UNION BANK OF AUSTRALIA.

Poverty Bay Herald, Volume VI, Issue 648, 12 March 1879, Page 2

UNION BANK OF AUSTRALIA.

The half-yearly meeting of the share- ] holders m the Union Bank of Australia was held on Monday at the head offices, 1, Bank-buildings, Lothbury, for the purpose of receiving a report and statement of accounts, and declaring a dividend. Mr. Richard James Ashton presided. There was a larae attendance of shareholders. Mr. W. E. Mewburn, the manager, having, read the notice calling the meeting, proceeded to read the report of the board aud statement of accounts, which were as follows : — "The directors congratulate the proprietors upon the favourable statement of accounts which they are euabled to lay before thim at the present time of financial aud commercial distrust and depression, the profits having admitted of the declaration of a dividend of 7 per cent, for the half-year, and of a bonus of os. per share, being together at the rate of 16 per cent, per annnm, and of the transfer of the sum of £20,000 to the reserve funds. The directors have, as usual, closely scrutinised all the advances, and have provided very amply forevery'bad and doubtful debt, atfd they have; pleasure m assuring the proprietors'that the bank's business continUes to be safe and legitimate, and its uositian sound and prosperous. Whilst reporting thus favourably upon the bank, the directors regret that they cannot refer m similar terms to the principal interests of the Australian colonies. In sympathy with the depression m other raw materials, wool experienced at the recent sales a sensible decline m value. Wheat, which is now largely exported from Australia and New Zealand, and copper, as well as other products, have also fallen m price. These circumstances must tend to increase the dullness of trade and stringency of money prevailing m the Colonies, and the directors have m consequence enjoined upon their responsible officers the necessity of great circumspection m all transactions. They are happy to add that the present season is favorable both for the pastoral and agricultural interests, and that, although they recognise the importance of continued oaution and prudence, they confidently believe that the trade and prosperity of the colonies rest upon too assured and solid a basis to be more than temporarily affected by the dullness and monetary piessure to which they have alluded. Meanwhile, m New Zealand, and m a less degree m New South Wales and Victoria, an excessive competi-

tion has sprung up for deposits, and rates of interest have been unduly raised without being accompanied by an increase m the charge for discounts. This bauk has steadily pursued and advocated a policy of harmonious action by the banks, and the maintenance of reasonable and equitable terms for business. The directors, therefore while carefully guarding the valuable business of the bank, will welcome the termination of this unwholesome competition, which must diminish the profits of all the banks without benefittiug any one of them. The 667 new shares referred to m the annual report m July, and for which tenders were received from the proprietors on 30th July, realised an average price of £61 la 7d. Owing to the changed state of money m the colonies, the remaining 500 new shares mentioned m that report have not been alloted. and remain m the hands of the board. The directors greatly regret to report the retirement of their much-esteemed, and valued colleague, Mr. Archibald M'Lachlan, whose business capacity and knowledge of the colonies have been of much benefit to the bank. The vacancy thus created has been provisionally filled by the directors, m accordance with the deed of settlement, by the appointment of Mr. James Kichard Bull en Smith, C.5.1., who now offers himself for election. During the tryiug and anxious time through which the monetary and mercantile world has been passing, the staff, both abroad and at home, have displayed their usual tact, zeal, aud ability, for which the directors have so often had occasion to thank them. The annexed balance-sheet presents a net profit of £146,002 15s lid out of which the sum of £20,000 has been transferred to the reserve fund, and the balance, viz., £126,002 15s lid is available for division. Of this, the dividend and bonus will absorb £118,537, viz., 59,037 shares at £2 each, £118,074 ; and 463 colonial new shares taken up m October last, an apportionment of a moiety of the dividend and bonus, £463 ; leaving £7,465 15s lid to be carried forward. The dividend warrants will be transmitted by post on the 20th inst., and the dividend and bonus will be payable m the Colonies at such time as the general manager shall fix after receipt of telegram." The following is the Statement of Liabilities and Assets, at the Branches, on the 29th June, and at the London office, on the 31st December, 1878 : —

Liabilities. Capital £1,500.000 0 0 Less 500 new shares not taken up, at ™«*~- • • _J!^_°_^ £„487,500 0 0 Reserve Funds :— Viz., as per contra £200,000 0 0 fr Other reserve funds, * '*' including reserves against bank premises, as at Dec. 31. 1877 £200,000 0 0 Premium of £33 on 9,500 new shares ... 313,500 0 0 Amount transferred from this half -year's profits 20,000 0 0 * £533,500 0 0 783,500 0 0 Circulation ... 380,522 15 0 Deposits 6,911,943 10 7 Bills payable and other liabilities (including reserves held against doubtful debts) 1,589,189 16 11 Balance of undivided profits ... 126002 15 11 £11,278,658 18 5 Assets. Specie on hand, and cash balauces ... ••• £1,238,702 18 10 Bullion on hand and m transitu ... ••• 141,023 13 8 Bank premises and property ... ••• 187,693 14 8 Government securities ... ... ... ••• ••• 137,922 17 6 Local bills, bills receivable, and other securities ... ... 9,323.315 13 9 Reserve fund, invested as per statement ... 250,000 0 0 £11,278,658 18 5 Statement of Profits. Balance of undivided profits at June 29, 1878 ...» ... £117,133 6 6 Out of which a dividend and bonus were declared of ... 110,000 0 0 Leaving a balance of ... ... ... ... £7,133 6 6 Moiety of last half-year's dividend and bonus on 1,630 new shares not taken up at June 29, and now returned to profits ... 1>630 0 0 Profit on sale by tender of 667 new shares beyond the issue price of £58 per share £2,055 14 6 Profits of the past half-year, after making provision for all bad and doubtful debts 200,760 9 1 Less— £202,816 3 7 Remuneration to the local directors, and salaries and allowances to the Colonial staff ... ... £40,064 17 8 General expenses m the colonies, including rent, taxes, stationery, &c... 13,970 4 7 Remuneration to the board - of directors, salaries of London office, staff, rent, taxes, stationery, and general expenses ... 9,287 14 10 *— *« • WW " ' £65,576 X 2 £137,239 9 5 Deduct amount transferred to reserve funds 20,000 0 0 Balance of undivided profits at this date £126,002 15 11 Reserve Funds. New Zealand Imperial Four per Cent. Debentures ... ... £200,000 0 0 Colonial Six per Cent. Debentures 50,000 U U £250,000 0 0 Other Reserve funds, , including reserves against bank 500 0 0 premises [ Total reserve Funds £783,500 0 0