UNION BANK OF AUSTRALIA.

New Zealand Herald, Volume IV, Issue 1230, 24 October 1867, Page 5

UNION BANK OF AUSTRALIA.

(From the Daily News, July 16.) The annual general meeting was held yesterday, Mr. Dalgety in the chair. The manager (Mr. W. J. Saunders) read the following report:— "The directors have to report that the effects of the monetary pressure in Australia and New Zealand, which followed upon the London panic of 1866, have provod moro enduring than they had reason to believe when they last hud the pleasure of meeting the proprietors. These have unfortunately occasioned an increase of loss, which has been provided for. Notwithstanding this, however, tho directors aro enabled to deolaro a dividend at tho same rate as for tho previous year, and to submit a statement of accounts which they confidently believe must provo satisfactory to the proprietors. It will bo readily understood that a contraction of business in some of the principal places has followed upon tho commercial difficulties alluded to : but latest advices tend to show that though the operations open to tho bank may consequently become somewhat more limited for a timo, they will nevertheless furnish a sound medium for the profitable employment of tho bank's resources. It is very important to noto that, although there has been recently a decline in the price of wool, the great coloni il staplo, its relative value has been more steadily maintained in this country than that of any othor article of produce; that tho yield of gold has been fairly kept up, and that generally the main interests of the colonies continue healthy and prosperous. The direotors report with much sat :, sfaction that the despatches they receive continue to afford the fullest evidence of the sound intelligence and unabated zeal of the general manager and the bank's staff. Sir Charles Nicholson, Bart., and Sir Henry Watson Parker aro the directors who retire on this occasion in accordance with tho provisions of tho deed of settlement, and offer themselves for re-election. The subjoined statement of accounts presents a net profit of £105,017 4s. 10d., available for division. I'he directors have, therefore, determined to apply the sum of .£100,250 as a dividend of £2 2s 6d per Bhare for tho half-year. Tho dividend warrants will bo transmitted by po3t, for 23rd instant, and in tho colosios the dividend will bo payable us soon as the inspector shall fix after the receipt of advices."

Tho Chairman : Gentlemen, in moving tho adoption of the report just read I feel my task an easy one, for it cannot be otherwise than gratifying to you that, despite many adverse circumstances, your directors are in a position to maintain a dividend of £2 2s 6d por share, equivalent to seventeen per cent, per annum, after "providing for all losses by bad and doubtful debts. The balance-sheet, as compared with the one of tho sume period last year, shows some variations. In the first item the circulation is reduced to £50,000, attributed to our closing two or three gold buying agencies that gave no adequate profit for the risk incurred, as also to the greater facilities afforded miners ond ethers in tho gold-fields for depositing their earnings. Deposits show an in- I crease of half a million, but they are temporarily augmented by largo balances held in London belonging to two colonial governments, a portion of which has been paid during the current month. The bank, as you aro aware, has also been receiving deposits in London, which tend to swell tho account. Tho balanco of undivided profits is a few hundred pounds | in excess of last year, and requires no comment. Bank premises have been increased by the erection of two new banking houses. Sinco tho creation of tho reserve for premises nothing has been written in reduction of this item for dilapidation or depreciation, as previously was tho custom, tho reserve being considered fully adequate. Local bills, bills receivable, and other securities, vary according to tlio supply and demand. In tho matter of Lewis's action, tho directors, in ignorance of Mr. Lewis's intentions, cannot divulge their own. After being defeated in tho first trial, ho brought a second one in Melbourne beforo tho full Court, in which ho was nonsuited. It is understood that lia intends appoaling to tho Privy Council, but this cannot bo definitely known ior a mail or two, as ho must first pay costs incurred, and give security for future ones. (Hear, hear.)

Mr. Mowntt. —Can you tell us what is the amount of bad and ctoubtful debts ? Tho Chairman.—That is a question which has never boon put to the Chair before, nor do I think it ■would be to the interest of the bank to give tlio exact figures. Wo have had exceptional losses in the colonies during tho year, and wo wero fortunately in a position to provido for them. I may mention that in South Australia they have had to pass through a period of considerable financial difficulty, from circumstances unforseen and uncontrollable —tho severe droughts, and legislative enactments affecting the squatters. In Auckland, for instance, tho withdrawal of the commissariat cxpendilure has necessarily affecting the trading community, and losses which wero not foreseen or anticipated have occurred. You have tho assurance of the directors that everything is provided for as far as they can ascertain or anticipate, and I think that ought to be satisfactory. (Cheers.) Mr. O. Botley secondod the adoption of the roport, which ho thought inUßt ho satisfactory to tho general body of shareholders. (Hear, hear.) They had passed through a crisii which was severely felt in the Australian colonies, and they ought to be well pleased that tho directors were able to give them tho same dividend as in more fortunate years. Mr. Nicol inquired what was the amount of the reserve against bud and doubtful debts. Tho Chairman.--"Wo have provided for tho losses ascertained or anticipated up to the latest dates from tho colonies, but wo have no reserve to augment future dividends. I may add that during the year about £30,000 haß been deducted from profits to meot bad and doubtful debts. Mr. Nicol. —I think tho answer is most satisfactory, and I am only astonished that the amount is so small. The motion was then put, and carried unanimously. The Chairman moved, and Mr. Balfour seconded the re-election of Sir Charles Nicholson, Bart., which was carried unanimously. The Chairman also moved, and Mr. Ducroz seconded, tho re-election of SirH. W. Parker, which was also carried unanimously. Thanks to the chairman concluded the proceedings.