THE UNION BANK OF AUSTRALIA, LIMITED.

Globe, Volume XXII, Issue 2037, 3 September 1880, Page 4

THE UNION BANK OF AUSTRALIA, LIMITED.

1 From the "Money Market Review " of July 17th, 1880. j The annual meeting of the shareholders of this Bank was held on Mondiy, the 12th July, at the Bunk premises, I, Bank-buildings, Lotcbury ; Sir Charle3 H. Mills, Bart., M.P., in the chair. Mr W. E. Mcwburn, the manager, read the following report and balance-sheet: —ln presenting to the proprietors the first balance-sheet of the Bank after its incorporation as the Union Bank of Austrada, Limited, the directors have pbasure in reporting that the profits, after amply providing for all bad and doubtful debts, have on this occasion again admitted of the maintenance of the dividend and bonus, together at thn rate of 16 per cent, per Jannum, which they been enabled to distribute for eleven consecntive half-years, viz., a dividend of £1 15s, and a bonus vt 5s per share for the half-year. Advices from the colonies continue satisfactory. The seaso-i has again proved favorablo for those engaged in airriculsurdl and pastoral pursuits, aadthe gold mining industry has received d fresh impetus, especial >y in Victoria, where important dia :overies of auriferous quartz reefs have been made. It is al*o satisfactory to observe that the rise in the price of wool in London, noticed in the directors' report in January last, has been maintained. These circumstances cannot fail to affect in a material dcg;ee the prosperity of the colonies. In accordance with a a suggestion from tho auditors, the directors have arranged that balance-sheets to be presented at future meetings of proprietors shall contain accounts of London office and branches to an even date, and as snch date they have died the last day of February for the first half of the year, and 3ist August for the second. In ord'jr to admit of this arrangement, meetings < f proprietors will have to be postponed abont three weeks, but, as will be seen, the colonial business dealt with will be to a date two monthi later th n heretofore. Mr Eobert Campbell and Mr James Eichard Bullen Smith, C. 8.1., are the directors who retire on thiß occasion in accordance with the provisions of ths deed of settlement, and offer themselves for reelection. Mr Albert Deacon and Mr Eobert Palmer Harding, the auditors of the company, atao retiro, and offer themselves for re-election. The directors have great pleasure in once more srecogniiing the valuable services of the general manager, Mr McMullen, the chief officer for New Zealand, the London manager, the branch managers, aud staff generally, who have earned the best thanks of the shareholders for the zeal and ability with which they have conducted the affairs of the Bank. The annexed balancesheet presents a net amount of profit of £125,191 7s 4d available for division. Of this the dividend and bonus will absorb £ 120,000, and leave ~£5191 7s 4d to be carried forward. The dividend warrants w.ll be transmitted by post on 19th instant, and the dividend and bonus will be payable in the colonies at snch time as the general manager shall fix after receipt of telegram. Statement op Liabilities and Assets at the Branches on the 31stDecehbee, 1879, and at the London Office on the 30th June, 1880. liabilities.

B. A. Brooks, > Directors. Ahthok Flower, j TV. E. Mewbubn, Manager. E. Buckler, Accountant. We certify that the various securities hold in -London hare been produced to us, and that we have examined the balance books of the several /branches in the colonies for the half-year endiDg '■ihe 31st December last, and the books and acBonnis of the London omce for the half-year ending the 30th June, and having compared the combined results w.th the above statement have found the same correct. Albert Deacon, ? Anditors P.. P. Harding, 5 Audltora - The Chairman, in moving that! the report be received and adopted, said since_ the ■meeting in January the necessary formalities for altering the constitution of the Bank, and bringing it within the provisions of the Act of 1£79 hid been carried out. and ho thought it would be gratifying to the share holders to learn that the course which they then decided on adopting had been regarded with great satisfaction both in the colonies and at home. At home thev had seen the advantage of it in the addition to the list of shareholders of several gentlemen of considerable standing and financial ability, and in the colonies thty had found that the change was repardad with great favour, not only by the shareholders, but by the customers, and it had also been favourably noticed by the colonial press. He thought it necessary that they should not forget the very strong position of the Bank. It had a paid up capital ot JE1,500 000. a reserve fund of .£816.000, and a reserve liability of 453,000,000, which was double the amount of that of any other Bank in the colony. The chairman o? the las!; meeting, with very ability, adverted to the cause and effect of the great wave of depression which was then passing over the colonies. That depression, although it had been aomewhat mitigated in extent, did affect the colony in the half-year to which the accounts now submitted related, and he thought it very satisfactory that, in face of that depression, the directors had not only boon able to maintain the dividend, but to carry forward a ansall additional sum to that carried forward before. The chairman at the last meeting said he thought there were brighter prospects for tho colony, and he was glad to bo able to state that from the mest recent accounts it wonli seem that that proiiction was being fulfilled. A good harvest and a rood wool clip had favorably affected both the Toastoral and agricultural interests of the colony. Prom the statistical accounts it appeared that the increase in the number of sheep in 1879 was 1,900,000, as compared with the number in 1»<«, the year following tho terrible drought, and the increase in the produce of wool was 35,200 bales fa 1879 over 1878. The price no doubt had not been so good as it was in 187 G preceding the time of the great drought, the decrease being aearlv £2 a bale. Still it was satisfactory to see that an increase had taken place, and that at the present moment the prices were comparatively good. With regard to the produce of gold, it had been steadily decreasing during the last ten years-smce the year 1850. when the yield was jei2.000.000. down *o 187 f » when it was .j&i.GOO.OOO—and he thought it would be very satisfactory to them to learn that a considerable impetus had been given to the gold mining industry by the new discoveries ■which had taken place at Ballarat, which must be of considerable advantage to all who had buaineas relations with the colony. But they Tn«t not f orgc-t that these very favorable reports, although they were satisfactory to those who were interested in the welfare of the colony, do mot affect banking operations in the same manner, because very great prosperity meant Sundance of money, and therefore a state of thSTwhich presented le-f-orable opporturnties for lucrative investment of the funds of the B»nkTbut he was glad to be able to state that it "geared from the last accounts that the opera-

tions of the Bank for the last six months had been of a satisfactory character. With regard to the accounts now submitted, he did not know that there was any special feature which required any comment from him. The deposits had increased .£200,000 over those of the last half-year, when they showed a decrease, as compared with July, 1879, which was explained by the chairman of the last moating to be owing to the withdrawal of funds held by them on behalf of one of the colonial Governments. Xha specie in hard and cash balances, and the money at call and on short notice, amounted to nearly half a million more than their paid-up caiital, so that their resourxa were in a very liquid btate. These accounts had, as on all previous occasions, been most carefully investigated by a committee of the directors appointed for that purpose, who had made moat ample provision for every bad and doubtful debt. The shareholders were aware, no doubt, that under the provisions of the Act of 1879 whon they became a limited company, it was necessary that there should be two auditors elected by the shareholders, and he was glad to think that the shareholders had been successful in obtaining the services of two snch able gentlemen as their present auditors. He believed the auditors were well satisfied with the accounts, but they had made a suggestion that it would bo better that the accounts, both in the colonies and at home, should be brought down to one date, and, as was stated in the report, the directors had decided that the accounts should be made up to the last day_ of February and the last day of August in each half-year. That would necessitate the meeting being held three weeks later, but that could be done without any alteration being made in the deed of settlement. The effect of that would be that, at the next half-yearly meeting they would have to deal with eight months' colonial accounts, and only two months' London acconnts ; but afterwards the accounts would be made up to an uniform date, and would be for an 'even six months, both_ for the colonial and London business. The auditors, as shareholders were aware, were_ elected at the special meeting which was held in June merely for this audit, because it was felt that it would be more convenient that their election should be fixed at the annual meeting for a year rather than that shareholders should be called together specially every year to them._ The question of their remuneration is left in the hands of the shareholders, and the directors only wish to suggest that a sum of .£3OO per annum should be allotted for that purpose. He did not think there v as anything else requiring remark from him, but would not like to Bit down without bearing testimony to the zeal and ability of Mr M'Mnl-en, the inspector and general manager, who had been able to keep the Bank, in the position it holds without pressing unduly upon any of its customers, and whose efforts had been ably seconded by the manager in London and the staff. If there was any further information required he should be most happy to give it. Mr William Botloy seconded the motion, and congratulated his fellow shareholders npon the results achieved.

The motion was then put and agreed to. Mr Robert Campbell and Mr J. R. Bullen Smith, tho retiring directors, were then reelected.

Mr Sebsg woved that Mr Albert Deacon, merchant, of Fenchurch street, and Mr Kobert Palmer Harding, accountant, of Old Jewry, be re-elected auditors, and that their remuneration be .£3OO a-year. Mr Stuart seconded the motion, and it was unanimously agreed to. Mr Harding, in returning thanks, said it was due to the directors to say that everything that the auditors required was laid before them, and he had never Been more elaborate and comprehensive statements. These statements, however, did not appear to be taken for granted by the directors, but had their most careful attention. The auditors suggested that the accounts in London and the colonies should be made up to an even date, for greater convenience, though they felt that the result would be the same. Mr Deacon said he could confirm every word that his colleague had said. A dividend at the rate of £1 15s a share and a bonus of 5s a share was then declared. Mr John Balfour thought the meeting ought not to separate without expressing their cordial thanks to the board for their able administration of the Bank's affairs, and to the management in the colonies and in London.

Mr Botley would second that with the greatest pleasure, for he knew that no Bank, either in England or the colony, was better eerved in every department than the Union of Australia. The motion was carried nem. con., and the Chairman and Mr Mewburn returned thanks for the compliment, the latter gentleman observing that, as the shareholders knew, it was in the colonies that the bulk of the Bank's business wa3 transacted, and he thanked them especially on behalf of his colonial colleagues, for whom he was aware the compliment was more particularly intended. For the London staff ha would only say that they also did the best in their power to promote the interests of the Bank. He should have much pleasure in conveying to the various members of the staff the vote just accorded, for which he cordially thanked the shareholders. The proceedings then terminated.

Capital Eeserve funds... 0 816,500 0 0 0 Circulation ■•• 348,143 0 0 Dep sits 6,767,350 19 6 Bills payable and other liabilities (including reserves held against doubtful debts) 1,604,266 11 5 Balance of undivided profits 125,191 7 4 £11,161,452 1 3 | ASSETS. Specie on hand and cash balances Bullion on hand and in transitu... £1,150,470 1 72,163 11 3 3 Money at call and short notice in London 833.000 0 0 government securities 1,025,972 14 8 Bills receivable, lonus and other securities at London office 1,197,624 1 0 Bills discounted, bills receivable. loans and other securities at the br.inehes 6,616,016 13 266,200 0 1 0 -Bank premises and property Statement of Pkop £11,161,452 1 3 ITS. Balance of undivided profits at 3Cth June. 1879 ... £127,631 14 2 Out of which a dividend and bon as were declared of ... v.. L saving a balance of .. 117.0C0 0 0 ... £8,631 14 ~2 Profits for the past year, after making provision for all bad and doubtful debts 375.CS1 13 0 Less — Kemnneration to the local directors, & salaries and allowances to the colonial staff ... 85,a&3 G 0 General expenses in the colonies, including rent, taxes, stationery, cScc 2S,S55 10 11 to the board of directors. salaries of X.oudon office staff, rent. taxes, stationery, and general expenses ...18,471 12 3 Income tax... 5,501 10 2 139,121 1 910 236,559 13 2 Deduct — £245,191 7 4 Dividend and bonu. 3 paid in Janu. try £120,000 0 0 Balance of undivided profits at this date Statement op Eeserve ... £135,191 7 Funds. 4 Ktw Zealand Imperial Four i er Cent. Debentures ... £20O,OC0 0 0 Canada Imperial Four per Cei t. Debentures ... 150,00 0 0 Colonial Government Debentures . IEO.000 0 0 £500,000 0 0 Band premises and property £266,200 0 0 funds not specifically invested ... 50.3CO 9 0 316,500 0 0 Total reserve fu ads ... £815,500 0 0 London, July '<nd. 1S80. John S. Hill, ~>