UNION BANK OF AUSTRALIA.

New Zealand Spectator and Cook's Strait Guardian, Volume VII, Issue 621, 16 July 1851, Page 3

UNION BANK OF AUSTRALIA.

[Abridged from Bell's Weekly Messenger, A. special general meeting of the proprietary of the Union Bank of Australia was held at 48, Old Broad-street, City, on Monday, January 20th, for the purpose of receiving the supplementary report of the directors and declaring a dividend. J. J. Cummins, Esq., filled the chair, and opened the proceedings by reading the following supplementary report: — “The ad vices received from all the branches since the annual meeting in July enable the directors to report most favourably of the business of the bank. “ Mr. Fletcher had returned to Sydney at the date of the last letters, after inspecting the branches at Melbourne, Geelong, Adelaide, Launceston, and Hobart Town, and his report on the state of .the bank’s affairs at each of these places is highly satisfactory. “ The continued prosperity of the colonies is not only producing a considerable expansion of trade, but is 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 feels the protection of the interests committed to him to be his first duty, be is fully sensible that those interests are wholly identified with the prosperity of the colonies.” “ In the month of August last the directors were applied to, by the leading persons engaged in the formation of the ‘ Canterbury Settlement’ 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, t i. ” The directors now proceed to submit the statement of accounts,: ths result of which

enables them to declare the usual dividend, at the rate of six per cent, per annum on the entire paid-up capital of the bank, together with a bonus of 10s. per share (loud cheers) on the 32,000 paid-up shares ; and a like proportion of bonus on the £2 10s. per share paid up on the 8000 shares of the third series: payable in London, free of income tax, on Tuesday, Feb. 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 Secretary (Mr. Jack next read a statement of accounts to the 31st December last, showing a balance of undivided profit at that date of £69,834 3s. 4d. The reserve fund amounted to £77,270 Bs. 2d. The Chairman then said,' —'Gentlemen, the report just presented to you contains matters upon which I think I may fairly congratulate the meeting (hear, hear). The first point is the opinion pronounced by the directors, after consideration, of the safe and profitable state of business generally in the Australian colonies. Ido not think that there ever was a time when we met our proprietors with a more thorough conviction upon our minds that the commerce of the Australian colonies was still well conducted and rapidly extending itself, not only with the mother country, but with India, China, America, and the newlydiscovered and valuable region of California ; or that there ever was a time when we had so much indication of the general prudence with ■which colonial merchants are meeting this extension of trade (hear). In the trade of the colonies there does not appear to be an y of that excitement, or any of that over-trading, which we have seen leading to disastrous results on former occasions (loud cheers). Therefore we think, as the report states, that wholly identified as the prosperity of this bank is with the general prosperity of the commerce of the Australian colonies, this is a matter upon which we may fairly congratulate you (cheers). There is another topic touched upon in the report which gives me individually, and I am sure every one of my colleagues, very sincere gratification ; it is, that we have received the first year’s report, or nearlv so ten 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 sphere of duty—which is new to him ■—and he has so thnrnnr»ki« .... .v, &"<J X.U.H.CU via iue views of this board, and followed in the steps of his predecessor, who had had our confidence so entirely since the establishment of the bank that I conceive the having our affairs placed in the hands of such a gentleman, when we had occasion to make so important a change ** th n« T Which arose out of lhe retirement of Mr. M Laren, is a matter of no small consequence to the interests of the bank (hear). 1 do not hesitate to say, thus publicly, that in every one of Mr. Fletcher’s acts he has evinced firmness and prudence, kindness towards those who are subordinate to him in office, and a steady and single aim to promote the interest of the bank; and whilst he is guided in such a course abroad, I firmly believe that we shall have to announce favourable results at home (hear, hear). I have said that these were the topics upon which I was more particularly desirous to say a wordbut I cannot altogether refrain from noticing/ the bonus now declared (hear, hear). It i XL - e X- t le ecel,edt ’ on of the proprietors at 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 «y a sense of the danger of increasing the P e ‘- cen t;ge rate as dividend. Leading the -mds o. the proprietors to that which may be fairly looked for as the generally prevailng fruit of our enterprise, but adhering to the principle laid down of dividing, if the half-year s balance of profits allowed it, i D the shape of a bonus, such excess over the r P JX Cen < i m ' g,lt a PP ear ’ after making all reserves for the purpose of keeping clear of and r nf h ' ng l bad Or doubtfl)i ' u P»n our books, and of making sui^)le r^6rves . sib e contingencies hereal ter—adhering firmly .to that principle, the directors find that they • have, in the profits of . the last half-year, an theTlO n SUm t 0 add t 0 lheir reslS > t 0 their 10 per cent, rest as usual, and to give y° u a^ onuaof 10s. per share (hear,, heat). That this has arisen from the caution with which our managers abroad have guarded the Dank nom bad debts, and the zeal with which sought to promote the interest of the bank, and the increase of our country accounts amongst the colonial merchants, must be evident to all (hear, bear). The amount ot capital which, through the operation of the exchanges, has come into our hands is considerable ; but against it you will perceive there is a 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 necessary to make a few remarks. I shall I now be most happy to hear the inquiries which H

any gentleman may think proper to make, and to answer such inquiries as far as lies in my power (hear). The report, which was considered highly satisfactory, was unanimously adopted, and ordered to be printed ; and a discussion ensued as to the maximum of reserve it was desirable to keep. The sum of £200,000 was fixed by the constitution of the Company, but it seemed to be considered by the proprietors that £lOO,OOO would be sufficient. The chairman, in alluding to the establishment of a new .branch at Adelaide, said the directors did not know whether, in the course of the extension of those colonies, they might not be called upon to establish another, but the policy of the directors was rather against the establishment of new branches. It was stated that the sum of £l,OOO was reserved last year to meet bad debts, but was not wanted.

The Secretary having read the formal declaration of a dividend of 6 per cent, per annum, and a bonus of 10s. per share navable on Tuesday, the 4tb day of February next, Mr. Borrodale proposed a vote of thanks to the chairman and the board of directors. The motion was carried by acclamation, and after it had been briefly acknowledged by Mr. Cummins, the meeting broke up.