of the expediency of making an early call of 5 per cent., and a second call of 5 per cent. within the next twelvemonth. At the same time they conceive it will be satisfactory to the proprietors to learn that no farther calls are anticipated as being necessary.

On the second point before-mentioned, viz. the payment of dividends, the directors, after mature consideration of the whole affairs of the bank, feel themselves justified in intimating to the proprietors their intention to declare, in manner provided by the deed, a dividend at the rate of 4 per cent. per annum, for the half year ending Midsummer next, on the amount of the three instalments which have been called up.

"The directors cannot close this report without adverting to the disastrous revulsion in commerce which has lately taken place, nor without calling the attention of the proprietors to the projected change in the currency of the United Kingdoms. They have constantly kept in view the probable consequences of these events, and the degree of disquietude which the agitation of such questions in parliament always occasions in the public mind; and whilst anxious to redeem the pledge which they gave to the public, of affording every reasonable facility to commerce and agriculture, they have been careful not to foster speculation, or encourage ill-timed enterprise, considering it best for the interest of all parties, to avoid too extensive a circulation, and rather to gain the good opinion of the wise and prudent, than to seek for popularity through improvident advantages and unseasonable liberality. In these views they have been seconded by the local directors, who have received the instructions of the court with kindness and attention, and have evinced a degree of zeal, intelligence, and prudence in the conduct of the various branches which well deserves the thanks of the company.

"It only remains for the directors to state, that the parliamentary discussions during the present session have fully recognized the principles on which the Provincial Bank of Ireland has been founded, and that the mode in which its affairs are conducted has been strictly examined before the committee of both houses.

'The fullest and most unreserved communications were made to the Earl of Harrowby and the Right Honourable Robert Peel, chairman of those committees, respecting the circulation of the Provincial Bank, the deposits received, and the amount of specie in gold and silver.

"It must be satisfactory to the proprietors to know, that from individuals of the highest authority and practical experience, the Provincial Bank of Ireland has been admitted to be an establishment not only promising the greatest national benefit, but as affording a secure and profitable mode of investment, and that the parliamentary enquiry which has taken place, is likely to lead to such further amendment of the banking laws of Ireland, as will afford additional facilities for carry on the business of the company."

1827. In the beginning of this year the Hibernian

Bank being restricted from issuing notes, issued what were called tokens. These tokens were engraved on unstamped paper, and were of the size and had the appearance of notes. They contained the words, "Hibernian Bank"-"Token"-" One Pound"-" Hibernian Joint Stock Company"--the number and date, and the names of two of the officers of the bank; but they did not contain the phrase, "I promise to pay: and hence it was supposed that they could not be deemed notes, and consequently were not legally prohibited. In consequence, however, of an intimation from the government, they were discontinued.

Report by the directors of the Provincial Bank of Ireland to the proprietors, assembled at the second annual general meeting, on Thursday, May 17, 1827.

"The directors have much satisfaction in again meeting the proprietors on this their second anniversary.

"In the report made to the proprietors at the last general meeting, the measures which had been taken for establishing the business were so fully detailed, that it is not necessary, on the present occasion, to do more than state that, in addition to the branches in operation at that period, two new establishments have been formed, viz. at Armagh, which opened on the 1st of January last; and at Athlone, which is just on the eve of commencement, every preliminary arrangement being now completed.

"It must be gratifying to the proprietors to know, that the favourable expectations, regarding the progress of the business, which at the last meeting the directors felt themselves justified in holding out, have been fully realized.

"Since that period, the directors have made two calls of £5 per share, making their capital called in £500,000—a sum which enables them to meet the increased and increasing business of the establishment with security, and perfect confidence in their resources.

"By means of a system of accounts, founded on the most correct principles, a complete check on the transactions is kept up at each office in Ireland; and the engagements and obligations of individuals are brought so fully into view-first of the local directors, and then of the court in London, by means of the daily and weekly returns, that the directors feel warranted in saying, that all improper transactions are guarded against as far as it is possible to do so.

It is now the duty of the directors to submit to the proprietors such information, as to the result of their labours for the past year, as will, they trust, satisfy them that the business of the establishment has been prudently and profitably managed.

"It will be in the recollection of the proprietors, that at the last annual meeting, when the directors announced their intention of making a dividend for the half year terminating at Midsummer then ensuing, at the rate of 4 per cent. per annum, it was at the same time stated, that a certain portion of the outlay incurred during the first year, and which could not properly be considered as annual expenditure, was to be distributed over five years.

"In conformity with this principle, adopted and recognized by the proprietors at the last meeting, the directors have now the satisfaction of announcing to the proprietors, that after taking off the ordinary (by which is meant the annual expenses,) together with one-fifth of the whole extraordinary expenses, the net profits to the 31st of March last, the date of the annual balance (omitting fractions under £100), amount to

""

Out of which, there have been paid to the proprie-
tors, two dividends, at the rate of 4 per cent., viz.

£28,700

"Leaving, of undivided profits, at the 31st of March £14,700

"This satisfactory result provides for the payment of the next Midsummer dividend, at the rate of 4 per cent. per annum on the increased capital of £500,000, and leaves a reserved fund to be added to the future profits of the establishment, which may now be considered to be gradually and permanently increasing.

"It is only proper, for the sake of preventing any misunderstanding, to add, that as the bank calculates against itself all interest due by it up to the 31st of March inclusive, being the date of the yearly balance; so the sum which has been stated as profits realized at that period, includes in it the amount of dividends for the half year ending Lady-day, on the various stocks held by the bank, as also all interest due to the bank at the 31st of March, although not then actually received.

"The proprietors will at the same time clearly understand, that although the next dividend to be made on their shares, will not be payable till Midsummer, that dividend, as already stated, is provided for out of the profits realized at the 31st of March last, and is not in any degree dependent on the profits accruing after that period, the whole of which belong to the next half year's account.

"The directors have now to advert to a circumstance of some importance, as connected with the constitution of the society.

By the deed of settlement, the number of directors was limited to twenty. Since the completion of the deed, that number has been reduced, by death or resignations, to sixteen; and the directors having found, by experience, that the latter number is quite sufficient to ensure a due attendance for the efficient management of the

establishment, have not thought it necessary to enforce the terms of the deed, by proposing the election of new members: and they think themselves now justified, by past experience, in unanimously recommending to the court of proprietors to limit the number of directors for the ensuing year to sixteen. The directors may add, that this arrangement will be attended with a considerable saving of expense. And, in conclusion, they beg to state to the proprietors, an opinion in which they also unanimously coneur, viz. that in future elections, it will greatly conduce to the harmony and cordiality which it is so desirable should prevail amongst the directors themselves, as well as to the good management of the bank's affairs, if a recommendation shall be made by them to the proprietors, in favour of those candidates whom, after due enquiry, they shall find to be the best qualified to fill the situation.

As the advantage of this course is obvious, the directors cannot doubt of the co-operation of the proprietors in carrying it into effect; and they confidently trust that, considering the very great responsibility in making them, these recommendations will not fail to receive from the proprietors all the attention to which they will be fairly entitled."

The Belfast Bank, Messrs. Batt, Houston and Batt; and the Commercial Bank, Belfast, Messrs. Tennant and Co., effected a junction, and formed themselves into a joint stock bank, under the title of the Belfast Banking Company, with a capital of £500,000. The new bank commenced business, August 1, 1827: their Dublin agent is Solomon Watson, Esq.; and their London agents, Messrs. H. and I. Johnstone and Co., 15, Bush Lane.

The Kilkenny branch of the Provincial Bank of Ireland was opened in the month of September in this year. Soon afterwards I published in the Kilkenny papers two articles upon" deposits" and "cash credits," with the view of explaining to the public the new system of banking which was then introduced. These articles now form two sections in my "Practical Treatise on Banking.'

In the latter part of this year the country shareholders of the Hibernian Bank were much dissatisfied, and wished to procure a dissolution of the company. Meetings were held, and resolutions adopted similar to the following passed at Kilkenny.

"At a numerous meeting of the shareholders of the Hibernian Joint Stock Company, held pursuant to public notice, at the Tholsel, Kilkenny, JOHN SMITHWICK, Esq. in the chair, the following resolutions were unanimously adopted:

"1. Resolved-That influenced by the prospectus of the Hibernian Joint Stock Banking Company, contemplating arrangements which never have been formed, and holding out advantages which cannot be realized, we became purchasers of stock to a considerable amount. "2. Resolved-That circumstanced as this company is, exposed to all risks consequent upon trade without the benefits derivable from a paper circulation, as the advantages resulting from the establishment of branch banks throughout the country, as set forth in the prospectus, it is idle to expect it can ever be a source of legitimate gain or national utility.

"3. Resolved-That we would, therefore, be indifferent not only to our own interests, but to those of the proprietors at large, if we did not recommend an immediate dissolution of the establishment.

"4. Resolved-That it is the opinion of this meeting that the object of these resolutions can be best obtained by the co-operation of the shareholders in the other towns and counties in Ireland, as we feel satisfied that the directors will not resist so just and so imperative a claim upon them.

5. Resolved-That the foregoing resolutions be published in the Kilkenny newspapers, the Dublin Evening Post, and Freeman's Journal, and the chairman be requested to transmit these to the directors.

6. Resolved-that this meeting do adjourn to the 1st day of

November next.

"Dated 18th October, 1827.

"JOHN SMITHWICK, Chairman."

1828. Some of the proprietors of the Hibernian Bank petitioned parliament to dissolve the company but without success. The following is a copy of this petition :

"The humble Petition of the undersigned Proprietors of the Company, denominated "The Hibernian Joint Stock Company,"

"That in the month of April, 1824, several merchants and others in the city of Dublin entered into subscriptions for a company then denominated "A Loan and Annuity Company," and deputed two of their members, namely, Thomas M'Donnell, Esq. deceased, and Paul Lill Patrick, Esq. of that city, to attend in London, and communicate with the Chancellor of the Exchequer, and other members of his majesty's government, upon the state of the banking business in Ireland, for the purpose of obtaining some modifications of the