(From the Money Murket Keview of 25th October, 1890.)
Phe half-yearly meeting of the shareholders of this bank was held on 21st October at the banking-house, 65, Old Broad-street; Mr. J. N. Pullen presiding, The Chief Manager (Mr. W. Jackson) read the notice convening the meeting, and the minutes of last meeting were also read and confirmed.
'The directors' report, which was as follows, was taken as read:—'' The directors submit to the shareholders the half-eatly statement of accounts to 30th June jast, showing a net profit, after providing for bad and doubtful debts, and including the balance brought forward, of £69,289 3s. Ld: The directors have appropriated the above amount as follows:—£18,750 to payment of a dividend for the half-year at the rate of 5 per cent. per annum, free of income-tax, and £50,539. 3s. 11d. carried forward to present half-year. The directors have to inform the shareholders that it will probably be necessary to reserve, as a provision against doubtful debts at one of abe bratiches, & large portion of the amount carried forward to this half-year."
The Chairman said: Well, gentlemen, we meet you rather late on this occasion, but for that the deed of settlement is responsible. It provides that our meeting shall be held on the third Tuesday of the month, it so happens that the third Tuesday of this month falls on the 21st. That is the reason why the meeting is held so late un this occasion. The statement of accounts having been taken as read, I will proceed to make " few observations on such items in the accounts us appear to require explana ation, If you look through the general balance-sheet you will find that with one exception, the figures are what I may call normal. They indicate the satisfactory vol time of business that is in progress; they show that our deposits and our note circula ation are well kept up; they show also that we are strong in cash reserves, and that our securities in London are, as they have always been, of the highest class. Now, the one item on which some explanation is required is that of freehold banking premises. This in the last account appeared at the sum of £187,670; it now appears at the sum of £47,600 only. The explanation of that is that in the interval we have received the purchase-money of these premises. I Tad jou on the last occasion that these premises had been sold and the pur-closely into the matter which had been rechase-money has since been paid and that ferred to by the chairman, but he would accounts for the reduction of this amount. like to know what branch waa alluded to, The £47,600 represents the value of our and whether in the recent tour of Mr. banking premises abroad. They have been Jackson there was anything pointing to recently revalued, and you may take this what had occurred. to be their present value. On this adjust-The Chairman, in reply, said he was alen ment of our premises account there was a conservative of the conservatives, and a profit of about £8,600, which has gone his conservatism Jed him to the decision into the profit and loss' account of the that it would not be advisable to pay an past half-year, That is all I need say increased dividend until they could see about the general balance-sheet, because, their way clearly to maintain that dividend. as I said before, ell the figures are quite I He did not mean to say that the whole of normal, and really require no explanation the amount set aside as provision for these atoll. I pass now to the profit and loss bad debts would be required. He hoped account. You will see from that, that in-it would not, but still under the circumcluding the £7,186 brought forward from nees he thought they had adopted the last account we have total of £117,224.
Against this there are the expenses of Eividend than they did before, No ous ident. course in not paying a larger
management and the sum provided for the would be more pleased than he should if dividend, and the balance carried forward they could sce their way clourly to give the is £50,539. Well, gentlemen, if we could shareholders 6 per cent. feel with confidence that a large portion of A Shareholder; You held out very strong this would be available to add to our reserve hopes last time. fund at the end of the current year, I think he Chairman (continuing) said he be-you would agree with me that our state-lieved he stated that until they had an ment is a very satisfactory one, but unfor-effective reserve of at least £300,000 they tunately, as is stated in the directors' report, would not be disposed to pay more than it has become necessary, or it will be necesperceob. dividend. What hed fallen from sary, to reserve as a provision against the hon. proprietor was quite true that the doubtful debts at one of the branches a position of the bank was much better than large portion of the amount carried forward it was owing to the rise of exchange. The: to this half-year. It will not be necessary, no longer required £250,000 to write their T hope, to go explanation of the capital down to the present rate of exchaugey accounts referred to in that paragraph, ud so to that extent their position had because anything that falls from me here be-improved. Uf course it was not possible comes public property, and it wil to say that the exchange had settled down, produced abroad. It is quite The other day it was Is. 94., and then it therefore, that any observations came down to 1s, G}d. In reference to the make to-day might injure rather than fa other question, if there was a strong feeling lirate the getting in of these outstandings that the name of the branch should be Tam happy to be able to tell you that. the given, he did not see why it should be report which we have this morning from withheld, but he did not think it de-the branch in question is ut a more h sirable tu mention it. The directors did ful character than those we have received not want to give their competitors in busi-lately. OF course, we shall not escape al-ness more information than was necessary. together without loss, but by a sacrifice of Hear, hear.) It was one of the branches interest, there seems a greater probability ghat the chief manager visited while aprond, than there was some little time ago of rebut until within the last twelve months covering a large portion of the principal. there was no indication vf this bad state of The operations on which it has becrime things coming about. It had been caused necessary to make this reserve, are opera-by a certain reaction which had followed tions which have been carried on at that the great period of inflation. 'There had branch of our' bank for a long series of been a fall in high prices of produce, and years—precisely the same class of business, consequently there had been a loss which done by the same class of men, and in many prevented their customers fulfilling their instances with the same individuals. The Engagementa as punctually as they did bee bank has made large profits out of this busi-fore. He might say that there were no ness for a lung series of yea ud this is the strong indications until within the las first occasi on which it has become neces-months that this would come upon thei ial provi inst: confidence in the board, and leave the mate A Sharehulder thought they might plaice it. Well, gentlemen, I think that is all Ihave to say to you with regard to the accounts. ter in their hands, Of course this is the interim meeting, and The Chairman said his feeling in the T have no resolution to put to you with matter was that the shareholders must have regard to the accounts, but if any shareholder desires any explanation T-shall be confidence in the board or not. Tf they hud confidence they should trust them, and if gua to give it to the best of my ability. not they should aay so, atid appoint others With this reservation, I hope no question in their place, will be put which it would not be in the interest of the bank that I should answer In reply to a further question, A Shareholder said he was a conservati The Chaitwan said the doubtful debts of the conservatives, and he could not but referred to in the first paragraph of the feel thankful for the conservative way in report were ascertained doubtful debts, which the directors had carried on the while those mentioned in the last paragraph operations of the bank. Atthe same time, were problematical. They might turn out he thought it rather hard that the share-to be good, or they might not, This con-holders had not got a6 per cent. dividend cluded the business, and he hoped the instead of one of 5 per cent. on this occa-directors would be able to meet the share-sion. It would only have required £3,250 holders in April, and put a more satisfactory to pay the 4 per cent. necessary tu make state of accounta before them, the dividend 6 per cent., and their A Shareholder proposed a vote of thanks shares would not have fallen £4 or £5 to the chairman and his colleagues and ashore, as they had done. He would to the staff of the bank. He had been like the chairman to give them sume real a shareholder for a good many yea and substantial reasons why this desirable and had been with the bank in all its end could not be attained. Their reserve issitudes, and he felt most grateful fund had become a real reserve fund, and to the chairman and the directors for they were altogether in a better position the position in which it was that day. than they were before, and ko thought they They were in a safe position, Five years might have legitimately looked for a 6 per ago they were not in that position, and cent. dividend on this occasion. (Hear, many trembled at what was going to be the hear.) outcome of the bank. Now, although they Another Shareholder said he fully re-had to go without the increased dividend cognised the importance of not going too which they hoped to receive, june of them
Text read from the printed page and cleaned; old type leaves the occasional error.