Commercial.

Hawke's Bay Herald, Volume 14, Issue 1142, 8 April 1870, Page 2

Commercial.

UNION BANK OF AUSTRALIA.

A special general meeting of the proprietors (Sir Henry Watson Parker in the chair) was held at the bank offices, Lothbury, yesterday afternoon, when the Directors submitted the following report and statement of accounts : — Supplementary Report of the Directors of the Umion Bank or Australia, presented at tho Special Gennral Meeting of tho Proprietors, held oil Lhe 10th January, 1870. The Directors are gratified at presenting to the proprietor.-! a statement of account, which has enabled them, afier providing for every ascertained loss and doubtful dependency, to declare a dividend of 7J per cent, or at the rate of 15 per cent, per annum. By litest advico I'roin the colonies the belief was entertained that tho most serious point of depression affecting tho pastoral interests had b en. readied; copious 'rains liad removed all fears of another dry season, and there was a general tendency to improvement in tho value of pastoral property. Of tho sound and legitimate) character of tho Bank's business generally, tho Directors entertain and express a confident opinion, founded not only upon the very favorable assurances of Al r. M'Mulleu, the xeneral manager, but also upon a constant and rn»id scrutiny by the Directors themselves of every account. The Directors havo pleasure in continuing to bear testimony to the unabated zeal and attention displayed by the general ma" ager and the other officers, both at home and abroad, in promoting the best interpsts of- the Bank. The annexed statement of accounts presents a net profit of £00,573 11s. 8&, available for division, of

which the dividend for the half-year will absorb £93,750, beiiiK at tho rate of £1 17s. 6d. per share. The dividend warrants will be transmitted by post for 18th instant, and the dividend will be payable in the colonies as soon as tho general manager shall fix after receipt of advices. UNION BANK OF AXJSTBALIA. Statement of Liabilities and Assets, at the Branches, on theSOlh June, and at the London Office On the 31st December, 1869.

The Chairman said it afforded his colleagues and himself much satisfaction to bo able to meet the proprietors with what lie thought limy would agree with him in considering an exceedingly favourable report and statement of accounts. That result had been arrived at after a. careful and strict examination of all the accounts in the colonies up to the latest dates, and up to the end of the year in London. It waa tho custom of the office to strike the profits to midsummer only in the coloniesj and to the end of the year in London; but at the same time an examination of tho colonial accounts had been made down to tho dates of the latest advices. He felt justified, therefore, in saying that allowance had been mado, as far as was known, for all debts, whether of a contingent character, or such as had been ascertained to be bad. Considering the extreme, he might say the unexampled depression, through which the Australian colonies had lately had to pass, it was possibly beyond the expectation of all who heard .him that the Bank had been enabled to maintain the usual dividend. That they were in a pos tion to do so was an extraordinary fact, which ho ascribed in a great measure to the Vigilance and activity displayed by their officers, both at home and abroad; and ho thought it was only just to those gentlemen to pay this tribute to what he considered to be th<'ir merits. He himself had had a long experience in the Australian colonies, and had observed that there were periodical alternations of prosperity add depression there as well as elsewhere. The colonies had just passed through f lic period of depression; therefore it was not too much to hopo that commerce would revive a;id pastoral interests improve, and that they would now enjoy a renewed prosperity. It was certainly a sad anil p.iiu'ul tiling to attempt to build up prosperity on the ashes of adversity; but his opinion was) however much misfortune niight have overtaken individuals; that substantially the wealth of the colonies remained intact. Them were still tho sheep and the cattle; there were still the land, and the pasturage; and, indeed, everything remained as it was, but unhappily misfortune had fallen upon individuals; and it would be obvious that if people who formerly embarked in sheep-farming paid a guinea, 235., or 245. a head for their sheep, it must be disastrous to them to sell tho wool of those sheep at tho price which ruled in the London market. On the other hand, if those who now entered into pastoral pursuits could buy sheep at 4a. or ss. a head, it was equally clear that the present price of wool in the London market must be highly remunerative. Although it might be hard to look upon misfortune from this purely commercial point of view, still tho directors and proprietors, as bankers, wore bound to regard it in that light for their own interest (hear). There wero one or two things which seemed to be very favorable in the present aspect of affairs. All who were acquainted with the pastoral interosts of the Australian colonies knew tnat of late^it was not so formerly— one of tho most .serious difficulties which the squatter had had to contend with was the want of a market for his surplus stock. Runs had been fully occupied, and tho country takon up an far as they could go behind; but the natural increase of the flocks could find no market where it could be disposed of. At last, however, they appeared to have arrived at some solution of tho question. Every one must be aware of the valuo of the newly-im-ported meat from the Australian colonies, and he hoped that by the advance of science and the extension of commercial enterprise they would succeed in removing this difficulty, which hnd of late pressed so heavily upon the Australian squatter— that was to say, tho want of a market for his surplus stock. Ho had tasted the imported meat and formed his opinion respecting it, and he begged gentlemen to do the same and judge for themselves as to what was its true value. He hesitated not to say that it was of excellent quality, and that it might be usefully and economically introduced for consumption in English households. By this means, whilst conferring a great advantage upon the Australian settler, the mother country too would be benefited, and even tho continent of Europe. This, then, was highly encouraging, for there was nothing that he knew of to impede the advance of the Australian squatter if hi could only go on with a moderate price for his wool as a return for the small price he paid for his slice;), and if he could get a market for his surplus stock. Another subject tt which he would advert was that of emigration ; and when ho witnessed tho too generally distressed state of a redundant population at homo, and saw that on the other side of the globe, in our Australian colonies, the settlers were panting and thirsting for that labour of which we had a superabundance here, he asked himself why not establish a wholesome system of emigration which will have the effect of benefiting at once the mother country and the colonies. No doubt it was a groat distance to 'oridpe over; but ho could not help thinking that through tho active exertions of tne community at largo, aided by tho executive government, some system might be devised that would correct this extraordinary anomaly. In his view of the matter, population was nothing more or less than a commodity which must be regulated by the law of demand and supply. It was nothing but distance that had to bo overcome, and if wo could only find the means of getting rid of the surplus population in England, and sending it where it was most wanted, at the antipodes, wo should greatly benefit alike tho mother country and her colonies. Ho trusted that these reflections would not be regarded as irrelevant to the business in which they were engaged. The connection between them and banking operations might seem to bo remote; but ho held that whatever tended to improve the stato of commerce and the c indition of tho squatters in the colonies must shortly, though indirectly, be felt by the banking interest, ami that the prosperity of the commercial and pastoral interests must promote the prosperity of the banking interest in the Australian colonies (hear, hear.) In conclusion, Sir Henry moved tho adoption of the report and statement of accounts. Mr. Brooks having seconded the motion. Mr. Cunningham addressed two complaints to the chairman — one being that the report was not circulated prior to the meeting; the othor of the paucity of the information it contained. Mr. Mowatl; expressed his concurrence in the views of the previous speakor, but admitted tint, under all tho circumstances, ho was surprised the directors had boon able to give continuously such a dividend, and that he had no doubt the affairs of tho bank were well conducted. Mr. Jephson had unlimited faith in tho directors in all respects except one, and that was in the matter of economy. Upon that point ho avowed that his confidence was very limited indeed. Tho expenses of the bank amounted to one-third of the prolits. which was a near approximation to tho rail, way scalo. With tho exercise of economy he was satisfied that, instead of Uie dividend being £1 17s (Id a slure, it would be again £1 2s Cv, as it used to be. The Chairman — Not for the last two years. Mr. Sebag owned that ho was " charmed " when he read in tin papers the announcement of the proposed dividend. In his opinion it spoke volumes, and was altogether beside tho question whother tho report and balanco-sheet should bo oirenlated a day or two sooner. The proprietors had scarcely over met when the trade and commerce of tho colonies and tho mother country had been in so distressed aid waning a stale as during tho past Iwdve months, and ho felt that the confidence or tho proprietary ought to bo promptly and generously accorded to tho directors {hear, "hear). Adverting next to tho insurance fund of ,£75,000 set apart a few years ago to meet contingencies or risks ou tho freights of goods sent to the colonies, Mr. Sebag observed that reports were currpjit out of doors to the i-fl'ect that largo sums of money had been lost by tho bank on this account ; ho wished to know, therefore, whether the insurance business had been successful or not. If it had been successful Iho proprietary would bo justified in looking forward to roi'-i ivo some return or bonus for tho capital- employed in tho business ; whilst, if the contrurv were the east 1 , and it had not been successful, the" directors would find their liands greatly strengthened if they declared that the time had como, after a few years' experience, when it was no longer desirable to continue the

business. He differed from fhe proprietors who complained of the barrenness of the information supplied by the statement of accounts,- and contended that it would compare advantageously with the information given to its proprietors by the Bank of England. The Chairman, in reply, said the Directors were not averse to the circulation of the report and accounts in the manner suggested, provided the shareholders were willing to have the dividend put off for a week. That was the only difficulty, and it rested solely with themselves whether there should be that delayor not (a general and reiterated cry of "No"). With regard to the question of economy in the management, the gentleman lyhp i had referred to it could scarcely be aware of the number of branches existing in connection with the Bank in the colonies. That the expenses of the establishment at home, were not heavy; -must be admitted. (Mr; Jephson— l am quite aware of that ) And as to those in the colonies, when he remembered that there were 34 or 88 branches there, and all in places where the expenses were necessarily very high, his wonder was that the expenditure was not still higher (hear, hear.) At any rate, he was sure that the utmost economy was observed so far as was practicable and consistent with the maintenance of efficiency. As to Mr. Sebag's question, ho frankly admitted that the insurance business had not turned out satisfactorily; but the accounts wero not yet in a sufficiently forward state to enable the. board to say exactly how the matter stood; otherwise; it would have been included in the report presented that day. He believed it was pretty well understood that the board would give up the business of insurance, though it was not finally settled yet, but when a decision had been arrived at the proprietors would be informed of the result. All the losses incurred on this account, and they were under £10.000, had been fully provided for (hear, hear), Mr. Jephson.— And the £75,000 remained intact ? The Chairman. — Yes (hear, hear), The motion adopting the report and aocounts was then agreed to; a notice that the dividend warrants would be transmitted to the shareholders on the 17th inst. was read by the manager'(Mr. Bramwell), and a cordial and unanimous vote of thanks to the chairm.au and directors, the managers and officers at home and in the colonies, terminated the proceedings.— London Standard, January 11.

LIABILITIES. Circulation .; £ 321,790 0 0 Deposits 3,170,414 18 11 Bills payable and other liabilities (including reserves held against doubtful debts) ... ; 1,078,078 13 11 Balance of undivided profit ... 95,571 11 1 Reserve fund 4 ... 250,000 0 0 Insurance reserve account ... 75,000 0 0 .Bank premises reserve account... 75,000 0 0 Capital .... 1,250,000 0 0 •. £0,323,757 4 6 ASSETS. Speoieonhand, and cash balances £97,0,305 2 5 Bullion on hand and in trausitu 224,257 2 9 Bank premises and property ... 178,798 0 7 Government securities (British and colonial) 124,260 0 2 Local bills, bills receivable, and other securities 4,500,138 9 7 Reserve fund, invested as per statement 250,000 0 0 £6,323,757 4 6 STATEMENT OF PBOEIT3. Balance of undivided profits at 30th .1 une, 18G9 £ 98,051 7 10 Out of which a dividend waj declarodof . ... 93,750 0 0 Leaving a balance of .., ... £l t 3sl 710 Profits of the past half-year, after making provision for less all bad and doubtful debts £143,81012 Remuneration to local directors, andsalariesaud allowances to colonial staff... £33,205;.'5 7 General expenses in colonies including rent, taxes, stationery, &c 11,407 i 2 Remuneration to board of directors, salaries of London office, staff, rent,, stationery, taxes, and general expenses 8,042 7 0 Income tax ... 1,7991210 £54,544 6 7 -J89t.272 3 10 Balance of Undivided profits at this date £96,573 11 8 HESI3BVED FUND. New Zealand Imperial 4 per cent. Debentures £200,000 0 0 Colonial 0 per cent. Debentures.., 50,000 0 0 £250,000 0 0 (Stoned) R. CARTI3E, Chairman of Committee. JOHN BRAMW ELL, Manager. J. O. LANGLKY, Accountant. London, January 7, 1870.