THE UNION BANK OF AUSTRALIA, (LIMITED).

Gisborne Standard and Cook County Gazette, Volume I, Issue 46, 27 September 1887, Page 2

THE UNION BANK OF AUSTRALIA, (LIMITED).

The annual general meeting of this company was held on Tuesday at the office, 1, Bank-building., Lothbury; Mr William O, Gilchrist in the chair, Mr W. R. Mbwbusn (manager) read the notice convening the meeting, and the following report and accounts were submitted *' The directors, in submitting the balance sheet of the Bank as at the 28th of Feb. last, duly audited, have to report; that the profits admit of a dividend of £1 10s per share, being at the rate of 12 per cent, per annum. Advices from the Australian colonies report continued depression in trade and in values of property, and an absence of reviving enterprise ; and the directors, in carefully reviewing the business of the Bank, have taken this condition of things into their consideration in making provision for all apparently doubtful dependencies. It is satisfactory to state, however, that the season in the Australian colonies generally has continued favorable for the pastoral and agricultural inter.Sts ; aud whenever a revival in trade aud enterprise shall set in this Bank is in an excellent position to take ad vantage thereof. The directors have to report that since last meeting of shareholders branches of the Bank have been opened at Col-ingwoud aud South Melbourne in Victoria ; nt West Maitland, Grenfell, aud Broken-hill in New South Wales ; and at South Brisbane in Queensland. The directors regrettor -po t Air M*Mullen,whohas been so frequently aduded to in commendatory terms at meetings of sharehoders; has, owing to the state of his health, resigned his appointment of Inspector and General Manager, after a lengthened service in the Bank of over thirty years, during nearly the whole of

'• VVs certify that the various securities held In London have been produced to ug, and hat we have examined the balance books of the several branches in the colonies for the six niruths ended 28th February, 1887, and the books and accounts of the London office for the same period, and, having compared the combined results with the above balance-sheet,have found the same correct. "ft™ ta™ } Auditors,"

The Chairman said: Gentlemen, our periodical reports of late years and the remarks from this chair have apprised you of the hard prevailing throughout the Australian oolouiesi and these unfavourable influences, Combined with high rates of interest ruling for deposit niotie's there and some contraction of the volume of our advance business incidental to the cautious and vigilant policy so necessary in such times, if losses are to be avoided, have caused a reduction of our profits, but I venture to think that, when all the adverse environments of the period under review are taken into consideration, a dividend of 12 per cent, may be regarded with soma satisfaction. The effects of the protracted and disastic is drought which terminated last year after some four or five years’ duration, are still developing themselves to the disadvantage of pastoral and agricultural interests, and the continued prevalence of low prices for colonial prodc 3tions and depressed condition of trade generally press heavily on all circles. And although it is probable that a cycle of propitious seasons and a revival of trade, which we have so long been hoping for, not only in Australia, but also throughout the commercial world generally, would restore confidence and tend to re-est a’dish the flow of colonial prosperity, it is inevitable that some time must elapse before we can expect to see much inclination or ability for fresh enterprise or investment, and when such favourable symptoms again set in, it is to be feared that a lower standard of values of property than has been prevailing hitherto must be submitted to where realisation is necessary. Under these circumstances, therefore, the administration of financial affairs requires the exercise of the utmost circumspection and discretion. While competition on all sides is so keen, and our margins are narrowed in consequence, we must not be unprepared for small profits, as well as to experience increased difficulty in earning them. (Hear, hear.) Turning to the balance-sheet we present to you to-day, it is satisfactory to observe that our business is well maintained, and that as regards resources we are in a very strong position, able and ready to avail ourselves of any advantageous opportunity of enlargements of our operations, and open to promote all safe and desirable business that may be offered to us on the most encouraging and favourable terms. In this connection I may draw your attention to the establishment of several new branches in Australia, and this question is having the special and earnest consideration of your Directors and the General Manager, with a view to further development whenever and wherever promising prospects present themselves for so benefiting and expanding business of the Bank. (Cheers.) The

which period he held that important position’ A# his successor the directors have appointed Mr David Finlayson, who has for several years filled the responsible posts of Manager at Sydney, and, more recently, at Melbourne, and in whose ability and judgement, and fitness for his now duties; the directors have entire confidence. The directors lament the loss by death of their highly-esteemed colleague, William Fanning, Ksq , whose connection with the bank in the colonies and London extended over more than forty years, and to whose wide and valuable experience the bank is largely indebted. The directors have, in accordance with the provisions of the deed of settlement, filled the seat thus vacated by the appointment of Major Frederick Fanning—a brother of their late colleague, aud for many years a local director in Sydney, who now offers himself for election. Charles Edward Bright, Esq, C.M.G., whose nomination to a seat on the board was announced at the half-yearly meeting in January, also offers himself for election, Freder ck Gonnermam Dalgety, Esq , and Edward Peach William Miles, Esq., are the directors who retire on this occasion, under the provisions of the deed of settlement, and offer themselves for re-election. Albert Deacoh, and Frederick Whinneyj Esq., the auditors of the company, also retire,and offer themselves for reelection. The annexed balance-sheet presents a net amount of profits, including the balance brought forward of £104,827 16s 4d available for division Of this the dividend will absorb £90,000 and , leave £14.827 163 4d to be carried forward. | The dividend warrants will be transmitted !by poston August 3, and the dividend will ibe payable in the colonics at such date ns the general manager shall fix after receipt of telegram.

accounts of all our Branches have* as usual undergone the most careful and exhaustive scrutiny and review on the part of the special Committee of Directors, and full and ample provision has been made for all contingencies. We have also carefully examined all the securities, bonds, and property we hold in London, and find everything in perfect order. (Hear, hear.) I. do not think there is any particular item in the accounts that requires special notice or comment from me; but if there are any points on which any proprietor is desirous of further information I shall be most happy to supply it to the best of my ability. Regarding our Inscribed Stock Deposits, I may mention that the full amount of our first issue, £500,000, was subscribed on the 25th cf May last, and as the matter is now before the Stock Exchange Committee we are in daily hopes of hearing that an official quotation has been granted. (Hear, hear.) No further issues of these Inscribed Stock Deposits will be made by the Bank until after the 30th of June, 1888. Referring to the resignation of Mr M’Mullen, it will be interesting to you to have some further information regarding his connection with our Bank than the report can afford, and I am glad to be able to offer it to you. Mr M’Mullen was appointed to the Union Bank of Australia in October, 1856, and entered on his duties on the Ist of January, 1857. At that time the aggregate figures of our balancesheet stood at £5,079,880. They now stand at £16,275,247. Our reserve funds then amounted to £200,000 : they now stand at £980,000. (Hear, hear.) And during the period of Mr M’Mullen’s administration of our business in the colonies the sum of £5,828,937 has been earned as profits, and paid to the proprietors by way of dividends. (Cheers.) These remarkable figures require no eulogistic comments from me—they speak for themselves. I beg to move “ That the report and statement of accounts now submitted be adopted.” Mr Botly seconded the motion, which, after a few remarks by Mr Wilkinson, was put and carried unanimously. Mr Charles Edward Bright, whose nomination to a seat on the Board was announced at the half-yearly meeting in January, was elected a director, and the retiring directors, Mr F. G. Dalgety and Mr E. P W. Miles, were re-elected. Major Fanning was elected in the place of Mr W. Fanning, deceased. Mr A. Deacon and Mr F. Whinney, the retiring auditors, were re-appointed. A vote of thanks to the Chairman and Directors, and also to Mr Mewburn (the manager), and the London and colonial staff, then terminated the proceedings.— Money Market Review, August 5.

Paid Up Capital £1,500,000 Reserve Funis ... £980,000 Together ,,. ,,, ,,, 2,480,000 Reserve Liability of Proprietors ... ... ... ... 3,000,000 Total Capital and Reserve funds ... £5,480,000

Balance-sheet, February 28, 1887. LIABILITIES, Capital £4 500,000 Less—Reserve liability 3,000,000 Paid up £1,500,000 0 0 Reserve funds 980,000 0 0 Of which there is invested in Imperial guaranteed four per cent debentures >>• ••• ••• ••• £350,000 0 0 India Government Sterling Stack ... ... ... ... 50,000 0 0 Colonial Government and municipal debentures 100,000 0 0 Bank premises and property as per contra ... ... ... 358.453 9 3 Circulation 364,542 10 0 Denosits 11,722 752 18 7 Bills payable and other liabilities (including reserves held against doubtful debts) 1,603,124 11 n Balance of undivided profits... ... ... ... 104,826 16 4 £16,275,247 16 10 ASSETS, Specie on hand and cash balances £2,203,993 0 1 Bullion on hand and in transitu 95 825 13 0 Money at call and short notice in London 915 000 0 0 Government and municipal securities 991,293 5 3 Bills receivable, loans, and other securities at London office ... 1,746,513 6 8 Bdls discounted, bills receivable, loans and other securities at the branches . 9,964,169 2 7 Bank premises and property 358,453 9 3 £16,275,247 16 10 STATEMENT OF ASSETS. Balance of undivided profi's at 31st Aug., 1886 ... ... ... £122,337 14 0 Gout of which a dividend was declared of,.. ... ... 105,000 0 0 Leaving a balance of ... £17,367 14 0 Profits of the past half-year, after mak. ine provision for all bad and doubtful debts ... £174,155 14 0 Remuneration to the local directors, and salaries and allowances to the colonial staff ... £32,497 i i General expenses in the colonies including rent, taxes, etatiouerv, &c. ... ... 13,25b 5 o Remuneration to the board of directors and auditors, salaries of Loudon office staff, rent, taxes, stationery, and general expenses ... ... 11.935 0 0 Income-tax 3,987 18 8 86 696 11 8 87,460 2 4 Balance of undivided profits at this date £104,827 16 4 “London. July 19. 1'87. W. O, Gilchrist J iToHtf 8. Hill 1 CharLes Parsvry f Directors. H. P, Sturgis W. R. Mewburn, Manager. R. Bcchlvk. Acocuntan Fl