THE ORIENTAL BANK.

Globe, Volume XX, Issue 1617, 26 April 1879, Page 4

THE ORIENTAL BANK.

Regarding the affairs of the Oriental Bank, the “Insurance and Banking Record" writes: —“It has been communicated by telegraph that the Oriental Bank Corporation will not pay a dividend for the half-year, that losses, owing to a depressed state of trade, had swept away £124,000 earnings, which were at credit in October last, with £120,000 additional, and that after allowing for depreciation in the value of securities and losses on Eastern exchange, nearly the whole of the reserve fund (£325,000) would be absorbed. Although this information is undoubtedly disappointing to shareholders in the Australian colonies and elsewhere, it will be admitted by them that the directors have now taken a proper course in boldly meeting the losses which have confronted them. We have grounds for believing that the nucleus of a new reserve fund exists, after a complete clearance of everything bad or doubtful. No small portion of the loss sustained is due to adverse Eastern exchanges and depreciated value of silver, and to decline in the value of East India Government rupee paper. The information transmitted is evidently derived from the directors’ report and balance-sheet issued in advance of the meeting, which we do not think has yet been held ; last year the date of meeting was 18th April. It will be some encouragement to the shareholders to observe that, according to telegraphic advice, the “ Times” describes the report as ‘courageous and praiseworthy, as having frankly met and acknowledged the actual or possible losses which may be temporary. This last clause points to this favorable contingency, that if an improvement in the value of East India securities held should take place, it would enable the replacement of a considerable portion of the reserve fund. Of Government securities, the bank held in October no less than £1,812,964. The paid up capital of the bank is £1,500,000. In October last it held in coin £2,386,748 ; balances due from other banks, £837,141 ; promissory notes and bills of other banks, £72,509, together £3,296,399. The proceedings at the meeting are looked forward to with interest, and certainly with confidence.”