Kr.  ClevdaDdy  tlie  gQfTccnBait  aolidtory  but  ke  was  tnaked 
fxom  fixai  to  lart  aa  a  hostile  wituflK  The  IflBEM  ~ 
for  the  eravn  ob  the  pRaent  oocanon,  had  one  doty  to  ] 
TBnuBent  aoiicitoT  who  made  the  ibti  itig  it  ii  m  for  it  ^ 
Mr.  Barton,  h^  quite  aBolher  dvty ;  and  it  vaiaa  right  £ar  Mr.  Clevtkad 
to  hring  Lodandaaa  hi£iire  the  nagiatraie  to  aae  vhai  he  voeld  ntf  ,  at  it 
iroold  hare  heea  wrong  for  thelriaimwl  eoimiri  for  the  proaecatioa  to  haw 
done  ao  in  thai  court.  Teaching  the  uniirf'uBi  aa  to  iriioae  iflit—  it  vs 
vho  vxote  the  agreenMata^hia  hxddi^aaid  it  waa  ior  the  jniy  to  eonaifa 
whether  the  man  whoae  mofatm  fhej  wae  gave  them  the  inBtmctm,  or 
the  man  whoae  mphtaa  thej  were  not.  H  tiiey  hdjered  Tiinilimiilan  it  wai 
Dyal's  mefataa  who  wrote  thorn  oot^  not  hf  Djal's  direction,  hat  hj  tint 
of  Tooiaeydam;  and  more,  thai  thai  wm not  the  first  time  this  waa  done. 
And  yet  Dyal'a  name  wm  to  the  minate  of  the  18lh  Jnly  which  diakinedj 
rof erred  to  thoae  wy  ^reeaaente.  He  left  it  to  the  jmj  whether  they 
shooki  beliere  a  syllaUe  of  this.  Aftar  reading  Toolaejdam'a  evidoie^ 
his  lonkhip  aaid  that  il  they  hdieved  it  aa  ii  stood,  m  the  eridcam 
of  an  aooQmj^ioe,  fhej  woohl  retam  bai  one  verdict,  and  thai  wm  a 
Teniict  of  gmlty  on  erory  one  of  the  coonts,  heranep  there  was  fo^goyy 
usiiig  teged  docomentB,  cuMpiiaqr  ^uad  nriminal  hreadi  of  invt.  All 
these  Crimea  had  heen  committed  if .  they  beiieved  thai  evidaaoe. 
Forgery,  he  informed  them,  ffswnstad  as  much  in  the  Uaficaiian  of  doen* 
meafci,  in  other  reqwcts  genaine,  aa  in  the  fihriratinn  of  an  entire  dDCii> 
ment.  Thas,  if  for  fraadolent  pmpoaea  a  man  fdsified  a  paper  in  his  owb 
handwriting  to  the  injary  of  another,  thai  was  forgery,  thosgh  it  w»  his 
own  signstore :  hot  it  was  mndi  more  ao  if  it  was  the  ngnniare  of  some 
onedse.  So  thsi  inaamach  aa  these  papera — erenif  signeJ,ashe*u^yus6d 
they  were,  by  the  peraons  whose  nsmcs  they  bore— coaiaiaed  fake  state- 
ments, false  nsmes,  false  rates^  falae  nambeis  of  aharea,  and  falae  traas- 
actions,  pot  in  for  the  veiy  parpoae  of  iajoiing  the  cocpMaiifm,  and 


benefitcipg  the  oonapuratcHS  ai  the  eipHnse  of  the  eorporatmn,  ii  i 

eerDamr^ 


much  a  forgery  aa  if  Dinahsw  Ardeaeer  Darnr  was  the  only  injared  : 
His  lordship,  referring  to  aoaae  remaxhs  which  had  fallca  fnxa  the  i 
for  the  def oice  to  the  effMi  thai  BinBhaw  had  probably  got  a  hint  from 
Toolaeydaas  to  make  his  eacape,  directed  the  attfutinn  of  the  jary  to  the 
eridenoe  of  constable  Jachaon,  to  see  whether  ii  was  proper  to  cast  sach  aa 
aqperskm  on  Toolseydan  who  had  eaoag^  aapendosL  to  bear  already.  Ha 
lordahip  lemaiked  that  Maim^jee  Honansjee  had  cleared  himseif  in  kis 
evidence  of  all  connection  with  this  disgraoefei  fraod ;  and  he  pointed  cot 
thai  his  evidence  and  thai  of  Toolaeydaas  folly  agreed^  and  hjMi  the  jary 
any  reaaosi  for  donbting  the  aeenracy  of  either  I  It  waa  for  them  to  my  if 
the  witnesam  who  were  called  to  contradict  Toolasydsss  had  oontiaficted 
him  ia  say  sin^e  partieolar.  Before  conciading,  his  krdship  raajohsd 
thai  the  doctriae  had  beea  faroaehed  thai  the  msa  idio  tnraed  tnoior  is 
thoae  who  trusted  him  was  a  doable  traitor.  Thai  was  a  aamstivas  doc 
triae.  It  was  the  daty  of  the  thief  to  betray  his  aocomplices.  liwasoths 
aniaaooeaioralaadableac^aadhe  vasno  good  citiaen  who  taag^  to 
tha  contrary. 

The  jary  retired  for  abovi  tveniy  ndnafeaB,  sad  letoraed  with  a  v«dkt 
of<«gniliy»agaiaaitheprmoiie»onall€CiBBiBof  tha  iadietassai,  hat  le^ 
commended  Calliaajee  Lndha  to  amrcy. 

His  hvddi9  ssntanead  ])^  Jayias  »d  Klniiow  Liidha  to  i 


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Legai  Miicellany.  1361 

tion  for  life;  and  eonfiscaied  their  morable  aad  immoTftble  property  to 
the  CTOWD.  Onllianjee  Ludha,  having  been  recommended  to  mercy,  wa» 
fimtenoed  to  four  years'  rigorous  impriaonment. 


THE  BnUimOHAM  FBNKT  BAKK. 

Mb.  Coiafis8iONX&  Sakdebs  delivered  judgment  at  the  Birmingham 
Bankruptcy  Court  on  the  15th  November,  in  the  matter  of  the  late  Bir- 
fwinghftjfn  Penny  Bank. 

He  said  the  application  before  the  court  was  one  on  the  part  of  James 
L.  Jc^mson,  Benjamin  Hawkes,  George  Barlow,  and  G^eorge  Wallingtoui 
for  their  orders  of  discharge,  under  the  110th  section  of  the  Bankruptcy 
Act  of  1861.    These  four  persons  were,  in  1852,  directors,  together  with 
several  other  individuals,  in  a  concern  or  speculation  called  the  Birmingham 
Penny  Bank.    The  other  individuals  were  Henry  Suckling,  Creorge  B. 
Haynes,  James  Grainger,  J.  Blake,  James  Macbride,  and  WilUam  Chorley. 
Henry  Suckling  had  quitted  Birmingham  ;  George  B.  Haynes  had  become 
bankrapt,  as  likewise  had  James  Grainger ;  no  particulars  appeared  as 
to  Blake,  and  Wm.  Ohorley  and  James  IMLaobride  retired  in  1858.     Other 
persons  of  greater  note  were  also  connected  with  the  penny  bank.    Mr. 
Scholefiield,  one  of  the  members  for  the  borough,  permitted  himself  to  be 
^vertised  as  president ;  Mr.  William  Chance,  jun.,  Mr.  T.  J.  Winfield,  Mr. 
Gkx>drick,  and  Mr.  Baldwin  lent  their  names,  and  attended  more  or  less 
to  the  affairs  of  this  so-calLed  bank.    As  to  how  this  bank  originated,  how 
its  affairs  were  conducted,  what  was  its  capital,  and  what  were  the  status 
and  means  of  the  directors — the  bankrupt,  George  Barlow,  stated  in  his 
evidence :  ^  A  few  persons  met  together  and  agreed  to  form  the  bank. 
I  think  it  was  Chorley  who  asked  me."    This  witness  and  director  was  a 
journeyman  ooachpainter.    He  confessed  that,  if  he  was  solvent,  he  had 
not  £20  over.    Of  the  other  directors  two  were  hairdressers,  and  had 
since  become  toy  dealers,  one  was  a  tailor,  and  there  was  certainly  no  reason 
to  believe  that  the  rest  were  of  higher  position  or  more  ample  means. 
With  these  men  as  directors  the  bank  commenced,  and  it  commenced 
avowedly  without  any  capital  whatever.  Delusive  and  hypocritical  adver- 
tisements, professing  great  interest  in  the  welfare  ctf  the  poor,  attracted  many 
depositors  to  the  bimk,  and  a  large  sum  was  drawn  from  the  pockets  of  the 
thrifty  and  deserving  poor,  who  were  desirous  of  laying  something  up  for  a 
day  of  distress  or  for  their  surviving  families.   The  money  received  was  soon 
am>lied  by  the  directors  in  advancing  loans  to  themselves,  in  paying  them- 
selves salaries,  and  in  establishing  new  and  speculative  companies,  off  which 
they  were  to  be  directors.  No  balance-sheet  of  the  general  affairs  of  the  bank 
was  made  out  for  many  years.     No  audits  were  made  except  occasionally 
hj  the  directors  themselves,  and  the  manager  took  what  money  he  pleased 
for  current  expenses,  without  control  or  investigation  bv  the  directors. 
Under  these  circumstances  it  was  not  to  be  wcmdered  at  that  the  oonoem 
closed  in  bankruptcy,  nor  that  the  loss  sustained  by  the  poor  and  deceived 
depositors  was,  and  eventually  would  be,  so  great.    That  something  was 
wrong  either  in  the  management  or  oonstitution  of  the  bank — ^probably  in 
both — ^must  soon  have  be^me  matter  of  suspicion  to  Mr.  8oholefield,M.P., 
for  the  bank  being  started  in  1850,  he  resigned  his  post  as  president  in 


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1352  Legal  Miscellany. 

1852,  having  first  consulted  an  aooountant,  who  reported  thai  the  bank 
waa  not  safe.  There  cocQd  be  no  doubt  that  Mr.  Sdiolefield  wia  well 
advised  in  resigning.'  But  one  wonld  have  hoped  that  the  benerolenoe 
which  i)rompted  him  to  accept  the  office  for  the  benefit  of  the  poor  would 
have  led  him  to  forewarn  them  of  their  danger  by  publicly  announcing  hL< 
resignation.  In  this  he  failed,  and  the  impression  that  he  was  still  presi- 
dent  continued  to  give  effect  to  the  delusions  practised  upon  the  public. 
In  like  manner  the  vice-president  and  trustees  one  by  one  resigned,  and  in 
like  manner  they  left  the  public  in  ignorance  of  their  having  done  so.  Every 
circumstance,  therefore,  connected  with  this  bank  was  matter  of  indigna- 
tion or  regret  —indignation  for  the  gross  firauds  practised,  and  regret  at 
the  indifference  and  want  of  pity  shown  by  the  president  and  offios^  o£ 
the  bank  to  the  saving  poor,  who  suspected  nothing  wrong.  But  the  caae 
had  been  taken  out  of  court  by  the  assignees  under  the  110th  section  d 
the  act  of  1861,  there  being  no  hope  in  their  minds  of  enforcing  a  remedy 
against  any  other  parties  to  the  ft'aud  than  the  present  bankrapts ;  and 
they  did  not  desire  the  punishment  of  the  latter,  being  content^  in  conse- 
quence of  an  arrangement  made  with  them,  to  accept  their  accounts  a« 
satisfactory.  If  it  were  really  true  that  no  remedy  could  be  found  against 
the  other  parties,  or  if  the  remedy  when  found,  would  be  too  expensive  to 
be  attempted,  he  could  only  say  that  it  was  a  matter  ffrievonsly  to  be 
regretted.  But  that  court  had  no  further  control  or  discretion  in  the 
administration  of  the  assets  of  the  bankrupts.  With  respect  to  the  cod- 
duct  of  the  bankrupts,  a  late  decision  of  the  Lord  Chancellor  Cranworth 
showed  that  the  court  had  power  to  inquire  into  the  question  of  conduct 
before  granting  the  discharge  applied  for  under  the  110th  section.  The 
court  might  well  exercise  this  jurisdiction  when  called  upon  to  discharge 
the  present  bankrupts.  But  he  could  not  help  feeling  that  it  would  not 
bo  just  to  punish  them  when  other  parties  in  this  bank,  whose  offences 
were  equally  grievous,  escaped  punishment.  The  bankrupts  should,  there- 
fore, be  discharged. 

The  liabilities  of  the  late  Birmingham  Penny  Bank  were  £9,448.    The 
a.ssets  were  between  £3,000  and  £4,000. 


THE  LEEDS  BANKING   COMPANY. — PRANGe's   CLAIM. 

This  case  was  decided  in  the  Court  of  Chancery  on  the  14th  November, 
by  Vice-Chanoellor  Kindersley. 

He  said  this  was  an  adjourned  summons  arising  out  of  a  claim  under 
the  winding-up  of  the  Leeds  Banking  Company  by  Messrs.  Prange  u»  be 
admitted  as  a  creditor  in  respect  of  two  bills  of  exchange,  one  for  £^) 
and  the  other  for  £564,  and  of  which  they  are  the  holders,  and  of  which 
the  banking  company  were  the  endorsers.  The  claim  was  resisted  by  the 
official  liquidator  on  the  ground  that  sufficient  notice  was  not  g^iven  of  the 
dishonour  of  the  bills,  while  on  the  part  of  Messrs.  Prange  it  was  con- 
tended that  what  took  place  was  a  sufficient  notice  under  the  circumstances. 
The  first  bill  was  for  £564  at  three  months,  dated  the  4th  of  August,  1S<>4, 
drawn  by  Watts  and  Co.  upon  Eai*ly  and  Smith.  It  was  endorsed  by 
several  persons,  and  among  others  by  the  Leeds  Banking  Company,  ii: 
these  words,  "  In  need  at  Smith,  Payne,  and  Smith's,  London,''  who  were 
the  London  agents  of  the  Leeds  Banking  Company.  When  the  bill  fell 
due  it  was  presented  to  the  London  and  County  Bank,  which  was  the  bant 
referred  to  by  the  acceptor,  and  dishonoured.    On  the  ^ame  day  it  was 


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Legal  MUcellany.  1353 

presented  at  Messrs.  Smith,  Payne,  and  Smith's,  and,  as  the  Leeds  Bank- 
ing Company  was  then  under  vinding-np,of  conrse  it  was  refused  payment 
there  also.  It  was  continued  on  the  part  of  Messrs.  Prange  that  the  pre- 
sentation of  the  bill  to  Messrs.  Smim,  Payne,  and  Smith  was  a  sufficient 
notification  to  them,  and  therefore  to  the  Leeds  Banking  Company,  that 
the  bill  had  been  dishonoured.  There  was  no  other  notitication.  It  was 
said  that  where  a  bill  was  refused  pajrment  at  the  bank  indicated  by  the 
acceptor  it  was  not  necessary  for  the  holder  of  the  bill  to  give  notice  to 
the  acceptor  that  the  bank  he  had  indicated  had  not  paid  the  bill,  and  that 
there  was  an  analogy  between  this  caste  and  that.  But  in  this  case  the 
analogy  failed  Then  came  the  question  whether  Messrs.  Smith,  Payne, 
and  Smith  were  agents  of  the  acceptor.  The  endorsement  was  "  in  need,'' 
meaning  in  case  of  need,  and  that  if  the  holder  had  occasion  to  apply  to 
the  endorser  for  payment  he  might  apply  to  Smith,  Payne,  and  Smith.  The 
endorser  merely  ]X)inted  out  a  place  to  which  the  holder  might  refer  for 
payment  if  he  liked.  But  Smith,  Payne  and  Smith  were  agents  merely 
for  the  purpose  of  obtaining  payment — not  for  the  purpose  of  receiving 
notice  of  dishonour ;  therefore,  it  appeared  to  him  impossible  to  hold — 
because  the  bill  was  presented  to  Smith,  Payne,  and  Smith,  and  payment 
was  refused  by  them,  that  there  was  implied  notice  to  the  acceptor  that 
the  bill  had  been  dishonoured.  In  other  words.  Smith,  Payne  and  Smith 
were  not  by  the  words  of  the  endorsement  constituted  the  agents  of  the 
acceptor  so  as  to  make  refusal  of  payment  by  those  bankers  notice  of  dis- 
honour to  the  acceptor.  Another  contention  was  that  the  i)resentation  of 
the  bill  to  Smith,  Payne  and  Smith,  was  an  implied  notice  to  them  that 
the  bank  indicated  by  the  acceptor  had  refused  payment ;  but  on  that 
point  also  he  thought  the  contention  failed.  On  these  grounds  it  appeared 
to  him  that  what  had  taken  place  did  not  amount  to  a  sufficient  notification 
to  the  acceptor  of  the  dishonour  of  the  bill.  With  regard  to  the  second 
bill  there  was  actual  notice,  but  the  question  was  whether  the  notice  was 
given  in  sufficient  time.  The  bill  fell  due  on  the  13th,  but  that  being 
Sxmday,  it  was  presented  to  the  London  and  County  Bank  on  the  12th, 
and  refused  payment  by  them.  On  the  14th  it  was  presented  to  Messrs. 
Smith,  Payne  and  Smith's,  and  also  refused  payment  by  them.  On  the  same 
day  Messrs.  Pranges'  agents  wrote  to  them  informing  them  of  the  dishonour. 
They  received  the  information  on  the  15th,  and  wrote  to  the  official  liqui- 
dator on  the  16th,  who  received  the  letter  in  due  course  on  the  17th.  It 
was  alleged  that  a  day  might  be  taken  for  each  step  in  the  transaction.  It 
really  came  to  this,  whether  a  day  should  be  taken  up  in  communication 
from  the  agent  to  the  principal  in  addition  to  the  day  allowed  for  commu- 
nicating with  the  acceptor.  It  appeared  to  him  that  no  such  day  was 
allowed,  and  the  consequence  was  that  there  was  a  failure  of  one  day  in 
giving  notice  to  the  official  liquidator,  and  so  the  claim  could  not  be  allowed. 
It  was  a  proper  case  to  bring  before  the  court,  and  the  official  liquidator 
must  have  his  costs  out  of  the  assets  of  the  company. 


THE  BAK&  OF  QIBBALTA&  AND  MALTA  WnmiKO  UP. 

This  case  was  argued  in  the  Court  of  Chancery,  before  the  Lords  Justices 
of  Appeal,  on  the  17th  November. 

It  was  an  appeal  from  a  decision  of  the  Master  of  the  Bolls  npon  a 
petition  by  four  of  the  contributors  to  the  liabilities  of  the  above  company, 
to  have  the  company's  affairs  wound  up  by  a  compulsory  order  from  the 
court,  or,  at  any  rate,  under  the  supervision  of  the  court.     The  applica- 


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1354  Legal  Mueellany. 

tion  WM  based  upon  the  ISdth  and  165th  seetioiis  of  the  2Stli  and  2Gth  of 
y iotoriAi  cap.  89f  whidi  girea  the  coxirt  power  to  call  the  public  liquidatoxa 
of  a  public  company  to  account  when  ezerdaing  their  powers  under  a 
▼oluntaiy  winding-up  order,  as  in  the  present  case.  The  object  of  the 
application  appeared  to  be  to  inpuf;n  the  liquidators'  conduct  in  refeieooe 
to  a  sum  of  about  £1,700  allowed  in  respect  of  the  original  promotioa  of 
the  company,  and  earoenses  connected  therewith.  The  SCaster  of  the  Bolls 
declined  to  grant  the  relief  souj^t,  on  the  ground  that  the  petitioDen' 
remedy  for  the  alleged  grieyance  complained  S  was  by  bill  for  an  aoGOunt 
in  the  regular  way. 

Mr.  Jessel  and  Mr.  Holmes  were  for  the  i^[>peal ;  Mr.  Baggallay,  Mr. 
Southsate,  Mr.  John  Pearson,  and  Mr.  Fischer  for  the  respondnitB. 

Lord  Justice  Turner,  after  briefly  alluding  to  the  facta,  said  that  the 
appellants  were  a  minorii^  of  the  entire  body  of  shaieholders,  that  Uie 
company  was  nearly  wound  up,  and  that  little  or  nothing  remained  to  be 
done  but  to  distribute  the  funds  in  hand.  As  it  appealed  to  him,  there 
were  three  questions  to  consider — ^first,  whether  the  company  ought  to  be 
wound  up  oompulsorily  by  the  court ;  secondly,  whether  it  ooght  to  be 
wound  up  under  the  supervision  of  the  court ;  and,  thirdly,  whether  any 
order  ought  to  be  made  upon  that  part  of  the  prayer  which  was  directed 
especially  against  the  acts  and  alleged  breaches  of  trust  of  the  officers  and 
directors.  The  appellants  did  not  desire  a  compulsory  order  if  they  could 
obtain  a  superrisional  orden  and  the  question  was  whether  th^^  were 
entitled  to  such  an  order.  Upon  that  point,  therefore,  he  thought  that 
the  147th  section  left  it  absolutely  to  tiie  discretiou  of  th»  court  whether 
such  an  order  should  be  made  or  not ;  and  nowhere,  as  far  as  he  conld 
find  in  the  Act,  was  there  any  definition  of  the  circumstanoea  under  whidi 
the  legislature  considered  such  an  order  proper.  In  this  instance  the 
case  rested  upon  the  alleged  breaches  of  trusty  but  he  thought  that  these 
might  be  reached,  if  not  by  the  165th,  at  all  events  by  the  138th  sectaon, 
and  therefore  these  charges  afforded  no  ground  for  such  an  order.  Hh^ 
legislature  obviously  intended  that  the  wishes  of  the  majority  of  the 
shareholders  should  be  regpftrded,  and  the  evidence  showed  no  such  wish  en 
the  part  of  the  majority,  but  raUier  the  contrary.  As  to  a  compolsaiy 
winding  up,  he  thought  also  that  it  was  properly  dismissed,  because,  among 
other  reasons,  there  bad  been  a  resolution  of  uie  company  for  a  yoluntsij 
winding  up,  and  he  must  hold  that  the  appellants,  who  were  themsdves 
contributories.  were  bound  by  that  resolution.  As  to  the  charges  agaiasi 
the  directors,  he  agreed  with  the  Master  of  the  BoUs  that  they  would  be 
more  effectually  tried  by  bill  than  bv  the  aummary  Torisdiction  of  the 
court,  and  if  the  appellanta  intended  to  prosecute  these  charges  they 
should  institute  a  smt.  The  court  ahould,  however,  grant  them  eveiy 
facility,  and  should  therefore  allow  them  to  uae  the  name  of  the  oompaay 
as  plaintiffs  upon  their  indemnifying  them  against  the  costs.  But  as  the 
Mastd):  of  the  Rolls  had  ezpreased  his  willingness  to  make  an  order  to 
this  effect,  which  the  appellants  did  not  accept,  this  variation  of  the  order 
would  make  no  differenoe  as  to  the  costs  of  tne  i^peal,  which  must  be  paid 
by  Mr.  Jessel's  clients. 

Lord  Justice  Kni^  Bmee  said  thai,  with  great  defereuDe  to  the  Master 
of  the  BoUs,  he  agreed  with  his  learned  brother  that  the  petition  afaodd 
not  be  wholly  dismissed.  As  to  the  partiodar  order  to  be  substituted  for 
it,  he  had  felt  some  diflknlty,  but  on  the  whole  he  thou|^  that  he  miigiit, 
consistently  with  his  duty,  agree  in  the  order  of  the  Lord  Justioe  in  all 


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^B  THB  LEEIDS  BANKING  COMPANT,  EX  FABTB   ADDINELL.      8AMX,   KX  TAMTE 
DOBSON.      SAXE,  BX  FA&TB  FEABNSIDE  AND  DSANE. 

Thksb  causes  were  heard  in  the  Court  of  Chancery  by  Yioe-Chanoellor 
Sir  R.  T.  Kinderaley  on  the  17th  November. 

These  were  adjourned  sanunonses  on  the  question  whether  the  above 
parties  were  severally  liable  to  be  put  on  the  list  of  contributories  in  the 
winding-up  of  this  company.  Inasmuch  as  the  same  facts  appUed  to  each, 
so  far  as  the  company  were  ooncemed,  varied  only  by  the  diftereut  position 
of  the  parties,  all  the  summonses  were  heard  successively,  and  his  Honour 
expressed  his  opinion  on  them  all  at  the  conclusion  of  the  arguments.  It 
will  be  recollected  that  this  company  having  carried  on  business  for  many 
yetfuTB,  and  having  a  certain  number  of  unissued  shares  in  reserve,  deter, 
mined,  in  June,  1864,  to  issue  these  to  their  then  present  shareholders  in 
the  proportion  of  one  to  each  five  of  their  shares,  and  a  circular  was  sent 
by  their  manager,  Mr.  Greenland,  to  the  effect  that  tiie  directors  being  of 
opinion  that  it  was  desirable  to  issue  the  reserved  shares,  directed  liim  to 
offer  one  share  in  respect  of  every  five  held  by  the  shareholder,  and  there 
was  a  request  that  the  recipient  should  sign  in  return  an  enclosed  form, 
stating  whether  he  was  desirous  to  take  up  the  shares  or  wished  to  have 
any  more  allotted.  If  taken  up  the  amount  must  be  paid  on  or  before  the 
1st  of  October  then  next,  or  the  shares  to  be  forfeited ;  if  paid  before  that 
time  £5  per  cent,  interest  would  be  paid  on  the  shares.  On  the  4th  of  July 
Mr.  Addinell  (to  whom  one  of  these  circulars  was  sent)  returned  for  answer 
that  he  agreed  to  take  four  shares,  being  his  proportion  of  the  allotment 
and  bis  proportion  of  shares  in  addition  if  he  could  have  them  on 
the  terms  stated  in  the  circular.  On  the  18th  of  July,  Mr.  Greenland 
wrote  to  Mr.  Addinell  stating  that  the  directors  had  allotted  to  him  f our 
additional  shares  for  which  he  had  applied,  at  £30  per  share,  in  addition 
to  the  first  four,  making  the  number  of  new  shares  eight ;  that  the  direc- 
tors, in  consequence  of  the  very  numerous  applications,  were  unable  to 
allot  any  larger  number ;  and  then  came  the  condition  of  forfeiture  in  case 
the  amount  was  not  paid  before  the  1st  of  October,  with  £5  per  cent,  on 
an  earlier  payment.  The  money  was  not  paid,  and,  as  is  well  known,  the 
company  failed  before  the  1st  of  October,  1864,  and  was  ordered  to  be 
wound  up,  and  the  question  now  arose  whether  the  above  correspondence 
oonstituted  a  contract  so  as  to  make  Mr.  Addinell  liable.  It  was  contended 
£or  the  official  liquidator  that  there  was  such  a  contract;  for  Mr.  Addi- 
nell that  there  was  not. 

With  respect  to  the  second  case,  it  stood  in  this  way : — Mr.  Joseph 
Dobson  was  a  holder  in  the  company  of  five  shares,  and  he  died  in  1846. 
Under  the  same  circumBtances  as  in  Mr.  Addinell's  case,  one  of  his  executors, 
Mr.  Dobeon,  applied  for  and  had  one  share  allotted  to  him,  in  respect  of 
five  shares  and  oae  additional  ahare,  but  Mr.  Thacker,  his  co-executor, 
did  not  concur.  It  happened  that  the  entries  in  respect  of  these  shares 
were  made  as  the  executor  of  the  testator,  and  that  there  was  a  receipt  for 
the  money  which  was  paid  to  him  as  executor.  As  to  the  case  of  Feam- 
side  and  Deane,  this  was  also  a  case  of  execuiorB — the  testator,  Mr. 
Bdward  Feamoide,  who  died  in  1860,  leaving  Mrs.  Sarah  Feamside  and 
Mr.  Deane  executrix  and  executor,  and  being  the  holder,  at  his  death,  of 
ten  shares,  in  respect  of  which,  under  precisely  the  same  circumstances  aa 
the  last,  two  shares  were  allotted  to  the  executrix  and  executor,  the  only 
difference  between  this  and  Dobeon's  case  being  that  both  representatiTeB 
api^ied. 


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1866  Banking  and  Commcreial  Laic. 

Mr.  Glasse  and  Mr.  Goiton  appeared  for  the  official  liqnidakor ;  Mr. 
Bailey  and  Mr.  Wickens  for  the  suteged  contributors. 

The  Vice-Chanodlor  now  referred  minntely  to  the  circnmstances  of  each 
case,  and  waa  of  opinion  that  Mr.  Addinell  was  only  liable  to  be  pnt  upon 
the  list  for  four  rdiarea,  inasmuch  as  with  regard  to  the  additional  shares 
there  had  been  no  oommimication  by  him  after  the  circular  referring  to  Uie 
forfeiture  on  non-payment.  As  to  Richard  Bobson  there  was  no  doubt 
that  the  company  had  dealt  with  him  as  executor,  and  if  he  was  liable  at 
all  it  was  in  that  character,  but  inasmuch  as  Mr.  Thacker  did  not  join  with 
him,  and  one  executor  could  not  be  placed  upon  the  list  without  the  otiNr, 
there  was  no  liability  to  be  placed  upon  the  list  at  all  in  this  case.  With 
respect  to  the  Feamsides'  case  the  same  observation  applied  as  to  the  last, 
but  a  fortiori ;  but  inasmuch  as  both  representatives  had  joined  in  the 
application  they  must  both  be  put  upon  the  list,  but  only  in  their  diaracters 
of  executrix  and  executor.  It  was  evident  that  the  intention  of  the  com- 
j)ftny  was  to  deal  with  them  as  executors. 


§anhmg  anb  Commertml  l^ato. 

NOTES  ON  JOINT  STOCK  COMPANIES. 
By  RoBT.  Akthur  Wakd,  Solicitor. 
Though  there  is  no  necessary  connection  betwecm  a  shilling 
pamphlet  on  joint-stock  companies  and  the  principles  of  com- 
mercial law,  the  contents  of  this  publication  induce  as  to  place 
it  under  this  particular  heading.  Thirteen  years  ago  the  author 
published  a  treatise  on  investments  generally^  in  which  he  dis- 
cussed the  respective  merits  of  such  modes  of  getting  an  income 
cut  of  capital,  without  personal  exertion,  as  were  then  in  favour. 
In  his  remarks  on  the  subject  of  investment  generally,  he,  to 
some  extent,  forecast  the  effect  of  the  Australian  gold  discoveries, 
and  expressed  his  belief  that  a  rise  in  the  price  of  almost  everv 
commodity  would  constrain  the  owners  of  realized  capital  to  seek 
for  some  more  profitable  way  of  using  their  money  than  was 
ofiered  by  stock  in  the  funds,  and  purchases  of,  or  mortgages 
upon,  real  property  in  the  United  kingdom.  Without  inquir- 
ing whether  Mr.  Ward  is  entitled,  on  tms  account,  to  be  ranked 
with  the  prophets  of  finance,  we  may  at  once  admit  that  his  an- 
ticipations have,  to  a  great  extent,  been  realized  by  the  progress  of 
events,  and  that  the  action  of  the  legislature  has  tended  greatly  to 
accelerate  a  movement  which  these  drcumstanoes  had  originated. 
Auriferous  discoveries  and  the  Limited  Liability  Act  have 
unitedly  wrought  wonders.  The  lengthening  lists  of  U2&dertsk- 
ings  brought  out  by  promoters,  and  quoted  on  the  Stock  Ex- 
change, bear  testimony  to  the  extent  of  the  change  which  is  now 
passing  over  the  habits  of  commercial  England :  and  Mr,  Ward's 


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Banking  and  Comfnercial  Law.  1857 

pamphlet  derives  its  value  from  the  accuracy  with  which  it  in- 
dicates the  features  of  sundry  important  classes  of  recently  intro- 
duced undertakings^  and  the  legal  responsibilities  incurred  by 
the  constantly  augmenting  class  of  joint-stock  shareholders.  As 
was  to  be  expected,  a  large  portion  of  Mr.  Ward's  "notes"  con- 
sists of  safe  generalities.  A  Mentor,  who  endeavours  to  make 
safe  and  simple  the  difficult  task  of  getting  a  high  rate  of  interest 
without  perilling  the  principal,  must  begin  by  laying  down  a 
number  of  rules  to  which  every  one  will  assent,  but  which  very 
few  know  how  to  apply.  No  doubt  people  ought  to  consider 
well  beforehand  the  result  of  applying  for  shares,  and  to  watch 
with  interest  the  operations  of  the  companies  in  which  they  put 
their  money ;  to  stop  them  in  doubtful  courses,  if  they  have  the 
power  to  do  so,  and  to  sell  out  of  any  concern  when  they  find  it 
is  going  down  hill.  And,  given  that  a  company  is  safe,  no  doubt 
prudent  persons  may  wiselv  invest  in  it  ;  granted  that  many 
companies  are  got  up  solely  for  their  promoters'  benefit,  and 
that  others,  from  some  cause  or  other,  miscarry,  it  is  equally 
clear  that  every  one  who  wants  to  keep  his  money  must  avoid 
holding  shares  in  these  undesirable  undertakings.  Still  we  seem 
to  have  heard  all  this  before,  and  though  we  do  not  know  that 
the  publication  of  such  platitudes  can  do  much  harm,  we  arc  quite 
sure  they  will  not  do  any  one  any  good.  To  do  Mr.  Ward 
justice,  he  seems  conscious  of  this  when  he  recommends  intend- 
ing investors  to  apply  for  advice  to  some  solicitor  who  has  made 
company  law  and  practice  his  specialty;  who  can  speak  his 
mind  under  the  shelter  of  professional  confidence,  and  whose 
bona  fides  are  secured,  both  by  his  own  interest  and  by  the 
sanctions  of  professional  supervision. 

But  we  should  be  doing  Mr,  Ward  an  injustice  did  we  lead 
our  readers  to  suppose  that  his  pamphlet  contains  nothing  more 
valuable  than  general  counsels  and  a  particular  recommendation 
to  consult  a  solicitor.  On  the  contrary,  he  makes  many  sugges- 
tions upon  which  every  shareholder  ought  to  act,  but  which 
experience  teaches  us,  all  but  a  very  small  minority  will  heartily 
approve  in  theory,  and  utterly  ignore  in  practice.  The  four 
essentials  of  success,  our  author  tells  us,  are — a  good  scheme, 
a  seasonable  time,  sufficient  capital,  and  efficient  management. 
In  common  with  every  practical  man  of  business,  he  holds  the 
belief  that  only  when  a  trade  is  too  large  for  individual  manage- 
ment, is  it  a  proper  subject  for  joint-stock  enterprise,  and  his 
suggestions  as  to  the  best  mode  of  remxmerating  promoters, 
managers,  and  officials,  are  well  worth  the  attention  of  any 
who  have  to  consider  these  questions.  On  the  means  recom- 
mended for  testing  the  bona  fides  of  a  new  scheme,  the  scrutiny 


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1358  BmMng  md  OommureM  Law. 

of  the  list  of  ongimil  sobsGriben,  the  carefiil  peninl  of  the 
articles  of  asaociatiaii,  he  gives  advioe  which  ought  always  to 
be  followed,  but  which  is  certain  to  be  neglected.  In  like 
manner  the  interrogatories  he  proposes  for  tl^  Ayamjuotw"  of 
secretary  and  promoter  would  be  rery  valaable  if  one  could 
oidy  be  sure  of  getting  them  correctly  answerejl,  for,  as  he 
ratner  naively  says,  such  answers,  '^  if  truly  ffivm^  will  throir 
much  light  upon  the  bona  fide%  of  the  company."  But  subject 
even  to  this  important  quidification,  the  very  £ftct  of  having  the 
need  for  inquiry  on  the  details  of  the  company's  get-up  brou^t 
clearly  before  me  public  mind,  will  probably  do  much  to  check 
the  blind  confidence  by  which  designing  projectors  pnifit  and 
impetuous  shareholders  suffer. 

The  greater,  and  we  may  add,  the  most  useful  part  of  Mr. 
Ward's  notes,  is  occupied  with  a  brief  resume  of  the  law  <^ 
joint-stock  companies.  Of  course,  it  is  not  posaiUe  in  a  few 
pages  to  indicate  every  point  that  may  arise,  or  even  to  mention 
every  dedsicm  that  has  be^i  given.  But  though  informatsoD 
in  detail[was  not  to  be  expected,  the  non-professional  reader  will 
be  glad  to  have  company  law  in  outline.  As  in  oUier  portions 
of  the  lawyers'  territory,  the  turnings  and  involutions,  the 
debatable  land  and  the  uncertain  boundaries  are  so  numenxu, 
that  even  the  most  skilful  and  experienced  guides  may  sometimes 
err.  But  it  is,  nevertheless,  trae  that  the  main  features,  the 
high  roads,  the  common  patJu,  are  easy  bdh  to  learn  and  ti> 
remember ;  or,  dropping  metaphor,  we  may  say  that  the  leading 
rules  on  which  our  courts  act  are  perfectly  intelligible  and 
reasonable,  and  it  is  only  in  the  particular  application  of  them, 
in  determining  whether  an  individual  set  of  circumstances  falls 
within  or  without  a  certain  class,  that  anv  difficulty  or  confusicai 
is  likely  to  arise.  Mr.  Ward  has  done  this  unportant  portion  of  his 
work  very  well,  and  has  wisely  abstained  fiom  attempting  to 
makeevery  man  his  own  lawyer.  But  we  think  his  selection  of 
cases  is  not  always  the  happiest.  The  power  of  a  shareholder 
to  transfer  his  shares  for  the  sole  purpose  of  eecapiug  his  liabilitT, 
was  affirmed  in  the  case  of  ex  parte  Rudolph  (32,  L.  J.  Q.  B.  269), 
a  decision  more  recent,  and  more  important  than  the  Irish  case 
cited  at  page  15.  When  writing  about  preferenoe  shares,  i( 
would  have  been  as  well  to  refer  to  the  test  of  the  r^ht  of  the 
holders  of  such  shares  to  arrears  of  dividend,  furnished  by  tibe 
decision  of  tiie  Lords  Justices  in  Sturge  v.  Eastern  Union  JSaH- 
way  Co.  (7  D.  O.  M.  &  Qc.  158) ;  Henry  v.  (?r^  Northern 
Railway  Co.  (27  L.  J.  Ck  1, 1  D.  G.  &  J.  606);  and  though 
the  caution  to  debenture  holders  is  wise  and  well-timed,  it  is 
not  quite  correct  to  say  tiiat  Ujoyd^B  bonds  stand  on  a  di&rent 


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Banking  and  Commercial  Late.  1359 

footing  to  securities  given  to  raise  money  in  excess  of  a  com- 
pany's borrowing  powers^  inasmuch  as  the  decision  in  Chambers 
T.  Manchester  Sf  Milford  Bailway  Co.  (10  Jur.  (N.  S.)  700; 
33  L.  J.  Q.  B.  268;  12  W.  R.  980, 10  L.  S.  N.  S,  715),  invaK- 
dated  some  of  these  very  bonds,  the  court  holding  that  though 
*they  might  be  lawfully  given  to  secure  ^yment  for  work,  they 
could  not  be  used  as  instruments  for  raismg  money.  There  is 
a  similar  obscurity  in  the  statement  of  the  case  of  Maddich 
V.  Marshall  (10  Jur,  N.  8. 1201;  13  W.  R.  205),  and  it  would 
have  added  to  the  value  of  the  '^  notes  '^  if  the  annotator  had  said 
something  about  the  acts  by  which  forfeiture  may  be  incurred, 
and  the  cases  in  which  it  may  be  advisable,  on  the  principle  of 
throwing  overboard  the  cargo,  that  the  ship  may  ride  through  ' 
the  storm.  However,  we  observe  that  Mr.  Ward  is  contem- 
plating a  new  edition  of  his  book  on  investments,  and  in  that, 
probably,  these  omissicns  may  be  supplied.  At  the  same  time, 
also,  it  would  be  well  to  devote  additional  attention  to  the  risks, 
duties,  and  liabilities  of  directors,  secretaries  and  other  officers. 
The  cases  of  8cM  v.  Dixmi  (29  L.  J.  Ex.  62.  N.,  ex  parte  Nicol, 
28  L.  J.  Oh.  267) ;  Cullen  v.  Thomsm  (€  L.  T.  N.  8.  870),  and 
a  host  of  others,  not  to  mention  such  unpleasant  matters  as 
the  prosecution  of  Humphrey  Brown  and  his  colleague,  are 
replete  with  salutary  warnings  to  any  well-meaning  gentleman 
who  may  be  too  r^y  to  assume  directorial  responsibilities  or 
too  anxious  to  pocket  directorial  fees. 

Mr.  Ward's  estimate  of  the  relative  excellencies  of  diflferent 
classes  of  companies  is  correct,  and,  in  the  main,  encouraging. 
For  various  reasons,  he  doubts  whether  shares  in  the  older  joint- 
stock  banks  will  maintain  their  high  ]premiums,  ^^et  he  thinks 
ihe  field  for  banking,  as  well  as  for  life  and  fire  insurance,  is, 
at  present,  too  well  occupied  to  leave  new  ventures  a  chance. 
Discount  corporations  seem  the  least  lucky  of  money  dealing; 
iron  work  companies  of  commercial  joint-stock  organizations. 
Like  many  other  men,  he  speaks  of  the  wondrous  dividends  paid 
by  financial  associations  with  surprise,  but  thinks  them  too 
risky  to  recommend.  How  far  this  is  a  correct  or  an  over- 
cautious estimate  must,  of  course,  remain  a  problem  for  some 
time  longer.  Without  in  every  instance  endorsing  Mr.  Ward's 
views,  we  have  said  enough  to  show  that  these  ''  iN^otes  on  Joint 
Stodk  Companies  "  are  well  wortib  perusal,  and  that  they  contain 
much  matter  which  shareholders,  actual  and  potential,  would 
do  well  to  bear  in  mind. 


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1360 


BANK  OF  BOLTON. 

Thb  aimual  general  meeimg  was  held  at  the  Bank,  on  Friday,  the  25th 
September.  The  chair  was  occapied  by  Mr.  Peter  Martin,  of  Riyington, 
J.P.,  diairman  of  the  board  of  directon.  The  other  directors  present  were 
Mr.  Thomaa  Barnes.  M J?.,  Mr.  John  Orton,  J.P,,  Mr.  John  Cannon,  J.P-, 
and  Mr.  Wm.  Haalam,  of  Lever  Grange.  Amongst  the  shareholders 
present  were  the  mayor  (Biohard  Stockdale,  Esq.),  Alderman  J.  K. 
Wolfenden,  Mr.  Bobert  Wenden,  and  other  gentlemen  of  position  ani 
,  influence  in  the  town  and  neighbourhood.  The  report  of  the  directc^rs 
'  was  read  by  Mr.  Fergusson,  the  manager,  and  gave  a  very  faronraUe 
aocount  of  the  position  and  business  of  the  bank.  The  losses  for  the  yeax 
were  amply  provided  for,  the  usual  dividend  of  10  per  cent,  for  the  year 
was  declared,  and  a  bonus  of  lOs.  per  share  was  sulded  to  the  paid-up 
capital,  making,  each  share  £L2.  10s,  paid  up,  and  raising  the  paid-up 
capital  to  £125,000.  The  guarantee  fund  was  stated  now  to  amount  to 
£38,887.  The  result  to  the  shareholders  for  the  year  is  £14.  3<.  4d.  fh?e 
of  income-tax.  Cordial  votes  of  thanks  were  given  to  the  chairman  and 
directors,  to  the  manager,  and  other  officers  of  the  bank,  and  the  sum 
of  £500  was  placed  at  the  disposal  of  the  board  for  the  vtduable  serrices 
rendered  to  the  bank  by  the  directors  for  many  years. 


LONDON  AND  SOUTH  AFBICAN  BANK- 

Thb  ordinary  half-yearly  meeting  was  held  on  the  1st  November,  at  the 
London  Tavern ;  Mr.  J.  B.  Thomson  in  the  chair. 

The  following  report  of  the  directors  was  read  by  Mr.  W.  M.  James, 
the*  manager : — **  The  directors  beg  to  submit  the  accounts  of  the  bank  for 
the  half-year  ending  the  30th  June  last,  showing  a  net  profit  cf 
£2^,920.  4a.  5d.— equal  to  the  rate  of  11|  ^eft  cent,  pes*  annum  on  the 
paid-up  capital.  The  accounts  thus  rendered  convev  a  faithful  stafcement 
of  the  transactions  of  the  bank  for  the  first  half  of  the  present  year ;  but 
towards  the  expiration  of  that  period  information  readied  the  directors 
from  different  points  within  their  sphere  of  action  in  South  Africa  that 
extensive  commercial  failures' had  taken  place,  and  that  others  were  appre- 
hended, whidi  might  entail  loss  upon  this  bank  in  common  with  oUier 
banking  establishments  in  those  colonies.  They  lost  no  time  in  despatch- 
ing  their  London  manager,  Mr.  James,  to  the  Cape,  with  full  power  to  pro- 
tect  the  interests  of  the  bank.  He  has  lately  returned,  ^ter  making  such 
arrangements  as  seemed  to  be  advisable  under  existing  drcumstances. 
Although  the  commerdid  crisis  in  South  Africa  has  not  entirely  passed 
away,  measures  have  been  Ukea  so  to  reduce  the  liabilitieB  of  this  bank 
as  its  directors  feel  satisfied  will  ensure  the  safety  of  the  capital.  Under 
these  circumstances  the  directors  think  it  their  duty  to  refrain  from 
declaring  the  usual  interim  parent  on  account  of  dividend,  while  they 
indulge  the  hope  that  it  may  be  in  their  power  to  render  a  mors  cheeiin; 
account  to  their  shareholders  at  the  conclusion  of  the  present  year." 


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London  and  South  African  Bank.  1361 

BTATEXEKT  OF  LIABILITIES  AND  A»8BT8. 
LIABILITIES. 

Dr, 

Capital  paid  up      

GrcuUtion,  notes,  and  bank  post  bills     

Deposits       

Bills  payable  and  other  liabilities    

Kesenred  fund 

Balance  of  profit  and  loss  acooant  (reserved  to  meet  antici- 
pated losses  by  bad  debts)         28,920    4    4 

£1,303,875  19    9 


£500,000 

0 

3 

32,507 

0 

6 

459,739 

5 

0 

264,528 

3 

4 

18.181 

6 

5 

Asstrr:?. 
Cr. 

Specie  on  hand  and  cash  balances £130,349    5    0 

Bank  premises,  fomituxe,  fittings,  and  other  property       ...  20,0G0    7    8 

Local  Dills  discounted,  Idlls  receivable,  government  and  other  • 

securities        1,151,858    1    4 

Preliminary  expenses— -Original  amount,  £8,041.  Of.  9(1 ;  less, 

deducted,  £6*433.  4f 1,008    5    9 

£1,303,875  19    9 


rRoriT  AND  LOSS  Accouirr. 
Br. 

Interest,  commission  and  exchange  paid       £10,690    2  10 

Charges  for  the  half-year,  including  rent,  taxes,  and  all 

other  expenses  at  head  office  and  branches 12,710    0    3 

Rebate  on  bills  not  due 11,229    8    1 

Balance  reserved  to  meet  anticipated  losses  by  bad  debts  28,920    4    5 

£63,549  15     7 


Cr. 

Balance  of  undivided  profit  carried  forward,  as  per  last 

annual  statement,  to  31st  December,  1864 £377     9    4 

Rebate  on  bills  not  due  31st  Dec.,  1864,  brought  forward  13,019     \  11 

Gross  profit  for  half-year,  to  30th  June,  1865 50,153    4    4 

£03,549  15    7 


The  Chairman,  in  moving  that  the  report  and  statement  of  accounts  be 
read  and  adopted,  remarked  that  it  had  been  his  pleasing  duty  on  previous 
occasions  to  announce  a  dividend ;  but  on  the  present  occasion,  he  was 
sorry  to  say,  circumstances  had  arisen  which  would  make  it,  in  the  opinion 
of  the  directors,  injudicious  to  trespass  on  the  profits  of  tho  half-year  iu 
order  to  pay  a  dividend,  but  to  reserve  them  to  meet  past- due  bills  and 
other  contingencies  that  must  arise  from  the  crisis  that  had  taken  place  in 
the  colony.  With  regard  to  their  own  position,  he  thought  he  might 
safely  say  that  they  had  gone  successfully  through  that  crisis,  and  from 
the  accounts  recently  received  from  the  colony  he  had  every  reason  to 
believe  that  their  capital  was  perfectly  ^intact.  (Hear,  hear.)  They  no 
doubt  must  sufiTer  a  considerable  loss,  but  he  believed  that  they  had  the 
means  of  meeting  it  without  trenching  upon  the  capital.  The  profits  of 
the  bank  for  the  half-year  ending  June  30,  amounted  to  about  £29,000, 
and  they  had  a  reserve;  of  £18,000,  making  together  £47,000  to  their  credit. 


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1368  London  trnd  South  African  Bank. 

withoat  trenchinc  upcm  the  oapitaL.  Independent  ol  reductions,  they  had 
the  profits  up  to  the  present  time  and  to  the  30ih  December,  which  would 
be  more  than  sufficient  to  protect  the  capital  entirely,  under  any  Girenm* 
stances  arising  from  the  commercial  crisis  he  had  alluded  to. 

Colonel  HoUand,  deputy-chairman,  seconded  the  motion. 

A  Shareholder  complained  that  the  working  expenses,  £12,000,  were  dis- 
proportionate to  the  profits.  (Hear,  hear.)  He  thought  thirteen  direefcon 
were  more  than  sufficient,  and  that  five  would  be  quite  competent  to  bsa- 
age  the  concern,  and  he  suggested  that  they  should  reoeiT«  £1,600  a  year. 

The  Chairman  remarked  that  the  shareholders  had  no  knowledge  off  the 
expense  of  trayelling  in  a  colony  where  some  of  the  branches  were  700  or 
800  miles  distance  from  each  other,  and  where  it  was  necessary  to  keep  op 
an  expensiye  establishment  of  clerks.  The  directors  had  thought  it  better 
to  reduce  the  number  of  branches,  and  keep  up  those  only  which  were  tht 
most  profitable,  and  they  were  taking  steps  to  effect  that  object 

A  Shareholder  inquired  the  amount  of  the  ascertained  losses. 

The  Chairman  replied  that  on  the  SOth  of  June  last^  the  past-doas  bill 
accounts  amounted  to  £76,000.  Since  then  £21,000  had  been  leeerred, 
and  from  the  latest  accounts  from  the  colonial  inspectors  and  managen, 
they  estimated  the  loss  that  would  be  sustained  i^  £21,000  or  £22,000. 
The  directors,  however,  were  not  quite  satisfied  that  that  sum  woiild  cover 
the  whole  loss,  and  therefore  they  recommended  that  no  diiridend  should 
be  declared. 

The  Chairman,  in  reply  to  a  question  as  to  the  cause  of  the  increase  in 
the  charge  for  interest,  explained  that  it  was  occasioned  by  the  increase  ol 
deposits,  which  had  risen  from  £250,000  in  1862  to  £459/)03  on  the  30th 
of  June  this  year. 

A  Shareholder  thought  it  would  be  desirable  for  Mr.  James,  the  manager, 
who  had  just  returned  from  the  colony,  to  give  some  explanation  as  to  the 
state  of  their  affairs. 

Another  Shareholder  inquired  whether  the  losses  had  arisen  in  the 
ordinary  course  of  commerce,  or  from  adyanoes  made  by  the  managers  on 
worthless  securities  ? 

The  Chairman  answered  that  the  pressure  had  entirely  arisen  from  the 
collapse  occasioned  by  the  drought,  and  the  war  in  the  Free  States, 
which  had  prevented  the  merchimtB  from  realizing  their  produce  and 
meeting  their  engagements.  The  directors  had  anticipated  an  objeotion 
advanced  by  a  third  shareholder  as  to  the  remuneration  of  the  directors 
by  declining  this  half-year  to  take  any  remuneration.     (Hear,  hear.) 

Mr.  James,  the  manager,  responding  to  an  appeal  from  several  share- 
holders in  reference  to  the  losses,  stated  that  the  past-due  billB  on  the  SOkh 
June  amounted  to  £76,000,  against  which  they  held  securities  amounting 
to  £171,000.  He  did  not  think  that  these  securities  could  be  fairly  Ti^ued 
at  so  large  a  sum,  taking  into  account  the  depreciation  of  every  description 
of  property  in  the  colony,  but  if  they  took  it  at  half  that  amount  there 
was  still  a  large  margin.  Out  of  the  £76,000  over-due  bills,  £20,000  bad 
been  paid  in  fall,  thus  bringing  down  the  amount  to  £56,000  on  the  90th 
June.  Many  of  the  other  bills  would  likewise  be  paid  in  full,  and  others, 
which  had  two  or  three  good  names  upon  them,  would  yi^d  good  dividMidk 
The  working  expenses  were  a  little  more  than  fbrmeriiy,  in  consequence  ol 
the  opening  of  the  new  branchea  and  of  some  slight  additioiis  to  salaries. 
He  thought  it  would  have  been  wiser  if  they  had  not  opened  the  fanadies 
at  Colesburg,  Graaf  Beinet.  and  Richmond.  The  Ridnnond  brsmch  was 
opened  without  the  knowledge  of  the  directors,  and  instractiana  had  been 
given  out  to  close  it  and  the  other  two.    At  the  same  time  he  did  not 


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LeedA  Banking  (Umpanp.  1363 

anticipate  any  great  Iobb  as  arising  from  those  brandies.  No  doubt  there  • 
liad  bsen  some  overtrading  in  the  colony,  besides  which  a  system  of 
XMSsing  accommodation  bills  had  prevailed  to  a  very  great  extent.  That 
wasy  however,  now  put  a  stop  to,  and  no  further  losses  were  anticipated 
from  that  source:  He  did  not  believe  that  one  penny  of  the  capital  of  the 
bank  was  touched.  Having  formed  his  own  judgment  as  to  the  probable 
dividend  which  would  be  realised  on  all  the  past-due  bills,  he  could  safely 
say  that  the  capital  of  the  bank  was  not  touched,  and  he  could  go  further 
even  than  that  and  say,  that  taking  into  account  the  profits  of  the  whole 
year,  he  did  not  believe  the  reserve  would  be  touched.  (Cheers.)  But 
of  course  he  could  not  pledge  himself  on  this  point. 

Several  shareholders  expressed  their  thanks  to  the  manager  for  his  rexy 
succinct  and  satisfactory  explanation. 

A  Proprietor  inquired  if  the  reserve  was  invested. 

Mr.  James — £17,000  of  it  is  invested  in  Government  securities. 

In  reply  to  further  questions. 

Colonel  Holland  (deputy-chairman)  stated  that  the  reason  why  the 
directors  had  not  given  any  precise  statement  of  the  actual  losses  was  that 
tbey  had  no  positive  statement  before  them.  Up  to  the  present  time,  how- 
ever, he  did  not  believe  they  amounted  to  more  than  £5,000.  During  a 
great  commercial  crisis,  such  as  the  Cape  h^d  passed  throu^  a  k^ge 
amount  of  bad  debts  had  unavoidably  been  incurred,  but  they  were  covered 
by  a  very  large  amoimt  of  securities,  and  although  those  securities  more 
than  doubled  the  amount  of  the  over-due  bills,  the  directors  could  not  as 
consciencious  men  recommend  the  appropriation  of  any  portion  of  the 
profits  to  the  payment  of  a  dividend,  as  it  was  impossible,  so  many  good 
houses  at  the  Cape  being  still  shaky,  and  the  depreciation  of  property  there 
being  so  great  at  present,  to  say  what  might  be  recovered,  or  whether  the 
losses  might  not  absorb  ^e  whole  iA  the  profits. 

A  Shareholder  inquired  what  was  the  nature  of  the  securities  ? 

Colonel  Holland'-'It  is  to  some  extent  land  which  we  took  as  collateral 
security  only. 

In  rroly  to  further  questions, 

Mr.  tfames  added  that  the  securities,  if  taken  at  a  largely  depreciated 
value,  would  more  than  meet  the  past-due  bills.  The  liabilities  were  already 
largely  reduced,  and  instructions  had  been  sent  out  to  the  colony  not  to 
open  any  new  branches  without  the  consent  of  the  directors. 

The  motion  adopting  the  report  was,  after  some  further  discoasion,  put 
and  carried  unanimously ;  after  which  the  meeting  was  made  special,  and 
the  supplemental  charter  granted  by  her  Majesty,  and  dated  15th  June, 
1865,  was  accepted  and  confirmed. 

A  vote  of  thanks  to  the  chairman  and  directors,  and  a  special  compliment 
to  Mr.  James,  the  manager,  concluded  the  proceedings. 


LEEDS  BANKING  COMPANY. 

The  official  liquidator  and  other  pNsrtiee  attended  before  Mr.  Buckley,  the 
chief  clerk  of  yice-Chancellor  Kindersley,  at  chambers,  dud  November, 
further  to  proceed  with  other  matters  arising  out  of  the  failure  of  this 
corporation. 

Mr.  Hansom  and  Mr.  Williams,  from  the  office  of  Mr.  Freshfieldy  re- 
presented  Mr.  Turquand,  the  official  liquidator,  Messrs.  Richardson  and 
Farmer,  of  Leeds,  also  aj^wared. 


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1364  Leed^  Bankit^g  Company. 

Hr.  Hansom  said  the  first  m&tter  would  be  the  case  <A  Mr.  John  Pape, 
who  had  been  a  corn-miller  at  Leeds,  and  Messrs.  Thomas  Pape  ajid 
Charles  Oxley  were  his  execntors.  The  deceased  had  a  daim  «i 
£3,3^.  15s.  9<l.  against  the  bank  as  a  depositor,  and  he  was  ak^)  on  tbe 
list  of  oontributories.  It  was  intended  to  i^ply  to  the  court  as  to  whether 
the  one  might  set  off  as  against  the  other. 

Mr.  Richardson  howerer  assented,  and  the  Chief  Clerk  made  the  nec^ 
sary  order. 

Mr.  Hansom  obserred  that  in  the  matter  of  Mr.  James  Ashworth  be 
desired  to  prove  against  the  estate  of  the  Leeds  Banking  Companj,  u 
endorsee  of  a  bill  of  exchange  for  £222.  12s.  2d.  The  bill  had  be^n 
endorsed  by  Mr.  Marsden  to  Joseph  Maraden  and  Sons,  by  them  to  th« 
Leeds  Banking  Company,  who  endorsed  it,  and  it  then  got  into  the  haaJs 
of  the  applicant.  He  Qir.  Hansom)  had  to  point  out  that  the  notice  of 
di»hi>nour  was  given  too  late. 

The  Chief  Clerk  suggested  that  an  action  would  lie  against  the  baaken 
for  negligence. 

Mr.  Hansom  said  the  plan  had  been  tried,  and  the  applicant  was  defeatai, 
and  now  they  were  anxious  ^  to  do"  the  Leeds  'R^'^V'^g  C<MnpaDy,  bat 
found  they  were  a  day  too  late. 

Mr.  Turquand  pointed  oi\^  thai  he  was  urged  by  the  oontribut(»iffi  of 
the  Leeds  Banking  Company  to  insist  on  their  strict  l^al  rights,  aihl 
therefore  had  no  alternative. 

The  Chief  Clerk  said  he  should  be  very  uncomfortable  under  the  dream- 
stances  were  he  the  party  liable  for  the  bilL 

Mr.  Turquand  suggested  that  the  i^plicant  still  had  his  actum  against 
tlie  drawer. 

Tlie  Chief  Clerk — ^Yes,  of  course. 

3Ir.  Turquand  said  he  was  obliged  to  act  strictly  on  the  letter  of  tlic 
law ;  but  he  might  say  that  the  acceptance  was  one  of  the  many  f oigeiics 
that  Marsden  sent  into  the  world  through  the  Leeds  Tanking  Compaoy. 

The  Chief  Clerk — ^Than  in  reality  there  was  no  acceptance  at  alL  The 
holder,  having  failed  to  give  notice  of  the  dishonour  at  time  ^ed  by  law, 
lost  all  claim  as  against  the  banking  company  as  endorsees.  He  would 
not,  however,  advise  the  applicant.  He  could  apply  elsewhere  if  be 
pleased. 

Mr.  Foster,  solicitor,  thought  it  would  be  the  best  way  to  give  it  np  a^^l 
lc«e  the  money  altogether 

The  Chief  Clerk  said  the  learned  gentleman  could  take  the  matter 
furtlier,  and  apply  for  a  summons  on  another  day. 

^Ir.  Hansom  applied  for  an  order  of  substituted  service  in  the  case  of 
Mr.  Kirby,  who  formerly  lived  at  15,  Cambridge-terrace,  PaddingioiL 
That  gentleman  was  on  the  list  of  oontributories  for  52  shares,  at  £70 
a  shaie.  Several  attempts  had  been  made  to  serve  the  order  for  the  pay- 
ment ;  but  the  wife  of  the  contributory  refused  to  give  his  address,  aiiti 
told  the  derk  that  it  was  on  account  of  his  liabili^  for  the  Leeds  Bazikin^ 
Comjxmy  that  her  husband  was  not  "  in  the  way." 

The  Chief  Clerk  could  not  see  the  object  of  substituted  service  in  sucb 
a  case.    It  was  not  known  where  the  contributory  was  living. 

^Ir.  Turquand  was'  advised  that  it  might  be  possible  to  get  hdd  of  the 
furniture  and  all  other  effects.  He  was,  however,  peraonaily  anxioaa  to  say 
that  he  did  not  like,  nor  did  he  ever  wish,  to  proceed  to  extremes  upon  tb« 
oontributories'  list,  if  the  parties  showed  a  disposition  to  pay ;  but  he  voul'i 
observe  that  there  were  several  who  kept  out  of  the  way ;  and  he  (Mr^ 
Turquand)  had  seriously  thought  of  advertiaing  for  ^  geuU^en  wanted,' 


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London  and  Brazilian  Bank.  1365 

and  offering  a  reward  for  intelligenoe  of  tkeir  whereaboats.  This  might 
be  oonside^  a  very  extreme  measure,  but  there  were  many  who  treated 
the  matter  very  lightly.  He  could  instanoe  two  whose  names  it  would 
perhaps  be  unadvisable  to  mention,  who  had  ample  means  of  discharging 
the  claims  against  them.  Another  one  had  cost  the  estate  about  £S>  in 
expenses,  who  could  and  would  be  made  to  pay  when  he  was  to  be  found. 
He  (Mr.  Turquand)  asked  for  an  order  to  invest  £36,000,  cash  in  hand,  in 
Exchequer  Bills,  according  to  the  forms  of  the  Court. 

The  chief  derk  suggest^  it  should  be  paid  away. 

The  official  liquidator  said  the  amount  at  present  in  hand  was  not 
sufficient  to  justify  another  dividend,  but  he  hoped  at  the  end  of  December 
to  be  able  to  distribute  another  4s.  per  share. 

The  meeting  for  the  further  dividend  was  then  adjourned. 


LONDON  AND  MEDITERRANEAN  BANK,  LIMITED. 

Aw  extraordinary  general  meeting  of  this  company  was  held  on  the  0th 
November,  at  the  Baltic  Sale  Rooms,  South  Sea  House,  to  submit  a  resolu- 
tion for  the  voluntary  winding-up  of  the  company,  consequent  upon  its 
amalgamation  with  the  London  and  Bombay  Bank ;  W.  J.  Maxwell, Esq., 
in  the  chair.    The  secretary  having  read  the  advertisement. 

The  Chairman  said  it  would  be  unnecessary  for  him  to  detain  the 
meeting,  as  it  was  purely  of  a  formal  character  to  propose  a  resolution  for 
windins  up  the  affairs  of  the  company  voluntarily. 

Resolution  put  and  carried  unanimouslv. 

A  vote  of  thanks  to  the  chairman  closed  the  proceedings. 


LONDON  AND  BRAZILIAN  BANK. 

Ak  extraordinary  general  meeting  of  the  shareholders  of  this  bank  was 
held  on  the  10th  November,  at  the  bank  offices.  Old  Broad  Street,  Mr. 
Cater  in  the  chair,  for  the  purpose  of  confirming  the  resolutions  which 
were  adopted  at  the  meeting  of  the  lOthiOctober  last. 

The  following  are  the  resolutions  referred  to : — 

*'  That  the  supplemental  a^eement  now  read,  between  this  bank  and 
the  banks  of  Maud  &  Co.,  and  Maud,  McGregor  &  Co.,  referring  to  the 
liquidation  of  the  respective  businesses  of  the  respective  establishments 
by  the  '  London,  Brazillian,  and  Maud  Bank,  Limited,'  be  and  the  same 
is  hereby  approved,  and  the  directors  of  this  bank  are  specially  autho- 
rised and  empowered  to  carry  the  same  into  effect,  with  any  modifications 
or  alterations  in  the  provisions  thereof  which  may  appear  to  them  necessary 
or  proper." 

**  That  the  foregoing  resolution  shall  in  no  degree  repeal,  alter,  or  affect 
the  special  resolutions  of  the  company,  passed  on  the  11th  May,  1865,  and 
duly  confirmed  on  the  9th  of  June,  1865,  or  the  powers  or  authorities 
thereby  given  to,  or  conferred  on,  the  directors  of  this  bank ;  except  only 
and  so  far,  if  at  all,  as  the  supplemental  agreement  approved  by  this 
meeting  varies  any  provision  contained  in  the  memorandum  of  agreement 
for  amalgamation,  or  may  render  the  alteration  of  the  dates  mentioned  or 
referred  to  in  such  memorandum  of  agreement  or  special  resolutions,  or 
any  or  either  of  such  dates,  necessary,  or  in  the  judgment  of  the  directors 
expedient  or  proper." 

VOL.  XXV.  103 


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1366  Imperial  Ottoman  Bank. 

The  Chairman  having  pnt  the  resolutions  for  confirmation, 

Mr.  Cantor  said  that  at  the  last  meeting  it  had  been  stated  tiiat  the  final 
liquidation  of  the  presoit  bank  would  not  be  for  two  yean.  He  wished 
to  know  whether  the  profits  between  the  90th  of  June  to  ihe  Slat  Deeem- 
ber  would  not  be  divided,  or  whether  they  would  be  accumulated  and  the 
whole  reserved  for  two  years  hence. 

The  Chairman  said  there  were  two  years  allowed  for  the  liquidatioD,  but 
he  knew  nothing  that  should  prevent  them  from  winding  up  their  albin 
at  a  much  earlier  date.  With  regard  to  the  dividend,  the  directors,  alter 
receiving  the  returns  of  Slst  Decqmbcr,  would  be  able  to  form  an  opinion 
as  to  whether  there  ought  to  be  a  dividend  or  not.  For  bimaelfy  he  saw 
no  reason  why  they  should  not  declare  that  dividend,  becauae  he  supposed 
there  would  be  a  considerable  balance  over.  But  it  would  depend  on  tbe 
reports  th^  received  from  their  o£5.cers  and  from  the  Braalian  board  after 
the  1st  of  January.  The  institution  was  never  in  a  more  healthypositionj 
its  credit  never  stood  higher,  and  most  deservedly  so.  (Hear«}  ^  looked 
forward  to  a  happy  future  f  ^r  the  shareholders.  He  was  not  in&UiUe,  but 
when  the  war  in  Brazil  was  over  he  looked  forward  to  a  very  healiJiy  posi. 
tion  for  the  bank.  There  was  one  debt  which  they  had  doubts  about,  bat 
the  last  mail  brought  accounts  which  showed  that  this  debt  was  peifeeUy 
Beoore. 

Mr.  Cantor  said  he  was  glad  to  hear  what  the  chunnan  had  said 're- 
garding the  dividend,  because  the  public  were  under  the  impressioD  that 
wey  should  not  have  any  more  dividend  for  two  years.  From  what  had 
been  now  stated  it  appeared  that  if  no  untoward  circumstances  oocmnd 
they  would  have  a  dividend  about  the  middle  of  next  year. 

In  answer  to  another  proprietor. 

The  Chairman  stated  that  the  reserve  fund  would  not  be  divided  until 
all  their  affairs  were  wound'upr  33ie-  present  half-year  foreshadowed  the 
best  results  they  ever  had.    (Hear,  hear.) 

The  motion  was  then  adopted^vaa  was  a*  vote  of  thanks  to  the  ri>i^irmMi 
and  directors  for  the  seal  and  ability  with  whidi  they  conducted  the  alEurs 
of  the  bank. 

In  reply  to  a  question  whether  there  had  been  auy  change  in  the  board 
of  directors, 

The  Chairman  said  there  had.  The  deputv-chairman  and  hiois^  could  not 
altogether  a^ree  upon  certain  points,  and  he  sent  in  his  resignation,  which 
was  accepted.  He  regretted  this,  and  he  expressed  his  regret  to  the  d^mty- 
chairman*  He  regretted  that  the  deputy- chairman  assumed  a  poaitioD 
which  he  did  not  think  he  was  warranted  in  assuming.  He  maintained 
his  opinions  as  he  (the  chairman)  maintained  his,  but  differ  as  they  might 
he  hoped,  there  would  exist  that  respect  which  he  should  claim  for  himself 
from  everybody,  whether  on  the  board  or  ekewhere.  He  was  sure  that 
the  bank  would  not  want  directors  of  standing  or  judgment  to  conduct  its 
affairs.  Another  director  had  also  resigned,  from  lU-health,  so  that  there 
were  now  two  vacancies.  Baron  Maud  would  be  a  member  of  the  new  board 

The  meeting  then  separated. 


IMFBBML*  iypmiM»  BiiUK. 

A  BPJSCiAi.  genera!  meeting  of  shareholders  was  held  on  the  10th  Bbveoiber, 
at  the  London  Tavern,  *Sir  W.  Clay  in  the  chair,  to  decide  respecting  the  issue 
of  new  shares,  and  to  modify  certain  artides  of  the  statute  relative  to  ^ 
reserve  fund. 


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Imperial  Ottotnan  Bank.  1367 

The  Chairman  explaiiied  that  the  business  of  the  meeting  was  limited 
to  the  two  objects  mentioned  in  the  advertisement.  As  to  the  afTairs  of 
the  hanky  it  was  sufficient  to  say  that  they  were  going  on  satisfactorily. 
At  the  last  meeting,  in  July,  in  alluding  to  the  striking  facts  and  figures 
which  made  manifest  the  increasing  business  and  extended  operations  of 
the  bank,  he  intimated  that  in  the  opinion  of  the  committee  it  would  bo 
probably  necessary  to  call  for  an  increase  of  capital.  In  pursuance  of  that 
opinion,  the  soundness  of  which  had  been  confirmed  by  the  experience  since 
July,  the  board  had  summoned  the  present  meeting.  There  were  two  points 
for  consideration— first,  the  amount  of  the  increase;  and  secondly,  the 
mode  in  whidi  the  shares  should  be  issued  and  the  capital  called  up.  With 
regard  to  the  amount,  there  were  two  main  considerations  to  be  kept  in 
view.  On  the  one  hand,  that  they  should  have  abundant  capital  to  enable 
them  to  carry  out  whatever  enterprises,  and  to  conduct  whatever  business 
appeared  to  the  directors  to  hold  out  the  prospect  of  advantage ;  and  on  the 
other  hand,  to  avoid  calling  up  a  larger  amoimt  of  capital  tium  could  be 
advantageously  employed.  Upon  these  two  considerations,  the  English 
board,  in  conjunction  with  their  French  colleagues,  had  bestowed  great 
attention,  and  he  hoped  the  shareholders  would  be  of  opinion  that  the  result 
had  arrived  at  the  just  medium.  When  the  new  capital,  as  proposed  in 
the  resolutions  he  was  about  to  submit,  was  called  up,  and  added  to  the 
existing  capital,  the  total  amount  of  capital  they  would  have  available 
would  be  £2,025,000.  As  to  the  employment  which  they  had  for  capital, 
first  it  was  important  that  they  should  provide  sufficient  capital  for  work- 
ing the  several  branches  of  the  bank,  because  it  was  through  those  bninches 
that  a  great  part  of  their  profits  were  derived.  On  previous  occasions  he 
bad  noticed  the  increased  area  of  their  operations  and  the  number  of  their 
branches.  The  old  Ottoman  Bank  had  four  branches.  Now  they  (the 
Imperial)  had,  including  those  in  active  operation,  those  which  were  being 
established,  and  those  which  were  in  certain  contemplation  of  being  estab- 
lished, 17.  They  had  branches  at  Beyrout  and  Alepix),  in  Syria ;  at  Aidin, 
Kara  Hissa,  Sparta,  and  Magnesia,  in  Asia  Minor ;  on  the  shores  of  the 
Black  Sea  they  had  branches  at  Varna  and  Trebizond ;  and  in  European 
Turkey  and  other  places  they  had  already,  or  were  arranging  for,  the  estab- 
lishment of  others,  making  up  the  nimnber  he  had  stated.  The  capital 
required  for  these  branches  coidd  not  bo  taken  at  less  than  £600,000.  Then 
by  the  statutes  they  were  under  a  permanent  advance  to  the  Ottoman 
government  of  £600,000 ;  and  again,  for  the  large  centres  of  Constanti- 
nople, Paris,  and  London,  large  sums  must  be  reserved,  making  together 
a  requirement  for  at  least  the  capital  which  they  would  have  if  the  present 
proposal  were  sanctioned  But  beyond  this  it  must  be  borne  in  mind  that 
part  of  the  duty  of  the  bank  wap  to  assist  in  the  promotion  of  every  great 
industrial  enterprise  that  could  offer  a  good  security  for  the  advance,  and 
which  mightbeusefid  in  developing  the  resources  of  the  country,  increasing 
its  prosperity,  and  consequently  of  improving  the  position  of  the  bank.  There 
w^ere  several  such  enterprises  now  in  progress,  in  the  shape  of  railways  and 
other  works,  and  there  were  various  other  objects  to  which  the  capital  of 
the  bank  might  be  advantageously  directed,  and  rendering  it  important 
that  they  should  always  have  ample  funds  at  their  disposed.  There  were 
now,  as  the  shareholders  were  aware,  135,000  old  shares,  and  it  was  pro- 
postd  in  the  new  issue  to  sive  one  new  for  eveiy  two  old  shares  held.  The 
new  shades  would  be  issued  at  a  premiiunof  £2. 10s.  each,  and  the  payments 
upon  them  would  be  £5  on  1st  December,  £3  on  1st  Februciry,  £3  on  Ist 
May^  and  £1.  \Qs,  on  5th  July,  making  £12. 10^.  per  share ;  viz.,  £10  to 
bring  up  the  shares  to  the  same  amount  paid  as  the  old  shares,  and  £2. 105. 


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1368  Imperial  Ottoman  Bank. 

premium.  It  was  also  proposed  that,  notwithstandiiiff  tbe  capital  to  be 
called  up  on  the  new  shares  would  not  be  fully  paid  until  July  next  year,  tfaey 
should  be  entitled  to  divide  with  the  old  shu'es  the  entire  profits  df  the 
year  1866,  as  well  as  the  ad  interim  dividend  of  ^ve  per  cent,  paid  tX 
Christmas  as  the  general  dividend  when  the  aooounts  for  the  year  were 
made  up  at  Midsummer.  This  was,  no  doubt,  offering  a  great  advantage 
to  the  new  shares,  but  the  committee  of  directors  considered  that,  as  it  was 
the  old  proprietors  who  would  become  the  proprietors  of  the  new  shares^ 
it  was  right ;  and  that  th^  were  right^  therefore,  in  offering  them  these 
new  riiares,  that  they  should  offer  them  also  all  the  advantages  attendant 
upon  them.  (Hear.)  It  was  further  proposed  to  place  the  whole  of  the 
premiums  received  upon  the  new  shares  to  the  reserve  fund.  (CheeR.) 
The  amount  of  the  reserve  fund  at  the  period  to  which  the  aooounts  woe 
last  made  up  was  £42,830 ;  the  amount  of  the  premiums  on  the  new  shares 
would  be  £168,750,  which,  when  added,  would  bring  the  resove  fund  up 
to  i^ll,580.  The  statutes  provided  tiiat  ten  per  cent,  of  the  profits  shoold 
be  set  aside  every  year  to  the  reserve.  And  the  directors  wore  advind 
that,  to  set  aside  these  premiums  to  that  purpose,  the  statutes  must  be 
modified  in  this  particular.  They  had  obtained  the  assent  of  the  Porte  to 
such  modification,  and  a  second  resolution  would  be  submitted  to  the  meei- 
ing  to  authorise  it.  In  the  opinion  of  the  board,  if  the  proprietors  passed 
these  resolutions,  they  would  oe  provided  with  abundant  capital  for  all  the 
objects  they  contemplated.  In  their  position  capital  was  power,  and  it  waft 
most  important  that  they  should  retain  and  enhance  the  opinions  which 
prevailed  of  their  wealth  and  solidity,  coupled  with  a  character  for  liber> 
alitv  and  fair  dealing.  He  begged  to  propose  the  following  resolution : — 
*'  That  the  nominal  capital  of  the  bank  be  increased  to  £4,050,000 
(101,250,000fr.},  by  an  issue  of  67,500  shares  of  £20  (500fr.)  each.  That 
^ese  shares  shall,  in  the  first  instance,  be  offered  by  advertisement  to  the 
holders  of  the  existing  shares, at  a  premium  of  £2. 10s.  (62fr.  50c.)per 
share,  in  the  proportion  of  one  new  share  to  every  two  old  shares.  That 
any  shares  remaining  ud  applied  for  by  the  holders  of  the  existing  shares 
by  the  1st  December,  1865,  shall  be  cUsposed  of  by  the  committee  for  the 
benefit  of  the  bank.  That  £10  (250fr.)  per  share  (exclusive  of  the  pre- 
mixmi^  shall  be  paid  on  each  of  these  new  shares,  and  that  the  total  auMHrnt 
payable  on  these  shares  shall  be  paid  at  the  following  dates,  viz.  :-~£5 
(125f r.)  on  the  1st  December,  1865 ;  £3  (75fr.}  on  the  1st  February,  1866 ; 
£3  (75fr.^  on  the  1st  May,  1866 ;  and  £1. 10s.  (37fr.  50c.}  on  tiie  5th  July, 
1866,  witn  power  to  the  committee  to  receive  payment  of  the  several  in- 
stalments in  advance,  on  such  terms  as  they  shall  think  fit^  That  interest 
bo  charged  on  all  payments  in  arrear,  at  the  rate  of  six  per  cenl  per 
annum,  from  the  days  they  are  respectively  payable.  That  if  any  instal- 
ment and  interest  thereon  be  not  paid  within  one  month  after  the  day 
fixed  for  such  instalment,  the  said  shares  shall  be  dealt  with  in  accordanoe 
with  article  14  of  the  statutes.  That  the  new  shares  shall  be  entitled  to 
participate  in  all  profits  with  the  old  shares  from  January,  1866." 

The  motion  having  been  seconded, 

Mr.  Davis  thought  the  proposition  was  one  that  ought  not  to  be  aoc^ited 
too  hastily,  but  that  time  should  be  given  for  fully  considering  it.  He 
had  confidence  in  the  committee,  and  believed  them  when  they  sUted  that 
more  capital  was  required  to  carry  on  the  business  of  the  bank ;  hot  if  so, 
why  should  not  the  shareholders  have  the  advantages  secured  to  them  by 
the  concession  ;  one  of  which  advantages  was,  that  all  new  shares  should 
be  issued  to  the  shareholders  at  par  ?  v^<^9  ^^')  ^^>  ^'^^^  '*'<^  ^^  ^ect 
of  the  articles  of  concession,  and  as  they  were  entitled  to  the  new  shares  at 

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Imperial  OUwian  Bank.  1369- 

£10,  it  was  very  absurd  for  them  to  give  £12. 10«.  each.  (Hear,  hear.)  He 
agreed  in  the  importance  of  having  a  reserve  fimd,  but  let  it  be  formed  in  the 
proper  manner,  by  a  periodical  setting  aside  a  portion  of  the  profits,  and 
not  by  calling  up  so  much  capital  from  the  pockets  of  the  shareholders. 
He  further  contended  that  the  reserve  should  be  invested  in  safe  securities, 
paying  three  or  four  per  cent.,  and  not  used  as  capiAl,  to  be  dealt  with  in 
the  ordinary  banking  business.  This  practice  of  creating  new  shares 
seemed  to  be  idl  the  rage  now.  A  company  of  which  he  was  a  shareholder, 
and  which  had  gone  on  prosperously,  and'  accumulated  a  reserve  of 
.£250,000,  lately  determined  upon  iBsuing  new  shares,  and  the  result  was, 
that  the  first  dividend  after  the  issue  was  reduced  by  £1  per  share,  and  the 
quotation  of  the  shares  fell  from  £68— £72,  to  £48.  (Hear,  hear.)  What 
.was  the  motive  of  the  directors  in  taking  this  £2. 10s.  a  share  out  of  the 
pockets  of  the  proprietors  ?  They  did  not  require  it  for  increasing  confi- 
»dence.  They  had  now  a  capital  of  £1,300,000,  which,  with  the  addition 
proposed,  would  be  now  £2,000,000,  with  a  back  of  £2,000,000  more  un- 
called up.  That  surely  was  sufficient  in  the  way  of  security.  After  some 
further  remarks,  he  concluded  by  moving,  as  an  amendment,  that  the 
shares  should  be  issued  at  par.    (Cheers.) 

A  Shareholder  seconded  this  proposal,  which  seemed  to  meet  with  very 
general  favour  &om  the  body  of  the  meeting,  but 

The  Chairman  assured  the  meeting  that  the  plan  recommended  by  the 
cUrectors,  after  mature  consideration  with  their  French  colleagues,  was  that 
which  would  be  most  advantageous  to  the  company  and  to  every  proprietor. 
He  reminded  them  that  some  of  the  best  conducted  banks  had  ts^en  the 
same  course  of  issuing  new  capital  at  a  premium,  and  carrying  that  pre- 
mium to  the  reserve.  It  was  a  great  advantage  to  have  a  large  reserve, 
and  in  this  case,  while  securing  that  object,  the  directors  were  benefiting 
the  old  shareholders  directly,  by  offerin^^  them  the  shares  at  a  price  much 
below  the  market  price  of  the  existing  snares.  In  the  old  Ottoman  Bank, 
one  of  the  best  conducted  and  most  successful  financial  institutions  ever 
established,  they  had  increased  the  reserve  by  adding  to  it  money  that 
xnight  otherwise  have  been  divided  among  the  shareholders,  and  in  this 
way,  accumulated  a  liurge  amount.  [A  voice, ''  But  that  was  out  of  profits.'^] 
(Hear,  hear.)  At  all  events,  the  board  felt  that  they  would  not  be  doing 
their  duty  if  they  accepted  a  resolution  for  an  eidargement  of  capitdi 
without  a  premiiun  on  the  new  shares,  and  the  meeting  would  have  the 
kindness  to  understand  that  the  proposition  submitted  to  them  on  tliepart 
of  the  board  was  that  the  shares  be  issued  at  a  premium  of  £2. 10«.,  and  that 
if  that  was  negatived,  the  whole  affair,  so  far  as  raising  additional  capital, 
would  fall  to  the  ground. 

Some  shareholders  protested  that  this  was  in  the  nature  of  a  threat. 

Mr.  Walter  Church  also  protested  against  what  the  chairman  said,  as 
a  threat  against  tiie  shareholders,  and  moved  the  adjournment  of  the 
meeting. 

A  shareholder  contended  that  the  course  proi)osed  from  the  chair  tended 
to  depreciate  the  market  value  of  the  shares,  inasmuch  as  it  would  place 
them  in  the  hands  of  the  public  instead  of  keeping  them  in  those  of  the 
existing  shareholders. 

Another  shareholder  wished  te  know  whether  the  proposed  increase  of 
the  capital  would  add  te  the  remuneration,  nearly  £20,000  a  year,  already 
received  by  the  directors. 

The  Chairman  replied  in  the  negative.  The  founders,  whose  interests 
were  identical  with  those  of  the  directors  and  the  shareholders,  gave  up 
any  claim  they  might  have  for  iucieased  emolument  consequent  upon  the 
increase  of  capital. 


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1370  London  and  Venezuela  Bank. 

Mr.  G.  Seymour  said,  having  beeu  ooBSttlted  by  the  board  as  to  the  best 
manner  of  issuing  the  sbaree,  and  having  been  to  Paris  to  consult  the 
French  committee  there,  he  must  say  that  he  believed  the  oourse  proposed 
was  the  best  one  for  the  shareholders  generally.  From  the  tone  which 
some  of  the  sliareholders  assumed,  it  would  be  almost  snppoeed  that  the 
fonndors  and  directors  had  different  interests  from  those  of  the  share- 
holders, but  that  was  not  the  case.  The  board  were  anxious  to  strengthen 
the  position  of  the  bank  by  an  addition  to  its  capital,  and  by  a  large  reaerre 
fund,  which  was  held  for  the  benefit  of  the  Bhareholders  themselTea.  It 
was  said  that,  because  the  directors  would  not  accept  the  proposal  of  issaiiig 
the  new  shares  at  par,  they  threatened  the  proprietors,  but  thai  was  not 
the  case.  The  fact  was  that  by  the  statutes  they  could  not  act  without 
the  assent  of  their  French  colleagues.  In  conjunction  with  the  French 
committee,  they  had  framed  a  proposal  which  had  been  submitted  to  the 
meeting.  If  the  shareholders  did  not  approve  of  it,  they  could  reject  it ; 
but  the  directors  could  not  accept  the  suggestion  of  offering  the  shares  ti 
par,  inasmuch  as  it  was  at  variance  with  &e  conclusion  which  the  FreDch 
committee  had  sanctioned. 

The  Chairman  also  explained  that,  however  painfol  it  waa  for  the  com- 
mittee to  differ  from  the  shareholders,  it  was  not  in  their  power  at  present 
to  consent  to  an  alteration  in  the  terms  upon  which  the  new  shares  should 
be  issueil.  All  they  could  do,  if  the  motion  submitted  from  the  chair  w:ks 
negatived,  was  to  report  the  opinion  of  the  meeting  to  the  French  com 
mittee,  and  consult  with  them  before  taking  any  further  steps. 

After  a  long  discussion,  in  the  course  of  which  Mr.  Davis  was  urged  t^ 
put  his  amendment  himself  as  the  chairman  seemed  to  object  to  do  so— it 
wa.<}  arranged  that  the  meeting  should  be  adjourned  for  a  fortnight^  to  afford 
the  English  committee  an  opportunity  of  consulting  their  Frendi  coi- 
leaguea,  the  motion  for  the  adjournment — which  it  was  understood  was  t4> 
be  taken  as  an  expressed  disapproval  of  the  terms  proposed  by  the  board— 
being  carried  against  one  dissentient  only.  Some  of  the  proprietors  were, 
however,  not  satisfied  with  this,  and  insisted  upon  Mr.  Davis  s  amendmeat 
being  put  to  the  meeting,  which  was  accordingly  done  by  Mr.  Davis  him- 
self after  the  chairman  had  left  the  chair,  and  declared  to  be  carried* 


LONDON  AKD  VENEZUELA  BANK. 

The  following  is  the  report  of  the  directors  of  the  London  and  Tenesaeld 
Bank,  Limited,  to  be  presented  to  the  i  roprietors  at  the  second  ordinaiy 
general  meeting  to  be  holden  at  the  London  Tavern,  on  November  90th, 
1865. 

In  presenting  their  second  report,  with  the  accompanying  balance-sheet, 
the  directors  have  to  congratulate  the  proprietors  on  the  gratly  improved 
position  of  the  bank  since  they  last  had  the  pleasure  of  meeting  them, 
increased  strength  has  been  secured  to  the  bank  hj  theisBueof  thebalanoe 
of  the  first  5,000  shares.  As.  however,  the  additional  capital  thus  raised 
had  cot  reached  Venezuela  at  the  date  of  making  up  the  accounts  in  Cazaos, 
it  will  be  seen  that  the  profits  of  the  half-year  have  been  earned  on  a  paid- 
up  cajntal  of  about  one-half  the  present  amount,  and  the  result  shown  in 
the  balai^ce-sLcet  is  therefore  most  satisfactory,  having  regard  to  the 
limiied  amount  with  which  the  directors  were  enabled  to  deaL  The  grosi 
profit  for  the  hiUf-year  amounts  to  £4,849.  12^.  lid.,  or  at  the  rate  d  S6 
per  cent,  per  annum.  This  added,  to  £784.  8«.  4d.,  the  balance  bron^t 
for'rard  from  Inst  nccount,  makes  £5,134.  la.  Si.,  and  deducting  cnrmt 


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London  and  Venezuela  Bank.  1371 

expenses^  leaves  a  balance  of  £2,349.  6«.  Sd.  Deducting  rebate,  at  the  rate 
of  12  per  cent,  per  annum  on  aU  undue  billa  in  Venezuela,  and  at  7  per 
cent,  per  annum  on  those  in  London,  amounting  together  to  £1,080. 16«.  &{., 
a  net  balance  arailable  for  distribution  remains  of  £1,268.  10«.  3d.  This 
amount  the  directors  propose  to  appropriate  as  follows,  viz.,  to  payment  of 
a  dlTidend  for  the  half-year,  at  the  rate  of  5  per  cent,  per  annum,  free  of 
income  tax,  £833.  O9.  8d. ;  and  to  reduction  of  preliminary  expenses,  at 
the  rate  of  10  per  cent,  per  annum,  £380 ;  after  which  there  will  remain  a 
balance  of  £55.  95.  7c2.  to  be  carried  forward  to  the  next  account.  The 
figures  in  the  balance-sheet,  as  compared  with  last  acooimt,  show  a  con- 
siderable increase  in  the  amoimt  of  business  transacted,  and  evince  the 
confidence  which  the  bank  is  acquiring.  This  is  particularly  evident  in 
the  amoxmt  held  on  current  and  deposit  accounts,  which  is  more  than 
double  what  it  was  in  Apnl  last.  The  directors  look  forward  with  confi- 
dence to  the  permanent  success  of  the  bank,  and  to  a  large  increase  of 
profits  available  for  distribution  from  the  augmented  capit^d  now  at  their 
disposal,  enabling  them  to  develope  the  operations  of  the  bank,  without 
any  material  increase  of  expenditure.  The  directors  have  much  pleasure 
in  informing  the  proprietors  that  no  loss  of  any  kind  has  been  made  by  tiie 
bank ;  nor,  it  is  believed,  is  there  a  single  bad  or  doubtful  security  in  its 
possession.  As  a  large  margin  of  profit  can  be  made  on  money  deposited 
in  London,  even  after  allowance  of  a  liberal  rate  of  interest  thereon^  the 
directors  invite  the  shareholders,  as  partners  in  the  bank,  to  use  their  mdi- 
vidual  influence  in  introducing  this  description  of  business.  The  directors, 
having  regard  to  the  increasing  business  of  the  bank,  have  acquired  per- 
manent offices  at  No.  9,  Tokenhouse  Yard.  If  the  dividend  proposed  be 
approved  by  the  meeting,  the  warrants  will  be  ready  for  delivery  to  the 
shareholders  on  Monday,  the  4th  day  of  December. 

Btilajtec^heet,  October  Slat,  ISSS,  including  Caracas  Account  to  Sept.  30th,  1865. 

Dr. 

Paid-up  capital~5,000  shares  at  £12.  10/ £62,500    0  0 

Note  circuktion  £71,500 11,000    0  0 

Current  and  deposit  accounts       34,149  17  4 

Bills  payable  and  letters  of  credit           24,871  18  3 

Balance  of  profit  and  loss  account          ...        ,, 2,349    6  8 

£134,871     2    8 

Or.  — — — 

Cash  and  notes  in  hand,  at  bankers',  and  on  deposit £49,020  18    l 

Bills  receivable       68,083  10  10 

Advances  on  security        8,333  16    0 

Balances  dae  from  agencies  at  La  Quayra  and  Porto  Cabello...  629  12    8 

Office  fittings,  furniture,  &a,  London  and  Caracas      1,237    8    2 

Preliminary  expenses        7,565  17    6 

£134,871     2     3 


PROFIT  AND  LOSS  ACCOUNT. 

Dr. 

Current  expenses  for  the  half-year  (including  directors'  remu- 
neration, salaries,  stationery,  rent,  &c.)  in  London  and 
Caracas  £2,784  14    7 

Rebate  on  bills  not  yet  due         1,080  16    5 

Carried  forward.. .......£8,866  11    0 

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1372  Ottoman  JKnandal  Assceiatt'on. 

Dlridend  proposed  at  the  rmte  of  5  per  cent,  per  aniiiim  lor  the 
balf-jear,  and  ineome  tax  thereon  ...        

Redaction  of  preliminary  eiqiensea,  at  the  rate  of  10  per  cent, 
per  annum 

Balance  carried  forward «        -        .^ 


Cr. 

Bdlance,  May  Ist,  1S65       ..«         

Gross  profits  of  the  half-year,  after  paying  interest  on  customers* 

balanoea  and  disconnts...       •••  * 


I3J66SU 

0 

833    0 

8 

380    0 
S5    9 

0 
7 

X5,134    1 

3 

£784    8 

4 

4,349  U  11 

£5.134     1    3 


VICTOEIA  FINANCE  AND   BULLION  ASSOCIATION  OF 
BOMBAY,  LIMITED. 

An  extraordiiiaiy  general  meeting  of  the  shareholdem  of  the  eompaay 
was  held  on  the  S^rd  of  October,  when  a  large  number  of  ahardiolden 
were  preeent.  Damodhnr  Jettabhoy,  Esq.,  chairman  of  the  anodatiaD, 
was  in  the  chair.  Mr.  Keb,  of  the  finn  of  Messrs.  Keir  and  Bamscka, 
solicitors  to  the  company,  was  also  present. 

The  following  resolutions  were  moved  and  carried  nnanimoualy  :— 

Proposed  by  Mr.  Ambaram  Eemlraln,  and  seoooded  by  Mr.  Animdjee 
GJovindjee,  ^^That  the  resolution  parsed  at  the  meeting  of  the  9th  ol 
Angost  last,  that  the  company  be  wound  up  voluntarily,  be  confirmed.'^ 

Proposed  by  Ambaram  Kevulram^  and  seconded  by  Mr.  Ti&hram 
Govindjee,  **  l^at  Mr.  Damodhur  Jettabhoy  and  Mr.  Ghellabhoy  Jairam 
be  appointed  liquidators.'^ 

Proposed  by  Mr.  Mahomed  Ibrahim  Purkar,  and  seconded  by  Mr.  Vish- 
ram  Govindjee,  "  That  the  remuneration  of  the  liquidators  shall  be  two 
per  cent,  upon  all  moneys  received  by  them.'* 

Proposed  by  3Ir.  Nowrojee  Dadabhoy,  and  seconded  by  Mr.  Ambaram 
Kevulram,  **  That  the  thanks  of  the  meeting  be  given  to  the  chairman, 
the  manager,  and  the  solicitors  of  the  Company." 

The  meeting  then  dispersed. 


OTTOMAN  FINANCIAL  ASSOCIATION,  LIMITED. 

An  extraordinary  general  meeting  of  the  shareholders  of  this  oompany 
was  held  on  the  20lh  of  November,  at  the  London  Tavern,  for  the  purpose 
of  ^  taking  into  consideration  ocrtein  propositions  for  an  amalgamation ;" 
Mr.  Kitson  in  the  chair. 

The  Secretary  having  announoed  that  the  preliminary  arrangemeBts  for 
the  amalgamation  were  not  sufficiently  matured  to  be  taken  into  considera- 
tion at  that  meeting,  and  tibat  an  adjomnment  would  be  necessary. 

The  Chairman  explained  that  at  the  time  the  meeting  was  oaUed,  the 
directors  thought  they  would  be  in  a  position  by  then  to  present  to  the 
shareholders  such  an  arrangement  as  they  could  adopt  with  advantaae,  bat 
although  the  arrangements  had  not  been  broughtto  that  point  whi^  they 
expected,  stiir  he  thought  it  right  to  inform  them  that  no  adverse  eorcum- 
stances  had  aiisen.    The  negotiations  were  still  pending  and  ftdvancing 


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Finan:ial  Association  of  India  and  China.  1373 

f avotirably.  No  obBtacles  had  been  thrown  in  the  way.  It  was  Bimply 
"becanse  sufficient  time  had  not  been  given  to  bring  the  negotiation  to  a 
condtuBion.  He  hoped,  however,  that  by  the  5th  of  December,  to  which 
day  he  would  propose  an  adjournment,  everything  would  be  in  readiness, 
and  that  an  arrangement  would  be  submitted  to  them  of  a  satisfactory 
character. 

Some  slight  discussion  ensued,  in  the  course  of  which  information  was 
sought  as  to  the  name  or  character  of  the  company  with  which  the  pro- 
posed amalgamation  was  to  take  nlace,  and  also  as  to  how  the  adjourn- 
ment would  affect  the  call  which  haa  been  made. 

The  Chairman  ! thought  it  would  not  be  wise  at  that  stage  of  the  pro- 
ceedings to  give  the  information  respecting  the  company  wiUi  whidi  their 
undertaking  was  about  to  amalgamate.  At  the  meeting  on  the  5th  of  De- 
cember, however,  they  would  to  supplied  with  all  information,  and  he  had 
no  doubt  that  the  other  company  would  by  that  time  be  in  existence. 
Respecting  the  call,  it  was  made  for  the  purpose  of  giving  effect  to  the 
arrangements  for  the  amalgamation.  There  was,  however,  no  intention  of 
^ifoTcing  that  call  until  these  arrangements  were  complete,  so  that  no 
interest  would  accrue  through  non-payment  on  the  date  specified,  and  the 
shareholders  would  attend  the  meeting  on  the  5th  December  precisely  in 
the  same  position  as  to-day. 

The  explanation  seemed  to  give  general  satisfaction,  and  on  the  motion 
of  the  chairman  the  meeting  adjourned  till  Tuesday,  the  5th  December. 


FINANCIAL  ASSOCIATION  OF  INDIA  AND  CHINA. 

Thb  following  circular,  with  statement  attached,  has  been  circulated  among 
the  shareholders  of  this  association : — 

"  Sir, — I  am  instructed  by  the  board  of  directors  to  hand  you  herewith 
copy  of  balance-sheet  and  profit  and  loss  account  of  the  association  for 
half-year  ending  30th  ultimo.  Although  the  articles  of  association  only 
require  the  books  to  be  balanced  once  a  year,  the  directors  have  thought 
it  advisable  to  institute  a  special  investigation  into  the  state  of  the  com- 
pany's affairs  at  the  present  time,  with  the  view  of  ascertaining  to  what 
extent  it  had  suffered  from  the  effects  of  the  recent  commercial  crisis  in 
Bombay ;  and  the  result  of  this  investigation  is  now  published  for  the 
purpose  of  satisfying  shareholders  as  to  the  soundness  of  the  company's 
present  position.  In  addition  to  the  accompanying  accounts,  the  directors 
have  caused  a  very  careful  estimate  to  be  made  of  the  probable  losses 
arising  on  the  outstanding  transactions  of  the  association,  from  which  it 
appears  that  the  probable  total  loss  will  amount  to  Bs.  13,95,461-15-9,  to 
meet  which  there  is  at  the  credit  of  reserve  fund  Rs.  10,00,000,  and  at  the 
credit  of  profit  and  loss  account  Bs.  6,07^04-9^,  showing  a  probable 
surplus  of  Bs.  2,11,742-9-6  remaining  at  the  credit  of  these  two  accounts. 
This  estimate  is,  of  course,  subject  to  increase  or  diminution  according  as 
the  transactions  involved  may  realise  a  larger  or  smaller  amount  than 
that  at  which  they  have  been  valued;  but  the  directors  confidently  antici- 
pate that  the  ultimate  result  of  these  realisations  will  be  even  more  favour- 
able than  the  estimate  here  presented.  The  sum  of  Bs.  10,00,000  at  the 
credit  of  reserve  fund  at  31st  March  last,  having  been  deposited  for  fixed 
periods  with  the  Commercial  Bank  of  India,  Asiatic  Banking  Corporation, 
and  the  Boyal  Bank  of  India,  in  terms  of  the  intimation  made  to  that 
effect  at  the  general  meeting  of  shareholders  held  on  the  10th  April  last, 
and  having  been  thereby  excluded  from  the  ordinary  business  operations 
of  the  association,  the  directors  think  it  right  to  intimate  their  intention 


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1374  Financial  Assodatim  qf  India  and  China. 

of  withdrawing  the  same  at  the  earliest  opportmiityy  and  employing  ifc  to- 
wards meeting  the  losses  which  the  company  haa  austained.  The  diiecion 
regret  to  announce  that  Mr.  Cowaajee  Jehangeer  Beadymoney  haa  been 
compelled,  from  iU-health,  to  resign  hia  seat  at  the  bourd,  bat  they  haye 
the  pleasure  of  annonncins  that  his  place  haa  been  supplied  by  the  Hooonr- 
able  Rnatomjee  Jamsetjee  Jejeebhoy.  who  haa  conaent^  to  act  as  a  director, 
and  who  haa  been  elected  accordingly.^' 

Baianee^heei  fitt  the  Hatf-year  ending  SOft  September,  1865. 

UABILXTDn. 

Paid-np  capital          Bs.    60,00,000  0  0 

Reserrefund    10,00,000  0  0 

Amoant  of  fixed  deposits  bearing  interest     32,06,840  7  9 

Unpaid  dividends       93,500  6  6 

Balanoe  of  rebate  account          83,326  6  7 

Balance  of  profit  and  loss  account       6,07,204  9  3 

Bs.  1,09,29371  14    I 

ASSETS. 

Inyestments     ^ Bs.      4,19,590    0    0 

Amoant  of  loans  on   securities  and  bills  discounted, 

including  past  due  loans,  bills,  contracts,  &c 

Balance  on  agency  account         

Do.        suspense    do.  

Value  of  stamps  on  hand 

Value  of  office  ftuniture      

Amount  deposited  in  banks  on  account  of  resenre  Aind   . . . 

Balanoes  in  banks     

v^asQ        ...       «••      ...       ...       ...       ••.      •«•       ...       •*. 


06,16,137 

1 

4 

51.713 

6 

1 

33,442  12  10 

1,518 

4 

5,904 

0 

10,00,000 

0 

3,41.575 

5 

59,991 

0 

Bs.  1,09.29.871  14    1 


Dr.  Prqfit  and  Loss  Account  at  80fA  September,  1865. 

Amount  transferred  to  reserre  fund     Bs.  2,00,000    0  0 

Dividend  to  31st  March,  1865,  on  Rs.  60,00,000 7,63,150    0  0 

Income  tax  paid        46,941  14  0 

Charges 51,676    6  4 

Stationery         .„      1,068    3  0 

Biokerag|e         • '  ...      »••      ...  15,335    6  0 

Loss  on  mrestments          ••  2,76,596    5  0 

Balance  of  profit  at  30th  September,  1865,  carried  forward 

to  next  account      6,07,204    9  3 

Bs.  19,61.972  U  7 
Cr.                                                                                   ==ss^ss 

Balance  brought  forwar&from  last  half-year        15,64,730    4  10 

Proportion  of  profit  on  shares  brought  for  cash  and  sold  for 

future  deliyery  belonging  to  the  period  from  31  si  March 

to  1st  July,  1865             1,71,992    0  0 

Commisfion       11J270    3  7 

Discount           ...      .«•      ...      55»830    6  4 

Interest 1,55,370    6  10 

Dividends  received    ...      570    0  0 

Sundry  profits,  less  sundry  expenses 2,209    6  0 

Bs.  19,61,972  11  7 


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1375 


ANOLaEGYPTIAN  BASK,  LIMITED. 

Ths  second  ordinary  general  meeting  of  the  shareholders  of  thin  bank  was 
held  on  the  23rd  Novembor,  at  tiie  London  Tavern,  Bishopsgate  Street, 
to  reoeive  the  report  of  the  directors  and  a  statement  of  accounts,  to  de- 
dare  a  dividend,  and  for  general  purposes.  At  two  o'clock  the  chair  was 
taken  by  G.  G.  MTherson,  Esq.,  diairman  of  the  board  of  directors,  and 
governor  of  the  Agra  and  Masterman's  bank. 

Mr.  0.  Foa  (secretary)  having  read  the  advertisement  convening  the 
meeting,  the  following  report  was  read  :-^ 

"  The  directors  have  much  pleasure  in  presenting  to  the  shareholders 
their  balance-sheet  for  the  firat  financial  year. 

^It  shows  a  net  profit  of  £67,344. 8«.  ll<i.,  or  more  than  16  per  cent,  per 
annum,  on  the  paid-up  capital,  which,  on  the  average,  has  been  only  ten 
months  in  the  hands  of  tiie  directors,  and  they  have  divided  it  in  the 
following  manner :— > 

1.  Interim  dividend  paid  for  the  first  half-year,  at 

8^.  per  share  £16,000    0    0 

2.  Decl£u:ed  dividend  for  the  second  half-year,  at 

183.  per  share  86,000    0    0 

3.  Bepaymeni  of  preliminary  expenses 10,703    6    8 

4.  Balance  carried  forward  4,611    2    3 

£67,344    8  11 


'*  The  shareholders  will,  no  doubt,  consider  this  result  satisfactory, 
especially  when  it  is  remembered  that  the  prevalence  of  cholera  in  Egypt 
was  so  great  that  business  there  was  almost  at  a  stand-still  for  some 
months. 

**  It  will  be  gratifying  to  the  shareholders  to  be  assured  that  the  bank 
has  made  no  bad  debts,  nor  experienced  any  losses  whatever  in  its  exten- 
sive transactions,  notwithstanding  the  monetary  crisis  which  caused  so 
many  failures  in  Europe,  and  more  particularly  in  the  East. 

^  The  directors  are  glad  to  be  able  to  state  that  the  business  of  the  bank 
progresses  steadily ;  and  as  the  prosperity  of  Egypt  is  largely  increasing 
under  the  liberal  and  enlightened  rule  of  His  Hig^ess  Ishmail  Pacha, 
the  A'^iceroy,  it  ia  obvious  that  the  prospects  of  the  bank  are  most  encour- 
aging. "  By  order  <rf  the  board, 

"  Octave  Foa,  Secretary. 

«  London,  15th  November,  1866." 

BALANCE  SBEXT. 

Dr. 
Capital  paid  up  £500,000,  less  calli  in  arrear,  £300,  making  a 

total  of         •••      •••      ...      •••      ••■ 

Bills  payable   ..«      .«•      •••      ..•      • ••      ..«      ••• 

Account  current  and  customers*  hnlasces 

Bebate  of  interest  * -  ••«      •      •••      ..• 

Unclaimed  deposits  

Profit  and  loss  • •••      


£499,700 

465,331 

892,563 

67,002 

400 

0 

38 

4 

4 
0 

0 

1 
8 
6 
0 

67,344 

8  11 

n,922.841 

il 

2 

S5 

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1376 


Angl(hEgyptian  Bank. 


Or. 

Osh  in  lumd  and  at  liaiiken*,  £15,675.  16f.  114.;  cadi  on 
deposit  at  bankera*.  £34,543.  7t.  KkL;  cadi  atAlexandiia, 
£84^26.  3#.,  £134,745.  6«.  9i.;  laUs  leoeivalile  in  London, 
£1,085317.    lit.   lOd.;     bills  leoeiTaUe    in    Alexandria^ 

£94,043.  16«.,  nuyung  a  total  of      £l,314,e06  14 

Acooonts  corrent  and  loans - ..«         550,938  18 

Jb  iztof  OS        •..      •••      •••      ••.      •■•      •••      >«■      •••      ••• 

Amount  paid  to  Messrs.  Fastre  and  Sinadino,  for  their  business 
as  per  articles  of  agreement  Ko.  10,  in  8,000  shares  of 

£12.  10#.  paidi^  100.000    0 

Prdiminary  expenses        10,703    6 

Interim  dividend     16,000    0 


7 

S 

92  16    6 


Dr.  PBonr  axd  ums  aocoext. 

Interim  dividend  paid  10th  April,  at  8#.  per  share 

J)iTidend,  at  18f.  per  share       

PteUminary  expenses • 

Balance  to  new  account ^ 


£1,992,341  16  2 

£16,000  0  0 

36^000  0  0 

10.703  6  6 

4,641  2  3 


£67,344    8  11 


Cr.  -_— 

Amount  brought  down  bein^  net  balance  after  deducting  all 
current  expenses,  adyertism^,  salaries,  and  all  expenses  of 
management,  printing,  stationery,  directors*  allowance, 
income-tax,  ftc £67,344    8  U 

£67,344    8  11 

r Balance  brooght  down  to  new  account      £4,641    2    3 

The  GhairmaD  said  that  as  the  report  had  been  for  aeTecai  days  in  the 
4ia&dB  ol  the  BhareholderBy  it  was  not  neoeasanrtfaat  he  ahould  detain  thoa 
by  many  obaervationay  but  in  moving  thai  it  be  adopted  he  wished  to  say 
one  or  two  words  on  liie  condition  ol  their  affiuis ;  and  in  the  first  jdaoe, 
he  should  say  they  had  reason  to  ocngratolate  themselvea  on  the  amoont 
of  profits  they  had  earned  daring  the  past  year,  and  especiaUy  that  it  wis 
done  in  an  exceptional  year  and  under  exceptional  circomstanoeB.  He 
might  remind  them  that  shortly  after  the  bank  was  set  on  foot  the  mone- 
tary affairs  of  this  country  were  in  a  most  nnsatiefactoiy  condition,  and  in 
process  of  time  its  effects  were  felt  in  ISgypt.  Public  confidence  was  almost 
entvrely  destroyed,  owing  in  a  great  measure  to  the  enormous  losses  bob- 
tained  by  cotton,  the  consequence  of  which  was  the  failure  of  many  re^ect- 
ftble  mercantile  houses  both  there  and  in  this  country.  While  Uiis  deprav- 
ing influence  was  felt  in  Alexandria  and  Oairo,  the  cholera  broke  out  and 
carried  off  an  enormous  number  of  people^  and  sudi  was  the  panic  created  that 
all  business  was  in  a  great  measure  suspended.  Now,  during  the  whole  of 
this  period  their  excellent  manager  in  Egypt  and  colleague  at  the  board, 
Joleet  Pastr^,  Esq.^  conducted  their  business  without  shrinking  from  any 
danger,  and  remained  at  his  post  «jnid  the  perils  by  which  he  was  sur- 
rounded. (Cheers.)  It  might  have  been  e^oected  that  a  gentleman  of  his 
age  and  position  would  have  hardly  exposed  himself  to  such  dangers,  but 
he  remained  at  his  post  and  conducted  their  business  in  the  midst  cf  eveiy 
difficulty.  (Cheers.)  He  mentioned  this  to  tiieshareholdera,  because  it  was 
nn  act  of  courage  and  heroism  not  often  performed,  and  thus  the  business 
of  their  bank  was  carried  on  during  that  frightful  period  without  any 
interruption  whatever.    (Hear,  hear.)    With  respect  to  the  business  of 


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Anglo-Egyptian  Bank.  137T 

the  bank  itself,  he  knew  it  was  thought  by  many  bb  of  reo^t  origin.  That 
no  doubt  was  quite  oorreot  as  regutled  London,  but  the  bank  in  Egypt 
had  been  carried  on  for  nearly  foriy  years  by  the  eminent  finn  of  Messrs. 
Pastr^  Frdres  and  Messrs.  Sinadino  ^  Co.,  of  Alexandria.  That  business 
was  transferred  to  the  present  company,  and  they  were  now  carrying  it  on 
with  the  result  seen  by  the  dividend  they  were  about  to  declare.  (Hear,, 
hear.)  Their  net  |xrofits  during  the  year  amounted  to  £67,84L  Ss,  lid. ;. 
and  if  their  preliminary  expenses,  amounting  to  £10,000,  were  comddered 
excessiye,  and  ought  not  to  be  paid  off  within  the  year,  he  should  only  say 
that  he  and  his  colleagues  were  of  a  different  opinion,  and  especially  in  the 
belief  that  these  expenses  ought  to  be  written  off  at  once.  (Loud  cries  of 
"  hear,  hear.'')  If  their  affairs  turned  out  as  fortunate  during  the  coming,, 
as  they  had  been  the  last  year,  they  would  be  enabled  to  set  aside  a  sum  of 
money  for  a  reserve  fund.  (Hear,  hear.)  He  was  also  happy  to  inform 
them  that  the  bank  made  no  bad  debts  during  the  year — a  circumstance 
entirely  owing  to  the  able  and  efficient  management  of  Jules  Pastr^  and 
G.  Sinadino,  Esqrs.,  to  whom,  in  consequence  of  their  devotion  to  their 
interests,  their  thanks  and  gratitude  were  eminently  due.  (Cheers.)  He 
did  not  wish  to  detain  them  by  any  further  observations,  and  should 
simply  move  that  the  report  of  the  directors  be  received  and  adopted,  and 
that  a  dividend  of  I85.  a  share  be  now  declared. 

Mr.  Eugene  Pastr^  seconded  the  motion. 

A  Shareholder  was  of  opinion  that  the  state  of  the  bank  was  very  satis- 
factory, and  thought  the  directors  acted  very  properly  in  writing  off  the 
preliminary  expenses.  (Hear,  hear.)  The  condition  of  their  affairs  was 
mainly  owing  to  the  able  management  carried  on  in  Egypt ;  and  for  his 
own  part  he  could  not  help  congratulating  them  on  having  a  model 
manager,  who  never  made  a  bad  debt  in  so  l&v^  a  number  of  transactions. 

The  Chairman,  in  reply,  quite  agreed  that  it  was  well  to  be  as  specific 
as  possible  in  reg^urdto  the  expenses,  assuring  the  shareholders  at  the  same 
time,  that  those  of  the  past  year  had  been  well  bestowed,  and  could  not 
have  been  made  less  without  injuring  the  bank.  The  item  of  £100,000 
to  Messrs.  Pastr^  and  Sinadino  consisted  of  8,000  shares  paid  up  to  £12.  IO0. 
and  he  intimated  that  after  a  reserve  fund  had  been  formed  the  board 
might  consider  the  expediency  of  devoting  a  portion  of  it  to  the  liquidation 
of  that  item.  The  rebate  on  bills  not  due  was  put  down  at  £67,000,  being 
calculated  at  the  rate  of  10  per  cent.,  and  although  that  would  not  be  aU 
profit,  the  balance,  whatever  it  might  be,  would  augment  the  profits  of  the 
next  half>year. 

Mr.  C^rstemberg  pointed  out  that  the  item  of  £100,000  paid  for  the 
business,  was  in  r^lity  more  analogous  to  preliminary  expenses  than  any- 
thing  else,  and  he  suggested  that  in  addition  to  the  reserve  fund,  which 
would  probably  be  created  by  a  new  issue  of  shares  at  a  premium,  there 
should  be  a  separate  fund  for  the  liquidation  of  the  item  in  question. 

Mr.  Josephs  observed  that  the  item  oonsistinff,  as  it  did,  of  shares,  the 
holders  were  subject  to  all  future  calls  and  to  the  various  incidents 
attending  the  position  of  shareholders.  He  preferred  to  see  the  sum 
treated  as  an  asset,  because  it  was  in  reality  a  portion  of  their  fixed 
capital.  Of  cour8e,if  they  chose  to  pay  it  off  the  dividends  would  be  larger, 
inasmuch  as  the  amount  applicable  for  division  would  be  divided  among 
the  holders  of  33,000  instead  of  40,000  shares. 

The  Chairman  felt  inclined  to  concur  in  the  suggestion  that  a  sinking 
fund  should  be  formed  for  the  purpose  of  liquidating  the  item  ;  and  he 
asfitoed  the  meeting  that  the  matter  would  have  the  serious  attention  of 
the  board. 


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1378  Fluctuations  in  Joint  Stock  Bank  Shares. 

The  report  and  aoeoiuits  haying  been  imanimooaly  adopied'and  the 
dividend  approved, 

A  Tote  of  thanks  was  next  mored  and  cwnied  to  the  audhoiBy  Messrs. 
Sawer  and  Harvey,  vrith  a  sum  of  £80  each. 

Mr.  E.  Maaterman  next  proposed  a  warm  vote  of  thanka  to  Messrs. 
Pastr^  and  Sinadino,  their  managen  at  Alexandria,  for  tha  mannfr  in 
which  they  discharged  their  duties.  It  was  most  profitable  and  creditable 
to  the  shareholders  to  have  dealings  with  men  of  snch  high  hcmoiir  and 
probity,  and  he  therefore  should  move  them  a  vote  of  sincere  thanks. 

Mr.  E.  Morrioe  thought  a  vote  of  that  kind  should  oome  from  the  share- 
holders, and  he  for  one  had  great  pleasove  in  adopting  and  moving  the 
vote  of  thanks  proposed  by  Mr  Masterman. 

Mr.  Fawcett  seconded  the  motion,  and  it  passed  onanimously. 

ThankB  were  next  voted  to  the  chairman,  the  board  of  directors,  the 
general  staff,  and  to  the  auditors  for  their  efficient  supervision  of  the 
accounts;  after  which  the  proceedings  terminated. 


THE  FLUCTUATIONS  IN  JOINT  STOCK  BANK  SHARES. 

The  Commercial  Circular  published  by  Messrs.  Seyd  <k  Co.  gives  a  very 
curious  table  of  the  variations  in  Joint  Stock  Bank  Shares  during  the  last 
three  years ;  from  this  we  extract  the  following,  showing  the  results  up  to 
the  end  of  October  last. 

Above  200  per  Cent  Fremiwn, 


London  and  Westminster  Bank 

London  Joint  Stock  Bank        

Provincial  Bank  of  Ireland      

Union  Bank  of  London  

National  Provincial  Bank  of  England 

National  Bank  

London  and  County  Bank        

Asiatic  Banking  Corporation 

(6  Months'  quotations.) 

Above  100  per  CenU  Fremixtm. 

Bank  of  London     

Consolidated  Bank  Limited     

Dank  of  England  ...         ••• 

Bank  of  New  South  Wales       ...         .. 
Agra  and  Masterman's  Bank  Limited 

City  Bank  

Chartered  Mercantile  Bank  of  India,  London 

and  China 

Union  Bank  of  Australia         

Bank  of  New  Zealand  


Above  BO  per  Cent,  Premium. 

Bank  of  Australasia       

North  Western  Bank  Limited 
National  Bank  of  Liverpool    ... 


When 

Avge.36 

Oct. 

Established  Months 

1865. 

1834 

339J 

380 

1836 

2831 

240 

1825 

258 

238 

1839 

239 

253 

1834 

233J 

267 

1835 

224 

217 

1836 

211 

287i 

1863 

266i 

280 

1855 

1871 

181 

1862 

164J 

150 

1694 

139 

149 

1817 

139 

120 

1833 

136 

130 

1855 

1261 

123 

VJH 

...        1864 

125J 

100 

1837 

1161 

120 

1861 

108^ 

65 

1835 

85 

80 

1804 

d3i 

47 

1863 

81| 

60 

Digiti 


ized  by  Google 


Fl^miuaUovw  in  Joint  Stock  Bank  8hure$.  1379 


Imperial  Ottoman  Bank  TJtoHai^         

Amance  Bask  Limited  

Bank  of  Victoria  • 

Coloikial  Bank 

Chartered  Bank  of  Indian  Australia,  and  China 
South  Australian  Banking  Company 

Above  25  per  Cent  Frtmium. 

Merchant  Banking  Company  Limited 

Imperial  Bank  Limited  

Land  Mortgage  Bank  of  India  Limited 

East  London  Bank  Limited      

Delhi  and  London  Bank  Limited        

Brazilian  and  Portuguese  Bank  Limited 
London  Chartered  Bank  of  Australia 
Commercial  Bank  of  India  and  the  East 

English  Joint  Stock  Bank  Limited     

London  and  Brazilian  Bank     ...         

Above  10  per  Cent.  Fremium, 

London,  Buenos  Ayres,  and  Biver  Plate  Bank 

Limited        

London  and  South  African  Bank         

Anglo- Austrian  Bank 

Bank  of  Egypt  

Mercantile  Exchange  Bank      

Metropolitan  and  I^oyindal  Bank      

Bank  of  British  Columhia       

Ionian  Bank        «        

Above  Par  per  Cent, 

Sdnde,  Punjaub,  and  Delhi  Bank  Corporation 

Lunited        1862  7^  40 

English,  Scottish,  and  Australian  Chartered 

Bank  ...        •••        ...        •••        ••• 

Midland  Banking  Company     

Standard  Bank  of  British  South  Africa 
Bank  of  Hindustan,  China,  and  Japan  Limited 
Anglo-Egyptian  Bank  Limited 

At  Discowit  to  10  per  Cent 

London  and  South  Western  Bank  Limited    ... 
English  and  Swedish  Bank  Limited 

European  Bank  Limited  

London  Bank  of  Mexico  and  South  America 
Limited        .••        •••        •••        •••        ••• 

Bank  of  Ot;u;o  limited.  

New  Zealand  Bankinff  Corporation  Limited 

Bank  of  British  Norm  America  

Oriental  Commerdal  Bank  Limited 

Anglo-Italian  Bank  Limited  

Eastern  Exchange  Bank  Limited' ,     • 


hen 

AvTg.36 

Oct. 

Hshed. 

months. 

1865. 

1862 

79 

65 

1862 

65) 

28 

1852 

65§ 

76 

1836 

64f 

68 

1853 

60 

22} 

1841 

52 

40 

1863 

43 

6 

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47} 

1863 

35i 

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1863 

33 

Par". 

1844 

32 

36 

1863 

30J 

5 

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30} 

25 

1845 

28 

24 

1865 

26 

26 

1862 

251 

9 

1862 

23 

m 

1860 

191 

15 

1863 

16 

»i 

1856 

14i 

24 

1863 

12i 

45 

1861 

Hi 

20 

1862 

11 

15 

1839 

10} 

4 

1852 

7} 

5 

1863 

5| 

10 

1862 

5} 

40 

1862 

4 

20 

1864 

2} 

12 

1862 

1 

5 

1864 

2 

26 

1868 

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20 

1864 

n 

3j 

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Whsn    . 

Ai^e.36 

Od. 

EstftUiehed  M^irtlu 

1885. 

1862 

13i 

14 

1802 

IH 

26 

1864 

18i 

40 

1864 

261 

45 

1864 

271 

40 

1864 

30t 

85 

1864 

m 

12 

1380  UuefuatioM  in  Joini  Stock  Bank  l:kar^. 


At  DiscoufU  helow  IQptr  Cent, 

Bank  of  QaeenalaEid  Limited 

Union  Bank  of  Ireland  Limited 
British  and  CaHfomian  Bank  Limited 

International  Bank  Limited     

Provincial  Bank  Corporation  Limited 

Albion  Bank  Limited 

London  and  Venezuela  Bank  limited... 

The  following  banks  are  not  quoted  at  present  on  the  London  Stoek 
Exchange.  They  are  generally  branches  or  agencies  of  highly  respectaUe 
Scottish,  or  Australian,  or  Indian  Banks,  whose  head-quarters  and  Shaie- 
holders  are  not  in  London  : — 

National  Bank  of  Scotland  Branch  (one  of  the  first  Scotch  Banks) 
Commercial  Bank  of  Sydney 
Boyal  Bank  of  India 
National  Bank  of  Australia 
Central  Bank  of  Western  India 
London  and  Bombay  Bank 

The  following  banks  are  either  not  quoted  on  the  Stock  Exchange,  or 
their  affairs  are  not  sufficiently  developed  : — 
G^ierfld  Exchange  Bank  Limited  (lately  London,  Hamburg  and  Con- 

tinental  Bank) 
ChaUis's  Banking  Company  Limited 
Cniversal  Banking  Company  Limited 
Boyal  Military  and  Naval  bank  Limited 
Madrid  Bank  Limited 

The  following  banks  cease  to  exist : — 
South  Eastern  Bank  Limited  changed  its  name  to  English  Joint-Stock 

Bank  Limited  when  sstablishsd. 

Anglo-Portuguese  Bank  Limited  ...     1863  "] 

English,  Belgium  and  Netherlands  Bank  | 

Imperial  KoVciiinalidJaiin      Z  ^^    l^iTr^S^^t.^ 

LoidonA  South  American  Bank  limited  1862    ^^***^   ^^^    ^^   ^^ 

Mexican  Bank  Limited 1864 

Union  Bank  of  England  ^  France  Limited  1862 

Bank  of  Wales  Limited 1863 

Continental  Bank  Corporation  Limited  1862 

London,  Birmingham  and  South  Stafford- 
shire Bank  Limited 1862 

English  and  Irish  Bank  limited  ...  1862 

London,  Hamburg  and  Continental  Bank 

Lin>ited  1863 

London  and  Mediterranean  Bank  limited  1865   . 

BritiBh  Md;  American  Exdumge  Bank  \f„„^    i^    late,. 

Lomitea  ...  ...  ...  ...  loO«>    rn-tional  BabIt 

London  and  Colonial  Bank  Limited      ...  -dmik. 

London  Bank  of  Scotland  1863 

London  and  Scottish  Bank  Limited      ...  1864 
Scottish    and  Universal  Finance  Bank 

Limited  1864 

London  and  Middlesex  Bank     1862 


and  equal  terms. 


have  amalgamated  with 
other  Banks  on  more 
or  less  unfavounUe 
terms. 


J 


are  winding  up. 


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Bombay  Chamber  €f  Commerce.  1381 

Total  increase  and  total  value  of  the  paid-up  bauking  capital  of  joint 
rtock  banks  in  Lozkbn  (indnding  the  Bank  of  England). 

NOYSMBBB,  1862. 
Capitals  paid-up,  £32,363,000. 

Value  as  per  quotations,  £69,799,000. 

An  average  of  116  per  cent,  premium. 

October,  1865. 
Capitals  paid-up,  £53,998,000. 

Value  as  per  quotations  £106,995,000. 

An  average  of  98  per  cent,  premium. 
The  increase  in  the  amount  of  capital  employed  is  67  per  cent.,  but  the 
oorresponding  increase  of  value  so  far  is  only  63  per  cent.  Some  three  or 
four  banking  companies,  who  ha^e  not  succeeded  in  amalgamating  in  time, 
are  being  wound-up,  and  the  losses  of  these  may  amount  to  say  half-a- 
naillion,  which  ought  to  be  included  in  the  above.  It  must  also  be  borne 
in  mind  that  in  1862,  some  three  or  four  private  banking  firms  had  not 
yet  become  joint  stock  companies,  and  further  that  a  very  large  portion 
of  the  new  capital  is  employed  in  colonial'  and  foreign  banking  interests. 


BOMBAY  CHAMBER  OF  COMMERCE. 

THE  BIGHTS  OF  EXCHANGE  BANKS  WITH   BErEBEKGB  TO  DOCtJMENT  BILLS. 

A  SPECIAL  general  meeting  of  the  members  of  this  Chamber  of  Commerce 
waa  held  in  October  to  consider  the  question  which  has  lately  arisen  in 
England  as  to  the  rights  of  exchange  banks  in  reference  to  document 
bills.  Mr.  A.  J.  Hunter  (of  Messrs.  W.  and  A.  Craham  (b  Co.)  occupied 
the  chair,  and  about  twenty  other  members  were  present. 

The  Chairman  said  the  meeting  had  been  called  in  consequence  of  his 
receiving  a  requisition  to  do  so  from  some  of  the  principal  merchants  of 
Bombay.  He  would  not  occupy  the  time  of  the  chamber  by  making  any 
lengthy  remarks  upon  the  subject  which  the  meeting  was  called  to  ducuss, 
as  Mr.  Andrew  Grant,  one  of  the  signers  of  the  requisition,  was  present, 
and  he  would  no  doubt  enter  fully  into  the  question ;  but  he  (the  chair- 
man) might  mention  that  he  had  obtained  copies  of  the  letters  of  hypo- 
thecation used  by  all  the  banks  of  Bombay.  These  he  might  divide  into 
four  classes,  although  with  the  exception  of  that  used  by  the  Asiatic  Bank- 
ing Corporation,  they  were  verv  much  alike.  In  the  first  class  were  the 
Oriental  and  other  banks,  which,  on  default  of  payment  of  hypothecated 
bills  at  maturity,  retained  the  right  of  selling  the  goods,  or  a  part  of 
them,  and  applying  the  proceeds  in  payment ;  or,  in  other  words,  k  pay- 
ment is  tendered  at  maturity  the  bank  is  bound  to  give  up  the  documents 
to  the  acceptor.  In  the  second  dass,  a  great  many  banks  had  the  same 
clause  as  the  Oriental ;  but,  in  addition,  they  retained  the  right  of  selling 
the  goods  in  the  case  of  the  bankruptcy  of  the  drawee.  In  the  third  class 
were  banks  which  retained  the  right  of  selling  in  case  of  the  bankruptcy 
of  the  drawer,  provided  the  drawee,  on  being  required  to  do  so,  does  hot 
furnish  further  security  to  the  said  bank.  In  the  fourtii  class  was  the 
Asiatic  Banking  Corporation,  which  retained  the  right,  in  the  event  of 
the  failure  of  any  of  the  parties  to  the  bill,  to  sell  the  goods  and  retain 
VOL.  XXV.  104 


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1A62  JBomky  Chamber  qf  Camrnem^. 

thoL halfmoeaAieaiirlty  for  other  billB  due  to  thebaic  The 
ing  attached  to  letters  of  hypotbeeatioii  he  believed  to  be  Bubstantially  ike 
same  as  giving  security  for  a  loan — goods  -were  tendered  as  security  along 
with  the  documents,  and  they  were  handed  back  when  the  money  was  re- 
turned.  This  was  the  basis  upon  which  such  transactions  were  nsiaQy 
accomplished ;  but  the  proceedinga  of  the  Asiatic  Banking  Corpora&m 
were  totally  opposed  to  thisprinciple.  'With  the  exception  of  that  bank 
and  the  Central  Bank  of  Western  India,  none  of  the  banks  in  Bombay 
asserted  any  right  to  retain  documents,  provided  payment  is  tendered  }^ 
the  acceptor  of  the  bill.  The  question  thus  became  one  between  the  par- 
ties selling  the  bills  and  the  bank ;  and  the  proper  course  would  be  not  to 
sell  to  any  bank  having  such  monstrous  clauses  in  its  letters  of  hypotlie- 
cation.  .  The  remedy  lav  in  people's  own  hands,  and  if  they  refused  to  deal 
with  such  banks,  then  the  latter,  in  their  own  interests,  would  be  oUiged 
to  discard  such  clauses  altogether.  The  chairman  ooncluded  by  readiBg 
the  following  extract  from  the  hypothecation  letter  of  the  Asiatic  Banking 
Coiporation ; — 

•  We  further  authorise  the  Asiatic  Banking  Corporation,  or  any  manager 
or  agent  thereof,  on  default  being  made  in  acceptance  on  presentment  or 
in  payment  at  maturity  of  any  of  Hie  above  bills,  or  charges  pertaining  to 
the  same,  or  should  the  drawees  or  any  of  the  parties  to  such  bills,  prior  io 
the  maturity  of  the  said  bills,  have  suspended  payment,  have  become 
bankrupt  or  insolvent,  or  have  compounded  with  their  creditors,  or  have 
signed  a  deed  of  inspectorship,  to  sell  the  said  goods  or  a  competent  part 
thereof  at  any  time  thereafter,  without  wuting  for  the  maturity  of  the 
bills^and  without  either  notice  to  or  concurrence  on  the  part  of  any  person 
or  persons,  and  to  apply  the  net  proceeds  (after  deducting  usual  com- 
mission and  charges)  in  pajrment  of  such  bills  with  re-exohaiige  and 
diarges ;  and  we  authorise  the  corporation  to  hold  and  retain  the  goo^ 
while  unsold,  and  the  balance  of  tne  net  proceeds  when  sold,  as  aeenii^ 
for  and  towards  the  payment  of  any  other  bill  or  bills,  which  any  of  IIm 
managei^  or  agents  of  the  said  bank  may  have  purchased  from  v,  «r 
^waras  the  security  or  liquidation  of  any  claim  the  bank  may  have  wpaa 
.  Wm  or  otherwise  to  be  at  our  disposal'* 

Mr.  Andrew  Grant  (of  Messrs,  Campbell,  Mitchell  &  Co.)  said  1m  eos. 
sidered  the  subject  which  the  Chamber  b^d  met  to  discuss  to  be  cam  ef 
▼ery  great  importauce  to  the  mercantile  community :  for  it  was  one  wkid^ 
if  not  settled  at  once  in  a  satisfactory  manner,mighi  lead  to  embaRaasueai 
and  mischief  of  which  it  was  impossible  to  see  the  end«  Hmtb  was 
nothing,  they  would  all  admit,  more  prejudicial  to  business  generally,  er 
which  cut  at  the  root  of  credit  and  confidence,  than  any  donbf 


donbt 
between  merohanta  and  their  bankers.  The  bankers  who  had  taken  i  ^ 
in  this  case  might  say  to  us— ^'If  you  look  at  the  papers  you  have  signed 
you  will  see  we  have  doue  notbilig  but  what  we  are  entitled  to  ^ 
by  this  hypothecating  document  /'  but  the  mercantile  oommuniiy  were 
bound  to  take  into  consideration  the  suspension  of  mercantile  naagein 
this  transaction  ;  and  all  would  agree  with  him  that  the  usage  ef 
Bombay  had  baeu,  that  vheu  documentary  bills  were  taken  up  cstker 
by  the  party  on  whom  they  are  drawn  and  accepted,  or  any  other  party 
for  the  honour  of  the  drawer^  when  the  acceptor  was  not  able  to  take 
them  up  at  maturity,  it  was  the  custom  of  the  bank  to  surrender  tks 
^ourity  which  had  been  lodged  with  them  against  these  doovneBtey 
bilk.  And  it  stands  to  reason  that  such  should  be  the  case  :  iar 
if  one  merchant  was  always  doing  business  with  the  same  merekaBl  a* 


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Bombay  Chamber  of  Commerce.  1883 

Jtome,  it  might  be  reasonable  for  a  bank  to  say  ^'^  We  are  in  tncli 
and  anch  a  position,  and  will  retain  the  aeoority  we  hold  and  place  it 
against  yonr  other  obligations  ;"  bat  there  were  thousands  of  other  caaet 
in  which  the  acceptor  and  the  drawer  of  a  bill  were  different  from  day  to 
day.  He  might  cite  as  an  illustration,  the  case  of  a  merchant  iu  Enp^land 
sending  an  order  for  cotton  to  a  merchant  in  Bombay,  and  telling  him  to 
draw  against  the  cotton — supposing  the  price  to  be  £20  a  bale — ^to  the 
amount  of  £12,  and  to  draw  clean  bills  against  the  balance.  Both  being 
aooepted,  the  documentary  bills  were  given  as  security,  and  the  merchaat 
in  England  expected  to  receive  his  cotton  on  payment  of  the  other  £12  a 
bale  to  the  bank ;  but  supposing  the  cotton  had  risen  to  £25  a  bale,  the  bank 
stepped  in  and  said — "  We  will  keep  your  cotton  and  place  the  money  to  the 
credit  of  the  drawer."  Now,  was  not  this  a  very  hard  case  for  the  owner 
of  the  cotton  ?  On  tendering  the  money  for  the  documents  he  had  paid 
£8,  but  when  he  offered  to  pay  the  other  £12,  he  was  staggered  when  he 
was  refused  and  told  that  the  £25  was  to  be  retained  against  some  bill 
which  he  owed  to  the  bank.  Many  things  had  occurred  during  the  last 
twenty  years  to  consignees  at  home ;  but  the  owners  of  documentary  bilfti 
always  trusted  to  the  usage  of  those  bills  being  given  up  to  them  when  the 
money  was  paid.  Just  let  them  imagine  the  position  of  a  merchant  when 
a  bank  retained  his  documents  on  account  of  some  transaction  which  he 
'  never  heard  of !  Why,  if  the  determination  which  two  of  the  Bombay 
banks  had  expressed  on  this  subject  were  acted  on,  the  mercantile  eom- 
munity  would  be  led  into  the  greatest  embarrassment.  He  thou^ 
the  Asiatic  Banking  Corporation  had  gone  fxirther  than  any  other  bank 
would  be  inclined  to  go;  and  as  a  proof  of  this  he  might  mentioa 
a  case  which  had  occurred  to  himself.  One  day  a  native  called  on  him  aaifll 
said  he  had  consigned  a  quantity  of  cotton  to  a  firm  in  Liverpool ;  bat  as 
it  had  suspended  payment,  he  wished  the  documents  to  be  sent  to  his  (lEr, 
Grant's)  agents  there,  and  the  cotton  sold  on  his  account.  In  his  ignorance 
of  any  obstacle  in  the  way,  he  made  arrangements  for  the  cotton  being 
add,  and  a  power  of  attorney  was  sent  to  his  agents  at  Liverpool*  The 
agents  went  to  the  Asiatic  Bank  and  asked  to  have  the  documents  snrrea- 
dared  to  them  on  payment  being  tendered ;  but  the  bank  said  that  owJBS[ 
to  the  failure  of  the  drawee,  they  intended  to  exercise  the  right  contaiasd 
in  their  letters  of  hypothecation,  and  to  sell  the  cotton  and  apply  the 
balance  in  liquidation  of  the  drawee's  obligations  to  them.  Now  iinn  was 
ratiier  a  stretch  of  authority.  The  chairman  had  told  them  that  the 
Asiatic  and  Central  Banks  intended  to  push  their  determination  so  far  ai 
to  retain  documents  when  it  suited  them  to  do  so,  and  to  sell  the  goods  to 
which  they  related  to  cover  other  liabilities.  This  course  placed  exehmgd 
banks  in  a  different  position  to  that  they  formerly  occupied,  ThSy 
announced  that  it  was  by  exchange  to  which  thev  looked  to  make  their 
profits  :  but  if  they  acted  as  they  said,  we  should  hear  of  them  beoomisg 
cotton  m^xhants,  and  buying  or  selling  document  bills  as  they  tho«|(ht 
the  cotton  market  wotdd  be  higher  or  lower  at  home.  Be  thought 
the  chairman'a  remarks  very  much  to  the  point,  and  he  also  thoo^ 
that  il  some  of  the  bankers  of  Bombay  were  going  to  pursue  such  iMk 
eccentric  course,  the  merchants  must  bind  themselves  together  ao4| 
say  to  them  — "  If  you  are  going  to  act  in  this  manner,  we  must 
transact  our  business  elsewhere.  Were  the  merchants  to  act  io  this 
manner,  the  banks  would  very  soon  come  to  their  senses.  He  thought 
that  if  the  Committee  of  the  Chamber  were  to  place  themselves  in  com- 
munication with  the  banks  in  question,  and  explain  to  them  the  hardship 


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1384  Bombay  Chamber*  of  Commerce. 

which  such  a  oourse  as  they  were  pnrsniiig  entailed,  they  would  see  how 
dfieiiable  it  was,  for  their  own  interests,  to  return  to  the  custom  which, 
formerly  prevailed  between  the  mercantile  community  and  the  banks  of 
Bombay^ that  when  the  billb  w^re  taken  up  by  the  accepter,  or  by  the 
igent  of  the  drawer,  at  the  time  of  maturity,  the  bank  waa  bound  to 
deliver  up  all  the  documents  which  were  lodged  with  it  as  collateral 
security.  If  the  committee  would  do  this,  and  explain  what  the  feeling 
^£  the  mercantile  community  was  on  the  matter,  he  thought  they  would 
abandon  their  present  oourse,  and  adliere  to  that  which  had  hitherto  beoi 
i^Uowed  in  Bombay. 

The  Cliauman  said  he  knew  a  case  where  the  drawer  of  a  bill  was  sol- 
vent, but  the  drawee  became  bankrupt ;  and  the  bank  refused  to  give  up 
the  surplus  of  the  amount  due  to  the  drawee.  The  case  of  Dewjee  Fran- 
jee  had  also  been  brought  to  his  notice.  This  gentleman  consigned  a 
'quantity  of  cotton  to  two  firms  in  Liverpool,  both  of  whom  failed,  and  on 
bus  writing  home  to  the  firm  of  David  Sassoon  and  Co.,  asking  them  to 
take  up  the  bill  for  his  honour  and  receive  the  documents,  the  bank 
refused  to  allow  them  to  do  so,  and  paid  the  money  to  the  liquidation  o£ 
the  debts  of  another  firm.  It  was  a  great  hardship  to  prevent  the  owner 
of  the  goods  from  receiving  them  on  payment,  and  making  him  responsiUe 
for  debts  with  which  he  had  nothing  whatever  to  do;  but  by  the  letters 
of  hypothecation  he  thought  the  bank  was  justified  in  doing  so. 
.  ULr,  Peter  Adams  (of  Messrs.  Edward  Bates  <k  Co.)  pointed  out  that  by 
letters  of  hypothecation  the  interests  of  endorsers  were  not  adequately 
protected.  It  seemed  to  him  that  the  bank  should  be  in  a  position  to 
secure  the  proceeds  of  goods  in  case  of  default  of  payment  at  matvrity, 
but  stiUl  he  thought  that  it  should  hold  the  defaidting  party  responsible 
for  any  loss  which  might  accrue  to  the  endorser. 

Mr.  Alexander  Brown  (of  Messrs.  W.  Nicoll  k  Co.)  concurred  in  what 
had  been  said  about  the  objectionable  nature  of  letters  of  hypothecation 
of  the  Asiatic  Banking  Corporation ;  but  he  thought  there  would  be  aome 
delicaey  in  the  Committee  of  the  Chamber  remoncitrating  with  them  on 
the  subject.  He  thought  it  would  meet  the  case  if  the  meeting  expressed 
its  opinion  of  the  bank's  departure  from  the  mercantile  usage  of  Bombay, 
and  of  the  hardship  which  it  entailed  upon  parties  selling  document  bilk. 

The  Chairman  said,  that  as  the  whole  affair  was  merely  a  private  trans- 
Action  between  the  bank  and  its  customers,  the  Chamber  had  no  right  to 
interfere.  All  they  could  do  was  simply  to  pass  a  resolution  exprenng 
their  opinion  that  the  course  pursued  by  the  bank  was  oontraiy  to  the 
usage  and  to  the  individual  interests  of  tiie  mercantile  community.  He 
therefore  begged  to  move  the  following  resolution : — *^  Resolved— That  in 
the  Opinion  of  the  Chamber  the  course  adopted  by  the  Asiatic  Banking 
Corporation  and  the  Central  Bank  of  Western  India  in  refusing  to  receive 
payment  of  bills  from  any  of  the  parties  to  the  same,  and  to  deliver  up 
shipping  documents  hypothecated  to  those  banks  as  coUatetal  seeuri^ 
therefor,  is  contrary  to  mercantile  usage,  and  tends  to  obstruct  bufdness 
apd  interfere  with  mercantile  confidence.  That  the  Chamber  leave  the 
eoinlnittee  to  take  whatever  steps  they  may  'consider  neoesaaiy  for  the 
protection  of  its  members  and  the  public." 

Mr.  Andrew  Grant  seconded  the  resolution,  which  was  carried  unaai- 
mously,  and  tho  meeting  broke  up. 


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1386 


THE  REDUCTION  OF  THE  BANK  RATE  OF  DISCOUNT. 

Whilst  everybody  a  fortnight  or  three  weeks  ago  was  expect- 
ing, if  not  an  advance  in  the  rate  of  discount,  at  least  a  mam** 
tenance  of  the  official  minimum,  the  accounts  of  the  Bank  have  so 
rapidly  improved  that  there  has  been  a  reduction  of  1  per  cent. 
From  7  the  quotation  has  gone  back  to  6,  and  now  some  people 
are  sanguine  enough  to  imagine  that  it  may  go  to  5  per  cent. 
We  ourselves  arc  not  so  sure  of  that,  because,  although  there 
is  not  much  activity  in  the  open  market,  the  Bank,  through  the 
payments  on  account  of  the  revenue,  &c.,  possess  the  principal 
of  the  resources,  and  they,  for  the  moment,  command  the  be^ 
business.  If  it  is  therefore  recorded  that  the  Bank  is  absorbing 
the  principal  discount  transactions,  whilst  out  of  doors  the 
brokers  and  others  are  doing  next  to  nothing,  it  will  be  quite 
sufficient  to  support  the  price  even  should  it  not  eventually 
lead  to  an  advance. 

The  Bank  of  Fance,  simultanoou-^ly  with  its  reduction  froin' 
7  to  6  per  cent.,  placed  their  rates  from  5  to  4  per  cent.,  and 
that  establishment  stands  in  a  more  favourable  position  tiiaik 
it  did  a  week  or  two  ago.  There  ought  to  be  now,  in  both 
establishments,  a  steady  return  of  money  from  the  provinces, 
whither  a  large  amount  of  notes  and  coin  is  always  sent  in  the 
autumn  to  assist  in  the  development  of  agricultural  operations* 
Besides  this,  in  our  own  case,  wc  shall  have  the  reflux  of  sove- 
reigns from  Ireland,  and  the  excess  of  the  arrivals  from  America, 
West  Indies  and  Australia,  beyond  what  may  be  required  for 
export  to  India  and  the  East. 

Nevertheless,  we  are  now  steadily  approaching  that  period  of 
the  year  when  money  is  required  for  the  completicHi  of  every 
kind  of  engagement,  and  when  the  rate  is  more  likely  to  be 
supported  than  decreased.  Should  the  quotation,  by  any 
fortuitous  combination  of  circumstances,  recede  to  5  per  cent., 
it  will  assist  greatly  to  carry  over  satisfactorily  the  final  opera* 
tions  of  December.  But  it  must  also  be  remembered  that  a 
reduction  will  be  calculated  to  give  a  stimulus  to  the  intro- 
duction of  fresh  loans,  fresh  companies^  from  a  surfeit  of  which 
we  are  now  suflTering,  and  the  securities  connected  with  whic?x 
greatly  embarrass  the  ordinary  course  of  transactions  at  the 
Htock  Exchange. 

With  the  rate  remaining  at  6  per  cent,  no  great  inconven- 
ience will  now  be  experienced  by  the  commercial  public,  tmcl 
the  maintenance  of  this  price  will  be  a  check  to  the  organiza-* 
tion  of  undertakings  which  make  capital  temporarily  unproduo- 


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1386  Conterm<m  of  He  OUoman  Debt. 

tiye  and  lead  to  renewed  speculation,  and  finally  to  a  collapse. 

A  word  of  advice  to  promoters  and  others  will  be  to  delay  any 
large  number  of  schemes  till  the  spring,  when  the  money 
laarket  generally  may  be  in  a  much  more  healthy  state  to 
xeceiYe  them. 


BANK  OF  TTTRKET 

The  Ottoman  Company,  Limited,  invite  applications  for  the  capital  c/ 
ihe  Bank  of  Turkey,  Limited.  The  amount  is  £1,000,000,  in  20,000 
shares  of  £50  each,  with  power  to  increase.  The  first  issue  is  to  be 
10,000  shares.  Tlie  deposit  is  placed  at  £1  per  share  on  applicadoo 
and  £4  on  allotment ;  the  calls  not  to  exceed  £5  per  share,  and  st 
intervals  of  not  less  than  three  months.  It  is  stated  that  this  oompany 
is  formed  at  the  express  solicitation  of  merchants  and  others  engaged 
in  trading  and  monetaiy  operations  in  the  Ottoman  empire,  for  the 
purpose  of  extending  to  the  community  of  Turkey  that  Intimate  tad 
which  in  more  favoured  countries  is  rendered  necessary  to  commeroe 
bjf  well-conducted  banking  institutions.  The  Imperial  Ottoman  Bank 
is  the  only  bank  in  Turkey,  and  therefore,  it  is  contended,  there  is 
plenty  of  room  for  other  similar  institutions. 


CONVERSION  OP  THE  OTTOMAN  DEBT. 

Thb  General  Credit  and  Finance  Company  of  London.  Limited,  hsTe 
received  the  following  notice  from  the  Imperial  Ottoman  Oovemment  for 
publication.  It  will  be  perceived  it  aUowa  an  extension  of  time  for  liie 
jBrufeiess  ol  the  conversion.  It  is  stated  that  the  oon  version  of  the  intemsl 
debt  of  the  Ottoman  empire  had  reached  nearly  21,000,000  sterling  at  that 
date:— 

[Translation.] 

^' OOKVEBSION     AND     ITNIFICATIOK     OF     THB     ISTSBJXAJL    DBB1S     OT    TBI 
OTTOMAK  XMFIIU. 

"Official  Notice. 

'^  The  Imperial  €U>vemmont,  taking  into  consideration  the  circumstaaeaa 
which  have  impeded  the  progress  of  uie  conversion,  principally  the  choleza 
i^ch  has  scourged  Constantinople,  and  the  unforeseen  delay  in  the  fabri- 
cation of  the  bonds  of  the  general  debt,  has  determined  not  to  enforce  the 
raduotion  of  10  per  cent.,  which  was  applicable  in  virtue  of  the  tenns  of 
article  11  of  the  law  of  the  19th  (3l8t)  March,  1865,  to  the  secariticB 
presented  for  conversion  after  the  period  of  three  months,  and  during  the 
second  period  of  one  month  and  a  half  determined  by  said  article. 

''  In  consequence  the  securities  of  the  iotemal  debt  will  continue  to  be 
received  for  conversion,  without  reduction,  up  to  the  19th  (Slst)  Deoembv 
1965,  on  the  same  terms,  in  the  same  form,  and  at  the  same  plaoos  as 
before. 

^  At  the  e3q>iration  of  this  last  period  the  operations  of  the  eonvenkHi 
will  be  dosed  irrevocably. 
-  **WkfP  days  after  the  definite  desi^g  the  coiqpoiis  for  laieml  doe  «ft 


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Tend$r$  far  Bilhan  India.  1887 

the  non-converted  secnrities  will  be  paid  at  Constantinople,  and  the  bearers 
will  be  entitled  to  interest  on  fhose  coiipons  from  their  due  date  to  the 
day  of  payment  at  the  rate  of  6  per  cent,  per  annum. 

(True  copy.) 
(Signed)  Abbo,  Commissioner. 

«  Nov.  16,1865." 


CREDIT  FONCIER  AND  MOBILIER  OF  ENGLAND. 

A  BPBdAL  audit  of  the  accounts  of  the  Credit  Foncier  and  Mobilier  of 
England  has  just  been  effected,  and  the  following  is  a  copy  of  Messrs. 
Qoilter,  Ball  and  Co.*b  report : — 

"  3,  Moorgate  street,  Nov.  23. 
**  At  the  request  of  the  court  of  directors  of  the  Credit  Foncier  and 
Mobilier  of  England  Limited,  we  have  examined  the  company's  account 
books,  and  such  other  documents  as  we  have  thought  necessary  for  the 
purpose  of  testing  the  aocuraoy  of  the  balance-sheet  and  profit  and  loes 
account,  dated  the  30th  September,  1865,  annexed  to  the  report  presented 
to  the  shareholders  at  the  general  meeting,  held  tbe  24th  October,  1866. 
The  results  of  our  examination  enable  us  to  certify  as  follows : — h  That 
the  accounts  so  presented  are  in  due  accordance  with,  and  form  a  correct : 
summary  of  the  company's  books,  and  that  the  books  are  accurately  kept 
and  upon  a  proper  system.  2.  That  the  securities  comprised  in  the  balance- 
flheet  are  duly  held  and  accounted  for.  3.  That  in  estimating  the  value  of 
the  seourities  as  stated  in  the  balance-sh^et,  th^  were  taken  at  prices 
rather  below  the  quotations  appearing  in  the  official  lists  of  the  Stock 
Exchange  of  the  30th  September,  1865,  and  that  on  the  basis  of  such 
valuation  of  the  secuiities,  the  profit  and  loss  account  of  the  30th 
September,  1865,  exhibits  a  correct  view  of  the  profit  results  of  the 
eompany's  operations  to  that  date.  4.  That  the  commissions  paid  to  the 
directors  and  managing  director,  by  way  of  remuneration  for  their 
services,  have  been  strictly  within  the  limits  of  the  provision  made  for 
that  object  by  the  company's  deed  of  association. 

(Signed)  "  Qxjutbb,  Ball  &  Co." 


TENDERS  FOR  BILLS  ON  INDIA. 

Thb  biddings  for  35,00,000  rupees  in  bills  on  India  took  place  on  the 
2nd  November  at  the  Bank  of  England.  The  proportions  allotted  were— 
To  Calcutta,  19,16,000  rupees  ;  to  Madras,  5,84,000  rupees  ;  and  to 
Bombay,  10,00,000  rupees.  The  minimum  price  was  as  before — l^.  Hid, 
on  Calcutta  and  Madras,  and  Is,  ll}d.,  on  Bombay.  Tenders  on  Calcutta 
and  Madras  at  1«.  11  }d.  will  receive  about  52  per  cent.,  and  on  Bombay 
at  2s.  0|d.  about  17  per  cent.,  above  these  prices  in  full.  Further  biddings 
took  place  on  the  16th  November.  The  proportions  allotted  were^£> 
Calcutta.  26,38,000  rupees;  to  Madras,  15,000  rupees;  and  to  Bombay, 
10,00,000  rupees.  The  minimum  price  was  as  before~l«.  ll^d.  on 
Ciucutta  and  Madras,  and  Is.  11  }d.  on  Bombay.  Tenders  on  Calouttft 
and  Madras  at  2$.  will  receive  in  full,  and  on  Bombay  2$.  Old, ;  about 
90  per  oent.  above  these  pnoes  in  fulh 


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1388  CammnnieatioM. 


LONDON  AND  MIDDLESEX  BANK. 

Thb  foUowiog  circular  has  been    isstied   to  the  shareholders  of  tbe 
liondon  and  Middlesex  Bai^,  Limited^  in  liquidation  : — 

"  Sir, — ^I  am  instructed  by  the  directors  of  the  London  and  MiddJeMX 
Bank,  Limited,  to  inform  you  that  they  are  enabled  to  make  a  forfter 
return  to  tiieir  shareholders,  in  respect  of  the  capital  of  the  bank,  at  the 
rate  of  £1  per  share,  and  that  you  may  receive  the  amount  due  i^Km  tlie 
shares  registered  in  your  name  on  application  here  any  Monday  or 
Thursday  in  the  month  of  November  or  December  next,  between  the 
hours  of  ten  and  three  o'clock.  It  will  be  necessary  that  you  ahoiild 
forward  your  share  certificates  for  examination  a  few  days  before  you^iply 
for  the  amount  due  upon  them.  The  liquidation  of  the  bank  is  aow 
almost  completed,  and  when  a  final  settlement  can  be  arrived  at  any 
balance  remaining  will  be  distributed  with  a  statement  of  aoooimt.— lam. 
Sir,  your  obedient  servant, ' 

'' Oswald  HowBLL,AcoowBteiit 

<<  54,  Bishopsgate  Street  Within,  London,  E.G., 
«  Oct.  30, 1866." 


BANK  AMALGAMATION. 


The  English  Joint  Stock  Bank,  Limited,  has  absorbed  the  boancss  of 
Messrs.  Oldiug,  Osborne,  and  Co.,  of  Clement's  Lane.  Bj  this  anange- 
meat  the  English  Joint  Stock  Bank  becomes  a  London  bank,  having 
hitherto  carried  on  a  jx)unfary  business  only.    Two  of  the  partneis  (2 


Olding,  Osborne  and  Co.,  vis.,  Mr.  Louis  Courtauld  and 
Olding,  join  the  direction  of  the  bank,  the  subeoribed  capital  of  which  is 
£403,725,  and  the  paid-up  capital  £161,490.  The  arxangemeni  hm  beos 
completed  through  the  death  of  one  of  the  partners  of  Messrs,  (Hdiag. 
The  general  business  of  the  English  Joint  Stock  Bank  is  now  condiicfcsd 
at  the  new  building  in  Clement's  Lane  recently  erected.  Mr.  Ooortasld 
and  Mr.  Olding  will  conduct  the  London  business.  The  private  fiim  of 
Messrs.  Olding,  Osborne  and  Co.  was  established  in  17<>2,  and  the  <  * '  ' 
partner  in  it  for  a  lengthened  period  was  Mr.  Samuel  Bogers ;  the  ' 
being  then  Messrs.  B^rs,  Olding  and  Co. 


Cammutiiraitwns. 


2b  the  Editor  of  the  "  Bank^rs^  Magazint.^* 

PROFITS  OF  ENGLISH  BANKS. 

London,  14th  November,  1865w 
Sib,-— In  your  number  of  this  month,  a  correspondent  signing  himself 
'^H."  makes  some  inquiries  as  to  the  practice  of  some  Knglish  banks  of 
charging  interest  on  their  customers'  cheques  from  the  &te  on  whidi 
such  cheques  are  drawn,  instead  of  that  on  which  they  are  paid. 

In  reply,  and  for  the  benefit  of  those  establishments  mho  follow  this 
custom,  x>ormit  me  to  submit  the  following  extracts  bearing  on  the 
subject : — 


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Cammunieatidns.  1389 

A  banker  has  no  right  to  debit  the  customer  who  draws  a  cheqne 
from  the  date  at  which  it  is  dra^  ;  he  is  bound  to  make  the  entry  as  of 
the  date  when  the  cheque  was  cashed."  (Grant  on  Banking,  2nd  edit., 
page  89.)  -'*  It  has  not  been  unusual  for  bankers  to  enter  cheques  in  iba 
pasa-books  as  of  the  date  when  they  were  drawn,  and  not  as  of  the  date 
when  Uiey  were  actually  paid,  and  to  calculate  interest  accordingly.  But 
a  banker  should  debit  his  customer,  not  from  the  date  of  the  cheque,  but 
from  the  time  of  payment."     (Byles  on  Bills,  8th  edit.,  page  25.) 

I  am,  Sir,  your  obedient  Servant, 

J.  D.  F. 


14th  November,  1866. 

Sib, — ^With  your  permission,  and  with  all  deference,  I  will  undertake 
to' justify  the  practice  challenged  by  your  correspondent  "  H.,"  under  the 
head  of  "^  Profits  of  English  Banks/' 

I  should  infer  that  he  is  not  a  banker,  because,  if  he  were,  he  should 
know  that  in  the  course  of  business,  as  now  existing,  the  banker  would 
soon  be  yeiy  seriously  damaged  were  ho  to  adopt  the  practice  suggested  of 
charging  his  customer  interest  only  from  the  date  on  which  the  drafts 
appear  to  the  debit  in  the  ledger ;  and  for  these  two  very  potent  reasons, 
amonffst  others — first,  that  in  the  case  of  an  establishment  having 
branches  and  a  London  agent  (a  country  bank  particularly  for  instance), 
the  cheques  which  reach  it  every  morning  in  the  several  remittances  by 
hundreds,  have  all  been  given  credit  for  to  the  parties  i>aying  them  in,  or 
have  been  cashed  out  of  the  tills  of  the  establishment  somewhere,  one, 
two,  and  often  three  days  before,  as  tlie  case  may  be ;  and,  secondly,  that 
since  the  establishment  of  the  country  dearing  office,  the  banker  who  re- 
ceives cheques  upon  another  country  bank  has  to  give  credit  for  them  on 
the  day  of  receipt,  whereas  he  has  to  wait  from  three  to  four  days  before 
they  appear  at  his  credit  with  his  London  agents. 

Now,  surely  your  correspondent  is  not  prepared  to  argue  that  the 
customer  (who,  let  it  be  fully  borne  in  mind,  from  the  moment  he 
has  issued  his  cheque,  has  ceased  to  have  any  property  or  control  in  it, 
and  is  liable  to  have  his  account  charged  with  it  on  that  same  or  any 
subsequent  day),  is  entitled  to  benefit  in  interest  from  the  delay  necessary 
for  transmission,  or  even  from  any  delay  in  presentation  through  other 
accidental  causes !  You  will  see,  I  think,  sir,  that  at  least  it  is  not  the 
drawer  of  the  cheque  who  has  any  locus  standi  for  claiming  the  intervening 
interest,  but  the  holder,  whether  he  be  one  of  the  general  public,  or,  whsS 
is  much  more  commonly  the  fact,  the  banker  who  has  first  received  the 
cheque.  'Whether  the  interval  be  long  or  short,  it  is  quite  clear  that  by 
no  force  of  logic  can  the  drawer  show  either  that  he  is  diunaged  by  being 
charged  interest  from  the  date  of  his  cheque  (i.e.,  the  date  on  which  he 
gets  a  discharge  for  the  payment  for  which  it  was  given),  or  that  bankers, 
as  a  community,  derive  any  undue  '*  profits"  from  the  practice. 

Our  Scotch  neighbours,  whose  keenness  in  all  maUers  of  business  is 
world-wide  known,  do  not  need  to  be  made  alive  to  this,  I'll  warrant  me. 

The  date  of  a  cheque  is  legally  the  presumed  date  of  issue  and  of  pay- 
ment, though  there  may  occasionally  be  some  peculiar  and  specisd  cases 
otherwise ;  but  they  do  not  come  within  the  range  of  this  argument. 

I  therefore  strongly  counsel  all  bankers  to  continue  adhering  to  this 
most  reasonable,  and,  indeed,  essential  mode  of  self-protection,  and  those 
who  have  not  hitherto  adopted  it,  I  recommend  to  do  so  forthwith. 

I  am,  Sir,  yours  respectfully, 

A  Baiticbb. 

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1390  C7(WiifMNii0BnMf* 


A  BANKER'S  UBBABY. 
SiBy-— I  should  miioh  like  to  see  a  bttuker's  library  esteliliBlied  is  LoA- 
doD  for  the  use  of  beakere  and  tiieir  employ^  fhroa^^Kmt  the  kiu^doa. 

Being  engaged  in  a  oonntry  hraneh  of  a  joint-etoek  bank  I  Safe  no 
means  of  doing  much  towards  so  desirable  an  end,  but  believing  jaa  vfll 
kindly  insert  this  letter  in  jour  next  month's  impression,  I  lia;re  a  hope  ft 
may  come  under  the  eye  of  some  one  or  more  persons  w1m>  would  be  ^bd 
to  see  Buch  a  thing  established,  and  have  the  means  at  oommand  to  aBTol 
others  interested  in  such  an  object.  -I  can  only  say  I  ahoald  be  a  mort 
willing  subscriber,  and  I  have  very*  little  doubt  it  would  be  a  sncosiL 
Banking  works  are  very  expensive,  and  you  must  know  the  salaciss  of 
snpLoySi  are  not  large  enough  to  afford  them. 

I  am,  Sir,  your  obedient  servant, 

W.W- 


BBANCH  BANK  CHEQUES. 

Wells,  7th  Novembsr,  lB6(i 
Sib, — ^In  reply  to  your  oorrespondent  ^  T.  L"  I  can  from  my  own  kaoiw- 
ledge  affirm  that  there  were  no  special  grounds  affecting  the  case  I  qiiirf 
as  being  decided  in  the  Queen's  Bench. 

I  leave  it  to  your  correspondent "  W.  L  A."  to  eyplaan  how  the  luianae- 
tation  of  the  law  he  has  received  can  be  considered  otherwise  than 
and  absurd  "  in  the  face  of  the  decision  of  a  superior  oonrt^  mspfatUd  i 
it  is  by  the  universal  practice  of  country  bankers. 

Tours  faithfnllyy 


BANKING  PBACTICB. 


LondoBu  1st  November,  1866. 
SiB,~In  reply  to  your  correspondent  '^H.,"  whose  letter  appeared  ia 
your  November  number.  It  is  the  rule  of  Lrmdon  as  of  all  other  bsnktts 
to  debit  the  account  of  their  customers  with  the  amounts  of  their  cbeigam 
on  the  day  such  cheques  are  paid ;  it  could  not  be  otherwise^  or  the  hank 
books  would  be  in  endless  confusion. 

Yours,  Acy  - 

A.D.H. 


Mullingar,  2(Hh  November,  186S. 
SiK,— I  beg  to  subjoin,  for  the  information  of  your  eorrespendent  "H." 
in  your  last  number,  the  law  as  quoted  in  "  Grant's  Law  of  Bankers  and 
Banking,"  page  94. 

**  A  Banker  has  no  right  to  debit  the  customer  who  draws  the  cheqw 
from  the  date  at  which  it  is  drawn ;  he  is  bound  to  make  the  enliy  as  of 
the  date  when  the  cheque  was  cashed." 

Your  obedient  servant, 

A  i 


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Commumeatumi.  1801 

THE  LEEDS  BAlfKING  OOMPAlfY. 

Winchester,  17th  November,  1865. 

Sir, — ^Permit  me  to  draw  the  attention  of  your  readers  to  the  deoincni 
of  the  Yioe- Chancellor,  on  the  14th  instant,  re  Leeds  Banking  Company, 
Ptang's  claim.  With  regard  to  the  second  bill,  which,  having  been  djs- 
honoured  by  the  aooeptor,  and  bearing  the  endorsement  of  the  Leeds 
Banking  Company,  **  in  need  at  Smith,  Payne  ^  Smith's,''  was  presented 
there  on  the  15th,  the  Leeds  Banking  Company  being  at  that  time  in 
liquidation,  it  was  again  dishonoured.  Prang  &  Co.'s  agent  sent  them 
notice  the  same  day,  and  on  the  16th  they  forwarded  notice  to  the  official 
liquidator,  who  received  it  in  due  course  on  the  17th.  The  Court  said — 
''  Then  came  the  question  whether  it  was  part  of  the  law  that,  as  between 
principal  and  agent,  an  additional  day  should  be  allowed  for  the  purpose 
of  notifying  di^oDour.  The  Court  was  of  opinion  that  the  law  permitted 
no  such  additional  time  to  be  given,  and  therefore,  as  the  notification  to 
the  official  liquidator  was  too  late,  the  claim  in  regard  to  the  second  bill 
must  also  be  disallowed."  This  judgment  appears  to  be  in  direct  opposi- 
tion  to  the  law  as  laid  down  in  "  Byles  on  Bills,"  page  264 — "  A  banker 
with  whom  a  bill  is  deposited  to  receive  payment  is,  for  purpose  of  notice, 
to  be  considered  as  a  distinct  holder,  and  has  a  day  to  give  notice  to  his 
customer,  and  the  onstomer  another  day  to  give  notice  to  the  antecedent 
parties/' 

In  the  report,  of  the  above  case,  it  is  not  stated  whether  the  agent 
employed  was  a  banker,  but  I  presume  that  could  make  no  difference. 

I  am.  Sir, 

Tour  very  obedient  servant, 

E.  d  D. 


THE  CHEQUES  OF  CUSTOMERS. 

20th  Nov.,  1865. 
SiB,— Your  correspondent  "H."  **  will  be  glad  to  hear  that  it  is  not  the 
invariable  custom  of  the  English  banks  "  to  debit  their  customers'  cheques 
on  the  day  they  are  dated,  instead  of  on  the  day  of  payment.  I  shall  be 
glad  to  know  ^and  I  dare  say  many  of  your  readers  also)  from  what  source 
^  H."  obtainea  information  of  this  curious  practice  which  he  attributes  to 
the  English  banks.  A  well-known  legal  authority  says,  "  a  banker  in 
charging  interest  to  a  customer  who  has  overdrawn  his  account,  should 
compute  it  not  from  the  date,  but  from  the  payment  of  the  customer's 
cheques,"  and  without  doubt  the  same  rule'  applies  when  the  account  is 
not  overdrawn,  and  where  interest  is  allowed.  Does  ^'  H."  speak  from 
eoqperienoe? 

I  am,  dear  Sir, 

Your  very  obedient  servant, 
D. 

BANKER'S  COMMISSION. 

Hereford,  15th  November,  1865. 
SxB,— Will  you  be  so  kind  as  to  answer  me  the  following  questions  in  your 
next  number.  What  is  the  usual  practice  of  bankers,  town  and  country, 
in  such  a  case  as  this  1  A.  B.  removes  his  banking  account  from  SmiUi 
ttod  Co.  to  Jones  and  Co.  on,  say  lat  October,  and  in  November  a  bill  of 
A.  B.'s,  dated  in  September,  and  lying  in  Smith's  hands,  matures  payahLe 


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1892  Communications. 

with  them.  Are-  Messrs.  Smith  sad  Co.  justified  in  prwwnting  the  hill 
far  iMQ^ent  to  the  aooepior's  new  hanken  with  a  oommissioii,  and  in 
ease  of  the  latter  promising  to  pay  the  principal  of  the  bUI  only  without 
eomnussion,  can  Smith  and  Co.  -legally  refose  to  reooiTe  it !  Agun,  is  a 
hanker,  after  dishonooring  acceptances  of  a  costomery  legally  xij^  in  pay- 
ing, later  in  the  day,  other  aooe^iftanoes  of  the  same  pejann,  or  is  he  boond 
to  retain  any  fands  he  may  receiYe  to  be  applied  to  the  payment  of  those 
&vt  presented. 

I  am.  Sir, 

TonxB  obediently, 

Bakk  Casbikb. 

1. — ^We  do  not  think  the  charge  for  commissian  oonld  be   kgallj 
eoDioroed. 

2.-~Assaming  the  first  dishononr  to  have  taken  place  in  oonseqnenee  cf 
insoffident  fands  belonging  to  the  acceptor,  if  f onds  were  snbseqaoitly 
supplied,  the  banker  is  justified  in  paying  the  first  acoeptanees  afUavaidi 
presented.] 

STAMP  RECEIPTS. 

Birmingham,  November  7th,  ld6&. 
Sib, — ^I  shall  feel  obliged  if  yon  will  say  in  your  nert  whether  a  fcfmal 
receipt  or  an  acknowiedginent  by  post  of  a  sum  of  n|oney  abofe  £2, 
given  for  the  purpose  oi  aasi&ting  in  the  improvement  of  a  chiadi,  requiies 
the  nsoal  penny  stamp.  I  am  aware  that  a  receipt  for  money  ocBtribatod 
for  eharitable  purposes  requires  no  stamp,  but  the  case  in  qnestion  cao 
scarcely  be  considered  one  of  charity. 

Is  it  an  nnderstood  and  recognised  rule  that  the  Act  of  ParUament 
does  not  apply  to  receipts  for  moneys  which  are  not  recoverable  st  Isw  ? 

Again,  is  it  neoessazy  that  an  employed  in  giving  to  the  firm  fay  winch 
he  is  engaged  a  receipt  for  money  paid  on  account  of  salary,  should  affix 
the  penny  stamp  to  the  paper  ? 

I  am,  Sir, 

Your  obedient  servant, 

F. 

[We  should  consider  such  a  gift  of  money  as  is  referred  to  exempt  £ron 
the  duty  on  receipts.    The  receipt  for  salary  requires  a  stamp.] 


AD  VALOREM  STAMP. 

14th  November,  186K. 
Sn, — ^Will  you  be  good  enough,  in  your  next  number,  to  state  whether 
in  the  case  of  a  cheque  dra¥m  in,  and  upon  London,  payable  eithflr  to 
**  order  "  or  to  **  bearer,"  having  been  negotiated  abroad,  is  liable  to  tibe 
same  ad  valorem  stamp  duty  as  an  ordiniury  foreign  bill  of  exchange;  and 
oblige 

Tour  obedient  servant, 

S.  B   C 
[By  27  and  28  Vict.,  c56»  s.  2,  suoh  a  draft  is  liaUe  to  the  ad  vdcnm 
'  jr,  if  endorsed  abroad.] 


du^. 


2ath  November,  1865. 
Sin — ^1.  Would  a  bill  drawn  by  and  on  a  bank  in  Ki^land,  at  my 
fottrteen  days  date^  and  which  was  sent  abroad  and  there  endocsed,  sach 


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Banking  Obitnary.  1398 

endorsement  carrying  with  itself  proof  of  having  been  effected  out  of  the 
United  Kingdom,  require  an  ad  valorem  foreis^  bill  stamp  in  addition  to 
the  inland  stamp  it  bore  at  time  of  issuing  before  payment  in  England  ? 

2.  Some  of  the  London  bankers  have  recently  adopted  the  plan  of 
perforating  their  cheques  with  the  "two  lines,"  and  the  words  "  and  Co.," 
instead  of  the  old  system  of  crossing.  Do  you  consider  such  perforated 
cheque  is  a  legally  crossed  one  ? 

Your  replies  to  the  above  will  be  esteemed  by, 

Yours  obediently, 

[1.  No^ 

2.  The  Act  of  Parliament  does  not  define  how  the  ^  transverse  lines  "  of 
the  crossing  are  to  be  made,  but  such  crossing  is  required  to  plainly  appear ; 
we  therefore  think  the  terms  of  the  Act  are  complied  with  if  the  latter 
requirement  is  fulfilled.] 

Crossed  cheques. 

Uanidloes,  22nd  Nov.,  1866. 

Sib — ^I  shall  feel  obliged  by  your  kindly  answering  the  following  question 
in  yotir  next  monthly  number. 

is  not  a  banker  upon  whom  is  drawn  and  duly  presented  a  cheque 
dated  28th  October,  1865,  but  crossed  with  the  words, "  not  to  be  cashed 
before  the  28th  November,  1865,"  such  crossing  however  not  confirmed  by 
the  drawer's  signature^  bound  to  pay  it  on  presentation  if  there  be  funds  % 
If  he  be  not  legally  bound  to  honour  such  cheques,  any  third,  fourth,  fifth, 
or  sixth  party  who  might  become  in  poraes&ion  of  such  a  document  in  the 
way  of  business,  might  make  a  similar  crossing,  for  some  reason  or  other, 
and.  thereby  cause  endless  trouble  and  unpleasantness. 

[We  think  the  banker  is  not  bound  to  pay  with  such  a  crossing ;  if  made 
by  the  drawer  it  is  clearly  illegal,  sb  the  cheque  is  no  longer  payable  on 
demand  ;  if  made  by  any  other  person  it  is  such  a  material  alteration  as 
woidd,  we  thiiik,  justify  the  banker  in  refusing  to  pay.] 


MONTHLY  CHRONOLOGY. 

November  12. — The  National  Bank  of  Belgium  raised  their  rate  of  dis*  • 
count  on  bills  to  6  per  cent.,  the  rate  for  advances  on  commercial  securities 
to  6}  ^T  cent.,  and  advances  on  stocks  and  shares  to  6  per  cent. 

16. — The  directors  of  the  Bank  of  Holland  raised  their  rate  of  discount 
from  5|  to  6  per  cent. 

23. — ^The  directors  of  the  Bank  of  England  reduced  their  minimum  rate 
of  discount  from  7  to  6  per  cent. 

The  directors  of  the  Bank  of  France  reduced  their  terms  for  discount 
from  6  to  4  per  cent. 

»    

BANKING  OBITUARY. 

On  the  5th  September,  at  the  Bank  of  Bengal,  Lucknow,  Mr.  William 
M'Farlane,  late  of  Clarendon  Road,  Netting  Hill,  in  his  33rd  year. 

On  the  Ist  November,  Mr.  Alexander  Frederick  Merrett,  manager  of  the 
Gravesend  Branch  of  the  London  and  County  Bank,  aged  48  years. 

On  the  12th  November,  at  Claremont  Place,  Forest-gate,  Mr,  Edward 
Harrison  Wilkinson,  of  the  Oriental  Bank  Corporation,  aged  31  years.. 


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1394 


▲  DKrAULTma  CAflBiBR.-*A  casbier  in  the  esUUiahment  of  Umrs.  OUb^ 

Osborne  and  Co.,  absented  himself  a  week  or  tiro  a^  and  upon  inTesttgafciaf 
his  acooants,  preparatory  to  the  transfer  of  the  business  to  tne  English  Joint 
Stock  Bank,  u  was  found  he  was  a  defaulter  to  the  extent  of  £1,995.  Il  is 
expected  a  portion,  if  not  the  whole,  may  be  recovered.  Disoooraging  as  ibis 
is,  tiie  reports  were  to  the  effect  that  the  total  was  very  oonsiderabM. 

At  an  eztraordniary  general  meeting  of  the  proptietorBof  the  ProTfncial  Bnk 
of  Ireland,  Sir  James  Weir  Hogg,  Bart,  in  tiie  chair,  Mr.  William  WaBaee,  «f 
Aostuiofinars,  and  Mr.  Harry  Hankey  Dobree  were  seTenlly  Reeled  dfcecUirs  ii 
the  room  of  Mr.  Samuel  Eustace  Msgan,  and  Mr.  Matthias  Wi^Terley  Atlwood, 
both  deceased. 

It  appears  that  Messrs.  Lamie  and  Young,  as  directors  of  the  City  Bsnk. 
have  felt  themselves  compelled  to  resign  their  seats  at  the  board  of  the  Kngli^ 
Joint  Stock  Bank,  limited,  on  the  commencement  of  a  London  bnsiness  by  ^ 
latter,  through  their  amalgamation  with  Messrs.  Olding,  Osbonie  and  Co. 

It  is  stated  that  Mr.  Wright,  the  London  manager  of  the  National  Bank  of 
i^nstralia,  has  accepted  the  general  management  of  that  bank,  and  proceeds  to 
head-quarters,  Melbourne,  by  the  December  mail.  The  London  management 
will  be  temporarily  filled  by  Mr.  Muttlebury,  one  of  the  London  directors. 

The  Asiatic  Bank  Corporation  have  declared  an  interim  dtvideod  at  Ike  isle 
of  6  per  cent.,  free  of  income  tax,  on  the  original  shares,  which  became  payaUe 
on  and  after  the  1 3th  November. 

On  iho  27th  October,  the  offices  of  the  London  and  YeagmcU  Beak 
removed  to  No.  9,  Tokenhouse  Yard. 


TRADE  OF  THE  UNITED  KINGDOM. 

Tkb  Board  oi  Trade  returns  for  the  month  and  nine  months  ended  tiie 
SOth  September,  were  issued  on  the  Slat  Ootober,  and  are  ones  moe 
of  a  very  fayourable  eharactery  showing  a  considerable  increase  in  the 
Talne  of  exports,  the  improvement  extending  to  most  of  the  leading 
articles  of  commerce,  but  more  particularly  to  cotton  and  linen  yaraa  nd 
aotton  and  linen  manu&Mstures.  The  total  declared  ralne  of  exports  far 
the  month  of  the  present  year  was  £17,316,681,  against  £14,687^MS  in 
1864,  and  £14,542,862  in  1863,  being  an  increase  of  £2,638,757  over  1864^ 
and  of  £2,773,819  over  1863.  For  the  nine  months  of  tlie  present  year 
the  total  was  £119,717,377  ;  for  the  same  period  last  year  it  was 
£123,404,161  ;  and  for  1863,  £104,^,713  ;  showing  a  decrease  of 
£3,686J'84  as  contrasted  with  the  formerperiod,  but  an  increase  of 
£16,422,664,  as  compared  with  the  latter,  mth  re^wct  to  exports^  there 
has  been  an  increase  in  alkali,  firearms,  coals  and  culm,  cotton  ymm,  cotton 
manufaetixres,  haberdasheiy  and  millinery,  hardware  and  catlery,  linsD 
yam,  linen  msaufaetares,  metals,  seed  oil,  silk  manufactures,  and  wool  and 
worsted  yam.  Ttte  dedine  is  shown  in  gunpowder,  beer  and  ale»  eartlien- 
ware,  machinery,  thrown  silk,  spirits,  and  woollen  and  worsted  manu&e- 
tures.  As  regards  imports,  there  has  been  an  incresse  in  docks  and  vatdiesy 

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Trade  of  the  United  Kingdom. 


1395 


raw  cotton,  gmmo,  hemp,  raw  silk,  tallow  and  wool ;  bni  a  decline  in  flax, 
flaxseed,  and  linAeed,  cocoa,  spirits,  sngar,  tea^  tobacco,  and  wine.  In  the 
case  of  cereals  there  has  been  an  increaae  in  the  importation  of  barley  and 
beans,  bat  a  falling  off  in  wheat,  oats,  peas,  Indian  com,  and  wheatmeal 
and  flour.  With  respect  to  proyisions  there  has  been  an  increase  in  bacon 
and  hams,  salt  beef,  and  batter  and  cheese,  with  a  decline  in  salt  pork, 
eggs  and  lard.  The  sabjoined  tables  exhibit  the  alterations  in  the  chief 
articles  eniQunerated : — 

EXFOKM* 


...      tODS 

ISSi. 

1866. 

Goals  and  calm 

811,882 

842,698 

Cotton  manufactores 

...    yards 

166,856,730 

209.361,444 

Cotton  yarn      

...     lbs. 

6,707.676 

14,335,802 

Haberdashery  and  millinery  ... 

...  Yalae  £ 

413,952 

554.052 

...  yards 

17,184,471 

26,118,296 

...     lbs. 

3,686,853 

3,954,409 

.«rcMD,  pig            •••        ..•        ... 

...     tons 

89,812 

59,462 

Ditto,  railway 

•••       ff 

27,302 

41,786 

Copper,  nnwroaght     

...   cwts. 

fl,316 

14,161 

BittOb  sheets,  nails,  &c. 

•••       II 

L60,232 

41,532 

OU  seed           

...  gallons 

928,501 

1,011,569 

Silk  numnfactores       

...  value  £ 

122,910 

165,782 

Ditto,  thrown .• 

...     lbs. 

67.578 

54,051 

Spirits,  British 

Woollen  cloths,  &c 

...  gallons 

412,348 

201,428 

...    yards 

2,699,494 

2,637,218 

Woollen  and  worsted  yam     ... 

...     lbs. 

2,647,416 

3,355,698 

IXFORTS. 


..• 

...     lbs. 

1864. 

1S66. 

Cocoa     

1,199,458 

680,277 

vOlWWI       •••           •••           ••• 

■•• 

•••       11 

15,699,497 

21,651.774 

wneat    ...        ...        ... 

••• 

...     ^rs. 

2,665,799 

2.408,966 

Wheat-meal  and  floor  . . . 

.*• 

...   cwts* 

456,818 

301,596 

Cotton,  raw      

... 

...        1, 

653.211 

899.030 

Flax       

•»• 

...       „ 

198.261 

181,119 

Hemp     

••• 

:::  iK.. 

79,995 

117,696 

Hides,  tanned,  &c.       ... 

••• 

466,848 

452,810 

Leather  manufactures ... 

.•• 

...    pairs 

896,748 

897,924 

Baiter    ...        ...        •«. 

... 

...    cwts. 

76,827 

87,887 

voeeBe    •*.        ...        ••• 

*•• 

•••       „ 

92,902 

116,688 

Flax-seed  and  Unseed  ... 

••• 

••;  IK- 

144,588 

130,348 

••• 

666,133 

1,450.197 

Silk,  ihnywn      

••• 

•••     »» 

1,420 

2,806 

Silk  manufactures 

••• 

...  gallons 

282,600 

287,890 

Spirits     ...        .M        ..« 

... 

923,097 

914.169 

Suflrar,  unrefined 
Tallow 

••• 

•••   cwts. 

1,259,160 

907,717 

••« 

:::  av 

44,107 

200,670 

Ji  ca         ...        ...        ... 

•  a. 

2,851.962 

2,826.241 

Tobacco  

t*. 

...      ,f 

7,570,712 

3,152,819 

▼Tine      ...        ..•        ... 

... 

...  gallons 

1,067,542 

862,808 

^weoi      «•«        ■•.       *■• 

... 

...     lbs. 

18,662.944 

22,075,688 

WooUmi  maaufaetUTSs... 

... 

...  Taloe  £ 

212.288 

228.181 

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1396 


MONETARY  REVIEW  FOR  THE   MONTH  OF  NOVEMBSB. 

Thb  progress  of  financial  and  commercial  affairs  tliroaglioni  the  wliole 
of  the  month  of  Noyember  was  tranquil  and  satisfactory.  The  rumours 
oonnected  with  the  probability  of  war  with  America,  aud  apprehenaioiia^ 
arising  from  the  Fenian  movement,  occasioned  no  great  alarm,  althon^ 
there  was  a  little  temporary  uneasiness.  The  maintenance  of  the  rate  of  dis- 
count at  7  per  cent,  until  the  Bank  was  in  a  position  to  reduce  to  6  per  cent., 
exercised  a  healthy  influence  over  the  general  market,  and  although  it  is 
now  said  there  is  a  prospect  of  the  quotation  deseenc^g  to  5  per  cent.,  it 
is  questioned  if  this  will  in  reality  prove  the  case.  An  Austrian  loan  has 
been  introduced  and  is  alleged  to  be  a  success,  but  the  principal  sub- 
scriptions must  have  been  obtained  abroad,  because  capitalists  here  are 
not  just  now  disposed  to  encourage  this  kind  of  operation.  The  Bank  of 
France  have  lowered  their  quotation  for  discount  from  5  to  4  per  cent.,  and  it 
is  not  supposed  that  they  will  further  reduce  the  price  at  present.  Endea- 
vours are  every  now  ahd  then  made  to  float  public  companies,  but  in  con- 
sequence of  the  state  of  things  created  by  the  decision  of  the  Stock 
Exchange-  respecting  settlements  there  is  no  anxiety  manifeeted  to 
sul»cril^  to  them.  Since  the  reduction  of  the  rate  of  discount  by  the 
Bank  of  England  there  has  been  a  better  supply  of  money,  and  the  nnes 
have  been  rather  cheaper,  but  not  to  an  extent  to  show  that  large  balances 
have  been  brought  forward.  At  the  last  moment  three  months  bills  have 
been  negotiated  at  5f  per  cent,,  and  six  months  at  5}  to  |  per  cent. 

The  market  for  English  stocks  has  been  slightly  in  the  ascendant.  Not 
a  great  deal  of  activity  has  been  apparent  but  prices  have  improved,  first 
through  government,  and  secondly  through  private  purchases.  The 
government  broker  has  been  taking  for  three  weeks  past  about  £80,000 
Reduced,  and  New  3  per  Cents,  on  account  of  the  sinlung  fund,  and  these 
will  continue  for  some  time  longer. 

Foreign  stocks  have  fluctuated  to  an  extent.  Spanish,  owing  to  the 
dedaraUon  of  war  against  Chili,  and  Greek  in  consequence  of  the  unsettled 
situation  of  the  ministry.  Both  descriptions,  after  being  veiy  dejaeBsed, 
have  slightly  recovered.  Turkish  have  on  the  average  been  sustained,  and 
in  the  case  of  ConsoHdes  the  time  for  cnnying  out  the  ocmveraion  has  been 
extended.  The  Confederate  loan  continues  flat,  the  states  as  well  as  the 
government  authorities  at. Washington  repudiating  the  debt. 

Railway  shares  were  in  the  early  part  of  the  month  very  firm.  Since 
then  they  have  receded.  The  speculation  for  the  rise  having  recently  been 
carried  to  a  high  point,  a  reactionary  tendency  is  now  noticeable.  It  has 
extended  throughout  the  entire  of  the  department. 

Joint- Stock  Bajxk  shares  have  been  steady,  but  in  every  case  the  fullest 
quotation  has  not  been  sunported.  A  very  fair  extent  of  buainess  has 
nevertheless  been  transactecL  The  shares  of  the  credit  and  finance  com. 
panies  have  been  well  maintained,  and  have  in  special  instances  advanced 
on  the  prospect  of  forthcoming  dividends  and  tlie  ptrogress  of  their  opera- 
tions. 

In  the  produce  market  there  has  not  been  any  important  busineBS,  but 
prices  have  been  firmer  since  the  reduction  of  the  rate  of  discount.  Arise 
of  about  £20  per  ton  in  copper  has  taken  place  owing  to  the  aggressioii  (^ 
Spain  upon  Chili,  so  large  a  portion  of  our  supplies  of  metal  oomiiig  ihenoe. 


Digiti 


zed  by  Google 


1397 


THE  GBAIK  TRADE. 

Thb  markets  for  all  cieBcriptioiiB  of  grain  have  ruled  very  hiffh  during 
the  greater  part  of  the  month,  but  latterly  there  has  been  much  less  firm- 
ness, with  a  general  decline  in  prices.  The  accounts  from  the  agricultural 
districts  are  favourable,  and  the  autumnal  operations  are  proceeding  satis- 
factorily. The  recent  very  wet  weather  has  caused  most  of  the  samples  of 
wheat  to  be  brought  to  market  in  an  unfavourable  condition,  and  this,  with 
the  continued  large  supplies  from  abroad,  chiefly  caused  the  decline  in  prices. 
The  latest  official  average  quotations  were  .-—Wheat,  4Ss.  lid.  per  qr. ; 
barley,  33«.  7d. ;  and  oats,  22«.  9d.  per  or. 

The  Oazette  returns  for  England  and  Wales  have  been  :— 

Cknreepoadinf 
Week  Wheat.  Weekly  week 

ending,  Qrs.sold.  Average.  "Duty,  Last  Year. 

1865.  t.    i.  t,    d.  #.     d. 

Oct.  28  68,961      ...        42    4        ...        10        ..*        38    6 

Nov.   4  77,330      ...        43    4        ...        10        ...        38    9 

„     11  76,828      ...        46    3        ...        10        ...        38  U 

„    18  71,670      ...        46  11        ...        1    0        ...        88    9 

The  importationB  since  the  harvest  of  1864  have  been : — 

Wheat.         Other  Grain.  Total. 

Cwta.                Gwti.  Owts. 

Sixty.six  weeks  ended  2l8t  Oct.    ...      26,607,210  33,698,680  69,106,790 

Four  weeks  ended  18th  November...        1,922^9    2,439,337  4,362,186 

27,430,069  36,037,917    63,467,976 

And  the  weekly  averages  have  been  :— 
Sixty.six  weeks  ended  21st  Oct.      ...         386,000      609,000        896,000 
Four  weeks  ended  18th  November    ...         480,000      610,000     1,090,000 

More    94,000      101,000       196,000 


THE  STATE  OF  TRADE. 
Business  in  the  markets  of  Manchester  and  throughout  Lancashire  has 
been  steady,  and  with  rather  lower  terms  for  money  will,  it  is  expected, 
improve  at  the  time  of  the  quarter. 


NOTICES  TO    COBBESPONBEHTS. 

We  hare  arranged  in  ftitare  to  iasne  a  double  nnmber  in  Febnuuy  and  Angott,  instead  of  as 
formerly  in  ILrt  and  Noremher.  This  has  been  rendered  neoeasanr  by  the  groat  increase  of 
the  meetings  of  the  BanVs  and  Disoonnt  Companies,  which  will  be  always  eweftally  ooUeoted 
in  the  pages  of  the  Bamk«rt^  MagaatM,  We  shall  also  give  the  prooeedixigs  of  the  rarions 
Credit  and  Xlnanoe  Companies  as  they  are  more  or  less  associated  with  banUng,  so  that  onr 
Bubecribers  and  readers  can  refer  to  them  without  difflcolty.  One  or  two  commnnications 
stand  orer  for  want  of  room.  Correspondent!!  win  please  forward  oommnnioaMons  addressed 
to  the  Editor  No.  8,  Birohin  Lane ;  subscriptions  and  orders  as  usual  to  Messrs.  Groombridce 
and  Sons,  Paternoster  Bow,  or  Messrs.  Waterlow  and  Sons,  Carpenters*  Hall,  London  WaU. 
Bimcnro  Aim  Fdiaxcxaxi  AvxoDons. — ^It  will  be  perceiTed  fipom  notice  elsewhere,  that  the 
Editor  of  the  Banktrtf  Ma^atin*  is  collecting  and  arranging  a  series  of  Bankinff  and  Financial 
ijneodotes.  Any  contributions  firom  subsoribers  and  readers  of  the  Magagitu  will  be  thankfiilly 
received,  particularly  if  the  snb{eot-matter  shall  not  hare  prerionsly  appeared  in  ptiot 
Nothing  personal  or  ofibnsire  will  reoeirepobUoi^. 

VOL.  XXT.  105 


Digiti 


ized  by  Google 


1398 


BAm  OF  FRANCE. 

DSBTO&. 


NCT.». 

Vbr.O. 

Nov.  16. 

K.T.SS. 

¥.             C. 

y.         0. 

F.            C. 

».          c 

OkfttilofllieBaDk  ... 

laMjmfin  o 

uuMyooo  0 

imjmfii»  0 

188,600^680    0 

FaoAta  in  additioii  to 

CAvital  (Art.  8.  Law 
TiMwrrn  ^  the  Bu^ 

7,OMJ7»    i 

7,OH7W   8 

r,044b779    8 

7,044776   2 

■Bd  its  branches     ... 

tt,105,780  U 

22^106;760  14 

22,105.780  14 

n,106,760  1ft 

BMBTfe  to  landed  pro» 

4,009,000    0 

^000,000   0 

4000.000    0 

4,000.000    0 

880,MI,OS6    0 

076,078,686    0 

878^480^6    0 

876,607,326    0 

Baak-notee   to    order 

and  receipts  pi^ahlfl 

■trii^ 

8,068.160  S2 

7,886,700  80 

7.781,926  93 

6,900,063  ^5 

Tiiiaeiiiy  aocoont  cor* 

rant,  cseditor... 

m.74b.S0O  14 

184.637.4B0  06 

10,261,419  46 

110,104009  66 

US,971,830  29 

148,320,000  43 

129.836.036    1 

113.04214  7^ 

38,638,104    0 

87,180.000    0 

^*^^Ji 

a,8B7.4iS   « 

OiTidendapa^^lo    ... 

INMoantB  and  mnOrf 

intatMtB        ...    ,  «. 

1,662,814  76 

1,016,000  76 

980,084  76 

868,10172 

^627,888  66 

,     10^6,200  48 

]fl^8H«8S6 

ii.a4i»  '^ 

Sa-dieooiinted  the  last 

six  months    

1,487,628  17 

1,487,623  17 

l,4Kr,083  17 

1,487.688  17 

8iizi>InB  of  receipta  not 

distribnted     

781,809  86 

782,868  86 

782.068  90 

781,969  34 

BondiiM. -. 

14,167,880  61 

14.061,287  63 

14.076.627  86 

12,004486  »i 

Total  ...       ^ 

l,4(lft.|t!Wi4l8  TW 

1,481,080.886    4 

1,866.786^680  36 

4384179^0  n 

OBBDITOK. 

'       Nov.S. 

Not.  9. 

Nor.  10. 

Nor.  23. 

X.           c. 

V.           c. 

r 

L            C. 

Cash  In  tend  ttadeMb 

in  ttie  bran  A  henka 

410,686^86888 

411,746^066  04 

389/m.l86  54 

414987.086  27 

dae      ^... 

7,787,270  22 

678,868  84 

1,800,410  49 

SS4610  25 

Commercial  UUs  dia- 

ooonted,  not  vet  due 
Do.  bnmdh  banks     ... 

818,488^871  06 

840b886|017    3- 

888,464.188  90 

12490473012 

S«8,878,7SiS    0 

820,814780    0 

331,279,694    0 

Stt,904014   0 

AdYanoee  on  deposits 

ofbnUion      

10,460,800    0 

18,186,909    0 

19.68M»0    0 

I4194l»  « 

Do.  branch  beaks      ... 

0.188,600    0 

7,119,300    0 

9,066,800    0 

4417;mo  0 

Da  on  Bpanah  pnhliA 

■eenritiee      

13.766,800    0 

U.408,800    0 

13,302.900    0 

Do.  b7thebmndibBiikB 

Do.  on  rsilwsy  shares 

and  debentores      ... 

8^716,700    0 

8.786;800    9 

8LMO0O    0 

9>n>B   0 

80,067,600   0 

80,669,600    0 

30.177,700    0 

S^717.400   Q 

Do.  by  the  branch  banks 

21,647,480    0 

81,054^180    0 

20,48i;683    0 

n^iiMso  0 

Do.  on  GrMit  Fonaier 

Ixmds 

646JO0    0 

628.900    0 

611.200    0 

967.000  0 

Do.  branches 

460,660    0 

430,660   0 

486,960    0 

414080  0 

Do.  to  the  Btate  (Con- 
Tention  June  10, 1897) 

00,000,000    0 

60.000,000   0 

60.00^000   0 

94004000  0 

serve  

18^000,780  14 

1MOQ,760U 

tM«|,780  14 

2499426OM 

88^410,787  01 

36,468^787  Oi 

84416^788  U 

10^884717  »1 

Bfflt^tt     InmiobiUstea 

(lawof  Jane  0,1887) 
Hotel  and  ftizn.of  Bank, 

100,000,000    0 

lQeyOOO,000   0 

108^06^88    t 

184994091   • 

and  landed  propertgr 

ofbranohea  ...       ... 

8^6,844    0 

0.486,376   0 

^^m^m  0 

4497.466   0 

Xspenses  of  managa- 

menft 

'       1.868,170  68 

I,008,OUH 

1,988.688  ?• 

4a4i9&  4 

Snndxica... 

.     IUO7.017  88 

9,36i;4l0S 

9,9a;BiAai 

1499446419 

Toial  ...       .^ 

1,400,686,462  26 

t,481,Q8MW    * 

1.386,799,680  89 

4984174489  U 

Digiti 


ized  by  Google 


1389 

FLUCTUATIONS  IN  ENGLISH  AND  FOREIGN  STOCKS  AND 
RAILWAY  SHAESS. 


Price  on 

ViamM. 

LOWMt 

Prioeon 
Not.  27tli, 

Enqlish  Fukdb. 

GoDBOls                

88ito   9 

m 

88f 

89ito89i 

Ezcheqinr  Bills        

2/to4/diB. 

,  2/dia. 

8/dia. 

5/  dis. 

FoBEiaK  Stocks. 

Brazilian        ..*        •-        ••• 

.. 

96i 

93 

'      94} 

Buenos  Ayres            .••        •- 

— 

86 

86 

86 

99 

99* 

98i 

99fc 

Dutch  2}  per  cents.  ...        ^. 

— . 

611 

61 

«L 

Maxican          •••        .«.        .*. 

26J 

26f 

26t 

;     M 

Peruvian  4}  per  cents* 

71 

73 

70 

72t 

Russian          - 

89 

90 

88i 

90 

Danish 

461 

461 

44 

4S 

Turkish  6  per  oentsi. 

91f 

.      91i 

90| 

91 

Ditto  4  per  cents. 

10^ 

100 

100 

Raxlwat  Shasss. 

Brighton         ...        ...        ••• 

104i 

1061 

103i 

105 

Caledonian      

129 

129 

1261 

12T 

Great  Eastern 

47 

m 

46 

47 

Great  Northern         • 

139i 

180 

126 

1281 

Great  Western 

631 

63i 

60f 

63 

Lancashire  and  Yorkshire    ••• 

122i 

1231 

121} 

123i 

London  and  North  West^nL... 

124i 

126} 

124 

126i 

Midland          • 

126} 

127 

1241 

135i 

North  Staffordshire 

76 

76 

74 

75 

South  Eastern           

90i 

80J 

78J 

791 

South  Western          

96( 

97i 

96 

97 

York,  Newcastle,  and  Berwick 

llOi 

lllj 

110 

HI 

York  and  North  ICdlaad    ... 

lost 

104} 

103 

106i 

East  Indian    ...        •- 

104 

106 

103| 

104f 

Northern  o£  France 

— 

1-     49J 

43} 

43* 

▲nstnOiaa  Mortaage,  Land 

aodFI]ittce(^tL)        .^  S8  S  8| 

GonBolidaled  Discount  aim.)  09  10  fit 

ContmotOOrpontlon  (lim.)  100  10  4 
CrMit  Fonder  of  Kanitiiis 

-           -  8»  10  7ft 


OBEDIT,  FINANCE  AND  DISCOUNT  COMPANIES. 


Impoial   ICeroantile  Oitdii 

(LteL) 

IntemRtlonal  haad  Credit  w. 
Joint  Stodc  Diaconnt  (Lim.) 

Land  Seooiities        

London  Fiaandal  AaeodA- 

UonCUm.) 

London  Mercantile  Dimount 
lUocitliu  Land.  Credit  and 

AgencT  (Lim.)       

Naaonal  Diaconnt  Co.  (Urn.) 

Oriental  Financial 

Ottoman  Financial  Aisocia* 

tlon  (lim.) 

Overenid,  Gornej  t  Co.  (Lim.) 
Bociai  Finandaire  d'Bgypte 

(Um.) 

SonthAUean Ifotme  and 

Tuveilment  (Tinr)...       ... 

Wairaat  Finance  CLUn.)    ... 


ffland  ..«       .^      «.  » 

1  Oorpoaratlon  (lim.)  100 

East  India  Financial  ...  60 
Egyptian  Commerolal  and 

%ading       tO 

Sngliah  and  Foreign  Credit  50 

Financial  Diaconnt  (Lim.)...  60 
'ieneral  Credit  and  Finance 

of  London  (Lim.) 88 

International         Financial 

8ocie^(Lim.)       20 

Intemaoonal  OonlcMt       ...  60 


ft 

20 
10 

5i 

4 

I? 

6 
8 

4 

ei 

S 
10 

6 

6 

MM. 

J 

Pftld. 

J 

tetrat 
PrioM. 

a 

60 
SO 
26 
60 

6 

S 
10 

s 

a 

8 

60 
60 

15 
10 

28 

20 
26 
60 

2 
5 
10 

a 

17 

a 

60 
60 

15 
16 

0 

211 

80 

10 

51 

60 
60 

6 
10 

n 

Digiti 


zed  by  Google 


1400 


JOINT-STOCK  BANKS. 


mmt,  PiU.  latMi 


Axrra      and     ICaalannaa*!, 

limited        ^ 

Albion 

Alliance    Bank    of  London 

and  liyerpool,  limited  ... 
Ditto,  lamed  ataopm. ... 
Anglo  Anetiian  Bank 
Anfi^o-Bgyptian  (Idm.)      ... 

An«:lo-lauuai  (Lam.) 

Aaiatic  Banking  Corporation. 

Now  SharealBBaed  at  £U 

pm,  on  which  £7.  lOt,  ia 

paid    ••• 

Bank  of  Anatralaaia 

Bank  of  Britiah  Colnrntala... 

Bank  of  Egypt 

Bank  of  London        

BankofOtago(Limited>  ... 
Bank  of  Qneenaland,  limited 
British  ft  Calilbnuan  (Ltm.) 
Bank  of  New  Zealand 
Bank  of  Tietoria,  AQstraIi& 

Baraed*j»Baiik(Llm.)    

Braxilian  &  PortogneseCIim.) 
British  North  American  ... 
Ohartered   Bank  of  Indift 

Australia  and  China 
Chartered  HercantUe  Bank 

of  India,  London  &  China.. 

Ci^Bank 

Colonial  Bank 

Corameroial  Bank  of  Canada 
Commercial  Bank  of  India 

and  the  Bast         

CobsoUdated  Bank  (Lim.)  ... 

Continental     

Ditto,    New       

Delhi  And  London  Bank  (Ltaa.) 
East  London  (lim.)  ... 

Eaatem  Exchange  ...  •.. 
English  Joint  Stock  (lim.)... 
English,  Scottish  and  Ana- 

tralian  Chartered  Bank  ^ 
Engliflh  and  Swedish  (limO 
European  Bank  (limited)  ... 
Hindustan,  China  and  Japan* 

Limited        

Ditto,  issued  at  2  pm. 
Ditto,  New 

Imperial  (limited) 

Imperial  Ottoman     

Ionian    ...       •••.       ...       ..« 

Ionian,  New      •« 

land  Mortgage  Bk.  of  India 


10 

SS 

67 

80 

10 

7* 

100 

28 

SI 

100 

26- 

80 

SO 

e 

6« 

BO 

121 

14 

SO 

M 

12 

SO' 

6 

i9|di 

40 

40 

tS^ 

SO 

20 

23 

u 

25 

SOI 

100 

60 

140 

so 

0 

74 

100 

26 

20 

60 

71 

0 

10 

10 

10 

60 
60 

25 

10 

^ 

20 

10 

• 

60 

60 

48 

SO 

20 

2H 

S6 

25 

481 

100 

60 

110 

100 

26 

4dl 

so 

20 

S6 

25 

SI 

10 

4 

101 

100 

25 

100 

15 

••• 

60 

25 

S4 

60 

5 

5 

SO 

'iS 

4 

u 

IH 

so 

20 

to| 

60 

20 

16 

60 

16 

m 

100 

25 

10 

100 

.  25 

18 

100 

26 

lU 

100 

20 

^ 

so 

10 

lil 

25 

26 

SO 

26 

5 

4} 

20 

4 

4{ 

London  Bank  of  ICezloo  and 
Sooth  America  (limit 


Ditto,  New 
London,  and  ^Birer  Plate, 

limited    f 

Ditto»  New,  iBBoed   aft 

llim.  ...'      

London  Ghaztared  of  AustzBHa 
London  and  Oovafer  Bank ... 
I/>ndon  Joint  BliMy  Bank  ... 
London  A  Sooth  Afriean  Bk. 
London  and  Booth  Weatem 

njmited)     

Ditio^  ditto.   New 

Londonand  venflsoela  CLhnJ 
London  ^bWartminsterBaak 
Herahant  Bank  (limited)  ... 

Ditto,New 
Mercantile  Ezcbange  (lim.) 
Metropolitan  and  nrarinoial 
Bank.  limited       ...       ^ 
Ditto,  New         .^       ... 
Midland  Bank  (limited)    ... 
National  Bank...       ...       ... 

National  of  IiTernoQl(Iim4 
National  Proyinaal  Bank  of 
Bngiand      ...       .~ 

Ditto,  2d  and  Sdian 
NewSoo^tWalee    ...  -  ...-    -10 
Kew  Zealand  BankOaipen^ 
tionaAnited)       ^       ...      10 

North  Weatem         M 

Oriental  Bank...       t$ 

Oriental  Commeraial  Bank 
(limited),  late  O.C.        ...     90 
Ditto,  <Htto.  late  N.  F....      ^ 
Ditto,  dittos  late  F.C....      ^ 
Provincial  Banking  Corpo- 
ration...      ^       .••       ...     10 

Ditto,  ditto m 

PtOTindal  Bank  of  Ireland.^    100 

Ditto,  New         10 

Scinde,  Pui\jaab  and  Delhi 

(limited)      20 

Ditto,  iaaued  at  2pnu         ..«     90 
Booth  Aoatralian      ...       ...     98 

Standard  of  Britiah  Africa 

gimited^     100 

Do.  New.  famed  at  6  pm.  loo 
Union  Bink  of  AoatraUa  ...  9B 
Dnion  Bank  of  Ireland,  lim.  loo 
Union  Bank  of  London      ...     00 


60 

15 

15 

100 

40 

41 

90 

M 

a 

100 

40 

«5 

SB 

10 

l«i 

90 

90 

Si 

SO 

SS 

:h 

so 

u 

S3i 

90 

SS 

U 

100 

so 

m 

100 

so 

n 

so 

12* 

lU 

100 

SO 

99 

100 

SI 

2^ 

100 

10 

v^ 

00 

10 

«. 

100 

so 

m 

lOO 

90 

17 

lOO 

80 

14 

so 

SO 

79 

100 

10 

ts 

100 


1 
n 


I 

I 

i 


T 
4 
4 

7| 
10 


10 

s 


15 


i 

14 

4 
«4J 


Digiti 


ized  by  Google 


^ink  of  ^glaiiii  WUtklg  Wittmns, 


1401 


'A.ceotmt,  pnxwumt  to  tlie  Act  7th  and  8th  of  Yiotoxia,  cap.  82,  for  the  Weeks  ending  m  foU«>%Tii :~ 

IBBUE  DSPA&THBNT. 


1866. 
Ootober26. 

1806. 
Nov.  1. 

1866. 
Nov.  8. 

1866. 

Nov.  16. 

1066. 

Nov.  21. 

-17Qlfl8i«aed       .^                ...       ... 

27,061,160 

£ 
27,162,206 

£ 
27,819,380 

£ 
27.609.996 

£ 
23.323,900 

Goremment  debentnree        

Other  seeorities 

Gold  coin  end  tmllion 

SihrerboUion      

11.016,100 
3,634.900 
12,411,160 

11,016,100 
3,684^900 
111,612.266 

11,016,100 

3:634,'900 

,12,6«9,380 

11.016,100 
3.634.900 
12,819,896 

11,016,100 
3,684,000 
13,678.000 

27,061,160 

27,162.28» 

27419.380 

27.609.996 

28,323,900 

BANEJNG  DJCPABTHBNT. 


1865. 
(ktaUbnU. 

1866. 
Nov.l. 

1866. 
Nov.  8. 

1866. 
Nov.  16. 

1866. 
Nov.  22. 

PobUo*  dei>08it8  aacmaittf  XadhMiia-' 

OoH  and  DiTldend  Iceoanto) 

Other  DepoBltB    

Seven  d^7  and  other  bills      

£ 
H653,000 
3^18^009 

3,793.882 

13,279.983 

660,346 

£ 

14,663.000 
3,181,692 

4.163.617 
12^79,790 
^38,041 

£ 

14.663,000 
3,188,737 

'622,121 

£' 

14,653,000 
3,197,786 

6,090.149 

12,276,010 

609,001 

£ 

14,653,000 
3,210,648 

0.146.063 

12,878.983 

«K),143 

86,360,969 

86,418.040 

36,299,606 

30.224.965 

87,276,787 

Dead  Weight  AnnoitieB)     

Other  Becnrltles 

Notes         

Oold  and  Silver  coin    

9,308.018 

20,003.638 

6,241.260 

808.063 

9,240.904 
'716)38 

9,740,089 
78^897 

9,741,100 

19,306,882 

6,867,670 

817,108 

9.741,100 

19,004.666 

7.780^940 

791,138 

86j969,9W 

36,416,010 

80,299,606 

36,224.965 

37,276,737 

THE  EXCHANGES. 


Amsterdam,  short 
Ditto  3  months 
Botterto^  ditto... 
Antwerp,  ditto  ... 
BrosselSt  ditto  ... 
Bambnrg,  ditto  ... 

Paris,  short 

Paris,  8  months  ... 
Marseilles,  ditto  ... 
Frankfort,  ditto  ... 
Vienna,  ditto 

Trieste,  ditto 

Fetersbnigh,  ditto 
ICadrid.  dtto  ... 
Cadis,  ditto 


Genoa,  ditto 

Naples,  ditto 

Palermo,  ditto     ... 

Messina        

IJabon,  3  months 
Oporto,  ditto 


Foreign  Gold  in  Ban  (Standard) 

Mexican  DoUttrB  

Silver  in  Ban  (Standaid) 


October  20. 


Nov.  3. 


12  1 

12  2 
26  62 
26  62 

13  10 
86  27i[ 
86  00 
86  00 

1211 

n  171 

U  20 

26  72* 
26  72 
26  72 
26    72t 

26    73 

26    72[ 
61} 
6ll 


PBICE8  OF  BULLION. 


Nov.  10. 


Nov.  17. 


10 


Nov.  24. 


PerOs. 

PerOs. 

PerOs. 

PerOs. 

£  s.  d. 

£  B.  d. 

£  s.  d. 

£  s.  d. 

3  17    9 

3  17    9 

3  17    9 

3  17    9 

0    0    0 

0    0    0 

0    0   0 

0   0    0 

0    0    0 

0    6    U 

0   0    0 

0    0    0 

19 


11 

12  2) 
26  67{ 
26  671 

13  9k 
26  a( 

25  47^ 

26  471 
121i 

11  m 

11  15 

48i 

25  66 

26  06 
26  06 
26  06 
26  074 
25  07# 

811 
«1 


PerOs. 
£  s,  d. 

3  17  9 
0  0  0 
0    6    li 


Digitized  by  LjOOQIC 


1402 


ittk$Ad7te9  rietoria.  c  a»;  ettraetedfron  tht  loaacoi  Gt 

PBIVATB   BANKS. 


XAUOraAKK. 


•«••••  •*••••••••«•••••••! 


■••••••««•••< 


>••«••■••*••• 


••••••••*•«••••< 


t  AshfordBnlL 

a  AylMbmy  Old  Bmk 

3  Bftldock  and  Biggleswade  Bank ... 

4.  Barnstaple  Bank   m.*........-..*.... 

5  Bedford  Bank 

6  Bicester  and  Oxfordshire  Bank  .., 

7  Boston  Bulk — Claypons  and  Co.... 

8  Boston  Bank^Gee  and  Co..«,..,.., 

9  Bridgewater  Bank • , 

10  Bristol  Bank  .••. 

It  Brosel^  and  Bridgnorth  Bank   .. 
la  Bnckingham  Bank , 

13  Baiy  and  Suffolk  Bank. 

14  Banbny  Bank  .... 

15  Banbury  Old  Bank 

1 6  Bedfordshire  Leighton  Boszard  Bk. 

17  Birmingham  Bk. — Lloyds  &  Co.  ... 

18  Brecon  Old  Bank  

19  Brighton  Union  Bank  •..•. 
ao  Banincton  and  Driffield  Bank. 
3t  Buiy  St.  Edmund's  Bank 

22  Cambridge  Bk.— Hortlock  &  Co. 

23  Cambridge  and  Cambridgeshire  Bk. 

24  Canterbury  Bank 

25  Carmarthen  Bank 

26  ChertseyBank   ... 
37  Colchester  Bank... 

28  Colchester  and  Essex  Bank  ^ 

29  Cornish  Bank— Tweedy  &  Co.  ... 

30  Coventry  Bank 

31  City  Bank»  Exeter , 

32  Craven  Bank— Alcocks  &  Co.   ... 

33  Chepstow  Old  Bank  .•..' 

34  Derby  Bank— Messrs.  Evans  &  Co. 

35  Derby  Bank— Smith  and  Co 

36  Derby  Old  Bank 

37  Devises  and  Wiltshire  Bank    

58  Diss  Bank  

39  Doncaster  Bank  and  Betford  Bank 

40  Darlington  Bank  • 

41  Devonport  Bank    ...»••••••••• 

42  Dorchester  Old  Bank    

43  EastCornwallBk.— Robins  &  Co. 

44  East  Riding  Bank— Bower  &  Co. 

45  Essex  Bk.  &  Bishop's  Stortford  Bk. 

46  Exeter  Bank « ^ 

47  Famham  Bank  •.•••••••m«m»«**««*«»* 

48  Faversham  Bank  

49  Oodalming  Bank •»»•-•••••. 

50  Guildford  Bank 

51  Grantham  Bank— Hardy  and  Co.. 

52  Hull  ft  Kingston-npon-HuU  Bank 

53  Huntingdon  Town  ft  County  Bank 

54  Harwich  Bank •.....• 

55  Hertfordshire,  Hitchin  Bank    

5^  Ipswich  Bank 


▲▼XaiLOS  AMOUITE. 


£ 
"t«49 
48.461 
37,323 
i7,iB2 

34,318 
27,090 

75.069 
«5,t6i 
10,028 
48.377 
36,717 
39*657 
82,36a 

43.457 
55.t53 
36,839 
38,Bi6 
68,z7i 
53,794 
ia,745 

3.301 

35.744 
49,9  >  6 
33.671 
23.597 

3.436 
35.08s 
48.704 
49,869 
13,045 
21,537 
77/54 

9.387 
X  3.33  2 
4^.304 
27.337 
20,674 
10,657 

77.400 
86,218 
10,664 
48,807 
112,380 
53,392 
69,637 

37.894 

14,303 

6,681 

6,322 

>4,524 
30,372 
19.979 
56,591 
5.778 
38,764 
31,901 


8epl.lS. 

SsptSOL 

£ 

£ 

11,379 

11,965 

H»879 

25.*30 

»o;489 

20,296 

3.470 

3.749 

30,4*7 

30,287 

15,4*7 

15,071 

70,458 

74,446 

16,179 

14.93* 

6,838 

6,99* 

19,961 

31,165 

18,338 

17.314 

ao.603 

20,866 

48,879 

5o.»i4 

*5^952 

26,511 

19.388 

19.  H9 

34.716 

36,211 

51.119 

55.039 

17.458 

18,718 

13,629 

12,780 

2,920 

J,*19 

9,700 

10,012 

42,4*7 

44.**« 

36,981 

29.131 

,6,361 

16,186 

2,290 

2,222 

16,163 

16,455 

28,053 

28,780 

34.770 

*5.445 

3.871 

4.303 

16,941 

17.004 

76,069 

76.582 

7,695 

8,*55 

8.045 

8.428 

30,482 

32,175 

26,709 

37,380 
6,610 

6,S^6 

10,053 

10,121 

66,130 

67.064 

84,860 

87.897 

6,987 

7.305 

39,620 

39.85* 

77,202 

81,975 

53.671 

54.520 

38,070 

39.794 

18,955 

19.390 

6,318 

6,544 

5,065 

6,535 

4.276 

3.978 

10,084 

10,159 

21.452 

21,981 

16,57* 

16,780 

35.11* 

36.465 

4.733 

5. 017 

31.375 

32.092 

17,248 

17,195 

£ 
11.996 
a5.8o5 

*o,349 
3.945 
3*.9»5 
15.424 
75.910 

14,14* 

6,967 

*3.»43 

t6,«47 

2L»202 

5a,oi8 
*7,3*5 
■9.95^ 
38.397 

55,667 

t9.55« 
12,230 

2,9*0 
11,190 

47,670 
35.54J 
15.398 

2,3*1 

18,134 
31.3*1 
36,439 

4.033 
17.087 
77,**9 

7,745 
10.163 
38.033 
*7.765 

6,664 
to,  195 
70.9*0 
87.540 

7. '42 
40,*79 
85,245 
51,063 
41,800 

*o.99* 

6,769 

7,*52 

4.311 

io,5"o 

*3.074 

19.094 

37.677 

S,447 

»»,13* 

19.390 


osua 


11.771 

*6.£65 

ao,?i* 

3,630 

S3.i9« 

i6.e9i> 

75.700 

I4.37i 

6,^1} 

23.S7' 
i6.7cl 

*i.9y 

53.91J 

27.5^1 

I  i9.:3» 
36,63* 

55.45» 
J  19.13' 
I  ii,o*i 

2.741 

I  ii.56> 

50.4^ 

37.759 

I5»i6« 

I     2,205 

•  17,277 

•  31,058 
I  26.955 

3.9+5 
16,54* 
76,132 

7,774 

9.:« 
40.^94 
26,541 

6.5i* 
io»4.' 

74.':> 

63.S(i 

6.94? 

41.4^5 

85,261 

5«.4» 

4*.M3 

20,55* 

6,531 

5.9.5 
4.5*' 

io,:-5 

24.5^ 

19.453 

38,95^ 

5.C9> 

S*.5«- 

30,5- 


Digitized  by  LjOOQIC 


WBSKLT  RSVtTKNB   Of  BAKKB  OF 


MOS 


NAME  OI*  BANK. 


-57  I|>8wich&I7eedbamMArk6tBank 
^$8  Kentish  Bank— Meroer  ft  Cou  . 
.59  Kington  and  RadnonbireBank. 
>6o  Knaresborough  Old  Bonk  ..•»^. 
•61  Kendal  Bank    •»..•••••.•••••••••••. 

62  Longton  Staffordshire  Bask  ••«. 

63  Leeds  Bank  » m...,...., 

^64  Leeds  Union  Bank  • ...*.«..., 

"S^  Leicester  Bank. ..,»...«.«. 

66  Lewes  Old  Bank  ..^ 

67  Lincoln  Bank  , 

66  Llandovery  Bank  &  LlandiloBank 
^  Loughborongh  Bank  

70  LymingtonBank..... 

7 1  Lynn  Regis  and  LineolnsbireBank 

72  Lynn  Kegisand  Norfolk  Bank 

73  Macclesfield  Bank 

74  Manningtree  Bank 

75  MerionethsfaireBank  

76  Miners' Bank 

77  Mbnmonthshive  Agricoltnral  and 

"Comniercial  Bank  •••.•••••••< 

78  Monmonth  Old  Bank  ..•.• , 

79  Newark  Bank  ...., 

So  Newark  and  Sleaford  Bank  ... 

81  Newbury  Bank..*..... , 

Sz  Newmarket  Bank .,.••... 

83  Norwich  Crown  Bankand  Norfolk 

and  Suffolk  Bank , 

84  Norwich  and  Norfolk  Ba^  ..^.. 
Sk  Nottingham  &Nottinghani8h.Bk. 

86  Naval  Bank,  Plymouth 

8?  NewSammBk.— PittckneyByBvoB. 

85  Nottingham  Bank 

89  Oswestry  Bank    «•......., 

90  Oxford  Old  Bank 

91  Old  Bank,  Tonbridge 

9*  Oxfordshire  Witney  Bank 

93  Pease's  Old  Bank,  HoU  

94  Penzance  Bank    .,..„.,. 

95  Pembrokeshire  Bank  

96  Reading  Bank — Simonds  ftCo.... 

97  Reading  Bk.—Steplieni,Bland7&Oo. 

98  Richmond  Bank,  Yorkshire  

99  Rochdale  Bank 

100  RoystonBank  ...•••.••••••• 

loi  Rugby  Bank ^ 

10*  Rye  Bank 

t03  Saffron  Walden&NorthEssexBk. 

104  Salop  Bank  , 

X05  Scarborough  Old  Bank  •• , 

106  Shrewsbury  Old  Bank. , 

107  Sittingbonrne  and  ICilton  Bank.. 

1 08  Southampton  Town  &  County  Bk 

109  Southwell  Bank 

zio  Southampton  and  Hampshire  Bk. 

Ill  StaffordOld  Bank  

lis  Stamford  and  Rutland  Bank ... 

113  Shrewsbury  an  d  Welsh  Pool  Bank 

114  Taunton  Bank  .•..•....«• 

•115  Tavistock  Bank  •• •.....•. 


Anfhor 
iMd 
Israe. 


£ 
80,699 

» 9*895 

56,050 

ai,825 

44,663 

5,6z4 

53.357 

37,459 

32,3»2 

44.836 

100,342 

32,945 

7,359 

5.038 

42,817 

»3f9i7 

15.760 

7,69* 
10,906 
iS;688 

>9.335 
16,385 
28,788 
5>.6i5 
36,787 
23,098 

49.671 
»«>5.5>9 

10,866 

»7,3ai 

'5.659 
31,047 
18,471 
34.391 
13.183 
11,852 
48,807 

11.405 
12,910 

37,519 
43-27 « 

6,889 

5.590 
16,393 
17,250 
29,864 
47.646 
22.338 
24.813 
43.191 

4.789 
18,589 
14.744 

6,770 
I4»i66 
31,858 
25.336 
29.799 
'3,421 


AVBRAQB  AMOUNT. 


Sept.a3.     Sept^ao.      Oot.r.    I  Ocft.14 


£ 
52,447 

'2,375 
25.731 
19,155 
43,590 

5 1 '40 
55,561 
37,650 
23,82a 
29,642 
84,060 
21,169 

6,729 

2,475 
31,504 
11,261 

13,473 
5,5'5 
8,965 

18,401 

29,905 

4.695 
20,849 

45,455 
13,349 
14,931 

45.288 
72,007 

19,962 

6,383 

22,494 

11,915 

29,456 

8,067 

9.566 

48.243 

8,366 

10, 9H 

25,895 

24,519 

6,133 

1,379 

8,559 

9,132 

10,310 

20,328 

9.559 

21,534 

29,753 

3,445 

8,859 

8,900 

1,981 

11,825 

x8,27« 

22,005 

21,047 

13,183 


£ 

53,875 

14,662 

26,801 

19,354 

44»99i 

5,185 

£3.249 

38,125 

25,877 

31.295 

87,579 

21,992 

7,368 

2,813 

3I1575 
12,760 

13,513 
5,770 
9,*57 

18,608 

30,803 
4.831 
22,770 
46,140 
13,770 
15,052 

47,478 
75,785 

20,895 
6,380 
22,540 
12,433 
30,222 

9,469 
9,64* 

48,386 

8,625 

10,875 

2<,  864 

25.655 
6,260 
1,280 
8,510 
9.566 

12,559 
21,019 

9.935 
2a, 00} 

28,929 
3.435 
8,710 
9,308 
2,153 
11,950 
18,864 

23,035 
21,716 
13,183 

Digitized 


£ 

57,147 
18,698 
26,871 
20,131 
45,883 
5.260 
52,759 
36,094 
26,904 

33.057 
91,970 
22,225 
7,936 
2,887 
32,879 
12,841 

13,435 
6,011 

8,928 
18,625 

29,W| 

4,927 
23,391 
47,197 
15,084 
15*897 

50,887 
81.234 

23,486 
6,760 

23,745 
12,286 

32,875 

II, 5H 

9,322 

50,145 

9,236 

10,890 

26,898 

28,070 

6,468 

1,059 

8,404 

9,385 

21,828 
10, 246 

23,360 

31,761 

3.595 

10,111 

9,455 
2,288 

12,931 
18,896 
23,706 

21,95^ 
13,000 


L^oogle 


£ 
58,93s 
19,711 
«4,536 
20,831 
43,365 

5,315 
51,670 

3^,775 
28,646 

95,325 

20,592 

7,2^ 

2,877 

35,73« 

13,700 

i»,85i 

5,772 

8,781 

18,867 

26,086 

4,589 

24,553 

49,720 

15,635 
16,825 

50,013 
86,905 

22,920 

6,671 

25,097 

12,126 

32,970 

12,145 

9,357 

47,540 

9,108 

11,786 

28,070 

27,49^ 

6,597 

925 

8,337 

9,423 

13,382 

22,017 

9,706 

24,089 

32,718 

^,783 

9,3^7 

9.894 

2,298 

13,033 
19,767 
»3.35' 
22,439 
13,548 


1404 


WUKLT  RfeTTRNS  Of  BANKS   OT    ISSVS. 


KAHBOFBANX. 


£ 

10,026 

U.531 
10,801 
17.003 

17,064 
30,504 
6,5*8 
♦«,i58 
I4»a58 
'5.892 
16,461 
37,602 

59,713 
7,602 

87,448 
1 1,867 
53»o«o 
i3i»»9 
4^.387 

JOINT  STOCK 

I  Bank  of  Westmorland 


116  Thornbofy  Bank • , 

117  Tiverton  and  Deronihire  Bank . 

118  Thrapstone  and  Kettering  Bank.. 

119  Triug  Bank  and  Cheabam  Bank 

lao  Towcester  Old  Bank  

lai  Union  Bank,  Cornwall 

122  Uxbridge  Old  Bank 

123  Wallingford  Bank   • , 

124  Warwick  and  WarwicksbireBank 

125  Wellington  Bank,  Somerset  .., 

126  West  Riding  Bank , 

127  Whitby  Old  Bank   , 

|28  Winchester,  Alresford&AltonBk. 

129  Weymouth  Old  Bank 

130  Wirkswortb  and  Derbyshire  Bk. 

131  Wisbeach  and  Lincolnshire  Bank 
13a  Wiveliscombe  Bank 

133  Worcester  Old  Bank , 

134  Wolverham.  Bk.— R.  &  W.  Fryer 

135  Yarmonth  and  SnflTolk  Bank 

136  Yarmonth,  Norfolk,  &  Suffolk  Bk. 

137  York  Bank  


Author^ 
iied 


AVEBA6B  AKOUKT. 


SaptSS.    Bept-SO. 


£ 

8,145 
9,260 

11,487 
14.  H7 

6.355 
Iff  "8 

7,818 

5.a»3 
18,246 

3.677 
40,082 

13.973 
10,433 

35.H3 
38.015 
4.«37 
^6,728 
10,633 
36,669 

8,5" 
3815*8 


£ 

8,597 
10,050 
11,633 

«3.9<» 

6,769 
I5.»73 

8,141 

5.77* 
i8,a4a 

4.»»3 
41,036 
14,*18 
10,738 
15.83* 
3«.303 
40,309 

6,261 
61,61a 
10,798 
38,306 

8,807 
39.350 


2  Bamsley  Banking  Company   ... 

3  Bradford  Banking  Company  ... 

4  Bilston  District  Banking  Company 

fBank  of  Whiteharen 
Bradford  Commercial  Banking  Co. 

7  Burton  ,Uttoxeter ,and  Staffordshire 

Union  Banking  Co 

8  Cheaterfiald  &  N.Derbysh.  Bk.  Co. 

9  Cumberland  Union  Banking  Co.... 

10  CoTentiy  and  Warwickshire  Bk.Ca 

1 1  Corentry  Union  Banking  Company 

12  County  of  Glouoester  Banking  Co. 

1 3  Carlisle  &  Cumberland  BankingCo. 

14  Carlisle  City  and  District  Bank  ... 

15  Dudley  &  West  Bromwich  Bk.  Co. 

16  Derby  and  Derbyshire  BankingCo. 

17  Darlington Dist.JointStockBk.Co. 

18  Gloucestershire  Banking  Company 

19  Halifax  Joint  Stock  Bank... 

20  Huddersilcld  Banking  Company... 

21  Hull  Barking  Company  

22  Halifax  Commercial  Banking  Co... 
13  Halifax  &  Huddersfield  Union  Bk, 

24  Holston  Banking  Company 

25  Knaresborongh  and  ClaroBk.Ca 

26  Lancaster  Banking  Company 

27  Leicestershire  Bankinp^  CompanTM. 

28  Lincoln  and  Lindsay  Banking  Co.. 

29  Leamington  Priors  and  Warwidc* 

shire  Banking  Co....« 

30  Ludlow  and  Tonbury  Bank 

31  Moore  &  Robinson's  Notts.  Bank. 

3  2  Nottingham  and  Notts.  BankingCo. 

33  NationalFrovincialBk.  of  England 

34  North  Wilts  Bimking  Company 


12,22c 
9.5^3 

49.292 
9.4»^ 

32,681 

20,084 

60,701 
10,42) 
35.395 
a«,734 
i^,*5' 
«44.35* 
»5,6iG 

19.97^ 
37,696 
20,09 
26,134 

18.534 
37,354 
*9.333 
>3.733 
44*»37 
",503 
a8,059 

64,3 1» 
86,060 
51,620 

13.875 
10,215 

35.8 

*9.477 

44*.37> 

63.939 


BANKS. 


11,071 

9.718 

49,670 

8.899 
26,689 
io,a55 

4«»S«o 
8*490 
36,850 
15,200 
11, 206 
99.945 
*5.079 
10,00a 
27,830 

so, 975 
17.  "8 
144,366 
17.833 
30,996 
18,788 

i*.973 
40,«95 

26,378 
53.369 
50,150 
5»iUa 

9f739 
iOtio5 
i8,ti6 
»i,674 
1446,633 
43.404 


",4*7 

9,7*0 

50,138 

9,730 

s6,956 

10,000 

43.«SO 

9.»«3 
35.509 
»5.53» 
i*.3«5 

102«014 

*5.095 
19.847 
18,528 
40,556 
s7,768 
"47,905 
i«.356 
34.i63 
29,800 
13,111 
39,616 
«.5o8 
16,403 
54.360 
53.189 
55.490 

9.9«« 
10,387 
27,688 

15. 79* 
439.930 

45. 64* 


Oct.  7. 


£ 

«.55« 
10,143 
",365 
12,487 

7,339 
16.958 

9.031 

5.916 
18,665 

4.340 
42,186 
14,105 
11,386 
16,312 
37.31* 
43.7*1 

5.84* 
65. 74* 
10,587 
41,980 

8,681 
41,017 


11,822 
9.495 

48.175 
9.«i7 

17,64a 

19.874 

45.7*0 
9,926 
3a, i6d 
17.486 
13.673 

107, i8i 

*5,i73 
19.814 
3i.**3 
i8.*59 
26,234$ 
151,61a 

18,4*4 
SI.805 
18,524 
13.468 
41,181 
1.488 
17.330 
57.009 
57.051 
53.485 


10,707 

10,|01 

29,809 
16,066 


Oct.1^ 


418, 
45 


134 

674 


£ 

8,754 
9:9«o 

11.654 
13.039 
7,760 

17,3«9 
9,o«4 

6,4*5 
19,348 

4,057 
44.9" 
14.397 
11,58s 
16,144 
3«.*38 
48,609 

5.594 
67,118 
10,917 
43.550 

8,761 
41.651 


",708 
9.*5* 

49.096 
9.300 

18,069 

S9.98A 

47.685 
ic,?59 
31.705 
i»,455 
13.085 

110,439 
i5.*36 
19.745 
31,083 
18.547 
*3.*o5 

15*.477 
18,011 
37.463 
18,051 

13.39* 
44.037 
1.500 
17,390 
60,301 
62,401 
44.^98 

11.015 

9*890 
31.787 
17,056 

4*1. 77« 
47.539 


Digitized  by  ^OOQ IC 


WS£KI*)[  UTUBNS  Of   BAK&S  Off    18SCT. 


1405 


KAMB  OF  BAKE. 


35  NoiihiiiDptoiisbir&UDionBank  .. 

36  Noiihainptonshire  BaDkini;  Co.  .. 

37  North  and  South  Wales  Bank.... 
3S  Pare*8  Leicestershire  Banking  Co. 

39  Saddleworth  Banking  Company  . 

40  Sheffield  Banking  Company 

41  Sumford,Spaldi9g&Bo8tonBk.Co. 

42  Stuckey's  Banking  Company  , 

43  Shropsbiro  Banking  Company 

44  StonrbridgeaDdKiddermiusterBk 

45  Sheffield  and  Hallamshire  Bank  .., 

46  Sheffield  &IlotherhamJt.StockBk 

47  Swaledale  and  Wensleydale  Bank.. 

48  Wolverhampton  &  Staffordsh.  Bk.. 

49  Wakefield  and  Barnsley  Union  Bk. 

50  WhitehareiL  Joint  Stock  Bank    ... 

51  Warwick  and  Leamington  Bk.  Co. 

52  West  of £ng.&  S.Wales  DistrictBk. 

53  Wilts  8i  Dorset  Banking  Company 

54  West  Riding  Union Bankinff  Co.... 

55  Whitchurch  and  Ellesmere  Bk.  Co. 

56  Worcester  City  and  County  Bk.  Co. 

57  York  Union  Banking  Company  ... 

58  York  City  and  County  Banking  Co. 

59  Yorkshire  Banking  Company  ... 


Aothor- 
ized 
Issue. 


£ 
84,356 
26,401 

63.95' 
59,300 
8,122 
35.843 
£5.721 
356.976 
47.951 
56.830 
23.524 
52,496 
54.37a 
35.378 
14.604 
31,916 
37.124 

76.162 

34.019 

7.475 

6»848 

71,240 

94,695 
122,532 


AVBBAGB  AMOUKV. 


£ 

64,308 
»9.705 
66,170 
50,139 
3J0 
39,116 

48.255 
310,289 
37.586 
49.722 
23.534 
51.532 
50,299 
22,859 
14.084 
24.74« 
25.457 
83.178 

75'*'9 
35»4J0 

5.887 

71,01* 

93.484 

125.472 


£ 

65,079 
19.365 
62,021 
51.645 
330 
37,043 
49,618 

319,189 
38,750 
50,994 
23,603 
53,447 
51.665 
a3.859 
H.535 
26,662 
25,562 
84,659 
74.740 
33,110 
5.661 
5.807 
70,567 
94.982 

131,460 


BfptSL    Sept 90.      Oct. 7.      Oct.  14 


£ 

70,56* 
20,651 
54.536 
56,3*8 
330 
31.644 
54.766 

33M15 
38,895 
57,799 
21,548 

5».'53 

1:2,640 

28, 186 

14.48* 

26,985 

27,260 

76,476 

74.850 

32,602 

6.134 

5.693 

70,717 

9*. 571 

117,585 


£ 
68,346 
19.277 
57,059 
54.048 
330 
35.225 

52,397 

330,175 

38,122 

55.437 
25.384 
53.534 
52,239 
24,063 

14. 754 

27,430 

27.865 

85,163 

75.482 

31.483 

5.983 

5.735 

70,938 

96,153 

121,734 


itisff  m^  »coUt)  Cirntlatt'on  ^ttnm^ 

Avffru§t  Greubikmt  and  Coin  KM  hy  tU  Irubb  ond  Scotch  Bahks  drnnng  ihejbur 
w$€k$  ending  Saiurdag^  Ms  14^^  day  qf  October,  1865. 

IRISH   BANKS. 


W AltB  OV  «AW 

ClrattUttoB. 

AT«if«  CiTMlatiim  4«iaf  Vmi  WmIw 
radtiis  «•  aboft. 

GoldlsiU 
terColnktld 

iBSaad 
•pvarto. 

VuUtM, 

TetaL 

during  ro«v 
Vtektcadlac 

Bank  of  Ireland .•••-.... 

ProTincial  Bank  of  Ireland 

Belfast  Bank  ^ 

Northern  Bank  ...m.......... 

Ulster  Bank. , 

£ 

3.738,428 
927,667 
281,611 
243,440 
311,079 
852.269 

£ 
1,658,825 
439.826 
149.596 
119.442 
206,353 
711,118 

£ 
1,157,275 
540,550 
334.861 
289,906 
333.824 
656.137 

£ 

2,816,100 
980,376 
494.458 
409.348 
540,178 

1,367.255 

£ 

498,380 
34*.o57 
275.060 
213,218 
274.300 

The  National  Bank 

717.544 

ToTAi.1  (Irish  Banks)  ...j 

6,354.494 

3,285,160 

3.3»,553 

6,607,715 

*,3*o,559 

SOOTGB   BANKS. 


Bank  of  Scotland  

Royal  Bank  of  Scotland 
British  Linen  Company... 
Commercial  Bk.  of  Scotland 
National  Bank  of  Scotland. 
Union  Bank  of  Scotland  ... 
Aberdeen  Town  and  Co.  Bk. 
North  of  Scotland  Bk.  Co..< 
Clydesdale  Banking  Co.  .. 

City  of  Glasgow  Bank 

Caledonian  Banking  Co.  .. 

Central  Bank  of  Scotland.. 

Totals  (Scoieh  Banks}.. 


300,485 

216,451 

438,024 

374.88c 

297,024 

454.346 

70, 133 

154.319 

274.321 

72,921 

53,434 

42.933 


2.749.271 


180,501 

203,897 

174,903 

200,113 

180,946 

192,102 

64.827 

99.327 

142.705 

137,432 

28,92* 

35.955 


1,631,631    2,883,771 


327.505 
344,180 
318,033 
386,799 
318,489 
392,569 
92,473 
IH.673 
a45.»39 
245,692 

50.045 
38,074 


508,007 
548,077 
472,936 
586,913 
499,435 
584,671 
157,300 
314,000 
387,944 
383.124 
78,968 
64,029 


4. 515.404 


274.995 
381,815 
247,49«> 
288,835 

258,035 
236,921 

99.985 
87.025 
149. *9 2 
353.683 
35.708 
28,227 


2,44»iOi7 


Digitized  by  LjOOQ IC 


1406  ciftcniAxioN  BBnrBHB. 

BUMMAKI  OB  WfiBKLY  BSTUBN8  OF  BANKS  OF  IBSUB. 


135  FriTB«eB«Db  ....^ 
59  Joint-atockBanhi  . 


«]94 


3^a6,J57 


Tott]i.*..^M*  I 


7,3«S»7»« 


B^A.  ».  I  fl^ptao. 


Oetr. 


£»,988,8f7  |£3»o7i.it9  l£|,r93,«f9  te3,s3M9f 


a,904,»8o     a,905,o»3J   2,936,615 


5.»93f«*y 


.^vmyt  Weekfy  Oinmlatton  of  tbeae  Banks  ibr 
$h6  month  ending  Oolober  14th  »— 

PriTate  BankB      ...       ...       jB3.ia.0M 

Jotoi-atoOkBtttal        ...       ...       ...    tfil»,lU 

Average  Wee'klyCixcdlatlon  ofPiivaka 
and  Joint-Btook  Banks  ending  aa 
above      ...        ...       ...        ^.        ...£6,041.U8 

On  a  oompariaon  of  the  abOre  vrlth  the  Betuma 

for  the  numth  ending  Sept.  16th  !aat»  it  ahows:— 

Ajiittereau  in  the  notaa  of  Private     

Banks,  of..       ...       ..       ...       ...    A200«087 

AntiitfrMM  in  the  aotOi  of  Joinft-Stock 

.of. ...      14lh8W 


TotallaeriBM  on  the  montli ., 


with  tiM  fl 


OdLlL 


*.WO.«39 


^i«M3J 


October  UKh.  iSHtti 

A  tfcereoMitt  tfM  aotea  of  Prfral* 

Banks  of... 
An^MfwHsia  th»iiOlMogJ_„ 

Banks,  Df...       ^       ...       ...  83;ns 

Total  itamtm,  as  uomnai^  wMh  ^a 
aame  period  of  teat  joar       .»       —     £Bjm 

Thelblkmingis  the  oomiiaratlva  ateAa  of  tka 
eircDlaflon  aa  regards  the  fixed  iscaea: — 
The  Private  Baaka  are  Maa  «Hfer 

ftndiasnea       ...       ...       _       , ,  ^ a^yjiy 

The  Joint-Stoflk  Banks  aia  Mm  ihair 

fixed  issaas       .«...      —       ^     907,91 

TMaL  -^— 


SmiMABT  OF  imSH  ft  SCOTCH  BETUBKS  to  OCrOBEB  U,  IflM. 


The  Retams  of  OixDolstioa  of  the  Irish  and 
Seotoh  Banks  fbr  the  fonr  w^ks  ending  Octo- 
ber 16th  when  added  together,  givo  the  following 
as  the  average  weakly  drcnlation  of  these  Banks 
during  the  past  month,  vis. : 
Average  Circolotion  of  the  IriiAi  Banks  46,607,718 
Average  Circulation  ofthe  Scotch  Banka  4^16,4M 

TotaVAverageCironlatlonofthesebanka 
for  the  past  month    £11,188,110 

On  comparing  these  amounts  with  the  Returns 
for  the  month  endmg  16fti  Sept.  lest,  they  6how— 
Increase  in  theOircutationoflrishiBankB  £689,1X8 
IncrDOieintheCiroulationof  Scotch  Banks209,SiS 


Total  inorease  on  the  numOi 


And   as  compared  with  the 
October  is&i,  1804,  thar  ahow— 
increase  in theCirenlanonoflTtthBanks  £798,781 
iDcreaao  mtheCirculation  of  Scotch  BankB817,090 

Total  inoreaaaoBfhe  year £1,009,790 


The  find  iBBuea  offbalridi  aad  fieeadk  I 
at  the  miaaiil  time  ai»  stwaa  ia  1 
Afmamac^  aafiiUowa?" 
6  Bankatn  Ireland,  altowedto ii 
U  Banksin8ooasa4,a]lowadtoianB     ViMn 

18  BKtoiasl],saoifaAtel 
The  foUowing  appoaa^  1 
oomparative  state  ofthe  etrcnlatian  r— 
Irish  Banks  are  above  their  fixed  i 
BootchBankaaiortwvatihairlUBil  iaiw  1.7m;]S8 


TMalaliorsfliheflzsdfaBV  ...*.« 


£3;0I8,IM 


The  Maonnta  of  Gold  and  BiiviBr  held  MAm 
head  offleeeof  vieeevend  Danka,  ttiioag  flue  psBt 
jnonfeh,  havabeaa  aa  Iblloiva : — 
GoIdandSilverheld  ly  the  Irish  Btmka  CMB8.868 
GoldandfiUfarheldbythoSootahBaBks  VmjKf 

Total  of  GoU  and  SUvarCoiiL MK^^jn 

BeiBganiBCreaBeof£8tt,8Bianiha  partcftba 
Iriah  Banks,  and  aninoreaaa  of  £B8,aaoeB  tha 

;  of  the  Bootch  Banks,  onthasavaial  i 

I .-  -  .»  -     «    .      »»    _        ^- 
I  Dy  wieni  inmag  uib] 


parte 
Qdl 


CmC  ULATION  OF  THB  UNITED  EIKGDOM  TO  OCTOBER  U,  1865. 

The  following  is  tho  state  of  the  Note  Circalation  of  the  United  Kingdom  flar  tfas  aoalk  «■ 
the  14th  October,  1865  :— 
Oircolation  of  Notes  ibr  the  Honth  ending  Uth  October,  as  oomparadivttbttDe  paevluus 


Bank  of  Bngland  (month  ending  Oct.  11) 

Private  Banks 

Joint-Stock  Banks 


Sept.  16. 
£21,617,746 
2,861.015 
8,774,785 


87,254.448 
4,805.661 

6,r 


Oct.  14. 
«61,066.514 
8,188.008 
:2,919,15A 


86,006^690 
4,618,404 
6,608,716 


Ili< 


£847,769 
880L067 
144^869 


76I,82S 

aoo^sa 

689.128 


Total  in  Sngland.^....... m... 

Scotland.. ........... ....^ 

Ireland .••...m.***.*.... 

United  Kingdom £97,488,509       £8^189,769  1,881,100 

The  comparison  of  the  month  ending  Ooteher  IStfa,  180i  with  flMmoBth  ending  OoMisr]4dL 
1863,  shows  an  increa§t  in  the  Bunk  of  England  oixenlatioii  of  £1478,816;  aisii^rsis  in  Privaia  Basis  of 
£5(\433,  and  an  increase  in  Joint-Stock  Banks  or£33,ai8s  befaiga  totalfocTMM  in  Bnglaadaf in,l£l,868 ; 
while  in  Scotland  there  is  an  inertate  of  £817,069;  and  in  Ireland  an  iutrta—  of  £m,7ai.  Tkas 
showing  that  the  month  endfaig  14<ai  October,  aa  oonKpared  with  the  asms  period  test  yaar,  pi6MB» 
an  increoM  of  £l,161,06Uin  JSi^aii4»  and  an  mermm  of  £a,190,a68in  tha  Vmttd  li^mt. 
Tho  return  of  Bnllion  in  the  Bp^^X*  of  England,  fior  the  oianth  endiag  potober  1) 


aB:?reirnto  amount  in  both  department :  of  £13,6i5,80flL  On  a  oompariaon  of  thia  wttk  Iha 
tho  mouth  ending  Sept.  ISth,  there  appeon  tobd  a  dtevMm  of  £771,948 1  saod  aa  laanasse 
08  com  [in  red  with  the  same  period  last  year. 

The  »tock  of  speoie  held  by  the  Banka  in  Scotland  and  Ireland  daritag  tha  nwaih  aaateig  14lh 
Ootolxir  WAS  44,7(U,676i  being  nn  mctms*  of  £807476  aaeompared  wUhfhe  Ratom  of  Aw  gtawiOM 
monUi,  ar.d  an  inereoee  of  £iV\r>:^  ns  compared  With  ths  ooneapoading  p«rioakgl|^r> 


Digitized  by  LjOOQIC 


Punuantto ^eAdlU^  FietoHa^  c, 82;  eatraeUd/ram  the  LovDoir  QADxra. 
PBIVATE    BANKS. 


NAME  07  BANK. 


Author^ 

ized 

Issae. 


1  AshfordBank    , 

2  Aylesbnij  Old  Bank , 

3  Baldock  and  Biggleswade  Bank  ...| 

4  Barnstaple  Bank i 

5  Bedford  Bank | 

6  Bicester  and  Oxfordshire  Bank   ... 

7  Boston  Bank— Claypons  and  Co....j 

8  Boston  Bank — Gee  and  Co ' 

9  Bridgewater  Bank 'i 

10  Bristol  Bank  | 

11  Broselej  and  Bridgnorth  Bank    ...  i 
iz  Buckingham  Bank 

13  Burj  and  Suffolk  Bank 

14  Banbury  Bank    ,„„ 

15  Banbuiy  Old  Bank 

1 6  Bedfordshire  Leighton  Buzzard  Bk. 

17  Birmingham  Bk.— Lloyds  &Ca  ... 

18  Brecon  Old  Bank 

19  Brighton  Union  Bank 

20  Burlington  and  Driffield  Bank 

21  Bury  St.  Edmund's  Bank 

22  Cambridge  Bk. — Mortlock  8c  Coc 

23  Cambridge  and  Cambridgeshire  Bk. 

24  Canterbury  Bank  „., , „ 

25  Carmarthen  Bank 

26  ChertseyBank   

27  Colchester  Bank , 

28  Colchester  and  Essex  Bank 

29  Cornish  Bank — Tweedy  8c  Co.   ,. 

30  Coventry  Bank  , 

31  City  Bank,  Exeter , 

32  Craren  Bank — Alcocks  &  Co.    .., 

33  Chepstow  Old  Bank 

34  Derby  Bank — Messrs.  Evans  &  Co. 

35  Derby  Bank— Smith  and  Co 

36  Derby  Old  Bank    

37  Devizes  and  Wiltshire  Bank    . 

38  Diss  Bank 

39  Doncastcr  Bank  and  Retford  Bank 

40  Darlington  Bank  ....« 

41  Devonport  Bank    ....••••• 

42  Dorchester  Old  Bank    

43  East  Cornwall  Bk.—Bobins&  Co. 

44  £ast  Riding  Bank— Bower  &  Co. 

45  Essex  Bk.  &  Bishop's  Stortford  Bk. 

46  Exeter  Bank , 

47  Farnham  Bank •«.•••••.•••«•... 

48  Faversham  Bank  ...•« 

49  Godalming  Bank  ...••••••• ••••.. 

50  Guildford  Bank , 

51  Grantham  Bank— Hardy  and  Co. 

52  Hull  &  Kingston-upon-HuU  Bank . 

53  Huntingdon  Town  &  County  Bank 

54  Harwich  Bank   ..J , 

55  Hertfordshire, Hitchln  Bank    ...... 

56  Ipswich  Bank • • 


£ 

11,849 
48,461 
37,223 
17,182 

34,ax8 
27,090 
75,069 
15,161 
10,028 

48.177 
26.717 

*9,657 
82,362 
43,457 
55,153 
3M19 
38.816 

68,271 
33,794 
i*,745 

a5,744 
49,9^6 
33,671 
23,597 
3,436 
25,082 
48,704 
49,869 
» 2,045 
a»,527 

77:^54 

9.387 
13,332 
41,304 
27,237 
20,674 
10,657 
77,400 
86,218 
10,664 
48,807 
1 12,280 
53,392 
69,637 
37,894 
14,202 
6,681 
6,322 

I4,5a4 
30,372 
19,979 
56,591 
5,778 
38,764 
21,901^ 


AYEBAOB  smomrr. 


Oct.  21.    octfsa. 


£ 

12,070 
^5.979 

20,476 
4,242 

3»,377 
16,030 

74,872 

"4,975 
7,482 
23,026 
16,309 
20,780 

51,897 
27,023 
19,318 
36,226 

55,720 
18,893 
12,248 
2,720 
13,104 
48,805 

31,984 

14.970 

2,117 

16,932 

29,765 
24,949 

3.679 
i6«o86 
74.380 

7.585 

9,829 
40,047 
26,946 

7,040 

9,666 
75.976 
85.4*2 

6,916 
40,225 
85,900 
52,238 
41.195 
21,737 

6,825 

5.916 
4,4co 
10,313 
25,177 
18,751 
37,520 
4,871 

31.315 
19,844 


£ 
11,049 
*5.582 
20,631 

4.1*3 
31,661 

15.354 

74,280 

14.7*0 

7,661 

**.355 
16,094 
20,633 

51,674 

26,882 
18,770 
35.670 

54i88i 
18,976 
12,226 

2,684 
13,900 
48,167 
30,283 
15.252 

2,041 
16,530 
28,958 
*5»5.'^o 

2,930 
16,765 
72,932 

7.650 

9.445 
37,821 
27,152 

7,071 

9.961 
76,190 
86,120 

6,184 
40,171 
84,803 

52,325 
40,020 

*o.748 

7.646 

5»79i 

4.395 

10,184 

25,681 

17,722 

35,282 

4.751 

30,907 

19,826 


Nov.  4. 


£ 
10,765 
25,630 
20,056 

4.177 
31.715 
14,939 
73,755 
14,184 

7,526 
22,698 
17,282 
20, 702 
50,492 
26,484 
18,880 
35,171 

54.1" 

18,998 

12,197 

a, 625 

47,180 

31.357 
15,000 

2,109 
16,247 
29.330 
26,022 

2.476 
16,429 

71,559 

7,442 

9,564 

38,855 

26,932 

6,780 

10, 168 

74,411 

85,139 

6,379 

40,130 

84,i«7 

52.113 

38,589 

20,130 

7,811 

5.720 

4.441 
10,147 

24,436 
16,820 
34.510 

5.C02 

31.819 
19.252' 


Nov.  U. 


£ 
11,169 
25.129 

20, 141 

3,516 
30,834 
14,800 
71,676 

15.050 
7,298 

**»595 
17,099 
20,122 

49.379 
25,862 
18,865 
35i35* 

53,555 
18,834 
12,158 

2,783 
14,747 
45*929 
30,230 
14,67* 

2,014 

15,9*3 

28,331 

27,311 

16,468 

70,692 

6,990 

9.711 

38,7*5 

25.034 

6,474 

9,918 

72,823 

83,201 

6,504 
39.370 
83,897 

5**893 
37,002 

19.486 
7,300 
5.511 

4,545 
9,964 

24,041 

17,301 

33.5*3 
5.050  • 

31.571 
18,968 


Digitized  by  LnOOQlC 


1409 


WBXKIjr  BBTUBNt  OF  BAKKB  OF  nSUX. 

■  ■  I'H       t 


NAME  OF  BJLNK. 


57  Ipswich  &NeedhaBiMArketBanlL 

-58  Kentish  Bank— Mercer  ft  Oo.^  .. 

59  Kington  and  BnddordureBuik.. 

te  Kasreshorough  Old  Bank 

61  Kendal  Bank    ^ 

6a  Longton  Staffordshire  Bank 

^3  Leeds  Bank 

64  Leeds  Union  Bank 

65  Leicester  Bank 

«6  Lewes  Old  Bank 

67  Lincoln  Bank  

^  LlandorerjrBank&LlandiloBank 
€9  Loaghborongh  Bank  

70  Ljmington  Bank..... 

71  Lynn^gisandLincolnshireBank 
7z  Ljnn  Kegisand  Norfolk  Bank ... 

73  Macclesfield  Bank  

74  Manningtree  Bank 

75  Merionethshire  Bank  

76  Miners*  Bank   

77  Monmottthshire  Agncnltnral  and 

Commercial  Bank 

78  Monmoath  Old  Bank 

79  Newark  Bank 

So  Newark  and  Sleaford  Bank  .. 

8t  Newbury  Bank 

€z  Newmarket  Bank 

^3  NorwichCrownBankand  Norfolk 

and  Suffolk  Bank 

54  Norwich  and  Norfolk  33ank  .., 

55  Nottingham  ft  NottingHamih.Bk. 

86  Naval  Bank,  Plymouth  

87  NewSarumBk.— Pinckneys,Bros. 

^S  Nottingham  Bank 

S9  Oswestry  Bank    ». 

90  Oxford  Old  Bank 

91  Old  Bank,  Tonhridge 

9s  Oxfordshire  Witney  Bank 

93  Pease's  Old  Bonk,  Hull 

94  Penzance  Bank    ....• 

95  Pembrokeshire  Bank 

^6  Beading  Bonk — Simonds&Co.... 

97  Beading  Bk.— Step1ma,BkBd7&Co. 

98  Bichmond  Bank,  Yorkshire   


99  Bochdale  Bank 
100  Boy  ston  Bank  . 
toi  Rugby  Bank.... 
103  Rye  Bank 

103  Saffron  Waldon&NorthEsscxBk. 

104  Salop  Bank 

105  Scarborough  Old  Bank  .• 

106  Shrewsbury  Old  Bank 

107  Sittingbonme  and  Milton  Bank... 

108  Southampton  Town  &  County  Bk 

109  Southwell  Bank   < 

1 10  Southampton  and  Hampshire  Bk. 

lit  SuffordOld  Bank  

f  I  a  Stamford  and  Rutland  Bank 

113  Shrewsbury  an  d  Welsh  Pool  Bank 

1 14  Tannton  Bank  ...•• 

115  Tavistock  Bank  -. 


»9.J35 
««.385 
28,788 

3^.787 
»3.098 

49.^7' 

«05»5»9 

10,866 

27,3*1 
«5»^59 
3«»047 
18^71 
34»39i 
>3.i83 
11,852 
48,807 
11,405 
12,910 
37,5>9 
43,a7i 
6,889 
5»590 
»^393 
» 71*50 
29,864 
47.646 
«,338 
24,813 

43f«9" 
4.789 
«8,589 
'4.744 
6,770 
14^166 
31.858 
«5.33« 
*9.799 
«3.4*' 


AyWBAftK  AMOTTTiT^ 


OcLll.      Oet^S. 


58.4M 
20,030 
25.817 
ai.H7 
44.093 
5»a" 
5". 375 
36»9*3 
28,756 
H.583 
95.895 
19.788 
6,793 
2,669 
35,110 
13,0x6 
13, 652 

5.49* 

8,811 

18,111 

26,343 
4.663 
24.684 
48,130 
«i.990 
17,608 

49.366 
83,501 

«.597 

6.591 

26,353 

11,920 

35.435 

12,644 

9.0C0 

47.14* 

8,533 

t2»5«« 

27.2:5 

»6,335 

6,596 

1,067 

8.34* 

9.772 

13.714 

21.450 

9.897 

23.670 

34.330 

4,000 

9,200 

9,697 

20,90 

12,667 

19,802 

22,928 

23.74+ 
I2»940 


£ 

56,549 
19,728 
»5»834 

21,122 
44.912 
4.990 
51*657 
36,115 
29.009 

34.919 
93.520 
20.355 
6,710 
2,661 
33.876 
12,262 
13.718 

5.«24 

8.991 

17,725 

28,563 

4.491 

23,776 

49.014 
15.128 

18,250 

49,571 
82  21: 


Ifinr.C    !  KoT.lL 


£ 

54.585 

19,800 

26,261 

20,724 

45,028 

4,967 

53, 233 

36,375 

28,817 

34.627 

90,946 

20,437 

6,6c2 

2,730 

32,992 

12,366 

23.556 

5,024 

8,522 

17.715 

28,074 

4,331 

24,032 

47,633 
13.963 

19.362 

49.955 

81,889 


21,755  21,729 
6.655       6,490 

25.429  24,929 

11,749  ii,37« 

35.856  33,129 

12,665  12,298 
8,720       8,9^5 

47.02J  48,49 

7.894       7.933 

11.926  J  11,158 

26,260  25.771 

26,231  25,165 

6,766       6,820 

1,070  I     1,019 

8.578  I    8,530 

9,810  i     9,587 

14.364 :  14,610 

20,916  :  21,216 

10,084  '    9,867 

23,380  23,292 

33.532  33,028 

4,249  4,021 

8,819  8,745 

9»37o       9,136 

2,083  1     2,223 

12,521  11.667 

19.620  19.527 

22,560  22,366 

24.174  23,152 

11,831  1  11,441 

Digitized  by  LjOOQIC 


£  - 

53.472 
»9,6?4 

25.997 
20,105 
43.938 
5,180 
55.272 
36,759 
28,051 

34.500 
88,639 
20,576 
6,444 
2,824 
30,521 

•  «i.5$2 

12,960 

,  5,062 

8,345 
18,365 

I  29,021 
I  4.113 

:  23,21s 

i  47,146 

I  23.613 

18,341 

48,583 
77.159 

21,185 
6.490 
23.745 
11.695 
32.294 
12,672 

9.»03 

48,224 

7,910 

10,710 

26,189 

24.567 

7.054 

952 

7,778 

9,231 

13,467 

20,662 

9.387 

23,407 

33.032 

5,832 

5,885 

8,914 

2,136 

10,893 

19,366 

21,565 
21,592 

12,589 


WSSKLT   BBTCJBN8  OF   BANKS  OF    IMUB. 


140» 


KAlOeOFBAKC: 


1 16  Thornbarj  Bank ..., 

117  Tiverton  and  DeronBhire  Bank .. 

1 18  Thrapstone  and  Kettaring  Bank, 
f  19  Tring  Bank  and  Cheaham  Bank. 

120  Towcester  Old  Bank  *.. 

121  Union  Bank,  Cornwall  

122  Uxbridge  Old  Bank    

125  Wallingford  Bank   

124  Warwick  and  Warwickshire  Bank 

125  Wellington  Bank,  Somerset  

\z6  West  Riding  Bank 

127  Whitby  Old  Bank   

1 28  Winchester,  Alresford  &  AltonBk. 

129  Weymouth  Old  Bank 

130  Wirksworth  and  Derbyshire  Bk 

131  Wisbeach  and  Lincolnshire  Bank 

132  WiTeliscombe  Bank 

133  Worcester  Old  Bank  , 

134  Wolverham.Bk.— R.  &  W.  Fryer 

135  Yarmonth  and  Suffolk  Bank 

13^  Yarmonth,  Norfolk,  &  Suffolk  Bk. 
137  York  Bank   


Author- 
ised 


£ 

10,026 

i3f47o 
".559 
» 3,531 
10,801 
17,003 

i5.?3^ 
17,064 

30.504 
6,5*8 
46,158 
14.258 
25,892 
16,461 
37,602 

59,713 
7,602 
87,448 
11,867 
53,060 
13.329 
46,387 


ATEBAGS  AMOUNT. 


Oct.  91.       Oct.  88.     Not.  4.     Nor.  11 


£ 

8,95' 

9*951 

11,584 

12,920 

7,338 
17,12a 

9.14* 
6,390 

20,2»4 

3.876 
45*136 
14,046 
ii,6iO 
16,940 
38,03« 
47.8*5 

5»^3a 
66,250 

u,39* 
42,042 

9.C57 

41.591 


£ 

8,596 
10^216 
11,460 
12,609 

6,809 
16,756 

9,257 
6,321 
20,846 
3.662 
43.152 
13.934 
11,292 

15.785 
36,688 

46,314 
5,880 

64.991 

10,923 

40,540 

8,465 

1,021 


JOINT  STOCK  BANKS. 


1  Bank  of  Westmorland  

2  Bamsley  Banking  Company    ... 

3  Bradford  Banking  Company   ... 

4  Bilston  District  Banking  Company 

5  Bank  of  Whiteharen 

6  Bradford  Commercial  Banking  Co. 

7  Burton  ,XJttozeter  ,an  d  Staffordshire 

Union  Banking?  Co. 

8  Chesterfield  &  N.Derbysh.  Bk.  Co. 

9  Cumberland  Union  Banking  Co... 

10  Corentry  and  Warwickshire  m.  Co. 

1 1  Corentry  Union  Banking  Company 

12  County  of  Gloucester  Banking  Co. 

1 3  Carlisle  &  Cumberland  BankingCo. 

14  Carlisle  City  and  District  Bank  ... 
f  5  Dudley  &  West  Brorowich  Bk.  Co. 

16  Derby  and  Derbyshire  BankingCo. 

1 7  Darlington Dist. JointStockBk.Co. 

18  Gloucestershire  Banking  Company 

19  Halifax  Joint  Stock  Bank 

20  Httddersfield  Banking  Company 

21  Hull  Banking  Comnany   

22  Halifax  Commercial  Banking  Co... 

23  Halifax  &  Hnddersfield  Union  Bk. 

24  Helston  Banking  Company 

25  Knaresborongh  and  Cflaro  Bk.  Co. 

26  Lancaster  Banking  Company 

27  Leicestershire  Banking  Company... 
a8  Lincoln  and  Lindsey  Banking  Co.. 
29  Leamington  Priors  and  Warwick 

shire  Banking  Co....« 

io  Ludlow  and  Tenbury  Bank 

3t  Moore  &  Bobinson's  Notts.  Bank.. 
J  2  Nottingham  and  Notts; BankingCo. 
3 1  National  IVorincial  Bk.  of  England 
H  NortE  Wiltt  Banking  Company 


12,225 
9.563 

49.292 
9.418 

32,681 

20,084 

6o»7oi 
10,42  J 
35.395 
28,734 
16,251 

144.35' 
25,61c 

19,972 
37,696 
20,093 

26,134 
•55.920 
18,534 
37.354 
29.333 
13.733 
44*137 
•1,503 
28,059 

64*31' 
86,060 
51^620 

13.875 
10,215 

35.813 

29.477 

442,371 

63,939 


11,531 
9.431 

50,147 
9.077 

28,060 

20,055 

47.9«7 
10, 108 
33.04a 
16,724 
13.233 
107.251 
24,629 
20,034 

31,649 
19,661 

«4.097 
14^,610 
17,861 
38,279 
30,429 
»3.533 
43,963 
1,495 
28,050 

59.273 
64,601 

45»723 

11,290 
»o,335 
31.769 
27,272 
4i5»oo9 
48,023 


11,384 
9.690 

49,388 
9,102 

27.474 
19,624 

46,989 
10,167 

33,94» 
16,615 

12,925 

105.246 
23.950 
20,o6t 

30.560 

20,294 

26,160 

146,980 

17,980 
35.940 
29,481 
13.955 
42,074 
1,503 
27,648 
57,987 
61,801 

50,364 

11,349 
9,823 
30,839 
26,432 
410,311 
47*385 


£ 

8,559 
10,020 
11,136 
12,840 

6,650 
16,500 

9,278 

6.193 
19.832 

3,986 
42,689 
13,980 
10, 90S 

«5,4»9 
35.376 

45.274 
5.4»9 
61,461 
10,270 
39.»78 
8.993 
40,936 


11,470 

9»593 
47,682 

9.455 
27.050 
20, 105 

46.946 
10,230 
35.280 
16,540 
12,846 

102,024 
25,208 
19,8*4 
30.198 
18,804 
26,477 

145.241 
18,184 
34,118 
26, 207 
15.562 
40»o?7 

1.494 
27,282 
57.822 

58.893 
51,221 

zi,ioo 

9.82s 

51.521 

26,848 

409.548 

46,670 


£ 

8,315 

9.524 
11,094 
12,223 

6,171 
16.644 

8,840 

6,2ZO 

19,066 
3.i'9 
41.548 
14.124 
»o,799 
14,910 

35,461 
43,890 

4,9c8 
58,12* 
10,227 
37.983 

9.213 
4^.430 


11.795 
9.314 

48,545 
9.723 

28,080 

sp,p63 

44.029 
10,048 
35.525 
I9»257 
12,625 
100,585 

25.831 
19,782 
a  ,890 
17.854 
27.772] 
141,981  i 
17.806: 

34. 139 1 
27.517 
12,699' 
38,970iJ 
1.508J 
27*756. 
58,082! 
59,216' 
51.073I 

10,203" 
9,929  ! 
30,62s 
26,730 

407,545: 
44.80J 


Digitized  by  LnOOQ l"C 


HIO 


WXSKLT  BXTVBNS  OV  BAXK*  OF    liaUB. 


ITAJCE  ojr  BAinc 


35  Northamptonshire  Union  Bank 

36  Northamptonshire  Banking  Co. 

37  North  and  South  Wales  Bank.. 

38  Fare's  Leicestershire  Banking  Co...] 

39  Saddleworth  Banking  Company  .., 

40  Sheffield  Banking  Company , 

41  8tamford,Spalding&BostonBk.Co. 
4a  Stnckey's  Banking  Company  

43  Shropshire  Banking  Company 

44  Stourbridge  and  Kidderminster  Bk. 

45  Sheffield  and  Hallamshire  Bank  ... 

46  Sheffield  &BotherhamJt.StockBk. 

47  Swaledale  and  Wensleydale  Bank.. 
4S  Wolverhampton  &  Stafibrdsh.  Bk.. 

49  Wakefield  and  Barasley  Union  Bk. 

50  Whitehaven  Joint  Stock  Bank    ... 

51  Warwick  and  Leamington  Bk.  Co. 
5  2  West  of  £og.&  S.Wales  DistrictBk. 

53  Wilts  &  Dorset  Banking  Company 

54  West  Riding  Union Bankinff  Co.... 

55  Whitchurch  and  EUesmere  Bk.  Ca 

56  Worcester  City  and  CoontyBk.  Co. 

57  York  Union  Banking  Company  .. 

58  York  City  and  County  Banking  Co 

59  Yorkshire  Banking  Company 


Author- 
ized 


£ 

84,35^ 
z6y40i 

63.95 » 
59.300 
8,122 
35.843 
55.7»i 
356,976 
47,95 » 
55.830 
»3.5a4 
5^.496 
54.372 
35.378 
14,604 
3i.9«6 
37.124 
83.535 
76,16a 

34.029 
7.475 
6,848 

71,240 

94.695 

122,532 


AVERA6S  AMOUNT. 


Oct.  SI.       Oct.  98.    Kor.  i.    I  Not.  11. 


£ 
68,405 
20,265 
58.436 
55,814 
330 
33.950 
54.306 

328,595 
38,405 
56,383 
21,398 
53.>9o 
52»6a9 
28,381 
14, 169 
26,415 
27,53« 
74.3»5 
72,6x9 

33.396 

5.M 

5*581 

70,255 

91,830 

118,357 


£ 

.67,762 
2o,i5i 
58,597 
52,*70 

330 
35,881 
52,096 

325.895 
37.265 
50,507 
23.376 
50,703 

5»."4 
27,427 
14.282 
25.187 
26,752 
77,873 
70,799 
31,181 

5.9«o. 

5.H8 

70,756 

93.778 

120,674 


£ 
66,766 
20,925 
61.049 
51,818 

330 

36*643 
52,256 
326,035 
36,845 
CO.  288 
23.770 
51,982 
5».«5o 
26,470 
14.256 
25.348 
26,469 
79.273 
73.20I 
32, 582 
6,000 

3.954 
70,402 

93.385 
121,774 


£ 

62,315 

t  19,812 

I  62.373 
'  50,236 

I    35^ 

36,346 

I  52.374 

•325.^25 

;  37,493 

5«.oo9 

23.287 

53.799 

52.570 

26,43a 

»4.3" 
27*099 
27,011 
81,608 
75."3 
32»t45 
5.772 
2.902 

7o.3>5 

92,861 

122,150 


Jutng*  Greulatiom,  amd  CSw'ii  kaU  bg  th»  Ibub  and  Sooick  Baihu  dmrimg  tkw  /otr 
week*  ending  Saturday,  tie  Uth  dof  ^  S<t»mi«r,  1865. 

IBISH   BANKS. 


ArwayiAM. 

KAUS  OV  HAWK 

ABtborlMd 
CizoUtioB. 

^        •adteg  asalMW. 

iSlMd 

<«tacF.«r 

mpwula. 

Ua«tr4i. 

»^      f"-.^^- 

£ 

£ 

£ 

£ 

£ 

Bank  of  Ireland 

3.738.428 

«, 689,750 

t. 183,650 

2,873,400 

479.665 

Provincial  Bank  of  Ireland 

9*7,667 

446,564 

554f62i 

1,001,185 

S>4»45i 

Belfast  Bank I 

281,611 

163,933 

371,796 

535.730 

341.083 

Northern  Bank 

a43t440 

i3«.«47 

328,904 

460,052 

264,8^6 

mster  Bank . — .. .. 

311,079 

220,092 

384.720 

604,81a 

341,064 

The  National  Bank 

852,269 

746, 716 

666,030 

1,412.746 

750,785 

Totals  (Irish  Banks)  ...|| 

6,354,4941 

3,398. aoa 

3,48^,7*2 

6,887.925  ' 

»»49«.904 

BOOTO 

Bank  of  Scotland ..|  300,485 

Royal  Bank  of  Scotland   ...  216,451 

British liinen  Company |  438,024 

Commercial  Bk.  of  iScotland  3 74»88c 

National  Bank  of  Scotland..  29 7, 024 

Union  Bank  of  Scotland   ...  454,346 

Aberdeen  Town  an  d  Co.  Bk.  70, 1 3  3 

North  of  Scotland  Bk.  Co...  154, 3^9 

Clydesdale  Banking  Co.  ...  274,321 

City  of  Glasgow  Bank  '  72,921 

Caledonian  Banking  Co.  ...  53r434 

CentralBank  of  Scotland...  42.933 

Totals  (Scotch  Bank*)...  a,  749, 271 


H   BANKS. 


192,017 
210,248 
188,677 

217, a88 

188,085 

210,521 

62,911 

«oi,978 

148,09a 

«59,733 

*7, «92 

30,636 


H»,784 

361,195 

328,616 

393*  149 
33*»20i 
399^890 
89,221 
104,278 
a5a,a7a 
24  J.  076 

53.334 
40,  2W 


533.801 

571,443 
517,293 
610,437 
5ao,a86 
6ui,4ti 
152,132 
226,257 
400.364 
402,810 
80,526 
7^925 


i»937,378  12,959,504  (^ 

Digitized  by 


304,607 
462,774 

32^,456 

*84.840 
a3A,625 
t04«207 
102.996 
157,961 
372,017 
36»i8o 
|2>990 


696,6i5(a,646,i9t 

Lnoogle 


ClBCUIiATION   BETUBNS.  1411 

SUMMABT  OF  WEEKLY  BETUBNS  OF  BANKS  OF  ISSUE. 


135  Priyate  Banks 

59  Joint-Stock  Banks  ... 


»94 


Totals i  7,365,726 


Fixed 

^4,1391469 

j,a26^57 


Ocft^  21.    I     Oet.t8. 

£3,20X,3»8l£3,u8,?99 

a,9*3»744     M9^336 


5,125,07* 


Kor.  4 

^3»i3^"5 

2»883^I9 


Hot.  11. 

£3.073.371 

a,870,584 


6,021,235     6,015,134     5*943.955 


A,vtrag€  Weekly  drcolatlon  of  these  Bfluska  for 
tlie  momh  ending  November  lltb.:— 

Private  Banka      £3,183.938 

Joint-Stock  BankB         ...       ...        ...    2,892,421 

Average  WeeUy  GSronlatibii  of  Private 
and  Joint-Stock  Banks  ending  as 

Sbbore      £6,(n0.34» 

On  a  comparison,  of  the  above  with  the  Retorns 

for  the  month  ending  Oct.  14th  !art,  it  shows:— 

An  inerMM  in  the  notes  of  Private 

BikDk8,of. £U,998 

A  dtereoM  in  the  notes  of  Joint-Stook 

Banks,  of. 30,733 


Total  deer4a»9  on  the  month ... 


£14^807 


And  sa  oompazed  with  the  nionth   nm^j-nff 
November  ISth.  1664^  it  shows :— 
A  (lArrMMin  the  notes  of  Private 

Banks  of .. ...     £77,430  . 

An  racifOM  in  the  notes  of  Jotnt-Stook 

Banks,  of 80,998 

Total  cberMM,  aa  compavsd  with  tha 

same  period  of  last  year       £40,43^ 

The  following  is  the  comparative  state  of  the 

drcolatlon  as  regards  the  ilzed  issaea  :— 

The  Private  Banks  are  Mow  their 
fixed  iasnes        £1,006^841 

The  Joint-Stock  Banks  are  tetow  their 
fixed  issues        ...       ...      83S,836r 


Total  Bxsow  their  flbced  issnea 


.£1,339^377 


SUMMABT  OF  IBISH  &  SCOTCH  BETUBNS  TO  NOVEMBEK  11,  1865. 


The  Betoma  of  Clroolation  of  the  Irish  and 
Scotch  Banks  for  thefonr  we^s  ending  Novenip 
ber  nth  when  added  together,  give  the  following 
as  tha  average  weekly  circulation  of  these  Banks 
dnxing  the  past  ?POTi|:h^  vix. : 
Average  Circulation  ofthe  Irish  Banks  £8,887,986 
AverageOircalationof  theSootchBanks  4^880,893 

TotalAveragedxealatlonoftheBebanks 

for  the  past  month    £11,684,310 

On  comparing  these  amounts  with  the  Betuma 
for  thenumth  ending  I4th  Oct.  last,  they  Show- 
Increase  in  the  CirctJationoflriahlBaiiks  £388^310 
IncreaseintheClrenlationof  Bootdi  Banksl81,S81 


Total  increase  on  the  month 


£461,481 


And  sa  compared  with  the  month  endfaag 
November  13th,  186^  tfa^  show— 
Increaaein  theCirculaiionof  Irish  Banks  £881,816 
Increase  intheCircnlationof  Sootoh  Banks363;3SI 

Total  increase  on  tha  year £1,183,988 


The  fixed  itfues  of  the  Irish  and  Sootoh  Bank 
at  the  present  time  are  given  in  the  Sanking 
Aimanae,  as  follows  :— 

•  Bank8inIrelaad,allowedtoissae...  £8,364.484 
12  Baaksin  Scotland,  alTowadtoissaa     8.748,271 

18  Banks  inaU,sIk>wed  to  issue  £9,103,706 

The  following  appears,  therefore,  to  be  the 
comparative  state  of  tha  dronlation  :— 
Irish  Banks  are  abovetheir  fixed  isaua    £533,431 
Sootrh  Banks  areabovethslTflxadissue  1,947,414 

Total  above  theflzedissaa £2,480,845 

The  amounts  of  Gold  and  Silver  held  at  the 
head  oflices  of  the  several  bivihB,  during  the  paaS 
month,  have  been  aa  foUowa^— 
Gold  and  Silverheld  by  the  Irish  Banks  £8,491,904 
GoldandaUvarheldl^ytheScotohBanks  3,646^198 

Total  of  Gold  and  BUver  Coin. £6,lS8,10t 

an  increase  of  £171,346  on  the  partof  tha 
and  an  increase  of  £304,Itt  on  tha 


Irish  , 

part  of  the  hootch  Banks,  ontheseveral  amounts 
held  by  them  d^'.^mg  tha  preceding  month. 


dBCULATION  OF  THE  UNTTBD  KINGDOM  TO  NOVEMBER  11,  1865. 

The  following  is  the  state  of  the  Note  dronlatiaii  of  the  United  Kingdom  for  tha  month  ending 
the  11th  November,  1886  :— 
Cironlatian  of  Noteafor  the  Honlti  ending  11th  November,  aa  oomparad  with  tha  pxevioas  month  :— 

Bank  of  Bngland  (month  ending^Hov.  8) 

Private  Ba^ « 

Joinfc-StodkBaaka 

Total  in  England......... 

Scotland 

Ireland  • «........m 

United  Kingdom ...• 

The  comparison  of  the  month  ending  November  12th,  186^jri£h  tha  month  ending  Nbvember  lltH* 
1865,  shows  an  increase  fai  the  Bank  of  England  drcnlation  of  £968,860,  a  dkerta$9  in  Privato  Banks  0^ 
£77,420,  and  an  inereoBe  in  Joint^BtookBaoJES  of  £80,986 ;  being  a  total  tMrsoM  in  England  of  £917,M4 1 
while  in  Scotland  there  is  an  iwereoM  of  £263,361 ;  and  In  Ireland  an  immsM  of  £931,616.  Thua 
showing  that  the  month  ending  1 1th  November,  aa  eompand  with  the  same  period  last  year,  presents 
an  ineMa»$  of  £8 17|94*  in  England,  and  an  wwraMS  of  £3,101,910  in  tiie  tTniied  JOngdom. 

l%e  retam  of  Bullion  in  the  Bank  of  En^and,  for  the  month  eadtng-  Vovsmber  8th,  gives  an 
aggregate  aasount  in  both  departments  of  £13,136.818.  On  a  comparison  of  tUs  with  the  Betom  for 
the  month  ending  Oet.  Uth,  there  appears  to  be  a  iteervoM  of  £388^308;  and  a  dMTMis  of  £143,938 
as  compared  with  the  same  Period  last  year. 

The  stock  of  spede  held  by  the  Banks  In  Boot&nd  end  frehsid  duxtng  the  montliondiziig  11th 
Novemberwas  £6,138,103 ;  beingan  mertoM  of  £37(^636  as  compared  with  the  Return  of  the  previous 
montbt  a&d  aa  ihbi  nasi  of  £868,671  as  oompared  with  the  ooxresponding  period  last  year. 

Digitized  by  VjOOQIC 


Oct.  14. 
£21,966,614 
8;i38.00B 
3,919.164 

Nov.  11. 
2.883.tfl 

Increase. 
£n,9a6 

Decrease. 
£100,709 

76.738 

38.086,«7D 
4^16,404 
6,607.716 

87,891.164. 
4,696,696 
%887.926 

11,898 
880,«10 
181.981 

137,443 

£39,129,789 

£39.476,764 

£478.417 

£127.4<S 

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