Commercial Intelligence.

Hawke's Bay Times, Volume 15, Issue 777, 11 April 1870, Page 2

Commercial Intelligence.

UNION BANK OP AUSTRALIA. [Money Market Review.] A SPECIAL general meeting of the proprietors was held ou Monday, 10th January, at the bank, Bank buildings, Lothbury, London. The chair was occupied by Sir Henry Watson Parker. The notice convening the meeting, the report, and balance-sheet, were read by Mr John Brainwell, the manager. The report was as follows : '■ The directors are gratified at presenting to the proprietors a statement of accounts which has enabled them, after providing for every ascertained loss and doubtful dependency, to declare a dividend of 7* per cent., or at the rate of 15 per cent, per annum. By latest advices from the colonies the belief was entertained that the most serious point of depression affecting the pastoral interests had been reached, copious rains had removed all fears of another dry season, and there was a general tendency to improvement in the value of pastoral property. Of the sound and legitimate character of the bank's business generally, the directors entertain and express a confident opinion, founded not only upon the very favorable assurance of Mr M'Mulleu, the general manager, but also upon a constant and rigid scrutiny by the directors themselves of every account. The directors have pleasure in continuing to bear testimony to the unabated zeal and attention displayed by the general manager and the other officers, both at home and abroad, in promoting the best interests of the bank. The annexed statement of accounts presents a net profit of £9(1,573 11/8 available for division, of which the dividend for the half-year will absorb £93,750, being at the rate of £1 17/6 per share. The dividend warrants will be transmitted by post for the 18th inst., and the dividends will be payable in the colonies as soon as the general manager shall lis after receipt of advices. Statement of Liabilities and Assets at the Branches on the 30th June, and at the London Office on the 31st December, 1869.. LIABILITIES. Circulation £ 321,790 0 0 Deposits ... ... 3,176,414 18 11 Bills payable and liabilities (including reserves held against doubtful debts) 1,078,978 13 11 Balance of undivided profit ... 96,573 11 8 Reserve fund 250,000 0 0 Insurance reserve account ... 75.000 0 0 Bank premises reserve account 75,0i)0 0 0 Capital ... ~ 1,250,000 0 0 £6,323,757 4 6 ASSETB. Specie on hand and cash balances .'. £ 970,305 2 5 Bullion on hand and in transitu 224,257 2 9 Bank premises and property ... 178,798 0 7 Government securities (British and Colonial) 131,260 9 2 Local bills, bills receivable, and other securities..'. 4,566,136 9 7 Reserve fund, invested as per statement ... ... 250,000 0 0 £6,323,757 4 6 STATEMENT OV PROFITS. Balance of undivided profits at '3oth June, 1869 : 96,05,1 7 10 Out of which a dividend was declared of ... 93,750 0 0 Leaviug a balance of ... £ 2,301 7 10

Profits of the past halfyear, after making provision for all Dad and doubtful debts... £149,816 10 5 LessRemuneration to local directors, and salaries and allowances to - colonial staff ...£33,293 5 7 General expenses in polonies, including rent, taxes, stationery, &c 11,107 1 2 Remuneration to board of directors, salaries of London office staff, rent, stationery, and general expenses 8,042 7 0 Income tax ... 1,7.99 12 10 54.544 6 7 94,272 3 10 Balance of undivided profits at this date £ 96,573 11 8 RESERVE I'DND. New Zealand Imperial 4 f- cent. Debentures £ 200,000 0 0 Colonial 6 f cent. Debentures... 50,000 0 0 £ 250,000 0 0 The Chairman said: Gentlemen, it affords my colleagues and myself much satisfaction to be able to meet you here to-day with what we consider you will all agree with us in thinking an exceedingly favorable report and statement of accounts —[hear, hear] —and these results have been arrived at after a careful and strict examination of all the accounts from the colonies to the latest date, and up to the end of the year in London. And here 1 may, perhaps, remark (although it is probably known to most of you), that the profits are struck up to Midsummer in the colonies, and to the end of the year in London ; and as the examination of the accounts has been made up to the date of the latest advicus, therefore we are justified in saying we have made allowances, as far as we know, for all debts of every contingent character which are ascertained to be bad. Now, considering the extreme and unexampled depression of the dines through which the Australian colonies havehad to pass, it was possibly beyond the expectation of all here tint we should be able to maintain the usual dividend. [Hear, hear.] I think it is extraordinary ; and I may, perhaps, attribute it in a great measure to the vigilance and activity of the officers abroad, and it is only just to pay this tribute to what I consider are their merits [cheers.] I have had a very long experience of the Australian colonies, and I come to this conclusion—that there are periodical alternations of prosperity and depression. We have passed through this period of depression ; and therefore, I think it is not too much to hope that we shall now have a revived prosperity, that commerce will goon, and the pastoral interests revive, and that we have every reason to look hopefully to the future. [Cheers.] Now, it is certainly a sad state of things, and very painful, to attempt to build up a prosperity upon the ashes of adversity : but I maintain the opinion that however much misfortune may have overtaken individuals, the substantial wealth of the colony remains intact. [Cheers.] There are the sheep, the cattle, the land, and the pasturage ; misfortunes may have overtaken individuals, but it is obvious to my mind that if persons formerly embarked in she.ep-farming, and paid 30s, or 235, or 2-i'S per head for sheep, and sold wool at the price it commands in the London market, and by a change of properties if those who now come in to pastoral pursuits are able to buy sheep at 4s or 5s per head, the price of wool in ihe London market will amply remunerate them. Perhaps it is somewhat hard to look upon this from a commer jcial point of view ; but we are entitled, as bankers, to look upon it as best for our own interests. I may say that there are one or two things which appear to be exceedingly favorable in the present aspect of affairs. All who are acquainted with the pastoral aii'airs of the Australian colonies well know that to within a late period—it was not so formerly —one of the most serious difficulties which the squatters had to contend with has been the want of a market for their surplus stock. Runs have been fully occupied, and the country taken up as far as »'e can go behind, but no proper market lias been found for the disposal of the naturally increased number of sheep. I think, however, that we have now arrived at some solution of this difficulty. I assume everyone present is aware of the value of this newly-imported meat from the Australian colonies ; by the advance of science and commercial enterprise I hope we shall succeed in removing the one great difficulty which presses so strongly upon Australian squatters—the want of a market for surplus stock. [Cheers.] It may be a liberty to ask gentlemen to taste the meat; I have done so, and I ask you to judge for yourselves. I state it to be excellent; it is what everyone might usefuliy and economically employ; and if the trade be increased, whilst we are doing a great advantage to the Australian settler, we are, at the same time, benefiting the mother country, and I do not hesitate to say that it may spread over the continent of Europe. [Cheers.] To my mind, this is a circumstance exceedingly encouraging; and I know of nothing to impede the advance of the Australian squatter in getting a good return for his wool and his surplus stock. Another question is that of emigration. When we see the distressed state of the redundant population in England, and when we consider that, in Australia, they are panting for the labor which we have in abundance, why should not some wholesome system of emigration be established, which shall be a benefit to the mother country, and also an exceedingly great benefit to the colonies ? It is a difficult distance to bridge over ; but by the active exertions of the community at large and the executive of this country, I think some system might be devised to set aside the present extraordinary anomaly. [Cheers.] I look upon excessive population as nothing more nor less than a commodity, which must be regulated by the law of demand and supply ; and if we can devise the means of sending our redundant population where it is wanted in the colonies, we shall confer a benefit upon the mother country, and the colonies too. I hope these remarks will not be considered irrelevant; fori think, however remote may be the connection between them and what we have to do to-day, yet in the interest of the bank we must look at these tilings, and if they tend to improve the commerce and the squatting interests in the colonies, they will also very much improve the interests of the bank. I now beg to move the adaption of the report. TCheeis.] Mr Robert Brooks seconded the resolution.. Mr Mowatt, whilst expressing his satisfaction at the manner in which the affairs of the bank were managed, said he should like to have had the report sent round to the shareholders a few days before the meeting. He also said he should like to see the fifth item on, the asset side of the accounts—local bills, bills receivable, and other securities — separated, and not lumped together. Mr Jephson said he had unlimited faith in the board, but he should like to see a little more economy in the expenses, which amounted to one-third

of the profits. He also expressed his belief that! there was a great future before the Australian colonies. Mr Sebag said that, looking at the great depression which had existed in the colonies, he was exceedingly pleased to find that the dividend of last year was maintained, and he believed that was the general feeling of the great body of shareholders. [Cheers.] He would like to ask a question with respect to the insurance fund of £75,000, which was created some years ago out of the premium on the fresh issue of capital. There were reports out of doors that money had been lost on the insurance business connected with that fund; and he thought it would be satisfactory to the shareholders if the chairman would state what was the result of the insurance business. The Chairman, in reply, said.: I do not find that there is much objection to the general nature of the report, and certainly not to the dividend. With regard to the enquiry as to why the report and accounts have not been circulated among the proprietors sooner, I would reply that the directors have never been averse to the cirulation of these reports and accounts at an earlier date, if you are willing to consent to have the day of the dividend put off for a week to enable us to do so. [No, no.] The answer has been the same in previous years; Mr Mowatt will bear witness to that. [Hear, hear.] The only difficulty will be the delay ; if the proprietors will submit to the delay of having the report printed and circulated we have no objection. [No, no.] With respect to the economy which should be observed, I think Mr Jephson can scarcely be aware of the number of branches which exist in the Australian colonies. The expenses at home 1 are not heavy ; but there are thirty-four or thirty-five brandies in the colonies, and, in places where all expenses are high, our expenses must necessarily be high. The only wonder is that they are not larger than they are ; I can assure the proprietors that the utmost economy is maintained. [Cheers.] In reply to Mr Bebag, lat once come to the point. The insurance has not turned out satisfactorily. We have now gone on for a few years carrying on the insurance business; and it is only right to inform Mr Sebag and the proprietors that the insurance business has turned out on the wrong side. The accounts are not yet in a sufficiently forward state to enable the board to tell the proprietors exactly how it stands ; but the result will be communicated to you by-and-by, as soon as it decided distinctly what the board intends to do. I believe, however, it is pretty well decided we shall give up the business ; but as soon as a decision is arrived at we shall communicate it to the proprietors. The amount of loss, which was provided for, will not exced £IO,OOO. Mr Jephson i And the £75,000 remains intact ? The Chairman: Yes. The resolution for the adoption of the report was then unanimously adopted. On the motion of Ms Jephson, seconded by Mr Sebag, a vote of thanks was given to the chairman and directors, and the proceedings terminated.