Balance brought forward from 31st August, 1873 THE TRUST AND LOAN COMPANY OF CANADA. THE following report and statement of accounts for the six months ending the 30th September of the current year are submitted to the proprietors. The balance at credit of revenue, including £3,020. 9s. 2d., brought forward from March last, is £24,509. 78. 4d. The directors recommend that out of this balance a dividend at the rate of 8 per cent. per annum, less income-tax, be declared on the paid-up capital stock of the company; £7,835. 7s. 6d., will be carried to the reserve fund, in accordance with the provisions of the Royal Charter of Incorporation; the balance then remaining will be £5,673. 19s. 10d., out of which the directors propose that a bonus of 1 per cent. on the paid-up capital, less income-tax, be paid to the shareholders, leaving the sum of £2,923. 19s. 10d. to be carried to the credit of the next half-year's accounts. During the period embraced by these accounts the reserve fund has been charged with the sum of £1,116. 4s. 8d. for losses on realisation of securities in default. The balance at credit of this fund, after adding the £7,835. 78. 6d. above referred to, will be £110,802. 8s. 5d. The amount of the company's investments on mortgage in Canada on the 30th September shows the satisfactory increase during the halfyear of $355,128. The directors desire to express their regret at the death of Mr. Saward, who had acted as one of the auditors of this company since its formation. Mr. J. Goodson was unanimously elected at the general meeting, specially called on the 14th ultimo, to fill the vacancy thus created. Dr . Statement of Accounts for the Half-year ending 30th September, 1874. REVENUE ACCOUNT. Total disbursements for half-year .. Balance carried down, being the net profits for the half-year .. Balance brought down £21,488 18 2 3,020 9 2 At bank in London, £3,009. 78. 6d.; petty cash, £9. 188. 8d.; loans on deposit at short notice, £67,000. Os. Od.; at bank and on deposit in Canada, £15,795. 8s. 7d.; petty cash, £530. 98. 6d. Investments-In London £275,000 0 0 13,448 0 0 821,615 3 0 526 9 0 102,967 0 11 56 14 9 24,509 7 4 1,741 17 0 23,084 1 2 123 5 9 £1,263,071 18 11 £10,000 Grand Trunk 4th preference stock,valued at £2,200.08.0d.; Office furniture account in London Ditto ditto in Canada ... = £86,345 4 3 1,140,611 7 9 27,411 18 6 336 13 11 147 10 11 8,219 3 7 £1,263,071 18 11 LONDON CHARTERED BANK OF AUSTRALIA. THE half-yearly meeting of the shareholders in the London Chartered Bank of Australia was held on the 8th December, at the City Terminus Hotel, Cannon Street, under the presidency of Mr. Charles George Barnett. Mr. W. M. Young, the secretary, read the notice calling the meeting. The report of the directors was taken as read.. The Chairman said that he had great pleasure in reporting to the proprietors that the accounts received from Australia, which extended, by the telegraphic advices, to the 6th of the current month, were highly satisfactory. The business of the meeting was limited to the declaration of a dividend, and the adoption of a few necessary alterations in the deed of settlement which were named in the report, and would be discussed seriatim after the other business. He would now therefore limit himself to moving the declaration of the dividend at the rate of 8 per cent. per annum. Mr. De Salis, in seconding the motion, said the profits of the half-year amounted to £40,140, and compared favourably with those of the previous year, there being but little difference between the two. Although the past half-year had been in some respects unfavourable to Australian banking, it was gratifying to find the bank's business had not suffered. This was evidenced by the fact that they had added 154 to the number of their customers, now aggregating 6,503; their discounts and advances also showed an increase of £205,154. On the other hand, their deposits had decreased nearly £200,000. This was one of the chief features in the history of the last half-year's banking, and it affected nearly all the other Australian banks alike. The enhanced demand for money and increased activity of trade had doubtless something to do with the diminution of their deposits, for such a state of things had, in all parts of the world, invariably a tendency to induce the withdrawal of banking deposits; in this instance, however, it was mainly owing to two other circumstances. In order to further the completion of that admirable railway system which would long render Victoria pre-eminent among the other Australian colonies, its Government had found it necessary to withdraw considerable sums from the banks who had the custody of the public funds; nearly £100,000 had thus been withdrawn from them, and the diminution of their deposits for this great reproductive national object was to them, who held such a stake in the colony, a source, not of regret, but rather of congratulation; another cause, however, which had tended to diminish banking deposits in Victoria was not a matter for congratulation, as it resulted from what was virtually a contest between the two great colonies with which they were connected for population and its concomitant-capital. It arose thus :-The River Murray divided the two colonies referred to, namely, Victoria and New South Wales; its banks on either side comprised some of the most fertile land in Australia; but on one side of the Murray land was dear, while on the other it was offered by New South Wales on unusually favourable terms. The result had been a considerable exodus of settlers from Victoria to Riverina, and thus the banks who had established branches situate on the south side of the Murray had lost many good customers, with their deposits. This was subject matter for regret to all persons interested in Australia, for between two sister colonies there should be no contest as regarded population, which should be obtained, not by competition, but through the medium of a well-organised system of emigration from the mother-country and its over-peopled districts. (Hear, hear.) The continued great prosperity of the Australian colonies, as forming the substratum on which their business profits depended, was a subject which on an occasion like the present might be said to invite comment. Their gold yield continued undiminished, and he might observe that at no period was gold ever in more demand to meet the requirements of Europe, nor were the arrivals of Australian gold-ships ever more anxiously watched and expected throughout the whole financial world than at present. Wool, also the chief product of Australia, maintained its price; although iron, coal, and cotton, which usually regulated the price of all other commodities, had declined. These were legitimate subjects of congratulation to all persons interested in Australia, and led him to believe that, taken in connection with the enhanced value of money he had already referred to, the bank's operations for the next half-year would show satisfactory results. Passing to other matters which perhaps concerned them more directly, he would now refer to a few events of interest to the bank which had occurred during the past half-year. The negociation of a considerable loan had lately been entrusted to this bank, in conjunction with the other banks, who had been constituted the financial agents for the colony of Victoria. At first, the public did not seem inclined to view the loan in question with much favour, the terms offered by the colony being considered too low. Through the business connections, however, and the united exertions of the powerful financial institutions associated with them in this matter, the loan had been successfully launched on terms which he believed would have the commendation of all persons in Victoria competent to express an opinion on the subject. The next matter he would refer to, was the visit recently paid to this country by their esteemed superintendent and representative in the colonies, Mr. Brett. He reached England shortly after the last annual meeting; and the directors having availed of his presence to confer with him frequently on the bank's affairs, from the full interchange of views which had taken place between them, he augured the best results. There was one VOL. XXXV. 4 thing in connection with Mr. Brett's visit to this country which he regretted -it was that his time and engagements did not admit of his remaining to be present at the meeting that day, when he would have had great pleasure in introducing Mr. Brett personally to them, and inviting him to express to them the same satisfactory views regarding the position of the bank's affairs which he had communicated to the directors. Before closing his remarks he would now say a few words on the alterations in the deed of settlement which were referred to in the report. First, he would observe that it was with extreme reluctance the directors had decided on proposing any alterations at all in the deed of settlement. That document had, however, been prepared so long ago as twenty-three years, and in this progressive age it was necessary that its provisions should be beforehand in lieu of behindhand of the requirements-of commerce and their business. This remark applied with peculiar force to the first alteration which would be proposed to them. Under the terms of their deed, they were bound to hold their annual meetings in June or July, and this clause was based on the assumption, which at the time the deed was prepared was perfectly correct, that accounts and letters could not reach this country from Australia under four months. Now, however, as they all knew-quite apart from the electric telegraph-letters reached this country in forty-five days from Australia, with all the punctuality of steam; it was, therefore, obvious the annual meetings could be held earlier now than twenty-three years ago, and he doubted not the alteration now proposed to allow of their being held in April or May in lieu of June or July, as at present directed by the deed, would have their entire approval. The second alteration was framed to give the directors power to appoint or not to appoint a permanent chairman. As the deed now stood, this appointment was obligatory on the board, but, inasmuch as the London and Westminster, the London Joint-Stock, and all the other Australian banks established in London were not under compulsion to appoint a permanent chairman, the directors considered it would be for the interest of this bank the board should be placed in a similar position, and he felt sure this alteration would recommend itself to their approbation. The third alteration had for its object to widen the sphere of their choice of directors by enabling the shareholders or the directors, if they deemed it for the interest of the bank, to appoint, upon vacancies to seats at the board, shareholders who had not, as now provided by the deed, held their share qualifications for six months previous to the date of their election. He was aware that there was some difference of opinion as regarded the expediency of this alteration among the proprietors, and he would therefore reserve what he had to say on the subject until the resolutions were proposed, which they would be seriatim. In the interim he would limit himself to saying that a clause of this character had been adopted by nearly all the leading banks of the City of London, to admit of seats at the board being offered without the intervention of a period of six months to persons eminent in commerce or finance-indeed he might say or in politics-for it was to be observed that two ex-Cabinet Ministers had recently joined two of the great City companies; and he would therefore only observe that, in this instance, the alteration in question would not have been suggested by the directors had they not deemed its adoption might, under given circumstances, prove highly advantageous to the bank. (Hear, hear.) He would now second the declaration of the dividend. Mr. William Botly supported the adoption of the report, and as being intimately connected with the Australian colonies desired to endorse every word which Mr. De Salis had said in reference to the great progress which those colonies had for a long time past been making. The greater part of the alterations proposed by the directors in the deed of settlement, and which had been adverted to by Mr. De Salis, were improvements, and would have the cordial approval of the proprietors. There was, however, one alteration authorising the election of directors who had not held their qualification for six months previous to the date of their election which he objected to, and as he believed a considerable number of the proprietors took the same view as he did of this point, he trusted the board would not press an alteration of this character. Mr. Fitz-Gerald and other shareholders having intimated their concurrence in the views expressed by Mr. Botly. The chairman intimated that, after the discussion which had taken place, the board would for the present defer the consideration of the alteration to which exception had been taken. A shareholder inquired at what dates it was proposed in future to hold the bank meetings. Mr. De Salis replied that the directors had, as yet, fixed no dates; but it was probable the meetings would be held at the same period as those of the Oriental Bank, viz., in May and November. The dividend having been declared, resolutions authorising the holding of the annual meetings in April or May, in lieu of June or July, and also authorising the board to appoint or not to appoint a chairman, were unanimously adopted. The proceedings closed with a cordial vote of thanks to the chairman and his colleagues. Abstract of profit and loss account at 30th June, 1874. Dividend proposed to be paid, viz.: 4 per cent. on paid-up capital, for half-year ending 30th June, 1874, free of income tax Balance to next half-year .. £40,000 0 0 Balance carried over, as per last report.. Balance of profit and loss in London and in the colonies for the half-year ending the 30th of June, 1874, after deducting current expenses, income-tax, and making provision for bad and doubtful debts £8,964 8 9 40,140 4 0 £49,104 12 9 Balance brought down £9,104 12 9 THE CHEQUE BANK, LIMITED. THE following is the first annual report submitted to the proprietors at the annual general meeting, held 9th December, Mr. G. W. Currie in the chair. The directors have now to submit to the shareholders and the public the result of the first year's experience of conducting the Cheque Bank. The balancesheet necessarily includes the expenses incurred during the interval between the date of registration of the company (21st January, 1873) and that of commencing its business (23rd July, 1873), and these expenses it is proposed gradually to liquidate by carrying them to succeeding "profit and loss accounts,' at the rate of one-seventh of this amount annually, as has been done in the present statement of account. Notwithstanding that the "profit and loss account," after charging the proportion of first establishment expenses, as referred to above, exhibits a debit balance of £13,493. 2s. the directors consider that the results attained afford strong ground for a hopeful future in the development of the undertaking. As regards the "balance-sheet," it will be observed that the largest portion of the subscribed capital is-in accordance with the articles of association-invested in the trust fund of £100,000 consols, and that of the remainder, upwards of fifty per cent. has been invested in securing and adapting the premises in Pall Mall, an investment made after much considera. |