UNION BANK OF AUSTRALIA.

Wellington Independent, Volume XXVI, Issue 3305, 18 September 1871, Page 2

UNION BANK OF AUSTRALIA.

The annual meeting of the proprietors of this Bank was held yesterday at the offices, No. 1, Bank Buildings, Lothbury, Mr Robert Carter in the chair.

Mr J. Bramwell, the manager, having read the notice convening the meeting, tho following report of the Directors, together with a statement of accounts, was submitted :

" The Directors have satisfaction in presenting to the proprietors a statement of accounts, which has enabled them, after amply providing for every bad and doubtful debt, to declaro a dividend of G\ per cent, for the halfyear, being at the rate of 13 per cent, per annum. By latest advices from tho colonies, the dulneas and contraction of trade generally, which have been noticed on previous occasions, still prevailed, but from the recent great rise in this market in the value of their chief staple, wool, the Directors are hopeful that an impetus will be given to business generally in the colonies, from which the bank must derive benefit. The Directors having found it necessary for the bettor carrying on of the business of the Bank to obtain authority to sue and be sued in the name of a public officer, applied to Parliament during the present session, and obtained an Act for that purpose. Richard James Ashton, Esq., and Charles Henry Mills, Esq., M.P., retire from tho di* rectioa on the present occasion, in conformity with the provisions of the Deed of Settlement, and now offer themselves for re-election. It is a pleasing duty on the part of the Directors again to record their high estimation of the ability, zeal, and assiduity displayed by the general manager, tho branch managers, and officers generally in the colonies, as well as by the manager, secretary, and staff in tho London office. The statement of accounts presents a net profit of £81,010 5s available for division, of which the dividend for the half-year, free of income-tax, will absorb £81,250, being at the rate of £1 12h 6d per share, leaving £2,760 5? to be carried forward. The dividend warrants will be transmitted by post on the 17th instant, and the dividends will bo payable in the colonies at euch time as tho general manager shall fix after receipt of advicee."

LIABILITIES. Circulation £324,311 0 0 Deposits 3,351,036 6 1 Bills payable and other"} liabilities (including ro-N 009 527 14 7 serves held against doubt- C ' ' ful debts) ) Balance of undivided profit 84,010 5 0 Reserve fund 250,000 0 0 Insurance reservo account 75,000 0 0 Bank premises, rescrvo ac« count 75,000 0 0 Capital 1,250,000 0 0 £6,418,885 5 8 ASSETS. Specie on hand, and cash balances 860,710 5 4 Bullion iv hand and in transitu 173,301 4 9 Bank premises and property 170,913 14 8 Government securities (British and Colonial) ... 253,634 5 2 Local bills, bills receivable, and other securities ... 4,710,295 15 9 Reserve fund, invested as per statement 250,000 0 0 £6,418,885 5 8 RESERVE TUKD. New Zealand Imperial Four per Cent. Debentures ... £200,000 0 0 Colonial Six per Cent. Debentures 50,000 0 0 £250,000 0 0 The Chairman, in moving the adoption of the report and accounts, thought ho need not take up much time in the way o( explanation, as the accounts themselves were so simple as to be easily understood. The first thing to romark upon was the statement of assets and liabilities, winch, compared with the eamo accounts of la3t year, exhibited a reduction in almost every item. At the same time there was a email increase in profits, and on the whole the accounts showed a favorable state of tilings, although it might have been a question whether it was worth while to make so trifling an addition as 2s 6d per share to the dividend. But that was a matter on which the Directors had no option, because when the invested reserve was made up to £250,000 it was a clear understanding between tho Board and the shareholders generally that the profits of the half-year should be regularly distributed. I Besides, the £9000 odd increase of divisable j profits waa applicable to the previous as well as the pa3t half-year. It had been tho custom for several meetings past to refer to the state of depression in the colonies, and to speak of its effects upon the interest of this Bank and the mercantile community. To deplore that state of things had become almost a stereotyped proposition, as it had been brought forward meeting after meeting, but last year it was felt strongly that- the time was arriving, or at ] least was not far distant, when affairs in tho colonies mu3fc loceive great improvement. Wht'i, however, was the fact? They met on tho 11th of July, and on the 15th of that month a declaration of war was made between two of tho greatest military powers in the world, which fell like a thunderbolt upon Europe, and its depressing effect soon reached the colonies, where it had continued up to the present time. During the wool sales of last year, therefore, they were in a great measure deprived of the attendance of the French and German buyers, who had always been a great feature in such sales ; but this year he was able to ppeak of a different state of things, for DIO3O sales had been attended by both French and German buyers, and the natural consequence was higher prices and a better market. In some cases, indeed, the high prices obtained were almost fabulous compared with those of last j ear's clip, and ho believed he was perfectly justified in saying that, on the whole, the sales this year had been 15 per cent, above those of last year. (Hear, hear.) That fact fully warranted the Board stating in their report that an impetus was now being given to the business of the colonies from which this Bank and other similar institutions could not fail to reap benefit. Nevertheless he wished individually to say that he hoped the warnings of the past would not be lost upon the customers of the Bank, and that the managers of the Bank itself in the Colonies would be careful not to give greater facilities to their customers than they thought the interest of tho customers themselves required, (ffear, hear). The only other matter to which he had to refer was tho act of Parliament, and in mentioning that he might state that the highest legal authorities, both at home and in the colonies, had given it as their opinion that it was practically impossible to convert this long established bank into a limited liability company. Under limited liability tho Bank could no longer maintain its status in the colonies, where they had several Acts of Parliament for carrying on their business, which such a step would virtually have repealed without any prospect of their being able to secure any similar re-enact-ments. In these circumstances they had no alternative but to apply for an Act of Parliament in this country, winch had become necessary from the simple fact that in prosecuting a claim arising for the first time within a period of 33 years, they had aefc out the names ol every individual partner, of whom there \?%ro 1700. (Hear, hear.) Before putting the motion he should bo hajjpy to answer any question. Mr W. Botly seconded the motion with very much pleasure, and referred to tlie wise policy the Treasury of Australia had adopted in providing for its deficiency of £300,000 by a slight increase in the tariff and sixpenny tax upon land in preference to placing an additional impost on industry. Mr Wilkinson having ascertained from the Chairman that the Bank had ceased to insure, announced his intention at the proper time to propose the distribution of the £7s,ooo reserve sot apart on that account. The Cn airman recalled to mind the history of this reserve, which 6tood on n different footing to tho £250,000 reserve, and said it was for the proprietors to determine what should be done with it now that the insurance business was given up. Tho Board had not yet consideied the subject with a view to its disposal, but they thought it would be doubtful policy to deal with it in a way that would diminish the security of the shareholders. (Hear, hear.) In reply to Mr Mo watt, Tho Ciuirman said the directora were quite ready to fiend out tho report and accounts some days before the meeting, but it could only be done upon the understanding that the holding of the meeting would have to be delayed. He pledged his word that there were no bad or doubtful debts that wore not amply provided for, and assured the meeting that, in addition to the special cotnmitteo which sat from time to time upon the nccouuts, the directors attended daily afc the oflico.

Mr Abuaham, Mr Sebay, and other proprietors congratulated tho meeting upon the excellent report they had received ; and the motion made from the chair was then put and carriod unanimously.

Mr Wilkixson then moved, and Mr Sruun seconded, " That the Bank having ceased t;o take insurance risks, the necessity for holding the special reserve of £75,000 no longer exists, and that the same be divided among the proprietors as soon as tho convenience of the Bank will admit ;" but after a brief discussion tho resolution was negatived by a largo majority, only two handß, in fact, being held up in it 8 favor.

Mr 0. H. Mills, M.P., and Mr B. J. Ashton, Iho retiring directors, were re-elected ; and the proceedings concluded with votes of thnnks to the Chairman, Directors, and Managers. — London "Times," 11th July.