UNION BANK OF AUSTRALIA.

New Zealander, Volume 7, Issue 546, 9 July 1851, Page 3

UNION BANK OF AUSTRALIA.

A special general meeting of the proprietary of the Union Bank of Australia was held at 38, Old Broadstreet, City, on Monday afternoon, for the purpose of receiving the supplementary report of the dueotors, and declaring a dividend. J. J. Cummins, Esq., filled the chair, and opened the proceedings by reading the following supplemen • tary report : — The advices receired from all the branches aince the annual meeting in July enable the directois to report most favourably of the business of the bank. Mr. Fletcher bad returned to Sydney at the date of the last letter*, after inspecting the branchps «t Melbourne, Geelong, Adelaide, Launceston, and Ilobart Town, and his report on the state of the bank's affairs at each of these places is highly satisfactory. Xhe continued prosperity of the colonies is not only producing; a considerable expansion of trade, but iy also evidently imparting to the Australian commerce a degree of stability and relative importance of very high character and promise. The entire proceedings of the inspector, since he entered upon his important duties, satisfactorily evince that he is prepared steadily to carry out the views and policy which have marked the progress of this bank from its establishment, and prove that while he feola the protection of the interests committed to him to be hia first duty, he is fully sensible that thohe interests nre wholly identified with the prosperity of the colonies. In the month of August last the directors were npplied to, by the leading persons engaged in the formation of the " Canterbury lettlement," in New Zealand, to facilitate the transmission of the funds of the settlers and others, and the negociation of their monetary transactions ; and they readily undertook to meet the wishes of so respectable a body by an arrangement mutually beneficial and satisfactory. The diroctoi snow proceed to submit the statement of Recounts, the result of which enables them to declare the usual dividend, at the rale of 6 per cc-rit. per annum, on the entire paid-up capital of the bunk, together with a bonus of 10s. per share (loud cheers) on the 32,000 paid-up shares; mil a like proportion of bonus on the 21. 10s. paid up on the 8,000 shares of the third f-eiies; payable in London, free of income tax, on Tuesday, February 4, and in the colonies, with the addition of 7d. in the pound, as soon as the inspector shall fix, after the receipt of advices. The Secietary (Mr. Jackson) next read a statement of accounts to the 31st cf December last, showing a balance of undivided proCt at that date of £69,834 3s 4d. The leserve fund amounted to £77, 270 U* I<M. The Chairman then said,— Gentlemen, the report ju-t presented to you contains matters upon which I think I msiy faiily congiatulate the meeting. (Hear, hear.) The first point is the opinion pionouncod by the directors, alter conaideiation, of the sife and profitable state of business geneially in tV Australian colonies. Ido not think that theie ever was a time when we met our proprietors with a morethuiough conviction upon our minds that the commerce of the Austiahnn colonies wos still well conducted and rapidly extending itself, not only with the mother countiy, but with India, China, America, and the newly-discovered and valuable region of Cilifornin ; or that thore ever was a time when we had so much indication of the general prudence n ith « Inch colonial merchants are meeting

this extension of tiade (hear.) In the trade of the colonies there docs not appeal to be any of that excitement, or any of tint over-trading, winch we Lave seen lert'lint; to d ii t snstj - oii c > results on former occasions (loud cheeis). r l iieiefoic we think, as the report states, thit wliOily identified at. t!>e prosperity of tins bank 1-. with the gpreial piospeiity of tbo commerce of the Austiali.in colonies, this is a matter upon which we may fairly congratulate you (cheers). There is anothci topic touched upon in the report w Inch gives hip individually, and I am ''tire every one of my colleagues, very sincere gratification; it is, that we have received the hist yeir'a rpport, or nearly so — ica months at least of the first year's report of the duties performed by our inspector. I wish to speak emphatically upon this point, because our inspector has entered upon a most important spheie of duty — which ia new to him — and he has so thoroughly carried out the views of this board, and followed vi the steps of his piedecessor, who had had our confidence so entnely since the establishment of the bank, that I conceive the having our afftirs placpd in the hands of such a gentleman, when we had occasion to make fo important a change as that which aiose out of the retirement of Mr, M'Laren, is a matter of no small consequence to the interests of the bank (hear). I do not hesitate to Bay, thus publicly, that in every one of Mr. Fletcher'h acts ho has evinced firmness and prudence, kindness towards those who are subordinate to him in office, and a steady and single aim to promote the inteiest of the bank ; and whilst he is guided in such a course abioad, I firmly believp that we shall have to announce favourable results at home (hear, hear). I have said that tbeso were the topics upon which I wnsmore particularly desirous to say a word ; but I can not altogether leham from noticing the bonus now declared (hear, bear). It will be in the recollection of the proprietors that in fixing 6 per cent per annum as the amount to be applied in the shape of interest upon the capital, the directors were guided by a eonse of the danger of increasing the percentage rate as dividend. Leading tho minds of the proprietors to that which may be fairly looked for as the geneially pievailing fruit of our enterprise, but adhering to theprinciple laid down of dividing, if the half year's balance of profit allowed it, in the shape of bonus, »ucli excess over the 6 per cent as might appear, after making all reserves for the purpose of keeping clear of everything bad or doubtful upon our books, and of making suitable ie^ervcs against possible contingencies hereafter — adhering fiimly to that principle, the dnpctors find that they have, in the profits of the last halfyear, an adequate sum to add to their rests, to reserve their 10 per cent rest as usual, and to give you a bonus of 103. per share. (Flear, hear.) That this has arisen from the caution with which our managers abroad have guarded the bank from bad debts>, and the zeal with which they have sought to promote the interest of the bank and the increase oi our country accounts amongst the colonial merchants, must be evident to all. (Hear, hear.) The amount of capital winch, through, the operation of the exchanges, has come into our hands is considerable; but against it you will perceive thpie is b very large amount of bills payable; so that it is a fluctuating balance just arising out of the balance of trade and commerce. (Hear, hear.) These are the topics, then, upon which I have thought it to b<? necessary to make a few remark*. I shall now be moat happy to hear the inquiries which any gentleman may think proper to make, and to answer such inquiries so far as lies in my power. ( Hear.) ?»lr. John Robinson moved the adoption of the report, and that it be printed. At the same time he bad great pleasure in congratulating the pioprietors upon. 1 Ihe continued prosperity of the bank— a state of things which, be believed, was in n great degree at least, if not entirely, to be attributed to the good management of the directors (hear). Mr. Coward seconded the motion. | Mr. Borrodale— l agree in every thing which has fallen from the lion, proprietor who has proposed the the motion, and albO from our hon. chairman ; but before the vote is taken, allow me to ask if there be any maximum of reserve fired by our deed? Mr. Vai nish.— Yes, £200,000. Mr. Borrodale. — So that we must go on putting by that 10 per cent, until v/e reach £200,000 I presume? The Chairman. — We must go on putting by 10 per cent, so far as the directors are concerned ; but I am not quite sure that the proprietois cannot limit the amount. With regard to the powers of the directors, they cannot divide any proportion of the profits without putting by 10 per cent a 9 a reserve fund, until that fund amounts to £200,000. They have no power whatover. That is a question for the proprietors, in the exercise of their prudence, to decide upon. (Hear, bear.) Seeing that we have never sought the protection of a charter — indeed, we have felt that perseverance in a good system is safer than the protection of a charter— -the ,£200,000 may be regarded as a wall of defence to the proprietors. It is to grow up gradually by the addition of 10 per cent ; but if the proprietors think proper to reduce it by a vote of their own, there is nothing, I believe, to prevent them . Mr. Borrodale.— Then it resolves itself into this— — that, according to our constitution, unless there be one or two general meetings of the proprietors to alter that provision, the board must go on accumulating the reserve fund until it reaches £200,000, (hear, hear). I lee by the books we are come very near to £100,000, and I had almost hoped that that was the maximum (a laugh). Mr. Graham.— Are the loans on security in England? The Chairman. — Yes ; in England. Mr. Durham. — Is there any chance of our requiring more capital? The Chairman .—ln this half year's report, for the first time, we are including the operations of a new branch— namely, that at Adelaide, We cannot tell bow far that branch may absorb capital, and we do not know whether in the course of the eatension of these colonies we may not be called upon to establish another. The policy of the directors is, however, rather against the establishment of new branches. And unless the capital already subscribed ran be brough. into active use, more than at present, we do not see any prospect of making further calls ; though on the 8000 new shares we can call up the difference between £2 10s paid and the '£'25. Mr, Varnish.— What is the atate of the bad debts account? We had £1000 reserved for that purpose last year, and it was not wanted. The Chairman.— We have £5000 now. (Hear, tear.) Mr. Varnish.— This is a reason why th«re should not be an excess of care to keep our balance so large. (A laugh.) lam inclined to think that the shares in the market will not reach their adequate value whilst we are so over-careful a corporation. I myself have always been a buyer and not a seller; and I believe that I have not paid the real value of many of my shares. (Hear, and a 1-iugh.) The motion for receiving aud piinting the report was then agreed to unanimously. The Secretary having read the formal declaration of a dividend of 6 per cent, per annum, and a bonus of 10s. per share, payable on Tuesday, the 4th day of February next, Mr. Borrodnle proposed a vote of thanks to the Chairman and Board of Directors. The motion was carried by acclamation, and after it had been briefly acknowledged by Mr. Cummins, tho meeting broke up.

A large meeting was held in St. Martin's Hall Long Acre, on the sth March, to promote the repeal of the taxe? on knowledge, and particularly the penny stamp on newspapers. Resolutions expressing an opinion, that all taxes which impede the diffusion of knowledge are highly injurious to tbo public interest, were adopted. A large number of the supporters (about SOO) of the Whi<* Ministry assembled at the residence of Lord John Russell, in Dovnnng-street, on the 4th March. Loid John Russell gave a long statement of the position in which his government was placed, making special refujence to the Piotestant opposition and tbo Papal question. Withregaid to the latter he said he waa averse to unnecessary legislation, but felt bound to go on with the Ecclesiastical Titles Bill in a modified form. A3 to the financial arrangements, the Cabinet had not met bince their return to office, but lie busted to be ably to make a statement on that subject which would be satisfactoiy. He concluded by asking for a continuance of that generous support winch had been given to him for the last two ycais— nof for the persoual object of keeping himself and his colleagues m office— but for the sake of secuimg that which they all had at heart— the welfaie and prosponty of the country. Messrs. Green, Higgins, The O'Gorman Mahon, and seveial otheis remonstrated strongly with the noble Lord on Ins determination to peiseveie with the Ecclcsia&t.cal Titles Bill, which they pledged themselves to oppose even at the risk of the'noble Loul's govei nnient. Mr. B. Osborne entreated him to except lieUnd from the operations of the lii 1 Several other members spoke, and the feeling which pervaded the meetmsr (with the exception of the aissentof the Irish members present) was ono ot stiong confidence in, and .attachment to, the policy and pnuciples of the noble UrJ and the government.