UNION BANK OF AUSTRALIA. (From the Morning Herald, July 18.)

New Zealander, Volume 4, Issue 269, 27 December 1848, Page 3

UNION BANK OF AUSTRALIA. (From the Morning Herald, July 18.)

The Chairman said it would now be his duty to submit to the proprietors the report of the directors . They had made that document so full that it would not be requisite for him to offer any observations upon it, unlest they should be elicited by any remarks that might fall from gentlemen present. He then read the report and statement of account*, which were as follows:— " Id pre-entng their tenth annual report the directors feel that they may, without hesitation, congratulate the proprietors of the Union Bank of Australia upon the position which the Baalc has attained both at home and in the colonies. " The system of business which they have adoj ted, and which their impector has very ably carried out, has been tried during the occuirence of many of those vicissitudes in the commercial world by which banking institutions are more or less affected, and it has stood the test the capital has been reierved for the purpose of aiding the legitimate wants of trade, and the bank's advances restricted within such prudent limits as are calculated to guard against any very heavy losses. The events of every day have confirmed, in the minds of the directors, the importance of a steady adherence to these principles. •' In their supplementary report, presented in January las, the directors briefly communicated the tubstauce of Mr. M'Laren's very satisfactory report of inspection, made on his return from visiting the branches in Van Diemen's Land and New South Wales. " The accounts since received from the managers fully justify that report ; and althongh the depressed state of the wool market in England, in addition to the high price of labour in Australia, must, for a long" time, press heavily upon the colonial settlers and the trade— yet the directors are glad to be able to state from their recent advices, that the inspector and managers are prepared for the events that may arise, and are prudently adopting measures to protect the interests of the bank. 11 The steps taken by government to promote emigra. tion will afford most timely and important relief to the colonies, and it is very gratifying to the directors to find that the vnlue aud necessity of a well regulated system of emigration and colonization is fully recognised by the legislature at home, and felt by every one who understands the mutual interests and relative circumstances of the colonies and the mother country. " The improvement which has taken place in the internal condition and general circumstances of the New Zealand Colonies, has induced the inspector to open a branch at Auckland, the Seat of Government, to which Mr. Alexander Kennedy has been appointed manager. The branch had only commenced its operations at the date of the last advices. " Of the present position of the affairs of the bank generally, and the zeal and prudence manifested by our inspector, the local directors, and managers, the j directors are gratified in expressing their entire ' satisfaction, j (> James Bush Smith and B. E. Lindo, Esqr3., two of the present directors, retire by rotation, aad offer themselves for re election at this general meeting. 11 The directors now proceed to submit their annual statement of accounts, the general result of which enables them to declare a divid. nd at the rate of 6 per cent per annum on the entire paid up capital of the bank, to be payable in London on the Ist August, and in the colonies as soou as the inspector shall fix alter re ceipt of advices. 41 The dividend will be paid free of income tax and, in order to equalise the division, 7d. in the pound will be added upou such dividends as are paid in the colonies.

Mr. De Salic hat been requested to move that the report be adopted by the meeting, and that it be printed and circulated amongst the proprietors. It was with peculiar pleasure that he rose to make the motion, because it gave bim an opportunity of addressing a few observations on the present position and future prospects of the company. He believed that he was peculiarly able to do this. He had for some years been a member of the Sydney board of directors, and he had recently visited, with the exception of New Zealand, all those parts of the colony where the bank had established branches. It was, therefore, with considerable saiisftction, founded, as he bad said upon his own personal knowledge, that he could assure this meeting that at all the places he had visited ,the branches were doing a steady and increasing business, and that they were daily receiving from the public fresh proofs of confidence. He believed that the success of the establishment was owing to the admirable management of the officers in the

The tenth annual meeting of the proprietors ef the above bank was held yesterday, at the offices of the establishment, on Old Broad street. Mr. Robert Carter was ia the chair. The advertisement by which the meeting had been convened having been read by the secretary, Mr. S. Jackion.

colony, and the wise and controlling influence of the gentlemen who composed the London board of direction,. If the proprietors were to judge of the future by the past, they might confidently anticipate, that the results would be equally as satisfactory as those exhibited by the present report. He believed he was not over sanguine when he said that the field of banking enterprise which the Australian coloniei presented would be almost exclusively left to the Union Bnnkof j Australia ; and that if it were not, it would be occupied by those who could not be looked upon as their rivals or opponents. He did consider that under the auspicious management of the gentleman before him, they might look forward to a safe and most satisfactory progreis of the busiueis of the establishment (cheers). Mr. G. R. Robimon, M.P., inquired whether the income tax had been previously paid for the pro prietors who reiide in the colonies. The Chairman said it had been done at the previous declaration of a dividend. Mr. James said the bank was not, perhaps, employing their half million of money so well as the proprie tors could wish ; and, in saying this he would take the liberty of observing that he had beard from Adelaide there wai an opening for a branch bank at that place. Had the directors any notion of opening a branch there? or, if there should bs a branch already et>tablished, was there not room for another ? Before he sat down he begged to ask the directors for a short general statement of the expenses of carrying on the branches in the colonies, and of the establishment at home. • The Chairman said the question of opening a branch at Adelaide occupied the attention of the directors, as well as of the inspector, with whom they were in cor» respondence on the subject. The matter, however, was not yet in that state that would justify the directors in beiug more explicit. With reipect to the expenses of carrying on the establishment, he bad, in anticipation of the question noted down the amount, i The total cost of management in the colonies was £11,820 per annum, and the total cott of the management in London £3,100 per annum ; in the grosi, £14,920 (cheers). Mr. Todd said that, ai a director of the South Australian Banking company, he might mention there were two banks already established at Adelaide— one pnying a bare 5 per cent, and the other not paying anything; stall. Mr. Robertson enquired what amount of bad debti had been written off since the last meeting ? The Chairman said about £5000 had been written off the bad drbt account out of the profits of the last year, and the estimate of possible loss (which the directors believed was a very full estimate) that would fall as a charge against the undivided profits of £45,000 was £8440 (cheeu). The i sport was then put and carried unanimously, Mr- J. B. Smith and Mr. B. E. Lindo, the retiring directors, were then unanimously re-elected, and the dividend mentioned in the report having been formally declared, a vote of thanks was given to the directors for the zral and ability with which they had conducted the affairs of the bank. A vote of thanks to the chairman concluded the business of the day.

Bills payable £127,072 5 0 Sundry balances 4,358 5 7 Reserve fund (10 per cot) £56 384 16 1 Profit and lots .... 45.5G3 13 3 102,243 9 3 Paid-up Capital 800 000 0 0 £1,933,678 19 10 ASSETS, Branch accounts (ba1ance).. ...... £426,686 5 0 Bills receivable 123,032 6 10 Investments, government stork, and loans on security 464,269 7 7 Imurances, and open policies, &c . . 9 027 14 2 Cash 10.013 6 3 £1,033,678 19 10

Ba'ance of undivided profit at June, 1847 £37,677 10 11 To which areJnow to be added profits for the year ending tt the branches 31st December, 1847, and at the Lindon Office, 30th June, 1843, after deducting amount of bad debts to the above mentioned date £63,762 6 1 1 Deduct one-tenth for reserve tuad 6,376 4 8 57.386 2 3 £95,J63 13 3 Deduct dividend paid at Midiummer .. £24,609 0 0 Ditto Christmas .... 24,600 0 0 £49,200 0 0 Balance of undivided profitt to this date £45,868 13 2 RESERVE FUND. At June, 1847, as per statement..... £50,003 11 5 Add to Juue,^lB4B, as per contra 6,376 4 8 £56,384 16 1

LIABILITIES.

STATEMENT OF PaOFITS.