(From the Money Market Review of the 23rd of October, 1897.)
An extraordinary general meeting of the shareholders of this company, for the purpose of declaring an interim dividend for the half-year, was held on Wednesday, at the Cannon-street Hotel; Mr. John Howard Gwythor presiding.
Mr. Caleb Lewis (sub-manager) having read the notice calling the meeting, The chairman said: Gentlemen, six months have elapsed since we last assembled in this room. Upon that occasion we presented for your approval Our balance-sheet. for the year 1806, and sou were quite satisfied with the result of our working. To-day we only ask you to approve of an interim dividend, which the directors consider is fully justified by the outcome of the operations for 1897, so far as they have eventuated. What may he the actual result of the current year we cannot, of course, prognosticate, but we trust ab our annual meeting in April that the profit and loss account will be satisfactory. _I would call your pointed attention to the increasing difficulties attending the working of our. business, through the erratic course of exchange. and silver, and the difficulty of disgnosing the position, even from day to day. As you may well imagine, the burdens upon the shoulders of our chief manager and his colleagues at the branches are ever. increasing, and we owe them a special debt of gratitude for their intelligent assiduity during exceptionally trying times. (Applause,) When I last addressed you referred to the gloomy condition of affairs in India, and commiserated the rulers of that country upon two evils which they had to encounter—famine and plague—and to these two troubles must now be added war. The first mentioned is rapidly disappearing, owing to a beneficent rainfall.
second has been vigorously handled and partially conquered, but we can scarcely hope that it has been eradicated—at avy rate we will earnestly trust that Calcutta will remain free from the scourge, as, if the disease obtained a footing there, it would probably, owing to the geographical position and the insalubrious condition of the city, produce far more serious conseyttences than has been the ase in Bombay and other towns in Western India, As regards the third, we have every reason expect that' in a few weeks our soldiers will be returning to their several cantonments, after having accomplished the task set before them. You can well imagine that these abnormally adverse conditions have seriously upset the financial Tiveir balances have been depleted to an programme of the Government of India. unusual extent, owing to a lessened revenue and increased military expenditure, and we have witnessed this autumn what I believe has not been the case since the days of the Mutiny—not merely a stoppage of Coun: bills, but the remittance to India by the Government of " crore of rupees. The present position is fraught with difficulty to the banking and commercial community. Since the mints were closed and silver imported only as a commodity, the trade of the country has had to rely for relief from monetary tension upon the weekly purchase of Council bills. That avenue is now closed, I fear, for several weeks further, and I therefore, look forward with some apprehension to the coming months, when the active export season will be in full swing. Unless the exchange rises to a point whic will allow the profitable importation of sovereigns, we may experience the difticulties of last winter in an enhanced degree. The question is constantly put to me: Why does not vold flow to India, when money is loanable in Calcutta at extreme rates? The reason is very patent. Capital will not risk conversion into rupees when the advantage of high interest for three or four months may be more than neutralised by the possible fallin exchange when the money has to be returned to England. Now, gentlemen, we will glance at the further East, and here we are confronted, as regards Japan, with an attempt on the part of that enterprising country to establish a gold standard. "The experiment will be watched with great solicitude by those whose interests are bound up with its prosperity. Unfortunately the essay is being made at an unpropitious moment, when the imports largely exceed the exports, the Government spending lavishly in' Europe upon iron and war material, and the people busy with industrial projects, apparently beyond their present powers. The Straits Settlements and China have witnessed in the months from February to August a fall in Shanghai exchange of 19 per cent, in Hongkong exchange 14 per cent, and in silver 18 per cent. You can well imagine that successful trade under such conditions has been impossible, and our customers, both foreign and native, have had to experience the uses of adversity. This is not the fitting time to discuss the pros and cons of gold and silver, but no Englishman, whether he interests of his country, at heart, can. view with equanimity this parlous, condition. of affairs. You have read in the public prints of the evil state of Lancashire, and how her cotton industries are languishing. You probably know of her large: dependence for prosperity upon sales of manufactured goods to silver-using countries, and you can, therefore, readily perceive, with trade conditions such as the foregoing, that merchants, manufacturers, and artisans are losing heart. The Government' have recently been engaged in pourparlers with the United States and France, touching resumption of bimetallism by those two countries, without the adhesion of England and Germany, but with the proviso that India should reopen her mists, and the Bank of England hold part.of its' reserve in silver. Upon a ratio of 153 10 1 the Indian Government naturally objected to reopen the mints, as such a sudden change would produce grave embarrassments. Debtors
and other industries. would be exposed to would be heavily handicapped, local mills serious fall in the value of their stocks of raw material and manufacture! goods, holders of imports would find the prices of their commodities greatly shrunken, and more than all, the native cultivators would have to face much lower silver. values
gold standard countries. If I am cor-for those products, which are exporte to rectly informed, the objection has prevailed, and our foreign friends have received a non-possumus. Sir James L. Mackay, K.C.LE., has vacated his seat at the board, in consequence of his appointment to, the India Council. We much regret his loss, but he is still a youn; man, and, possibly at the end of his official career, he may come back to us. Subject to your confirmation at the annual meeting, we have filled the vacancy by the election of Mr. Henry N. Gladstone, a partner in the well-known firms of Gillanders, Arbuthnot, and Ca., of Calcutta, and Ogilvy, Gillanders and Ca., of London. think I may congratulate the shareholders upon the accession to the directorate. (Applause.) I beg now to move:—*'That an interim dividend for the half-year ended 30th of June Inst at the' rate of 8 per cent per annum, free of income tax, be now declared, payable on' and after the 27th instaitt,"
Ar. William Paterson seconded the resolution, which was put and carried unanimously.
The Chairman—The next matter is. a mere technical question. In consulting with the Treasury, we have deemed it expedient, in view of a certain expansion of te business, that we should have their permission to'turn what are technically called agencies into branch banks, and the Treasury has i to make that small amendment. will therefore move—"That the court of directors be authorised to apply for and to take such steps as they may deem expedient to obtain such an extension of the bank's-powers, under its present charters, as will enable it to establish branch banks in places within which the bank can now establish agencies, any such extended charter or charters' to contain such terms and provisions as the court may approve."
Sir Alfred Dent, K.C.M.G., seconded the resolution, which was agreed to nem. con.
Votes of thanks to the chairman and directors and to the officers and staff closed. the proceedings.
Text read from the printed page and cleaned; old type leaves the occasional error.